Opinion

Beyond Charity: How Strategic Philanthropy Can Support Sound Public Policy

7 min read

 This piece explores how philanthropic organizations play a meaningful role in supporting public policy ideas and reforms, while adhering to the legal guidelines that govern charitable activity.

Philanthropy has been a defining force in shaping America, dating to its earliest days. Throughout United States history, generous benefactors have propelled pivotal movements. From the support given to foundational thinkers like Thomas Paine to the advancement of modern social movements, philanthropy has consistently broadened participation in civic life and driven societal progress. 

Modern philanthropists supporting policy work continue a rich American legacy. Rather than being a subversion of philanthropy’s mission, they elevate it by addressing disparities and creating long-term societal benefits. They step in where governments have become bogged down or fail to deliver effective solutions. 

During the American Revolution, generous supporters like Benjamin Rush and Benjamin Franklin played a critical role in amplifying Paine’s work. Their collective efforts helped circulate over half a million copies of “Common Sense,” a pamphlet that sparked widespread support for independence. This was policy philanthropy in action at the moment of the nation’s founding. 

The abolitionist movement stood on the shoulders of substantial philanthropy, with figures like the Tappan brothers funneling resources into ending slavery. Similarly, the women’s suffrage movement received meaningful support from advocates who funded efforts that ultimately secured women the right to vote. These contributions were not merely about winning specific fights—they aimed to expand civic participation within the fledgling republic. 

By the 20th century, such efforts evolved into more structured forms of policy philanthropy. Settlement houses like Jane Addams’ Hull House, funded by private donors, helped integrate immigrants into American society. Later, philanthropic support energized the nascent civil rights movement, fostering organizations and laying the intellectual groundwork to challenge deeply rooted disparities.  

In recent years, philanthropy has shown a renewed interest in funding organizations focused on disability awareness and those addressing America’s mental health crisis. Time and again, philanthropy demonstrates an enduring commitment to strengthening America’s civil society by empowering diverse voices and lifting Americans from all backgrounds. 

Policy Philanthropy Remains Critical to American Life 

Today, policy philanthropy remains essential in addressing America’s most pressing issues and complex challenges. Its support encompasses funding for research initiatives, think tanks and efforts to educate Americans and our nation’s leaders about public policies that may promote—or hinder—freedom and innovation. For instance, charter schools may begin with grants for educational institutions, but the larger impact often requires championing policies that empower school choice at the state or federal level. 

Critics of policy-focused philanthropy argue it politicizes charitable giving. But this perspective overlooks a central reality of modern governance. As government expands into more and more areas of our lives, philanthropy finds itself uniquely positioned to support those working on policy issues in ways government institutions alone cannot. Whether it means educating Americans about the impact of legislation or funding the intellectual ecosystem needed to pursue reform, philanthropy often bridges the gap between public needs and institutional inertia. 

“It’s worth noting that the skepticism around policy philanthropy is not new,” says Joanne Florino, the Adam Meyerson Distinguished Fellow in Philanthropic Excellence at Philanthropy Roundtable. “Loyalists likely saw philanthropists who supported figures like Paine as political agitators. Yet, history shows that these early efforts not only contributed to societal progress but shaped the democratic ideals the country holds dear.” 

From Policy to Progress: The Role of Philanthropy in School Choice 

One example of meaningful policy philanthropy is in the world of school choice. In Texas, there are over six million kids in the public education system. Despite the state’s size, many families in Texas struggle to access high-quality schools equipped to best fit their children’s unique needs, often due to rigid school zoning policies and a lack of affordable alternatives. This lack of access contributed to persistent achievement gaps as some students stuck in underperforming schools faced greater challenges and fewer opportunities for advancement. 

The Miles Foundation, based in Fort Worth, sought to do something about this problem afflicting Texas students. After encountering roadblocks working within the existing education system, they shifted focus to support work on legislative efforts, while adhering to private foundation restrictions.  

Over the past five years, The Miles Foundation supported state and national think tanks, convened working groups and shared innovative education strategies, best practices and trends from around the globe to help tackle Texas’ school choice issue. Their efforts, combined with Gov. Greg Abbott’s leadership on the issue, helped pave the way for the Lone Star State to pass a significant educational freedom bill that will provide education savings accounts—more than $10,000 per student—to help cover education expenses

The Miles Foundation balanced boldness with caution, fostering bipartisan dialogue on the issue and building trust across party lines. 

“We didn’t take an anti-public school approach. We’re saying it’s possible to both support public schools that are currently educating a vast majority of our children, and offer parents an alternative in their child’s education,” says Grant Coates, CEO and president of The Miles Foundation. “Education has been done the same way for the last 100 years. The time to try something new is right now.” 

According to Coates, most research institutions gave limited attention to school choice. Religious groups, special needs families, low-income families and other organizations, such as Black moms’ groups and pastors, united at the grassroots level around this important cause. National groups like American Federation for Children and Americans for Prosperity also were key players who brought national expertise and experience to Texas as it navigated its unique school choice approach. The work of local parents, teachers, students and community organizations, combined with lawmakers’ efforts in Austin, galvanized a movement to chart a bright new future for Texas education.  

What about implementation? Coates emphasized two main priorities: increasing school supply and ensuring effective communication. With the bill expected to affect 100,000 students, The Miles Foundation plans to support expanding private school capacity, developing micro-schools and engaging additional funders to build new educational options.  

“We’re at this inflection point in human history where we can deliver personalized education at scale—that’s never been possible before,” Coates says. “Teachers can tailor education to the needs of a particular student, if we can provide the right infrastructure to unlock that opportunity for every classroom. It requires effort, but we are poised to help usher in a new era of education where every student can learn and grow at the speed of their potential.” 

From Business Leader to Patient Advocate: Cynthia Fisher’s Path to Change 

Cynthia Fisher, founder and chairman of PatientRightsAdvocate.org, is passionate about ending the damaging systemic issues in the American health care system.  

Fisher began her career at IBM, automating hospital and insurance communications, and later transitioned to running a blood bank division at Haemonetics. There, she witnessed the demand for bone marrow transplants and pioneered umbilical cord blood stem cell banking, creating a business model that prioritized transparency, affordability and quality. 

According to Fisher, the health care industry often prioritizes profits over patients, with hidden pricing, lack of transparency and exorbitant costs protected by patents and regulations. 

“Every time we get care, we’re forced to sign a blank check,” Fisher says. “We can’t get care unless we pick up a digital pen. You are financially assigning all of your assets to be responsible beyond what any insurance coverage would cover. We are being forced into a deceptive and unfair contract.” 

Fisher’s perspective shifted further after encountering three individuals who—despite having jobs and insurance—faced financial ruin due to surprise medical bills. These experiences revealed the predatory nature of health care contracts, where patients unknowingly expose themselves to unchecked financial liability and data misuse. This motivated Fisher to advocate for change, emphasizing the need for transparency, fair pricing and accountability in health care. 

The Affordable Care Act and subsequent laws required hospitals and insurance companies to display their prices online. Under President Donald Trump’s first administration, a 2019 executive order enforced this requirement. President Joe Biden’s administration retained the law, even increasing fines for non-compliance to $2 million per hospital. However, enforcement was lax, leading hospitals and insurers to disregard the rules. 

Later, the Biden administration weakened the law by allowing price estimates and algorithms, which critics say lack practical value for consumers. In February 2025, Trump reintroduced a push for “radical price transparency,” mandating clear, accountable pricing from hospitals and insurers—a step toward meaningful reform benefiting consumers and employers. 

Ultimately, Fisher’s dedication to transparency and accountability in health care highlights how charitable donors can help advance policy ideas. By building on legislative reforms, like price transparency laws, and demanding stronger enforcement, Fisher continues to inspire a movement toward ethical and affordable health care. 

One of the remarkable aspects of Fisher’s mission is its bipartisan appeal. Promoting for health care price transparency transcends political divides, resonating profoundly with Americans across the ideological spectrum.  

“This is truly a bipartisan issue, supported by the vast majority of Americans,” Fisher emphasizes. “We’ve worked with leaders across the political spectrum, including Sen. Bernie Sanders and then-Sen. Mike Braun, who championed bipartisan legislation. At the state level, we’ve partnered with leaders like Gov. Polis in Colorado and policymakers in Oklahoma working to codify transparency laws.”  

Fisher also noted working with a number of health care facilities that practice price transparency, including Surgery Center of OklahomaOSS Health in Pennsylvania, Smith Direct Care in Colorado and Cost Plus Drugs for patients nationwide.  

“We continue to build nationwide support from patients, employers, unions and all consumers to fight for actual prices, not estimates, in health care,” she said. 

The Intersection of Litigation and Philanthropy 

Litigation is another key area for donors to make investments in the policy arena. One of the most notable examples of its impact occurred during the mid-20th century, when major foundations funded intellectuals and grassroots advocacy groups during the civil rights era and then expanded those efforts to fund litigation.  

In addition to supporting litigation, some foundations went as far as helping to establish public interest law firms dedicated to addressing civil rights issues. This positioned philanthropy at the forefront of a contentious and polarized area of public policy, which sought to expand social, political and economic participation and strengthen civil rights for all Americans during the turbulent 1960s. 

Pursuing legal reforms to expand civic engagement, ensure equality under the law and promote access to opportunity for Americans are wholly compatible with the core values of philanthropy. Advocates saw these efforts as crucial to fulfilling a key philanthropic and societal goal: enabling broader participation in our democracy. 

According to Kim Dennis of the Searle Freedom Trust, litigation is a key policy tool, particularly when other avenues, like legislative action, are stalled or ineffective. Litigation has shaped policy, from challenging Obamacare to addressing the growing power of the administrative state. 
 
“Litigation is a lot of strategy,” Dennis says. “You must know the intricacies of the law and think strategically about how to bring cases. If you’re just going to willy-nilly bring a case against some policy you don’t like, that is not going to work.”  
 
Searle supports public interest law firms like the Institute for Justice, Pacific Legal Foundation and the New Civil Liberties Alliance. The foundation also supported momentous litigation efforts, like those led by Edward Blum and his organization Students for Fair Admissions (SFFA), which brought lawsuits against Harvard and University of North Carolina.  

She said state-focused think tanks, such as the Goldwater Institute, are developing litigation teams to advance policy reform. This is evidenced by Goldwater’s success in building a large pro bono network of over 100 attorneys to support their litigation strategy. 

Conclusion 

Significant policy change is neither quick nor easy. Those working toward policy reforms know success often requires patience, long-term investment and strategic education. Whether a donor is supporting policy institutions, academic research or intellectual thought leaders, achieving real reform is a marathon, not a sprint.  

Historical successes—from the abolition of slavery to expanding educational opportunities through school choice—prove policy philanthropy’s value supporting efforts to educate the American public and policymakers, and how those efforts drive societal change and progress. 

Importantly, policy philanthropy cuts across ideological lines. From progressive donors supporting institutions like the Center for American Progress to conservative philanthropists funding think tanks like The Heritage Foundation, both demonstrate philanthropy’s bipartisan potential to foster ideas and broaden civic participation. This tradition of philanthropy helping create a more educated and engaged citizenry as well as supporting institutions engaged in securing policy change remains critical to America’s democracy. 

Editor’s Note: This piece explores how philanthropic organizations play a meaningful role in supporting public policy ideas and reforms, while adhering to the legal guidelines that govern charitable activity. Philanthropy Roundtable encourages foundations to consult with legal counsel to ensure compliance with IRS rules and regulations. 

Philanthropy Roundtable Portfolio Director Clarice Smith and Contributing Writer David Bass assisted with the content of this article. 

 

 


This article was first published on the Philanthropy Roundtable article on May 29, 2025, at https://www.philanthropyroundtable.org/beyond-charity-how-strategic-philanthropy-can-support-sound-public-policy/.