N ovember 15 th has been set aside as National Philanthropy Day Ò across the world. It is registered with the Patent and Trademark Office of the U.S. Department of Commerce and coordinated by the Association of Fundraising Professionals. This day should be celebrated because of philanthropy’s direct contribution to our society – to our quality of life.

We all can generically espouse the goodness of philanthropy and the many non-profit and faith-based organizations that exist within our own community. It is easy to understand that Kiwanis’ support of children is admirable, that Midway College and KCTCS are providing a critical service in educating our citizens; that the local food bank helps those who are in need; that the Humane Society’s advocacy for the quality of life for animals is important; that the United Way’s efficient support of multiple charities enhances corporate philanthropy; that the library and other literacy advocacy groups create capacity for knowledge; that the local arts council directs our attention to cultural diversity; and that our churches are irreplaceable beacons for our souls and spirituality.

Individually, it is clear that philanthropic support of these and other equally important organizations is a good thing. But collectively, where does this civic activity and philanthropy fit within the overall concept of quality of life? Ultimately, that is what we all wish to enhance and improve. Leading scholarship by Robert D. Putnam at Harvard University has helped provide an answer by elaborating on the concept of “social capital,” but he has not pursued this concept just to categorize good work. He is building a case that social capital is a required aspect of community development and ultimately high quality of life.

Within this concept, social capital is added to the other two factors of production, human capital and physical capital, to determine the potential of a community, potential as measured economically, politically and socially. Social capital is defined as networks, norms and trust within a society that facilitate the maximization of community benefit. We all agree that investment in human capital, or human knowledge and skill, helps to increase productivity and income. We all agree that investment in physical capital, or equipment and plants, is important to increasing production and income over time. Now, it is clear that investment in “civic engagement,” or social capital, may be equally important. It may very well be the intangible factor that explains why some communities are considered more desirable than others.

Dr. Putnam calls our attention to an historical experience in Italy in 1970 when 20 regional governments were created in identical form. Invariably, these 20 governments fared much differently over time. Some were a complete failure and others were acutely efficient. The explanation for the success of these governments was not based on prosperity, affluence, ideology, party politics or social stability. The overriding factor that correlated with success was traditions of civic engagement. This and other studies continue, and the answers may be more complex than this summary, but what can not be ignored is the emergence of social capital as an important factor for our quality of life.

As measured by networks, norms and trust, our community must build on its current stock of social capital both through volunteerism and giving. Philanthropy and charitable giving provides the financial capacity to build social capital. Our actions will determine what we do with this capacity. A community where the norm is a back-and-forth exchange of good deeds, where the next good deed goes repaid at an unexpected but definite point in time and where trust reverberates through a network of engaged citizens will be a community that communicates, collaborates, infuses moral obligation into community transactions and ultimately functions more efficiently. It is primarily through non-profit organizations, faith-based institutions and civic clubs that these values have structure and presence.

National Philanthropy Day Ò should give us all a brief moment to consider whether we are investing in our community in a way that will maximize the greater good. One very important way to invest in this end is through financial support of local organizations and clubs. On this day, join the world community in thanking philanthropists who believe in these concepts of greater good and improving quality of life. Take a moment to appreciate the resources that these individuals give to support a better community right here in central Kentucky . There is a good chance that this philanthropist is you, and on this day, the world community appreciates your values and investment in a greater good.

Source: Robert D. Putnam, “The Prosperous Community,” The American Prospect vol. 4 no. 13, March 21, 1993 .