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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 actions for 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 Foundations Go
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’s the 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…
12. According to the most 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.
14. What’s driving the growth
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
global philanthropy
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
watering holes
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 Global Philanthropy
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
Council on 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
Notas do Editor
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%.
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.
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.
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.
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.
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.
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 .
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!