More Efficient Philanthropy through Technology

Technology is allowing philanthropists to allocate capital more efficiently, notes a recent article from Forbes.com.

Citing a Boston College study that found that $5.5 trillion to $7.4 trillion will be spent on philanthropy over the next 20 years, the article also notes that private foundations (which "account for 90 percent of all charitable assets") until recently spent as much as $5 billion a year on administration alone.

Today, however, technology has allowed foundations to outsource much of this administration. Companies like Foundation Source are helping foundations manage and distribute funds at a fraction of the cost, relying on databases and other technologies to cross-check information and even handle IRS filings. By enabling "even small family foundations to outsource backroom functions and become more efficient," these new innovations are allowing foundations to allocate more money to good causes.

Read the full article.

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