Methods by Which Charities Are Funded Are Changing - Essay Example

Funding Charities, Literature Review Research shows us that the methods in which charities are funded are changing. There are many out there who would like to have tighter control of the funds they are providing for use by charities. There are however, many who continue to fund charities in a very generous manner. Those of us who wish to immerse ourselves in this activity must understand the procedures necessary. The literature that follows addresses many of these issues. Bishop, M.,& Green,L.(2008). Philanthrocapitalism ( ABC books) uses interviewing to get the information they feel is necessary for their book. They have spoken with most of the major philanthropists throughout the USA, including Bill Gates. These philanthropists have a tendency to want to dedicate their money to charities within their lifetime to see the effects that it makes. This is unlike many of the major corporations such as Carnegie, though we will mention them too. Some of the major persons interviewed in the book were Bill Clinton, Sony Bono, Bill Gates and Christopher Hohn. The belief of all is that we have a shared responsibility, a shared opportunity, and a shared sense of community as reasons to fund charitable organizations (Bishop & Green, 2008). These philanthropists use a major business model in deciding the methods and amount of money that will be given to charitable organizations as that is the model that they are most used to using. Each of them does this work for different reasons, some for name, some for company worth, and some just for the giving. One must be able to determine the reasoning behind the philanthropy in order to determine the best way to fund a charity. This is an easy to read book, written in such a way as to allow good information to be obtained while at the same time, gaining the information that is necessary. There is some unnecessary material in the book that could have been cut out to make it a faster read. It however, is an important read for understanding major charitable giving today. It also addresses the controversial subject of the business model so often ascribed to at this time. Porter, M. & Kramer, M. (2004). (2004).Philanthropy's New Agenda: Creating Value M (Harvard Business Review) is a seminal paper showing some importance. There are many more funds available than ever before and more dollars are made available for charities but the authors wonder if, in fact, those dollars are as well spent. They begin by wondering if the funding available is accomplishing as much as it did before. Administrative overheads are higher and expenses are greater. They also wonder if there is a lack of good strategy determined by the recipients. The authors make a final recommendation that possibly the amount of money available is spread to thinly across to large a group of needs. They do not agree that the methods of how the money is spent needs to change to a specific business model. Anheier E.,List, R. (2000) Cross-Border Philanthropy: An Exploratory Study of International Giving in the United Kingdom, United States, Germany and Japan. Kent, England: Charities Aid Foundation, iii, 128. ISBN: 1-85934-123-3. This is an important work in description, history and functions of three prominent agencies. There is data and analysis that covers both organized and individual philanthropy. The tax and legal issues related to these is explained in a thorough manner. Certainly this is a reference that should be read before working on any venture. The mistakes that can be easily made might be avoided by reading and understanding the information in this resource. Anheier, E., Leat, L., (2006) Creative Philanthropy (Rutledge, 2006).When the subject of gaining value from the philanthropic money provided to charities is reviewed, it is hard to leave out this work done by Anheier and Leat. They question whether the development of philanthropy needs to continue to change. They question whether the business model needs to be used more often. Three phases were listed as the methods that charitable foundations have moved through. Those phases were charity, scientific, and new scientific. Their position is that the foundations have the role of redistributing wealth to the poor, promoting innovation, and creating social change (Anheier & Leat, 2006). There are nine extended case studies available in this book. The major characteristics of philanthropy can be gained from review of these studies. Phillips, R., (2007). The Application of Business Models to Medical Research: Interviews with two Founders of Directed Philanthropy Foundations There is a new trend out there with research money being granted. In this new method the donar plays an active part in how the research money is used. In most cases, there is a business model developed that is much affected by the donar. This approach of using a business model is more and more often used. You will note in the next research here that there has been flagrant argument going on about this happening. Often times the business model is looking for a completely different result than the plans of the charity. The fact that there are tighter and tighter reins being put on money available for funding charities shows us that we must be more and more educated as how to get that funding if we plan to continue to fund our charitable organizations. This is an important article in the understanding of today's funding policies. Fleishman, J., (2007). The Foundation: A Great American Secret-how private wealth is changing the world (BBS). This paper allows the author to say that private wealth in America has done much more than most people would believe. The author uses a large number of interviews and data to show his point. This is a well rounded and well documented paper. It is definitely worth reading as it talks about the true background of philanthropy and may give the reader the right verbiage for future use. The author follows with many examples that are well analyzed before coming to his conclusion. He includes the Rockefeller Foundation, Green Revolution, Sesame Street, Eastern Europe democracy as only a few of the very important projects that have proved great value to this country and others. OFCD, (2009). Geographical Distribution of Financial Flows to aid Recipients (Organization for Economic Co-operation and Development). 2000/2004 discusses the volume and resources of the aide that is available. The data that is published from all qualitative research methods is well developed and well documented using understandable excel spread sheets. There are several multicultural agencies involved. Countries that have received funding are included as well as methods used to claim that funding and in some cases from whom it came. It also reviews some of the decision making that may need to be done before deciding where to go for funding. Carnegie Corporation. Carnegie Corporation of New York. Accessed on November 10, 2009 at www.carnegie.org gives much follow up information on charities and funding. "The advancement and diffusion of knowledge and understanding" is the motto that the Corporation funds under (Carnegie, 2009). The rules are that Carnegie will fund charities in the United States with an exception of the British Commonwealth which can receive up to 7.4% of funding for charities. The areas that they fund are education, international peace and security, international development and strengthening U.S. democracy (Carnegie, 2009). The Corporation has historic roots back to the year of 1911 when Carnegie sold his steel company for $480 million and spent the rest of his life funding charities. This site tells you how to apply for available funds and the steps to follow. Why Government and Charitable Research Funding Agencies Should not Seek Commercial Control of Returns from the Research they Fund. (Clinical Experimental Pharmacology and Physiology, 2002). This is the other side of the coin with argument evaluating the older ways of funding charitable research and the new thoughts related to the return of some funds to the foundation based on royalty. This according to the argument provides more money to fund more projects. The other side of the argument presented is that this is counterproductive. This is an excellent article that helps in determining what kind of funding might be chosen. Most of the above mentioned books and articles are detailed and well researched but there are also a few internet sights that are worth reviewing for the information available there. Some of those follow. http://fdncenter.org This is a directory of the most well known international organizations and foundations available. http://www.usig.org Facilitates international grantmaking by providing practical information and resources for grantmakers and grantseekers. Ashoka-Arlington, Virginia. This is a place to go to help search for new ideas being presented throughout the world. The web site gives information on selection procedures, job and volunteer opportunities, and provides a donation form. Chaities Aid Foundation-This web site provides information on how to contact thousands of charities. Grantmakers without Borders-Provides free advice, alternative resources for information, and increases opportunities for communication. International Directories of Foundations: A Resource List-Provides a compiled list of directories for foundations throughout the world. In conclusion, the research related to funding charities is varied. There is some controversy at this time as to how funding should occur and how much influence the philanthropist should have over that funding. Research into this subject will help us to understand the argument and solve it in our own minds. It will also show us the best way to get the funding needed, in today's world, to fund charities. Read More