This paper explores the impact of American foundations on the development of the philanthropic idea and the organization of modern foundations round the world in the fields of research, education and social action. The international private philanthropy of major American foundations has been criticized for being too closely connected to American foreign policy aims. It has been accused of elitism, corporatism and/or racism, and of being aimed at building the position of America as a superpower. In spite of this, it has brought about an increased interest in international aid worldwide, with a growing number of gift s distributed to needy nations for development purposes. This paper tries to answer the question of whether it is done for strictly humanitarian or rather materialistic purposes, and how effective building numerous networks and social capital has been since WWII.

American private philanthropy has a very long tradition, dating back to colonial times, although it was not formalized until the end of the 19th century, when people of considerable affluence started establishing foundations for educational, humanitarian and research purposes. It is difficult to set the date when American foundations started investing abroad. However, there are many crucial moments when philanthropy abroad expanded considerably. On a multitude of occasions Americans were helping the needy, starving, and sick all over the world, no matter what the previous relations with the people of the country had been.