Measures of Central Tendency: Mean, Median and Mode
Graduation Thesis
1. The Changing Role of Philanthropy
in Relation to Poverty in the U.S.
by
Koichi Goto
A Thesis Submitted to the
Faculty of Arts and Sciences of
University of Tokyo
in Partial Fulfillment of the Requirements
for the Degree of
Bachelor of Arts
January 2008
2. Contents
Introduction……………………………………………………….………...1
1. Welfare Reform and the Aggravation of Poverty in the U.S. ................. 3
2. The Roots of Poverty and the Neo-liberalism ........................................ 7
1 ) Demoralization of the Poor................................................................................................ 7
2 ) The Invisible Poor.............................................................................................................. 9
3 ) Poverty and the American Unity...................................................................................... 10
3. Historical Overview of Philanthropy: Integrations and Doubt............. 11
1 ) Philanthropy as American Value ...................................................................................... 11
2 ) Integration of Philanthropy and the Government ............................................................ 12
3 ) Integration of Philanthropy and Business ........................................................................ 15
4 ) Business Philanthropy...................................................................................................... 16
5 ) Doubt in the Power of Philanthropy ................................................................................ 18
4. The New Structure of Philanthropy ...................................................... 20
1 ) Democratization: Public Grantmaking ............................................................................ 20
2 ) Diversification of Traditional Foundation Philanthropy .................................................. 23
3 ) Effect of the Recent Change ............................................................................................ 24
5. The Changing Role of Philanthropy ..................................................... 25
1 ) Who Takes the Role? ....................................................................................................... 25
2 ) Redefinition and Reorganization ..................................................................................... 27
3 ) Role of the Government................................................................................................... 29
Conclusion……………………………………………………….………...29
Bibliography………………………………………….………….………...31
3. 1
Introduction
The U.S. history has a long history of controversy about the economic balance between
“the have” and “the have-not”. Since 1930s, the U.S. government had found its position as the
“welfare-state” government, and complemented various welfare programs. However, today’s
U.S. policies put importance on relaxations of “unnecessary” regulations and the open-market
policy. In a sense, the U.S. citizens are now experiencing a kickback seeking for the small and
efficient government. This reverse transition - “the end of modern welfare state – not a
nonwelfare moment but a postwelfare moment” - has not ever been seen in the history (Goode
and Maskovsky 9). In the transition, a lot of socio-political measures were introduced to
enhance free competition. As a result, the competitiveness of the American business firms has
revived particularly led by the financial service and the IT industries. On the other hand, the
poor in the U.S. became more involved in the international competition.
On the other hand, charitable giving is spreading in the U.S. and abroad. Not only by
large foundations giving out vast amount of money, a lot of individuals are making an effort to
contribute to society by way of philanthropic activities. The Foundation Center reported that the
U.S. charitable giving is over 40 billion dollars in 2006. This figure is remarkable if compared
to the total giving by Andrew Carnegie and John D. Rockefeller while they were alive, which is
about 14 billion dollars in the current dollar. Thanks to the economic expansion in the recent
U.S. history, the charitable giving is estimated to keep growing.
4. 2
Figure 1
Giving by U.S. Foundations, 1996-2006
50
40.7
40 36.4
31.8
30.5 30.4 30.3
Dollars in Billions
30 27.6
23.3
19.5
20
16.0
13.8
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Note: All figures based on unadjusted dollars. Figures estimated for 2006.
Source: The Foundation Center, Foundation Growth and Giving Estimates, 2007.
The rapid growth of philanthropy in the last decade shows that philanthropy can have a
possibility of giving a huge impact on nationwide affairs. Therefore, it is meaningful to look for
the possibility that philanthropy can change the actual, and not necessarily desirable, condition
of poverty in U.S. society. This thesis will focus on the significant shifts both philanthropy and
poverty are experiencing in the recent U.S. history, and will make an attempt to seek for the
possibility of philanthropy which may present a new contexture of U.S. society.