A debate is underway about ‘who’ private foundations grant funds to on an annual basis. The question at hand is if foundations are serving the public good or have they become tax shelters for the wealthy? Does a foundation’s grant making serve the basic needs of the public or have the grants become focused on serving only a few? Giving USA provides an annual breakdown of the giving philanthropic giving by Americans (foundations, corporations, individuals). See a report on the most recent data from 2006 philanthropic giving.

Now the debate is part of the Obama Administration’s conversation on reshaping America.

Excerpt from WSJ article:

The report, titled “Criteria for Philanthropy at its Best,” advises foundations to “provide at least 50 percent of grant dollars to benefit lower-income communities, communities of color, and other marginalized groups, broadly defined.” The committee looked at 809 of the largest foundations in the country, whose combined three-year grants totaled almost $15 billion, and concluded that the majority of foundations are “eschewing the needs of the most vulnerable in our society” by neglecting “marginalized groups.”

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