Philanthropy Editorial
Issue 15: Philanthropy




By Markus Matthews
From Issue 15
Date December 2006

Topics Covered


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– Ashley Brendon on December 26th, 2011

We tend to think of philanthropy as emanating primarily from the private sphere – corporations, foundations and non-profits. We often ignore the huge role governments have in the aid equation. In fact, public giving dwarfed all other sources in a 2004 survey by Foreign Policy Magazine. This is especially the case in the liberal democracies of Europe. But even in the U.S. where faith in government is limited, public giving outpaces that of private by almost 3 to 1. When it comes to giving per capita, a number of countries stand out for their generosity – Norway leads the pack, with $1.26 per capita being spent on aid (from public and private sources). Denmark, Sweden and the Netherlands are right up there too. The U.S., by contrast, is near the bottom of the pile, giving out just 18 cents per capita, close to the figures for Italy, Spain and Australia. (Source: Foreign Policy Magazine, 2004)

Even when using different rankings, such as those provided by the OECD, the U.S. remains down near the bottom. The top donors in terms of percentage of GNP remain the Scandinavians and other Europeans. The U.S. is almost the last on the list in the 22 countries surveyed – coming in at #21. (Source: OECD, April, 2006)

Statistics aside, philanthropy in the U.S. is a huge business and increasingly philanthropy organizations are operating like their corporate counterparts. An emerging trend is the movement to inject ROI (return on investment) into the philanthropic equation. Some of the most high profile philanthropists in the U.S. are championing this tactic. The sheer size of some philanthropic organizations – the Gates Foundation is perhaps the best example with $30 billion (over $65 billion with Warren Buffet’s contribution) in endowments – dwarfs the national budgets of some countries. The power and influence these charities command lies largely outside the oversight of national governments.

A phenomenon also gaining ground is consumer philanthropy whereby brands are utilized to do good works. Buy a Gap sweater under the new RED label, and a percentage of this goes towards fighting HIV/AIDS in Africa. The American Express RED card does the same thing. Awakening Consumers can spend with a conscience. It remains to be seen just how successful such initiatives will be in the fickle world of consumer fashion and spending. Will the Gap’s RED campaign fall victim to the dictates of fashion and become last year’s thing? And do consumer’s–even Awakening Consumers–really understand the issues and causes such brands champion, or is it an easy way for consumers to have their cake and eat it too without any real sacrifice? Or does it even matter?

The PHILANTHROPY issue of g-Think takes a look at some of these issues and questions. We explore some of the newly emerging themes in the world of philanthropy – consumer philanthropy, philanthropy and tourism, and the profit motive in philanthropic endeavors, as well as a view from a UK perspective. We also show the results from our Philanthropy Survey.

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