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Philanthropy is not without challenges, critiques, and failures. The scale of philanthropy continues to increase in overall donations, in the number of registered nonprofit organizations, and in volunteer hours served (AmeriCorps 2018a, 2018b; Giving USA 2021; Urban Institute 2020). However, the percentage of Americans giving and volunteering is declining. Just over 50 percent of Americans give to charities, and rural and suburban areas are experiencing noticeable declines in volunteering (Grimm, Jr. and Dietz 2018; Zarins and Osili 2018). Fundraisers can keep abreast of these trends and new developments by consulting valuable references and contemporary reviews (see Powell and Bromley 2020, The Chronicle of Philanthropy, the HistPhil Blog).

American understanding of the sector as “nonprofit,” “voluntary,” “independent,” “third,” or “philanthropic” is relatively new. The sector was studied by the Commission on Private Philanthropy and Public Needs, which produced the Filer Commission report in 1975. The nonprofit sector was recognized as a powerful economic and social force with a close, yet sometimes adversarial, relationship to government.

Research reveals a long record of societal improvements through voluntary action, the numerous advances in health, education, civil rights, and the like (e.g., see reporting from Inside Philanthropy, The Conversation, Nonprofit Quarterly, and Philanthropy Roundtable's blog). It also has brought to light the reoccurring challenges philanthropy faces in the political choices of public and private approaches to addressing persistent social issues and inequalities. Challenges also occur when outcomes fall short of promises. Some critiques of philanthropy derive from the continued debate of the proper role of philanthropy in addressing the public good. Tensions are evident in the relation between wealth and power; in the balance between philanthropy's personal and public benefits; and in the power difference between donor and recipient. In addition, philanthropic action is challenged by desires for organizational and individual freedom and the public demand for transparency and accountability. Finally, perspectives vary as to whether philanthropic activity enhances or undermines democracy (Franks 2020).

These tensions are a reminder that philanthropic organizations themselves encounter difficulties. Although most organizations are genuinely focused on the social well‐being of many, some organizations experience teleopathy or the disease of purpose or mission (Payton and Moody 2008, 120). They may lose sight of their mission and focus on maintaining their existence, rationalizing and practicing in a corrupt manner, and finally, involving themselves in morally corrupt activities such as those of the Ku Klux Klan and contemporary hate groups.

The current context of increasing disparity in wealth, racial justice, devastating environmental disasters, and political division intensifies these longstanding questions around philanthropy and highlights hazards and failures. Fundraisers benefit from understanding the possibilities and the limitations of philanthropy in order to help their organizations navigate important philosophical and practical dilemmas. Before addressing the big questions facing philanthropy, it is important to understand the size and scope of philanthropy and the available data that will inform fundraisers' daily activity.