Who are donors?

A donor is an organization or private individual, who provides resources to citizens and non-profit organizations for the betterment of society.

While dictionaries provide a vague, context-less definition for this word, the Donors Forum has practical experience in the non-profit sector and a realistic understanding of “donorship.” 

Unfortunately, Russian laws generally ignore the concept of “donor.”  Similarly, legislation fails to recognize philanthropy and does not properly regulate relationships between donors and those who receive charitable gifts. 

What are donor activities?

In a broad sense, donor activities (or “philanthropy”) is selfless giving.

Generally, donations are registered as charitable gifts, in accordance with international laws and norms, while retaining the giver’s original intent.  While sometimes difficult to realize the donor’s wishes, organizations must properly consider the giver, in order to receive continued support.

Donations can be in the form of grants, scholarships, humanitarian support, health/educational programs and/or technology.  Regardless of the classification, all charitable gifts should try to overcome civil injustices and to build a stronger, healthier society.

Types of donors:

Every donor’s distinctive characteristics originate from many factors: that organization’s activities, history, goals, progress and participation with other organizations. 

Philanthropic organizations (in Russia) are thus categorized:

•  National (Lukoil Fund, Dinasty Fund, V. Potanin Fund, Tol’yatti Fund);
•  Foreign (Ford Fund, AMP [United States], C. S. Mott Fund, CAF Fund);
•  International (United Way International, World Bank, UN High Commissioner of Refugees).

More frequently, donors are categorized according to origin of income, such as:

•  Government;
•  Private;
•  Corporate;
•  Community Foundations (funded by local associations).

Under any classification, philanthropic organizations’ main function is donating various resources to public projects.

Foreign organizations, that donate through their respective governments and/or utilize their nations’ resources, are implied under the heading “government donors.”  These foreign donors include, for instance, US Agency of International Development (US AID), the British Council, British Department of International Development (DFID), Grant Program of the Netherlands, among others.

Every program or charitable gift varies in size, direction and construction— from programs for transformation of Russian civil society to donations supporting cultural exchanges and scholarships for Russian students abroad.

In Russia, government charitable-funds are minimal and ineffective.  Our nation’s history contributes to weak philanthropic tendencies. Unfortunately, during the Soviet Era and years following, the government erroneously created negative sentiments toward private charity. This follows from the ideology that the Russian government should provide for all citizen’s minimal needs, that private givers cannot meet these needs nor should they, and that givers promote self-serving goals through “tactical” donations.

One may describe philanthropy as an “alternative” to government, so that when a social problem stretchs beyond government funding or attention, philanthropic organizations step up to the plate.

Private donations fund charitable programs “from a individual’s personal pocket,” for instance, Potanin Fund, Gorbachev Fund, Zimin “Dinasty” Fund.  Private donors strive toward accumulating capital, a part or percent of which funds their programs.  These funders invest, of sorts, into programs targeted toward the betterment of society, education, culture, and legal responsibility.  International private donors actively function in Russia (Ford Fund, McArthurs Fund, Robert Bosh Fund), but recently appeared several Russian funds (Zelenin Fund, Tsvetkov Fund, Veksel’berg Fund).

In particular, private funds are more effective and versatile, as compared to government funds, because program coordinators can make independent decisions as a project develops.  So, while private projects may be smaller in size, they function more quickly and effectively. 

Corporate funds originate directly from a company’s resources. Generally, corporate funders support local initiatives, and they accordingly finance initiatives targeted toward critical problems affecting that region.  Among the foreign corporate funds operating in Russia and worldwide, perhaps the most well-known are AVON and ALCOA.  Also important to note that Russian philanthropic companies increased in number over the past few years—for instance Lukoil Fund, and Rosbank Fund.     

Local initiative funds (or community foundations) are established by inhabitants of a particular region, city, or village and finance local projects. For public initiatives, these community foundations utilize varied local financial sources—from municipal budgets and local business donations to local taxes.

Role of donors:

•  Alternative source for long-lasting financial resources;
•  “Starting point” for social progress and continued support;
•  Inalienable part of “third sector” infrastructure;
•  Participant in building a strong, active civil society.