<Narrator> At TowHaul, we value the creativity and hard work that built this country and improves our lives by supporting education towards careers in manufacturing and the trades.

TowHaul, proud sponsor of "Reconnecting Roots" and public television.

Support for "Reconnecting Roots is provided by the following: RPC.

♪ gentle acoustic guitar ♪ "Plain Values," a magazine on a mission to find joy in the simple things.

Muletown Coffee Roasters is all about slowing things down, digging into community, and encouraging good for goodness sake.

Taylor Stitch is responsibly built for the long haul and is proud to partner with brands that inspire hope for a more sustainable future.

Sharing a common passion for music and community in beautiful Paradise Valley, Music Ranch Montana's mission to support musicians and provide a place to enjoy it together is reflected in "Reconnecting Roots."

♪ upbeat music ♪ >> We hope you enjoy the programs we're bringing to you here at the station including the one you're about to watch, "Reconnecting Roots."

<Bill> I know I sure do.

<Leanne> But it wouldn't be possible without the support of donors like you.

<Gabe> And now, please enjoy this episode on philanthropy.

<Leanne> Oh, it's Gabe McCauley, the host of the show.

<Bill> Oh, right.

Big fan, Grabe.

<Gabe> Thank you.

<Leanne> It's Gabe.

<Gabe> Please enjoy.

♪ gentle music ♪ I'm Gabe McCauley.

Join me as we explore the greatness of America.

♪ Beautiful, for spacious skies ♪ ♪ Amber waves of grain ♪ ♪ Purple mountain majesties ♪ ♪ On the fruited plains we're home ♪ ♪ gentle music continues ♪ ♪ ♪ gentle music continues ♪ Tracing the roots of progress from then to now and how, this is "Reconnecting Roots."

<Gabe> It's two profiles of the American dream.

The first, a teenage immigrant who forged his opportunity in steel as the nation industrialized.

The second, a daughter of immigrants who created a fortune in New York City real estate where rents are as the skyline.

Both had reputations as hard driving business people whose exploits were sensationalized in the news, but by the time each one died, one had left a legacy of largesse, having built over 1,600 public libraries across the country and established various organizations designed to promote self-improvement and the fine arts, all equivalent to $300 billion given away.

The second left behind a $12 million inheritance to her dog, Trouble.

♪ quirky music ♪ Both stories speak to the unimaginable wealth to be gained in America, but only one shows the unique American capability that allows individuals to give such large gifts to build up our communities and elevate the whole of society.

♪ upbeat music ♪ While some people really just need a handout to get by, the thing we could all use is a hand up.

♪ upbeat music ♪ Most of us are capable of giving essentials to a neighbor in need with food and clothing, but few of us have the resources on hand to build a public institution everywhere one's needed.

Thankfully, the Americans whose measure of success reaches into the stratosphere donate gifts to society, a system of ladders to help the rest of us ascend to new heights or at least reach a little better.

♪ ♪ compelling music ♪ ♪ Although some of you may recognize it as the house from the TV series "Dynasty" the Filoli Garden and Estate here in Woodside, California was gifted to the community to use and enjoy, which I use to enjoy an interview with Rob Reich who wrote the book on philanthropy.

♪ upbeat string music ♪ <Rob> Well, it's really hard to think of America without philanthropy.

It's so written into our history.

We know things like Carnegie Hall or other buildings that are named after big philanthropists or, of course, the public libraries that Andrew Carnegie helped create, or universities, so many of them created by philanthropists back in that first Gilded Age.

So the university I teach at, Stanford, named after and created by Leland Stanford Jr.

If you take a slightly bigger view of philanthropy, just don't think of it as rich people giving money away.

<Gabe> That's usually how I think of it.

(laughs) <Rob> That's what most people think of it reasonably, but if you go back even further, you know, one of the most famous books about America is "Democracy in America" by this Frenchman.

<Gabe> de Tocqueville.

<Rob> de Tocqueville, exactly.

And he had this great line that he came to the United States as an observer, and he saw that Americans of all stripes were just what he called the nation of joiners.

They didn't look to someone else to solve a problem.

They banded together in groups and tried to do it themselves.

And the idea of trying to use your time, use your money on behalf of a bigger project, something larger than yourself, that's just written into the fabric of America.

<Gabe> Rob Reich is the author of "Just Giving," a critical exploration of the modern machinations of American philanthropy.

Well, what do you think it is about America that allows such largesse?

<Rob> Number one, especially for big philanthropy, the kind of pre-condition for that is you got to have rich people.

To have rich people, you got to have an economy that allows for rich people to be created, and the United States devoted to a vigorous marketplace that has allowed people over the course of history to amass extraordinary fortunes.

<Gabe> We have a lot of freedom and we have a lot of abundance.

<Rob> Yep.

>> So that makes for a really good opportunity for philanthropy.

<Rob> That's right.

That's a good formula for it.

You have to have the liberty to do with your own private resources what you want.

You have to have enough of the private resources, the money, and then this American spirit of wanting to join with others and do things together in order to do some problem solving, that nation of joiners idea.

We are an individualistic nation.

We value the individual's freedom, but the interesting thing is that so many Americans choose to affiliate with others, to associate with others when they have individual liberty.

<Gabe> Yeah, well, let's keep looking at where some of the money goes here.

<Rob> Okay.

(Gabe laughs) ♪ upbeat music ♪ <Leanne> We hope you're enjoying the program so far.

<Bill> I'd say it's quite giving, Leanne.

<Leanne> Ooh, good one.

<Bill> To charity.

<Leanne> Or philanthropy.

<Bill> No?

Really.

What is the difference, Leanne?

♪ upbeat music continues ♪ <Leanne> Charity tends to be geared to specific people in need such as feeding the homeless.

Philanthropy is more long term, focusing on efforts that'll benefit everyone like supporting research for cancer.

<Bill> Ah, give a man a fish he eats for a day, that's charity.

<Leanne> Exactly.

<Bill> Teach a man to solve the problem of over fishing, that's philanthropy.

<Leanne> Not really.

<Bill> Microwave a fish, and you are the most unpopular guy at the office.

♪ <Leanne> Looks like it's time to jump back into the program.

(music transitions) <Gabe> Merry Christmas.

(bell rings) Ho, ho, ho, it's hot out here.

♪ Giving in America isn't just important for those who need to receive help.

It's important for those of us who give too.

We have many reasons to be generous, even selfish ones.

Our lives improve as much as we help our communities to improve.

From charity to philanthropy, the values that compel us to engage in giving have been a part of our national character for many generations.

♪ The early American spirit of philanthropy was popularized by Cotton Mather, a minister who espoused the importance of good works and neighborliness.

His teaching influenced Ben Franklin to start a public subscription library, (man screams) (siren rings) a volunteer fire brigade, (water whooshes) and a charitable hospital.

♪ Alexis de Tocqueville observed the personal sacrifices Americans made to benefit the general welfare.

Along with churches, benevolent societies formed on a local level to give aid to the needy.

♪ After the Civil War, charitable organization societies began to form, not for the purpose of distributing alms to paupers, but to eliminate the root causes of poverty altogether in a movement known as scientific philanthropy.

These groups aimed at unique problems facing the most vulnerable in society.

♪ etheric music ♪ It was during a period of extreme evolution in socioeconomics where science-driven industrialization formed a new class of businessmen, the millionaire.

These men were the stars of their own constellations, earning millions and millions of dollars, but many of them were known for their galactic ruthlessness towards competitors and employees as modern day robber barons.

(static fizzles) Oil, steel, rail, finance.

Robber barons of the Gilded Age acquired obscene amounts of money while courting plenty of controversy in the process, but steal tycoon Andrew Carnegie changed the game when he challenged the wealthiest to give their piles of money away to benefit society unless they be disgraced by dying rich.

♪ Critics mocked it as the gospel of wealth, but Carnegie gained a disciple in John D. Rockefeller Sr.

These two mega donors founded universities and created trust to facilitate their giving, which had become a full-time job.

The goals of this industrial strength philanthropy were to improve education, training, and medicine continuing on to this day.

While Washington DC largely left charitable programs to state and local agencies, Congress adjusted the tax code to encourage giving.

In the early 20th century, a flurry of volunteer organizations sprung forth as philanthropic organizations were made exempt from paying taxes in return for serving the people.

(static fizzles) ♪ gentle orchestral music ♪ <Announcer #1> The impact of this new network was felt around the world during and after World War I as sums in the $2 billion range were gathered yearly.

One year recorded 500 lump sum gifts of $1 million dollars.

♪ ♪ ♪ ♪ ♪ <Announcer #1> The robber barons left in their wake a new class of benevolent societies, a well-funded nonprofit sector.

(static fizzles) (record skips) ♪ Give a little bit ♪ ♪ Give a little bit of your love to me ♪ ♪ "Give a Little Bit" plays ♪ ♪ So give a little bit ♪ ♪ Oh, give a little bit of your time to me ♪ ♪ ♪ See the man with the lonely eyes ♪ ♪ Oh, take his hand, you'll be surprised ♪ ♪ ♪ Oh, take it ♪ ♪ Oh, yeah ♪ ♪ "Give a Little Bit" continues ♪ ♪ Come along ♪ ♪ Yeah, yeah, yeah, yeah ♪ ♪ Yeah, yeah, yeah, yeah, yeah, yeah ♪ ♪ "Give a Little Bit" continues ♪ ♪ ♪ "Give a Little Bit" continues ♪ ♪ Give a little bit ♪ ♪ Give a little bit of your love to me ♪ ♪ ♪ I'll give a little bit ♪ ♪ I'll give a little bit of my life for you ♪ ♪ "Give a Little Bit" continues ♪ ♪ ♪ What a long ride ♪ ♪ Come a long way ♪ ♪ Oh, sing it, tonight ♪ ♪ gentle music ♪ <Gabe> American philanthropy was forever changed by the Great Depression era.

President Herbert Hoover responded to the economic shock by organizing a national campaign to collect $175 million dollars to combat the widespread poverty seizing the country.

Having led the post-war relief efforts, Hoover tried to rekindle American generosity by stating charity is the obligation of the strong to the weak, but the campaign fell short, collecting a meager amount compared to the billions raised after World War I.

(static fizzles) ♪ bright orchestral music ♪ With philanthropic giving no longer viable, it fell to the federal government to establish agencies to assume a responsibility for society's ills.

President Roosevelt's so-called New Deal, a liberal strategy encompassing 1935 Social Security Act providing old age benefits and unemployment insurance put the federal government in the business of charity.

The direct precedent of the 60s Great Society programs under President Johnson now giving away medical services through Medicaid and Medicare further transforming individual charitable giving into involuntary action through tax revenue spending.

Would you agree with that statement?

Fire away.

(static fizzles) As government agencies multiplied and state funding and nonprofits increased, philanthropic organizations had to learn how to navigate this new bureaucratic landscape of giving and receiving.

The relationship between private philanthropy and government only magnified.

The Ford Foundation became the largest private trust after the deaths of Henry and Edsel Ford, funding civil rights initiatives and directly influencing government policy.

It also established National Education Television, the precursor to PBS, which took us to "Sesame Street" and "Mister Rogers' Neighborhood."

(static fizzles) ♪ gentle music ♪ And it feels so good inside to help others.

♪ Each and every one of us can be a helper.

<Man> I want to help.

♪ gentle music continues ♪ <Gabe> I wonder who that could be.

♪ ♪ upbeat music ♪ ♪ It's Mr. Business, everyone.

Welcome, Mr. Business.

How can you help?

<Mr.

Business> I can help by putting money made from our business into a nonprofit organization.

<Gabe> That's great.

Who would your organization help?

<Mr.

Business> The needy.

(laughs) Yeah, yeah!

We'll use a tax exempt status and then pay ourselves in overhead and administrative costs for running the organization.

The nonprofit will boost the image of our commercial brand, and we can lobby the government for favorable policies with philanthropic programs we create.

Donations could be funneled- <Gabe> Pardon me, Mr. Business, but it sounds like you've only thought about how you can help yourself.

<Mr.

Business> Oh, you've got me.

I'm just a puppet anyway.

How can I benefit mankind, huh?

<Gabe> Mr. Business, I'd like to thank you for helping me to learn about what's really inside a person, and what's inside of you besides a hand is actually very dark and scary.

♪ gentle music ♪ (static fizzles) In the 1980s, President Reagan enacted budget cuts that limited federal spending on social welfare.

The intent was to shift responsibility back to society and reduce nonprofit reliance on federal tax dollars.

And then philanthropy met MTV.

♪ We are the world ♪ ♪ We are the children ♪ In response to a devastating famine taking hold in Ethiopia, a group of celebrities formed USA for Africa.

They released "We Are The World," a star-studded single and music video, donating sales to the cause while raising awareness and hairdos.

♪ upbeat music ♪ ♪ upbeat techno music ♪ Corporate branding led the push for Hands Across America, an attempt to form a 4,125 mile human chain through 17 states to raise money for hunger and homelessness here in the States with cross promotional marketing, benefiting sponsor brands, putting big business back in the fundraising business.

♪ upbeat music ♪ <Leanne> What are you doing?

<Bill> Thought it'd be nice if we held hands at the beginning of this one.

<Leanne> Welcome back.

Hello.

Bill, did you know that for every $1 of federal funding, stations like ours are able to raise $6 from other sources such as philanthropic foundations?

<Bill> No, Leanne, I didn't realize that.

Then what are we doing here telling these poor folks at home to part with their moolah?

<Leanne> Well, individual donations still account for the largest source of revenue for public media entities.

That's why if you call and pledge right now, we'll send you this bundle of Gabe Rogers DVDs, seasons one through ♪ upbeat music continues ♪ one.

There's just the one season.

<Bill> Hey, can we throw in a Mr. Business sock puppet while we're at it?

<Leanne> We don't have any of those, Bill.

(chuckles) <Bill> I'm just kidding, but I could use some help on some tax advice.

You don't want to be on the wrong side of the IRS.

♪ Trust me.

<Leanne> Will you look at that?

Looks like we're at the end of the slot.

Let's get back to the program.

♪ ♪ gentle string music ♪ <Gabe> So there's a saying, don't look a gift horse in the mouth.

Somebody gives you a good gift.

You don't want to critique it.

But in your book, you sort of question that idea, particularly when there's some really wealthy givers that may have some questionable motives.

>> What we find over and over again is that big philanthropy from especially rich people, is an additional mechanism for rich people to have an outsized say in our common affairs.

And sometimes it's good and worth celebrating, but other times it's worth scrutinizing and criticizing.

We've made a system out of philanthropy, a system out of charity, 501c3 nonprofit.

There are a variety of tax laws that attach to charitable giving, which give people a tax benefit for making a charitable gift or a big philanthropic donation.

It means that when, you know, you make a big donation, it doesn't really cost you $1,000 to give $1,000 away.

It costs you maybe $700 to give $1,000 away because you're forgiven $300 on your taxes, which to say the rest of us as citizens are foregoing what would otherwise be in the US Treasury when you decide to make a $1,000 gift.

All of this is just to say that philanthropy is not the exercise of liberty of the individual.

It's the subsidized exercise of liberty of the individual to give the money away.

And all of us have a stake in your charitable giving because we're losing out on tax dollars when a rich person decides to give some money away.

<Gabe> Well, what are some ways you think that public giving can be more participatory or democratized?

<Rob> Going back to that age of de Tocqueville and, you know, coming together to solve problems together at the local level, that's been happening in the background, but we often don't see enough of it.

And the spirit of coming together in order to solve local problems together, I think is at the heart of what the spirit of the country is about and what needs to be lifted up in this moment in which the wealthiest are the ones that command the headlines.

♪ gentle music ♪ <Gabe> Back in Nashville, my friends Craig and Earl from public television's "The Good Road" told me about the philanthropy that they explore in their show.

♪ gentle music continues ♪ I imagine almost all of these start with good intentions.

They have a good heart, right?

Knowing how to best give, you know, in a productive and fruitful manner, it can be certainly challenging.

>> Really, you have to justify something that the government is not already doing.

It has to be services that are not done.

That's why we have a tax incentive on that side.

So again, it's the third sector they call it, the nonprofit sector, is supposed to fill in the gaps there, otherwise it's not happening.

<Craig> There has been a corporatization of the idea of philanthropy.

So it's like, "Oh, the nonprofits, "that's what they do", you know?

And that, really, it became an industry of business.

It became a tax break.

To some extent, people started forgetting that everybody can just help their fellow man, <Gabe> Right.

<Craig> and it comes from a positive place.

<Gabe> Sure.

<Craig> Americans want to help, and they want to get stuff done, right?

I mean, that's the American spirit.

♪ gentle music continues ♪ (static fizzles) ♪ relaxed music ♪ <Gabe> Oops.

(chuckles) A little too much liquid black on the canvas here.

That's okay.

We'll just call that our happy little oil spill in honor of the Getty family or the Rockefeller family, both oil families.

The Rockefeller's donated millions of acres to become our national parks like Yellowstone here, Lamar Valley, so many great and beautiful places we get to experience thanks to their donations.

Now let's wonder, in this day and age, where will our next art museum, university, or national park come from?

♪ relaxed music continues ♪ You get to decide.

There it goes.

(static fizzles) Yesterday's robber barons are today's tech barons.

And in the spirit of Carnegie's "Gospel of Wealth," Warren Buffett issued the giving pledge for billionaires to commit the majority of their wealth to philanthropy.

Currently, there are 211 pledged members, and the combined pledged amount is about $600 billion.

However, the outrageously wealthy aren't the only ones who can make an impact.

In 2019, individual giving made up 69% of all giving that year, and that's just the dollar amount.

There are no charts showing the time, energy, and compassion given by everyday people and local benevolent societies.

Philanthropy is more than dollars.

It's involvement, which means you don't have to be rich to contribute.

♪ Certainly a blessing to live in a land where opportunity can transform into wild success.

But it's even better to be a blessing with those around us, have the willingness to share whatever we receive no matter how great or small.

They say charity begins in the home, but philanthropy begins right here in our own neighborhoods.

Thanks for watching.

♪ calm bluegrass music ♪ ♪ ♪ There's a dark and a troubled side of life ♪ ♪ A bright and a sunny side too ♪ ♪ Though we meet with darkness and strife ♪ ♪ The sunny side could come into view ♪ ♪ Keep on the sunny side ♪ ♪ ♪ Keep on the sunny side of life ♪ ♪ It could help you every day riding all the way ♪ ♪ If you keep on the sunny side of life ♪ ♪ poppy bluegrass music ♪ ♪ ♪ poppy bluegrass music continues ♪ ♪ ♪ Keep on the sunny side ♪ ♪ Always on the sunny side ♪ ♪ Keep on the sunny side of life ♪ ♪ Help you every day riding all the way ♪ ♪ Keep on the sunny side of life ♪ ♪ ♪ gentle music ♪ ♪ gentle bluegrass music ♪ ♪ ♪ gentle bluegrass music continues ♪ >> Connect with me, Gabe McCauley and "Reconnecting Roots" by visiting reconnectingroots.com where you'll discover music, blogs, behind the scenes, our podcast, and more.

Join our email list and never miss a beat.

♪ upbeat bluegrass music ♪ >> Support for "Reconnecting Roots" is provided by the following.

RPC.

♪ gentle bluegrass music ♪ Plain Values, a magazine on a mission to find joy in the simple things.

♪ Muletown Coffee Roasters is all about slowing things down, digging into community, and encouraging good for goodness sake.

Taylor Stitch is responsibly built for the long haul and is proud to partner with brands that inspire hope for a more sustainable future.

♪ Sharing a common passion from music and community in beautiful Paradise Valley, Music Ranch Montana's mission to support musicians and provide a place to enjoy it together is reflected in "Reconnecting Roots."

At TowHaul, we value the creativity and hard work that built this country, and improves our lives by supporting education towards careers in manufacturing and the trades.

TowHaul.

Proud sponsor of "Reconnecting Roots," and public television.

♪ delicate music ♪ ♪