International Philanthropy

By Jessie L. Ulmer

Graduate Student, Grand Valley State University

Definition

International Philanthropy consists of any organization or group of people dedicated to serving other countries for the general purpose of increasing global understanding, peace, security, foreign policy, human rights and civic development. Examples are the Carnegie Endowment for International Peace, the United Nations and the Peace Corps (O'Neill, 2002).

Groups practicing international philanthropy may be nonprofit organizations, governmental organizations or foundations. Nonprofits serving the international community generally promote world peace through cultural understanding, advocating human rights, development of democracy and development of capitalism and provision of basic needs. Governmental organizations will likely provide relief efforts in times of need, development of capitalism and democracy and foreign policy. Foundations may have their own programs serving the international community or may donate the funds needed for nonprofits to continue their own missions. Each of these three types of organizations must rely on each other and collaborate in order to achieve their goals of international giving.

Historic Roots

While philanthropy has deep roots in the history of man, international philanthropy did not truly emerge until international travel became available. Beginning with the industrial revolution, the airplane and man's desire to help those in need, philanthropy grew to become one of the backbones of international trade, communications and development.

The Industrial Revolution occurred late in the 1800s in Britain and early in the 1900s in the United States. The industrial revolution brought the world all types of new machinery, textiles, coal, steel and new modes of travel. The world became smaller in a significantly short amount of time; nations communicated by telephone, traded new merchandise and traveled by faster modes of transportation such as the train or airplane.

The revolution set the stage for the boom in international philanthropy after the major world wars. The industrial revolution fostered the growth of an elite class of society, such as Carnegie, Rockefeller and Kellogg, who started and propagated businesses and began the wave of American economic expansion. This social class of men acquired great wealth and dedicated part of their fortunes to start foundations that prosper today. Their foundations provide funding to the United States and the world for social good, world peace and development (MSN Encarta).

After World War I, people of all nations, exploded into philanthropic motives trying to understand and solve conflict and address human rights issues. Relief aid was in high demand for devastated countries during this time, allowing for the establishment of the Red Crescent, which provided medical care, and CARE, which provided food and supplies (O'Neill, 2002).

John F. Kennedy (1917-1963 ) was America's youngest president and very active in foreign policy and relations. He developed the Foreign Assistance Act (FAA), which allotted government funds for distribution to international organizations and countries in need. The FAA was the forerunner to the United States Agency for International Development (USAID), which is now a massive funding agency for grass-roots international organizations not originating from the United States (MSN Encarta).

During the 1980s and 1990s, the growth of foundations and the technological revolution allowed foundations to more than double their funding to the international sector from $765 million in 1990 to over $1.6 billion in 1998 (O'Neill, 2002). This, in cooperation with a booming economy, permitted foundations to donate to organizations that could respond to the new opportunities and challenges such as "democratization," the growth of civil society organizations, ethnic conflict, climate change and the HIV and AIDS pandemic" (O'Neill 2002, pg 176). This shifted the focus of international philanthropy from relief aid during post-World War II to community and nations developing around the world, moving third world countries to second and first world seats. This was started by changing basic need provisions into "assistance for capacity building for indigenous non-governmental organizations" in order to develop sustainability and independence in poorly urbanized countries (O'Neill 2002 pg. 177).

Today, organizations, governments and foundations are forced to meet new challenges including economic globalization, decreasing trade barriers, increased communication through the Internet and complications with new policies and regulation regarding terrorism. For example in America, nonprofits are asked to become more aware of international financial donations. The U.S. government is requesting foundations to research in excessive detail to protect the end point of the reception of grant money in order to decrease the likelihood of terrorist cell funding (Williams, 2003). Just this issue alone has forced the nonprofit sector to respond and advocate for the provision of their services overseas. The future of international philanthropy brings opportunities for increased non-governmental organizations (NGOs) in countries needing more support than provided by the government, thus creating an environment for the public to take responsibility for their own lives and country. It also includes an increase in private funding from foundations world-wide due to globalization, causing a rise in NGO funding and a facilitation of their growth (Clotfelter and Ehrlich, 1999). Through increasing communication and cooperation between nations, international philanthropy may likely be a strong foundation for the development of world peace.

Importance

The main importance for the donating nation relates to international giving as an important aspect of national and corporate image. Corporate giving has expanded to include a vast number of international communities in order to increase awareness of particular products or services. For example, Coca-Cola, the pharmaceutical company Merk, Microsoft and Johnson and Johnson have increased giving to organizations having community impact with providing visibility of the donor's name (Clotfelter and Ehrlich, 1999). This strategy is utilized to promote a healthy image of a company that may be negatively impacting the local environment or community by collecting natural resources or production of a product. For example, petroleum companies, such as Exxon, give heavily to environmental programs which help to counteract the pollution created through petroleum use and refinement (Revkin, 2002). Overall, international giving allows the United States and other industrialized nations to spread their exports, promote globalization and save face when necessary.

The main importance to the receiving country is the delivery of needed supplies, food, shelter, clean water and developmental support for sustaining its own sources of basic needs and financial revenue. These donations of time, money and volunteers can be extremely influential for a country, locally and nationally, and can create strong, long-term partnerships and positive foreign relations. The examples set by incoming nations also set the stage for establishment and growth of a nonprofit sector and new non-governmental organizations within the host country. This is vital for the growth of world economics and civil development (Clotfelter and Ehrlich, 1999).

Cross-culturally, the sharing of supplies, knowledge, cultural values and ideals is important to the promotion of global understanding and peace. Giving on the part of a nation allows the receiving country to be open and receptive to understanding the other's culture and approach to the issues at hand. This opens the opportunity for communication and networking with other international groups.

Ties to the Philanthropic Sector

The United States has a growing philanthropic sector with strong ties to the corporate world, government and private giving such as foundations.

In regards to corporate philanthropy, the corporate world is closely linked to consumerism and globalization. As mentioned above, corporate philanthropy has a large impact on the philanthropic sector, particularly because businesses have much to gain from giving to specific organizations and programs that will advertise their products or present positive images of the companies. This philanthropy has expanded dramatically with the increase in globalization and consumerism throughout the world. Products that were once only available to the elite or to the producing country are now affordable worldwide. International corporate philanthropy helps to increase the target market for consumption and increases corporate revenue (Clotfelter and Ehrlich, 1999).

The government of any nation is likely to be involved in international philanthropy, especially in the United States, because of the strong link to foreign policy. The United States Agency for International Aid (USAID) is a governmental foreign assistance organization associated with the U.S. government and has made great strides in connecting with foreign governments to allow for national giving (United States Agency for International Aid). This giving has the potential to swing foreign policy in the direction of the United States, allowing progress with political agendas.

Private giving from large foundations, mainly built during the industrial revolution and now from the technological revolution, has acquired the capabilities to develop grassroots national and international projects and organizations to promote world peace and health (O'Neill, 2002). For example, the HIV and AIDS pandemic inspired a large number of research programs to collaborate internationally. Many of these programs have been responsible for new HIV medications and life extension for people affected with the disease (World Health Organization).

Key Related Ideas

Foreign Policy refers to governmental acts or statements that determine the position to be taken by a country in regards to another country. It is defined as "the policy of a sovereign state in its interaction with other sovereign states" (Merriam-Webster).

The Foreign Assistance Act , created by President John F. Kennedy, is the law passed by Congress in 1961 that "mandated the creation of an agency to administer economic assistance programs" (United States Agency for International Aid). Hence, the United States Agency for International Development was formed from the Act.

Globalization is the strengthening of connections between countries through technology and trade to the degree that a change in one area of the world can have a massive effect in another area of the world due to economic and basic needs reliance between international communities (MSN Encarta).

International Foundations are organizations that provide financing to programs serving the international community through grants or programs. Grants are requests for funding written by organizations in need of financial support to implement a program that serves a societal need.

International Philanthropic Organizations are nonprofit, governmental or non-governmental groups created for assisting foreign development and basic needs achievement as well as spiritual or cultural communication.

World Health is the state of disease in the world as documented by the World Health Organization. Their compiled information can be presented in comparison of country to country and can be used to measure impacts of health programs and initiatives (World Health Organization).

Important People Related to the Topic

• Andrew Carnegie (1835-1919): Carnegie was an "American industrialist and philanthropist, who, at the age of 33, when he had an annual income of $50,000, said, 'Beyond this never earn, make no effort to increase fortune, but spend the surplus each year for benevolent purposes'" (MSN Encarta).
  
• Henry Ford (1863-1947): Ford was an "American industrialist, best known for his pioneering achievements in the automobile industry. Advancing age obliged Ford to retire in 1945 from the active direction of his gigantic enterprises. Ford left a personal fortune estimated at $500 to $700 million, bequeathing the largest share of his holdings in the Ford Motor Company to the Ford Foundation, a nonprofit organization" (MSN Encarta).

• Bill Gates: Gates "is chairman and chief software architect of Microsoft Corporation, the worldwide leader in software, services and Internet technologies for personal and business computing." (Microsoft). He is responsible for the Bill and Melinda Gates Foundation, which donates to international endeavors.

• W.K. Kellogg (1860-1951): Kellogg was the "founder of the W.K. Kellogg Foundation, may be best known as the cereal industry giant and inventor of corn flakes. His familiar signature has adorned the cereal boxes of generations of families, the world over. W.K. Kellogg also is recognized as one of the United States' greatest philanthropists" (W.K. Kellogg Foundation).

• President John F. Kennedy (1917-1963): Kennedy was the "35th president of the United States, the youngest person ever to be elected president" (MSN Encarta). He also helped pass the Foreign Assistance Act and founded the Peace Corps and USAID.
  
• John D. Rockefeller (1839-1937): Rockefeller was an American industrialist and a partner in Standard Oil Company (MSN Encarta). He started the Rockefeller Foundation with a mission to "further the well-being of mankind throughout the world" (Rockefeller Foundation).

Related Nonprofit Organizations

• Carnegie Endowment for International Peace works to advance the cooperation between countries and promotes international engagement by the United States. Founded in 1910, the nonpartisan organization strives to achieve practical results ( http://www.carnegieendowment.org/ ).
  
• Doctors Without Borders brings emergency aid to victims of war, epidemics, and disasters and others in need of health care due to isolation. ( http://www.doctorswithoutborders.org ).
  
• Peace Corps was developed by President Kennedy in 1961 in response to the need for international peace and understanding. The three goals of the Peace Corps are helping the people internationally to meet their needs through trained men and women; working toward better understanding of Americans on the part of the people they serve; and working toward a better understanding of other people on the part of all Americans ( http://www.peacecorps.gov ).
  
• Seva Foundation is a small, non-profit organization dedicated to the health and well-being of people around the world, with a focus on healing the blind in India and Nepal. The Foundation believes that international service requires a better understanding of the relationship between economic and political forces as well as social, cultural and spiritual influences ( http://www.seva.org ).
  
• The United Nations was developed after World War II to help countries settle disputes and communicate efficiently in order to promote world peace and understanding through peacemaking and assistance ( http://www.un.org ).
  
• World Health Organization (WHO) is the United Nations health agency, established in 1948. WHO's objective is the attainment of the highest level of health by all people of the world. Health is defined in as a state of complete physical, mental and social well-being, not just the absence of disease ( http://www.wto.org ).

Related Web Sites

The Foundation Directory Web site, at http://fdncenter.org,offers a directory of the most well known international organizations and foundations in the world, including direct Web page links.

The NGONet Website, at http://www.ngonet.org, provides information about NGOs active in Central and Eastern Europe. It includes an online library, a calendar of events, training program news and a bulletin board.

The United States International Grantmakers Web site, at http://www.usig.org, facilitates international grantmaking by providing practical information and resources for both grantmakers and grantseekers. The site is offered as a free service, supported by grants from members of the national Council on Foundations.

The USAID Web site, at http://www.usaid.gov/about_usaid/, is the site of the United States Agency for International Development (USAID), offering links to governmental and non-governmental organizations concerned with international development and to related publications and resources.

The Worldwide Initiatives for Grantmaker Support (WINGS) Web site, at http://www.wingsweb.org, provides a listing of a global network of more than 85 membership associations serving grantmakers and support organizations serving philanthropy. Click the link above for map of WINGS members around the globe.

Bibliography and Internet Sources

Clotfelter, Charles, and Thomas Ehrlich. Philanthropy and the Nonprofit Sector: In a Changing America . Indianapolis: Indiana Press, 1999. ISBN: 0253214831.

Merriam-Webster Dictionary: Definition of Foreign Policy. Accessed 7 December 2003. http://www.m-w.com/cgi-bin/dictionary.

Microsoft. "William H. Gates Chairman and Chief Software Architect Microsoft Corporation." Assessed 23 November 2003. http://www.microsoft.com/billgates/bio.asp.

MSN Encarta. "Kennedy, John Fitzgerald." Online Encyclopedia. Assessed 23 November 2003. http://encarta.msn.com/encyclopedia_761576731/John_F_Kennedy.html.

MSN Encarta. "Carnegie, Andrew." Online Encyclopedia. Assessed 23 November 2003. http://encarta.msn.com/encyclopedia_761558094/
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MSN Encarta. "Ford, Henry." Online Encyclopedia. Assessed 23 November 2003. http://encarta.msn.com/encyclopedia_761567245/Henry_Ford.html.

MSN Encarta. "Globalization." Online Encyclopedia. Assessed 23 November 2003. http://encarta.msn.com/encyclopedia_1741588397/Globalization.html.

MSN Encarta. "Industrial Revolution." Online Encyclopedia. Assessed 23 November 2003. http://encarta.msn.com/encyclopedia_761577952/
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MSN Encarta. "Rockefeller, John Davison." Online Encyclopedia. Assessed 23 November 2003. http://encarta.msn.com/encyclopedia_761570872/
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O'Neill, Michael. Nonprofit Nation . San Francisco: Jossey-Bass Publishers, 2002. ISBN: 0787954144.

Revkin, Andrew. "Exxon-Led Group is Giving a Climate Grant to Stanford." New York Times , 21 November (2002). Common Dreams News Center. http://www.commondreams.org/headlines02/1121-04.htm.

Rockefeller Foundation. "About the Foundation." Accessed 23 November 2003. http://www.rockfound.org/display.asp?context=2&
collection=9&Preview=0&ARCurrent=1.

United States Agency for International Aid. "About Us." Accessed 23 November 2003. http://www.usaid.gov/about_usaid/.

Williams, Grant. " Safe and Sound?" The Chronicle of Philanthropy . 7 August (2003). http://philanthropy.com/premium/articles/v15/i20/20000801.htm [no longer available]

W.K. Kellogg Foundations. "Who We Are." Accessed 23 November 2003. http://www.wkkf.org/WhoWeAre/Founder.aspx.

World Health Organization. "About Us." Accessed 23 November 2003. http://www.who.int/about/en.