A Brief History of Professional Charity

The history of charity is as old as human civilization itself, and the act of helping those in need is virtually universal. Thus, this post is far from a comprehensive history. It does cover a few major points that may be helpful as you seek to understand a bit more about charitable endeavors and what makes them successful. I'll periodically go back to this post and add more information, but I also highly recommend you go pick up a few books on the subject. My favorite is this one.

The Ancients

In our journey through history, we discover the roots of charity. This concept did not spring from modern thought but harks back to the ancient world. Consider the Hebrews. They upheld a system they called "tzedakah", a word we might fathom as "righteousness", but it carries a deeper significance. Tzedakah embraces the essence of charitable giving, not as an optional benevolence, but as a profound moral obligation.

Let's meander to ancient Greece. Here, voluntary donations weren't merely tokens of kindness, but the lifeblood that fueled public works. The spirit of generosity was woven into the very fabric of society.

In the heart of the Roman Empire, affluent citizens often took up the mantle of sponsoring public amenities. This was their mode of expressing public benevolence, a testament to their awareness of communal responsibility. In 28 BCE, Augustus Caesar instituted a system of public welfare in Rome known as the "alimenta", providing support for poor children.

Ancient India is where we encounter dāna - a virtuous act of giving to those in need. This was no mere social service but a central pillar of the Dharmic religions.

Buddhism, too, offers us a valuable lesson in charity. It views giving not just as an act of kindness, but as a pathway to mitigating personal greed, a crucial stepping stone to spiritual enlightenment.

The concept of Ma'at, the ancient Egyptian concept of truth, balance, order, harmony, law, morality, and justice, included responsibilities of caring for others, particularly the less fortunate. Pharaohs often demonstrated their piety by providing for their subjects and donating wealth to temples.

Benevolence (ren) is a central virtue in Confucianism, and it encouraged individuals to provide for the poor and needy. Moreover, Chinese emperors often set up state granaries to store surplus food, which would be distributed to the citizens in times of famine.

The Zoroastrian religion, which originated in ancient Persia, espoused the three-fold path of Asha: Humata, Hukhta, and Huvarshta, which translate to good thoughts, good words, and good deeds. Charity was considered a good deed and was encouraged.

In many Mesopotamian cities, the temple was the center of economic life, and it played a vital role in redistributing goods to the poor. This could be seen as an early form of institutional charity.

In Aztec society, it was the responsibility of the calpulli, a local district group, to support the needs of the less fortunate, including orphans and the elderly. This collective responsibility formed a part of their societal organization and can be considered a form of charity.

Many Native American cultures have traditions of communal support and sharing resources, which can be seen as forms of charity. The Potlatch ceremony practiced by tribes in the Pacific Northwest involved the redistribution and reciprocity of wealth.

The Term Philanthropy

The term "philanthropy" originates from ancient Greece and was first coined in the 5th Century BCE. The word derives from the Greek term "philanthropia," which translates to "love for mankind." The concept is vividly expressed in the myth of Prometheus, who in Greek mythology defied the gods to steal fire and give it to humanity, an act that enabled progress and civilization. Prometheus was therefore seen as the original "philanthropos" – a lover of humanity.

However, the usage of the term "philanthropy" to refer to acts of giving to benefit others, particularly in a structured or institutional sense, took some time to develop. This use of the term evolved over centuries, particularly during the Enlightenment period in the 17th and 18th centuries when the concept of using private wealth for the public good began to take hold in Europe.

The modern concept of philanthropy, referring to large-scale, organized, and systematic efforts to improve human welfare, started to emerge in the 19th and 20th centuries. This period saw the rise of industrialists who accumulated unprecedented wealth and established foundations for large-scale giving. Their efforts shaped our contemporary understanding of philanthropy as a way to use private wealth for public benefit.

Charity in the Middle Ages

In Christian Europe during the Middle Ages, charity was a significant aspect of religious life. The Church played a vital role in distributing alms and supporting the poor, orphans, and widows. Islam institutionalized charity through Zakat, one of the Five Pillars of Islam, which requires Muslims to give a portion of their income to the poor.

In 1348, The Black Death in Europe prompted an increase in charitable efforts, as wealthy patrons fund hospitals, hospices, and leprosy houses.

Charity During the Renaissance

During the Renaissance, charity began to take a more structured form. Hospitals, asylums, and orphanages were founded to support those in need. However, poverty was widespread, and assistance was often limited.

The Renaissance was a period of great cultural and intellectual change, marked by a revival of classical learning and the rise of humanism. These changes influenced how charity was understood and practiced.

The humanistic focus on individual potential and dignity led to a greater emphasis on human welfare and social responsibility, influencing how charity was seen. It led to a view of charitable acts not just as religious duties, but as ways to improve society and human welfare.

The Renaissance saw the establishment of numerous charitable institutions, such as hospitals, orphanages, and homes for the elderly, funded by both the Church and wealthy individuals. For example, in Florence, the Hospital of Santa Maria Nuova, which had existed since the 13th century, was significantly expanded and funded by the wealthy Medici family.

Charity During the Enlightenment

The Enlightenment was marked by a belief in reason, progress, and the potential for human improvement. This influenced views on charity, leading to the concept of philanthropy as we understand it today – using wealth and resources for the public good and social improvement. Rather than simply giving alms to relieve immediate suffering, the focus began to shift towards addressing the root causes of social problems.

As part of the Enlightenment emphasis on civic duty and public discourse, philanthropy started to be seen as a way for individuals to contribute to the public good. This period saw the establishment of various philanthropic initiatives, like libraries, schools, and museums, often funded by wealthy individuals or civic groups.

The Enlightenment brought new perspectives on poverty and those in need of charity. Some thinkers, like Thomas Malthus, argued that charity could do more harm than good by encouraging population growth beyond what resources could sustain. Others started to argue for social reforms, such as better education and welfare systems, as more effective ways to address poverty.

The Reformation

While the Catholic Church continued to play a major role in charity during the Renaissance, the Reformation brought significant change. Martin Luther and other Protestant leaders criticized the Church's emphasis on good works, including charity, as a means to salvation. They argued that faith alone was the path to salvation, leading to different interpretations of the role of charity in religious life.

One of the core tenets of Luther's theology was "sola fide," or "faith alone," which asserts that it is only through faith in Christ's sacrifice, rather than through good deeds or charitable acts, that one can achieve salvation. This was a significant departure from the prevailing Catholic view at the time, which emphasized good works, including acts of charity, as a key component of a faithful life and as contributing to salvation.

However, while Luther argued against the idea that charity could earn salvation, he did not argue against charity itself. In fact, he emphasized that good works, including acts of love and charity towards others, should be the natural outcome of a true Christian faith.

Luther's writings suggest that he saw charity as an expression of love for one's neighbor and a responsibility for all Christians. He argued that a Christian's faith should motivate them to help others not out of obligation or the desire for personal gain, but out of genuine love and concern.

Luther also criticized what he saw as abuses of charity within the Catholic Church, such as the selling of indulgences – where people would give money to the Church in return for forgiveness of sins. He argued that this practice distorted the true meaning of charity and turned it into a transaction, rather than an act of love.

Overall, Luther's views on charity shifted the emphasis from charity as a means of earning salvation to charity as an expression of Christian love and faith. These views had a significant impact on the development of Protestant attitudes towards charity and continue to influence Christian charitable practices to this day.

The Industrial Revolution

The Industrial Revolution in the 19th century led to significant social change, with a widening gap between the rich and the poor. Philanthropy became a way for wealthy individuals to address societal issues. Foundations were established, many focusing on health, education, and social welfare.

It had profound impacts on society, including the way philanthropy was approached.

The Industrial Revolution brought about unprecedented wealth creation. It gave rise to a new class of wealthy industrialists and entrepreneurs who had the resources to give away large portions of their wealth. Some of these individuals, such as Andrew Carnegie and John D. Rockefeller in the United States, became philanthropists on a scale previously unseen.

The Industrial Revolution led to rapid urbanization and a host of social issues, such as poor living conditions, child labor, and lack of access to education. Many philanthropists of the era focused their efforts on these social problems. For example, Andrew Carnegie believed in the importance of self-improvement and education, leading him to fund the creation of thousands of public libraries.

The new wealth created during the Industrial Revolution led to more structured and organized forms of philanthropy. Rather than simply giving alms to the poor, philanthropists began to establish foundations and other charitable organizations to manage their donations and ensure their money was being used effectively. This was the start of "scientific philanthropy" or "philanthrocapitalism," which was based on the idea of applying business principles to charitable giving.

Influential figures like Andrew Carnegie promoted the idea that those who had benefitted most from the capitalist system had a moral obligation to give back. Carnegie's "The Gospel of Wealth," published in 1889, argued that the wealthy should use their riches to help society, which influenced the philanthropic mindset of many industrialists.

The wealth generated by the Industrial Revolution and the international reach of industrialists' business interests led to philanthropy that crossed borders. This was the beginning of international philanthropy, with donations used to support causes not only domestically, but also abroad.

Community Chests

The history of community chests is integral to the history of organized philanthropy, particularly in the United States. The concept emerged in the late 19th and early 20th centuries as a coordinated approach to charity that aimed to more efficiently serve local communities and reduce duplicated efforts.

The first "community chest" was founded in 1913 in Cleveland, Ohio, under the name "The Cleveland Federation for Charity and Philanthropy". This new federation was a pooled, cooperative fundraising body that distributed funds to local charities. The establishment of a single organization to collect funds for local charities was innovative, replacing the inefficient system of multiple independent fundraising campaigns that competed for the same donors.

The success of the Cleveland Federation led to the establishment of similar organizations across the United States. By the 1920s, hundreds of cities had community chests. The term "community chest" was widely adopted, signifying a communal effort to pool resources for local charitable causes.

In 1928, the Community Chests and Councils of America (CCA) was formed to provide a national coordinating body for these community chests. Over the years, many community chests merged or partnered with other philanthropic organizations, leading to the formation of the United Way in the 1970s, which has since become one of the largest non-profit organizations in the United States.

Over time, community chests evolved from simply being fundraising organizations to becoming more actively involved in assessing community needs, making decisions about fund allocation, and monitoring the effectiveness of the organizations they funded. This marked a shift from a focus on charity (providing immediate relief) to a focus on longer-term community development and welfare.

Today, community chests are less common as independent entities but their principles are integrated into broader philanthropic organizations like the United Way. The community chest model of coordinated fundraising and distribution continues to have a significant influence on philanthropic efforts.

John D. Rockefeller

During this time, John D. Rockefeller (1839–1937) played a significant role in shaping modern philanthropy and charitable foundations.

Rockefeller, who made his fortune through the Standard Oil Company, is known for his contributions to various fields such as education, science, health, and arts through his charitable foundations. He introduced a strategic and structured approach to philanthropy, which was quite different from the traditional random and paternalistic methods of giving prevalent during his time.

Rockefeller established several major foundations with a global reach. The Rockefeller Foundation, created in 1913, aimed at promoting the well-being of humanity throughout the world. It was one of the first foundations to conduct its own research and to start a program of international fellowships and scholarships. Earlier, in 1901, he funded the establishment of the Rockefeller Institute for Medical Research (now Rockefeller University), which became a pioneering biomedical research institution.

Rockefeller is credited with professionalizing philanthropy, as he incorporated business practices into charitable giving. He applied principles of efficiency and accountability to his charitable activities, hiring professionals to manage his foundations and make strategic decisions about where to direct resources.

Instead of simply providing relief for immediate problems, Rockefeller’s approach to philanthropy often involved trying to understand and address the underlying causes of social issues, such as poverty and disease. This was a significant shift in the way charitable work was conducted and has influenced the field of philanthropy to this day.

Rockefeller believed in what he called "scientific philanthropy," meaning the use of scientific methods to identify and solve societal problems. This approach often involved funding scientific research, as seen in his support for medical research and education.

Rockefeller made significant contributions to public health, including the funding of sanitation and health education programs. The Rockefeller Foundation played a critical role in eradicating hookworm and yellow fever.

Rockefeller's philanthropic efforts were global in their reach. His foundations funded projects not just in the United States, but in dozens of countries around the world. This international approach to philanthropy was relatively new and has influenced the work of future philanthropists.

In summary, John D. Rockefeller transformed the way charitable giving was conducted, introducing a more strategic, systematic, and global approach to philanthropy. His influence continues to be felt today, as many of the principles he pioneered are now standard practices in the field of philanthropy.

The Civil War in the United States led to significant changes in the way charitable activities were organized and conducted. This included more systematization, the growth of philanthropy, greater government involvement, creation of settlement houses, and focus on advancements in health and education.

In 1935 The U.S. Social Security Act is passed, creating a government safety net for the elderly, the unemployed, and the disadvantaged. Similar programs were passed that unlocked government funding for social care.

Unemployment Insurance (1935): This program provides temporary income assistance to eligible workers who become unemployed through no fault of their own and are seeking employment.

Medicare (1965): This is a federal program that provides health coverage for people aged 65 or older or with certain disabilities.

Medicaid (1965): This is a state and federal program that provides health coverage for some low-income people, families and children, pregnant women, the elderly, and people with disabilities.

Supplemental Nutrition Assistance Program (SNAP) (1964): Formerly known as food stamps, this program provides eligible low-income individuals and families with funds to purchase food.

Temporary Assistance for Needy Families (TANF) (1996): This program provides temporary financial assistance for pregnant women and families with one or more dependent children.

The Red Cross

After World War II, charity became a global concern. International charities, such as the Red Cross and UNICEF, grew in prominence, responding to crises worldwide. The concept of international development emerged, focusing on long-term solutions to issues like poverty and disease in developing countries.

In particular, the emergence of the International Committee of the Red Cross (ICRC) in 1863, and subsequently the American Red Cross in 1881, had a significant impact on the history of fundraising. Their work contributed to the professionalization and internationalization of fundraising and charitable giving.

Professionalization of Fundraising: The Red Cross played a crucial role in the professionalization of fundraising. As one of the world's first major international humanitarian organizations, it needed to develop strategies and techniques to raise funds on a significant scale. The Red Cross pioneered many fundraising techniques that are still used today, such as direct mail campaigns and using the media to raise awareness and solicit donations.

Disaster Relief Fundraising: The Red Cross is perhaps best known for its disaster relief efforts. When a disaster strikes, the Red Cross often leads fundraising efforts to provide immediate aid and long-term support to affected communities. These large-scale campaigns have influenced the way other organizations fundraise following disasters.

Internationalization of Giving: The Red Cross helped globalize charitable giving. By raising funds for crises and issues all over the world, it helped promote the idea that people can and should support charitable causes outside their own communities and countries. This set a precedent for many other organizations and causes.

Branding in Fundraising: The Red Cross is one of the first examples of effective branding in fundraising. The universal recognition of the Red Cross symbol helped create trust and facilitated fundraising efforts on a global scale. It demonstrated the power of a strong, respected brand in securing donations.

Regular Giving: The Red Cross helped popularize the concept of regular giving, where donors commit to giving a certain amount on a regular basis. This model provides organizations with a more predictable income stream and helps to cultivate long-term relationships with donors.

Volunteerism: The Red Cross established a model where volunteers are not only service providers but also key contributors to fundraising efforts. Volunteers help organize events, solicit donations, and broaden the reach of the organization, demonstrating the intersection of volunteering and fundraising.

The Red Cross's influence on fundraising continues to this day, as many of the practices and principles it developed are now standard across the nonprofit sector.

The YMCA and the Ward System

The Young Men's Christian Association (YMCA) has played a significant role in the development of modern fundraising methods, particularly in relation to professional fundraising. In fact, it was among the first organizations to introduce the concept of a fundraising "campaign," a term borrowed from military jargon to describe a concentrated, time-limited effort to raise money for a specific cause.

The YMCA's innovative fundraising strategies took root in the late 19th and early 20th centuries. In an era when most nonprofits relied on sporadic donations or bequests from wealthy patrons, the YMCA recognized the potential for a broader base of support.

One of the key figures in this process was Charles Sumner Ward. In 1892, Ward joined forces with his friend and mentor, George Williams – the founder of the YMCA – to raise funds for a new YMCA building in Springfield, Massachusetts. Using a systematic approach, they mobilized a large group of volunteers to solicit donations from the community. This was the start of the so-called "Ward System," which would later evolve into the modern fundraising campaign model.

The Ward System involved creating a fundraising goal, building a large team of volunteers, systematically identifying and soliciting potential donors, and using public events and media to build awareness and enthusiasm. It was a highly organized, methodical approach that involved elements of sales, marketing, and public relations – all fields that were just beginning to emerge as distinct professions.

The Ward System proved to be incredibly effective. Not only did it help the YMCA to raise the funds they needed, but it also helped to engage the community and build strong relationships with donors. Recognizing its potential, the YMCA began to use this approach in other locations, and it soon spread to other organizations as well.

In the early 20th century, the YMCA continued to refine and expand its fundraising methods. They were among the first to establish a dedicated fundraising office, recognizing the need for specialized skills and full-time attention to this work. This was a key step in the professionalization of fundraising.

Moreover, during World War I, the YMCA was integral to the United War Work Campaign, a massive, coordinated fundraising effort that brought together seven major wartime service organizations. This campaign, which raised over $200 million in a single week, marked one of the first instances of large-scale, professional fundraising.

Through these efforts, the YMCA played a significant role in developing the methods and principles of modern fundraising. They helped to establish fundraising as a profession, recognizing the need for strategic planning, systematic implementation, and relationship building in the fundraising process. Their innovations have had a lasting impact on the nonprofit sector, shaping the way organizations raise funds to this day.

Professionalism of Fundraising

After WWII, the importance of organized, strategic fundraising was widely recognized. The profession began to establish standards and best practices, and fundraising became viewed as a distinct career path. This led to the establishment of organizations such as the Association of Fundraising Professionals (AFP), which was founded in 1960.

As the sector professionalized, there was an increased focus on ethical standards and transparency in fundraising. This was in part a response to public concerns about how nonprofits were using their funds. Guidelines and regulations were established to ensure ethical fundraising practices, increasing donors' trust in nonprofits.

Direct Mail Fundraising

The roots of direct mail fundraising can be traced back to the late 19th century when organizations started using mail for charitable appeals. However, it wasn't until the 20th century that this practice truly began to flourish.

The real breakthrough in direct mail fundraising occurred during the 1930s and 1940s, in conjunction with the growth of mass communication technologies and techniques. During World War II, direct mail became an essential tool for raising funds for the war effort. Numerous organizations, including the Red Cross, used direct mail appeals to gather support. The effectiveness of these campaigns provided a model for nonprofits and validated the potential of direct mail as a fundraising tool.

The 1950s and 1960s saw direct mail become an increasingly popular method for nonprofit fundraising, primarily due to its affordability and the ability to reach a wide audience. Charitable organizations could send a single, compelling message to a large number of potential donors, prompting them to give. This period also saw a greater understanding of audience segmentation, with organizations starting to target their mailings based on demographic data.

In the 1970s, the field advanced with innovations in printing technology, allowing organizations to create more visually appealing and personalized mailings. At the same time, the evolution of databases enabled more sophisticated tracking of donor information, making the targeting of mailings even more precise.

In the 1980s and 1990s, there was an increased focus on donor retention, in addition to acquisition. It was during this time that the concept of donor stewardship started to gain more attention, which involved not just securing the initial gift but also cultivating an ongoing relationship with the donor.

Emergence of Databases

The 1980s and 1990s saw the rise of computer databases for tracking donor information, which allowed nonprofits to manage their donor relationships more effectively. These systems helped organizations to segment their audiences, personalize their communication, and track their donors' giving history.

The concept of a "donor database" essentially started as a physical filing system. Before digital technology, nonprofits would keep track of their donors, volunteers, and other constituents through physical records – think filing cabinets full of index cards or ledger books. While this system worked on a small scale, it was laborious, inefficient, and made it difficult to track long-term relationships or look for patterns in giving behavior.

As computers became more accessible and affordable in the late 20th century, nonprofits started to adopt digital methods for tracking donor information. Early systems were often quite simple, involving spreadsheets or basic database software. These tools provided more efficient ways to store and search for information, but they were still relatively limited in terms of functionality.

The late 1980s and 1990s saw the emergence of more sophisticated donor databases. Software companies began to develop specialized CRM systems designed specifically for the needs of nonprofit organizations. These systems allowed nonprofits to not only store donor contact information but also track donation history, event attendance, volunteer activities, and other interactions. This was a significant step forward, as it gave nonprofits a more holistic view of their relationships with their constituents.

The advent of the internet in the late 20th century brought further enhancements. Online databases allowed for real-time updates and made it easier for multiple people to access and work with the data. They also facilitated online fundraising, as nonprofits could now easily track online donations and integrate this information with their existing donor records.

The 21st century has seen a focus on integration and automation in CRM systems. Modern donor databases often integrate with a wide range of other systems, such as email marketing tools, event management software, and accounting systems. This allows nonprofits to streamline their operations and ensure that they have consistent, up-to-date information across all of their systems.

The Internet

The advent of the internet changed how charity work is done. Online fundraising and awareness campaigns became more common.

The internet has revolutionized fundraising and philanthropy in several key ways, making it easier for organizations to connect with potential donors, streamline the donation process, and expand their reach. Here are some ways the internet has changed fundraising:

Online Fundraising Platforms: The rise of the internet led to the development of online fundraising platforms like GoFundMe, Kickstarter, and Indiegogo. These platforms allow individuals and organizations to create fundraising campaigns for causes ranging from medical bills to community projects to new business ventures.
Ease of Donating: The internet made it easier for people to donate money to causes they care about. Online payment systems enable donors to contribute with just a few clicks, making the donation process quick and convenient.
Crowdfunding: Crowdfunding is a form of fundraising that relies on raising small amounts of money from a large number of people, typically via the internet. Crowdfunding campaigns can go viral, raising substantial amounts of money from donors around the world.
Social Media Fundraising: Social media platforms like Facebook, Twitter, and Instagram have become important fundraising tools. Organizations can use these platforms to share their stories, engage with supporters, and ask for donations. Facebook, for example, allows users to start fundraisers for their birthdays and makes it easy to donate directly on the platform.
Peer-to-Peer Fundraising: The internet has enabled peer-to-peer fundraising, where individuals fundraise on behalf of a cause or organization, typically by tapping into their own networks of friends and family.
Increased Transparency and Accountability: The internet has also made it easier for donors to research organizations before they donate, leading to greater transparency and accountability in the nonprofit sector. Websites like GuideStar and Charity Navigator provide information on the financial health, accountability, and transparency of thousands of nonprofits.
Email Campaigns: Email has become a vital tool for fundraising, allowing organizations to maintain regular contact with their supporters, update them on their work, and solicit donations.
Global Reach: The internet has enabled organizations to reach a global audience. Now, a person can donate to causes halfway around the world, broadening the impact of philanthropy.
Donor Analytics: Online fundraising allows organizations to collect valuable data about their donors, which can then be used to refine fundraising strategies and tailor communication to specific audiences.

While the internet has provided numerous advantages for fundraising, it has also brought challenges, such as increased competition for donors' attention and concerns about the security of online financial transactions. Nevertheless, the ability to connect directly with a global audience and the ease of online giving have made the internet an indispensable tool for modern fundraising.

Donor Centered Fundraising

Historically, philanthropy has predominantly been institution-focused, often favoring the needs and wants of the organizations seeking funds. However, throughout the 20th century, especially in the latter half, a shift started to occur as the field began to realize the importance of understanding and catering to the needs of donors.

Penelope Burke, a significant pioneer in the development of this philosophy, played an essential role in shaping donor-centered philanthropy as we understand it today. As a researcher and fundraising consultant, Burke's landmark study, "Donor-Centered Fundraising" (2003), dramatically changed how nonprofits interact with their donors. She argued for the crucial shift from an institution-centered model to a more balanced, donor-centered approach.

Burke's work underscored the importance of communication, feedback, and transparency in fundraising. Her studies showed that donors were more likely to increase their giving when they were well-informed about the impact of their donations, acknowledged promptly, and communicated with in a manner they preferred. She demonstrated that being donor-centered was not only more ethical but also more effective.

Her influence spurred a substantial shift within the field. Nonprofits began to prioritize building meaningful, long-term relationships with their donors, focusing on their experiences and investing more time in understanding their motivations and expectations.

This marked a significant evolution in philanthropic practices and formed the bedrock of modern donor-centered philanthropy. Nonprofits now consider their donors as partners in their mission, fostering a sense of shared purpose, and in the process, making giving more meaningful and impactful for those who give.

Effective Altruism

There has also been a shift towards effective altruism, a philosophy and social movement that uses evidence and reasoning to determine the most effective ways to benefit others.

The history of effective altruism is relatively recent, emerging as a distinct movement in the early 21st century. While the principles underpinning effective altruism can be traced back to philosophical discussions around utilitarianism and moral responsibility, the structured, data-driven approach we now associate with effective altruism has only been formalized over the past few decades.

Some of the early philosophical underpinnings for effective altruism can be traced back to philosophers like Peter Singer, who argued in his 1972 essay "Famine, Affluence, and Morality" that individuals have a moral obligation to help others when they can do so without comparable sacrifice.

In the mid-2000s, the approach that would become known as effective altruism began to emerge more formally. In 2007, the organization Giving What We Can was founded by moral philosopher Toby Ord, promoting the idea of pledging a significant portion of one's income to the most effective charities.

Around the same time, the charity evaluator GiveWell was established, focusing on assessing the cost-effectiveness and transparency of charities, with the goal of directing more funds towards those organizations that could do the most good per dollar spent.

In the 2010s, the effective altruism movement gained more recognition and started to expand. The Centre for Effective Altruism was founded in the UK, which later became a key organization in the movement, fostering the development of effective altruism chapters worldwide and organizing global effective altruism conferences.

The term "effective altruism" itself was popularized during this period and was prominently featured in Peter Singer's 2013 TED Talk, "The why and how of effective altruism," as well as his 2015 book, "The Most Good You Can Do."

Other organizations and initiatives related to the effective altruism movement, such as 80,000 Hours (which provides career advice for individuals looking to maximize their positive impact on the world) and Open Philanthropy, also emerged during this period.

Today, effective altruism continues to grow as a movement, influencing the decisions of individuals and philanthropists worldwide. The ideas of effective altruism have led to significant shifts in how people consider charitable giving, promoting an evidence-based, rational approach to philanthropy and a focus on global, often neglected issues. It has sparked debates about the moral obligations of individuals and the best strategies to address the world's most pressing problems.

While some critics have raised concerns about the movement—arguing, for example, that it may overlook local problems or that it oversimplifies complex issues—the principles of effective altruism have undeniably shaped contemporary discussions around charity and philanthropy.

Donor Advised Funds

Donor-Advised Funds (DAFs) emerged in the mid-20th century as a tool for organized, effective philanthropy. They were introduced as an alternative to private foundations, providing a simpler and more cost-effective way for donors to make charitable contributions.

The first known DAF was created by the New York Community Trust in 1931, though the model didn't become popular until several decades later. The Internal Revenue Service (IRS) formally recognized DAFs in 1969, with the passage of the Tax Reform Act, which established the legal definition of a DAF and clarified its tax benefits.

However, the concept didn't gain significant momentum until the 1990s, when Fidelity Investments launched the Fidelity Charitable Gift Fund, the first commercial DAF. This introduced a new model, whereby a large financial services company housed a DAF. This fund made charitable giving more accessible to a broader group of donors, not just the extremely wealthy.

DAFs became increasingly popular in the late 20th and early 21st centuries. With their ease of establishment, tax advantages, flexibility, and ability to accept a variety of assets, they became an attractive vehicle for charitable giving. Other financial service companies, such as Vanguard and Schwab, also began offering DAFs, further promoting their growth.

DAFs allow donors to make a charitable contribution, receive an immediate tax benefit, and then recommend grants from the fund to qualified charitable organizations over time. The assets in the DAF are invested, which can allow for potentially tax-free growth, and the donor can advise on the distribution of funds to charities of their choice at their convenience.

By 2020, DAFs had become an integral part of philanthropy in the United States, housing billions of dollars in assets and making significant annual grants to charities. However, they have also faced criticism, with concerns that they allow donors to receive tax benefits upfront, while the actual disbursement of funds to charities can be delayed indefinitely. Despite these controversies, DAFs continue to play a substantial role in the philanthropic landscape.

The Modern Era

In my opinion, the greatest advances of the modern era are yet to come. The rise of technologies like artificial intelligence will allow people to submit grant proposals with ease. Alternative currencies (bitcoin, etc) will transform current planned giving structures. Augmented reality will allow donors to experience the impact of their work in real time. The rise of impact investing and venture philanthropy will blur the lines between business and charity in the quest for social impact. Shortages in planetary resources will require creative new ways of thinking about charity. Philanthropic donor circles, collaboratives, and pooled funds will take some of the fundraising burden off the shoulders of executive directors.