I

There is little doubt that American philanthropy, including activities in developing countries, is experiencing fundamental shifts. Often defined as “using private wealth for public good”, philanthropy has been practised in the United States for more than a century within a particular framework shaped by American laws, which made it possible for philanthropists to minimize their tax burden by giving away wealth for what are defined as “charitable purposes”.

Primarily as a result of new technologies created by large and successful corporations, there is now a group of tremendously wealthy entrepreneurs and investors seeking to redefine the purposes and methods of philanthropic practice. Often called “philanthrocapitalists”, these entrepreneurs assert that being successful in business gives them the know-how to solve large-scale problems of poverty and deprivation. Their philanthropic organizations promote “business-like ways of working, business-like efficiency, and market-driven solutions to social problems” (Feinstein 2011). Instead of the “bottom line” of corporate profit, they promise a “bottom line” of social impact. Along with bottom-line thinking comes an emphasis on measuring outcomes and tangible results. The language of metrics, benchmarks, risk-reward ratios and scaling up now pervades the discourse of new philanthropies, making staff and their boards even more eager to see results quickly.

In a new book, David Callahan scrutinizes major living donors, who he argues are forming a “heterogeneous new power elite” (Callahan 2017). He describes activist megadonors who want to be celebrated for carrying out their philanthropic mission, and who maintain close personal control over their foundations, noting how in many cases donors are determined to give away all their wealth for specific purposes during their lifetimes, rather than leaving behind foundations that could evolve and chart new directions in perpetuity. The proponents of what is nowadays termed “venture philanthropy” do appear more activist than earlier generations of foundation executives. Venture philanthropists craft social media messages to explain their goals, and have created a celebrity culture of giving away wealth.