What does it mean to be someone committed to the public good? How can people use the resources and wealth they have to help others? Philanthropy is interested in these questions. A philanthropist is someone who uses their wealth to support charitable causes such as anti-poverty initiatives, humanitarian aid, and other development projects. In this article, we\u2019ll discuss the history of philanthropy, its pros and cons, and how anyone – regardless of their class status – can embrace the spirit of philanthropy.<\/p>\n
Philanthropists are typically rich individuals who use their wealth to establish or support charitable causes and institutions like foundations, hospitals, museums, libraries, and more. While the spirit of philanthropy is meant to be selfless, modern philanthropy does face its fair share of criticism. <\/em><\/strong><\/p>\n The word philanthropy comes from the Ancient Greek philanthr\u014dp\u00eda, which translates to \u201clove of humanity.\u201d According to the National Philanthropic Trust<\/a>, many cultures embraced the ideals of philanthropy, including ancient Greece, China, and India. Many religious traditions (Judaism, Christianity, Islam, and Native American spirituality) also taught about the importance of kindness and selflessness. For many centuries, churches and communities were primarily responsible for charity. In the 18th century, however, a new form of giving began to emerge. In 1739, businessman Thomas Coram noticed a high number of abandoned children on London\u2019s streets. He spent the next 17 years calling for a children\u2019s home until King George II finally signed a royal charter that established the Foundling Hospital<\/a>. Many believe this to be the first incorporated charity. Its work continues today through The Coram Foundation.<\/p>\n Philanthropy also has a long history in the United States where it historically included financial giving, as well as volunteering and organizing. Groups would donate money, organize events, and call for social and political progress. Wealthy individuals also became extremely influential in establishing universities, fine arts institutions, hospitals, and more. George Peabody<\/a>, who was born in 1795, is often called \u201cthe father of modern philanthropy.\u201d He was a merchant banker who dedicated his life to giving away as much money as possible. His philanthropic endeavors<\/a> included libraries, museums, and the Peabody Education Fund, which supported education for Southern children following the Civil War. The Peabody Awards are named after him. Peabody\u2019s life served as the model for famous philanthropic billionaires like Andrew Carnegie, Warren Buffett, Bill Gates, and others.<\/p>\n It\u2019s difficult to deny the inherent good of philanthropy when it\u2019s defined as the love of humanity. However, are philanthropists doing good work all the time? Or is there a darker side to their charitable giving? Like all things, philanthropy has its pros and cons. Here are some of the most commonly praised and criticized aspects of philanthropy:<\/p>\n The vast majority of charities don\u2019t receive enough funding. NGOs typically operate with very tight margins and depend on private donations, which can ebb and flow. Wealthy philanthropists can play a crucial role in supporting causes that are struggling to gain donations. Their large financial gifts can lift organizations out of the red and attract media attention, which in turn can attract more donations. This is especially important for causes that are historically underfunded, such as the rights and well-being of girls and women. According to reporting<\/a> from Fast Company, nonprofits focused on girls and women received only 1.6% of all charitable giving between 2012-2015. Philanthropists are in a position to fill in funding gaps and raise awareness of underfunded organizations.<\/p>\n When philanthropists announce their large donations, it can set off a domino effect of giving from other wealthy philanthropists. Research supports this theory of \u201ccontagious\u201d giving. In one 2013 study<\/a>, the amount people gave in an online fundraiser appeared to affect how much others gave after them. In 2010, Bill Gates, Melinda Gates, and Warren Buffet announced the Giving Pledge campaign and began recruiting other wealthy individuals. As of December 2021, 231 people from 28 countries have signed on. If these billionaires and millionaires can fulfill their pledge of giving away most of their wealth and inspire others to do the same, that\u2019s a lot of money that goes to charity.<\/p>\n One of the most serious criticisms of philanthropy is that it allows society\u2019s wealthiest people to call all the shots at the expense of everyone else\u2019s voices. As scholar Rob Reich explained<\/a> in 2018, big philanthropy is \u201can exercise in power\u201d and whenever that power extends to the public, \u201cthe response it deserves is not gratitude but scrutiny.\u201d A post on The Conversation<\/a> provides a specific example of how philanthropic giving weakens democracy without necessarily solving anything. In the 1990s, foundations began focusing on education reform in the United States. Billions of dollars have been poured into the philanthropists\u2019 ideas about school choice, performance-based evaluation, and more. As the article points out, however, most people weren\u2019t asking for philanthropists to swoop in and save them. For all the money devoted to reform, not much has improved, either. This is a tale of well-intentioned, but ill-informed philanthropists without experience in education taking the reins away from the public. When it comes to issues that affect all of society – like education – why should the voices of the wealthy matter the most?<\/p>\n When philanthropy consists of mostly just large donations, it\u2019s like filling in holes in a sinking boat. The boat is still sinking; plugging the holes has perhaps only delayed the inevitable. The real solution – getting the boat back to shore where it can be properly repaired- can only be done through systemic changes to institutions and policies. Many philanthropists ignore the complex political, social, and cultural roots of the causes they focus on, or, as we described above, they prioritize their own ideas about progress. In some cases, wealthy philanthropists are actually contributing to the systemic flaws or causing harm<\/a> in other ways. They\u2019re poking new holes in the ship while simultaneously trying to fill in others.<\/p>\n Today, most people think of philanthropists as the wealthiest people in society giving away lots of money. With this narrow definition, philanthropy quickly becomes muddled with reasonable criticisms about motivation, power, and impact. What if we took philanthropy back to its roots and thought of it through its basic meaning: the love of humanity? With this definition, it doesn\u2019t matter whether you can give $10 to charity or $100 million. Your time becomes just as available as your money, as well. A philanthropist is someone who cares about others and uses the resources they have. Here\u2019s how to embrace philanthropy in your own life:<\/p>\n You can do philanthropic things without a strategy (i.e. giving money to organizations a few times a year), but if you want to make philanthropy more of a habit and identity, it\u2019s a good idea to approach it strategically. That can mean setting up recurring donations to a nonprofit, arranging your schedule so you can volunteer regularly, and encouraging people you know to donate or volunteer with you. A good strategy ensures you don\u2019t get distracted or burned out.<\/p>\n When it comes to giving money and time, you don\u2019t want to feel like you\u2019re wasting either. To feel confident in the causes or organizations you\u2019re considering giving to, research is important. If an organization is a registered nonprofit (in the United States, that makes it a 501(c)(3) organization), it has to make financial reports available to the public. These forms give you a clearer idea of how much money is used for overhead versus programs and campaigns. Research also helps you choose organizations with high levels of trust.<\/p>\n There are millions of charitable organizations working around the world. If you want to invest your time and skills into supporting causes, joining an organization in a paid or unpaid role is a great option. Even if you\u2019re only able to commit to a few hours a week, you\u2019re living in the spirit of philanthropy.<\/p>\n If you see a problem that isn\u2019t getting a lot of attention or funding, consider forming your own group. The group can focus on supporting larger organizations committed to the cause or perform more hands-on work in your community. You may want to keep the group fairly informal and small, or maybe you have ambitions for official legal status. Whatever your hopes are, running a group can be very challenging, so plan carefully and ask advice from other activists and philanthropists if you don\u2019t have a lot of experience.<\/p>\nA short history of philanthropy<\/strong><\/h2>\n
Praise and criticism of philanthropy <\/strong><\/h2>\n
Praise: Philanthropists can support causes that aren\u2019t getting funding elsewhere<\/h3>\n
Praise: Philanthropists can inspire more giving<\/h3>\n
Criticism: Philanthropists can use their wealth to exert control<\/h3>\n
Criticism: Philanthropists don\u2019t fix systemic issues<\/h3>\n
How anyone can be a philanthropist <\/strong><\/h2>\n
Be strategic<\/h3>\n
Research the causes and organizations you care about<\/h3>\n
Consider joining an organization<\/h3>\n
Consider forming your own group<\/h3>\n
Stay open-minded<\/h3>\n