Philanthropy

Most Americans probably think a major goal of philanthropy is to fight poverty. But a closer look reveals that giving by foundations and philanthropists exacerbates wealth inequality in the United States. Look at some of the trends: Thousands of local fundraising groups have been created to raise private money for public schools--and almost all of them channel resources primarily to schools attended by the children of people who live in affluent neighborhoods. Elite colleges and universities are the major beneficiaries of multimillion-dollar gifts, and its those kinds of donations that are a key reason giving to higher education grew 9 percent last year. Yet these institutions are so high-priced, few low-income and working-class students can afford to attend. Arts institutions saw donations soar in the past year, according to "Giving USA," also because of donations by the wealthy. Most of the institutions that benefit from the bulk of private donations are established institutions that cater to the upper and middle classes. Meanwhile, "Giving USA" showed much smaller gains for social-service groups and other kinds of organizations that raise money primarily from people who aren't multibillionaires.