Donors to Elite Institutions Exacerbate Wealth Gap Most Americans probably think a major goal of philanthropy is to fight poverty. But a closer look reveals that giving by foundations and philanthropists exacerbates wealth inequality in the United States. Look at some of the trends: **Thousands of local fundraising groups have been created to raise private money for public schools–and almost all of them channel resources primarily to schools attended by the children of people who live in affluent neighborhoods. **Elite colleges and universities are the major beneficiaries of multimillion-dollar gifts, and its those kinds of donations that are a key reason giving to higher education grew 9 percent last year. Yet these institutions are so high-priced, few low-income and working-class students can afford to attend. **Arts institutions saw donations soar in the past year, according to “Giving USA,” also because of donations by the wealthy. Most of the institutions that benefit from the bulk of private donations are established institutions that cater to the upper and middle classes. Meanwhile, “Giving USA” showed much smaller gains for social-service groups and other kinds of organizations that raise money primarily from people who aren’t multibillionaires. America’s foundations and wealthiest donors give only a small proportion of their total donations to local and grassroots organizations. Philanthropy has always benefited such elite institutions, but as the richest Americans have gotten richer, they are creating an even greater gulf between rich and poor. Just look at the giving patterns of most of the people who have signed the Giving Pledge, the effort by Bill and Melinda Gates and Warren Buffett to encourage their fellow billionaires to give at least half their fortunes away. It’s the same causes–colleges, hospitals, and other elite institutions–that keep getting money from the richest Americans. It’s not only the Giving Pledge billionaires who are causing problems. The great transfer of wealth scholars have forecast for coming decades means that the nation will soon have more foundations that have tens of billions of dollars in assets. Gates and other wealthy foundations run by families like the Waltons, Buffets, and Bloombergs make giving decisions with limited input from anybody but a few friends and relatives of the foundation founders. We can soon expect a wave of philanthropic colossi that will allot billions of tax-subsidized dollars each year without the benefit of public discussion, citizen input, or the political process. If the past is a barometer of the future, it’s hard to imagine the new mammoth foundations or tomorrow’s wealthiest donors will do much to fight poverty, help small nonprofits or watchdog groups, or expand efforts to encourage citizen participation in our democracy. (more at link) popularresistance.org/donors-to-elite-institutions-exacerbate-wealth-gap/
Posted on: Wed, 16 Jul 2014 14:14:06 +0000
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