A new book by Glenn Galaich, president of a ‘spend down’ foundation, argues that modern philanthropy has become an anti-democratic process that gives too much power to the wealthy. Galaich, who has worked in philanthropy for years, says that wealthy donors receive large tax breaks to put their dollars in ‘donor advised funds’ held by foundations, and that most of the money isn’t spent.
The Problem with Philanthropy
Galaich believes that the problems with philanthropy are structural. Wealthy donors exercise what he calls a ‘mindset of control’ on the little that is disbursed, picking and choosing the winners. The sums are staggering: American foundations held $1.6 trillion in assets as of 2024, and the wealth-management firm Cerulli estimates there will be $18 trillion in additional transfers into philanthropy in the next 25 years.
Galaich’s book, ‘Control: Why Big Giving Falls Short,’ argues that philanthropy has become a way for the wealthy to exert control over society, rather than a genuine attempt to help those in need. He believes that this ‘mindset of control’ is a result of the way philanthropy is structured, with wealthy donors able to use their donations to further their own interests and agendas.
A Different Approach
Galaich’s own foundation is taking a different approach. As a ‘spend down’ foundation, it is seeking to donate its $169 million in funds by 2029. Galaich believes that this approach is more democratic, as it allows the foundation to focus on giving money to those who need it most, rather than trying to exert control over the philanthropic process.
Original reporting: Mission Local — read the source article.
