December 11, 2008 | Read Time: 1 minute
In its annual report on philanthropy, BusinessWeek magazine (November 25) introduces its articles with this headline: “Who’s Still Giving?” With the U.S. economy stuck in a recession since last December, that’s a question many fund raisers are asking.
The magazine finds, in its annual ranking of giving by top philanthropists over the past five years, that while some donors are slashing their donations, a few, such as the investor George Soros (ranked No. 4), plan to increase their gifts.
Others, like the real-estate investor Eli Broad (No. 20 on the magazine’s list), gave more through their foundations this year than in 2007, despite suffering financial losses.
The economic crisis has made the focus of some philanthropy seem incredibly timely. Pete Peterson, the Wall Street billionaire who ranks No. 8, pledged $1-billion earlier this year to create a foundation aimed at curbing U.S. spending. Now, its first big project — a documentary — is generating a huge response, with universities, retirement centers, and even branches of the American Farm Bureau Federation asking for special screenings.
The biggest lesson for philanthropists, the magazine says, is the need to diversify assets. T. Boone Pickens, the investor who ranked No. 16, lost $2-billion this year, while the former AIG chief executive Maurice R. (Hank) Greenberg’s wealth dropped by 90 percent, complicating his plan to donate most of his fortune, once estimated at $2.5-billion, to charity.
While the economic collapse may be eroding faith in U.S. capitalism, BusinessWeek says in a second article that interest in social entrepreneurship — or “capitalism with a human face” — continues to grow.
The articles are available online.
