IS CHARITABLE GIVING DEAD? NO, BUT IT IS FAILING. Caring world report by Patrick Wecal
In recent years charitable giving has undergone profound transformations since the “golden age” of giving, from the 1990s to early 2000s. This has left a general feeling of pessimism not just in the populations that need assistance, but with the thousands of workers who dedicated their careers to humanitarian work and now are left with no job or path to help others
How did we get to this place?
The landscape of charitable giving has drastically changed from the large-scale event like Live Aid that categorized the “golden age”. A little perspective might help though. As groundbreaking as Live Aid was in raising public consciousness of saving the world, $40 million was raised on the day of the concerts in London and Philadelphia. It’s an impressive number, but the budgets now for humanitarian projects are in the billions of dollars. You need big, big money to have an impact.
Modern charitable giving is done mostly through big-name NGOs such as Red Cross and UNICEF. Charitable giving is much more fragmented and has less participation among the “average person.” The percentage of U.S. households donating to charity fell from 66% in 2000 to just 49.6% in 2022. At the same time we are now in the billionaire era of philanthropy, just 1% of donors account for over half of total U.S charitable giving. High profile billionaires like Bill Gates dominate headlines and funding figures.
Platforms like GoFundMe also give actions to smaller donors and smaller causes allowing donors to give directly to a cause or a person. The charitable giving landscape has shifted drastically from large scale popular movements to more individualized giving and large scale philanthropy from NGOs and billionaires.
Is America no longer the benevolent world leader?
For decades, the United States has been a cornerstone of global humanitarian aid, particularly in Africa. Programs such as PEPFAR and USAID have helped provide aid by giving billions towards healthcare, agriculture, education, and infrastructure. Over half of USAID’s global health spending has historically gone to Africa, specifically Sub-Saharan Africa receiving a majority of the aid. Most Sub-Saharan African Nations are dependent on this aid and cannot sustain their population with their own economy and infrastructure. There will be a devastating shortfall in aid needed and aid received due to the recent budget cuts to PEPRFAR and USAID. There are estimates that diseases like AIDS will return unchecked and fatalities could reach 14 million in five years.
While U.S. cuts are severe and will hold dire consequences this does not need to signal an end to charitable giving for Africa but rather a cause for the shift in who gives and how it is done. The obvious answer is other governments pick up the shortfall particularly in the EU, United Kingdom, Canada, or Nordic countries. The obstacles with getting large donations from these countries are many. Budgets are already set and many have been reduced like in the U.S. Africa is in competition with other humanitarian needs at any given point in time. See Gaza. See the last natural disaster in each country. Then there is the elephant in the room: the Russia Ukraine war. As pressure has increased to support the Ukraine war effort financially, the money needs to come from somewhere. And that somewhere has been foreign aid.
African countries obviously are faced with taking on more of the responsibility of helping their own vulnerable populations. But their ability to raise more government revenue is hampered by their limited economies and comparatively small GDPs. The irony is that some African countries are indeed rich in resources but often the wealth of these resources are lost because of trade agreements made with countries like China, Russia and the United States. African nations have suffered because of corruption in their own governments and theft by illegal miners and smuggling of commodities like gold and Rare Earth Minerals.
Which brings us back to the question, is charitable giving dead? Will private citizens take on more of the responsibility for humanitarian aid? Should we expect corporations to step up, especially those that are selling their products in Africa?
Private philanthropy will always be an option and Mega-donors can move billions quickly into high-impact initiatives. The foundations like Gates and Rockefeller do this, but to have impact there needs to be focus. And when there is focus on a certain issue or population there is the risk you (in this case, Africa) are not the priority. Again, there is growing competition for the humanitarian dollar.
What about those global companies who are taking money out of a country, who are selling products to the very people who need their help? Corporate social responsibility (CSR) could help generate funds from a multitude of companies that deal in Africa. Again the challenge is scale. CSR budgets are typically in the tens of millions for large companies where the shortfall is in the billions so either lots of companies would need to donate or budgets would need to be increased. (Don’t forget America and a growing number of EU countries are going through an “anti-woke” period and thought of anything except growth and profit is becoming less popular in boardrooms.)
Several major charity organizations play a critical role in supporting health, food security, and humanitarian efforts across Africa. The Global Fund works closely with African governments to combat HIV/AIDS, tuberculosis, and malaria, providing medicines, preventive care, and community health programs. GAVI, the Vaccine Alliance partners with countries to expand immunization access, helping to prevent outbreaks of preventable diseases and strengthen local health systems. UNICEF focuses on child health, nutrition, education, and emergency relief, often operating in hard-to-reach areas. The World Health Organization (WHO) supports disease surveillance, outbreak response, and long-term health infrastructure development. Private foundations such as the Bill & Melinda Gates Foundation also have a large footprint, funding vaccine research, agricultural innovation, and initiatives to improve maternal and child health. Elon Musk, on the other hand runs a foundation that basically operates like a research and development arm for his For-profit companies.Unfortunately the richest man in the world has had a negative impact on the state of humanity. His creation of DOGE, the infamous Department of Government Efficiency, started many of the issues with aid relief in Africa and the world. Musk must recognize his legacy right now is about pain and suffering as much as it may be about electric cars and space travel.
What can one average person do?
Everyday citizens can make a meaningful impact in addressing Africa’s humanitarian and development challenges. Small contributions, when pooled together, can fund vital services like vaccinations, clean water projects, and school programs. One way to maximize impact is by giving to reputable organizations that clearly report how donations are used and that have proven track records in health, education, and poverty reduction. Recurring monthly donations, even in small amounts, help organizations plan long-term and maintain stability in their programs. In addition to donating money, everyday citizens can advocate for policy change by contacting elected representatives, raising awareness on social media, and supporting legislation that maintains or increases foreign aid. While one person’s donation or effort may seem small, collective action by thousands of individuals has the power to keep life-saving programs running and ensure that vulnerable communities are not left behind.
A few suggestions for organizations that would welcome your support: