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How altruistic are charities and philanthropy?

The evolution of philanthropy witnessed the rise of large-scale organized efforts to address social problems.

By:
Shanti Banus
September 25, 2023
How altruistic are charities and philanthropy?

When we think of charity and philanthropy, images of benevolent billionaires, heartwarming campaigns and the promise of positive change often come to mind. These acts of altruism are celebrated in society as symbols of hope and compassion. But what if we told you that, behind the scenes, the world of charity and philanthropy is far from perfect? In this article, we'll strip away the glossy veneer and take a critical look at why charities and philanthropic organizations often fail to live up to their lofty ideals.

Understanding charity and philanthropy

Before delving into its limitations, let us clarify what we mean by "charity" and "philanthropy". Charity usually refers to acts of giving, to individuals or small groups, driven by a sense of compassion and altruism. Philanthropy, on the other hand, involves more systematic and organized efforts to address social problems, often carried out through large organizations or foundations.

Both terms have deep historical roots. "Charity" traces its etymology to the Latin word "caritas," meaning "esteem" or "affection." "Philanthropy" also finds its origins in the Greek word "philanthrōpía," meaning "kindness, humanity or love for humanity." These linguistic roots underscore the inherent goodness associated with these concepts.

Historical evolution of charity

Charitable giving has long been linked to religion, with many religions encouraging their adherents to help the less fortunate. Historically, these acts of charity tended to be local and community-based, offering immediate help to those in need. However, the evolution of philanthropy saw the rise of large-scale organized efforts to address social problems. This shift marked the birth of modern philanthropic practices. For example, modern fundraising as we know it today began in the 18th century at Harvard University.

The influence of the rich

When we speak of philanthropy, it is impossible not to immediately associate it with an activity exclusive to the wealthy, used as a "veil of benevolence to cover up corporate misdeeds. We often think of philanthropy as something that only the wealthy do to make themselves look good or hide their mistakes. Let's face it, it's usually the wealthy who are in a financial position to pay for a photo shoot at a children's hospital. But philanthropy is about much more than money. Giving your time, your skills or volunteering also counts as philanthropy. In the world of giving, everything helps, no matter how small.

Still, many people believe that money alone can make a difference, leading them to believe that philanthropy is only for the wealthy. While donations from the wealthy can do good, they also raise questions about fairness. To understand this, we must look at where their money goes. There is a lot of philanthropy, but only a small portion goes to people in need. Most of the money goes to things like the arts, sports, education and healthcare.

You may be asking yourself, "What's the problem with this?" Well, the problem is that a large portion of the money that goes to education goes to fancy, elite universities attended mostly by wealthy people. Simply put, it is common for the wealthy to support causes that they are a part of or that help them personally: "Much of elite philanthropy is about elite causes."

Let's be clear: philanthropy has brought immense benefits to humanity, such as Bill Gates funding research to fight malaria and polio, which has made it possible to vaccinate 2.5 billion children. However, it is essential to see the other side of the coin: large philanthropic donations overshadow other pressing problems in the Global South.

These donors often come from privileged backgrounds and do not understand the real needs and priorities of local communities. This situation can lead to what is called the "white savior complex. "white savior complex", in which well-meaning but totally unqualified individuals from privileged backgroundswhere well-meaning but totally unqualified individuals from wealthier backgrounds attempt to solve complex problems in foreign lands, often reinforcing harmful stereotypes.

Moreover, it is unrealistic to assume that large donations come without conditions. In countries of the global north, these contributions are often accompanied by specific agendas and can even influence the democratic process. And let's not forget the significant tax deductions that come with them. Capitalism has a lot to do with this, as large disparities in wealth allow a few to have an inordinate impact on charitable and philanthropic activities. To summarize, traditional philanthropic practices can sustain white supremacy, patriarchy, classism and other oppressive systems.

Recognize the limitations of philanthropy and charitable organizations.

An obvious limitation ofcharities and philanthropic organizations is their tendency to focus on short-term solutions . While immediate help is crucial, long-term systemic change often requires a more nuanced approach. Problems of accountability, transparency and the occasional occurrence of fraud within these organizations have also tarnished their reputation.

The dark side of charities

While charities and philanthropic organizations are often associated with noble intentions, it is important to recognize that they are not all the same. Just as there are sincere and high-impact charitable initiatives, there are also cases of fraud and mismanagement that can tarnish the reputation of the entire sector.

Charities, by nature, depend on the goodwill and trust of donors. Unfortunately, this trust can sometimes be exploited by unscrupulous individuals or organizations. Cases of fraudulent charities and embezzlement scandals have hit the headlines, leading to questions about the effectiveness of regulation and oversight in the charitable sector.

Charity fraud is not a victimless crime. When funds intended for good causes end up in the wrong hands, it not only deprives those in need, but also erodes public confidence in charities. People are very hesitant to donate, fearing that their money will not be used as intended. Ultimately, this can hinder the ability of legitimate charities to have a positive impact.

To combat charity fraud, donors must conduct due diligence before contributing. This means researching organizations, reviewing their financial transparency, and ensuring that they are registered and in compliance with relevant laws and regulations. Various watchdog organizations and online resources can help donors make informed decisions. Check out this article and find out what to consider when making a donation.

Balancing skepticism towards philanthropy with compassion

While it is important to be vigilant against fraud, it is equally vital not to let skepticism deter us from supporting authentic charitable causes. Cases of fraud should not overshadow the enormous good that charities and philanthropy can achieve when they are driven by altruistic motives and a commitment to transparency.

Recognizing the existence of charitable fraud is a necessary step in improving the effectiveness and integrity of charitable giving. By being aware of potential pitfalls and exercising caution, donors can ensure that their contributions truly benefit those in need. In addition, advocating for greater accountability and transparency in the charitable sector can help prevent fraud and ensure that philanthropic efforts are systematically directed toward meaningful, high-impact initiatives.

Effective Altruism: A New Perspective

In the midst of these shortcomings, a concept known as effective altruism has emerged. Effective altruism encourages individuals to maximize the positive impact of their charitable giving by carefully considering where their resources can make the most difference.. It seeks to combine rationality and empathy in the pursuit of meaningful change.

Notable cases, such as the work of organizations like Give Directly and Against Malaria Foundation, exemplify the principles of effective altruism in action. These organizations focus on evidence-based, high-impact interventions to address poverty and disease.

Alternatives to charity and philanthropy

While charities and philanthropic organizations are vital, they are not the only avenues for positive change. Advocacy and political change can exert enormous influence on societal problems. In some cases, direct action, where individuals are actively involved in solving problems, can be more effective than traditional charitable giving. Another alternative is community-focused fundraisinginitiated by a group of racialized individuals who are motivated to radically change the way fundraising is done in the nonprofit sector.

Conclusion

Charity and philanthropy, however well-intentioned, often fail to deliver on their promises. The world of philanthropy is marked by complexities, power imbalances and constraints. As we face these challenges, we must take a more critical and holistic approach to addressing the problems of our time.

While effective altruism offers a promising path, it is not a panacea. We must also explore alternative avenues to create meaningful change. Above all, we must maintain a keen sense of accountability, transparency and humility in our efforts to make the world a better place. After all, the road to true social justice and equity is fraught with obstacles, and it is up to all of us to navigate them with wisdom and compassion.

Edited by

Raquel Rojas

How altruistic are charities and philanthropy?
Shanti Banus
Community Manager & Writer
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