The Relationship Between Philanthropy and Charity
Philanthropy and charity are both forms of human kindness. The highest level of philanthropy involves helping someone become self-sufficient. Friedman defined true philanthropy as "helping someone achieve his or her own potential."
Influence of the Industrial Revolution
The Industrial Revolution altered the nature of the problem of social poverty. While rural poverty was always present, it was largely alleviated by access to land and work. In cities, however, the number of unemployed persons was increasing, and employment levels could fall to zero. As a result, a new underclass of unemployed was created. In turn, this changed the nature of philanthropy.
As the Industrial Revolution grew, it boosted the philanthropic spirit. People like Andrew Carnegie and John D. Rockefeller began to accumulate huge fortunes. These individuals found that existing approaches to philanthropy were not adequate to disburse such enormous amounts of wealth. This resulted in the development of modern philanthropy, characterized by practical social uses and generosity to strangers.
The Industrial Revolution also led to the rise of philanthropic organizations. During the Civil War, a scientific approach to philanthropy became popular, bringing order to previously uncoordinated charitable efforts. With this approach, both private charity and public welfare became more efficient, and more attention was paid to the needs of individuals. In addition, social science became more prevalent.
The industrial revolution also eroded the distinctions between government and private charity. During the twentieth century, private power was increasingly abused through philanthropy, and became a major concern for democracy. This trend is now a global phenomenon that continues to affect the world of charity. This is where philanthropy comes into play. By leveraging industrial power through charitable organizations, companies have regained the social capital they once held.
Another impact of the industrial revolution on charitable giving was the decline of the middle class and a greater number of people who could not afford to travel far distances became wealthy. Wealthy people gravitated toward their enclaves and the poor remained in substandard housing. Those with the means to donate to charity were able to do so because the poor and the wealthy were located nearby.
While many modern industries have been forced to change their practices and comply with safety standards, the Industrial Revolution had negative effects on the environment. Although the U.S. has made great strides in protecting the environment, it is not without its problems. The new age of industry changed social structures, and this led to the emergence of the philanthropic movement, which has largely remained alive today.
Impact of the Civil War on philanthropy
The Civil War radically changed the way Americans gave and did philanthropy, and this book shows why. Author Kathleen D. McCarthy traces the evolution of American ideals and philanthropy and the role of volunteerism in public life in the pivotal decades leading up to the war. She explains the history of the civil-rights movement and shows how the Civil War affected the way Americans give and do philanthropy.
The Civil War brought about the rise of scientific philanthropy, which brought order to previously disorganized charitable efforts. It reformed public welfare and private charity. Health services were reorganized and relief operations became more coordinated, and attention to individual needs was more widespread. Social science became popular. Throughout the war, more Americans became aware of their own need and were more willing to give to charities.
As industrialization, immigration, the discovery of oil and gold, and the transportation revolution changed the American landscape, philanthropy became increasingly impulsive. The majority of charities provided only indiscriminate aid, often ignoring community-wide needs and duplicative efforts. In addition, the resulting economic depression severely strained the ability of benevolent organizations to serve the needs of the disadvantaged.
This period also brought about the rise of private philanthropy. Many wealthy whites donated millions of dollars to help blacks. Private philanthropists like Katharine Drexel helped to create a new religious order with the aim of assisting the disadvantaged. Through this program, she built more than four thousand schools and 380 companion community buildings throughout most of the black counties in the United States. By the time he died, these institutions educated 27 percent of all African-American children.
The Industrial Revolution increased the need for aid and improved the means of private citizens meeting that need. In the late eighteenth century, colonial society was unprepared to meet these demands, as private fortunes were limited and wealth was not distributed widely. Wealth was not fluid enough to encourage large-scale giving, but with the advent of better communication and transportation, the nonprofit sector took root and brought widespread social change.
Impact of the 1960s and 1970s on philanthropy
The 1960s were an important period for philanthropy. The anti-socialist paranoia of the 1950s was no longer present. In fact, philanthropists focused more on poverty, race, and urban problems. Nearly a third of foundation grants during this time period were devoted to such issues. The impact of these changes is apparent in today's nonprofit world.
In the late 1960s, Ford Foundation staff began developing new relationships with grantees that extended beyond its traditional partners. As a result, the foundation changed its funding and programmatic strategies. Its emphasis shifted from addressing the immediate symptom of a problem to the root cause. The foundation funded organizations whose work tackled the "root causes" of problems, such as racial tensions.
The Ford Foundation's entry into the civil rights sector led to controversy. In response, white supremacists called for a boycott of Ford cars and dealers were outraged. Ford staff realized that even moderate actions can stir controversy. McGeorge Bundy, president of the Ford Foundation at the time, was thrown on the floor of the US House of Representatives.
The tax law's tax benefits reduced the motivation of wealthy individuals to leave charitable contributions. This led to increased interest in making gifts before death, and tax laws allowed people to pass $5.34 million to their heirs without paying estate taxes. Moreover, it reduced the incentives to leave charitable gifts before death. Thus, the generation inheriting wealth has less incentive to leave a bequest to charity.
In the 1960s and 1970s, the government stepped in to encourage scrutiny of liberal foundations and the role of tax-exempt organizations. The Wright Patman investigation from 1961 had begun to stir the public's interest, but Nixon's election moved the issue to the forefront. In fact, by the 1970s, 44 states had passed laws permitting corporations to donate money to charities.
In the nineteenth century, slavery was a significant issue in philanthropy. The American Colonization Society established a colony of free African Americans in Liberia. This venture was controversial, as it had not been proven to benefit the African-American community. It was unclear how this move would affect the state of slavery in the United States. Although the society's decision to establish the colony was controversial, few spoke out against it before the middle of the nineteenth century.
Impact of religion on philanthropy
There are many studies showing a correlation between religious community and philanthropy and charity. Yet this relationship becomes more ambiguous when religion is tested in experimental settings. For example, when there is no religious ritual, the relationship between religion and charity tends to decline. In addition, religion's scriptural content may motivate people to be charitable, which could explain the positive correlation between religion and charity.
While U.S. households are more likely to give to religious institutions, they also give to other types of charities at similar or higher rates than their secular counterparts. This pattern has many implications for our understanding of why people give to charity. Fortunately, there are some important ways to understand why religion affects our giving behaviors. For example, research on voluntary giving has shown that religious practice is strongly related to healthy individual behavior and generous behavior toward others.
One way to investigate this relationship is by looking at the causes of charitable behavior. For example, Jewish philanthropy promotes community building and social justice. Meanwhile, Catholics and Protestants are more likely to engage in charitable acts in an effort to achieve social justice. But while these factors are important, the correlation between religion and charitable behavior isn't perfect. In general, however, religion has positive effects on charity.
Another way to understand the impact of religion on philanthropy is to examine the impact on a community's socioeconomic health and viability. According to economist Brian Grim, "there are 25 churches for every Starbucks." Houses of worship provide millions of decentralized services, from free or below-market space to sponsorships for Boy Scouts. Moreover, they provide cash and in-kind support for neighborhood causes.
Researchers have also shown that people with religious belief are more charitable than non-religious people. They give more money to charity than non-religious people. However, Christians, Hindus, and Muslims are the least likely to donate to charity. However, the results indicate that a religious individual's generosity is closely related to their level of faith. This association has implications for philanthropy and charity.