How Better To Give

By Michele Orecklin

"As for doing good, that is one of the professions which are full," wrote Henry David Thoreau in 1854, in acknowledgment of America's generous spirit. If it was full then, the field of philanthropy has burst its seams since Sept. 11. In a month and a half, Americans have given compassion, toil and more than $1 billion to salve the wounds of that day. Even before terror struck, philanthropic activity had reached an all-time high, in monetary terms and in the diversity of charitable organizations. The technology boom of the 1990s created a new breed of Carnegies and Astors who approach giving in a different way from their predecessors. These and other donors are taking far greater interest in how their contributions are spent. They want to discover new ways to make their giving effective. They want to change systems that don't work. These are the innovators of the New Philanthropy: venture capitalists who use Wall Street solutions to tackle urban poverty and expect a return on their investment, a lawyer who nurtures businesses in developing countries, an Italian surgeon healing the most vulnerable victims of war, a Web watchdog who puts the financial reports of charities online. All of these people want their gifts to make a difference.

--By Michele Orecklin