Understanding Philanthropy

Payton and Moody's book is an extended argument that philanthropy is an interesting and important subject that deserves to be better understood and to be taken more seriously. Apart from the usual gripe from this side of the Atlantic that the authors also take themselves a little too seriously, it does largely fulfil its stated aim, although UK readers should brace themselves for a relentlessly upbeat approach and repetition of the mystifyingly widespread view that America invented philanthropy. Much of the first half of the book revolves around defining key terms and dissecting the differences between apparent synonyms such as 'charity' and 'philanthropy'. Having successfully cleared a path through the thicket of definitional tangles, the book moves onto meatier questions regarding the rationale for philanthropy's existence, its relationship to other forms of assistance and the practicalities of undertaking philanthropic action. Whilst the authors, being openly pro-philanthropic, are clear that philanthropy is the answer, they do not shy from addressing the obvious retort, 'what is the question?' In a beautiful demonstration of Occam's Razor (the principle which states the best theories are those expressed most succinctly and simply), the authors argue that, "Philanthropy exists because of two truths about the human condition: things often go wrong and things could always be better". The philanthropic tradition is then described as the history of the response to these two facts.... Grand claims are made about the possibilities inherent in philanthropic action, with philanthropy variously described as essential to democracy, the locus of society's moral agenda and "our best hope to make the world better". Yet the authors readily acknowledge the existence of alternative responses when things go wrong and situations need to be improved.... Whilst government and market failure often feature in theories of the voluntary sector – implying that philanthropy is the 'fall-back option' – this book usefully highlights that philanthropic acts have a positive comparative advantage because they are defined by morality, whereas governments are defined by 'power' and business by 'wealth'. Such sweeping generalisations inevitably invite debate; many people enter politics to implement moral ideas and many businesspeople-turned-philanthropists would argue that wealth creation was a necessary precursor to their later generosity..... Whilst this all sounds rather abstract, philanthropists will find much of practical use in a chapter on the practicalities of undertaking philanthropic action that acknowledges the perils of attempting to intervene voluntarily in other people's lives for their benefit..... The need to be good stewards of the philanthropic tradition occupies the entire concluding chapter, which – staying true to the book's title – advocates better understanding of philanthropy as the surest route to defending its essential roles in key democratic tasks such as defining, advocating and achieving the public good, advancing the general welfare and responding when things go wrong. Such seriously ambitious goals perhaps ultimately justify the authors' occasionally serious and self-important tone.