Early American Fundraising

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Historian Scott M. Cutlip ’ s excellent book Fundraising in the United States: Its Role in America ’ s Philanthropy (1965/1990) provides the most extensive account of the history of fundraising in the nineteenth century and the fi rst half of the twentieth century in the United States. According to Cutlip, organized philanthropy supported by systematic fundraising is very much a twentieth - century phenomenon. Before then, philanthropy was conducted on a much smaller scale and largely fi nanced by a few very wealthy individuals in response to personal appeals. Most individual giving was directed to the churches, to the pitifully poor, and to schools, colleges, and hospitals. No organized or formal fundraising efforts were recorded for the giving of these gifts.

That said, a number of key fi gures in the new American colonies did play a valuable role in instilling the culture of giving that is so prevalent in American society today. John Winthrop (1588 – 1649), William Penn (1644 – 1718), and Cotton Mather (1663 – 1728) were among early philanthropic leaders who saw giving as an integral part of their religious practice.

Their contribution lay in persuading the wealthier elements of society to regard giving as an obligation associated with their wealth, and over time this sense of obligation morphed to embrace not only the wealthy but all of American society. Quite a legacy — but it is important to recognize that this was a process that took many years to accomplish. Romanticized notions of the generosity of the early colonists are largely false. As Hall (1992) notes, “ legislatures in the colonial and early national periods were intensely hostile to voluntary associations of any kind ” (p. 181), and most colonial colleges were state enterprises funded through taxation, as were early churches (barring those in colonies that tolerated religious diversity). Giving, as we know it today, was largely unnecessary.


The American Revolution and the desire it created for a less interventionist state were to change this situation. By the dawn of the nineteenth century, a strong tradition of private philanthropy had begun to emerge and
has continued to this day, to become what Marts (1966) regards as one of the most durable factors of American life. When Alexis de Tocqueville wrote in 1835 of his travels in America, he was impressed by the willingness of the people to give freely of their own funds for social improvements (Probst, 1962). He observed that when a community of citizens recognized a need for a church, school, or hospital, they came together to form a committee, appoint leaders, and donate funds to support it. The generosity observed by de Tocqueville was not triggered by fundraising in any formal sense; rather, it was largely a response to personal solicitation for help from one individual to another. As Broce (1986) notes, systematic solicitation of the general public did not begin until the early 1900s.

That said, there were early campaigns. Among the earliest recorded were the major campaigns designed to establish the famous colleges of Harvard in Massachusetts and William and Mary in Virginia. Americans gave generously to create these opportunities for their children, but additional support was often sought from overseas. Because the colleges of that era existed to educate both laymen and clergy, ministers were frequently employed to fundraise on behalf of these great endeavors. The fi rst example of this is credited as taking place in the early 1600s when three ministers were dispatched from America to England to raise money
for Harvard College. One of them came back with £ 150 — a pretty good sum at the time; a second stayed in England as a minister; the third met his death on the gallows, which perhaps illustrates that fundraising has
always been a somewhat perilous profession!

Other early fundraisers included Benjamin Franklin, who undertook a number of campaigns and was known for the careful manner in which he planned them. When asked for his advice he was said to have remarked,
“ In the fi rst place, I advise you to apply to all those whom you will know will give something; next, to those whom you are uncertain whether they will give anything or not, and show them the list of those who have given; and lastly, do not neglect those whom you are sure will give nothing, for in some of them you may be mistaken ” (quoted in Gurin and Van Til, 1990, p. 14). Indeed, much of the fundraising of the day and
throughout the nineteenth century was conducted through the medium of personal solicitation, in some cases by paid solicitors. It was common practice at this time to raise funds by assembling a list of suitable wealthy
persons and inviting them to a special function or, more usually, dinner.


Early fundraising manuals typically suggested that, aside from potential benefactors, the guests for dinner should include a smattering of “ pretty young ladies, ” which was seen as essential if high - value gifts were to be solicited. It appears that male donors have always been keen to impress with the size of their charitable wallets.

Church collections and the writing of “ begging ” letters were also common. It was not until 1829 that the fi rst instance of committed or regular giving was reported. In that year a fundraiser by the name of Matthew Carey sought annual subscriptions of $ 2 or $ 3 to support a number of local institutions. Unfortunately, only small sums were raised, and although it was visionary, his drive was eventually abandoned.

The nineteenth century was to see one last event of major signifi - cance for the fundraising sector: the emergence of the fi rst cooperative or “ federated ” fundraising campaign. The organization we know today as
United Way began as an effort to coordinate activities among local charitable organizations. The fi rst such activity appears to have taken place in 1887 when a priest, two ministers, and a rabbi recognized the need for
cooperative action to address their city ’ s welfare problems. They created the Charity Organizations Society to serve as an agent to collect funds for local health and welfare agencies, as well as to coordinate relief services, counsel and refer clients to cooperating agencies, and make emergency assistance grants. The idea of a coordinated fund drive for local charities soon spread to other communities. Separate organizations have been created in most communities in the United States to handle fundraising for local charitable organizations. United Way is the largest example of federated fundraising, but there are others, including federated campaigns for categories of cause such as human services or the arts.
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