Interview: HH Princess Nouf bint Muhammad bin Abdullah Al Saud, CEO, King Khalid Foundation, on how strategic capital and innovative funding models can strengthen the non-profit sector
How should philanthropic capital evolve until 2030 to help the non-profit sector advance towards Vision 2030 targets, and in which areas?
HH PRINCESS NOUF BINT MUHAMMAD BIN ABDULLAH AL SAUD: The sector has grown faster than expected – and exceeds 3% of GDP with far more visibility. For philanthropic capital to keep supporting that momentum, it needs to be treated as capital like any other. People sometimes think it stretches all on its own, but it needs structure, discipline and clear expectations. To be impactful, the funding mix must become more institutional and catalytic. Too much of the endowment base is still in illiquid real estate – shifting towards a more diversified and liquid portfolio is essential.
Additionally, we need more patient investment going into the non-profit ecosystem itself – supporting early-stage organisations, research and scaling – so promising ideas actually have the time to mature. The sectors that deserve greater focus are those that are most effectively driving change to rigid systems. The care economy, community development, environmental resilience and the broader green economy remain relatively underserved, despite their potential for long-term social and economic returns.
Where can endowment-style funding have the most long-term impact, and which governance or investment approaches best support these priorities?
PRINCESS NOUF: Endowment-style funding can be extremely powerful when structured properly. Today many portfolios are still heavily concentrated in real estate. Diversifying across asset classes and improving liquidity would give endowments the flexibility to respond to changing needs and support development work more effectively. Good governance is equally important. Transparency, independent oversight and clear allocation of rules reduce waste and streamline collaboration. When expectations are clear, outcomes are easier to track. Impact measurement must also be practical. In the social sector, you cannot always wait years for a perfect evaluation. We need more dynamic tools that show progress without delaying decisions.
In what ways can philanthropy adapt outreach models to harness the surge in small-scale digital giving?
PRINCESS NOUF: Small-scale digital giving has reshaped the philanthropy landscape. More than SR5bn ($1.3bn) came through digital platforms in 2024, and most contributions were less than SR100 ($26.67). We have always believed that small, consistent giving is more powerful over time than a single large gift – and now the numbers show that. To harness this, outreach models must cut through the noise by telling real stories, making the work tangible and giving clear updates. Donors feel more confident when they see quick results, which naturally draws attention towards short-term, charity-style interventions.
Which sectors offer strong potential for combining philanthropy with social enterprise models, and what obstacles must be addressed?
PRINCESS NOUF: Several sectors are naturally suited to blended approaches. The care economy is a strong example, where social value and sustainable models align well. The green economy is another major opportunity – climate and environmental issues are still underserved, even though their long-term impact is enormous. Vocational training and parts of the digital economy also offer potential, particularly around access and financial inclusion.
Private investment is already entering these areas, but a larger portion of it needs to connect with the social sector, which often acts as the implementing partner or co-designer. The most significant obstacles are structural: frameworks are not yet fit for hybrid models. Impact-investment vehicles are still limited and patient capital is scarce. Furthermore, too often we see that partnerships are driven by short-term public relations rather than long-term development goals.
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