Grant Philanthropic Advisors | Making the Case for Philanthropy

September 2022

Dear Reader,

Over the last 20 years, there has been a growing critique of philanthropy which is leading to distrust in the nonprofit sector. Critics allege that philanthropists have an outsized influence on civil society by making large gifts; some high profile donors use their generosity to “wash” their reputation; and major donations are made to benefit the philanthropist and their families. While I can point to a few examples of unethical donor behavior, this critique is certainly not the norm. In my 22 year career in the field, I have observed the opposite to be true. This week's news of Patagonia founder Yvon Chouinard's awe inspiring generosity towards climate change is proof that philanthropists are indeed altruistic and are willing to use their assets strategically to solve big issues in civil society.

Rebuilding Trust

In January 2022, the Edelman Trust Barometer reported that only 45% of Americans trust the nonprofit sector; this is a 5% decline from the previous year. The Center for Effective Philanthropy (CEP) is leading the discussion on trust in the sector. In June, CEP facilitated a webinar “Rebuilding Trust in the Nonprofits and Philanthropy” that featured British Academician Beth Breeze. She recently published In Defence of Philanthropy. in an effort to speak up for the sector and underscore why we must celebrate philanthropy as the linchpin for social innovation. Among her many reasons why we need a vibrant nonprofit sector supported by philanthropy, she notes that giving and volunteering strengthen a community by connecting disparate groups to support a common cause. Pluralistic participation in bolstering a common issue or movement unites communities. Philanthropy can strengthen democracy in spite of some arguing that “big philanthropy” grows the divide between wealthy and poor and threatens the fabric of democratic societies.

In one of Breeze's most compelling defenses, she celebrates philanthropy as the risk capital our civil society needs to innovate and evolve to address social problems. There are limits to how government and corporate entities can effectively operate in the space of civil society. Nonprofits are poised to be flexible and quickly respond to issues. Philanthropy provides the much needed capital for these organizations to flourish. Covid showed us this time and again as we saw nonprofits rise to the challenges to meet human needs. Free health clinics served the sick; food banks fed the hungry; after school programs helped address learning loss; the government looked to community based nonprofits to operate vaccine clinics - to name just a few examples.

“Philanthropy solves problems differently than government. It tends to be more inventive and experimental, quicker, nimbler, more efficient, more varied, more personalized, more interested in transformation than treatment.”

12 Common Criticisms of Philanthropy—and Some Answers

by Karl Zinsmeister in the Stanford Social Innovation Review

Social Entrepreneurship

Below are several examples of creative and flexible approaches to solving big problems. Without charitable dollars, passion, and trust, none of these organizations would exist today.

World Central Kitchen was founded by Chef Jose Andres in response to the increase in crises around the globe. WCK leaders bring their expertise managing large restaurants to feed hundreds of people quickly and compassionately during a traumatic time. In the last few months alone, WCK operations have been at work in Ukraine, Pakistan, Kentucky and Mississippi. The documentary We Feed People captures the entrepreneurial spirit of the organization and the passion and commitment of its leaders.

PCs for People was founded in 1998 to help bridge the digital divide. They receive donated computers from the corporate community, refurbish the PCs, and sell them at a low or no cost to community members in need. They also sell a hot spot connection and offer support and training. PCs for People is uniquely positioned to help the corporate community, prevent computer waste from entering our landfills, and help close the digital divide in communities across the country through its distribution efforts.

Turn90 is a South Carolina based nonprofit that provides transitional work and supportive services to formerly incarcerated people. It is a social enterprise where participants learn job skills in their screen printing shop. Turn90 also rehabilitates participants in intensive cognitive behavioral therapy classes. Founder Amy Barch has pioneered a model with admirable results; the program started in Charleston and recently expanded to Columbia, SC and is headed to upstate South Carolina next. Her dream is to scale the model throughout the US. Her recent podcast interview with former prosecutor and US Representative Trey Gowdy captures her social entrepreneurial spirit and grit.

We must stand up for innovative projects like WCK, PCs For People and Turn90 and the philanthropy that supports them. If we don't, trust in the sector will continue to erode; charitable dollars will cease to flow; and we put at risk supporting the next big idea that will solve our biggest problems. Our world needs visionaries like Jose Andres and Amy Barch - and more of them. Let us as philanthropists respond by acting ethically in our communities, working collaboratively with civic leaders, and creating a thoughtful strategy for our giving.

Gratefully,

Kaky + the GPA Team

KAKY M. GRANT / PRINCIPAL

843-276-3974

Kaky@grantphilanthropy.com

www.grantphilanthropy.com

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