November 13, 1997 | Read Time: 2 minutes
Foundations are “genteel, high-society do-gooder institutions that are becoming self-perpetuating entities that amass more and more wealth and share less and less of it,” concludes the San Francisco Bay Guardian (October 8) in a series of nine articles on philanthropy it entitled “Pulling the Strings.”
What’s more, the Guardian said, foundations “are playing a significant role in shaping the political debate in America — mostly on behalf of those already wealthy and powerful.”
While the articles focused on foundations nationwide, the alternative weekly specifically criticized grant makers in the San Francisco area for not giving a big enough percentage of their endowments to charity. In a study of 15 of the largest foundations in the metropolitan area, the newspaper found that endowments were growing by as much as 20 per cent a year but that foundation spending had not kept pace. It estimated that if foundations in the area started giving 10 per cent of their assets away a year, the region would receive $517-million more in grants annually. Grant makers are required by federal law to spend at least 5 per cent of their investment assets on grants and related costs.
The newspaper reserved its harshest criticisms for the ways foundations have sought to influence public policy.
“As foundations have grown and government money has shrunk,” the Guardian said, “the private philanthropic sector has replaced the public sector as the source of funding for many political and cultural organizations — and the foundations have started using that immense power to control the political agenda.”
Articles explored different ways that foundations have sought to influence public policy, such as by supporting newspapers that conduct “civic-journalism projects” and creating non-profit advocacy organizations that support pro-business interests. As an example, the newspaper cited the Energy Foundation, which was created in 1991 by the Pew Charitable Trusts and the John D. and Catherine T. MacArthur and Rockefeller Foundations.
The Energy Foundation has sought to build cooperation between environmental organizations and utility companies. However, the Guardian says the foundation has done more to promote the interests of the companies than to preserve the environment or help consumers.
The articles in the series are available at the Guardian’s World-Wide Web site: http://www.sfbg.com.
