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Institute for Regenerative Systems Architecture^™IRSA^™Catalysing systems designed for renewal

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Catalysing systems designed for renewal.

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Academic Concepts

How Can Philanthropy Have Lasting Impact?

Definition

Traditional philanthropy's impact diminishes over time because capital is consumed rather than cycled. Lasting impact requires capital architecture that compounds—where each deployment strengthens the system's capacity for future impact. This is the core insight of regenerative capital theory.

Example

A $1M grant creates one-time impact. The same $1M structured as PSC with 80% recycling creates 5x cumulative impact over multiple cycles, and the capital persists indefinitely. See: Regenerative Capital Theory, Perpetual Social Capital.

Source

See: Regenerative Capital Theory, Perpetual Social Capital

Related Terms from Academic Concepts

Principal-Agent Problem

Institutional Decay

Collective Action Problem

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