PPhilanthropyhilanthropy as a as a

Social Change AgentSocial Change Agent

The Past, Present, and FutureThe Past, Present, and Future

IInstitutional nstitutional PhilanthropyPhilanthropy

What is Institutional Philanthropy?

An area of charitable giving by An area of charitable giving by nongovernmental institutionsnongovernmental institutions

Financial assets are managed, monitored, and Financial assets are managed, monitored, and stewarded by trustees or directors for a public stewarded by trustees or directors for a public purpose. purpose.

Earliest Forms of PhilanthropyEarliest Forms of Philanthropy

Egyptian, Greek, and Roman societies Egyptian, Greek, and Roman societies

Endowments were created to sustain the Endowments were created to sustain the essential social institutions of the timeessential social institutions of the time

General PurposesGeneral Purposes ReligiousReligious EducationalEducational Social purposesSocial purposes

PPhilanthropy in thehilanthropy in theUnited StatesUnited States

Development of US FoundationsDevelopment of US Foundations

Institutional philanthropy rose out of the need Institutional philanthropy rose out of the need to:to: Create a framework to fund educationCreate a framework to fund education Create resources for the impoverishedCreate resources for the impoverished Perform works for the public goodPerform works for the public good Create solutions for other societal challenges. Create solutions for other societal challenges.

Development of US FoundationsDevelopment of US Foundations Five main periods define the development of foundations in the United Five main periods define the development of foundations in the United

States:States:

1. The government’s granting of a federal charter to the Rockefeller Foundation and the Carnegie Corporation in 1910 and 1911, respectively, marked the initial era of foundation work. 

2. The creation of several large, general purpose foundations characterized the second major time period of institutional philanthropy. 

3. Third, foundations began to re-direct their work in response to the decade-long economic crises and World War II in the early 1930s and mid-1940s. 

Development of US FoundationsDevelopment of US Foundations Five main periods define the development of foundations in the United Five main periods define the development of foundations in the United

States (con’t) :States (con’t) :

4. Fourth, foundations experienced more regulatory enforcement and reporting requirements between the 1940s and 1970s. 

5. Lastly and most recently, the fifth period is characterized by shrinking resources for foundations, greater concern for measurable outcomes, loss of faith in governmental initiatives, and a greater willingness to devolve resources and responsibility to states and localities. 

TThe Channels he Channels

of Philanthropyof Philanthropy

1. Foundations

2. Corporations

3. Federations

4. Gift funds

1. US Foundations1. US Foundations

By the end of 2005By the end of 2005

More than 68,000 grant-making foundations exist in the United States

These foundations gave approximately $33.6 billion, which was recorded that as the second year of modest growth in foundation giving. 

2. US Corporations2. US Corporations

Giving from corporationsGiving from corporations

Includes both foundation direct Includes both foundation direct corporate givingcorporate giving

Totaled $12 billion in 2004Totaled $12 billion in 2004

3. US Giving Federations3. US Giving Federations

Federations - entities appointed to coordinate appeals to support a specific initiative

United Way American Cancer Society American Red Cross March of Dimes

Typically, Americans give between 5-10% of their charitable contributions through federations.

4. US Gift Funds4. US Gift Funds

Gift funds, the most recent form of institutional philanthropy, provide donors the opportunity to receive an immediate tax deduction by depositing money in an account for philanthropic contributions. 

IInteresting Read!nteresting Read!

Civil Society in Comparative PerspectiveCivil Society in Comparative Perspective

Lester M. Salamon, Helmut K. Anheier, and Lester M. Salamon, Helmut K. Anheier, and AssociatesAssociates

Philanthropy: Tradition or Revolution?Philanthropy: Tradition or Revolution?

““Global Associational Revolution” Global Associational Revolution” characterizes the widespread growth, proliferation, characterizes the widespread growth, proliferation,

and activity of nonprofit organizations.and activity of nonprofit organizations. Nonprofit SectorNonprofit Sector

Totaling $1.1 trillion dollarsTotaling $1.1 trillion dollars Employs 19 million full-time workersEmploys 19 million full-time workers Placed eighth in the context of the world economy Placed eighth in the context of the world economy

(ahead of the economies of Brazil, Russia, Canada, (ahead of the economies of Brazil, Russia, Canada, and Spain), and employs more individuals that the and Spain), and employs more individuals that the largest private firms. largest private firms.

FindingsFindings

The nonprofit sector is larger in more The nonprofit sector is larger in more developed countriesdeveloped countries

The US no longer has the world’s largest The US no longer has the world’s largest nonprofit sector. nonprofit sector.

Countries including the Netherlands, Ireland, Countries including the Netherlands, Ireland, Belgium, and Israel (all developed countries), Belgium, and Israel (all developed countries), have larger sectors measured as a portion of have larger sectors measured as a portion of total employment than does the United States. total employment than does the United States.

FindingsFindings

In countries including Germany, the In countries including Germany, the Netherlands, Belgium, Austria, and Spain, the Netherlands, Belgium, Austria, and Spain, the nonprofit sector is the first to react to and nonprofit sector is the first to react to and address societal challenges. address societal challenges.

In these countries, religion has had a strong In these countries, religion has had a strong influence on social services and systems, influence on social services and systems, promoting them as areas of focus for nonprofit promoting them as areas of focus for nonprofit organizations.organizations.

PPhilanthropy hilanthropy

& & Civil SocietyCivil Society

Philanthropy & Civil SocietyPhilanthropy & Civil Society What is Civil Society, and what is the role of

Philanthropy in it? Organizations, institutions, conglomerates, federations, and

other entities that form the nonprofit sector Number, scale, and growth patterns of nonprofit

organizations “Crisis of the state”

Devolution Societal issues and challenges left largely unaddressed by

state entities

Why care about Civil Society?Why care about Civil Society?

The impact of the nonprofit sector on: The world economyThe world economy Employment baseEmployment base Its contributions to social stabilityIts contributions to social stability

Foundations and Civil SocietyFoundations and Civil Society As some communities are building civil society within the various sectors,

foundations are recognized as the convener and initiator of various programs.

Challenges that were historically in the realm of other sectors are now a part of the work that the nonprofit community has assumed.

Foundations demonstrate democratic decision-making, and they can establish a structure in which the “business sector, local government, the people, and NGOs can work together

One of the main purposes of foundations is to “provide a leadership role within a specific geographic area to help solve community problems and address local issues

Sowing the Seeds of Local Philanthropy: Two Decades in the Field of Community FoundationsCharles Stewart Mott Foundation

NNew Opportunities ew Opportunities

in Philanthropyin Philanthropy

New Opportunities in PhilanthropyNew Opportunities in Philanthropy

Intergenerational transfers of wealth Intergenerational transfers of wealth

High-engagement philanthropyHigh-engagement philanthropy

Donor collaboration and interactionDonor collaboration and interaction

Collaborative fundingCollaborative funding

New Opportunities in PhilanthropyNew Opportunities in Philanthropy

Professional supportProfessional support

Family philanthropyFamily philanthropy

Public Support TestsPublic Support Tests

Community Indicator ProjectsCommunity Indicator Projects

Policy ReformPolicy Reform

DDiscussioniscussion