Philanthropy, Educational

A Brief History

America saw the first significant presence of private charitable institutions after the American Revolution, when numerous private foundations were created to serve a range of purposes in the construction of our country. While these foundations continued throughout the nineteenth century, American philanthropy as we know it today wasn't fully realized until the first contemporary philanthropists, such as John D. Rockefeller, Henry Ford, and Andrew Carnegie, created private foundations to house their fortunes. During America's industrialization, the presence of private foundations continued to grow in proportion to the accumulation of private wealth across the country. Economically prosperous periods like these, and again much later in the 1980s, are largely responsible for the growth and maintenance of the large, private [Page 571]philanthropic foundations that continue to thrive today. Since these private foundations operate without many of the same restrictions that limit other American institutions, philanthropy presents interesting possibilities for involvement across endless issue areas. Philanthropic involvement in education provides an excellent example of this phenomenon.

Role in Education

Even the earliest American philanthropic institutions had connections to education, since some of the country's first schools were created by the contributions of private donors and local religious organizations. Throughout U.S. history, private charitable contributions from individuals and organizations have supported schools. Today, educational philanthropic contributions constitute less than 1 percent of the total K-12 spending. However, there are currently over 600,000 philanthropic foundations in the United States with approximately 25 percent that provide financial assistance to schools. To understand the multiple roles that philanthropists continue to play in creating, shaping, and supporting American public schools, it's important to understand the multifarious nature of their involvement.

While early educational philanthropy was primarily generated by personal contributions of time and service, the scope and influence of educational philanthropy has grown significantly. Today, there are nearly as many types of organizations as there are organizations themselves. These groups are categorized in a number of different ways. They may be think tanks, advocacy organizations, networks, researchers, data gatherers, grant makers, associations, community outreach organizations, foundations, and/or institutions. They range from small, local bodies that primarily support local causes to large, statewide and national institutions that influence broad educational reform efforts and policies.

The types of support offered by philanthropic organizations also differ based on the group's mission. While some philanthropists support education with unconditional financial contributions, an increasing number of associations have a more “hands-on” approach to educational philanthropy. In these cases, financial support is often tied to the creation or implementation of certain educational reforms.

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