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Individual Philanthropy in Post-Apartheid South Africa – A Study of Attitudes and Approaches Holly Rodgers Wescott Thesis presented in partial fulfillment of the requirements for the degree of Master of Philosophy (Sustainable Development, Planning and Management) at the University of Stellenbosch Supervisors: Professor Mark Swilling Colleen du Toit March 2009 DECLARATION By submitting this thesis electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the owner of the copyright thereof (unless to the extent explicitly otherwise stated) and that I have not previously in its entirety or in part submitted it for obtaining any qualification. Date: 24 February 2009 Copyright © 2009 Stellenbosch University All rights reserved ii Abstract The objective of this thesis was to investigate the state of individual philanthropy in South Africa in the post–apartheid, post–1994 transformative period of this country, and to explore and try to understand this practice within the wider context of trends in contemporary global philanthropy. The germ for this thesis came from a recognition that individual philanthropy on a global level is a burgeoning phenomenon with an increasingly important impact, and that this type of giving could also be a powerful resource for South Africa as this new democracy begins to tackle its social and economic problems. This study was informed by primary and secondary data. I used a research strategy and methodology that entailed in-depth interviews with six prominent South African businesspeople who have each given generously from their own resources to address the country’s major problems: poverty and inequality, capacity-building and jobs creation, education, the HIV-AIDs pandemic, and other poverty-related ills. The results of my research furnished new insights into the practice of individual philanthropy and confirmed that this practice happens in a unique context: the cultural and historical environment within which people’s lives unfold is the key influence and impetus that informs their giving. While learning about global strategies is important for understanding how the development discourse is developing, these external strategies do not provide the template for South African philanthropy. In South Africa, individuals from diverse backgrounds are independently practicing philanthropy by developing their own unique set of strategies based on their life experience, rather than pursuing strategies that were reached through collaborative dialogue and a mutually agreed-upon approach. Each context is unique and these individuals have developed their own strategies for giving that make sense and work for them. This research is important as South Africa searches for solutions to its pressing problems because it adds to the body of knowledge that could be used to formulate policy and strategic choices for the future of this country. The development discourse increasingly includes individual philanthropy as an integral part of the “mix” of solutions being pursued to eradicate poverty and other social ills; the further development of individual philanthropy in South Africa to become more strategic and transformative is critical. This development is the next step in future research. iii Opsomming Die objektief van hierdie tesis was om die staat van individuele filantropie in Suid-Afrika in die tydperk na 1994 te ondersoek. Ek wou ook hierdie gebruik binne die wyer konteks van neigings in eietydse wêreldwydse filantropie navors en verstaan. Die kiem vir hierdie tesis het gekom uit ’n herkenning dat individuele filantropie op ’n wêreldwye vlak ’n groeiende verskeinsel is met ’n al hoe meer belankrike impak. Hierdie tipe skenkings kan ’n kragtige hulpbron vir Suid Afrika wees wanneer hierdie nuwe demokrasie sy maatskaplike en ekonomiese probleme begin takel. Hierdie studie was deur primêre en sekondêre data ingelig. Ek het ’n navorsingstrategie en metodologie gebruik wat diepgaande onderhoude met ses prominente Suid-Afrikaanse sakelui ingesluit het. Hierdie is mense wat almal ruimhartige skenkings uit eie sak gemaak het. Hulle het probeer om die land se hoof probleme soos armoede en ongelykheid, kapasiteit bou en werkskepping, opvoeding, Vigs en ander armoedeverwantesiektes te adresseer. My navorsingresultate bring mens tot die besef dat daar ander redes bestaan vir die beoefening van individuele filantropie en bevestig dat die praktyk plaasvind binne ‘n unieke konteks; die kulturele en die historiese agtergrond van elke mens beinvloed direk hulle mensliewendheid en is die hoof beweegrede om te wil gee. Howel dit belangrik is om kennis te neem van wereldwye strategie rondom ontwikkeling is hierdie eksterne strategie nie die bepalende rede vir Suid-Afrikaanse filantropie nie. In Suid-Afrika beoefen individuele mense vanuit diverse gemeenskappe onafhanklik filantropie deur die onwikkeling van ‘n eie unieke stel strategie gegrond op hulle eie lewenservaring, eerder as om strategie toe te pas wat deur dialoog en saamewerking bewerkstellig is. Elke konteks is uniek en individue het hulle eie strategie ontwikkel rondom mens liewendheid en beoefen ‘n benadering wat vir hulle betekenisvol is. Hierdie resultate lewer ‘n belangrike bydrae in ‘n tyd waar Suid-Afrika oplossing soek vir sy probleme omdat dit byvoeg tot die inligtingsdatabank wat gebruik sal word om beleid te formuleer en om strategiese besluite te neem oor die toekoms van die land. Individuele filantropie word toenemend deel van ontwikkelingsgesprekke rondom oplossings vir die uitwissing van armoede en ander sosio-ekonomiese probleme. Die verdere ontwikkeling van individuele filantropie in Suid-Afrika om meer strategiese en transformerend te word is van kardinale belang. Hierdie ontwikkeling is die volgende stap in toekomstige navorsing. iv Acknowledgements I would like to thank: Colleen du Toit, for her philanthropy to me. You gave me invaluable assets which came from your unique context: your wisdom, calmness, kindness, encouragement, and accessibility. Professor Mark Swilling, for his incisive critiques, direction, and encouragement, and for conceiving of the Sustainability Institute and this incredible program and making it happen. Tom and Alec, for listening, as always.... “My philanthropists”, Moeletsi Mbeki, Bongani Khumalo, Sidney Frankel, Reuel Khoza, Judy Henshall, and Gil Mahlati, for giving to me that “single most important thing” to them, their time and strategic advice. v Table of Contents Declaration ....................................................................................................................... ii. Abstract ........................................................................................................................... iii. Opsomming ..................................................................................................................... iv. Acknowledgements.......................................................................................................... v. Chapter 1. Introduction ..................................................................................................... 1 Chapter 2. Literature Review -- What is Philanthropy .................................................... 5 2.1. What is philanthropy? ....................................................................................... 5 2.2. Investigating key elements of philanthropy: charity, giving, motivation ............................................................................................ 6 2.3. A brief history of philanthropy .......................................................................... 12 2.4. Summary ....................................................................................................... 14 Chapter 3. Literature Review -- Individual Philanthropy Today ................................... 15 3.1. Introduction ..................................................................................................... 15 3.2. The current state of philanthropy .................................................................... 16 3.3. Pros and cons: the debates ........................................................................... 18 3.4. The different approaches: how it is practiced .................................................. 24 3.4.1.Taking advantage of technology – marketplace innovations ................................................................... 25 3.4.2. New types of philanthropy ................................................................ 26 3.4.2.1. Social justice philanthropy.................................................. 26 3.4.2.2. Performance-based philanthropy ....................................... 27 3.4.2.3. Social entrepreneurship ..................................................... 28 3.4.2.4. Venture philanthropy .......................................................... 29 3.4.3. Market–based solutions: the debates .............................................. 30 3.4.4. Summary ......................................................................................... 32 3.5. Partnership and Leveraging ............................................................................ 32 3.6. Summary ....................................................................................................... 36 Chapter 4. Research Design and Methodology ............................................................. 38 4.1. Introduction ....................................................................................................

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