The Global Philanthropy Resource Flows Index measures total aid—both formal and, to a lesser degree, informal—from developed and emerging countries to developing countries at all stages of economic development, while also highlighting the collaborative partnerships and infrastructure that support philanthropic efforts across the globe. In doing so, the Global Philanthropy Resource Flows Index is the first of its kind to offer a holistic view of the state and magnitude of aid to the developing world.
The report examines the sources and magnitude of private giving to the developing world—including international development aid, philanthropic giving and other private investments—through partnerships with the Organization for Economic Cooperation and Development's 28 member countries and 11 additional countries.
The Global Philanthropy Resource Flows Index was previously published by the renowned Hudson Institute since 2006, under the title The Index of Global Philanthropy and Remittances.
Measuring aid to the developing world
Key findings from the 2016 report
- Global philanthropy has reached a record high of $64 billion, of which $44 billion is contributed from the U.S. Data from 2014, the most recent year with available information.
- Emerging economies including South Africa, India, Turkey, and China have increased their philanthropy, remittances, and private capital investments to developing countries.
- Remittances from the U.S. reached $109 billion in 2014, exceeding philanthropy and government aid combined.
- U.S. private capital investment flows to developing countries made a dramatic recovery over three years, increasing from $108 to $179 billion. This important long-term development resource from U.S. business investors accounts for almost 50 percent of total U.S. economic engagement with the developing world.
- Private financial flows from all donor countries to aid-recipient countries account for 85 percent of their economic engagement with developing countries. Government aid represents only 15 percent of the total engagement, the reverse of some 40 years ago.
Impact of the Global Philanthropy Resource Flows Index
This research reframes the discussion about the roles of public and private philanthropy by showing that the full scale of a country’s generosity is measured not just by government aid, but also private giving.
The Global Philanthropic Resource Flows Index serves as a comprehensive yardstick for global aid that helps illustrate the indispensable role that philanthropy plays in building communities globally. With this data, we can identify and highlight important charitable trends that help us improve upon our philanthropic system and, most importantly, act as a catalyst for maximizing the impact of gifts.