Enormous resources are poured into “social investment” these days. The definition of the term isn’t always clear, but the idea is utilizing the power of the economic system to improve the lives of the poor and the marginalized.
One significant difference between “social investment” and simply “investment” is the motivation. Social investors focus on changing people’s lives. Pure economic investment focuses on earning a profit. There is an overlap in those two objectives, and social investment is experimenting to find the right balance.
There is also a difference between “social investment” and “giving”. Giving (or philanthropy, or charity, or any phrase that would fall into this genre) is typically not expecting a financial return on investment.
Naturally, mistakes are made with all attempts to help those in poverty. There is a clash of cultures in any endeavor like this. And sadly, after billions being poured into giving, many don’t see the bang for the buck. We still see massive inequalities.
That’s why folks are attracted to social investment. Proponents of social investment will admit mistakes have been made, but they believe that’s normal for any new endeavor. Overall, they argue, the impact can be huge because it harnesses the power of the free market to make a difference.
Well, maybe. I’m not so convinced of that. More and more foundations are focusing their giving solely on social investment, and I’m not convinced it’s the silver bullet everybody assumes it is.
Giving (or philanthropy, however you wish to define it) has often been compromised because it is done so poorly. There’s a clash of cultures whenever rich meet poor. Add in the national, ethnic, and other cultural difference and you have a recipe for miscommunication. It’s hard work to be a wise philanthropist. And it takes time to learn what is best. Too many people don’t take time to learn.
Done right, I believe that philanthropy can have a positive powerful impact. It just needs to be done wisely. We can’t give up on such a powerful tool to create positive change just because we didn’t do it right in the past.
But there’s another reason not to give up on philanthropy as a source of change.
One thing we can learn from Scripture is that God offers us a gift. In fact, the entire Christian faith is based on that premise. I sincerely doubt if God sat in heaven and pondered what model of investment to make in the human race. A gift was offered, not an investment. Why is that? Why not strike a bargain?
Because that gift from God delighted Him. It was painful and heart wrenching, but it was ultimately victorious and changed the course of human history. God rejoiced in giving.
What can we learn from that when we give? It seems to me that an important part of giving is the transforming impact it can have on the heart of the giver. We tend to avoid that viewpoint because it can sound selfish and narcissistic. And it is when done poorly. But done right, giving can be as much about shaping the heart of the giver as it is transforming the lives of the receiver.
When we give, our hearts are transformed, our minds renewed, and our souls rejoice when we let go of our abundance. We learn to trust in God as we humble ourselves. We learn to identify with others when we give.
As a follower of Jesus, I believe that God’s gift of Christ was for our benefit. But it was also for the glory of God. In the same way, our gift to others is for their benefit. But it is also for our heart, mind and soul.
I’m not sure we get that transaction with social investment. I’m not sure we can measure the metrics or generate the data to substantiate the change in our hearts when we give.
Despite some misgivings, I’m not willing to dismiss social investment. I think a grand experiment is happening on a global scale. It should be interesting to see how groups working in this field evolve in the years ahead.
That said, let’s not lose sight of the power of giving. We may need it as much as those to whom we give.