Philanthropy without borders: US private foundation activity in Eastern Europe

Abstract

Worldwide disillusionment with governmental problem-solving, decline in governmental resources, increasing prominence of multinational corporations, and the collapse of communism act as powerful stimuli to international philanthropic activity. US private foundations in particular have been highly motivated by the collapse of communism to act as venture capitalists in seeking grant-making opportunities and philanthropic partners in Eastern Europe. International philanthropy of private foundations can provide expertise in and resources for global as well as regional or local problem-solving. However, resources available must be viewed realistically. This paper puts available foundation resources in perspective. Further, international philanthropy by private foundations is no panacea for the world's problems, and may only be effective at the margins. But to the extent it can be an effective problem solver, it should not be artificially limited by boundaries and laws of any one nation, as it is at present. While reviewing some trends towards increasing activity of larger US private foundations in Eastern Europe, this paper also illustrates small segments of the existing legal, tax and other barriers to international philanthropy. In many instances, simple awareness of some of these barriers will enable potential grantees and philanthropic partners to surmount these barriers. But within the larger context of globalisation of philanthropy, all such barriers to the free movement of philanthropic capital and expertise should be identified and ultimately removed so that international philanthropy, like international trade and free movement of capital and goods, can emerge to an optimal level.