McKinsey & Company’s recent report on prize philanthropy is a useful overview of the field. Titled “And the winner is . . .capturing the promise of philanthropic prizes”, the report is available here. Kudos to McKinsey for conducting a broad scan of an important philanthropic tool, and to the John Templeton Foundation for initiating the idea, sponsoring the work and sharing it with the field.
Why is this report useful? It puts prizes in historical perspective and explores the reasons for the recent increase in their use. It combines a review of the scholarly literature with insights gleaned from the leading practitioners in the field. And it develops a set of categories that go beyond the useful, but limited, distinction between recognition prizes and inducement (or incentive) prizes. The report’s six prize archetypes point to important traits that anyone considering using prizes should carefully review.
I was particularly interested in this report because RWJF, and the Pioneer Portfolio in particular, has worked with many of the organizations featured in the report. We have worked with Changemakers on a number of competitions, and are continuing to do so. We worked with Hope Lab on the Ruckus Nation competition and with Idea Crossing on its Innovation Challenge for MBA students around the world. And we worked with the X Prize Foundation in its efforts to develop a health prize. These experiences influenced my thinking as I read the report, and prompt two suggestions for future work on prize philanthropy.
The first is to work towards a clearer sense of the boundaries of this field. Prize philanthropy, when viewed broadly (as this report did), covers a huge territory. This makes it difficult to distinguish from a whole host of other strategic (goal-oriented) philanthropic approaches. For example, the report lists four important lessons about how to create and deliver effective prizes (p. 35), but none of these lessons is unique to prize philanthropy; they apply to any type of strategic philanthropic activity.