What philanthropy can learn from 2024’s lessons

As we enter a new year, it’s an ideal time for philanthropy to reflect on the key lessons learned from 2024’s challenges and successes. The philanthropic sector stands at a crossroads (but when didn’t it?), where evolving societal needs demand bold thinking, moral ambition, and adaptive approaches.

Philea’s 2024 Opinions provided a valuable snapshot of the sector’s journey and thinking, offering a roadmap for funders, practitioners, and communities alike. Five core themes emerged, each shaping the future of giving in its own way.

Disclosure: these are not necessarily the opinions of Philea, but an attempt to capture the prevailing winds of opinion from our guest authors last year.

1. Moral Ambition: Philanthropy’s new North Star?

As explained brilliantly by Rutger Bregman during the Opening Plenary of the Philea Forum 2024, the philanthropic world is increasingly embracing “moral ambition” – a blend of activism and entrepreneurial spirit aimed at dismantling systemic barriers. But to achieve this, philanthropy has to move beyond surface-level reforms and confront its own biases and entrenched practices.

Reimagining philanthropy requires a radical shift: one that centres marginalised voices not as recipients of charity, but as partners in change. Moral ambition foregrounds courage to question existing models and embrace uncomfortable truths.

The Challenge: Tokenism versus True Inclusion

There’s a risk that efforts to include diverse perspectives could become tokenistic if not rooted in genuine power-sharing. Philanthropic organisations must guard against performative gestures that fail to address underlying inequalities.

The Opportunity: Trust through engagement

True moral ambition can foster trust. When communities see their lived experiences reflected in funding priorities, philanthropy becomes more responsive and impactful. The idea is that this is not about charity; it’s about justice.

2. Climate Action: A bridge over troubled waters

The climate crisis remains one of the most urgent issues of our time. Yet, philanthropy’s response often falls into silos – either supporting mitigation strategies to reduce emissions or funding adaptation measures to help communities cope with the impacts. This divide is increasingly seen as unhelpful.

Philea’s insights urge funders to bridge this gap. The most effective climate strategies will integrate both mitigation and adaptation, empowering communities to build resilience while reducing future risks.

The Challenge: Resource allocation

Philanthropic resources are finite. Funders must carefully balance their investments between long-term mitigation efforts and immediate adaptation needs.

The Opportunity: Community-led solutions

By funding integrated approaches, philanthropy can support grassroots initiatives that tackle climate challenges holistically. For example, projects that both reduce carbon footprints and strengthen local infrastructure to withstand extreme weather events offer dual benefits.

3. Participatory Grantmaking: Giving power back

The rise of participatory grantmaking (PGM) reflects a growing recognition that communities should have a say in how funds are distributed. This model seeks to democratise philanthropy by placing decision-making power in the hands of those closest to the issues being addressed.

While this approach is gaining traction, it’s not without its hurdles. Organisations often struggle to balance community input with institutional priorities, and there’s a risk that participatory processes can become time-consuming or bureaucratic.

The Challenge: Balancing control and flexibility

How can philanthropic organisations maintain accountability while handing over control to communities? Striking this balance is essential to ensuring PGM’s success.

The Opportunity: Empowerment and relevance

When communities take ownership of funding decisions, projects become more relevant and impactful. Participatory models build trust, increase legitimacy, and ensure that philanthropic efforts are aligned with real needs.

4. Flexible funding models: Adapting to uncertainty

The world is unpredictable – a fact brought home by recent global crises. Yet, many funders still cling to rigid, project-specific grants that limit organisations’ ability to adapt. 2024 saw a growing call for more flexible funding models that provide unrestricted support, allowing grantees to pivot as circumstances change.

Unrestricted funding fosters innovation and resilience, enabling organisations to respond to emerging challenges without constantly seeking new approvals or meeting rigid reporting requirements.

The Challenge: Trusting grantees

The shift from control to trust is not easy. Funders worry about accountability and ensuring that their money is used effectively.

The Opportunity: Building resilience

Flexible funding models create more resilient organisations. They empower grantees to experiment, take risks, and innovate – essential qualities in a rapidly changing world.

5. Trust and transparency: Rebuilding public confidence

Trust in institutions – including philanthropic organisations – is at a historic low. The sector must take deliberate steps to rebuild this trust through transparency, accountability, and ethical practices.

This means being open about funding decisions, demonstrating impact, and holding themselves accountable to the communities they serve. Trust is hard-earned and easily lost, but it remains the cornerstone of effective philanthropy.

The Challenge: Addressing scepticism

Many view philanthropy with suspicion, questioning the motives behind large donations and the influence wielded by wealthy individuals and foundations.

The Opportunity: Leading by example

Philanthropy has the potential to lead the way in restoring public trust. By prioritising ethics, transparency, and a commitment to the public good, the sector can set a powerful example for other institutions.

New year, new direction: A call to action

The consensus? That philanthropy in 2025 can and must be braver, more inclusive, and more adaptable. The lessons from 2024 highlight the need for a sector that listens more and dictates less. Funders must embrace moral ambition, integrate climate strategies, empower communities, adopt flexible funding models, and prioritise trust-building.

These changes won’t happen overnight. But if philanthropy is to remain relevant and impactful in an ever-changing world, it must be willing to evolve. The future of giving depends on it.