The Critical Role of Philanthropy in American Society

A recent Forbes article by David Bowermaster highlighted Vice Presidential candidate J.D. Vance's critiques of Big Philanthropy, including his perspective on the influence and operations of large philanthropic organizations.

In past interviews and speeches, Vance argues that these entities, such as the Ford Foundation and the MacArthur Foundation , promote radical ideologies and evade taxes.

This conversation may not rise to the top of political punditry as we head toward the November election, but it is crucial to understand the broader context and contributions of Big Philanthropy – and the impact of all philanthropy.

Simply put, no matter the outcome of the Presidential election, philanthropy must be preserved and celebrated.

The Importance of Philanthropy in the United States

Philanthropy, at its core, embodies the values of altruism and community support, addressing needs that are often unmet by public and private sectors. The Giving USA 2023 report revealed that American individuals, bequests, foundations, and corporations gave nearly $500 billion to U.S. charities in 2023.

Of that nearly $500 billion, foundations -- which include large and small philanthropic organizations -- account?for about 21%, just over $105 billion. The beneficiaries of foundations are diverse and widespread, including disadvantaged communities and underserved populations.

It’s difficult to consider that initiatives aimed at creating jobs and opportunities are not needed.

Or that healthcare initiatives improve access to medical services in medical deserts, as well as address maternal, newborn, and child health, is radical. ?

Or that environmental grants to support conservation efforts and sustainable development projects that benefit future generations is problematic.

All forms of philanthropy – big and small – respond to the needs of society and those most in need. Significant cutbacks on philanthropic grants would adversely affect the most vulnerable members of society.

The Impact – From Historic Change to Local Needs

Large philanthropic organizations, such as the Ford Foundation, Pivotal Ventures (Melinda French Gates’s new organization), and The MacArthur Foundation have the capacity to tackle systemic issues on a grand scale. These organizations often focus on addressing root causes rather than merely alleviating symptoms, driving significant social change over the years.

As such, the historical impact is immense. As an example, the Ford Foundation played a crucial role in the U.S. civil rights movement by funding key organizations such as the NAACP Legal Defense and Educational Fund, the Southern Christian Leadership Conference, and the Congress of Racial Equality. Their support helped to advance desegregation and voting rights, leading to landmark achievements like the Civil Rights Act of 1964 and the Voting Rights Act of 1965.

Fast forward to today, and we find Pivotal Ventures, via Melinda French Gates, committing $1 Billion to protect women’s rights, including reproductive freedom, advance gender equity, and support women’s health.

The impact is immense. But often, the importance lies beyond sweeping changes and is focused on supporting local organizations closest to the need.

All Philanthropy, Big and Small, is Essential

Not all philanthropy is big philanthropy, but all philanthropy is relevant to those who receive it.

Close to my heart is the impact local organizations have in communities and neighborhoods. Large foundations provide a supportive backdrop that enhances the overall effectiveness and reach of smaller, community-based organizations.

This interconnectedness underscores the importance of a holistic approach to philanthropy, where both large and small players work together to address societal challenges.

As the Ford Foundation works to reduce poverty and injustice globally and strengthen democratic values, organizations such as The Chicago Community Trust Fund execute initiatives such as “We Rise Together,” which focuses on addressing the economic disparities of Black and Latine communities by providing grants and resources to small businesses, workforce development programs, and affordable housing initiatives.

As Melinda French Gates and Mackenzie Scott donate billions to tackle women’s issues across the globe, including abortion rights in the U.S (through Pivotal Ventures and Yield Giving , respectfully), it’s organizations such as Planned Parenthood of Illinois that are driving campaigns to meet the challenges of the increasingly hostile sexual and reproductive health care landscape and provide high-quality compassionate health care to all who need it.

As a donor collaborative of 22 donors, including The MacArthur Foundation and Ford Foundation, created Press Forward and committed $500 million to strengthen communities and democracy by supporting local journalism, it’s the local chapters in 17 communities on the ground that are assuring communities are better informed about their health, government, local educational and professional opportunities, and other essential news.

Is Government Intervention the Answer?

In an interview with Tucker Carlson, Vance suggested seizing the assets of the Ford Foundation and redistributing it to “people whose lives are being ruined by their radical open-borders agenda … give it to angel moms who have lost a kid thanks to the Ford Foundation’s ideas.”

The absence of large-scale philanthropic support would lead to greater reliance on government intervention. Those with conservative points of view would generally not trust the government to redistribute funds. ?

Nor would most Americans. According to the Pew Research Center , as of April 2024, 22% of Americans say they trust the government to do what is right “just about always” or “most of the time.”

Philanthropy was created and continues to be needed because of holes in government intervention. As such, the government continues to look at philanthropy to help address and solve community and social problems.

Rather than think of philanthropy as a give and take to political ideas, it should be thought of as complementary to the role of government.

Philanthropy is There No Matter Who is in Office

Philanthropy has a critical role to play in our society and can be counted on regardless of political winds or leadership.

With each administration – and for that matter, each generation – we will see change and evolution. The one constant over decades has been philanthropy. It’s truly a part of our American social fabric.

By taking risks that other sectors cannot and focusing on long-term solutions, philanthropy drives innovation and social change, fostering a more equitable and just society. The absence of these critical resources would leave a significant gap in our social fabric and lessen support for those who need it most.

What makes America great is in part the work philanthropy does to respond to problems in communities and helping neighbors meet critical needs.