Philanthropy means the love of humanity. A conventional modern definition is "private initiatives, for the public good, focusing on quality of life", which combines an original humanistic tradition with a social scientific aspect developed in the 20th century. The definition also serves to contrast philanthropy with business endeavors, which are private initiatives for private good, e.g., focusing on material gain, and with government endeavors, which are public initiatives for public good, e.g., focusing on provision of public services. A person who practices philanthropy is called a philanthropist.
Philanthropy has distinguishing characteristics separate from charity; not all charity is philanthropy, or vice versa, though there is a recognized degree of overlap in practice. A difference commonly cited is that charity aims to relieve the pain of a particular social problem, whereas philanthropy attempts to address the root cause of the problem—the difference between the proverbial gift of a fish to a hungry person, versus teaching them how to fish.
In the second century CE, Plutarch used the Greek concept of philanthrôpía to describe superior human beings. During the Roman Catholic Middle Ages, philanthrôpía was superseded by Caritas charity, selfless love, valued for salvation and escape from purgatory. Philanthropy was modernized by Sir Francis Bacon in the 1600s, who is largely credited with preventing the word from being owned by horticulture. Bacon considered philanthrôpía to be synonymous with "goodness", correlated with the Aristotelian conception of virtue, as consciously instilled habits of good behaviour. Samuel Johnson simply defined philanthropy as "love of mankind; good nature". This definition still survives today and is often cited more gender-neutrally as the "love of humanity."
In London prior to the 18th century, parochial and civic charities were typically established by bequests and operated by local church parishes (such as St Dionis Backchurch) or guilds (such as the Carpenters' Company). During the 18th century, however, "a more activist and explicitly Protestant tradition of direct charitable engagement during life" took hold, exemplified by the creation of the Society for the Promotion of Christian Knowledge and Societies for the Reformation of Manners.
In 1739, Thomas Coram, appalled by the number of abandoned children living on the streets of London, received a royal charter to establish the Foundling Hospital to look after these unwanted orphans in Lamb's Conduit Fields, Bloomsbury. This was "the first children's charity in the country, and one that 'set the pattern for incorporated associational charities' in general." The hospital "marked the first great milestone in the creation of these new-style charities."
Jonas Hanway, another notable philanthropist of the era, established The Marine Society in 1756 as the first seafarer's charity, in a bid to aid the recruitment of men to the navy. By 1763, the society had recruited over 10,000 men and it was incorporated in 1772. Hanway was also instrumental in establishing the Magdalen Hospital to rehabilitate prostitutes. These organizations were funded by subscription and run as voluntary associations. They raised public awareness of their activities through the emerging popular press and were generally held in high social regard—some charities received state recognition in the form of the Royal Charter.
Philanthropists, such as anti-slavery campaigner William Wilberforce, began to adopt active campaigning roles, where they would champion a cause and lobby the government for legislative change. This included organized campaigns against the ill treatment of animals and children and the campaign that succeeded in ending the slave trade throughout the Empire starting in 1807. Although there were no slaves allowed in Britain itself, many rich men owned sugar plantations in the West Indies, and resisted the movement to buy them out until it finally succeeded in 1833.
Financial donations to organized charities became fashionable among the middle-class in the 19th century. By 1869 there were over 200 London charities with an annual income, all together, of about £2 million. By 1885, rapid growth had produced over 1000 London charities, with an income of about £4.5 million. They included a wide range of religious and secular goals, with the American import, the YMCA (Young Men's Christian Association) as one of the largest, and many small ones such as the Metropolitan Drinking Fountain Association. In addition to making annual donations, increasingly wealthy industrialists and financiers left generous sums in their wills. A sample of 466 wills in the 1890s revealed a total wealth of £76 million, of which £20 million was bequeathed to charities. By 1900 London charities enjoyed an annual income of about £8.5 million.
Led by the energetic Lord Shaftesbury (1801–1885), philanthropists organized themselves. In 1869 they set up the Charity Organisation Society. It was a federation of district committees, one in each of the 42 Poor Law divisions. Its central office had experts in coordination and guidance, thereby maximizing the impact of charitable giving to the poor. Many of the charities were designed to alleviate the harsh living conditions in the slums. such as the Labourer's Friend Society founded in 1830. This included the promotion of allotment of land to labourers for "cottage husbandry" that later became the allotment movement, and in 1844 it became the first Model Dwellings Company—an organization that sought to improve the housing conditions of the working classes by building new homes for them, while at the same time receiving a competitive rate of return on any investment. This was one of the first housing associations, a philanthropic endeavor that flourished in the second half of the nineteenth century, brought about by the growth of the middle class. Later associations included the Peabody Trust, and the Guinness Trust. The principle of philanthropic intention with capitalist return was given the label "five per cent philanthropy."
In 1863, the Swiss businessman Henry Dunant used his personal fortune to fund the Geneva Society for Public Welfare, which became the International Committee of the Red Cross. During the Franco-Prussian War of 1870, Dunant personally led Red Cross delegations that treated soldiers. He shared the first Nobel Peace Prize for this work in 1901.
The French Red Cross played a minor role in the war with Germany (1870–71). After that it became a major factor in shaping French civil society as a non-religious humanitarian organization. It was closely tied to the army's Service de Santé. By 1914 it operated one thousand local committees with 164,000 members, 21,500 trained nurses, and over 27 million francs in assets.
The International Committee of the Red Cross (ICRC) played a major role in working with POW's on all sides in World War II. It was in a cash starved position when the war began in 1939, but quickly mobilized its national offices set up a Central Prisoner of War Agency. For example, it provided food, mail and assistance to 365,000 British and Commonwealth soldiers and civilians held captive. Suspicions, especially by London, of ICRC as too tolerant or even complicit with Nazi Germany led to its side-lining in favour of the UN Relief and Rehabilitation Administration (UNRRA) as the primary humanitarian agency after 1945.
In France, the Pasteur Institute had a monopoly of specialized microbiological knowledge allowed it to raise money for serum production from both private and public sources, walking the line between a commercial pharmaceutical venture and a philanthropic enterprise.
By 1933, at the depth of the Great Depression, the French wanted a welfare state to relieve distress, but did not want new taxes. War veterans came up with a solution: the new national lottery proved highly popular to gamblers, while generating the cash needed without raising taxes.
American money proved invaluable. The Rockefeller Foundation opened an office in Paris and helped design and fund France's modern public health system, under the National Institute of Hygiene. It also set up schools to train physicians and nurses.
The history of modern philanthropy the European Continent is especially important in the case of Germany, which became a model for others, especially regarding the welfare state. The princes and in the various Imperial states continued traditional efforts, such as monumental buildings, parks and art collections. Starting in the early 19th century, the rapidly emerging middle classes made local philanthropy a major endeavor to establish their legitimate role in shaping society, in contradistinction to the aristocracy and the military. They concentrated on support for social welfare institutions, higher education, and cultural institutions, as well as some efforts to alleviate the hardships of rapid industrialization. The bourgeoisie (upper-middle-class) was defeated in its effort to it gain political control in 1848, but they still had enough money and organizational skill that could be employed through philanthropic agencies to provide an alternative powerbase for their world view. Religion was a divisive element in Germany, as the Protestants, Catholics and Jews used alternative philanthropic strategies. The Catholics, for example, continued their medieval practice of using financial donations in their wills to lighten their punishment in purgatory after death. The Protestants did not believe in purgatory, but made a strong commitment to the improvement of their communities here and now. Conservative Protestants Raised concerns about deviant sexuality, alcoholism and socialism, as well as illegitimate births. They used philanthropy to eradicate social evils that were seen as utterly sinful. All the religious groups used financial endowments, which multiplied in the number and wealth as Germany grew richer. Each was devoted to a specific benefit to that religious community. Each had a board of trustees; these were laymen who donated their time to public service. Chancellor Otto von Bismarck, an upper class Junker, used his state-sponsored philanthropy, in the form of his invention of the modern welfare state, to neutralize the political threat posed by the socialistic labor unions. The middle classes, however, made the most use of the new welfare state, in terms of heavy use of museums, gymnasiums (high schools), universities, scholarships, and hospitals. For example, state funding for universities and gymnasiums covered only a fraction of the cost; private philanthropy became the essential ingredient. 19th century Germany was even more oriented toward civic improvement then Britain or the United States, when measured in terms of voluntary private funding for public purposes. Indeed, such German institutions as the kindergarten, the research university, and the welfare state became models copied by the Anglo-Saxons. The heavy human and economic losses of the First World War, the financial crises of the 1920s, as well as the Nazi regime and other devastation by 1945, seriously undermined and weakened the opportunities for widespread philanthropy in Germany. The civil society so elaborately build up in the 19th century was practically dead by 1945. However, by the 1950s, as the "economic miracle" was restoring German prosperity, the old aristocracy was defunct, and middle-class philanthropy started to return to importance.
The Commission for Relief in Belgium (CRB) was an international (predominantly American) organization that arranged for the supply of food to German-occupied Belgium and northern France during the First World War. It was led by Herbert Hoover. Between 1914 and 1919, the CRB operated entirely with voluntary efforts and was able to feed 11,000,000 Belgians by raising the necessary money, obtaining voluntary contributions of money and food, shipping the food to Belgium and controlling it there. For example, the CRB shipped 697,116,000 pounds of flour to Belgium. Biographer George Nash finds that by the end of 1916, Hoover "stood preeminent in the greatest humanitarian undertaking the world had ever seen." Biographer William Leuchtenburg adds, "He had raised and spent millions of dollars, with trifling overhead and not a penny lost to fraud. At its peak, his organization was feeding nine million Belgians and French a day.
When the war ended in late 1918, Hoover took control of the American Relief Administration (ARA), with the mission of food to Central and Eastern Europe. The ARA fed millions. U.S. government funding for the ARA expired in the summer of 1919, and Hoover transformed the ARA into a private organization, raising millions of dollars from private donors. Under the auspices of the ARA, the European Children's Fund fed millions of starving children. When attacked for distributing food to Russia, which was under Bolshevik control, Hoover snapped, "Twenty million people are starving. Whatever their politics, they shall be fed!"
The first corporation founded in the 13 Colonies was Harvard College (1636), designed primarily to train young men for the clergy. A leading theorist was the Puritan theologian Cotton Mather (1662–1728), who in 1710 published a widely read essay, Bonifacius, or an Essay to Do Good. Mather worried that the original idealism had eroded, so he advocated philanthropic benefaction as a way of life. Though his context was Christian, his idea was also characteristically American and explicitly Classical, on the threshold of the Enlightenment.
Benjamin Franklin (1706–1790) was an activist and theorist of American philanthropy. He was much influenced by Daniel Defoe's An Essay upon Projects (1697) and Cotton Mather's Bonifacius: an essay upon the good. (1710). Franklin attempted to motivate his fellow Philadelphians into projects for the betterment of the city: examples included the Library Company of Philadelphia (the first American subscription library), the fire department, the police force, street lighting and a hospital. A world-class physicist himself, he promoted scientific organizations including the Philadelphia Academy (1751) – which became the University of Pennsylvania – as well as the American Philosophical Society (1743) to enable scientific researchers from all 13 colonies to communicate.
By the 1820s, newly rich American businessmen were initiating philanthropic work, especially with respect to private colleges and hospitals. George Peabody (1795–1869) is the acknowledged father of modern philanthropy. A financier based in Baltimore and London, in the 1860s he began to endow libraries and museums in the United States, and also funded housing for poor people in London. His activities became the model for Andrew Carnegie and many others.
Andrew Carnegie (1835–1919) was the most influential leader of philanthropy on a national (rather than local) scale. After selling his steel corporation in the 1890s he devoted himself to establishing philanthropic organizations, and making direct contributions to many educational cultural and research institutions. His final and largest project was the Carnegie Corporation of New York, founded in 1911 with a $25 million endowment, later enlarged to $135 million. In all, Carnegie gave away 90% of his fortune.
Other prominent American philanthropists of the early 20th century included John D. Rockefeller, Julius Rosenwald (1862–1932) and Margaret Olivia Slocum Sage (1828–1918). Rockefeller (1839–1937) retired from business in the 1890s; he and his son John D. Rockefeller Jr. (1874–1960) made large-scale national philanthropy systematic, especially with regard to the study and application of modern medicine, higher, education and scientific research. Of the $530 million the elder Rockefeller gave away, $450 million went to medicine. Their leading advisor Frederick Taylor Gates launched several very large philanthropic projects staffed by experts who sought to address problems systematically at the roots rather than let the recipients deal only with their immediate concerns. By 1920, the Rockefeller Foundation was opening offices in Europe. It launched medical and scientific projects in Britain, France, Germany, Spain, and elsewhere. It supported the health projects of the League of Nations. By the 1950s the Rockefeller Foundation was investing heavily in the Green Revolution, especially the work by Norman Borlaug that enabled India, Mexico and many poor countries to dramatically upgrade their agricultural productivity.
With the acquisition of most of the stock of the Ford Motor Company the late 1940s, the Ford Foundation became the largest American philanthropy, splitting its activities between the United States, and the rest of the world. Outside the United States, it established a network of human rights organizations, promoted democracy, gave large numbers of fellowships for young leaders to study in the United States, and invested heavily in the Green Revolution, whereby poor nations dramatically increased their output of rice, wheat and other foods. Both Ford and Rockefeller were heavily involved. Ford also gave heavily to build up research universities in Europe and worldwide. For example, in Italy in 1950 it sent a team to help the Italian ministry of education reform the nations school system, based on the principles of ‘meritocracy" (rather than political or family patronage), democratisation (with universal access to secondary schools). It reached a compromise between the Christian Democrats and the Socialists, to help promote uniform treatment and equal outcomes. The success in Italy became a model for Ford programs and many other nations.
The Ford Foundation in the 1950s wanted to modernize the legal systems in India and Africa, by promoting the American model. The plan failed, because of India's unique legal history, traditions, and profession, as well as its economic and political conditions. Ford therefore turned to agricultural reform. The success rate in Africa was no better, and that program closed in 1977.
Philanthropy in Australia is influenced by the country's regulatory and cultural history, and by its geography. Structured giving through foundations is slowly growing, although public data on the philanthropic sector is sparse. There is no public registry of philanthropic foundations as distinct from charities more generally. The sector is represented by Philanthropy Australia, the peak membership body for grant-making trusts and foundations.
Recent national research supported by the Prime Minister's Community Business Partnership examined giving in Australia, one decade on from the first national study. Giving Australia 2016 provides comprehensive, up-to-date information from individuals, charitable organisations, philanthropists and businesses in Australia about giving and volunteering behaviours, approaches and trends.
Philanthropy New Zealand is the peak membership body supporting and representing philanthropy and grantmaking in Aotearoa New Zealand.
Alpha Chi Omega (ΑΧΩ, also known as Alpha Chi or A Chi O) is a women's fraternity founded on October 15, 1885.
Currently, there are 194 collegiate and 279 alumnae chapters represented across the United States, and the fraternity counts more than 230,000 members initiated through its history. Angela Costly Harris is the current National President of Alpha Chi Omega and oversees all collegiate and alumnae chapters in the nation.
Alpha Chi Omega is a member of the National Panhellenic Conference, the governing council of 26 women's fraternities. Its own national headquarters is located in Indianapolis, Indiana.CharityWatch
CharityWatch, formerly known as the American Institute of Philanthropy (AIP), is a 501(c)(3) nonprofit organization in Chicago, created in the United States by Daniel Borochoff in 1992, to provide information about charities' financial efficiency, accountability, governance, and fundraising.Columbia University School of Social Work
The Columbia University School of Social Work is affiliated with
Columbia University as one of its graduate schools and began awarding the Master of Science (MS) degree since 1940. With an enrollment of over 900, it is one of the largest social work programs in the United States. It is also the nation’s oldest, with roots extending back to 1898, when the New York Charity Organization Society’s first summer course was announced in The New York Times. The combination of its age and size has led to the School becoming a repository for much of the reference literature in the social work field.Dustin Moskovitz
Dustin Aaron Moskovitz (; born May 22, 1984) is an American Internet entrepreneur who co-founded Facebook with Mark Zuckerberg, Eduardo Saverin, Andrew McCollum and Chris Hughes. In 2008, he left Facebook to co-found Asana with Justin Rosenstein. In March 2011, Forbes reported Moskovitz to be the youngest self-made billionaire in history, on the basis of his 2.34% share in Facebook.Effective altruism
Effective altruism is a philosophy and social movement that uses evidence and reasoning to determine the most effective ways to benefit others. Effective altruism encourages individuals to consider all causes and actions and to act in the way that brings about the greatest positive impact, based upon their values. It is the broad, evidence-based approach that distinguishes effective altruism from traditional altruism or charity.While a substantial proportion of effective altruists have focused on the nonprofit sector, the philosophy of effective altruism applies more broadly to prioritizing the scientific projects, companies, and policy initiatives which can be estimated to save lives, help people, or otherwise have the biggest benefit. People associated with the movement include philosopher Peter Singer, Facebook cofounder Dustin Moskovitz, Cari Tuna, Oxford-based researchers William MacAskill and Toby Ord, professional poker player Liv Boeree, and writer Jacy Reese.Foundation for New Era Philanthropy
The Foundation for New Era Philanthropy was a notorious Ponzi scheme that operated from 1989 until its collapse in 1995 after having raised over $500 million from 1100 donors and embezzling $135 million of this. Most of the money was stolen from Christian religious organizations and charities in the Philadelphia, Pennsylvania area. The scheme was publicly discovered by an accounting teacher at a college in Michigan and by the auditing firm Coopers & Lybrand working with its client, a local religious college in Los Angeles who suffered no loss in its participation.Fundraising
Fundraising or fund-raising (also known as "development") is the process of gathering voluntary contributions of money or other resources, by requesting donations from individuals, businesses, charitable foundations, or governmental agencies (see also crowdfunding). Although fundraising typically refers to efforts to gather money for non-profit organizations, it is sometimes used to refer to the identification and solicitation of investors or other sources of capital for for-profit enterprises.
Traditionally, fundraising consisted mostly of asking for donations on the street or at people's doors, and this is experiencing very strong growth in the form of face-to-face fundraising, but new forms of fundraising, such as online fundraising, have emerged in recent years, though these are often based on older methods such as grassroots fundraising.GiveWell
GiveWell is an American non-profit charity assessment and effective altruism-focused organization. GiveWell focuses primarily on the cost-effectiveness of the organizations that it evaluates, rather than traditional metrics such as the percentage of the organization's budget that is spent on overhead.Giving Tuesday
Giving Tuesday, often stylized as #GivingTuesday for purposes of hashtag activism, refers to the Tuesday after U.S. Thanksgiving in the United States. It is a movement to create an international day of charitable giving at the beginning of the Christmas and holiday season. Giving Tuesday was started in 2012 by the 92nd Street Y and the United Nations Foundation as a response to commercialization and consumerism in the post-Thanksgiving season (Black Friday and Cyber Monday). If Thanksgiving is on November 22, 23, 24, or 25, it will fall in November but if it is on November 26, 27, or 28, it will fall in December. The date range is November 27 to December 3, and is always five days after the holiday.Grant (money)
Grants are non-repayable funds or products disbursed or given by one party (grant makers), often a government department, corporation, foundation or trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal or an application is required.
Most grants are made to fund a specific project and require some level of compliance and reporting. The grant writing process involves an applicant submitting a proposal (or submission) to a potential funder, either on the applicant's own initiative or in response to a Request for Proposal from the funder. Other grants can be given to individuals, such as victims of natural disasters or individuals who seek to open a small business. Sometimes grant makers require grant seekers to have some form of tax-exempt status, be a registered nonprofit organization or a local government.
For example, tiered funding for a freeway are very large grants negotiated at government policy level. However smaller grants may be provided by a government agency (e.g. municipal government).
Project-related funding involving business, communities, and individuals is often arranged by application either in writing or online.John S. Middleton
John S. Middleton is an American business leader and philanthropist. He is the managing partner and principal owner of the Philadelphia Phillies of Major League Baseball, holding a 48% ownership stake in the team. His philanthropy has focused on ending homelessness.Madam C. J. Walker
Sarah Breedlove (December 23, 1867 – May 25, 1919), known as Madam C. J. Walker, was an African-American entrepreneur, philanthropist, and a political and social activist. Walker was considered the wealthiest African-American businesseswoman and wealthiest self-made woman in America at the time of her death in 1919. Although she was eulogized as the first female self-made millionaire in the US, her estate was worth an estimated $600,000 upon her death. According to Walker's obituary in The New York Times, "she said herself two years ago [in 1917] that she was not yet a millionaire, but hoped to be some time".
Walker made her fortune by developing and marketing a line of cosmetics and hair care products for black women through the business she founded, Madam C. J. Walker Manufacturing Company. Born in a village in Louisiana, she moved North to develop her business.
She became known also for her philanthropy and activism. She made financial donations to numerous organizations and became a patron of the arts. Villa Lewaro, Walker's lavish estate in Irvington-on-Hudson, New York, served as a social gathering place for the African-American community.
Her name, Madam C. J. Walker, came as a result of her marriage to Charles Joseph Walker, who died in 1926.Paul Allen
Paul Gardner Allen (January 21, 1953 – October 15, 2018) was an American business magnate, investor, software engineer, humanitarian, and philanthropist. Alongside Bill Gates, Allen co-founded Microsoft in 1975, which helped spark the microcomputer revolution and later became the world's largest PC software company. In March 2018, he was estimated to be the 44th-wealthiest person in the world, with an estimated net worth of $21.7 billion, revised at the time of his death to $20.3 billion.Allen was the founder, with his sister Jody Allen, and Chairman of Vulcan Inc., the privately held company that managed his various business and philanthropic efforts. He had a multibillion-dollar investment portfolio including technology and media companies, scientific research, real estate holdings, private spaceflight ventures, and stakes in other sectors. He owned two professional sports teams: the Seattle Seahawks of the National Football League and the Portland Trail Blazers of the National Basketball Association, and was part-owner of the Seattle Sounders FC, which joined Major League Soccer in 2009.Allen was the founder of the Allen Institute for Brain Science, Institute for Artificial Intelligence, Institute for Cell Science, Stratolaunch Systems, and Apex Learning. He gave more than $2 billion to causes such as education, wildlife and environmental conservation, the arts, healthcare, community services, and more. He received numerous awards and honors in several different professions, and was listed among the Time 100 Most Influential People in the World in both 2007 and 2008.Ratan Tata
Ratan Naval Tata, GBE (born 28
December 1937) is an Indian industrialist, investor, philanthropist, and a former chairman of Tata Sons who serves as its chairman emeritus. He was also chairman of Tata Group, from 1991 to 2012, and again, as interim chairman, from October 2016 through February 2017, and continues to head its charitable trusts. He is the recipient of two of the highest civilian awards of India – Padma Vibhushan (2008) and Padma Bhushan (2000).He is an alumnus of the Cornell University College of Architecture. He is well-known for his business ethics and philanthropy.Robber baron (industrialist)
"Robber baron" is a derogatory metaphor of social criticism originally applied to certain late 19th-century American businessmen who were accused of using unscrupulous methods to get rich, or expand their wealth, for example Cornelius Vanderbilt taking money from government-subsidized shippers, in order to not compete on their routes.
The term was based on an analogy to the German robber barons, local feudal lords or bandits in Germany who waylaid travellers through their ostensible territory, claiming some tax or fine was owed.Robert Wood Johnson Foundation
The Robert Wood Johnson Foundation (RWJF) is the United States' largest philanthropy focused solely on health; it is based in Princeton, New Jersey. The foundation's goal, through the use of grants, is "to improve the health and health care of all Americans." The foundation has $11 billion in assets, generating grants approaching $500 million a year.The Robert Wood Johnson Foundation makes grants for a range of health issues, including access to care, childhood obesity, and training for doctors and nurses. Other topics of interest to the foundation include social and economic factors that can impact health, including quality of housing, violence, poverty, and access to fresh food.The Chronicle of Philanthropy
The Chronicle of Philanthropy is a magazine that covers the nonprofit world. Based in Washington, DC, it is aimed at charity leaders, foundation executives, fund raisers, and other people involved in philanthropy. The Chronicle of Philanthropy publishes 12 issues a year while updating its Web site daily. It was founded in 1988 by editor Phil Semas and then managing editor Stacy Palmer. It is owned by The Chronicle of Higher Education Inc., which also publishes The Chronicle of Higher Education, a weekly newspaper covering colleges and universities.Venture philanthropy
Venture philanthropy is a type of impact investment that takes concepts and techniques from venture capital finance and business management and applies them to achieving philanthropic goals. The term was first used in 1969 by John D. Rockefeller III to describe an imaginative and risk-taking approach to philanthropy that may be undertaken by charitable organizations.
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