What's Happening?
The concept of strategic philanthropy is evolving beyond traditional models, where donors allocate resources to causes and receive social good in return. A new perspective highlights the 'boomerang effect,'
where the act of giving generates substantial non-pecuniary returns for donors themselves. This phenomenon is observed in initiatives like Singapore's first dedicated counseling center for ADHD, which not only addresses societal gaps but also enriches the donors through an 'altruism dividend.' This approach emphasizes the importance of purpose in philanthropy, suggesting that giving can enhance subjective well-being and contribute to holistic assessments of prosperity.
Why It's Important?
The 'boomerang effect' in strategic philanthropy underscores the potential for donors to gain more than just reputational benefits. By investing in causes with significant social externalities, donors can experience personal enrichment and fulfillment. This shift in perspective could encourage more individuals and institutions to engage in philanthropy, recognizing the broader impact on their own well-being. As subjective well-being becomes a crucial metric for assessing prosperity, strategic philanthropy could play a vital role in shaping societal values and priorities, fostering a culture of giving that benefits both recipients and donors.
