Leaders who Have Paved the Way for Modern Philanthropy

Modern philanthropy has come a long way over the past decade. Since its mainstream adoption in the 19th-century, philanthropy has been a significant source of income for religion, healthcare, the arts, and education in the United States. Today, the philanthropic sector is valued at  $449.64 billion and profoundly impacts everyone’s lives in some form.

Some of the leaders who helped shape the current United States philanthropic sector have unsurprisingly been some of the wealthiest donors and influential leaders in the world. Starting with such wealthy individuals in the late 1800s, we can see how modern philanthropy started to take hold through formal philosophies, institutions and other organized projects. Here are the leaders who helped set the foundations for and inspire today’s philanthropic pursuits.

Andrew Carnegie

Steel magnate Andrew Carnegie became one of the most vital promoters of philanthropy in the modern age. In an 1889 article published in the North American Review, Carnegie argued that millionaires should be ashamed to die rich and instead they should use their wealth to organize benefactions that everyday people will gain lasting advantages from. The concept, known as “The Gospel of Wealth,” advises the rich, including Carnegie himself, to create living trusts —  or foundations —  that distribute their wealth for the public good during and after their passing. This essay set the stage and the standard for modern American philanthropy.

In 1911, Carnegie went on to establish the Carnegie Corporation of New York with the mission to promote “the advancement and diffusion of knowledge and understanding.” which became one of the largest and most well-known American grant-making foundations. With over a century as the most influential foundations, they have perpetually focused on endowing over 2,500 Carnegie libraries worldwide and have support reform, relief and research goals that focus on educational progress and the advancement of international peace.

John D. Rockefeller

In 1890, John D. Rockefeller, Sr. started his philanthropic career by funding the University of Chicago. Under Rockefeller’s blessing and direction, the university shed its denominational requirements allowing the institution to pursue scientific research and set a new educational standard which was one of the first instances of how philanthropy can create powerful change.

By 1913, the oil magnate created the Rockefeller Foundation to promote the well-being of mankind throughout the world. His son, John D. Rockefeller, Jr., remained dedicated to this mission. Since its inception, the foundation has pioneered efforts like the Green Revolution, which combats the global hunger crisis by increasing agricultural production. Both Rockefeller and Carnegie set the standard for philanthropic pursuits through their foundations, which were both the first to implement business approaches that made investments with high ROIs. 

Margaret Olivia Sage

Margaret Olivia Sage became the first woman to make an impact on the lead-up to modern philanthropy. When her husband, Wall Street financier Russell Sage passed away, Margaret pledged his fortune to philanthropy. In 1907, she founded and endowed the Russell Sage Foundation, which became dedicated to applying social sciences to develop effective and systemic solutions to the world’s social problems. Sage demonstrated to the world that both women and men could lead the way in creating a better society through philanthropy. She effectively became the frontrunner to women who became heavily invested in family-run philanthropies, including Susan Alice Buffett, Melinda Gates and Pricilla Chan.

Bill & Melinda Gates

Modern philanthropy may not be as robust today without the generosity of Bill and Melinda Gates. The Microsoft founder and his wife formed The Gates Foundation in 1999, which remains committed to global health and education access. With the help of donations from Warren Buffet, it became the largest philanthropic organization in the world. By 2003 the foundation affords 99 percent of all public libraries in America with Internet access. In 2010, they pledged $10 billion to develop vaccines for the world’s most vulnerable countries. These are just two examples of the large-scale initiatives that they established within their first decade of service.

The organization also funds grassroots organizations to help provide support against viruses and disease. Among some of their projects, they established Avahan in 2003. The project helps fight AIDS and the stigmatization of the disease in India. Indicative of the Gates’ pragmatic adoption toward philanthropy, Avahan promotes prevention campaigns and organizes in-person meetings to discuss the disease and how to prevent its spread. A global enterprise, the project consults with WHO experts, philanthropists and engage with local, non-governmental organizations to spread education and outreach.

In 2010, Bill and Melinda Gates, in collaboration with Warren Buffett, who pledged to give away 99 percent of his personal fortune over his lifetime, announced their Giving Pledge campaign. The initiative encourages the wealthiest individuals and families in the world to pledge a majority of their fortunes to philanthropy. By 2014, over 125 pledges were made and wealthy members include Elon Musk, Sir Richard Branson and Reed Hastings.