Knowledge Network: Research and Opinions

By Betsy Brill

Americans have always been generous. But for the most part, their philanthropy has focused on issues within the United States. This changed with the terrorist attacks on Sept. 11, 2001. Americans can no longer ignore issues abroad that have direct impact at home. Global philanthropy has become a priority. Thunderbird graduate Betsy Brill, founder and president of Strategic Philanthropy in Chicago, shares tips for incorporating global philanthropy in a charitable giving plan.

“The global agenda has never been so varied, so pressing, or so complex. It demands of the international community new approaches, new resources, and new commitments of political will.” Kofi Annan, former United Nations Secretary General

First, let’s acknowledge that these are difficult economic times, and the geopolitical climate is challenging for those of us invested or involved globally. Clearly, our world is simultaneously expanding and contracting with amazing speed.

The increase in human population and the global marketplace, the interconnection brought about by the pervasive access to technology, the emergence of new and growing economies, and catastrophic events such as the terrorist attacks on Sept. 11, 2001, are redrawing the map of alliances and forging new economic, political and social relationships among people and nations.

The impact of this global interdependence is having a direct impact on philanthropy, changing the geographic boundaries of wealth and power. Historically, Americans have always been the most generous in the world, but for the most part, this giving has been focused on societal or cultural issues within the United States.

Global philanthropy was not much of a priority because the issues and problems elsewhere in the world did not seemingly affect Americans individually, to a significant enough degree, to raise the international giving bar. However, within only a few short minutes on Sept. 11, 2001, Americans were made aware of how small the world really is.

In the past few years the spotlight has continued to shine on global issues that have direct impact on each of us in the U.S. and elsewhere in the world. By way of example:

– In 2006, almost 986 million people lived below the international poverty line, earning less than $1 per day.

– 854 million people do not have enough to eat — more than the populations of the U.S., Canada and the European Union combined.

– The number of people living with HIV has risen to 33.2 million in 2007, from 29 million in 2001.

– More than 1 billion people in developing countries have inadequate access to water.

– The combined wealth of the world’s seven richest individuals is greater than the total wealth of the world’s 41 poorest countries.

– Human activity endangers nearly 60 percent of the world’s coral reefs.

Incorporating global philanthropy
in your charitable giving plan

What exactly is global philanthropy? It refers to the investment of private dollars without regard for national borders. Often it manifests itself in the form of social investments that address issues of world poverty and social injustice.

While a large number of these investments support U.S.-based organizations working internationally, many are now supporting nongovernmental organizations in other countries.

According to the International Program at the Council on Foundations, there are three simple reasons to make international grant-making a priority:

1. It is easier than you think.

2. Global problems directly affect the United States.

3. A small grant can make a large impact. At a time when we all feel the effects of a weak U.S. economy, it is especially important to remember that a little can go a long way toward improving the lives of people in developing nations.

So where do you begin? What should you consider and what should you know? Here are five tips for including a global perspective in your philanthropy:

1. Fund work that governments do not, such as human rights, advocacy and strengthening civil and open societies in “closed societies.”

2. Educate yourself on your country’s legal and tax rules governing cross-border charitable giving, and ensure that your foundation’s governing documents allow for overseas giving.

3. Consider giving to a grant-making intermediary — an organization that has developed deep expertise in issue areas and regions of the world and that employs appropriate monitoring and evaluation to ensure their grants are effecting real change on the ground.

4. Identify organizations that have “their ears to the ground,” and consider allocating funds not only for their specific programs, but also for capacity building grants that will build internal infrastructure and help them to deliver quality programming more efficiently.

5. Network with other donors to learn about projects in program areas of joint interest.

Betsy Brill, a 1983 graduate of Thunderbird School of Global Management, is founder and president of Strategic Philanthropy, Ltd., a Chicago-based global philanthropic advisory practice that supports and advances highly effective and meaningful charitable giving. The firm’s services include the design and management of philanthropic and grant-making activities for individuals and families, the corporate community and established foundations. For more information visit the company’s website at www.stratphilanthropy.com or contact the company at +1 (773) 244-5185.

Posted: 08|4|08 at 2:12 pm.
Filed under: Global Citizenship, Global Strategy.
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