When is transparency a really good idea?

Bradford Smith

When it comes to philanthropy, the answer to this question is a simple one: almost always. This may seem to put me at odds with Jo Andrews’ well-reasoned argument against transparency in all circumstances, but it doesn’t.

Jo is not really talking about philanthropy writ large, but rather a small group of funders with which she has had the privilege to work directly or collaboratively through her leadership of Ariadne (European Funders for Social Change and Human Rights). In her sphere she has indeed been a data warrior. But her sphere is specific and modestly sized: the funders she works with number in the low hundreds, whereas there are over 200,000 public benefit foundations in the US and Europe alone.

The reality is that the vast majority of work done by funders, be it through grants or operating programmes, is in areas that are rarely controversial. In the US, where Foundation Center has access to comprehensive and detailed data on the grants of all foundations – thanks to regulatory oversight that requires baseline transparency – we know that more than 60 per cent of all foundation philanthropy goes to health and education. Survey data from other parts of the world shows similar priorities. Jo rightly points to foundations’ unique independence as precisely what makes them so appropriate for supporting high-risk activities dealing with human rights. But the reality is that the vast majority of funders do not get anywhere near these issues.

I couldn’t agree more that funders who do take risks have a responsibility to minimize potential danger for their grantee partners. This principle is embodied in the Global Philanthropy Data Charter, developed by the Worldwide Initiative for Grantmaker Support (WINGS), which states: ‘Data should be public in principle, but clear policies and procedures should be implemented to ensure an adequate balance between openness and privacy and security.’ This can be easily accomplished by making the recipient of a grant, or even the donor if necessary, appear as ‘anonymous’. But even among funders who do work on human rights issues, many of their grants are not particularly controversial. The Sigrid Rausing Trust sees no need to make its £9.6 million support for Human Rights Watch anonymous. Why should it?

Next Letter to read

Transparency and accountability: two sides of the same coin

Dharmendra Kanani