The Philanthropy Problem: When giving upholds the very systems it seeks to change
We like to tell ourselves that philanthropy is the antidote to inequality. But too often, it’s the byproduct.
If you work in social change, you’ve likely seen this contradiction up close. Generous funding sustains life-saving work yet it can quietly shape what’s seen as “safe,” “fundable,” or even imaginable. This isn’t a critique of individual donors, but an honest examination of the systems in which philanthropy operates.
Because here’s the truth: wealth inequality and philanthropy are deeply intertwined. Much of the world’s giving flows from fortunes built on extractive industries, inequitable markets, or inherited privilege. Yet the sector tends to gloss over this uncomfortable origin story in favor of the more palatable language of “impact” and “innovation.”
We celebrate outcomes. But we rarely ask:
- Who gets to define them?
- Whose values are centered?
- And whose power remains untouched?
In doing so, philanthropy risks becoming a kind of benevolent smokescreen, a way of managing the optics of inequality without confronting the systems that produce it.
This is not just a philosophical dilemma. It’s a daily one.
Across the globe, civil society is being squeezed asked to prove relevance, deliver measurable results, and maintain neutrality, often in contexts where the civic space itself is shrinking. Funders seek agility and ambition, but seldom grapple with how the very structure of modern philanthropy may limit the change they want to see.
So as we move into the second half of the year, it’s worth pausing to ask:
Are we challenging the systems that create inequality or quietly helping to hold them in place?
Why This Matters Now
These questions aren’t abstract as they shape everything from who gets funded, to how long, to what solutions are considered viable. That’s why, this July, the Resource Alliance Global Community is turning the spotlight on power and the future of philanthropy.
Keynote | Challenging Philanthropy: Power, Privilege, and Control
24 July • 07.00 PDT | 10.00 EDT | 15.00 BST | 16.00 CEST/CAT | 19.30 IST • Free
Austrian activist and heiress, Marlene Engelhorn, co-founder of the Tax Me Now initiative leads this provocative session, calling on us to confront the uncomfortable truths at the heart of modern philanthropy.
Global Community platform onboarding session
30 July • 09.30 PDT | 12.30 EDT | 17.30 BST | 18.30 CEST/CAT • Free
New to the platform or want to get more involved? This live Q&A session will help you amplify your work, connect with other changemakers reclaiming the narrative, and make the most of this thriving community.
The International Fundraising Congress
14-17 October • Netherlands • In-person & online
This year's theme—Break Through—focuses on agility, equity, and purpose-driven fundraising. A limited number of cost-price tickets still remain for Emerging Leaders—those under the age of 30 or who are working in organisations with an annual turnover of less than GBP £500,000.
From the Archives
Access these resources on the Resource Alliance Global Community to deepen your understanding of the mechanics of power and philanthropy:
- The Possibilities of Power | Janaya Khan | How power dynamics influence social movements. Watch it now >>
- Is COP effective? | Nyombi Morris, Topaz Zega, Phoebe L. Hanson | When it comes to tackling the climate crisis, how effective is COP? Watch it now >>
- Evolving from Power Structures to Ecosystems | Anshu Gupta & Bill Toliver | Powerful insights to reimagine the social impact landscape. Watch it now >>
Essential Reading
Have we piqued your interest? Here are more curated resources from across the internet aligned with this month's topic:
- "I'm creating the tax I would want to pay." | Interview | Why heiress Marlene Engelhorn—this month's keynote speaker—is redistributing her fortune. Read it here >>
- Where Strategic Philanthropy Went Wrong | Article | Why philanthropic scale isn't improving societal conditions. Read it here >>
- The Impossible Math of Philanthropy | Opinion piece | How people understand charity is wrong. Read it here >>
- "The system itself is broken." | Article | Grantmaker Lankelly Chase is closing because "the system itself is at its limits". Read it here >>
Let’s keep asking the hard questions.
There’s no single roadmap for changing how philanthropy works, but there is a growing willingness across the sector to interrogate these deeper and more difficult ideas.
Here at the Resource Alliance, we believe this moment calls for courage, curiosity, and connection. We see our community of funders, organisers, practitioners, and activists all wrestling with what it means to give, fund, and build in ways that are more accountable, more inclusive, and more just.
So, let’s keep asking the questions that matter and asking them together.
If you have any feedback about anything in this month's edition of The Fix, please reach out to me. I'd love to hear from you.
Global Community Manager