Stifled Generosity: How philanthropy has fueled the accumulation and privatization of wealth
There is no denying that the modern field of philanthropy — constructed by individuals and entities that give away money to advance the public good — has severe limitations in its ability to address the many social, economic and environmental challenges of today.
In the United States, philanthropy was first envisioned in the late 1800s as a vehicle for private citizens to provide financial support to help others in society, such as the poor, where government fell short. As tax policies and regulations were implemented — and as they were applied in practice — the driver behind individual and institutional philanthropy shifted from creating social change to avoiding tax payments and accumulating wealth and power. As such, modern philanthropy perpetuates the systemic inequalities it was established to combat, evidenced by everyday practices (e.g. burdensome application procedures; evaluation metrics that don’t align with community priorities) as well as larger systemic issues (e.g. power dynamics that fuel mistrust between foundation staff and grantees; implicit bias against organizations led by people of color).
Like all other forms of wealth in the U.S., philanthropic wealth can be directly traced back to industries of extraction and exploitation, including slavery, stolen land from indigenous people, and the systemic undervaluing of “women’s work.” Because philanthropic wealth comes from these industries, it is understandable how wealthy individuals and families have managed their philanthropy in many of the same ways that they have managed their for-profit businesses. A core challenge of this approach is that our most pressing issues cannot be resolved by investment and grantmaking practices that reinforce the most harmful aspects of our economy. Moreover, generosity will continue to be stifled by philanthropic practices that are in complete misalignment with our values, missions and primary objectives.
In order to reclaim the original definition of philanthropy – “love of humanity” – our field must undergo a Just Transition from its current constraints toward a way of operating that re-distributes wealth, democratizes power and shifts economic control to communities.
To make a transition toward this new vision of philanthropy, we must understand the laws and practices in our field over the last 100 years, that got us to where we are today. We invite you to first reflect on the historical events on this page along with their “justice funder analysis,” then follow our new “Liberate Philanthropy” blog series where some of our most radical, transformational allies in philanthropy share stories about how their real-world efforts are facilitating a Just Transition for philanthropy. Their stories reveal that change is already taking place, and it’s up to each of us to decide whether to uphold the status quo or dismantle it. The next 100 years of philanthropy will depend on what we do to shape it today. Thank you for joining us in re-imagining a more just and thriving world.