CONCLUSION

Society-wide trust and trust in our big institutions are at historic lows. This has come about after decades of growth in federal government and elite wealth accumulation, (together, the center) matched with a slow demise of social capital creating institutions elsewhere (the periphery).

The problem is worsening, with an increase of both political and philanthropic funding from new mega-wealthy donors acting to supercharge the center. In political funding of parties, campaigns, and lobbying, funds focus on federal policy and bypass local institutions. If attention is paid to local institutions, it is to achieve federal policy goals. In philanthropy, foundation grant-making has moved into a hirer-contractor relationship, with funds used to achieve policy goals imposed on the periphery from the center in an excess of control that diminishes relationship and trust.

The demise of society-wide trust at the national level is a problem. It is the cause and description of polarization. Without society-wide trust, the tribes, groups, and affiliations that co-exist within American society are no longer able to do so with ease. Instead, other sources of trust are looked for, in particular partisan affiliation, whether other groups, and diverse opinions, are seen as a threat.

This presents two main issues. One, in response to concerns about polarization, some seek to “fix” it by inviting all groups to join their tribe. This is seen in, paradoxically, anti-polarization efforts that seek to suppress diversity of opinion as the mean by which to achieve a non-polarized society. This, however, is to further exert the control of the center, federal government and the wealthy, over the periphery and is counter productive as it further destroys society-wide trust. Second, is the threat to the separation of church and state, which comes in two forms. Firstly, to wrongly perceive such separation as the need for a secular state to be purged of all influence of religion in the public, civic, and civil sphere. Secondly, to exercise the force of the state to educate and adjudicate on a new belief system. This is a threat to diversity of opinion, and seeks to eradicate tribe, and group, which is again counterproductive to the growth of social capital and society-wide trust.

We consider then the role of the small nonprofit organizations that work within rich local networks at the community level, especially those aiming to tackle causes and consequences of poverty, and make four main policy proposals to assist them:

The creation of a new 501c3P category that identifies registered nonprofits that have an exclusive focus on poverty relief
The creation of a State Poverty and Relief Community Chest (SPARCC) that can receive donations from individuals and foundations that are distributed to 501c3P nonprofits in their state without the need for a grant application
To include those on lower income without income tax liability in the charitable deduction, as they are more likely frequent donors to local and faith-based groups
An Independent Voucher Commission established with Congressional direction to explore expanding the role of personalized budgets and vouchers that provide service users with choice of where to receive welfare, social services, health and human services. This program would allow for not just an expansion of the suppliers of service delivery, including faith-based groups, but should also allow for a diversity in approaches taken.

Together, these policy initiatives are meant to be a modest but achievable approach to changing course. The funding arms race that is supercharging the center and crippling the periphery must be de-escalated. Encouraging billionaire philanthropists in particular to direct their attention at no-control, no strings attached gift giving to community-based organizations should help not just revitalize local social capital but may also boost America’s dim view of philanthropy in general.

The majority of Americans believe trust in national institutions and each other can be restored. We trust the above measures would help to achieve this. A United States of America with strong stocks of social capital will achieve renewed society-wide trust, and the confidence to celebrate diversity of opinion. It will take courage from the federal government, law makers, and the wealthy elite to back-down from their polarizing arms race to do it.