City Journal Reviews “Generosity Unbound” book by Claire Gaudiani

Gaudiani’s book is a patient explanation of the enduring vitality of American philanthropy and an all-too-necessary reminder to policymakers and critics across the political spectrum that government is not, and never can be, a substitute for private philanthropy. Prompted to write the book by the Greenlining episode and the NCRP report, she seeks to ground philanthropy in the values of the Declaration of Independence and insulate it from efforts at government expropriation.

Gaudiani argues that “America’s tradition of citizen-to-citizen generosity”—what she calls “generosity unbound”—is related closely to our system of democratic capitalism. Successful entrepreneurs such as George Peabody, Andrew Carnegie, and Bill Gates channeled their wealth toward creating further opportunities for others to attain economic success. She sees a virtuous cycle of opportunity, prosperity, gratitude, and citizen generosity—which then starts the cycle all over again. While her argument is not new—others have written about entrepreneurial wealth “reconstituted” as philanthropy, which then creates opportunities for yet more wealth creation—Gaudiani uses it to rebut philanthropic critics. Should proponents of the “public-money” notion succeed, she shows, they would undermine not only philanthropic giving, but also the American economy itself.