Written by Meaghan Burkett. Originally posted in LinkedIn.

Philanthropy has long been a powerful force for addressing critical issues like poverty, education, inequality and sustainability. One of philanthropy’s greatest strengths lies in its ability to mobilise capital—directing it towards those in need. With this strong capital foundation, philanthropy drives positive, far-reaching impacts.

Yet, many communities face persistent capital challenges. They tell us they lack accessible finance and the assets needed to support their development. They have become financially dependent with power and wealth often controlled outside of their communities. We’ve learned that many places approach their capital needs (financial and asset based) on a project by project, issue by issue, grant by grant basis. This approach often leaves communities with a diverse range of critical capital needs and leaders eager to make a difference but lacking a capital foundation that effectively serves them.

What we’ve learned is that communities need a more holistic approach to capital – focusing on building a capital foundation that serves their place and empowers their people. From this foundation, communities then possess the capital system they need to address their own problems and can partner with external actors when it truly adds value for both parties.

This is where Place-Based Capital comes in. Place Based Capital is a model and movement aimed at creating local capital systems that are grounded in place, focused on people, and driven by local ownership, control, inclusion and equity.

Place Based Capital provides communities and their partners with a powerful tool to address pressing challenges: rising living costs, housing shortages, stagnant incomes, infrastructure gaps, the transition to sustainable economies, and social inequality. It enhances capital self-reliance and fosters equitable prosperity, helping communities become more resilient and independent.

Philanthropy’s unique ability to seed and grow capital solutions within these local systems means it can empower communities to address their own challenges in sustainable, scalable ways. If philanthropy takes a place based capital approach, it can leave a legacy by building the capital foundation communities need to thrive independently.

We are seeking philanthropic organisations ready to help communities build these strong capital systems—organisations committed to shifting communities from capital dependency to capital empowerment.

You might like to do this through your existing strategy and impact areas, or you may be inspired to make it a dedicated impact area.

If this resonates with you, we’d love to talk.

For more information contact myself on 0407 024 036 or [email protected]