The Ethical Issue of Contemporary Philanthropy: Unintended Negative Consequences of Philanthropy

Abstract

This study is an attempt to explore the ethical issue of contemporary philanthropy by examining the potential negative consequences of well-meant philanthropic intentions. Research on ethical perspectives in philanthropy is still quite limited compared to that on for-profit organizations. This article reviews the philosophical concept of philanthropic intention and examines several examples in which philanthropy has had negative consequences. This article then discusses various reasons for such unintended negative consequences: the supply-led character of philanthropy, failure of the assumed theory of change, a technocratic approach to problem-solving, the conflict between urgency and the sustainability of interventions, and negligence. In turn this article proposes a number of ways to prevent the occurrence of unintended negative consequences of philanthropy. The article aims to provide insights to philanthropists, not-for-profit leaders and staff, and fundraising professionals by helping them realize the multiple facets of the problems they try to solve and accordingly improve the design of their grants and philanthropic programs.