Welcome to the Philanthropy Project
So, what is this all about?
Simply put, we believe that U.S. charitable funds should be used to benefit the public.
This is not happening now. Much of the $1.5 trillion that has already resulted in tax deductions is sitting in unproductive repositories and subject to wasteful fees at private foundations, and donor advised funds, and endowments, instead of prioritizing the timely and effective uses of funds held in public trust.
We believe that only appropriate government regulation and oversight can address the full scale of this situation.
The Philanthropy Project has been formed to deepen awareness and public action of these problems and how to address them:
- To serve as a community clearinghouse of current events, opinion and research on philanthropic reform (following the money and spotlighting brilliant work by others). Recent pieces from the Institute for Policy Study and the National Philanthropic Trust are examples of what we will feature.
- To be part of building and strengthening a constituency driving reform of philanthropy from the perspective and experience of community organizations most directly affected by its actions.
- To engage the staff and volunteers in on-the-ground nonprofits in a discussion too often dominated by researchers and law professors
- To organize support for policy changes in the public interest, starting in five areas:
- Reduce or eliminate the time gap between the time a donor receives the tax deduction and the donation goes to an active nonprofit. (Said another way: the current system is unacceptable where donors place money in their donor-advised fund (DAF account) but there is no requirement for the monies ever to be distributed to an active nonprofit.)
- Prohibit private foundation-to-DAF transfers from counting as part of 5% payout, and require private foundation DAF accounts to report on grants made.
- Close loopholes in what foundation expenditures can count as payout in order to focus on grants and allocations for charitable purposes
- Establish common-sense transparency requirements for philanthropy — uses of funds, intermediaries, payments to financial advisors and fund managers, joint ventures, effective control, non-cash donations and cryptocurrency
- Wildcard: we have some ideas for the fifth focus area — such as dark money, LLCs, DAF-fiscal sponsor firms, and more. Please put in your suggestions here!
Share your thoughts?
Our website will serve as a source of advocacy, connection, and useful tools/archives. The site’s content will span a range of topics for both beginners and those knowledgeable in the field, with gems of disclosure, legal and regulatory practice.
And (if anyone wants to know), yes, we agree that U.S. philanthropy has generous roots and purposes, and every day makes important contributions to people’s lives. However, without effective community voices, the policies governing these funds are highly vulnerable to institutional forces of self-interest, secrecy, bias, and excessive accumulation. The Philanthropy Project and the philanthropy reform movement are needed to be a necessary counter-weight to this serious vacuum and standstill for transparency and accountability. Finally, the Philanthropy Project is informed by a working group of people who care about bringing U.S. philanthropy to open, honest, and effective support of the public good. We are a creative mix of thinkers and doers, with nonprofit leaders, researchers, community activists, law professors, donors, and more… and we welcome you to join this campaign!Jan Masaoka and Jon Pratt
Philanthropy Project Co-Chairs
Kari Aanestad, Associate Director, Minnesota Council of Nonprofits
Chuck Collins, Inequality,org, Institute for Policy Studies
Bella DeVaan, Charity Reform Project Director, Institute for Policy Studies
Aaron Dorfman, President, National Committee for Responsive Philanthropy
Jeannie Entenza, Professor, University of Minnesota
Geoff Green, CEO, California Association of Nonprofits (CalNonprofits)
Darryl Jones, Professor, Fordham A&M University Law School
Carolyn Karr, retired attorney and independent researcher
Vu Le, writer, NonprofitAF
Ray Madoff, Professor, Boston College Law School
Pete Manzo, President and CEO, United Ways of California
Ruth McCambrige, Editor-in-Chief Emerita, Nonprofit Quarterly
