Philanthropy in the United States has not just survived several centuries, it has become the basis of a special social contract between private capital and the public good. Today, billions of dollars are distributed each year through foundations, initiatives, and investments with “social impact.” But it didn’t start with billions, it started with an idea.
Colonies, Theologians, and the First Mission
The roots of American philanthropy go back to the seventeenth century. The first corporation in the Thirteen Colonies was Harvard College (1636), founded not by businessmen but by theologians. Its purpose was very clear: to train priests.
By the early eighteenth century, the first philosophical justifications for public utility as a way of life were emerging. Theologians and educators of early America, from Puritans to rationalists, saw charity not as altruism but as an obligatory part of the life of a good citizen. This did not override the Christian spirit, but it was already embedded in the secular and political reality of the emerging nation.
Franklin and the Birth of Public Initiatives
Benjamin Franklin became not only the founding father of the United States but also the architect of a new model of urban participation. His projects, from the first subscription library to hospitals and educational academies, demonstrated an early form of what today would be called “social entrepreneurship.”
Franklin didn’t just hand out money. He inspired the pooling of resources and the creation of institutions that last longer than individual donations. His approach can be considered the turning point from handouts to institutional, structural philanthropy.
The Age of Big Capital
By the nineteenth century, the American economy had entered a period of rapid growth. And with that growth came new forms of responsibility.
George Peabody
One of the first to invest systematically in public projects was financier George Peabody. He worked between Baltimore and London and became a symbol of the transition from national to transnational philanthropy. His projects, including libraries, museums, and affordable housing, became a benchmark for richer followers.
Andrew Carnegie
Carnegie sold his steel empire and channeled almost all of his 90% fortune into foundations, libraries, cultural centers, and universities. His credo: “He who dies rich, dies in disgrace.”
Carnegie didn’t just create institutions. He was shaping a system where access to knowledge was the key to social mobility. His foundations supported enlightenment, culture, and international peace, and the idea of “responsible capital” became the new norm among the super-rich.
John Rockefeller
The Rockefellers took philanthropy to the level of scientific design. Together with experts, they strategized reforms in health care, education, and agriculture. More than 80% of the elder Rockefeller’s fortune went to medicine, from prevention to basic research. It was in this paradigm that “problem-solving philanthropy” was born, which influences causes rather than consequences.
Institutionalization and Globalization
With the growth of wealth in the post-war decades, US philanthropy became a global force. Let’s take a look at the Ford Foundation
Becoming the largest private foundation in the world, the Ford Foundation has expanded its activities worldwide. From democratizing education in Italy to agricultural reforms in India and Africa, the foundation’s philosophy has been to modernize societies through knowledge, equality, and access.
Ford wasn’t always successful: attempts to implement the American legal model in India didn’t work. But the very fact of trying to reform systems was already a step beyond philanthropy per se. It was a new role: an ally of states in designing the future.
What Do We Have Today?
Philanthropy in the US is not just a distribution of wealth. It’s a historically rooted institution that:
- Acts in parallel and in addition to the state,
- Sets the agenda from the green revolution to human rights,
- Creates an infrastructure to address challenges that remain outside the crosshairs of short-term politics.
The story of American philanthropy is a tale of the transformation of power, capital, and ideals. From Harvard’s spiritual mission to global foundations with billion-dollar budgets, it’s been a 400-year journey. But at its center has remained the question: How can the private good be used for the common good?
Today, this question is getting louder and louder. Society demands transparency, accountability, and real impact. Foundations are responding with new strategies, from impact investing to supporting local communities. But most importantly, American philanthropy remains a living mechanism for redefining what it means to be useful.