March 3, 2007 | Read Time: 1 minute
Small charities might lose out as “prize philanthropy” proliferates, writes Lucy Bernholz, president of Blueprint Research & Design, a consulting firm that works with foundations and wealthy donors.
Ms. Bernholz, who writes the blog Philanthropy 2173,
notes that the X Prize Foundation. is set to announce today that it will offer 10 prizes to people who devise solutions to an array of social causes.
In promoting the prizes, the X Prize Foundation says that charities might do better applying for prizes than seeking grants.
But Ms. Bernholz says that formula doesn’t work for everyone.
“There may be some problems with that math when it comes to feeding the hungry,” she writes. “Prizes are great — they do send the message that the question is ‘when’ a solution will be found, not ‘if.’ But only those who can afford the upfront costs of participation can, in fact, participate. The prize structure effectively eliminates the poor from proposing solutions to their own problems. How about a prize to solve the prize problem?”
For more about the X Prize Foundation, read The Chronicle of Philanthropy’s profile of the organization’s new leader.
What do you think about “prize philanthropy”?
Discuss your thoughts on this topic by clicking on the comment link just below this posting.
