Rethinking Philanthropy
Steps Towards a More Human Future
Many good things in our world require money to accomplish ; many good people have needs that require money they don’t have. Many chronic problems exist in the world, and special problems – earthquakes, drought, floods, tsunamis - arise all the time. All these require money, which, for most people, is in short supply. The finances of our governments are such presently that they often simply can't meet these problems and needs. Whether governments even should address these issues, is in the meantime vigorously debated. The question is pressing - and becomes more so : how, legitimately, in a world of seven billion people, can these many needs be met ? One solution clearly won’t fit all situations – but why not make a start with at least part of this large question ?
Three Kinds of Money
Money itself takes essentially three main forms – namely :
- Purchase money for goods and services
- Loan money, to fund projects and enterprises of many kinds ; and
- Gift money, including philanthropy
The basis for establishing fair and correct prices for goods and services ; the flow and availability of capital as loan money – these are important themes to consider. For now however, I’d like to review the threefold social idea of Rudolf Steiner, as discussed elsewhere at Living Waters Wellness, as a starting point to explore the third kind of money, and third area of interest concerning human need : purposeful, systematic gifting and philanthropy.
The Three Spheres of Human Life
Human culture, Steiner observed, consists of three main areas of activity :
The Sphere of Rights
Rights, in this “ threefold “ perspective, concern the regulation of conflicts in human relationships ; specifically, infringements on the dignity, safety or well being of one group or individual by another individual or group. To be free from such infringements is a basic need of every human being. In the threefold perspective, “ right’s life “ concerns the effort to ensure this for all human beings on an equal basis, regardless of economic or social status.
Economic Life
In the threefold organism of society, economic life concerns the basic needs of life of all human beings : food, shelter, clothing, and all else that has to do with maintaining the physical needs of life. It includes the production and distribution of goods, the relationships that arise around these activities, and the communication processes necessary to establish them. Because the needs to be met in economic life are common to all people, the necessary condition of this sphere is a spirit of brotherhood, cooperation and goodwill.
"Spiritual-Cultural Life"
In the threefold social organism, spiritual-cultural life has to do with all that human beings bring to each other on the basis of individual gifts and abilities. This includes the realms of religious, spiritual, philosophical and moral insight, teaching and education, medicine and healing, the arts, and creativity and invention in all their many forms. The special requirement of the spiritual-cultural life is freedom : namely that each individual may develop and contribute his or her own abilities without interference ; and choose his or her own church, teachers, healers, remedies etc, freely and without hindrance.
In Steiner’s threefold understanding of society, the areas of rights, economic and spiritual-cultural life each unfold their strength best when they work independently. He recommends at first, therefore, a radical separation of the three spheres - or more exactly, a radical reduction of influence and interference of one sphere on the activity of the others. This initial separation, Steiner indicates, will prepare the basis for a later fruitful interaction and cooperation among the three, which will promote the optimal health of society.
What Each Sphere Contributes
Rights life. When active and effective, rights life creates conditions of safety, dignity and freedom, in which social life can unfold in an optimal way. Rules and agreements that reduce undue harm, coercion or infringement upon freedom within society, create conditions for both economic and spiritual cultural life to thrive. They build and protect a space within which the individual human being can unfold “a life worth living “. Over time, they reduce harm and expense to society, e.g. from crime and direct oppression of one person or group by another ; but also from unfair or destructive economic practices, environmental contamination etc.
Economic life establishes conditions for the material survival and well being of society. In this realm of life human beings work creatively with materials received from the earth, transforming them into goods and products, increasing their value and usefulness. Methods that increase efficiency in the production and distribution of goods evolve constantly, and enhance this effect. Applied knowledge of natural processes, technology, the needs and nature of the human being, all contribute to satisfaction of the earthly needs of humanity.
Beyond the meeting of human physical needs, economic life also has this special characteristic : that by adding value to what nature provides, it has a tendency and capacity to create wealth.
Spiritual-cultural life. The special contribution of the spiritual-cultural life to the threefold social organism, is to enhance the quality of human life. Education, the arts, healing work, religious and spiritual life, research, scholarship, skilled communication and technical invention all have this in common. Arising in the inner world of the human being, the spiritual-cultural life radiates benefits outward into society.
This radiating effect is often not noticed or valued properly, because it is subtle. It does not generate products for human beings to use, but rather unlocks and cultivates potentials in them. It preserves what is good and what is possible in the human being, and builds a bridge for it to become actual.
The benefits of spiritual-cultural life to society are visible in the present only in part ; their more complete effects in the longer course of time. In its best manifestation, spiritual-cultural life creates a good and human future, both for individual lives and for society.
It should be mentioned that the threefold ideas was not presented by Steiner as a utopian plan or prescription for society, nor as a reaction to any other social theory. The initial strict separation of influences of one sphere upon another, and their later interactions were also not intended as a rigid rule or formula. The threefold social idea was presented rather as a scientific observation of the actual nature of society ; and of relationships that will naturally arise and generate social health, as soon as they receive the chance.
Spiritual Cultural and Economic Life : A Special Relationship
The economic sphere produces goods and products - but we can also ask : how ? What factors contribute to success in economic life ?
Sufficient natural resources are of course a necessity, if economic life is to prosper ; also sufficient capital ; and conditions of peace and safety in the place where work is carried out. These are the familiar elements of economic life. Yet there’s also more.
The economic sphere has a continuous need for people : people who are well educated and healthy, have good judgment and are ethical ; are flexible, creative, able to work cooperatively with others. It needs the results of research of various kinds, expertise from the realms of technology, finance, the law ; but each of these also depends, first of all, on the skills and insights of individuals. Economic life depends continuously on these abilities of individuals – abilities groomed and cultivated in the spiritual-cultural realm of life.
It’s very little noticed in our society, but the economic sphere depends critically on the spiritual cultural realm for a skilled, educated, well prepared work force.
Where Does Wealth Go ?
As noted earlier, when activities of economic life go well and successfully, they tend to generate wealth. What becomes of this wealth ?
In our prevailing world system, the greatest share of "profits" goes to those who organize, manage and finance economic life - to those perceived as its main drivers and creative agents. Practically speaking, ever more wealth settles into these relatively few hands ; more, very probably than they actually need, or could ever spend ; wealth that may accrue to any number of their future generations.
In such a system one’s perspective – and perception of others – can become distorted. Self interest may become the core value of economic life, competition the core method, personal gain the core goal of life. The concept of brotherhood seems a quaint and unrealistic notion here ; cooperation and goodwill expendable - as may be large portions of the slower, less clever remainder of humanity.
A further, near irresistible temptation where great wealth is at stake, is for economic interests to intervene in the sphere of government – in the threefold perspective, the sphere of rights. Money spent to support friendly candidates, influence policy or public opinion, creates great leverage - money seemingly well spent. But this concentration of wealth and power also has risks
In an economy of global scale, the effects of errors or misconduct in this relatively small controlling circle tend to magnify. On the fringes of the world economy, meanwhile, millions walk a razor's edge of poverty, dependent between life and death on fluctuations of interest or currency rates, commodity prices, the rise of fall of distant stock markets. Any error of concepts, insight, judgment at the lofty summit - not to mention any criminal activity – endangers the whole. The collapse of the financial derivatives bubble of 2008 - and the worldwide crisis it triggered - are frightening examples.
The Case for Philanthropy
As we've seen, the gifts of spiritual-cultural life to society are indirect - their full value unfolds only over time, and so goes mostly unnoticed. This is perhaps why, when economic growth and production in society decline for any reason, spending in the spiritual-cultural sphere tends to decline even moreso ; and why such fierce pressure is brought to bear on governments to cut programs serving spiritual-cultural life, such as public education and medical care. But whether right or wrong in the long term for government to be involved in these things, funds are lost which are not replaced from other sources.
The spiritual-cultural realm has a still more basic problem. In this sphere of life, payment is most often in terms of “fees for services rendered”. But the activities of spiritual cultural life – for example the teaching of children or the care of the sick - do not by nature create wealth. In the very best of times, income from fees will not be enough to fund the building of schools or hospitals, buy equipment and furniture, fund research, provide grants and scholarships, or any number of other capital or special needs. Extra needs will always arise, for which funding must be found
In the meantime as noted, economic life depends on the spiritual-cultural life : depends for the fruits of science and research ; for educated, healthy workers, creative workers, ethically and morally sound workers, to name just a few needed things. To complete the cycle of facts and relationships : spiritual social life makes economic life possible ; and economic life, by its nature, creates wealth.
It's not just a matter of kindness therefore, that the economic sphere should contribute to the needs of science, education, medicine, to the preparation and well being of its work force, but one of self interest. And this is not only fair and reasonable, but possible - because the financial means to help flows continuously to hand.
Beyond the fair needs of economic life to develop and maintain itself, simple insight would indicate that the needs of the spiritual-cultural life are an optimal destination for wealth created in the economic sphere. This, in short, is the case for philanthropy.
Next : Rethinking Philanthropy : Ways, Means and Measures
Steps Towards a More Human Future
Many good things in our world require money to accomplish ; many good people have needs that require money they don’t have. Many chronic problems exist in the world, and special problems – earthquakes, drought, floods, tsunamis - arise all the time. All these require money, which, for most people, is in short supply. The finances of our governments are such presently that they often simply can't meet these problems and needs. Whether governments even should address these issues, is in the meantime vigorously debated. The question is pressing - and becomes more so : how, legitimately, in a world of seven billion people, can these many needs be met ? One solution clearly won’t fit all situations – but why not make a start with at least part of this large question ?
Three Kinds of Money
Money itself takes essentially three main forms – namely :
- Purchase money for goods and services
- Loan money, to fund projects and enterprises of many kinds ; and
- Gift money, including philanthropy
The basis for establishing fair and correct prices for goods and services ; the flow and availability of capital as loan money – these are important themes to consider. For now however, I’d like to review the threefold social idea of Rudolf Steiner, as discussed elsewhere at Living Waters Wellness, as a starting point to explore the third kind of money, and third area of interest concerning human need : purposeful, systematic gifting and philanthropy.
The Three Spheres of Human Life
Human culture, Steiner observed, consists of three main areas of activity :
The Sphere of Rights
Rights, in this “ threefold “ perspective, concern the regulation of conflicts in human relationships ; specifically, infringements on the dignity, safety or well being of one group or individual by another individual or group. To be free from such infringements is a basic need of every human being. In the threefold perspective, “ right’s life “ concerns the effort to ensure this for all human beings on an equal basis, regardless of economic or social status.
Economic Life
In the threefold organism of society, economic life concerns the basic needs of life of all human beings : food, shelter, clothing, and all else that has to do with maintaining the physical needs of life. It includes the production and distribution of goods, the relationships that arise around these activities, and the communication processes necessary to establish them. Because the needs to be met in economic life are common to all people, the necessary condition of this sphere is a spirit of brotherhood, cooperation and goodwill.
"Spiritual-Cultural Life"
In the threefold social organism, spiritual-cultural life has to do with all that human beings bring to each other on the basis of individual gifts and abilities. This includes the realms of religious, spiritual, philosophical and moral insight, teaching and education, medicine and healing, the arts, and creativity and invention in all their many forms. The special requirement of the spiritual-cultural life is freedom : namely that each individual may develop and contribute his or her own abilities without interference ; and choose his or her own church, teachers, healers, remedies etc, freely and without hindrance.
In Steiner’s threefold understanding of society, the areas of rights, economic and spiritual-cultural life each unfold their strength best when they work independently. He recommends at first, therefore, a radical separation of the three spheres - or more exactly, a radical reduction of influence and interference of one sphere on the activity of the others. This initial separation, Steiner indicates, will prepare the basis for a later fruitful interaction and cooperation among the three, which will promote the optimal health of society.
What Each Sphere Contributes
Rights life. When active and effective, rights life creates conditions of safety, dignity and freedom, in which social life can unfold in an optimal way. Rules and agreements that reduce undue harm, coercion or infringement upon freedom within society, create conditions for both economic and spiritual cultural life to thrive. They build and protect a space within which the individual human being can unfold “a life worth living “. Over time, they reduce harm and expense to society, e.g. from crime and direct oppression of one person or group by another ; but also from unfair or destructive economic practices, environmental contamination etc.
Economic life establishes conditions for the material survival and well being of society. In this realm of life human beings work creatively with materials received from the earth, transforming them into goods and products, increasing their value and usefulness. Methods that increase efficiency in the production and distribution of goods evolve constantly, and enhance this effect. Applied knowledge of natural processes, technology, the needs and nature of the human being, all contribute to satisfaction of the earthly needs of humanity.
Beyond the meeting of human physical needs, economic life also has this special characteristic : that by adding value to what nature provides, it has a tendency and capacity to create wealth.
Spiritual-cultural life. The special contribution of the spiritual-cultural life to the threefold social organism, is to enhance the quality of human life. Education, the arts, healing work, religious and spiritual life, research, scholarship, skilled communication and technical invention all have this in common. Arising in the inner world of the human being, the spiritual-cultural life radiates benefits outward into society.
This radiating effect is often not noticed or valued properly, because it is subtle. It does not generate products for human beings to use, but rather unlocks and cultivates potentials in them. It preserves what is good and what is possible in the human being, and builds a bridge for it to become actual.
The benefits of spiritual-cultural life to society are visible in the present only in part ; their more complete effects in the longer course of time. In its best manifestation, spiritual-cultural life creates a good and human future, both for individual lives and for society.
It should be mentioned that the threefold ideas was not presented by Steiner as a utopian plan or prescription for society, nor as a reaction to any other social theory. The initial strict separation of influences of one sphere upon another, and their later interactions were also not intended as a rigid rule or formula. The threefold social idea was presented rather as a scientific observation of the actual nature of society ; and of relationships that will naturally arise and generate social health, as soon as they receive the chance.
Spiritual Cultural and Economic Life : A Special Relationship
The economic sphere produces goods and products - but we can also ask : how ? What factors contribute to success in economic life ?
Sufficient natural resources are of course a necessity, if economic life is to prosper ; also sufficient capital ; and conditions of peace and safety in the place where work is carried out. These are the familiar elements of economic life. Yet there’s also more.
The economic sphere has a continuous need for people : people who are well educated and healthy, have good judgment and are ethical ; are flexible, creative, able to work cooperatively with others. It needs the results of research of various kinds, expertise from the realms of technology, finance, the law ; but each of these also depends, first of all, on the skills and insights of individuals. Economic life depends continuously on these abilities of individuals – abilities groomed and cultivated in the spiritual-cultural realm of life.
It’s very little noticed in our society, but the economic sphere depends critically on the spiritual cultural realm for a skilled, educated, well prepared work force.
Where Does Wealth Go ?
As noted earlier, when activities of economic life go well and successfully, they tend to generate wealth. What becomes of this wealth ?
In our prevailing world system, the greatest share of "profits" goes to those who organize, manage and finance economic life - to those perceived as its main drivers and creative agents. Practically speaking, ever more wealth settles into these relatively few hands ; more, very probably than they actually need, or could ever spend ; wealth that may accrue to any number of their future generations.
In such a system one’s perspective – and perception of others – can become distorted. Self interest may become the core value of economic life, competition the core method, personal gain the core goal of life. The concept of brotherhood seems a quaint and unrealistic notion here ; cooperation and goodwill expendable - as may be large portions of the slower, less clever remainder of humanity.
A further, near irresistible temptation where great wealth is at stake, is for economic interests to intervene in the sphere of government – in the threefold perspective, the sphere of rights. Money spent to support friendly candidates, influence policy or public opinion, creates great leverage - money seemingly well spent. But this concentration of wealth and power also has risks
In an economy of global scale, the effects of errors or misconduct in this relatively small controlling circle tend to magnify. On the fringes of the world economy, meanwhile, millions walk a razor's edge of poverty, dependent between life and death on fluctuations of interest or currency rates, commodity prices, the rise of fall of distant stock markets. Any error of concepts, insight, judgment at the lofty summit - not to mention any criminal activity – endangers the whole. The collapse of the financial derivatives bubble of 2008 - and the worldwide crisis it triggered - are frightening examples.
The Case for Philanthropy
As we've seen, the gifts of spiritual-cultural life to society are indirect - their full value unfolds only over time, and so goes mostly unnoticed. This is perhaps why, when economic growth and production in society decline for any reason, spending in the spiritual-cultural sphere tends to decline even moreso ; and why such fierce pressure is brought to bear on governments to cut programs serving spiritual-cultural life, such as public education and medical care. But whether right or wrong in the long term for government to be involved in these things, funds are lost which are not replaced from other sources.
The spiritual-cultural realm has a still more basic problem. In this sphere of life, payment is most often in terms of “fees for services rendered”. But the activities of spiritual cultural life – for example the teaching of children or the care of the sick - do not by nature create wealth. In the very best of times, income from fees will not be enough to fund the building of schools or hospitals, buy equipment and furniture, fund research, provide grants and scholarships, or any number of other capital or special needs. Extra needs will always arise, for which funding must be found
In the meantime as noted, economic life depends on the spiritual-cultural life : depends for the fruits of science and research ; for educated, healthy workers, creative workers, ethically and morally sound workers, to name just a few needed things. To complete the cycle of facts and relationships : spiritual social life makes economic life possible ; and economic life, by its nature, creates wealth.
It's not just a matter of kindness therefore, that the economic sphere should contribute to the needs of science, education, medicine, to the preparation and well being of its work force, but one of self interest. And this is not only fair and reasonable, but possible - because the financial means to help flows continuously to hand.
Beyond the fair needs of economic life to develop and maintain itself, simple insight would indicate that the needs of the spiritual-cultural life are an optimal destination for wealth created in the economic sphere. This, in short, is the case for philanthropy.
Next : Rethinking Philanthropy : Ways, Means and Measures
* * * * * * * * *
For more on the social ideas of Rudolf Steiner, also
explore books and lectures such as :
Culture, Law and Economics
Towards Social Renewal
The Renewal of the Social Organism
Brotherhood and the Struggle for Existence
From Living Waters Wellness :
The Threefold Social Idea
Leadership in the Realm of Rights Life
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