American Philanthropy, European Perspective

In this article from Stanford Social Innovation Review (free access until 5/11 then requires a subscription, well worth it by the way) , the author examines the state of philanthropy since Democracy in America, which everyone in nonprofit work should have a copy of.

An excerpt from the article.

“The locus classicus of European bewilderment with the United States is Alexis de Tocqueville’s seminal study Democracy in America, first published in 1835. Some of the original wonder at the American way of life has never left Europeans. Somehow the English colonies pulled off a societal experiment, which so far Europeans had dreamed of only in complex works of political philosophy or smothered in the bloodshed of failed revolutions. In this new land of milk and honey, commoners could make a fortune, citizens united in liberty to pursue matters of mutual gain, and equality ran deeper than anywhere else.

“Much has changed in 175 years. And yet a quick glance at the latest thinking about not-for-profit management and philanthropy reveals some profound differences between the ways American and European practitioners look at today’s major societal challenges.

“I went to Stanford University last fall to attend “Leading During Times of Change,” a nonprofit management conference organized by this magazine and the Association of Fundraising Professionals. I was with a group of peers from the Dutch charity sector, leaders in the fields of child welfare, health care, and philanthropic management. We enjoyed an excellent seminar complemented with instructive field visits to nonprofit organizations in the San Francisco Bay Area.

“What probably struck me most during our visit is the almost unquestioned belief Americans have in the value of an entrepreneurial approach to just about everything—and with it, a deep-seated suspicion of anything that smells of government. Hospitals are better off if they are run like health care businesses, with clients rather than patients. Unemployment is best tackled by social entrepreneurs, who help people set up their own (small) businesses. Philanthropy is largely redefined as social innovation. And market failures are often seen as the root cause of societal problems. An entire worldview transpires through these assumptions, a worldview I only partly share.

ACT AS A CATALYST

“I believe that the three main actors in society must all pay their dues. Businesses create economic value, provide jobs, and lay the basis for material prosperity. Governments set the stage, create and maintain a level playing field, pass laws, make sure there is an independent judiciary, keep us away from war and crime, collect taxes, protect the weak and vulnerable, and generally look after the public good. Civil society provides the checks and balances that are needed to hold government accountable and businesses transparent. It is that most valued place in democratic society where citizens rally together to pursue a common goal on a voluntary basis beyond the nucleus of their family or the context of their employer or political party.

“In my preferred blueprint, civil society organizations are privately funded, to prevent collusion or mission creep; governments leave the provision of commercial services to entrepreneurs; and businessmen mind their business rather than tell us how to live or who should lead. Seen from this perspective, a thriving civil society is a good indicator of the health and wealth of any democracy. For nonprofit leaders, it is important to figure out where you stand in this tangled trio, to determine what type of mission you will try to accomplish and which management principles you will adopt before you frame an issue.”