By Jeff Jacoby
Thursday, January 28, 2016
‘The Almanac of American Philanthropy” is something new
under the sun: a sweeping reference guide to one of the most remarkable
institutions of American life — private charity. Published by the Philanthropy
Roundtable, and running more than 1,300 pages, it is the first definitive work
on the history, variety, and impact of private giving in the United States.
The scope of American philanthropy is unparalleled
anywhere on Earth. In 2014, Americans gave nearly $360
billion to charity, the highest total ever recorded. Most of it didn’t come
from plutocrats and vast charitable endowments. Though the good works of
private foundations, such as the Bill & Melinda Gates Foundation or the
Ford Foundation, draw plenty of notice, they account for only 14 percent of
charitable giving in this country. And just 5 percent comes from corporations.
The overwhelming share of that $360 billion is donated by
individuals. Not everyone gives, of course, but in this country those who don’t
are decidedly in the minority. Nearly seven out of 10 American households
donate to at least one charitable cause each year, at an average annual rate of
about $2,600. Philanthropic giving is a quintessentially American behavior, and
always has been. It is also a radiant example of American exceptionalism. The
new Almanac ranks 14 leading industrial countries by the amount of charity their
citizens give yearly (calculated as a percentage of GDP). Americans were by far
the most charitable — roughly twice as generous as Canadians, Spaniards, and
the Irish, for instance, and more than 20 times as apt to give as Germans and
Italians.
As Karl Zinsmeister writes in the Almanac’s lively and
enlightening introduction, “philanthropy is a huge part of what makes America
America.” Huge in its moral and social impact, of course, but also huge as a
matter of economics. The nonprofit sector in the United States employs 11
percent of the US workforce and supplies 6 percent of national GDP — and that
doesn’t include the economic impact of nearly 8 billion hours of service by 63
million American volunteers, an impact that last year was worth an estimated $184
billion. America’s formidable “military-industrial complex,” Zinsmeister notes,
isn’t nearly so formidable when compared with the American philanthropy
complex: Nonprofits surpassed defense as a share of the US economy more than
two decades ago.
For those raised to regard charitable giving as
indispensable to meaningful lives and healthy societies, it can come as a jolt
to discover not just that some people give little or nothing to charity, but
that there are those who actually disparage charitable giving itself. In a 1964
interview, Ayn Rand said that her views on charity were “very simple: I do not
consider it a major virtue and, above all, I do not consider it a moral duty.”
John Steinbeck, whose political views were as far to the left as Rand’s were to
the right, also disdained philanthropy. “Giving is a selfish pleasure, and in
many cases is a downright destructive and evil thing,” he railed.
Rationalizations for not donating certainly aren’t hard
to find. “Most People Shouldn’t Be Giving To Charity,” advises an essay at the
Business Insider website. A writer at Slate makes “The Economic Case Against
Philanthropy.”
Yet anyone who doubts the amazing power of charity to
work prodigies of good in the world need only open “The Almanac of American
Philanthropy” to encounter a myriad of illustrations. The book ranges across
four centuries of charitable accomplishments, documenting the fantastic
profusion of philanthropic achievements that have advanced human health,
alleviated poverty, promoted the arts, protected nature, deepened learning,
supported religious communities, and fed the hungry at home and abroad. The
charitable causes to which Americans have rallied and donated spans a
mind-boggling spectrum — from abolishing slavery to combating smoking, from
ministering to prisoners to encouraging transatlantic flight, from creating the
Red Cross to caring for aged sailors, from protecting endangered species to
building orchestras
. . . and on and on.
Zinsmeister refutes some common criticisms of philanthropy.
To those who imagine that charity amounts to merely a drop in the bucket, he
offers this perspective: The Gates Foundation alone — which is but a small
sliver of US philanthropy — distributes more overseas assistance than the
Italian government. And just one of the Gates endeavors, an overseas vaccine
program, will save the lives of 8 million children. Yet as impressive as that
is, it is dwarfed by the aid sent to the needy overseas by members of US
religious organizations, which devote four and a half times as much to the
effort as the Gates Foundation does.
“Indeed, private US philanthropic aid of all sorts sent
overseas now substantially exceeds the official foreign aid of the US
government,” Zinsmeister writes. Some drop. Some bucket.
Sometimes philanthropy is pooh-poohed because of its lack
of uniformity and clear direction. But in the Almanac’s language, “a riotous
patchwork can be a thing of a great beauty.” Consider Goodwill Industries,
which provides workforce training to 26 million beneficiaries annually.
Goodwill’s 3,000 stores take in more than $5 billion in revenue. And yet its
operations are not standardized. Goodwill’s 165 regional branches are
autonomous in policy and funding, and each has its own board of directors.
Habitat for Humanity and the Appalachian Mountain Club are other philanthropies
that embrace a nonmonolithic “patchwork” culture, and have achieved outstanding
success.
There are those whose first instinct is to turn to
government when a social ill appears. Of course there are some functions for
which government is well-suited. But on the whole, private philanthropic
problem-solving will always be more nimble, more innovative, more
individualized, and more efficient than anything the government can do.
“In the United States I am even more struck by the
innumerable multitude of little undertakings than by the extraordinary size of
some of their industrial enterprises,” marveled Alexis de Tocqueville upon
traveling through America in the 1830s. He wrote of his “daily astonishment” at
the “immense works” carried out by the abundance of voluntary associations
Americans formed.
Nearly two centuries later, the vast diversity of private
charity in this country is as astonishing and fruitful as ever. Lord knows we
get plenty of things wrong in these United States, but our culture of
philanthropy remains a wonder of the world.
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