In this article, using multiple illustrative case examples, we demonstrate that philanthropic institutions are in the business of creating public value. In framing the work of philanthropy more broadly to include the process of public value creation, philanthropic institutions and leaders are challenged to be more strategic not only in their mission‐fulfillment grant‐making with nonprofit organizations but also in the way they stimulate and encourage collaboration, create the “third space” necessary to incubate ideas to transform society, and leverage resources to increase the return on their investments toward system‐wide change. The implications for philanthropic actors and institutions suggest that the strategic contributions they make toward creation of public value are those that go beyond transactional performance measures, such as number of dollars spent or clients receiving services, to include ways that their investments are amplified by meaningful partnerships with nonprofit and other organizations, changed behaviors of institutions and individuals, and transformative public policies.