Why Effective Philanthropy Isn't Democratic

Monday, January 4, 2010 by Betsey Russell
I've been mentally wrestling lately with the tension that appears to be growing in our country between democracy and philanthropy. (It's a fun mental exercise when one is pretending to nap in order to avoid an excess of familial love over the holidays.)

For those of you who are sticklers for semantics, in my mental arguments, I consider democracy in the purest form: one person, one vote. I also simply "philanthropy" to mean "charitable giving." 

The Chase online giving debacle and the concept of "voting" for philanthropic decisions brought this question to a head for me. After announcing with great fanfare that they would provide a transparent way for Facebook users to determine how $4 million in corporate philanthropy would be disbursed, Chase took down their public scoreboard and reined in their process when the top vote-getters turned out to be causes that Chase found to be too controversial. The result has been some significant brand backlash for Chase. 

But even if Chase hadn't chickened out, would this approach to giving really have been effective? What knowledge did the thousands or millions of voters bring to the process other than the know-how to click a button when asked? 

For me, it underscores something that I've stated before: effective philanthropy is NOT a democratic undertaking. Instead, philanthropy is a very personal method of providing support to a cause or addressing an issue that resonates with the giver or givers. While I do believe that a variety of educated perspectives help strengthen understanding and result in better decision-making, I think opening that process to the masses simply makes it a free-for-all or popularity contest. 

One of the best means that I've seen of combining a focused approach AND a variety of perspectives to make effective giving decisions takes place at the Atlanta Women's Foundation. Their grantmaking committees extend beyond the board of directors to include women of all races and from all economic strata. These women gather together several times over the course of the grantmaking process, attend site visits together, and have passionate, intense discussions about which organizations will have the greatest impact on Atlanta's most vulnerable women and children. It's a heart-wrenching process that I've been through more than once. 

And there is never, ever, a single vote taken.

It's not a democracy. It's an educated, informed consensus. It leaves open questions and possibilities for the next go round, and engages its participants far beyond a simple "aye" or "nay." It's very hard work — and educating broader audiences about its effectiveness is even harder. But it beats a popularity contest any day. 


Comments for Why Effective Philanthropy Isn't Democratic

Tuesday, January 5, 2010 by Suzanna Stribling:
Betsey, While I agree that giving is very personal and that effective grantmaking requires research, engagement and evaluation, there's a middle ground here. See the interesting conversation going on at Tactical Philanthropy (http://tacticalphilanthropy.com/2009/12/best-charities-for-last-minute-giving) about last-minute giving.
Tuesday, January 5, 2010 by Betsey Russell:
Good point, Suzanna. There are several good third-party sources out there for evaluating effectiveness. Too bad Chase didn't incorporate them into its process somehow. Maybe Pepsi will in their upcoming online philanthro-voting campaign. (Check out the Ariel Schwartz blog on FastCompany.com for that story.)
Tuesday, January 5, 2010 by Evan:
Philanthropy is not so scientific. Even the most educated and experienced grantmakers are, in effect, hoping and guessing that their support will make a difference (regardless of the fancy matrices they use to measure such things). Perhaps all-out democracy isn't the best method either, but why wouldn't achieving popularity among "the masses" be a good enough reason to support an org?
Tuesday, January 5, 2010 by Betsey Russell:
Thanks for your comment, Evan. You make a good point that raising popular awareness for an organization can be a worthy endeavor in and of itself. If nothing else, it could leverage a foundation's grantmaking or free foundation funds to support other causes.
Wednesday, January 6, 2010 by Maggie Gunther Odborn:
CREDO mobile is acompany who's commitment to education and advocacy in partnership with their consumers also demonstrates the right way to democratize philanthropy. Each month I recieve reading suggestions and policy updates which I may ignore or get involved with. The giving comes at the end of each opportunity for engagement. Charity and democracy go hand in hand where I believe philanthropy "love of brother" requires and commitment to the hypocratic oath to first do no harm and to remain in the relationship and not just experience the transaction. CHASE was all about transactions but maybe it does at least open the possibility for the masses to get to know some of the organizations doing good.

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