Private Wealth, Philanthropy, and Social Development

Abstract

Growing income inequality has created excessive barriers to social mobility for the poor. Charitable giving by the wealthy can reduce the societal effects of the income gap by reinvestment in public goods such as education. We apply the cipp model to investigate the role of philanthropy in advancing educational opportunities in the United States and China, using historical and contemporary cases of individual philanthropists. The findings suggest that the cases reviewed in this study created mechanisms by which to contribute to social development in their respective countries. Government policies play a key role in philanthropic development, particularly in China. It is important to continue to foster a supportive environment for the sector to grow, which may include expanding tax incentives, emphasizing performance-based funding, and eliminating administrative barriers. In short, educational philanthropy holds great promise for reducing opportunity gaps and economic inequality, by providing the key to success for future generations.