What Should Philanthropy Do Now?

Give, Give, and Give More

Well, if it isn’t already clear, whether it’s bluster, defensible, and/or real, this administration intends to tear everything down. Unlike the past administration that focused on “building back better,” the theme of this administration appears to be “tear it all down, now.”

Photo by Jeremy Dorrough on Unsplash

Instead of bipartisan policymaking, the focus is on firing, removing, freezing, cutting, deporting, and eliminating. In my opinion, the long-term outcomes of this era will be disastrous for communities most in need of support. Communities most affected by historical racism, destructive trade agreements, speculative real estate schemes, and corporate extraction that governments, in recent decades, have tried to curb - whether they be Republican or Democratic. Diverse versions of communities will be affected including working-class white ones, historically marginalized Black and Brown ones, and even some that might include some of the upper 5% of Americans typically immune from this kind of hijinks.

From what I can tell, only the 1% of America will benefit from this government. That is why we see so many of the most famous representatives of the 1% kissing the ring of the new president.

This version, the MAGA-MAHA-Musk government, seeks to take us back to the 1830s when we were a smaller, whiter, weaker, more isolated, and substantially less relevant country. An era that preceded the robber barons that created our philanthropic system, at the time the only source of funding for the American safety net. Like the America of the 1830s, we had little involvement in foreign affairs, an agrarian-based economy dependent on slave labor, and did our best to nudge our way into the affairs of the powerful authoritarian governments of the time. Without any guardrails for the MAGA government, we will most certainly be “1830’s Great Again.”

So, what should philanthropy do? After all, we may find ourselves back in a period where philanthropy is the only financial resource available for caring for deprived communities across the country.

Or, we may find ourselves in a new era, where modern day thinkers and doers are able to push back on some of the demolition going on in Washington, D.C.

Either way, we can assume that sectors of society commonly managed by governments (even in America) will degrade - such as public health, education, environmental protection, and human rights. And, of course, the organizations that have serviced, advocated for, and built these sectors will suffer… unless… philanthropy fills some of the void.

But for philanthropy to fill the void, we will need to jettison some traditional mindsets that have prevented us from stepping up during periods of crises and/or government retraction.

1. Redefine Legacy - Many foundations include “long-term legacy” as part of their goals. For reasons (that I personally cannot explain,) the foundation becomes what wealthy individuals and families want to be known for. The foundation’s existence enhances the brand of wealthy families in communities where this matters. But, can we shift our thinking about legacy? What if your legacy was tied to a period when your family stepped up - took on the challenges of our time - and purposefully risked spending down the foundation? Imagine a legacy where people talk about how you and your family stepped into the gap created by this administration and bolstered organizations that saw little hope for survival. This could be your true legacy.

2. Live with a Lesser Version of You - For perpetual foundations, I know that you feel secure and safe when your endowment is growing (or at least maintaining). I know it can be scary, seemingly irresponsible, to give more than 5% each year - risking the perpetuity in the future. But, in times like this, our future is uncertain. All we know is what we are dealing with today. Do you want the problems being created by this administration to compound over time? Will you have the resources necessary to take on these challenges in the future anyway? They could be far larger if you don’t act now.

   Instead, challenge yourself to celebrate giving - real giving - that goes beyond the amount of capital that your investments can produce.

3. Listen to What Communities Leaders Actually Need - This recommendation will challenge most trustees, staff, and grantees the most. We have found that when we ask what grantees need they typically tell you what they think you will give. This back and forth is a result of a system built on the deprived level of giving that donors historically give in an effort to protect their assets. The good news is, you can move beyond this construct. As a Stupski Foundation board member recommended to me once, look at the five and ten year plans of your grantees and fund them. Push your self to give a one-time gift that equals the five year request of an organization. You will need to initiate this because the grantees will not have the courage, given the historic power differential, to ask you directly.

Clearly, these aren’t unprecedented times. As David Brooks points out, the 1830s are likely our precedent for how this government will behave and the footprint that the United States will have when the administration leaves office. We will be smaller, less relevant, and more deeply divided among the haves and have nots.

But one thing is unprecedented — the historic $2T in philanthropic wealth waiting on the sidelines. Let this be a time to celebrate how we unleashed those assets, rather than letting them sit for things to only get worse.

Think about it…

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