Philanthropy in Education

Development of Modern Philanthropy

Charitable giving in America can be traced to the early colonists. Although their altruism may have been somewhat associated with a desire to memorialize themselves, the giving was substantial and served society's needs. Giving in America mirrored the traditional giving of civilization at the time. Paul Boyer credited Benjamin Franklin with advocating that both the rich and the less well off should engage in philanthropic activities. Boyer wrote that by the mid-1770s, giving from one's own stores of wealth, whatever they might be, to the needy was an entrenched disposition in New England communities. As the country developed in the 1800s, citizens expanded their gift giving by creating private associations, such as orphanages, and maintaining contributions to schools and alms houses. Women were a critical component of multiple philanthropic institutions. For example, Dorothea [Page 700]Dix sought treatment for the mentally ill; Jane Addams and Lillian Wald established settlement houses for immigrants. These reformers who focused on social responsibility promoted assistance efforts to remedy multiple social woes and obtained funding to support their endeavors.

One critical concern is related to when charitable giving became differentiated from philanthropy. The economic growth in the United States in the late 1800s, a source of great wealth for industrialists of the time, was the likely catalyst. The development of the business corporation model emerged in this period and eventually served as the model for philanthropic development.

Philanthropic giving can be traced to the turn of the 20th century and the efforts of men like Andrew Carnegie, John D. Rockefeller, Sr., John D. Rockefeller, Jr., Henry Ford, and Andrew Mellon. These industrial giants adhered to beliefs that the rich were trustees of wealth and that such wealth should address social issues and contribute to the alleviation of identified ills. Philanthropy (the word is derived from the Greek, meaning to love people) offered the wealthy a means to distribute grand sums to a wider range of recipients than did the traditional charitable giving of the time. Through the creation of organizations modeled on the successful business model (establishing trust and endowment funds) of the late 1800s, donors were able to gift large sums of wealth to address causes and effects of specific societal phenomena. These founders of modern American philanthropy established a format for giving by the wealthy for the 20th century. By 1930, approximately 150 foundations were active in the United States; Boyer reported that by 2000, more than 42,000 foundations existed. Of course the subset of philanthropic foundations supported by high-profile business wealth remains active in society, but the majority of active foundation support is a group of smaller organizations created by wealthy families at local levels. The recipients are also local; in this respect, these private foundations supplement the community foundations.

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