Book Reviews

Whenever popular commentators reach for the name of a philanthropist, chances are that it is Andrew Carnegie, the Scots-born US steel magnate and originator of foundational philanthropy, whom they first recall. But beyond his nationality, source of wealth and scale of giving, how much is actually known about the man who is the poster boy for modern philanthropy? And how might his personal life story account for the subsequent Janus-face of philanthropy in the public imagination - admired and reviled in seemingly equal measure?

A thoughtful observer of philanthropy predicted that at least half of all family foundations would run into trouble within the first two generations, face more difficult problems in the third generation and probably cease to exist soon afterwards. This book is a study of 30 enduring, multi-generational family foundations that have defied Paul Ylvisaker’s pessimistic prediction.

Foundations in the US have phenomenal wealth with assets in the billions. Grant-makers enjoy great freedom in deciding how this money is spent without answering to any regulator or shareholder and have the ability to take risks and innovate where others cannot intervene.  The author of this book - a maverick grant-maker as the title suggests - argues that this luxurious position is wasted.

The question mark in the title of this book is rather redundant as the author harbours no real doubts that the hype concerning philanthrocapitalism is as unwarranted as the lavish praise for the emperor’s non-existent new threads. But, just as it was the swindling tailors, rather than the emperor himself, who persuaded the crowds to applaud their skills, so too it is arguable that any hype about new types of philanthropy has been whipped up by observers rather than rich donors themselves.