eight - The problem of riches: is philanthropy a solution or part of the problem?

Summary

Introduction

This chapter is a response to the call for a research agenda focusing on the ‘problem of riches’ (Orton and Rowlingson, 2007a). It suggests that the topic of philanthropy fits within this agenda yet is currently under-researched in the social sciences. Original research into the distinctive features of contemporary UK philanthropists is presented, based on secondary analysis of the governing documents, annual reports and other documentary evidence relating to the philanthropic acts of 150 of the most significant major UK donors in 2006. Drawing on the literature, it then discusses ways in which philanthropy can both solve and contribute to the problem of riches. Both the data and literature review are used to assess the extent to which significant charitable gifts made by wealthy people can tackle the ‘problem of riches’ such as inequality, the promotion of happiness and the tension between private affluence and public squalor. The chapter concludes that philanthropy is often perceived to be part of the problem of riches, but has the potential to be a viable solution.

Definitions and the relevance of philanthropy

In this chapter ‘philanthropy’ refers to significant monetary gifts made by rich individuals for the public benefit; it does not include volunteering, corporate philanthropy or small donations made by ‘ordinary’ givers. No precise line is drawn beyond which ‘charitable donations’ become ‘philanthropic acts’ because there is no agreement on what this figure would entail, not least because a ‘significant’ gift depends on the size of the charity; while £10,000 could transform the fortunes of a local voluntary group it would be a drop in the ocean for a major international organisation. However, the sampling method used in this research requires that ‘significant philanthropists’ fulfil at least one of three criteria in the year 2006: that their personal or family foundation be among the 100 largest such organisations in existence, they are named in The Sunday Times Rich List Giving Index or they are described as philanthropists on multiple occasions in major print news stories.

While only a limited number of people are in a position to be significant philanthropists, their acts touch the daily life of every person in our society. Historically, philanthropists have built many of the municipal facilities that the public regularly use, including schools, hospitals, libraries, town halls, churches, parks, art galleries, museums and theatres.