Unlocking the innovation potential of philanthropic foundations

The value of philanthropic foundations' contribution to society has been discussed for 20 years. One important aspect of foundations' value is their ability to catalyse and support social innovation. Foundations are often immune from the external pressures that cause businesses or even government to innovate. Innovation includes inputs, processes, outputs and outcomes. Innovation occurs internally through innovative practice, processes and investment in innovation capability and externally through the support of innovative grantmaking, initiatives and investing. This study developed an innovation index and examined 29 organisational attributes of foundations to identify those that influence a foundation to embrace innovation.