Collective social innovation emerges when communities, governments, markets, and financial supporters collaborate toward a common objective. Lasting transformation depends not on isolated programs but on sustained investment in shared infrastructure—such as trust, relationships, and collaborative platforms—rather than short-term, narrowly defined initiatives.
To drive systemic progress, funders must shift their focus from claiming credit to enabling contribution. This means valuing the role each participant plays in broader change, rather than insisting on measurable attribution for specific outcomes. Trust becomes a foundational element, not a side effect, functioning much like financial capital in economies but enabling cooperation across diverse sectors.
A growing body of evidence suggests that most philanthropic funding—between 80% and 85%—is still tied to specific programs, leaving only about 16% to 19% available as unrestricted or general support. Yet, durable solutions often arise from networks and platforms that connect stakeholders across levels, such as MapBiomas and Shikshagraha, which have united climate advocates and education reformers across global and local spheres.
In India’s Punjab region, a coalition of civil society groups and government bodies known as the Punjab Education Collective helped elevate the state’s public education system from 13th to 1st place in national rankings within two years—a position it has maintained for five years. This leap was achieved through coordinated efforts like teacher collaboration networks, leadership training, and improved parent-teacher engagement.
Supporting such outcomes requires what some call “risk capital”—funding that allows for experimentation, adaptation, and learning without demanding immediate proof of impact. Unlike traditional grants that discourage deviation, this approach embraces uncertainty as part of transformative change. For example, ProjectTogether developed a new model for cross-sector alliances thanks to flexible backing that allowed iterative development.
Research, including findings from Bridgespan, shows that strategies targeting root causes generate long-term benefits far exceeding those of standalone projects. These systemic interventions produce deeper, more sustainable results.
Funders are also encouraged to act as facilitators rather than controllers. Leadership in this context means convening, supporting, and empowering others—not commanding outcomes. In South Africa, the DG Murray Trust has exemplified this by fostering collaboration around early childhood development without asserting dominance over the process. Similarly, the Shibulal Family Philanthropic Initiatives supports Shikshagraha, a network advancing education reform through collective action.
Ultimately, the future of impactful philanthropy lies in nurturing ecosystems where diverse actors can co-create solutions. When financial supporters invest in collective capacity instead of isolated outputs, the results go beyond incremental gains—they become transformative.
— news from The World Economic Forum
— News Original —
Why collective social innovation is future philanthropy
Collective social innovation happens when communities, governments, markets and funders work side by side for a shared purpose. n nSystemic change requires funders to invest in long-term infrastructure such as relationships, trust and shared platforms, rather than short-term, siloed projects. n nFunders should value contribution over attribution, build trust as a core asset and act as orchestrators who enable collaboration across communities, markets and governments. n nHumanity’s greatest strength has always been collaboration. Collective approaches, as a form of strategic collaboration, are a key area of innovation alongside technologies and financing to navigate the complex challenges of the 21st century. n nOur most pressing challenges – climate disruption, education inequity, fractured trust in institutions – are still often addressed through fragmented initiatives, siloed funding and short-term projects. n nThese systemic challenges demand an in-kind response, one that strengthens connections across sectors, addresses root causes and builds the collective capacity of communities, markets and governments to align and act together. n n“ n nPhilanthropy often measures success through attribution and credit. However, collective action thrives when diverse actors come together to contribute to a shared goal. n n” n nA redefined mandate for funders n nPhilanthropy often speaks the language of systems change. Yet much of the funding practice still resembles project financing: siloed initiatives, short-term outputs and a relentless focus on attribution. n nWhat if the very models we rely on to fund change are quietly constraining it? n nIn Bridging Divides: Rethinking Collaboration Amid Global Crises, we noted that collective social innovators are pioneering new ways of working together as well as new solutions. n nBut what does that mean for philanthropy? How must funders reimagine not just what they finance but how they enable collective social innovation to thrive to enable systems change? n nCollective social innovation happens when communities, governments, markets and funders reject siloes and work side by side to achieve a shared purpose. n nFund networks and platforms, not just projects n nEvidence shows that the majority of philanthropy, almost 80–85%, remains programme-restricted. Only about 16–19% of grants go as unearmarked or general support. Most philanthropy still funds projects with clear outputs and timelines. n nYet, systemic change depends on networks, relationships and shared platforms – the invisible infrastructure that allows collective action to endure. n nThe Future is Collective, a report by the Schwab Foundation in collaboration with its community of Collective Social Innovators and the World Economic Forum, highlights case studies where funders enabled platforms and networks such as MapBiomas and Shikshagraha, which brought together actors across sectors – from global climate coalitions to grassroots education movements. n nFor example, in India’s Punjab state, the Punjab Education Collective brought together four civil society organizations and government institutions to transform the performance of the public education system. Through initiatives such as leadership programmes, parent-teacher conferences and teacher collectives, it helped the state rise from 13th to 1st in India’s national school rankings within two years, where it has remained for five years. n nInvesting in such projects means building the connective tissue that outlasts any single initiative. n nProvide risk capital n nSystemic change is uncertain and non-linear. It requires trial, error and space for adaptation. Traditional funding often penalizes risk, demanding proof of impact too early and discouraging experimentation. n nWhat collective action needs instead is risk capital: patient, flexible resources that give networks room to test bold ideas, learn in real time and evolve solutions that address root causes. n nProjectTogether’s codification of a new operating model for mobilizing cross-sector alliances became possible because of “risk capital.” n nRisk capital is not charity without rigour – it is strategic investment in long-term resilience. By being evidence-led rather than evidence-bound, funders can let emerging insights guide the journey, without stifling innovation under premature certainty. n nResearch indicates that addressing root causes yields long-term social benefits that significantly surpass the incremental outcomes of individual projects. For instance, a Bridgespan study found that systemic approaches can create impact on a magnitude and with a durability not achievable through isolated interventions. n nBuild trust capital n nTrust is not a by-product of collaboration; it is its foundation. Just as financial capital fuels markets, trust capital fuels collective action. Building trust capital means resourcing participatory governance, open data systems and time for relationship-building. n nThese may look like “overheads” and may not always yield immediate, quantifiable outcomes but they are the very infrastructure of systemic change. Here, too, philanthropy must be guided by signals of strengthened relationships and legitimacy, even if these don’t fit neatly into conventional metrics. n n“ n nWhen funders invest in collective capacity rather than isolated projects, the results are not incremental but transformational. n n” n nShift from attribution to contribution n nPhilanthropy often measures success through attribution and credit. However, collective action thrives when diverse actors come together to contribute to a shared goal. This requires a mindset shift: from controlling outcomes to enabling ecosystems, from asking “what did we fund?” to “what did we make possible?” n nFor funders, this means rethinking metrics to value contribution to system-level outcomes over attribution, encouraging shared credit in communications, supporting backbone organizations that enable collaboration and rewarding grantees for partnering and co-creating rather than competing. n nStrive Together’s work on cradle-to-career with over 7,000 organizations is a great example of how holistic change for a child – from kindergarten readiness to securing a job – becomes possible when the funding ecosystem enables contribution as a norm. n nRedefine leadership as orchestration n nSystemic change does not emerge from command-and-control. It emerges from leaders who weave, host and convene, creating the conditions for others to act. Philanthropists can play this orchestration role: not at the centre but as enablers of collective social innovation. n nThis redefined leadership calls for humility, patience and a willingness to share power. In South Africa, for instance, the DG Murray Trust has played a crucial role in orchestrating platforms for diverse actors to align around child development, without claiming central ownership. n nShibulal Family Philanthropic Initiatives is enabling similar collective action and network building in India by weaving Shikshagraha. n nLet’s reimagine together n nHumanity’s greatest strength is collaboration and philanthropy’s greatest opportunity is to nurture it. The five shifts we have outlined are not abstract ideals but practical mandates – from funding shared infrastructure to backing distributed leadership. n nA stronger funding ecosystem enables actors across society, government and markets to align their efforts and tackle root causes together. When funders invest in collective capacity rather than isolated projects, the results are not incremental but transformational.