How Philanthropy Built, Lost, and Could Reclaim the A.I. Race

Curated on Posted on by Stefaan Verhulst

Article by Sara Herschander: “How do we know you won’t pull an OpenAI?”

It’s the question Stella Biderman has gotten used to answering when she seeks funding from major foundations for EleutherAI, her two-year-old nonprofit A.I. lab that has developed open-source artificial intelligence models.

The irony isn’t lost on her. Not long ago, she declined a deal dangled by one of Silicon Valley’s most prominent venture capitalists who, with the snap of his fingers, promised to raise $100 million for the fledgling nonprofit lab — over 30 times EleutherAI’s current annual budget — if only the lab’s leaders would agree to drop its 501(c)(3) status.

In today’s A.I. gold rush, where tech giants spend billions on increasingly powerful models and top researchers command seven-figure salaries, to be a nonprofit A.I. lab is to be caught in a Catch-22: defend your mission to increasingly wary philanthropic funders or give in to temptation and become a for-profit company.

Philanthropy once played an outsize role in building major A.I. research centers and nurturing influential theorists — by donating hundreds of millions of dollars, largely to university labs — yet today those dollars are dwarfed by the billions flowing from corporations and venture capitalists. For tech nonprofits and their philanthropic backers, this has meant embracing a new role: pioneering the research and safeguards the corporate world won’t touch.

“If making a lot of money was my goal, that would be easy,” said Biderman, whose employees have seen their pay packages triple or quadruple after being poached by companies like OpenAI, Anthropic, and Google.

But EleutherAI doesn’t want to join the race to build ever-larger models. Instead, backed by grants from Open Philanthropy, Omidyar Network, and A.I. companies Hugging Face and StabilityAI, the group has carved out a different niche: researching how A.I. systems make decisions, maintaining widely used training datasets, and shaping global policy around A.I. safety and transparency…(More)”.

Impact Curious?

Curated on Posted on by Stefaan Verhulst

Excerpt of book by Priya Parrish: “My journey to impact investing began when I was an undergraduate studying economics and entrepreneurship and couldn’t find any examples of people harnessing the power of business to improve the world. That was 20 years ago, before impact investing was a recognized strategy. Back then, just about everyone in the field was an entrepreneur experimenting with investment tools, trying to figure out how to do well financially while also making positive change. I joined right in.

The term “impact investing” has been around since 2007 but hasn’t taken hold the way I thought (and hoped) it might. There are still a lot of myths about what impact investing truly is and does, the most prevalent of which is that doing good won’t generate returns. This couldn’t be more false, yet it persists. This book is my attempt to debunk this myth and others like it, as well as make sense of the confusion, as it’s difficult for a newcomer to understand the jargon, sort through the many false or exaggerated claims, and follow the heated debates about this topic. This book is for the “impact curious,” or anyone who wants more than just financial returns from their investments. It is for anyone interested in finding out what their investments can do when aligned with purpose. It is for anyone who wishes to live in alignment with their values—in every aspect of their lives.

This particular excerpt from my book, The Little Book of Impact Investing, provides a history of the term and activity in the space. It addresses why now is a particularly good time to make business do more and do better—so that the world can and will too…(More)”.

Grant Guardian

Curated on Posted on by Stefaan Verhulst

About: “In the philanthropic sector, limited time and resources can make it challenging to thoroughly assess a nonprofit’s financial stability. Grant Guardian transforms weeks of financial analysis into hours of strategic insight–creating space for deep, meaningful engagement with partners while maintaining high grantmaking standards.

Introducing Grant Guardian

Grant Guardian is an AI-powered financial due diligence tool that streamlines the assessment process for both foundations and nonprofits. Foundations receive sophisticated financial health analyses and risk assessments, while nonprofits can simply submit their existing financial documents without the task of filling out multiple custom forms. This streamlined approach helps both parties focus on what matters most–their shared mission of creating impact.

How Does It Work?

Advanced AI Analyses: Grant Guardian harnesses the power of AI to analyze financial documents like 990s and audits, offering a comprehensive view of a nonprofit’s financial stability. With rapid data extraction and analysis based on modifiable criteria, Grant Guardian bolsters strategic funding with financial insights.

Customized Risk Reports: Grant Guardian’s risk reports and dashboards are customizable, allowing you to tailor metrics specifically to your organization’s funding priorities. This flexibility enables you to present clear, relevant data to stakeholders while maintaining a transparent audit trail for compliance.

Automated Data Extraction: As an enterprise-grade solution, Grant Guardian automates the extraction and analysis of data from financial reports, identifies potential risks, standardizes assessments, and minimizes user error from bias. This standardization is crucial, as nonprofits often vary in the financial documents they provide, making the due diligence process more complex and error-prone for funders…(More)”.

Philanthropy by the Numbers

Curated on Posted on by Stefaan Verhulst

Essay by Aaron Horvath: “Foundations make grants conditional on demonstrable results. Charities tout the evidentiary basis of their work. And impact consultants play both sides: assisting funders in their pursuit of rational beneficence and helping grantees translate the jumble of reality into orderly, spreadsheet-ready metrics.

Measurable impact has crept into everyday understandings of charity as well. There’s the extensive (often fawning) news coverage of data-crazed billionaire philanthropists, so-called thought leaders exhorting followers to rethink their contributions to charity, and popular books counseling that intuition and sentiment are poor guides for making the world a better place. Putting ideas into action, charity evaluators promote research-backed listings of the most impactful nonprofits. Why give to your local food bank when there’s one in Somerville, Massachusetts, with a better rating?

Over the past thirty years, amid a larger crisis of civic engagement, social isolation, and political alienation, measurable impact has seeped into our civic imagination and become one of the guiding ideals for public-spirited beneficence. And while its proponents do not always agree on how best to achieve or measure the extent of that impact, they have collectively recast civic engagement as objective, pragmatic, and above the fray of politics—a triumph of the head over the heart. But how did we get here? And what happens to our capacity for meaningful collective action when we think of civic life in such depersonalized and quantified terms?…(More)”.

Social Innovation and the Journey to Transformation

Curated on Posted on by Stefaan Verhulst

Special series by Skoll for the Stanford Social Innovation Review: “…we explore system orchestration, collaborative funding, government partnerships, mission-aligned investing, reimagined storytelling, and evaluation and learning. These seven articles highlight successful approaches to collective action and share compelling examples of social transformation.

The time is now for philanthropy to align the speed and scale of our investments with the scope of the global challenges that social innovators seek to address. We hope this series will spark fresh thinking and new ideas for how we can create durable systemic change quickly and together…(More)”.

The Routledge Handbook of Artificial Intelligence and Philanthropy

Curated on Posted on by Stefaan Verhulst

Open Access Book edited by Giuseppe Ugazio and Milos Maricic: “…acts as a catalyst for the dialogue between two ecosystems with much to gain from collaboration: artificial intelligence (AI) and philanthropy. Bringing together leading academics, AI specialists, and philanthropy professionals, it offers a robust academic foundation for studying both how AI can be used and implemented within philanthropy and how philanthropy can guide the future development of AI in a responsible way.

The contributors to this Handbook explore various facets of the AI‑philanthropy dynamic, critically assess hurdles to increased AI adoption and integration in philanthropy, map the application of AI within the philanthropic sector, evaluate how philanthropy can and should promote an AI that is ethical, inclusive, and responsible, and identify the landscape of risk strategies for their limitations and/or potential mitigation. These theoretical perspectives are complemented by several case studies that offer a pragmatic perspective on diverse, successful, and effective AI‑philanthropy synergies.

As a result, this Handbook stands as a valuable academic reference capable of enriching the interactions of AI and philanthropy, uniting the perspectives of scholars and practitioners, thus building bridges between research and implementation, and setting the foundations for future research endeavors on this topic…(More)”.

Government + research + philanthropy: How cross-sector partnerships can improve policy decisions and action

Curated on Posted on by Stefaan Verhulst

Paper by Jenni Owen: “Researchers often lament that government decision-makers do not generate or use research evidence. People in government often lament that researchers are not responsive to government’s needs. Yet there is increasing enthusiasm in government, research, and philanthropy sectors for developing, investing in, and sustaining government-research partnerships that focus on government’s use of evidence. There is, however, scant guidance about how to do so. To help fill the gap, this essay addresses (1) Why government-research partnerships matter; (2) Barriers to developing government-research partnerships; (3) Strategies for addressing the barriers; (4) The role of philanthropy in government-research partnerships. The momentum to develop, invest in, and sustain cross-sector partnerships that advance government’s use of evidence is exciting. It is especially encouraging that there are feasible and actionable strategies for doing so…(More)”.

How Philanthropy Can Make Sure Data Is Used to Help — Not Harm

Curated on Posted on by Stefaan Verhulst

Article by Ryan Merkley: “We are living in an extractive data economy. Every day, people generate a firehose of new data on hundreds of apps and services. These data are often sold by data brokers indiscriminately, embedded into user profiles for ad targeting, and used to train large language models such as Chat GPT. Communities and individuals should benefit from data made by and about them, but they don’t.

That needs to change. A report released last month by the Aspen Institute, where I work, calls on foundations and other donors to lead the way in addressing these disparities and promoting responsible uses of data in their own practices and in the work of grantees. Among other things, it suggests that funders encourage grantees to make sure their data accurately represents the communities they serve and support their efforts to make that data available and accessible to constituents…(More)”.

Missions with Impact: A practical guide to formulating effective missions

Curated on Posted on by Stefaan Verhulst

Guide by the Bertelsmann Stiftung: “The complex challenges associated with sustainability transitions pose major problems for modern political systems and raise the question of whether new ways of negotiation, decision-making and implementation are needed to address these challenges. For example, given the broad-reaching effects of an issue like climate change on diverse aspects of daily life, policy fields and action areas, conventional solutions are unlikely to prove effective.

Mission orientation proves to be a promising approach for addressing cross-cutting thematic challenges. It involves formulating well-defined “missions” intended to direct innovation, economic activities and societal initiatives toward desired outcomes. These missions aim for transformational change, targeting fundamental shifts that extend beyond the usual political timelines to ensure enduring impact. Across several OECD countries and at the EU level, initiatives embracing a mission-oriented approach are gaining momentum. For instance, the EU’s mission of “100 climate-neutral cities” exemplifies this approach by exploring new pathways to achieve climate neutrality by 2030. Here, stakeholders from diverse sectors can get involved to help generate effective solutions targeting the objective of climate neutrality…(More)”.

Big Bet Bummer

Curated on Posted on by Stefaan Verhulst

Article by Kevin Starr: “I just got back from Skoll World Forum, the Cannes Festival for those trying to make the world a better place…Amidst the flow of people and ideas, there was one persistent source of turbulence. Literally, within five minutes of my arrival, I was hearing tales of anxiety and exasperation about “Big Bet Philanthropy.” The more people I talked to, the more it felt like the hungover aftermath of a great party: Those who weren’t invited feel left out, while many of those who went are wondering how they’ll get through the day ahead.

When you write startlingly big checks in an atmosphere of chronic scarcity, there are bound to be unintended consequences. Those consequences should guide some iterative party planning on the part of both doers and funders. …big bets bring a whole new level of risk, one borne mostly by the organization. Big bets drive organizations to dramatically accelerate their plans in order to justify a huge (double-your-budget and beyond) infusion of dough. In a funding world that has a tiny number of big bet funders and generally sucks at channeling money to those best able to create change, that puts you at real risk of a momentum and reputation-damaging stall when that big grant runs out…(More)”.