posted on: Monday, March 31, 2008

By Yna Moore

Does contemporary philanthropy benefit the needy? An increasing number from within the sector and the public don’t think so, and that’s problematic, said Susan Raymond in her speech during the 5th annual summit of OnPhilanthropy.

She implored the philanthropic community to take to heart the growing number of voices that have accused the sector of abandoning the needy, because the distrust and skepticism call into question the sector’s role in society:

“Those asking the questions are not the hairdressers of Hopkinsville or the
good old boys of the Koffee Klatch Kafe. The questions are not being asked
out of ignorance. They are being asked out of observation. … It is a
painful accusation but it is a fair question, because we hold the public trust;
we are the stewards of the societal commons. … It is a question that lies at the
heart of the reason for our very existence, the reason the people shoulder our
tax burdens. It is the essence of our compact with the American people,
the central core of their trust in us.”

NCRP has been one of the leading voices calling for change in foundation grantmaking practices for over 30 years, and it’s heartening to hear a well-regarded leader from the sector acknowledge the need to take the criticism seriously.

Her suggested rebuttal to these criticisms seems reasonable. Indeed, the concept of poverty and need has been a source of philosophical debate that predates philanthropy. There is no arguing that just as many around the world and in this country are in dire need of food for the body, there is also a human need for food for the mind and soul through the arts, religion and sciences. And it is also true that change—real systemic change—takes time, and the cause and effect of circumstances leading to change are not necessarily linear. In addition, the solutions to the problems our society faces today—such as poverty, lack of access to basic services, unemployment and environmental degradation—are as complex as the problems themselves. Consequently, there is no magic pill, no magic formula.

As Dr. Raymond dissected the arguments of critics, her rebuttal implicitly supports many of the ideas that critics have suggested to correct the philanthropic sector’s shortcomings in responding to the needy. Foundations should be more strategic in their grantmaking by using a variety of tools that more effectively respond to the needs of marginalized groups. This means that funding policy advocacy and grassroots organizing is just as important as funding direct services to address both the sources and symptoms of poverty and injustice. This means providing more flexible, multi-year support to nonprofits, not just program-specific grants for nonprofits serving the disengaged.

Finally, funding the arts and sciences is not bad at all. In fact, these are essential for people and civilizations to thrive. Although there is considerable wealth tied to philanthropic institutions, these resources are, nevertheless, scarce and limited compared to the tremendous needs in our society. As stewards of these resources, foundations must use their philanthropic dollars wisely and responsibly because at the end of the day, this all boils down to priorities.

These priorities will reflect the values of our society. What should we, as a sector, prioritize? Should people that make our work possible, i.e. the tax paying public that subsidize our sector, have a right to question how their tax dollars are being put to use? Absolutely!

If foundations don’t question their own priorities and don’t start doing more to benefit those with the least wealth and opportunity, not only will the critics grow in number, but their elected representatives might decide it’s time for the government to step in.

Anna Kristina ("Yna") Moore is communications director at NCRP.