How Data is shaping the Future of Foundations

To quickly grasp how pervasive data has become in our society, we invite you to explore the "2024 MAD – Machine Learning, AI & Data Landscape " by Matt Turck . This infographic provides an overview of all the major technological solutions available for businesses and institutions in the data ecosystem, from machine learning to data cleaning, from data lakes to data visualization. It’s an extraordinary summary, especially when compared to its first edition in 2014 available here . Viewing it makes it immediately clear how rapidly this world has evolved at an astonishing speed.

Data in the non-profit world

There's no longer any doubt that data represents a fundamental resource for every organization and every business unit. But what about the nonprofit world? Numerous studies and research have shown that data is also a valuable resource for the third sector. Organizations like Candid have developed methodologies to systematically approach data issues, helping the nonprofit world generate a positive impact on society through the use of data. An example is the "Global Philanthropy Data Charter " from 2017, included in a comprehensive report available here .

Although the potential of data for philanthropic purposes has been recognized for some time, a comprehensive study on the maturity level of philanthropic foundations has never been conducted. We have already highlighted how these institutions now play a crucial role in community well-being not only in Italy but also at a European and global level. To give you an idea, here are the details of the $7 billion distributed by the Bill & Melinda Gates Foundation in 2022 (here you can find the six pages of the 2022 Annual Report).

The state of the International Philanthropic world: our Report with Philea - Philanthropy Europe Association

In the international landscape, there seemed to be a missing study that would bridge a significant gap, and as Fondazione Compagnia di San Paolo , we promoted a survey dedicated entirely to analyzing the maturity levels of philanthropic foundations regarding data management. We partnered with Philea - Philanthropy Europe Association , the leading European association representing over 10,000 philanthropic foundations.

The study involved 24 European foundations with a combined wealth of 60 billion euros and an expenditure in the last year of almost 4 billion euros. This resulted in a research titled "Data Science, AI and Data Philanthropy in Foundations. On the Path to Maturity ", downloadable at this link .

We explored numerous aspects divided into three clusters: internal data-related activities, the application of methods related to data science and artificial intelligence, and the broader concept of "Data philanthropy" which encompasses a range of activities not purely analytical but that nonetheless consider data as a central asset. Data philanthropy is a topic of extraordinary significance for the non-profit landscape and will be discussed in detail in a dedicated article.

The results of the Report "Data Science, AI and Data Philanthropy in Foundations. On the Way to Maturity."

We invite you to read the report as it is rich with insights adaptable to the for-profit world as well: for brevity, these are the main findings of the study:

1. Regarding the internal activities of data use, philanthropic foundations are still in an exploratory phase, are mature in data analysis and reporting, show an intermediate level in the application of data management and visualization methods, while only a few are exploring crucial aspects such as data science, data literacy, and data quality. No foundation has yet engaged in the enhancement of metadata, which represents one of the essential components of so-called "Data-driven organizations." A chart from the research summarizes this continuum of maturity that the foundations are aiming towards.
2. The use of Data Science and Artificial Intelligence tools is still limited, while the support that foundations provide to organizations working on these themes, both from technical and strategic standpoints (e.g., think tanks), is certainly more common.?
3. Furthermore, within the broad concept of "Data Philanthropy", the main initiatives of foundations involve the use of Open Data, sharing their own data externally, and participating in or creating ecosystems of organizations that use data for the common good. The use of private data provided by private entities, an intriguing topic we will discuss later, is still under-addressed.

The future of Data in the Philanthropic world

In summary, philanthropic foundations are not at all behind on data issues, despite being institutions that might not seem necessarily interested in Data at first glance. The truth is that foundations recognize the importance of Data and are progressively equipping themselves to increasingly leverage this crucial resource. The road ahead is still long, and some particularly impactful technologies like Data science and Artificial Intelligence are still limitedly managed, although their potential is widely acknowledged. It's worth noting the vast array of very specific activities, such as Open Data, promoting ecosystems of organizations, and promoting Data donations from private entities, where foundations can play a leading role as potential key players.

From this perspective, the Fondazione Compagnia di San Paolo has positioned itself as a leader in data engagement since 2017. For those interested in learning more, the "Fondazione Compagnia di San Paolo Data Strategy 2023-2030 " is available at this link , outlining the foundation's journey towards an increasingly Data-driven identity.

Time has confirmed that, even in our sector, data represents a fundamental resource, essential for achieving the goal of promoting the common good, to which our foundation is dedicated daily.