From privilege to possibility: leadership in an age of inequality

In this era of economic inequality, the philanthropic sector is not a spectator. We contribute to and benefit from a flawed economic system that fuels inequality, condemns people to poverty and perpetuates discrimination. As privileged participants in this system, we have an opportunity and responsibility to change it, writes Rachel Ball, CEO of the Reichstein Foundation.

The perils of inequality – including poorer health and education outcomes, higher levels of violence, polarisation and social unrest, food insecurity and exposure to climate risk – are well known to our sector. Many of us seek to address these issues through our grant-making. But efforts to tackle the symptoms of inequality will not solve this crisis.

In their recent book Solidarity, Astra Taylor and Leah Hunt-Hendrix caution that “the majority of philanthropy serves as a fig leaf to cover up the deep injustice [of economic inequality], rather than eradicate its causes”. To move beyond an economic system that entrenches inequality we need to lead not just by giving – but by changing the systems that make giving necessary.

In August 2025, the philanthropic sector will gather in Canberra for Philanthropy Australia’s Leadership Summit. The Summit offers an opportunity to consider our role in a system linked to extreme inequality, and how we might demonstrate leadership to create change and contribute to a more just economy. Here are a few ideas to get the ball rolling.

First, there are plenty of opportunities to support work that, rather than placing a fig-leaf over injustice, eradicates the causes of inequality. Australian NGOs have the expertise, solutions and networks to drive systemic reform, but their work requires resourcing. From ending economic exclusion, to social security and tax reform, to the development of a wellbeing economy, opportunities for impact abound.  

Making the tax system fairer

Earlier this year the Reichstein Foundation and Tripple conducted a joint grant round to support advocacy and campaigns for a fairer tax system. We identified a raft of projects and organisations reimagining tax as a tool for fairness, equality and collective wellbeing.

We found that despite tax reform being one of the most effective levers for addressing economic inequality, work in this area is vastly underfunded. Sector leaders estimated that tax justice advocacy and campaigns receive around $300,000 a year in dedicated support from philanthropy. If we’re serious about shifting the dial, substantial, flexible, long-term funding for this work is required.   

Speaking up about equality

Second, we have a role beyond funding. Around the world, wealth holders have been speaking up about inequality, lending their influence and networks to support efforts for reform. Australian philanthropy’s work in this space is still nascent but growing interest and organising efforts such as the newly established Resource Generation Australia suggest that we won’t remain on the sidelines of these debates for much longer. 

A couple of weeks after Philanthropy Australia’s Leadership Summit, the Treasurer will convene an Economic Reform Roundtable, and he’s indicated that tax will be an important part of the conversation. Imagine if philanthropy had a seat at the table; an unusual suspect making the argument that economic reform to address inequality needs to be at the heart of the government’s agenda? 

Our capital is not neutral

Third, we should consider our role as investors. Our sector holds over $50 billion in investable assets and this capital is not neutral. Financial markets can contribute to inequality in a range of ways. For example, an unchecked focus on maximising short-term profits for shareholders can widen the gap between capital owners and wage earners by incentivising wage suppression and job cuts.   

The report The Investor Case for Fighting Inequality, released earlier this year by Oxfam America and Rights CoLab, lists a range of things that investors can do to combat inequality, including on issues such as wages and freedom of association. While such interventions may seem daunting, particularly for smaller foundations without large endowments or internal investment expertise, the Endowments for Impact Challenge – a collaborative, public tender competition to identify high-quality responsible investment advice – demonstrated that there are advisors and communities of practice that can help.  

Time to robustly consider questions of perpetuity and control

Finally, there is the more existential question of whether our sector should continue to control its resources, or whether better outcomes are possible when assets are redistributed to people and communities closer to the work. For example, two years ago, UK Foundation Lankelly Chase decided that philanthropy was unavoidably “entangled with colonial capitalism” and committed to close its doors within five years, redistributing its more than £100m of assets.

Lankelly Chase has said, “it can look to some that our decision to ‘relinquish control of our assets’ is an abandonment of our responsibilities. We obviously view it very differently. By putting our mission before our institutional interest, we say that relinquishing control is a necessary step into deep accountability to our mission.”

There is no one correct or easy answer to questions of perpetuity and control, but there is certainly scope for our sector to consider them in a more open and robust fashion, ensuring that the directions we take are as closely aligned to our roles, values and missions as possible.   

Philanthropy has contributed to the growth and dominance of our current economic model. So too can we contribute to its transformation, and this might be just the leadership our times are calling for.

Rachel Ball will be speaking at Philanthropy Australia’s sold-out Philanthropy Leadership Summit 2025 in Canberra 5-7 August. Be sure to read the next edition of Giving News for the highlights.