Raissa Frenkel On How Philanthropy is Skewed

Although many advocates of philanthropy (myself included) encourage others to give back to an organization that they believe in, it’s worth noting that smart giving is just as important. It’s natural for donors to want to contribute to causes that have meaning to them, but what happens when too many individuals allocate their wealth in one place?

It’s part of a larger problem where many are afraid to criticize any act of philanthropy as if the act of giving invalidates any concerns about where the money goes. This applies particularly when donations go toward helping with services that exclusively support the wealthy, such as public spaces in upscale neighborhoods. In fact, the wealth gap that marks a disconnect between American economic classes also exists among nonprofits. These types of organizations receive funding, while others that benefit lower-income individuals struggle to receive the assistance that they need.

There’s a lot to admire about the charitable culture in the United States. The breadth of organizations and the willingness of people to give is encouraging, but we must also recognize that we have created a system in which some can practice philanthropy without actually helping those in need.

To illustrate this point, look no further than our nation’s parks. Donations to these public spaces are disproportionately made to benefit parks in high-income areas. This has lead to some cities trying to better distribute where these funds go, though not without controversy. Cities have proven hesitant to guide the direction of philanthropic efforts.

The good news is that some cities are taking the initiative at the government level to fund projects that directly benefit citizens in need. Philadelphia mayor Jim Kenney plans on using a massive gift from the William Penn Foundation to improve public spaces, indicating a level of trust when it comes to letting cities distribute funds.

While philanthropy is not going to supplant taxes as the primary method for funding public works, donations can help fuel much-needed revitalization projects. These city-specific programs shake up the usual list of priorities and try to give attention to projects considered low-priority, if only because of the economic status of those that they benefit.

This necessary emphasis on philanthropic projects that benefit lower-class individuals is not meant to imply that the universities that often receive donations are not providing a valuable service. However, the disparity in big donations just drives home the need for philanthropists to reevaluate who they give back to.

Correcting this inequality in the philanthropic sector will also require the assistance of cities willing to enact city projects that better distribute philanthropic funds. A shift in how we perceive philanthropy is also necessary, to recognize the end result of donations and organizations that can make a genuine impact on the less fortunate.

About the Author: Raissa Frenkel is an entrepreneur and business veteran with years of experience in the education and energy sectors. She is dedicated to the cause of building a better world, working toward that goal through the Finker-Frenkel Legacy Foundation, an organization dedicated to building a community of like-minded philanthropists. Through the Foundation, Raissa, her family, and many others support causes such as education, religious development, and child welfare. She and her husband Lazar live in Jacksonville, Florida.