Phil: What kind of criticisms are big givers facing — can you walk us through the major categories of critique?

Dr. Breeze: Sure, I see at least three different, but mutually reinforcing critiques.

Firstly, there’s an academic critique that is focused on undue power and influence, and the suggestion that big giving undermines democracy. There has been a slippage from noting that in some instances philanthropy can be a way of wielding power, which is obviously true, to the statement that ‘all philanthropy is power’ which is a gross overstatement. For example, the fraction of philanthropy that’s concerned with policy issues is tiny even within the U.S., and almost non-existent elsewhere. It’s also worth recalling that elected bodies create the framework within which philanthropy occurs, including defining what does and does not qualify for tax relief, the size of those reliefs, and who can claim them. Failure to properly regulate the philanthropy sector — and, for that matter, failure to properly fund public services which then need to seek private support — are obviously examples of government failure, not philanthropic failure.

Secondly, there’s what I call the ‘insider critique,’ which comes from within the nonprofit sector and is focused on the distribution (or misdirection as they see it) of philanthropic expenditure. The proposition that giving should do as much good as possible is entirely uncontroversial because every donor wants their contribution to be used well. But translating that uncontentious sentiment into specific guidelines for how to conduct philanthropy is less straightforward. Philanthropy is intensely personal and often rooted in autobiographical experiences and concerns, so being told to eliminate subjective concerns and only use altruistic arithmetic to allocate donations can drive the passion and joy out of giving, and make it feel more like paying compulsory tax than voluntary generosity. But let’s say the price of a bit less donor joy is worth the enhanced social impact, there’s also a fundamental issue about the inadequacy of metrics available to guide giving choices. The focus of insider critiques on rigorous, data-driven, and business-like approaches often come unstuck when confronting the reality of complex philanthropic goals and how social change happens in practice. This point is well-made in a cartoon pinned to the noticeboard above my desk, which depicts a bunch of clipboard-carrying bureaucrats telling the Indian civil rights leader Mahatma Gandhi: “We won’t fund you because we can’t see the link between spinning and bringing down the Empire”. What I find most perplexing about the insider critiques — especially within the effective altruism movement — is the assumption that philanthropy needs to be better rationed, rather than its total quantum increased. I’d rather focus on growing the overall size of the philanthropic pie, encouraging more donors to be more generous, than pit one approach or cause against the others.

Thirdly there’s a populist critique that encourages a simplistic understanding of the complex role and varied practice of philanthropy. Populists — often to be found on social media — dismiss all private giving as an ‘elite charade’ that masks a self-interested agenda. Big donors are routinely depicted as unlikeable hypocrites using ‘good deeds’ to secure a good deal for themselves, whilst self-reported explanations for giving — such as gratitude, concern for others, or the enjoyment of doing meaningful work — are dismissed as falsehoods or false consciousness. Decades of academic research show that ‘mixed motives’ is the norm for rich and non-rich donors alike, yet populists advance the view that those with large bank accounts are singularly incapable of altruism. Big donors face lose-lose scenarios such as being deemed shady and untransparent if they give secretly, or as ego-driven, image-polishers if they give publicly. There is an obvious price to this endless disapproval: if public condemnation follows philanthropic donations but not the purchase of luxuries, that is good news for companies selling superyachts and bad news for cash-strapped nonprofit organizations.

Read the full interview about "In Defense of Philanthropy" by Phil Buchanan with Dr. Beth Breeze at The Center for Effective Philanthropy.