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| FEELING GENEROUS
The current state of philanthropy in America. January 1, 1998 |
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Questions asked
in this forum:
Are Americans now more concerned with humanitarian and social philanthropy than ever before? Does America's generosity derive from some national benevolence or is it representative of a failure by our government to provide a social safety net for the underprivileged? With respect to Mr. Soros' and Mr. Turner's philanthropic undertakings, do you believe that there is a danger with such large scale donations? With all the attention given to Soros and Turner, it seems to me that the "little man", the average American, has been grossly overlooked. Has not the average American also been giving more? What do you believe can explain the recent upturn in philanthropic donations? New wealth? New spirituality? Shirley Marcus of Delray Beach, FL, asks: With respect to Mr. Soros' and Mr. Turner's philanthropic undertakings, do you believe that there is a danger with such large scale donations, especially ones that have such strong political and social implications?
The Independent Sector responds:
Whenever individuals participate in charitable causes--whether famous or not--they often bring personal goals as well. One of the main reasons people give or volunteer is that they believe they are making a difference. There is always a risk--no doubt an increased one when a gift is very large--that the personal goals of the donor may overwhelm the mission of the charitable organization. However, with proper governance by the board of trustees this risk can be minimized so that the nonprofit organization can make best use of the gifts and talents of donors no matter how famous or wealthy. Donors of gifts of any size may designate areas they want their gift to be used for, and ethical nonprofit organizations will only accept gifts when this designation fits into the organization's mission.Several organizations have been established specifically to teach nonprofit boards how to govern effectively and follow high standards of ethics. These groups include the National Center for Nonprofit Boards (www.ncnb.org), the National Charities Information Bureau (www.give.org), and the Philanthropic Advisory Service of the Better Business Bureaus (www.bbb.org). Some standards of effective governance include a diversified, impartial board of directors; avoidance of any conflict of interest; consensus voting; a consistent focus on the organization's mission; and full disclosure of financial statements and use of funds.
Kathleen D. McCarthy, Director of the Center for the Study of Philanthropy, responds:
When John D. Rockefeller sought a national charter for his newly-created Rockefeller Foundation during the 1910s, howls of protest arose on all sides. Critics argued that the foundation would constitute an unregulated pot of money, whose assets would grow to such magnitude that they would ultimately empower Rockefeller to control the nation's pulpits, its universities, and the press. Needless to say, these predictions failed to materialize.
The point here is that, like Rockefeller, Turner and Soros represent a new kind of large scale giving. Rockefeller was one of the architects of the modern corporation, and the possessor of one of the country's earliest multi-million dollar industrial fortunes. For many, he was the icon of both the promise and the perils of his age. Rockefeller used his money to create one of the country's first modern foundations, applying business principles to his philanthropic giving. Because this was a new institutional form, it struck many observers as ominous and threatening. Similarly, Soros and Turner represent some of the country's largest post-industrial fortunes, men who are seeking to apply their enormous wealth to the development of new forms of transnational governance. Soros, for example, is helping to strengthen networks of civil society organizations throughout Eastern Europe as a hedge against the return to authoritarianism. Turner is looking for ways to make a very cumbersome international body more efficient — work that will also incorporate civil society organizations more fully into the process of governance. Because these are new applications of great wealth, they may appear threatening. But on the other hand, by bringing more voices into the process of governance, by helping to strengthen the work of nonprofit organizations around the world, it could also be argued that they may ultimately contribute to more representative forms of democracy in an increasingly global society.
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