Philanthropy in Africa
By Kathryn
Why do people give their hard-earned money away to others? Why do they give their valuable time, their irreplaceable networks, their limited goods, to others?
As a fundraising professional, these questions are ones I often ask myself. What motivates individuals, wealthy or otherwise, to give of themselves?
In the United States there is a strong culture of philanthropy. There are many reasons this is and could be the case. The idea of the “American Dream,” in which anyone can achieve their dreams and many people rise up from nothing, is perhaps part of it – people are ready and willing to give to others, to help them have the same opportunities for advancement. The US tax laws incentivize giving, especially of the wealthy at greater levels. And our form of democratic government in many ways is seen lacking in the services it provides to its people – which means nonprofit charitable organizations must step in to fill the gaps. People see the value in this, and are motivated to give.
As my team and I began corresponding with our nonprofit client, it became clear that philanthropy and the culture of giving on the African continent did not quite work the same way.
We are working with the client on fund development, and they made special mention of asking us to help with American and European foundations and individual philanthropists. With some further research, it became clear to us why this was the case – the idea of formalized giving of money or services is a relatively new one in Africa.
Traditionally, within many African cultures, support (financial and otherwise) is both freely given and owed to family, to religious groups, and within the local community. While giving in all forms has always been a regular part of life – the term Ubuntu is used often, which means “I am because you are” and refers to individual responsibility to greater humankind – the giving was always informal and not monitored (UBS Philanthropy Advisory, 2014).
As wealth on the continent continues to grow, however (12 Africans appeared on the 2018 Forbes list of billionaires and between 2000 and 2004 the number of millionaires on the continent grew by 145%), many are becoming interested in a larger strategy around giving; many are looking into their local communities and beyond; and many are more concerned with their impact than ever before (Conway-Smith, 2015). In response, networks of individuals interested in more strategic philanthropy, and creating an African culture of organized giving, have formed. The African Philanthropy Forum, formed in 2014 and currently boasting over 430 members, is one such organization.
Since a more formalized concept of philanthropy is newer and tax regulations only incentivize up to a smaller, capped amount, many of local South African nonprofits struggle to raise the funds necessary to effectively focus on their mission. And with the fourth largest wealth-poverty gap in the world (54% of national income is passed through the wealthiest 10% of individuals), there exists a lot of need (Sieff, 2018).
I’m excited to see what African philanthropists can accomplish in the coming years, and in the next week I’m looking forward to talking with some of our local company contacts about their experiences in this area.