A strategic time horizon in philanthropy is, quite simply, the length of time over which a donor or foundation seeks to engage in philanthropic giving. The selected horizon can be in perpetuity—meaning there is no envisioned end date—or it can be time limited, defined by a predetermined end date or a triggering event. Time-limited philanthropy can also be referred to as “limited life,” “spend down,” “spend out,” “time bound,” “giving while living,” or “sunsetting.”

While some approaches may be more common among categories of funders or certain issue areas, there is no one preferred or superior approach to strategic time horizons. Any time horizon can be effective when implemented as a result of thorough and thoughtful strategic planning.

The Importance of Considering Philanthropic Time Horizons

Many donors intentionally focus on their philanthropy’s time horizon only after they have been giving for some years. Perhaps they created a private foundation because endowing in perpetuity was not only the norm, but the default way to set things up. Perhaps they are reconsidering their positions after learning about other respected philanthropists such as Chuck Feeney of The Atlantic Philanthropies, and prefer to spend their endowment on the problems of today, rather than “pretend that we can deal with the problems of future generations.” Perhaps they are simply undecided. What is certain is that, recently, both new and experienced donors have become far more thoughtful about the time frame of their giving. And for many, setting an end date for philanthropy has become a core consideration and a way of achieving concentrated, outsized impact in the face of today’s many urgent and escalating challenges.

Recognizing and determining an organization’s strategic time horizons significantly impacts the ability to develop a governance structure, decision-making processes, risk tolerance, organizational culture, allocation of resources, and overall methodology. A well-defined strategic time horizon enables organizations to maintain coherence between their short-term actions and long-term aspirations, and home in on the impact they seek to achieve. Establishing a strategic time horizon necessitates a thorough assessment of the organization’s mission, values, and objectives to ensure alignment.

The establishment of a clear, intentional strategic time horizon—whether time limited or in perpetuity—allows philanthropies to adapt and respond more effectively to external changes and challenges. This responsiveness is crucial for achieving and sustaining impact over time, which is particularly important at a time when the general public and frontline communities are looking for effective solutions to pressing issues, not quick Band-Aid fixes.

Read the full PDF from Rockefeller Philanthropy Advisors.