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Introduction to Money Stories

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Explore the relationship between foundations, charities, donors, community groups, and government, paying attention to the structural level of the system. We hold the question: how do structure and relationships shape purpose?

"Grasping the structure of a subject is understanding it in a way that permits many other things to be related to it meaningfully. To learn structure in short, is to learn how things are related."

Jerome Bruner, American Psychologist & Educator, The Process of Education

As far as we know, giving is endemic to human societies. Along the way, in the West, informal giving practices gave way to formalized philanthropy, enshrined in legislation and enmeshed with the taxation system. To understand what purpose and power dynamics were encoded within this modern structure, we start by observing how resources flow and according to what regulations, policies and practices. If we follow the money, and trace the flow of resources, what can we learn about the relationship between philanthropic institutions, the state, charities, wealthy, and poor individuals? Who holds control? Ultimately, we’re opening up space to inquire: how does the structure of Western philanthropy fit with modern purposes and contemporary goals?

"The fundamental structures and operating models of foundations haven’t changed much over the last several decades. This is largely due to the combination of no outside force requiring them to change and few variations on the basic operating model to inspire innovation."

Nancy Roob, President and CEO of the Edna McConnell Clark Foundation & CEO of Blue Meridian Partners

Origin Stories delves into some of the history and practices that gave rise to Western institutional philanthropy, as well as some other cultural traditions of giving.

Money Stories takes a look at the structure that history has handed down to us, and tries to understand some of the implications for philanthropic purpose.

What might the form philanthropy has taken tell us about its functions: as a mechanism for redistributing wealth, for blunting the impact of wealth inequality, and/or for some other purposes?

A white line drawing of a person in a building, with vertical beams showing text "Growing endowments" and "Tax incentives"

Philanthropy has a structure that was purpose built. Does that purpose maintain?

We've called this theme Money Stories, but it could just as easily have been named Structure Stories. The perceived value of money in improving society for all has, in many ways, architected institutional philanthropy.

Supported by tax incentives, given license to disburse funds without much democratic oversight, and permitted to perpetually grow their endowments, foundations are treated as a clear public good.

Are they? When is the loss of tax revenue offset by the public value of philanthropy? As Mark Kramer & Steve Phillips show in "Where Strategic Philanthropy Went Wrong", there is an inverse correlation between social progress and philanthropic giving.

From 1990 to 2022, while real charitable giving doubled, the United States’ ranking on social progress compared to other countries dropped from 8th to 31st. This mismatch between charity and well-being is not limited to the United States. Countries with the highest per capita charitable giving—the United States, Canada, and the United Kingdom—tend to perform poorly on measures of social progress. The countries that perform best—Scandinavian countries, Germany, and Japan—give to charity as little as 2 percent of what the United States gives per capita, relying on government rather than philanthropy to meet their society’s needs.

Mark Kramer & Steve Phillips

Philanthropy’s critics -- be they reformers or revolutionaries -- are increasingly vocal. They raise questions about philanthropy’s accountability to today’s citizens, especially to those experiencing the most harm from inequality and the systems that maintain it. Many of these critics are donors themselves, deeply committed to a more socially and environmentally sustainable world.

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    To explore tensions between the structure of philanthropy and various of its possible purposes
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    To understand the critique of philanthropy known as "the non-profit industrial complex".
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    To surface how particular purposes of philanthropy might dictate different structural needs.
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    To explore the concept of the donor and test its limits.
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    Raise practical and moral questions about the relationship between philanthropy and democracy (more in future modules).
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    To better understand how philanthropy benefits from Canada’s tax regime and consider the implications of that relationship.
Cover art for Money stories Podcast: A bonsai tree of human hands of many different skin colours

The Money Stories Podcast

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First we look at some of the most significant players in the philanthropic system and the patterns of their interaction.

Philanthropy's Structures and relationships

Using a systems thinking approach, identify the connections between philanthropy and other systems. Looking at how resources flow will help us understand the structure of philanthropy and the resources at stake. Read it here.

Part of systems thinking is engaging with different perspectives to get a fuller picture of a complex reality and the human actors that animate it. Notice what your reactions to different perspectives tell you about what matters to you.

Perspectives on Philanthropic Structure

Entertain multiple expert perspectives on how philanthropy's structural elements relate and to what effect. There is no one way to make sense of how the parts fit together, but looking through a range of lenses can lead us to ask different questions and consider different interests. Read it here.

How we see and understand the structure of philanthropy is tied to our vantage point and values and logics. There's value in getting clear on what you see from where you sit.

Mapping relationships for yourself

Take your turn! How do you conceptualize the structures that bring philanthropy into relationship with other sets of actors? Use a blank worksheet to sketch out some different possibilities and name them. Read it here.

A guided tour through multiple cultures and times gives us many perspectives on what philanthropy is and what it was designed to do. Throughout we ask: What is the relationship between philanthropy, inequality, and justice?

In the Money Stories podcast, you'll hear from:

PurposePhil worked with a team of emerging artists to interpret abstract concepts in each episode, producing cover art and a complementary piece.

Kyla Yin James's head shot

Kyla Yin James (they/she)

Cover art Kyla Yin James is an illustrator and designer whose work is inspired by mythology, the unconscious, subcultures, sociopolitical systems, and their mixed heritage. They love exploring their connection to intergenerational experiences. Kyla’s work is filled with symbolism that creates surreal and speculative scenes questioning the status quo. Through their work, they explore the ways they approach the different thought worlds they grew up in. Kyla describes their practice as thinking and feeling out loud, sorting through the symbols and ideas they’ve encountered.

A bonsai tree of human hands of many different skin colours

My cover illustration speaks to the theme of structure, how structures are built through relations. Bonsai trees are an example of something from nature that humans prune to fit their own needs.

As such bonsai trees draw parallels to the nonprofit industry. Giving is a part of human nature but the industry is formed by structures imposed on this part of our nature. Portraying hands instead of leaves on the tree illustrates how interconnected each person is -- bonded through something both grown through relations and adjusted based on outside influences.

Rawan Hassan's head shot

Rawan Hassan (she/her)

Complementary art Rawan Hassan is an artist/designer based in the unceded land of the Coast Salish people, specifically the land of the Squamish, Tsleil-Waututh, and Musqueam (Vancouver, Canada). Her artwork explores realism and the abstract, through patterning, linework and pencil drawings. Her goal is to create work that reflects the cultures, experiences and perspectives she grew up and continues to evolve with.

A mosaic background of gold coloured circles and stars has cut out large circles and one circle with wavy blue texture and what looks like a ship's wheel and navigational tools laid over a Celtic knot.

Exploring the themes of intention and outcome, this artwork showcases the disconnect between the culture around charity work and the non-profit industrial complex.

Inspired by Ceema Samimi’s story of cut out paper stars, the star patterned background represents the good intentions behind charity work, along with the culture developed through community orientated work. While at the forefront (the outcome) the knot represents the tight loop of the non-profit industrial complex, and how reliant the donor, foundation, charity and client relationship is with one another. The vault lock on top symbolizes how controlled the stream of money is within the system.

Resources

1

Jerome S Bruner, The Process of Education (Cambridge: Harvard University Press, 1960).

2

Alison Powell, Willa Seldon, and Nidhi Sahni, “Reimagining Institutional Philanthropy (SSIR),” ssir.org, April 2019, https://ssir.org/articles/entry/reimagining_institutional_philanthropy.

3

Mark Kramer and Steve Phillips, “Where Strategic Philanthropy Went Wrong (SSIR),” ssir.org, June 2024, https://ssir.org/articles/entry/strategic-philanthropy-went-wrong#.

What to read next

Philanthropy's Structures & Relationships

Using systems thinking, identify connections between philanthropy and other systems. Resources flows offer a starting point to understand the structure of philanthropy.

Perspectives on Philanthropic Structure

There is no one way to make sense of how philanthropy's structural elements relate, but looking through a range of lenses can lead us to ask different questions and consider different interests.

Mapping Relationships for Yourself

How do you conceptualize the structures that bring philanthropy into relationship with other sets of actors?

See all themes