Over the past several decades large philanthropies have adopted aggressive approaches to education reform that scholars have labeled "venture philanthropy." These efforts focused on broad changes to schooling and education policy, borrowing techniques from the venture capital world. But many foundations have recently become convinced that market forces and macro-level policymaking alone cannot drive educational improvement, particularly in areas related to classroom teaching and learning. In response, foundations have begun to design their own instructional innovations and identify providers to implement them. This paper interprets these recent efforts as early evidence of a distinct adaptation in the evolving role of philanthropies, which we dub design philanthropy. Although this approach represents an attempt by foundations to simultaneously increase democratic engagement, directly influence the instructional core, and spur educational innovation, it poses new risks for coherence, scalability, and sustainability in education policymaking.