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The possibility of a new era for philanthropy is probably better suited for a thesis than a blog. Nevertheless, a convergence of new data and observations has me thinking on this subject. Please join me to consider the possibility that we may be witnessing the dawn of a richer philanthropic future.

Big Idea Number 1: Do we have enough? John Bogle, now 80 years old, founded the Vanguard Mutual Fund Group in 1974. In an interview for the most recent issue of the Journal of Financial Planning, he commented on the genesis for his thinking in his book, Enough. “In 2005, I read this wonderful poem by Kurt Vonnegut, in the New Yorker magazine. It followed a party given by a billionaire hedge fund manager, whose guests included Joseph Heller and Kurt Vonnegut. Vonnegut noted that the party’s host had made more money in a single day than Heller had made in a lifetime from his novel Catch-22. Heller responded that he had something the billionaire will never have: enough.” Bogle continued musing, “Enough is an important concept about coming to grips with what you really want and need in life and your responsibility to self, family, career, and community.” How many others are coming to the same conclusion?

Big Idea Number 2: Srini Pulavarti, Chief Investment Officer for the University of Richmond’s Spider Management Company, recently gave a presentation where he included four data charts that definitely portrayed a society that has enough. Chart 1 showed dramatic growth in the average size of homes from 1982 to the present. Chart 2 showed a sharp decline in the average number of people living in each home over that period. With fewer people living in larger houses, Chart 3 was unsurprising as it showed a dramatic increase in the quantity of “stuff” owned per person over the same time period. Chart 4 showed that this accumulation of houses and stuff was largely financed, and now consumers are burdened by a record level of debt. Could we be at an inflection point following a 26-year trend of accumulating stuff, where we will begin to reduce the amount of stuff we own? 

Observation Number 3: On CNBC last week, I heard a talking head from the travel industry opining, perhaps self-servingly, that coming out of this recession people are showing a propensity for buying experiences as opposed to buying stuff. Could it be that the absolute decline in the value of tangible assets – equities, homes, antiques and other stuff – is causing a shift in the perceived value of this stuff compared with the value of intangible assets like sharing a vacation with family, serving others and serving a purpose larger than oneself?

Observation Number 4: After two years of feeling in some senses akin to the Maytag repairman, my life has gotten very busy again at The Community Foundation. Some large donors who stopped giving to their donor advised funds last year have recently begun to give generously again. Many conversations about new funds that have long lain dormant have sprung to life. There seems to be a new urgency to giving before year-end. Certainly the recent rise in the equity market is a key factor. Fear of possible higher tax rates next year and lower deductibility of charitable giving – both bandied about by political powers that be – could be driving some of the urgency. But, could it also be that the recession has caused many of us to step up our giving to help people who were hurting worse than ourselves? And, could it be that we enjoyed the way we felt when we did that? And, now that assets values have partially recovered, could it be that we are seeing consumer preferences shift from consumption to philanthropy?

Cautionary Data Point Number 5: In Giving USA Spotlight (Issue 2, 2009), data is presented about the pattern of giving after recessions from the Great Depression to the present day. Likening the present recession more to the 1973-75 recession than to the Depression, this data-rich research concludes that giving from households and individuals will likely not return to 2007 levels until at least three years after the recession ends. If donors follow historical patterns, then the recent burst in philanthropy will prove short lived. However, it is also possible that philanthropy will benefit from a shift in consumer preferences from spending on stuff to spending on intangibles. 

On Tuesday, October 27, The Community Foundation will host the largest crowd ever at its Annual Luncheon. Attendance has shot up by 20%, following a decade of flat attendance, and goodness knows the number of donors this past year has not increased by 20%! People are inspired by having participated in the 2009 Safety Net Fund, and they are now voting with their feet. Could we be witnessing the dawn of a new era for philanthropy?