Could the way we fund social change be a function of how broken the world is? With this question, New World Foundation President Dr. Colin Greer opened our event “Funding Social Change in a Broken World” on December 7th. Dr. Greer was joined by another leader in philanthropic thought, Princeton Professor of Public and International Affairs Stanley Katz. This event was the first in a series of conversations about philanthropy that highlight the intimate relationship between philanthropy and social change, the problems with that relationship, and the unique position of Princeton students to consider such dynamics. About thirty undergraduate and graduate students with particular vocational interest in social change were selected to attend the event.
Nicholas Wu ’18 was excited about the opportunity, saying “I was really glad to see the spirited debate between Professor Katz and Mr. Greer. In particular, I appreciated their discussion of philanthropy as a way of achieving social impact. My hope in helping organize the event is that my fellow students took this as a moment to learn and think critically about our society’s institutions.”
Dr. Greer kicked off the event with a look at the history of the New World Foundation. It was founded in 1954 by Anita McCormick Blaine, who inherited the wealth to start it from her father, Cyrus H. McCormick, and felt the urge to do something positive with that money. As NWF became involved in civil rights work, they learned many lessons from the community organizers involved in the 1960s-1980s, and identified the need to include these activists in their board. Building such trust with their community partners likely led them to their unique grant system operational today. “Authoritarianism is built into the fabric of philanthropy, because every grant has an audience of one, the funder,” said Greer. New World attempts to combat this by typically awarding general support grants as opposed to project-specific ones. Grantees will share their own ideas about what their communities need, and then partner with New World to make change happen.
The history of the New World Foundation is full of changes that draw into focus the main points of the discussion for Dr. Greer and Professor Katz. Where does and should money come from in philanthropic organizations? Who thus has the power when it comes to making change? To whom is money given, and by what means?
Much like the way New World Foundation was originally made possible through family money, today much of the funding in philanthropic ventures comes from “New Money,” i.e. the newly rich. While Greer and Katz agreed this can be problematic, they emphasized different strategic solutions. Greer explained his worries that big foundations are becoming increasingly bureaucratic because the New Money founders have their own agendas and essentially unchecked power. He believes that wealth should not be a qualifier for leadership, especially when the wealthy are not typically part of the communities in need of and already working towards change. Indeed, Greer noted that philanthropy rooms are mostly reserved for the elite, and funders tend to give money to those with whom they are comfortable. He asked the students, “How do we attach the highest American ideals to philanthropy?”
Professor Katz wondered if some of the solutions to these issues might lie outside of philanthropy altogether. Accepting the premise of capitalism, people can do whatever they wish with their money. There is no way to guarantee that foundations will use their money responsibly. “A better world would mean a country where wealth is taxed at high rates.” 70 percent is his suggestion, though he does not see it happening any time soon. But a lot could happen with that kind of capital available, and Katz believes the public should assert their right to decide the important policy questions to ensure money goes where it is most needed.
The session ended on a hopeful note. A student asked, “What can young people actually do in the face of such wide systemic issues?” Professor Katz answered that political reform is important, and must be included in discussions of philanthropy. But he also shared that if the inquisitive and compassionate young minds in that room apply their ideals to whichever fields they land in, change is sure to come.