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Comprehensive Philanthropy Industry Analytical Framework Released by Deep Knowledge Group



Deep Knowledge Group’s DeepTech for Social Good subsidiary Deep Knowledge Philanthropy in partnership with Philanthropy.International and the AI and Data Science Division of DKG has released a new Philanthropy Industry Analytical Framework, representing the most comprehensive classification system to date for analyzing the Philanthropy Industry on a global scale.


The framework has been made accessible in an open-access format to better serve the needs of individuals and decision makers within the Philanthropy industry who are dedicated to developing global non-profit activities and serving individuals in need.


View Philanthropy Industry Analytical Framework Here: www.frameworks.technology/philanthropy-industry


View Full Documentation Here:


View Deep Knowledge Philanthropy Dashboard Here: www.philanthropy.international/philanthropy-dashboard


View Open Access Reports by Deep Knowledge Philanthropy Here:


Deep Knowledge Philanthropy is a data-driven non-profit project by Deep Knowledge Group committed to the support, development and advancement of DeepTech for social good, impact philanthropy and ethical investment, founded on the belief that DeepTech innovation is the most efficient driver of ‘social profit’, technological humanitarianism, and societal development, and that venture philanthropy is the profitable long-term investment for individuals, national economies, and humanity itself.


Deep Knowledge Philanthropy was founded in 2021 to carry forward and build upon the philanthropic vision of Deep Knowledge Group: to leverage technology as the most efficient driver of actionable, tangible social good, supporting innovations, science, charitable, and sponsorship projects internationally.


The Philanthropy Industry Analytical Framework identifies three key social impact organizations within the industry, including:

  • Philanthropy Entities

  • Venture Philanthropy Companies

  • Social Profit Philanthropy Organizations

Philanthropy includes two main subcategories, namely, Charities and Non-Profits and NGOs that could be grant-invested or sponsored both by grants and trading revenue. Philanthropy covers Sustainable Development organisations that are dealing with animal protection, food management, community development, environment and ecology. Apart from this, Philanthropy subsector includes Health organisations, covering hospitals, community health care companies, family welfare and disability care organisations. Moreover, Human Services organisations are also attributed to Philanthropy subsector, and include humanitarian aid companies, arts and culture organisations, educational and consulting institutions, as well as inclusive development organisations.


Venture Philanthropy covers Social Investment companies that could be social enterprises generating revenue or socially-driven businesses. Social Investment companies could be divided into thee main subcategories: Investment Platforms (Value Banking and Social Stock Exchanges), Advisory organisations (Social Investment Advisers and Funding Consultancies), and Investment Funds (Venture Philanthropy Funds and Social Investment Funds).



Social Profit Philanthropy includes Socially Responsible Businesses and Companies Allocating % to Charity that are focusing on seven main fields: Sustainable Development, Nature & Climate Protection, Education, Culture, and Sport, Humanitarian Aid, Legal Services, Healthcare & Support, and Financial Inclusion.



The major difference between traditional philanthropy and venture philanthropy lies in its goals: Venture philanthropy seeks measurable results; whereas, traditional philanthropy either has no goals or goals that are very hard to measure. Venture philanthropy specifically focuses on social causes, while impact investing has a broader remit of social and environmental causes. Both generally aim for a financial return while having a positive impact on the world, but not all investments yield a financial return.


Philanthropy Industry Analytical Framework



The main aim of the Philanthropy Industry Analytical Framework is to share a comprehensive overview of the Philanthropy industry participants and make it easier to compare businesses internationally, and focus on the each company's activity.


As the industry continues to grow and change, the Philanthropy Industry Analytical Framework will continue to incorporate the most recent advancements and patterns to stay relevant and up-to-date.


In 2021, a foretype of this Industry Analytical Framework formed the basis of the Global Philanthropy and Impact Investing Ecosystem IT-Platform, currently tracking the status of more than 3,000 businesses with purpose, 2,000 NGOs, 2,000 charities, and above 660 investors. The platform delivers advanced market intelligence, interactive mindmaps, benchmarking for charities, NGOs, businesses with purposes, and investors.



The purpose of the Philanthropy IT-Platform is to provide companies, entities, and investors with strategic recommendations and guidance on industry developments. By doing so, it helps them optimize their action plans and strategies, offers specialized guidelines for core business and investment decisions.



In 2022 this IT-Platform was used as the basis for Deep Knowledge Philanthropy and Philanthropy.International’s Global Philanthropy Industry Big Data Analytics Dashboard, an advanced platform that provides unparalleled insights into the ever-changing philanthropy landscape. This powerful tool is designed to leverage the latest advancements in data science to help decision-makers analyze the industry's quantitative parameters in real-time. Built on a foundation of extensive research and deep expertise in philanthropy, the dashboard equips users with the tools they need to analyze the entire industry, as well as identify the most relevant data and metrics.


With its user-friendly interface and powerful analytics capabilities, the Global Philanthropy Big Data Analytics Dashboard enables users to make informed decisions and identify trends that impact the philanthropy industry. By providing access to real-time information on philanthropy spending, funding trends, and key industry players, the dashboard empowers decision-makers to stay ahead of the curve and drive innovation in this rapidly evolving sector. Whether you're a government agency, a private sector firm, or a research institution, the Global Philanthropy Big Data Analytics Dashboard is an indispensable tool for anyone looking to stay on the cutting edge of philanthropy innovation.



The Global Philanthropy Industry Big Data Analytics Dashboard is designed to help philanthropy companies with market research and in-depth industry statistics, obtain in-depth competitor analysis, make key strategic recommendations and guidance regarding latest trends and insights in the industry. Using the platform, Philanthropy investors can get a transparent overview of philanthropy companies, NGOs, and charities to invest in or work with.


Key Industry Trends and Take-Aways from the Framework:


The Philanthropy industry has been growing steadily over the past few decades. In 2021, the direct donations generated by global philanthropy amounted to $550B.


The growth of wealth and income inequality has led to increased interest in philanthropy and social impact investing. Additionally, the COVID-19 pandemic has highlighted the need for philanthropic support for vulnerable communities and has spurred a surge in giving.


Philanthropy and Impact Investing Landscape Overview


Financial Inclusion is the largest category in the Philanthropy and Impact Investing Ecosystem, comprising 40% of all companies. The second and the third biggest types are Sustainable Development and Nature and Climate Protection, with a share of 19% and 12%, respectively.


Majority of the ecosystem companies (58%) are based in the North America region with the US as a leading country. Asia and Pacific is the second biggest region accounting for 13% from the total number of companies. Europe has the third place with 13%.


Subsector and Regional Distribution of Philanthropic Companies in 2023


As of April 2023, the total funding of Philanthropy companies reached $150B globally. Being the largest category by the number of companies, Financial Inclusion is also leading by the total funding amount, which is reaching almost $50B.


Total Funding Amount of Companies by Subsector


North America is the undisputed leader by funding, with total value at $102.5B. With nearly equal number of companies in Europe and Asia & Pacific regions, funding in Europe is almost four times larger.


Total Funding Amount by Region and Number of Companies


As a global investment hub, North America is extremely active in financing companies from Philanthropy and Impact Investing Ecosystem, with a share of 52.1% in total number of investors, including powerful accelerators like Y Combinator, Techstars, MassChallenge, 500 Startups, SOSV, and others. The Asia & Pacific region is the second largest by investors quantity with 17.8%, including IDG Capital, ZhenFund, and Sequoia Capital India. European investment organisations comprise 17.3%, including EAS’ME and Venture Kick. Venture Capital firms dominate in investors’ structure by type with a share of 53%.


Distribution of Investors by Region, 2023


There are huge opportunities for philanthropic organisations in the digital future, and they will also play an important role in managing and ensuring the equity of the digital transition.


Opportunities:

  • Digitise the donor, service user, and volunteer experience

  • Use data to measure impact, deepen engagement, and improve transparency

  • Active in growing digital literacy.


Challenges and Solutions:

  • A lack of awareness of new technology benefits - Data specialist consultancies can help implement strategic change

  • A lack of skilled staff - Corporates can provide in-kind donations of time and skills

  • Programmatic funding limits operational investments, including technology - Extend time horizons for impact measurements to include technological benefits.


Deep Knowledge Philanthropy is Focusing on Following Key Activities:


Charity Analysis

Delivering deep analysis and social-impact benchmarking of charitable organisations, which allows founders, charity leaders, trustees, grant-makers, philanthropists and others to derive tangible insights on where to focus their money and time to achieve maximum human impact.


Data Driven Research

Advanced data driven analytics repurposed from next-generation financial projects to the non-profit and charity sector, backed by AI, big-data analytics and advanced visualisation tools.


Big Data Aggregation and Advanced Visualisation

Automatised data parsing, aggregation, optimisation, machine learning and deterministic scoring algorithms, charities and donations smart-matching.


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