PRIVATE FOUNDATIONS: KEEPING THEMSELVES RICH WHILE GIVING MONEY AWAY
Abstract
This paper examines the relational dynamics that maintain the imbalance between American private foundations and their grantees. Using conflict theory as a guide, the dynamics of power at play between the two entities is examined. These dynamics are analyzed through the history of philanthropy in the United States with a particular focus on the sector’s reaction to the 2008 financial crisis and the COVID-19 pandemic. Both international events led to an evolution of how many private foundations interact with grantees. A closer examination of American philanthropy’s response to the COVID-19 crisis specifically will be compared to the segment’s historical actions. In facing the international health and fiscal crisis caused by the pandemic, many in the philanthropic sector have reassessed their policies and practices, casting aside the status quo and making radical reforms. Suggestions are made for how foundations can maintain these reforms and better invest in their grantees’ efforts.