Impactful philanthropy

By UBS

April 1, 2021

Increasing effectiveness through innovative, evidenced based funding at scale

All philanthropists want their giving to have maximum impact. And not just in the short term. Through our work at UBS Optimus Foundation, we’ve learned that a focus on evidence, scale, and innovative funding is central to impactful philanthropy

We know that current philanthropic funding isn’t enough to solve the world’s social and environmental problems. We need more funding, yes. But critically, we need funding to be driven by evidence of impact.

How should philanthropists choose programs to fund? Evidence of results.

We employ a wide range of methodologies for evidence gathering, from Randomized Controlled Trials (RCTs) to quasi-experimental studies, to participatory approaches to evaluations.

Not all interventions can be tested by the most robust methodologies like RCTs.

Evidence available varies and part of our work involves building evidence through various fit-for-purpose methodologies.

What is scale? Investing in solutions that result in systemic change.

We pursue scaling through a variety of strategic approaches:

• First, effective solutions to social and environmental challenges can be scaled by deployment in different contexts.
• Second, proven solutions undertaken by grassroots NGOs can be adopted and even eventually funded by governments, creating sustainable progress.
• Third, changing policy and social norms is also frequently critical to the successful scaling of impactful interventions.

How do we fund? Using innovative social finance vehicles, we maximize impact, making funding go farther.

UBS Optimus Foundation is active in developing and piloting social finance instruments. Results-based funding often provides greater value for philanthropists and public funders, as impact is financially incentivized. Social finance can also engage private sector capital by paying a financial return alongside achieving social or environmental goals. Social finance is not suitable for all social or environmental programs, but with the right interventions can multiply the impact of philanthropic giving.