P hilanthropy as a Social Change Agent The Past, Present, and Future

I nstitutional Philanthropy

What is Institutional Philanthropy? An area of charitable giving by nongovernmental institutions An area of charitable giving by nongovernmental institutions Financial assets are managed, monitored, and stewarded by trustees or directors for a public purpose. Financial assets are managed, monitored, and stewarded by trustees or directors for a public purpose.

Earliest Forms of Philanthropy Egyptian, Greek, and Roman societies Egyptian, Greek, and Roman societies Endowments were created to sustain the essential social institutions of the time Endowments were created to sustain the essential social institutions of the time General Purposes General Purposes Religious Religious Educational Educational Social purposes Social purposes

P hilanthropy in the United States

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

Development of US Foundations Five main periods define the development of foundations in the United States: Five main periods define the development of foundations in the United States: The governments 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 The creation of several large, general purpose foundations characterized the second major time period of institutional philanthropy 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 Foundations Five main periods define the development of foundations in the United States (cont) : Five main periods define the development of foundations in the United States (cont) : Fourth, foundations experienced more regulatory enforcement and reporting requirements between the 1940s and 1970s 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.

T he Channels of Philanthropy Foundations Corporations Federations Gift funds

1. US Foundations By the end of 2005 By 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 Corporations Giving from corporations Giving from corporations Includes both foundation direct corporate giving Includes both foundation direct corporate giving Totaled $12 billion in 2004 Totaled $12 billion in 2004

3. 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 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.

I nteresting Read! Civil Society in Comparative Perspective Civil Society in Comparative Perspective Lester M. Salamon, Helmut K. Anheier, and Associates

Philanthropy: Tradition or Revolution? Global Associational Revolution Global Associational Revolution characterizes the widespread growth, proliferation, and activity of nonprofit organizations. characterizes the widespread growth, proliferation, and activity of nonprofit organizations. Nonprofit Sector Nonprofit Sector Totaling $1.1 trillion dollars Totaling $1.1 trillion dollars Employs 19 million full-time workers Employs 19 million full-time workers Placed eighth in the context of the world economy (ahead of the economies of Brazil, Russia, Canada, and Spain), and employs more individuals that the largest private firms. Placed eighth in the context of the world economy (ahead of the economies of Brazil, Russia, Canada, and Spain), and employs more individuals that the largest private firms.

Findings The nonprofit sector is larger in more developed countries The nonprofit sector is larger in more developed countries The US no longer has the worlds largest nonprofit sector. The US no longer has the worlds largest nonprofit sector. Countries including the Netherlands, Ireland, Belgium, and Israel (all developed countries), have larger sectors measured as a portion of total employment than does the United States. Countries including the Netherlands, Ireland, Belgium, and Israel (all developed countries), have larger sectors measured as a portion of total employment than does the United States.

Findings In countries including Germany, the Netherlands, Belgium, Austria, and Spain, the nonprofit sector is the first to react to and address societal challenges. In countries including Germany, the Netherlands, Belgium, Austria, and Spain, the nonprofit sector is the first to react to and address societal challenges. In these countries, religion has had a strong influence on social services and systems, promoting them as areas of focus for nonprofit organizations. In these countries, religion has had a strong influence on social services and systems, promoting them as areas of focus for nonprofit organizations.

P hilanthropy & 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? The impact of the nonprofit sector on: The world economy The world economy Employment base Employment base Its contributions to social stability Its contributions to social stability

Foundations 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 Foundations Charles Stewart Mott Foundation

N ew Opportunities in Philanthropy

Intergenerational transfers of wealth Intergenerational transfers of wealth High-engagement philanthropy High-engagement philanthropy Donor collaboration and interaction Donor collaboration and interaction Collaborative funding Collaborative funding

New Opportunities in Philanthropy Professional support Professional support Family philanthropy Family philanthropy Public Support Tests Public Support Tests Community Indicator Projects Community Indicator Projects Policy Reform Policy Reform

D iscussion