A Defining Moment in American Philanthropy
Part 4 of 4
The prominence of religion in American philanthropy and the aggressive
tactics of the Christian Coalition bring an often Puritanical tone to current
debates. Abortion is used as a galvanizing issue; "family values"
rhetoric joins with occasional pronouncements that the United States is a
"Christian nation" and the more recent inflammatory claims that it is
also English-speaking. It is perhaps unavoidable that religion of the Right in
the 1990s adds strong ethnocentric tension as the religion of the Left brought
to civil rights thirty years earlier. The problematic role of religion in both
politics and philanthropy may be the most volatile factor facing any future
Filer commission.
Philanthropy is not all about ominous signals and trends, tensions, dogmation
of Left and Right. The broad sweep of American philanthropy and most of its
energy is devoted to its traditional agenda.
What has happened over the past two decades is that awareness of the scope
and importance of philanthropy has led to systematic efforts to improve it.
First, by bringing to it the disciplines and practices of modern organization
and management. Second, by making it a "subject" in the world of
knowledge, research, and education. Third, by making the work of philanthropy
more open and accountable.
One pressure, as old as the work of charity organizations that began more
than a century ago, is to increase efficiency--in raising money, in allocating
funds, in delivering services. Because voluntary associations are usually
governed by volunteers, and because many of those volunteers are drawn from the
world of business, business practices have been increasingly brought to bear on
nonprofit management.
The American public is largely unaware of the business dimension of
philanthropy. The largest source of income for philanthropy is neither voluntary
giving nor government grants but earned income from fees for services.
Fully half of nonprofit income is from for-profit-like activity; the important
consideration is not where the money comes from but what is done with it.
Nonprofit organizations cannot distribute their surplus income to
"owners" or "shareholders" (the so-called
"nondistribution constraint").
Whenever government support diminishes or giving declines or fails to rise
rapidly enough to meet increasing need, voluntary associations become
increasingly entrepreneurial. Some become so entrepreneurial, in fact, that
business values creep in along with business practices. The threat
then becomes that the focus of mission will shift from those saved outside the
organization to those who work within it. Despite these lapses--and they are on
the rise--American philanthropy is better managed, more accountable, and more
trustworthy than it was twenty years ago.
The second advance has been the surprisingly successful effort to bring the
study of philanthropy, both its values and its practices, into the world of the
university as a "real" subject. The Center on Philanthropy at Indiana
University with which I have been associated for eight years is the largest and
most comprehensive of about forty academic centers on American campuses. our
work enlists scholars and students across the university, linking the study of
philanthropy to the study of history, literature, medicine, philosophy,
economics, law, social work, education, nursing, and other fields. Our Center
has more than forty faculty members, each of whom shares a commitment to the
study of philanthropy and to an established discipline or profession. Students
are enrolled in a dozen new degree and joint-degree programs. In addition, more
than a thousand "practitioners" take intensive training each year in
the courses of The Fund Raising School. We publish books and journals, conduct
research, sponsor research by others at other institutions. our work reaches as
far as Thailand, South Africa, and the former Yugoslavia. Such an ambitious
program would have been beyond the imagination of the Filer Commission of 1975.
More important than education and training, however, are the new connections
philanthropy brings to re-engage the university in the life of the larger
community. That relationship is bound to result in conceptual development as
well as new knowledge; it is also certain to encourage more rigorous critique
and evaluation; openness and accountability continue to grow and develop.
There is a fourth factor that enhances the importance of philanthropy for any
future Filer Commission. Philanthropic institutions continue to command higher
levels of trust and confidence than other institutions. It is clear that
philanthropic purposes encourage trust; people want to believe that philanthropy
is not only trustworthy but effective.
The future role or roles of philanthropy, then, confronting a new Commission
on Private Philanthropy and Public Needs, will include some of the following:
(1) A continuing commitment to the ancient and honored practice of bringing
compassionate assistance to those who are suffering. However, I would not
predict more than marginal increases in giving and service for the poor and
vulnerable.
(2) Maintenance and strengthening of existing social and cultural
institutions. Much of American philanthropy is already committed to past
philanthropic innovations and establishments. The claims of maintenance greatly
reduce the disposable resources for new initiatives or changed priorities.
(3) Advocacy and reform will generate most of the heat, provide little of the
light, and absorb less of the money. If anything, there will be a crowding-out
phenomenon that will shorten the reform agenda. Moral and cultural issues,
however, will dominate the media.
(4) There will be a turbulent decade followed by a settling toward the
middle, redefining again, but gradually the balance among self-help, mutual aid,
government assistance, and philanthropy.
(5) The two most ominous signs, both arising within voluntary action for the
(perceived) public good, are the unraveling of shared understandings of what
"civil society" might mean; and the rise of faction, especially fueled
by ethnic fear and hostility. As James Madison defined it two hundred years ago:
"By a faction I understand a number of citizens, whether amounting to a
majority or minority of the whole, who are united and actuated by some common
impulse of passion, or of interest, adverse to the rights of other citizens, or
to the permanent and aggregate interests of the community."
(6) The big financial news, reported first several years ago, is that the
United States faces an extraordinary inter-generational transfer of wealth over
the next two decades. Estimates range as high as $10 trillion (about as
meaningful a number to most of us as those tossed about by astrophysicist). The
transfer is seen as an opportunity for philanthropy on a scale rivaling the
ambitious of the generation of John D. Rockefeller and Andrew Carnegie a century
ago. New fortunes based on new technologies and new industries mean that
first-generation billionaires must think as hard and creatively about
distributing their fortunes as they did in amassing their wealth in the first
place.
The very size of these fortunes may boomerang, of course; it is conceivable
that political initiatives through tax policy may again more widely redistribute
wealth, seen as more concentrated than it has been for decades. Philanthropic
unresponsiveness or insensitivity may encourage a shift toward increased taxes
on the wealthy (especially estate taxes, following Andrew Carnegie's candid
opinion in "The Gospel of Wealth").
Philanthropy, despite some critics, has been a seedbed of innovation as well
as a culture of reform. Foundations, corporations, and nonprofit organizations
are far more open and accessible than a decade ago. Minorities of great variety
now have a voice almost denied them by the Filer Commission. Some of the most
interesting and promising innovations are in problem-solving and exploitation of
the many possibilities of the "mixed economy"--philanthropy working with
government and the marketplace.
The long, slow, and epoch-making progress of the values of philanthropy in
education is now underway. Service to others will be taught to small children,
bringing them an indispensable opportunity for self-esteem development as well
as a closer involvement in community. children who develop self-esteem through
service to others also learn better. From a global, long-range perspective, the
education of children in voluntary service may be the next generation's greatest
contribution to making the world better.
Finally, philanthropy is about hope. Hope is as important to us as air and
water. Hope gives us the possibility of converting our values into action. Hope
is often the only effective corrective of cynicism and despair in difficult
times. The act of giving service to others is an act of hope for them, for
ourselves, and for unknown others whom we will never know. |