September 3, 2024

Heroes of the Social Sector by Peter Brach

Imagine a world where every nonprofit had to reinvent the wheel, where donors fumbled in the dark to find causes aligned with their missions, or where most groundbreaking social innovations remained isolated and unknown. This was the reality of the social sector before the rise of what are known as Philanthropy Support Organizations, or more broadly called, Social Impact Infrastructure Organizations (SIIOs). Today, often without realizing it, we stand on the shoulders of these pivotal organizations and those who have supported them for nearly a century.

Imagine being a nonprofit wishing to address egregious conditions among malnourished children across the U.S. and not having a clue about which foundation to turn to for funding. That was the world we lived in prior to 1956 when the Foundation Directory was first published. Today, we can’t count the number of nonprofits that have survived and thrived because of this directory.

SIIOs: An Invisible Force Driving Social Impact

SIIOs are the connectors, conveners, accelerators, researchers, trainers, educators, and platforms that serve as the connective tissue binding the social sector together. They’re the reason why:

  • A small nonprofit focusing on child nutrition can easily find potential funders.
  • Donors can confidently choose effective charities to support.
  • Nonprofits can access affordable technology solutions to streamline their operations.
  • You can find solutions to support the causes you care about most.

Yet, despite their crucial role, you may wonder: Why do SIIOs and their funders often fly under the radar? Ask yourself, how many conference sessions do you remember that focused on how SIIOs amplify social progress? How many articles have you found on champion funders achieving an extensively big and broad impact, such as in the Foundation Directory example?

A Legacy of Impact

  • The history of SIIOs dates back to 1924 with the founding of the Charities Aid Foundation (CAF) in the UK. Since then, visionary organizations and their funders have been quietly revolutionizing the social sector:1924: The Charity Aids Foundation is established to support donors and charities by providing financial services, advice, and resources.
  • 1946: The Council on Foundations begins, ultimately influencing the distribution of possibly hundreds of billions of dollars in philanthropic funds.
  • 1956: The Foundation Center (now Candid) publishes the first Foundation Directory, opening doors for countless nonprofits to find funding.
  • 1980: Independent Sector is established, becoming a crucial voice for the nonprofit sector, along with the later formed National Council of Nonprofits in 1990.
  • 1987: TechSoup launches, providing vital technology resources to nonprofits worldwide.
  • 1989: The European Foundation Centre launches, now Philea, to serve many social actors on the European continent.

Today we estimate that there are likely 1,000 SIIOs globally. .

The Social Impact Investment Movement

Beginning in 2004, numerous SIIOs became  key organizations behind the movement that drove more than a trillion dollars into the social sector. Some of these included GIIN, EVPA,  AVPN, the AVPA, Confluence Philanthropy, and IPE.

The Multiplier Effect

The impact of SIIOs isn’t just additive—it’s exponential. Collectively they build capacity for the philanthropy, nonprofit, and civil society sectors. They create enabling environments, partner with governments, provide technologies, partner with communities, and more.

Consider this: Every major trend in the social sector—from impact investing to collaboration, from support for the Sustainable Development Goals to equity and inclusion—gained momentum because infrastructure was in place. Media channels such as the Chronicle of Philanthropy, The Social Sector Innovatino Review, and Alliance Magazine were available to introduce new approaches and provide platforms for discussions. Other SIIOs were also in place to convene stakeholders and move concepts into widely adopted practices.

Small Investments, Big Returns

While some may argue that infrastructure funding lacks notable impact, the evidence suggests otherwise. Even modest grants to SIIOs can drive significant results:

  • A $19,000 grant to hire an executive assistant in Kenya or an SDG program led to a 140% increase in student graduates, many of whom went on to social sector careers.
  • A $100,000 grant enabled an organization serving the ultra-wealthy to create a revenue-generating model that has so far raised $1.4 million.

Funders Who Achieved a Big and Broad Impact

Who are these visionary funders? They include some of the most respected names in philanthropy: The Gates, Ford, Hilton, Rockefeller, Mott, William and Flora Hewlett, and Raikes Foundations, Fidelity Charitable, among others. You can get an idea of some of the big and broad impact funders created here.

A Call to Action

As we face increasingly complex global challenges, the need for a robust, efficient, and innovative social sector has never been greater. Supporting SIIOs is not just an investment in organizations—it’s an investment in the future of social impact itself.

For funders looking to achieve a big and broad impact, consider this:

  • Allocate a portion as little as 1% of your giving to SIIOs beyond membership dues.
  • Offer your skills. New findings suggest that these organizations need high-level human resource support.
  • Engage with existing infrastructure organizations to understand sector-wide needs.
  • Advocate for the importance of infrastructure funding among your peers.

By supporting the invisible force of SIIOs, we can amplify the impact of countless dollars spent, hours volunteered, and lives touched by the social sector. Become a Social Sector Champion!

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