The Future Role of the Philanthropy Sector Fighting AIDS
This paper discusses the possible role of the philanthropic sector in funding the fight against HIV/AIDS over the next 10 to 20 years. The philanthropic sector, in this instance, consists of individual donors, foundations, companies, and those organizations which, through the support of these three groups, provide funding and resources to the work in HIV/AIDS.
It is impossible to quantify the full financial value provided annually by the philanthropic sector to HIV/AIDS-related work. Available statistical reports on foundation and corporate giving reflect only a fraction of the total support provided.
Nevertheless, private support is significant. Though constituting less than 10% of the total amount committed annually to HIV/AIDS work, the private sector’s estimated $10 billion in donations has an important and unique role to play. Monies from the philanthropic sector are more flexible and nimble, since private support is generally less bureaucratic. Moreover, it can be leveraged. And it can be grown. The raw potential of philanthropic giving is as indisputable as its current impact.
Donations to the international sector from U.S. companies, foundations, and individuals was estimated at $13.2 billion in 2007 – 4.3 percent of total estimated philanthropic giving, according to the Center for Philanthropy and Giving Institute. Support for HIV activities in low- and middle-income countries from U.S.-based foundations nearly doubled between 2004 and 2006, reaching $979 million, primarily in research spending.
A broad estimate of total funding from the philanthropic sector for HIV/AIDS work would be roughly $1 billion annually, with $500 million from U.S.-based foundations and corporations, $115 million from European-based foundations and companies, and another $300 to $400 million from private individuals, charities, churches, and service organizations worldwide. The estimate of individual giving reflects general philanthropic trends, where individual support often mirrors total corporate and foundation giving.
