The Evolution of Philanthropy in the Digital Age

[Source: National Arts Marketing Project, by Thomas Ogletree, May 6, 2010]

"What business entrepreneurs are to the economy, social entrepreneurs are to social change. They are the driven, creative individuals who question the status quo, exploit new opportunities, refuse to give up, and remake the world for the better." - David Bornstein, author, How to Change the World: Social Entrepreneurs and the Power of New Ideas

“There’s a whole new audience out there and it’s never been easier to sell it, particularly at the lower levels . . . All you need now is a few ideas and a broadband connection.” - Banksy, artist, to Wired Magazine

What does the term “social entrepreneurship” actually mean?  Broadly speaking, it describes situations in which business principles are used to further social good.  Many artists and organizations working in the arts and culture sector have already made use of social entrepreneurship with great success.  However, while they have been systemically integrated into the strategies of organizations working in issue areas such as international development, poverty reduction and public health, their potential has not been fully realized in the arts and culture sector.

Social entrepreneurship, or social enterprise, is a general term that applies to any individual or group that uses business principles to both further social good and generate profits.  Social entrepreneurs – both individually and within the context of organizations – work to develop targeted to solutions to specific, often localized, social problems.  Many of the major advances in social entrepreneurship have been in the field of international development, where small-scale, highly targeted projects can have far-reaching impact for communities in developing countries.

There is no singular way to describe social entrepreneurship activities and models.  These approaches are still evolving methods that continue to undergo new developments and innovation.  In many cases, they are as unique as the individuals employing them.

Case in Point: Echoing Green, one of the leading social entrepreneurship organizations, provides grants to emerging social entrepreneurs to launch new organizations working to develop “new solutions to society’s most difficult problems.”  The organization identifies potential fellows and provides resources and technical assistance, and has granted over $28 million to 471 social entrepreneurs.  One such entrepreneur is Risë Wilson, founder of The Laundromat Project, which works to create personal and social transformation by using the space in local coin-op Laundromats in Bedford-Stuyvesant, Brooklyn to display art.  The project seeks to use open space to engage those who may not be actively seek out an arts experience or be involved in social change initiatives to engage them through workshops and other forms of social and cultural engagement.

A number of variations on the classic social entrepreneurship model have blended traditional giving models with innovations from social entrepreneurship. Some of the most recognizable approaches include venture philanthropy, microlending, giving circles, and new online giving strategies.