Philanthropys Vision for UNs Future Summit Unveiled

Positioning Philanthropy's role and accelerating its contribution in a Post-2030 World

We, private philanthropies, and foundations supporting the Sustainable Development Goals have gathered to contribute actively as a community to the United Nations' Summit of the Future 22-23 September. We reiterate and emphasise the intent of our private philanthropy community build on and advance our existing development co-operation efforts. We hereby commit to and call for:

1. Tackling inequalities and multidimensional development challenges, while continuing to amplify and prioritise the voice and experiences of the Global South:

• Direct increased attention and greater resources to low-income countries where development needs are very acute. In the period 2016-2019, the majority of philanthropic funding (USD 9.9 billion) targeted upper middle-income countries. We reaffirm our collective commitment to directing greater resources to lower middle-income countries and low-income countries, which in the same period received USD 9.1 billion and USD 3 billion, respectively (OECD, 2021).
• Channel funding towards local women, youth and grassroots funds. We commit to scaling up funding through re-granting organisations such as local women and grassroots funds in the Global South. These funds have several benefits, including their local knowledge and expertise, their absorptive capacity, their potential to help advance human rights and social justice in the context of oppressive systems and environments, catalyse community philanthropy as well as their potential to close local project financing gaps through instruments like micro-grants (OECD, 2024).
• Systematically advocate for a seat at the global policy table -one that is also accessible and attractive to philanthropy - from the Global South. For example, this could take the format of a continuous cross-sector engagement platform at the G20 and at the UN to tackle global inequalities and inequities, advocate for accessible and affordable financing, and enhance trust in the multilateral system.

2. Moving from a vertical to a multi-dimensional approach to fighting inequalities and to foster development effectiveness:

• Strengthening partnerships. We stand ready to strengthen and embrace new ways of working, develop cohesive strategies (cross-regional and global) with other philanthropies, as well as public-private-philanthropic partnerships (PPPPs) with local governments, development agencies, multilateral development banks/development finance institutions, private sector partners, philanthropy networks, non-governmental organisations, and other local actors. We commit to exploring and pursuing strategic alignment, as well as collective funding and implementing opportunities to effectively leverage resources and maximise collective development impact.
• Continue to break down policy silos and pursue intersectoral approaches. Collaboration across sectors is crucial to address the complexity of the challenges we are facing. We commit to deliver the stated aims and goals of existing thematic collaboratives.
• Commit to actively promoting and protecting civic space. In an era increasing restrictions on civil society participation, as documented by CIVICUS (CIVCUS, 2017, CIVCUS 2024), we commit to promoting and protecting civic space, while supporting the right to freedom of association and the right to both give and receive resources.

3. Leverage philanthropy's comparative advantage by adopting and exploring more innovative development finance approaches:

• Where relevant, deploy non-earmarked grants and flexible financing approaches. Although flexible funding currently represents around only 16% of all philanthropic donations, or 19% of all funding between 2016-19, studies indicate it has several key benefits[1] (OECD, 2024). These include changing the relationship between grantors and grantees to be more trust-based, long-term, and supporting a robust and independent civil society. We affirm our collective commitment to looking in depth at our portfolios and assessing which grantees may benefit from flexible approaches to improve agile implementation of project and meet the right needs of beneficiaries.
• Commit to mobilising additional capital via new instruments, such as blended finance, debt swaps, fiscal sponsoring and other innovative mechanisms. We continue to provide catalytic capital to further mobilise concessional and non-concessional public and private development finance to be directed towards poverty alleviation and towards addressing the effects of climate change on the most vulnerable groups. As part of this, we commit to using de-risking measures that are equitable and not overly restrictive or prohibitive to smaller NGOs and locally based CSOs.
• Remain aware of the need for creating adequate safeguards to ensure transparency, accountability, and clear alignment with local development needs. We commit to evaluations to help identify best practices for larger scale financing from other global lenders and actors.

^{[1] The OECD defines private philanthropic flows for development as "transactions from the private sector having the promotion of the economic development and welfare of developing countries as their main objective, and which originate from foundations' own sources, notably endowment, donations from companies and individuals (including high net worth individuals and crowdfunding), legacies, as well as income form royalties, investments (including government securities), dividends, lotteries and similar (OECD, 2018).}

^{[2] This figure is taken from the report OECD (2024), No strings attached? Making sense of flexible financing in philanthropy. Findings in the report are based on data from the OECD database on Private Philanthropy for Development, and looks at flexible funding from more than 180 private philanthropic donors from 32 countries, and historical. yearly giving from 20 large foundations.}

Annex 1. Taking Stock: Private Philanthropy's Contribution to Sustainable Development

Philanthropic actors have emerged as fully-fledged development actors with the potential to help deliver the Sustainable Development Goals and beyond. Philanthropy contributes to various areas of development, including:

Education.

• Between 2016 and 2019, total global philanthropic funding for education was USD 4.5 billion (OECD, 2021). However, based on OECD data, only 4% of this amount was directed towards K-12 education, which is the primary focus of government sector plans. Cross-border philanthropic giving represented the eighth largest source of financing for education towards the Global South, on par with some of the most prominent ODA providers. Education was also the top sector for domestic philanthropy, with USD 4.5 billion (11%) (OECD, 2021).
• Beyond just financial aid, philanthropic organisations help adapt education systems to the needs of 21^st century learners by driving educational innovation, supporting research, advocating for change, empowering local solutions and promoting life-long learning solutions for vulnerable adults so they are not left behind. For example, the Schools 2030 Initiative, which targets 1000 schools across ten countries over a decade, focuses on codifying and scaling best teacher practices. This includes greening education in contexts heavily affected by poverty and climate change. Elsewhere, the Jacobs Foundation and UBS Optimus Foundation have leveraged the GPE Multiplier to scale the 'Program d'Enseignement Ciblé', a localised version of Teaching at the Right Level, across rural Cote d'Ivoire. This initiative was further supported by a debt swap.
• At the Transforming Education Summit (TES) in 2022, netFWD and the International Education Funders Group (IEFG) issued a joint statement underlining philanthropy's commitment to transform education. The statement (i) highlighted philanthropy's willingness to step up to address the lack of progress towards global education goals, (ii) presented some of the unique ways in which philanthropy can support change, and (iii) called upon the international community to involve philanthropic actors more systematically in co-operation for education progress.

Gender

• Gender-related philanthropic funding for development doubled over the 5-year period, from 1.3 billion in 2018 to 2.6 billion in 2022 (OECD, 2021). Beyond funding, philanthropy can act as a bridgebuilder, pathfinder and enabler.
• At the COP28 Business Philanthropy and Climate Forum in December 2023, a Call to Action to Accelerate Gender-Responsive Climate Actions was endorsed by 13 organisations, signalling their commitment to addressing gender and climate considerations together.

Health

• Philanthropy is working beyond silos in health, promoting more integrated and collaborative approaches to tackle global health challenges. For example, collaborative funds were established during the COVID pandemic that took a multi-stakeholder approach that included leading philanthropies, international organisations and ODA donors such as the South Africa Solidarity Fund and the Africa Donor Collective (now Africa Partners Collective).
• At COP28 in December 2023, netFWD endorsed Guiding Principles for Financing Climate and Health Solutions[3]. The Guiding Principles establish a shared vision for financing climate and health solutions that include adapting health systems to protect people from the range of climate risks to health and building resilient, environmentally sustainable health systems. These Principles are endorsed by over 30 organisations, showing the momentum of partners working together to support climate and health solutions in a sustainable and coordinated manner.

Climate

• Philanthropic action to address climate change is increasing rising to USD 1.5 billion in 2021 (OECD, 2023).
• The global #PhilanthropyForClimate movement [2], which brings together around 800 foundations worldwide with the goal of scaling up philanthropic engagement on climate through an intersectional approach, has the potential to unlock a tremendous amount of resources for climate action."
• At the New Global Financing Pact Summit (Paris Pact for People & the Planet) in June 2023, 19 philanthropies signed a communiqué that outlines how philanthropic actors can leverage their expertise towards supporting and scaling climate and development efforts. The communiqué specifically calls for an increase in philanthropy's financial contributions to address climate and biodiversity needs, while maintaining support to human development priorities. Key amongst these priorities is a commitment to identifying projects that reduce the gender gap.

Locally Led Development.

• In December 2022 at the 2022 Effective Development Cooperation Summit in Geneva, 46 donors and philanthropies launched the "Donor Statement Supporting Local Development". The 20 donors and 26 foundations that signed the statement recognising the central role of LLD and committed to (1) shift and share power, (2) work to channel high-quality funding as directly as possible and (3) publicly advocate for LLD.

Human Rights including Civic Space.

• Philanthropy plays a critical role in supporting multilateral bodies and CSOs mandated to uphold and promote international human rights norms including civic space. Closing civic space and rising restrictions on civil society participation has been documented by the Varieties of Democracy Institute (Alizada, N. et al, 2021), (Boese, V. et al., 2022), the International Center for Not-for-Profit Law (International Center for Not-for-Profit Law, 2020), and CIVICUS (CIVCUS, 2024) amongst others. In several regions of the world, philanthropists are having conversations on how race, equity, and inclusion play a crucial role in shaping philanthropy strategies.

References

1. Alizada, N. et al. (2021), Autocratization Turns Viral. Democracy Report 2021, https://www.v-dem.net/static/website/files/dr/dr_2021.pdf.
2. Boese, V. et al. (2022), Autocratization Changing Nature? Democracy Report 2022, https://v-dem.net/media/publications/dr_2022.pdf.
3. CIVICUS, Civic Space Monitor (2024). Available at: www.monitor.civicus.org
4. Funders' Initiative for Civil Society and Philanthropy Europe Association (Philea), "Why Shrinking Civil Society Space Matters in International Development and Humanitarian Action", November, 2017. Available at: https://philea.issuelab.org/resource/why-shrinking-civil-society-space-matters-in-international-development-and-humanitarian-action.html
5. Indiana University, Lily School of Philanthropy, Global Philanthropy Environment Index(GPEI) 2023. Available at: https://globalindices.indianapolis.iu.edu/environment-index/index.html
6. International Center for Not-for-Profit Law (2020), Top Trends: Covid-19 and Civic Space, https://www.icnl.org/wp-content/uploads/05.2020-Trends-in-COVID-impact-on-CS-vf.p
7. OECD (2021), OECD CRS Database on Private Philanthropy for Development, https://data-explorer.oecd.org/vis?df[ds]=DisseminateFinalDMZ&df[id]=DSD_PPFD%40DF_PPFD&df[ag]=OECD.DCD.FSD&dq=9PRIV0..1000._T.D.Q._T..&lom=LASTNPERIODS&lo=5&to[TIME_PERIOD]=false.
8. OECD (2023), OECD Creditor Reporting System.
9. OECD (2024), No strings attached? Making sense of flexible financing in philanthropy, OECD Publishing, Paris, https://doi.org/10.1787/0264b47f-en.
10. Philanthropy Europe Association (Philea), "European Philanthropy Manifesto", updated 2024, Available at: https://philea.eu/how-we-can-help/policy-and-advocacy/european-philanthropy-manifesto/
11. The Partnering Initiative, "Systems Change Activation: Empowering philanthropy's catalytic role in transformational PPPPs", 2023, available at: https://thepartneringinitiative.org/wp-content/uploads/2023/12/Philanthropy-critical-activation-PPPPs.pdf and the PPPP Library available at: https://t.co/rK62C1Pt7O
12. UN Special Rapporteur on the rights to freedom of peaceful assembly and of association, "General principles and guidelines on ensuring the right of civil society organizations to have access to resources, A/HRC/53/38/Add.4. Available at: https://www.ohchr.org/en/documents/thematic-reports/ahrc5338add4-general-principles-and-guidelines-ensuring-right-civil
13. WINGS, "Lessons from Climate Funders on Locally-led Development Assistance", May 2023, available at: https://wings.issuelab.org/resource/lessons-from-climate-funders-on-locally-led-development-assistance.html
14. WINGS, "Philanthropy can be a Solution to Making Localisation a Reality",
15. July 2022. Available at: https://wings.issuelab.org/resource/philanthropy-can-be-a-solution-to-making-localisation-a-reality.html
16. WINGS, International Philanthropy Commitment on Climate Change. Available at: https://philanthropyforclimate.org/about-us/

• Philanthropy
• Centre on philanthropy