George Soros in Hungary, 1946
Philanthropy occupies an unusual role in our thinking about the way our society should operate. It is neither a privately owned, for-profit enterprise nor an undertaking of government. So what is it? What should it be? And what role does it play in social change?
Lester Salamon, an expert in the field at Johns Hopkins University, offers a definition of philanthropy as: "the private giving of time or valuables (money, security, property) for public purposes."
While accurate and concise, Salamon's formulation does not offer much insight into the types of "public purposes" that are advanced through philanthropy or the values and interest to be promoted by it.
George Soros, internationally know investor, financier and philanthropist, recently offered his own answer to these questions in an article titled "My Philanthropy" in the June 23rd edition of the The New York Review of Books (http://www.nybooks.com/articles/archives/2011/jun/23/my-philanthropy).
Soros is candid about his viewpoints and values:
"I have made it a principle to pursue my self- interest in my business, subject to legal and ethical limitations, and to be guided by the public interest as a public intellectual and philanthropist. If the two are in conflict, the public interest ought to prevail. I do not hesitate to advocate policies that are in conflict with my business interests. I firmly believe that our democracy would function better if more people adopted this principle."
Soros has been remarkably public and transparent about his views on the type of social progress he seeks to promote through his Open Society Foundations (http://www.soros.org): the building of "vibrant and tolerant democracies whose governments are accountable to their citizens."
Soros goes on in his article to ponder the question, pertinent to a man in his 80's, of whether the values and purposes he has promoted can be sustained by the philanthropic ventures he has created after he no longer controls them. His thoughts on this challenge are worth careful consideration.
The National Committee on Responsible Philanthropy (NCRP) promotes a view similar the vision Soros has for philanthropy. In its recently released "Philanthropy's Promise" (http://www.ncrp.org/philanthropys-promise), NCRP argues that the philanthropic sector best serves its public purpose when foundations, corporations and individuals devote at least 50% of their giving to:
"underserved populations such as economically disadvantaged people, racial or ethnic minorities, women and girls, people with AIDS, people with disabilities, the elderly, immigrants and refugees, victims of crime or abuse, offenders and ex-offenders, single parents and lesbian, gay bisexual, transgender and questioning (LGBTQ) individuals."
NCRP further recommends that "at least 25 percent of their grants explicitly support nonprofit advocacy, community organizing and civic engagement."
In offering these visions for the role of philanthropy, both the NCRP and George Soros are advocating for a substantial shift in the priorities currently embraced by foundations, corporations and individual donors in America.
According to "Giving Today", a report by the American Association of Fundraising Counsel, American corporations, foundations and individual donors gave away just under $308 billion in 2009. These gifts were distributed across the following priorities and areas:
• Religious organizations received 33% of these donations;
• Educational organizations received 13%;
• Foundations received 10%
• Social service organizations received 9%
• Public safety organizations received 8%
• Healthcare organizations received 7%
With 80% of these donations allocated to these six areas, it's clear that only a small fraction of America's philanthropic dollars follow the directions practiced by Soros or promoted by the National Committee for Responsible Philanthropy.
For anyone interested in shifting philanthropic priorities to support more democratic institutions, advocacy and social justice, it's also critical to understand the sources of most giving in America. Individuals contribute 75% of this country's philanthropic dollars (just over $227 billion in 2009). Foundations contribute only 13% (about $38 billion). Shifting the way individuals contribute is the largest opportunity and challenge.