Today is Election Day, a powerful reminder of our democratic process and the impact it holds on philanthropy, especially as it relates to public-private partnerships and capital stacks. Here are just some of the reasons why public elections are incredibly important toward shaping private philanthropy:
- Shaping the Philanthropic Landscape: Elections determine the leaders who shape government policies and priorities. A change in leadership at the local, state, or federal level can significantly influence the direction of public funding, which often complements private philanthropy. This, in turn, plays a crucial role in shaping the feasibility of fundraising initiatives.
- Capital Stacks and Investment Climate: Whether it’s bond measures, tax incentives, or regulatory changes, political outcomes can affect the financial tools available for capital stacks in philanthropic projects.
- Behavioral Economics at Play: While feasibility studies lend us insight into the behavioral economics of a community, national elections lend us insight into the behavioral economics of an entire nation. From those insights, a campaign can be positioned for maximum impact.
Election Day is not just about casting ballots; it’s a moment to reflect on the interplay between our democratic system and philanthropy.