Introduction
Whenever I have been present at a public address in which the speaker seeks to provide a definition for philanthropy, the Greek roots of the word are brought up: PHILIEN ("to love") and ANTHROPOS ("mankind"). But, in teaching about philanthropy I have become acutely aware that the definition, "to love mankind," though useful, is insufficient.
The best definition I have encountered is the creation of Bob Payton, Professor of Philanthropic Studies at Indiana University. Bob defines philanthropy as VOLUNTARY ACTION FOR THE PUBLIC GOOD.
Implicitly, philanthropy involves something happening, a result of action.
The action is voluntary. It is a matter of free will. It is not mandated. Whether our action is to supply time and ability or resources such as money or other property, the choice to do so is ours alone.
And, the action is directed to the public good. It is not inherently self-serving (as is the case in private sector, "for profit" endeavor) and it is not mandated by law (as is the case in government controlled activity).
Voluntary action for the public good largely occurs in the arena we know as the "third" sector. (We also know the sector as the independent sector, the voluntary sector or the "non profit" sector. Each name for the sector is useful but we have yet to find one that covers all aspects of its nature.)
This sector is composed of voluntary associations, formal (organized as entities under the law) and informal.
Thus, the title of this paper, Philanthropy and Voluntary Association, is intended to be sufficiently broad to embrace all we need to understand to be well versed in the nature of philanthropy and the third sector.
A slightly different way of thinking about philanthropy is to consider it a PROCESS. In our working definition, the operative word is ACTION. Something happens. At its simplest, money or other aid is provided to an individual in distress. This is CHARITY at its most basic. It is voluntary. It involves doing something useful to benefit another. Helping people in distress to be free of that distress benefits the public good. So, it fits within our definition of philanthropy.
But, more frequently our beneficent actions are carried out through the work of a voluntary association. We may volunteer or give resources or both, but the work we are supporting for public benefit is accomplished through the voluntary association. So, in the PROCESS of philanthropy we have the notion of the DONOR and the DOER. At its simplest, this may be one and the same. But, as the process becomes more complex there tends to be more of a distinction. For example, the individual who sends a check at year-end to the Salvation Army is a donor and may well have no other involvement. The workers (DOERS) are the volunteers and paid staff of the Army.
The notions of philanthropy as voluntary action for the public good and of it as a process involving donors and doers, and of voluntary association as the principal arena in which the philanthropic process occurs, provide the foundation for the material that follows.
In that material, we will look at philanthropy and voluntary association largely from a historical perspective, although at times we will digress into consideration of other material, some of a speculative nature and some derived from recent research.
It has been interesting to me that a number of overarching elements or themes may be traced in the historical development of the notion of philanthropy. Although many have origins thousands of years ago, the issues they address continue to be of concern.
1) One element is the matter of "charity." This is the notion of relief of suffering and distress. We need to understand how it has evolved from its religious roots, particularly Judeo-Christian roots, to contemporary developments such as the role of government (the "Welfare State") and the private sector ("charities," the typical 501 (c) 3s which accomplish much charitable work, and for-profit enterprise which helps address the underlying causes of the problems addressed by charity through job and wealth creation). Our heading for this topic will be "Charity, the Judeo-Christian Tradition in Philanthropy."
2) Another element, closely related to charity, is the matter of coping with beggars. Do we subscribe to the ethic of indiscriminate charitable giving to those who approach us claiming distress and hardship? Or do we give only to those we deem "deserving?" Is it to be "welfare" or "workfare?" Since it is the accepted historical term, we will consider this matter under the title "Almsigving."
3) A third major element is the notion of action directed at overall improvement of the quality of life for a people. Unlike charity, which has its roots in the Judeo-Christian tradition, this form of philanthropy comes to us from the Greek and Roman traditions. Rather than individual people, the object of giving became the people-at-large. Philanthropists provided public amenities such as a stadium or a public bath. Our title here will be "Philanthropy, the Greek and Roman Tradition."
4) Fourth, it is interesting to trace the development of voluntary associations as the instrument for philanthropic enterprise. From the early example of Plato’s Academy (Athens, 387 BC) to the extraordinary institutions we enjoy today, we can trace the effect of voluntary associations upon our culture and well being. We’ll call this study "Voluntary Associations."
5) A fifth area of great importance and interest is what many call "the Democratization of Philanthropy." This phenomenon, we know, accounts for a great share of modern philanthropy. Contributions from individuals (annual giving and bequests) account for 85% of contemporary giving in the United States. Only 15% comes from institutional sources (foundations and corporations).
It is a fact that much of the giving from individuals comes from folks of modest means. We know that nearly three fourths of American households report making one or more contributions and that in 1993 the average gift from these households was $880 or 2.1% of income.
We can trace this extraordinary development in North American philanthropy from its early roots in the tradition of mutual aid and in the development of the liberal Protestant churches to the dramatic emergence of fundraising among colleges and universities and through nationwide efforts of such organizations as the Red Cross, Salvation Army and the federated campaigns we know today as the United Way.
6) Another important matter worth review is the development of corporate philanthropy. A twentieth century phenomenon, corporate giving accounts for roughly a third of institutional giving. But, many say "the business of business is business." They would prefer that corporations leave philanthropy to others and stick to earning profits for owners and providing jobs for employees.
7) Philanthropy operates principally through activity of the "Third Sector." To understand philanthropy, then, we need to understand the "Third Sector." We need to understand its structure, interrelationships with business and government and we need to look at the dimensions of philanthropy itself. This section is based upon contemporary rather than historical input. We’ll call it "Philanthropy and the Third Sector."
8) Although we tend to think of voluntary action for the public good as charitable or beneficent acts, the fact is that it is as and through advocacy that philanthropy, voluntary action for the public good, may have the greatest impact. We do know that every major social reform movement of this century, and the last, has its origin in voluntary action directed to the public good. This section we will title "Advocacy."
9) Finally, we can trace (particularly in this century) the notion that philanthropy---voluntary action for the public good---may be an essential element for a civil society. We’ll title this section, "Philanthropy and Civil Society."
