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Trends in U.S. Based Global Grantmaking
This document discusses trends in U.S.-based global grantmaking. It defines global philanthropy and outlines how U.S. foundations make grants globally, directly to overseas organizations or through U.S.-based intermediaries. Quantitative data shows that international giving by U.S. foundations has grown significantly since 1970 and especially since 1998. Qualitative trends include the influence of globalization, a focus on results and impact, and greater involvement of West Coast foundations in global issues.
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Trends in U.S. Based Global Grantmaking
- 1. Trends in U.S.Based Global Grantmaking Andrew Ho Manager, Global Philanthropy Council on Foundations November 18, 2011
- 2. Defining “Global Philanthropy” • Private actionsfor the public good as diversely practiced around the globe • Grants by a given country’s donors to causes outside that country • Private actions for the public good that address challenging issues demanding concerted action from diverse actors from around the world.
- 3. How US FoundationsGo Global • Grants to US-based NGOs operating their own programs overseas • Grants to US-based NGOs working on global policy issues • Grants to US-based international intermediaries • Grants to overseas NGOs
- 4. Global vs. Domestic: What’sthe Difference? • Legal: • US and receiving country • Foundation type • The “war on terror” • • • • • Different issues… different challenges…different solutions Culture Language Technology Currency exchange, time zones, and more…
- 5. Trends in US-Based GlobalPhilanthropy: Quantitative
- 10. Growth of International Giving,1970-2010
- 11. Growth of International GivingSince 1998 by U.S. Foundations
- 12. According to themost recent “Giving USA”, in 2010: >> Giving to international affairs rose an estimated 15.3% (13.5% adjusted for inflation). >> This is the largest percentage increase of any subsector in 2010 >> Factors included several political and humanitarian crises, including the January 2010 earthquake in Haiti.
- 13. Trends in US-Based GlobalPhilanthropy: Qualitative
- 14. What’s driving thegrowth Globalization (both positive and negative aspects) Issues of global scale The Bills (Gates and Clinton) Corporate giving Diaspora giving Silicon Valley culture
- 15. Some trends within globalphilanthropy East Coast/Midwest >>> West Coast “New” versus “traditional” philanthropy Business-like approach “Effectiveness”: Emphasis on results and impact on a short-term time horizon…grantees or contractors? Individual as lead agent of change (versus community or social movement) Beyond grants/philanthro-capitalism Faith in technology Market-based solutions (especially microfinance)
- 16. US global donor wateringholes Council on Foundations Global Philanthropy Forum Clinton Global Initiative Opportunity Collaboration Funder affinity groups: • • • • • • Africa Grantmakers Affinity Group Grantmakers Without Borders International Funders for Indigenous Peoples International Human Rights Funders Group Peace and Security Funders Group Funders Network on Transforming the Global Economy
- 17. The Council’s GlobalPhilanthropy Program Some current priorities: Global Philanthropy Leadership Initiative Global Grantmaking Institute United States International Grantmaking (www.usig.org) NGOsource (www.ngosource.org)
- 18. Contact Information Andrew Ho Councilon Foundations Manager, Global Philanthropy Email: andrew.ho@cof.org Phone: +1-703-879-0743 Twitter: @andyho www.cof.org www.usig.org www.ngosource.org
Editor's Notes
- #7 How the Council defines international grantmaking: The Council on Foundations defines “international grantmaking” to include grants made by U.S. foundations and corporations to overseas recipients as well as grants made to U.S.-based organizations operating international programs. This includes grants made toward activities wholly within the Unites States that have significant international purpose and impact.International support rose from 22% to 24.4% of overall giving between 2006 and 2008. By share of number of grants, however, international giving remained almost unchanged at 9.1%.
- #8 The growth of international giving is outpacing overall giving for all foundation types. Community foundations’ international giving grew the fastest. Independent foundations reported the slowest growth in international giving, nonetheless their rate of growth in international funding surpassed the growth in grant dollars overall.
- #9 Giving to U.S. based international programs grew faster than all other types of giving between 2006 and 2008. Historically this has been true of foundations to rely more heavily on U.S. based agencies, though there is also the more difficult environment for funding overseas post 9/11. And in fact, more than half of sampled foundations provided international support. Foundation Center surveys show that the more demanding post 9/11 regulatory environment is discouraging foundation giving outside the U.S.
- #10 Of the nearly $2.1 billion in cross-border giving reported in 2008, global programs coordinated by Western European organizations – such as Switzerland-based World Health Organization – ranked first with over 26% of these dollars. An additional 17.6% supported the work of Western European organizations in specific regions of the world outside of Western Europe. Among grant dollars going directly to the regions of benefit, Asia and the Pacific accounted for the largest share at 18%, followed by Sub-Saharan Africa.
- #11 The next two slides show different statistics but share the same story. This slide shows the growth of international giving overall since 1988 – a rise to $13.3 b in 2008 – this is giving by foundations and individuals.
- #12 This slide from the Foundation Center shows how foundation giving internationally has also increased significantly since they started keeping track. Numerous factors helped to moderate the overall decline in giving – including international giving, including the decision of funders to reduce operating expenses, continuing gifts and bequests from donors into new and existing foundations, and increased giving by the Bill and Melinda Gates Foundation. Excluding Gates, estimated foundation giving would have decreased by over 9%. How increases in international grantmaking will affect the philanthropic field: Foundation giving will likely show modest growth in the short-term, but in the longer term the overall philanthropic pie is going to get bigger, and the share of international grantmaking is likely going to increase. Relatively younger donors who are more globally focused will continue to build their foundations over coming years, bringing additional resources to the field. Many critical priorities, such as the climate crisis, improving the world’s health and nutrition, and supporting human rights and greater political stability through cross-cultural engagement and understanding – will only grow in importance.
- #18 I work with both non US foundations as well as US foundations with global grantmaking interests across all types of foundations. We work with members to answer their questions about global philanthropy, as well as connect funders to one another with similar interests. NGOsource.. My colleague Marty Schneiderman will share later on about more the mechanics of culturally sensitive grantmaking through our NGOsource project .
- #19 So thank you very much. I’m happy to answer questions later on during the Q&A session, or you can contact me at the Council as well. Thank you!