Philanthropy

== Differences between traditional and new philanthropy ==

=== Impact investment versus traditional philanthropy ===
Traditional philanthropy and [[impact investment]] can be distinguished by how they serve society. Traditional philanthropy is usually short-term, where organizations obtain resources for causes through fund-raising and one-off donations.<ref>{{Cite book|last1=Srivastava|first1=Prachi|last2=Oh|first2=Su-Ann|chapter=Private Foundations, Philanthropy and Partnership in Education and Development: Mapping the Terrain|title=Public Private Partnerships in Education|editor-first1=Susan L.|editor-last1=Robertson|editor-first2=Karen|editor-last2=Mundy|editor-first3=Antoni|editor-last3=Verger|editor-first4=Francine|editor-last4=Menashy|doi=10.4337/9780857930699.00015|year=2012|isbn=9780857930699}}</ref> The [[Rockefeller Foundation]] and the [[Ford Foundation]] are examples of such; they focus more on financial contributions to social causes and less on actions and processes of benevolence. Impact investment, on the other hand, focuses on the interaction between individual wellbeing and broader society by promoting [[sustainability]]. Stressing the importance of impact and change, they invest in different sectors of society, including housing, infrastructure, healthcare and energy.<ref name=":0">{{Cite book|first1=Oliver|last1=Oehri|first2=Christoph|last2=Dreher|first3=Christoph|last3=Jochum|url=http://www.myimpact.li/|url-status=dead|archive-url=https://web.archive.org/web/20160820171106/http://www.myimpact.li/wp-content/uploads/2014/04/My-Impact-Fundamentals-of-Modern-Philanthropy.pdf|archive-date=2016-08-20|title=Fundamentals of Modern Philanthropy: New Perspectives for Foundations|publisher=Center for Social and Sustainable Products AG|year=2014|language=en|access-date=2019-05-20}}</ref>

A suggested explanation for the preference for impact investment philanthropy to traditional philanthropy is the gaining prominence of the [[Sustainable Development Goals]] (SDGs) since 2015. Almost every SDG is linked to environmental protection and sustainability because of rising concerns about how [[Globalization|globalisation]], [[consumerism]], and [[population growth]] may affect the environment. As a result, development agencies have seen increased demands for accountability as they face greater pressure to fit with current developmental agendas.

=== Traditional philanthropy versus philanthrocapitalism ===
[[Philanthrocapitalism]] differs from traditional philanthropy in how it operates. Traditional philanthropy is about charity, mercy, and selfless devotion improving recipients' wellbeing.<ref name=":0" /> Philanthrocapitalism, is philanthropy transformed by business and the market,<ref>{{Citation|chapter=Is it time for a new international poverty measure?|date=2013-12-05|pages=35–42|publisher=OECD|isbn=9789264200999|doi=10.1787/dcr-2013-6-en|title=Development Co-operation Report 2013|last1=Klasen|first1=Stephan}}</ref> where profit-oriented business models are designed that work for the good of humanity.<ref>{{Cite book|first1=Matthew|last1=Bishop|first2=Michael|last2=Green|publisher=Bloomsbury Press|date=2008|title=Philanthrocapitalism: how the rich can save the world|isbn=9781596916951|url=https://archive.org/details/philanthrocapita00matt|url-access=registration}}</ref> Share value companies are an example. They help develop and deliver curricula in education, strengthen their own businesses and improve the job prospects of people.<ref>{{citation|last1=Kramar|first1=M.K.|first2=G.|last2=Hills|first3=K.|last3=Tallani|first4=M.|last4=Wilka|first5=A.|last5=Bhatt|year=2014|title=The new role of business in global education: How companies can create shared value by improving education while driving shareholder returns|url=https://www.fsg.org/wp-content/uploads/2021/08/Role_of_Business_in_Education.pdf}}</ref> Firms improve social outcomes, but while they do so, they also benefit themselves.

The rise of philanthrocapitalism can be attributed to global [[capitalism]]. {{weasel inline|text=There is an understanding|date=August 2023}} that philanthropy is not worthwhile if no economic benefit can be derived by philanthropy organisations, both from a social and private perspective. Therefore, philanthropy has been seen as a tool to sustain economic and firm growth, based on [[Human Capital Theory|human capital theory]]. Through education, specific skills are taught that enhance people's capacity to learn and their productivity at work.

[[Intel]] invests in science, technology, engineering, and mathematics (STEM) curricular standards in the US and provides learning resources and materials for schools, for its innovation and revenue.<ref>{{Cite journal|last=Rubio Royo|first=Enrique|date=2009-09-30|title=Nuevo "rol" y paradigmas del Aprendizaje, en una Sociedad Global en RED y Compleja: la Era del Conocimiento y el Aprendizaje|journal=Arbor|volume=CLXXXV|issue=Extra|pages=41–62|doi=10.3989/arbor.2009.extran1205|language=es|issn=1988-303X|doi-access=free|hdl=20.500.12749/3006|hdl-access=free}}</ref> The New Employment Opportunities initiative in Latin America is a regional collaboration to train one million youth by 2022 to raise employment standards and ultimately provide a talented pool of labour for companies.

=== Promoting equity through science and health philanthropy ===
Philanthropy has the potential to foster [[Equity (economics)|equity]] and [[Inclusion (education)|inclusivity]] in various fields, such as scientific research, development, and healthcare. Addressing systemic inequalities in these sectors can lead to more diverse perspectives, innovations, and better overall outcomes.

Scholars have examined the importance of philanthropic support in promoting equity in different areas. For example, Christopherson ''et al.''<ref>{{Cite journal |last1=Christopherson|first1= Elizabeth Good |last2=Howell|first2= Emily L. |last3=Scheufele|first3= Dietram A. |last4=Viswanath|first4= Kasisomayajula |last5=West|first5= Norris P. |year=2021 |title=How Science Philanthropy Can Build Equity |url=https://ssir.org/articles/entry/how_science_philanthropy_can_build_equity |journal=Stanford Social Innovation Review |language=en |volume=19 |issue= 4 |pages=4855 |doi=10.48558/P4G8-QM77}}</ref> highlight the need to prioritize underrepresented groups, promote equitable partnerships, and advocate for diverse leadership within the [[scientific community]]. In the healthcare sector, Thompson ''et al.''<ref>{{Cite journal |last1=Thompson |first1=Beti |last2=Molina |first2=Yamile |last3=Viswanath |first3=Kasisomayajula |last4=Warnecke |first4=Richard |last5=Prelip |first5=Michael L. |date=August 2016 |title=Strategies To Empower Communities To Reduce Health Disparities |journal=Health Affairs |language=en |volume=35 |issue=8 |pages=1424–1428 |doi=10.1377/hlthaff.2015.1364 |issn=0278-2715 |pmc=5554943 |pmid=27503967}}</ref> emphasize the role of philanthropy in empowering communities to reduce health disparities and address the root causes of these disparities. Research by Chandra ''et al.''<ref>{{Cite journal |last1=Chandra |first1=Anita |last2=Acosta |first2=Joie |last3=Carman |first3=Katherine Grace |last4=Dubowitz |first4=Tamara |last5=Leviton |first5=Laura |last6=Martin |first6=Laurie T. |last7=Miller |first7=Carolyn |last8=Nelson |first8=Christopher |last9=Orleans |first9=Tracy |last10=Tait |first10=Margaret |last11=Trujillo |first11=Matthew |last12=Towe |first12=Vivian |last13=Yeung |first13=Douglas |last14=Plough |first14=Alonzo L. |date=January 2017 |title=Building a National Culture of Health: Background, Action Framework, Measures, and Next Steps |journal=Rand Health Quarterly |volume=6 |issue=2 |pages=3 |issn=2162-8254 |pmc=5568157 |pmid=28845341}}</ref> demonstrates the potential of strategic philanthropy to tackle health inequalities through initiatives that focus on prevention, early intervention, and building community capacity. Similarly, a report by the [[Bridgespan Group]]<ref>{{Cite web |last1=Grindle |first1=Jeffrey|last2= Bradach|first2= Abe |title=Transformative Scale: The Future of Growing What Works |url=https://www.bridgespan.org/insights/transformative-scale-nine-pathways |access-date=2023-04-04 |website=Bridgespan |language=en}}</ref> suggests that philanthropy can create systemic change by investing in long-term solutions that address the underlying causes of social issues, including those related to science and health disparities.

To advance equity in science and healthcare, philanthropists can adopt several key strategies:

* Prioritize underrepresented groups: Support scientists and health professionals from diverse backgrounds to help address historical injustices and foster diversity.
* Encourage equitable partnerships: Facilitate collaborations between institutions from different backgrounds to promote [[knowledge exchange]] and a fair distribution of resources. 
* Advocate for diverse leadership: Support initiatives that emphasize diversity and inclusion in leadership positions within scientific and health institutions. 
* Invest in early-career professionals: Help create a more equitable pipeline for future leaders in science and healthcare by investing in early-career researchers and health professionals.
* Influence policy changes: Utilize philanthropic influence to advocate for policy changes that address systemic inequalities in science and health.
Through these approaches, philanthropy can significantly promote equity within scientific and health communities, leading to more inclusive and effective advancements.