I remember when I was first studying at university, they always told us one thing in particular and it follows me like a red thread: you should not constantly give a person a fish, but teach them how to fish. To this day, this idea is in my head and I give it all sorts of interpretations, both simple and complex. For example, if you give a fish, one day the fish runs out, or you do not give it to them, the person already has an expectation (dependence), they expect that someone will give them a fish. Whereas, if you taught them to fish or directed him to study somewhere, then now he would not be dependent on you, and they and you would help the next people. In other words, by teaching a person, you give them a skill, and they learn that they have the skill and can not only learn new ones, but also pass them on. Then I thought about how important this expression is, especially if you are a helping professional or are involved in philanthropic activities.
Imagine how many communities could be strengthened this way, by teaching and raising each other. But not everything can be ideal like this, right? And let us start by being honest with ourselves and others: it is not the case that people willingly do not know how to fish or they need the fish. Let us not forget that it is often easier when a person waits for the fish, rather than catching it for themselves. In systemic terms, we live in systems where it is beneficial for many to have people in the position of waiting for the fish, because it is easier to implement various policies.
I myself am convinced that in many cases it is the direct transfer of money that can solve a person’s financial and, why not, other problems arising from it. Sometimes people do not need to fall into the concepts of mentorship or other beautiful words, because they are self-critical and self-sufficient from the very beginning. And in fact, it is difficult to talk about philanthropy as love and devotion to humanity without talking about the collection of resources and their transfer. But there are a number of studies on this issue that are worth spending time on (links in the list).
In recent years, I have become more involved in philanthropic activities. I need to make a clarification, because in Armenian and in other languages in general, being a philanthropist sounds much more noble and speaks of the fact that you own a huge fortune. Philanthropist is not translated as rich, benevolent, or any other word, although we may assume it from the first sight. The closest translation may be “mardaser” (մարդասեր, ֆիլանթրոպ), because philanthropy is precisely the love for humanity and the desire to do something for it. But since everything is not that easy, I suggest leaving philanthropy as philanthropy and moving forward, because by not translating the word, the practice will not be lost and, even more so, it will not disappear from our or any other culture. Every person can be involved in philanthropy or philanthropic relations at least once in their life, from its most diverse aspects.
In this section of my reflections, I want to talk about how you can achieve greater results and impact by making even the smallest donations to foundations. On this issue, whether it is more expedient to finance foundations or to distribute the money directly to people, one can have the most contradictory thoughts and arguments. I have no desire to belittle the importance of transferring money to individuals, because some problems really require individual donations to solve them immediately and in the long term perspective.
The arguments presented below may have counterarguments at any time. In this list of arguments, preference is given to donating money to funding organizations. The considerations are based on a variety of sources, including academic and popular materials on philanthropy studies, research that substantiates the efficient, sustainable, and equitable use and distribution of resources.
- Scale of Impact – Funding institutions and organizations raise resources from a wide variety of donors. This allows them to support larger projects and have a greater impact than when you just give money to individuals (not when the money is needed to finally solve a specific problem). This approach increases the scope and scale of philanthropic activities, unlike individual donations and individual benefits. For example, one teenager can implement a fantastic project on artificial intelligence with 500,000 AMD and, by involving her classmates and peers, have a greater impact on the community and the individual development of each participant. Another group of teenagers can have 5-6 group meetings in the schools of Yerevan and some regions with the same amount of money, talking with peers about menstruation, body image, and harmful diets. And so forth.
- Expertise and Strategic Resource Allocation – Funding organizations hire professionals with a wide range of expertise in philanthropy, management, resource mobilization, finance, leadership, education, health, human rights, communications, research, and a number of other areas, who contribute their diverse knowledge to the work of the foundations. These professionals conduct needs assessments, develop strategic intervention plans, monitor program implementation and evaluate their results, and ensure the effective allocation and use of resources. A variety of capacity development programs are also implemented during this time. A number of Women’s Fund partner organizations and groups have started with little or no financial resources, reaching the point where they are the only organization in their region or community that can provide free social work, psychological, and legal services to a number of women in need, as well as being considered local resource and capacity development centers. Moreover, in the case of many, such programs were the first and gave momentum to the activity of these organizations and groups, combining funding with meetings with a variety of specialists and increased experience.
- Accountability and Transparency – The most important thing in targeted philanthropic activities is accountability – financial, programmatic and other – to all stakeholders and partners. Foundations are accountable at any point in their activities – through audits, impact assessments, comprehensive analyses of the resources provided, and a number of other forms. In the Women’s Fund, having the cornerstone principles of accountability and transparent activities, analyses of the previous year’s grant programs, annual activity reports, and financial audits are prepared every year. Another important indicator of transparency and accountability is the provision of participatory grants, during which various representatives of the feminist community participate in the selection of grants. And information about all these processes finds its place in the work of communication specialists.
- Sustainability and Long-Term Solutions – Sometimes, yes, it seems that by giving a person money, we can solve their problems forever. However, along with giving money, there is a need to teach them how to spend that money as effectively as possible. This work becomes even more difficult when a person initially does not have these skills and is in a “difficult situation”. It is important to make a clarification at this point, as the idea sounds quite elitist – we know, others do not. It is important to use dignified and decent approaches to transferring knowledge and skills to people. Unlike individual donations and transfers of money (which can mainly help when there are primary needs), foundations and other funding organizations emphasize sustainable development. In this case, the emphasis is on programs or projects that have a long-term and deep impact, contributing to the strengthening of communities, increasing resilience and another important aspect – the development of self-sufficiency, which strengthens societies as a whole. Thus, by funding an initiative aimed at a group of women, it becomes possible to reach a large group of women with a wide variety of problems and solutions. When working in women’s groups, it is possible to create an environment where one woman is not the only one with a problem, that there are other women with similar problems and just as many ways to solve them. Women’s groups and communities of all kinds can solve their problems, while at the same time having the opportunity to rely on a supportive group.
- Networks and Partnerships – Foundations and other funding organizations establish networks and partnerships with a wide range of government, civil society, and community groups, which ultimately achieve a larger-scale impact. As a result of creating such relationships, it is possible to positively influence a wide range of local, national, or international policies and partnerships. A number of Women’s Fund partners (and organizations) have adopted a number of internal policies that have not been widely used or discussed in the public sector before, including financial, well-being, sensitive and responsive management, responsive budgeting approaches, and internal codes of conduct. Being part of such networks makes it easier for these organizations to approach government agencies and propose changes aimed at more sensitive and responsive approaches. Moreover, inter-city, inter-rural, or inter-regional partnerships allow the Fund’s partners to jointly fight for a number of problems, since they are largely not unified and require more systemic solutions involving a wide range of stakeholders.
- Risk Management and Crisis Response – In situations of risk and crisis, foundations and funding organizations are able to respond quickly, mainly because they have the appropriate capacity and experience. Members of these organizations organize rapid needs and risk assessments, develop contingency plans, and provide mechanisms for support to reach those most in need. Let us recall, for example, the COVID-19 situation. The Women’s Fund was able to direct some of its resources to emergency assistance that included women in a wide range of communities who had immediately and indefinitely lost any type of resource due to isolation or quarantine. During the war in 2020 and the displacement in 2023, the Fund was also able to mobilize resources specifically for a wide range of groups of women affected by this very situation. This, of course, also speaks about partnership relations and a climate of trust with other donor and partner organizations, but we should also keep this circumstance in mind and raise awareness in advocacy processes about how important trust-based relationships are in risky and non-risky conditions. But remember (and be honest) that women’s organizations in all regions and Yerevan were on the front lines of the crises of recent years, and as a result of their flexibility, they were able to set priorities in line with the situation and time.
- Strengthening Through Capacity Building – Foundations and other funding organizations invest a lot of resources in capacity building, increasing the skills, knowledge and resources of local organizations, groups and communities. This approach is perhaps the most effective in terms of reducing dependence on external assistance and ensuring the self-sufficiency of these organizations and communities. In the case of the Women’s Fund, there are many examples, which can be attested to by the partners themselves. At least once a year, the Fund organizes the development or increase of emotional and non-emotional capacities for its partners. Healing meetings and various events to break away from the difficult daily routine of work provide an opportunity to rethink life and work. And by spending time with like-minded people and sharing, it is possible to somehow overcome the state of constant burnout. In addition, the development of other types of capacities is also part of the mission of the Women’s Fund. Based on assessments by a multidisciplinary team, the Fund ensures the training or development of the most in-demand skills in collaboration with the most leading specialists in the field.
- Ethically Acceptable and Equitable Distribution of Resources – Ethically acceptable resource allocation is a cornerstone of the philosophy of philanthropy. Foundations and funding organizations develop ethical standards and frameworks to ensure the most equitable distribution of resources possible, with priority given to communities that are systematically neglected/excluded and lacking basic services and resources. These organizations use all their knowledge to collect all possible information to identify the most priority groups and avoid biases. Philanthropic resources, unfortunately, are not unlimited, especially in this day and age when governments can end decades of aid work with the stroke of a pen. Of course, a number of philanthropists are stepping up from behind the scenes to respond to these issues. Funding organizations, including women’s foundations, have developed their own and community-based standards and ethics for using participatory principles to distribute already scarce resources as fairly as possible. The Women’s Fund’s efforts are aimed at using participatory approaches as much as possible in this regard, while ensuring ethically acceptable requirements. Academic representatives of the philanthropy also speak about equitable approaches, noting that structured philanthropy contributes to overall social justice.
- Systemic Change – Another strength of philanthropy is its potential to create or influence systemic change. And, yes we can start the speculations here why for instance in some of the countries governments are cutting international aid as a “war on philanthropy”. As some scholars mention systematically, philanthropy is the servant of democracy.
Foundations and funding organizations have a great capacity to influence public policies and to promote reforms that benefit the entire population. They conduct research, work with policymakers, and especially promote advocacy campaigns that highlight structural and systemic obstacles to development. In the case of the Women’s Fund, if not directly, then indirectly, transformation can be achieved by supporting like-minded organizations and groups to focus on providing primary services and advocacy functions rather than on day-to-day fundraising. Remember, a number of non-governmental organizations provide services that the state cannot provide due to lack of financial and human resources, as well as capacity building at the required scale. Support can range from space to finance, from networks to capacity building. It is important to consider that systemic social change can only be achieved through joint efforts.
The list of justifications can be endlessly expanded to include more economic aspects and benefits, cost-effectiveness, processes to attract new donors and new generations of philanthropy. It is also important to remember that in the face of today’s global and local challenges (climate change, food and water security, pandemics, social inequalities, etc.), the role of foundations and funding organizations becomes even more critical. Their ability to respond quickly and strategically ensures that resources respond to urgent needs while laying the foundation for a sustainable future.
The question arises whether it is necessary to use so many resources for administrative expenses. Now let us imagine that a foundation is operating, but does not have a person who is competent enough to organize these expenses. Is it possible to imagine a “one-person foundation” that works with almost 100 different partners? Can one person deal with applications, reports, organization, visits, training, develop a communication strategy, make timely publications, etc., etc. Is it possible in this digital age not to have social media pages, websites that seem to us to be free, but are not, at all? Is it possible to conduct fundraising, attract new people and not require resources for all this? No, not at all. This is what Dan Pallotta talks about in his fantastic TED talk, as well as in a number of articles. Well, now explain to people that their work, dedication, true belief in the work being done, and 100% investment should be listed as overhead in some reports. And would you ask the same question to a business? Since when did a person’s work and love for humanity become an overhead?
So, back to the point, while direct donations can provide individuals with a temporary solution to a problem, foundations offer strategic, systemic, sustainable, and transformative impact. Their ability to pool resources, leverage expertise, ensure accountability, and drive systemic change makes them indispensable partners for social progress. By supporting foundations and grantmakers, we can maximize the access to the resources and create lasting, transformative impact.
Hey, yes, and by the way. Remember, every time you make a donation, your contribution is not just a donation to someone, it can be a catalyst for a greater change.
List of references
- Give Directly (2020), Research on cash transfers, Overview on Existing Research on Cash Transfers | GiveDirectly
- Illingworth, P. (2017). Philanthropy and Well-being: The Role of Charity in Promoting Human Flourishing. Journal of Social Philosophy, 48(4), 492-510.
- Moody, M., & Breeze, B. (2016). The Philanthropy Reader. Routledge.
- Palotta, D. (2013) The way we think about charity is dead wrong | Dan Pallotta, TED Talk, The way we think about charity is dead wrong | Dan Pallotta
- Payton, R. L., & Moody, M. (2008). Understanding Philanthropy: Its Meaning and Mission. Indiana University Press.
- Reich, R. (2019) Philanthropy in the Service of Democracy. In Stanford Social Innovation Review / Winter 2019, 26-33.
Siran Hovhannisyan
