This section of Family Giving News features brief overviews of a variety of other interesting and timely articles and perspectives on philanthropy. If you have a suggestion for a future edition, please email Kevin Laskowski or contact the National Center at 202.293.3424.
Companies Pledge $400-Million Worth of Donated Time
September 9, 2008, Chronicle of Philanthropy
The Corporation for National and Community Service wants to redefine pro-bono
work with a new campaign that calls on businesses and corporations to encourage
employees to volunteer using their professional skills. The just-announced “A
Billion + Change” campaign has so far raised $406-million toward its goal in
pledges of time from workers with specific expertise. Twenty-three businesses —
including IBM, Pfizer, Intel, KPMG, ING, and National Geographic — have joined
the campaign, which was founded through the the President’s Council on Service
and Civic Participation, a group of leaders from business, entertainment,
sports, education, government, nonprofit organizations, and the news media.
Lawsuit Adds to
Turmoil for Community Group
September 9, 2008, New York Times
In the wake of an embezzlement scandal that rocked the Association of Community
Organizations for Reform Now, or Acorn, two of its board members are seeking a
court order to force it to hand over financial documents. They also are seeking
to sever what they describe as continuing ties between Acorn and its founder,
Wade Rathke, who resigned after it became public this summer that his brother
had embezzled almost $1 million from the organization eight years ago. They
contend that Mr. Rathke continues to direct the staff and expenditures. “Acorn
will suffer irreparable harm if the defendants are not restrained from contact
with employees, expending and receiving, destroying or prohibiting the review of
accounting and other data necessary to fulfill the fiduciary responsibility of
the interim management committee,” the board members, Marcel Reid and Karen
Inman, stated in the petition. Both serve on a committee established to lead
Acorn.
Malaria researcher among Heinz Award winners
September 9, 2008, Philadelphia Inquirer
A molecular biologist who is searching for a cure for malaria is among five
people being named Heinz Award winners on Tuesday. The annual $250,000 prize is
given to people who make notable contributions in the arts and humanities; the
environment; the human condition; public policy; and technology, the economy and
employment. Dr. Joseph DeRisi invented the ViroChip, a small glass wafer
containing some 22,000 DNA sequences from more than 1,300 viral families. It
enables scientists to identify existing viruses and detect new ones. Using the
ViroChip, DeRisi and his colleagues at the University of California at San
Francisco, have cracked malaria's genetic code, which may lead to drug and
vaccine therapy. He gives most of his research and knowledge away for free. The
Pittsburgh-based Heinz Family Foundation has presented the awards since 1994 in
memory of Sen. John Heinz III, heir to the Heinz food fortune who died in a 1991
plane crash. The awards will be presented at a private ceremony in Pittsburgh on
Oct. 21.
College
Presidents Defend Rising Tuition, but Lawmakers Sound Skeptical
September 8, 2008, New York Times
Two dozen college presidents and policy experts defended the rising costs of
tuition on Monday and argued against forcing colleges to spend more of their
endowments. But Senator Charles E. Grassley, Republican of Iowa, and
Representative Peter Welch, Democrat of Vermont, who convened a round-table
discussion on the subject, indicated that they would continue their effort to
push universities to justify their tax exemptions by spending more of their
endowment money. “Tuition has risen at twice the rate of per capita income,” Mr.
Welch said, “and this year it will cost just under $50,000 to attend the average
private college. If the cost of milk had risen as fast as the cost of college
since 1980, a gallon would be $15.” Mr. Grassley said it was only fair to ask
whether universities were doing enough for society, given that the value of
their tax exemption, in the 2007 fiscal year, was more than $17 billion. He
cited a survey finding that in that year, universities earned an average return
of 17.2 percent on their assets but spent only 4.6 percent.
Wondering What's Next For Fannie And Freddie
September 8, 2008, Washington Post
The government's takeover of District-based Fannie Mae and Freddie Mac of McLean
was for some employees the painful conclusion of several difficult years that
seemed to reduce the status of two firms that once dominated the local business
and philanthropic scene. The mortgage finance goliaths were not only
Washington's largest public companies, but they were central figures in the
region's once-promising financial sector. Together with private-equity giant
Carlyle Group, credit card issuer Capital One, student loan company Sallie Mae,
the investment house Friedman, Billings and Ramsey, and many others, Fannie and
Freddie helped diversify a Washington economy historically tied to the
government.
Storm-Relief Costs Far Outpace Donations
September 5, 2008, Chronicle of Philanthropy
As disaster-relief groups prepare for hurricanes and tropical storms that could
reach coastal areas in the United States next week, many are concerned that
donations will fall far short of the cost of relief operations. Despite urgent
requests — including appeals by the presidential candidates on their Web sites
and through text messages — charity officials running relief operations say that
donations so far are coming in more slowly than in previous disasters. They cite
two factors: the poor economy and news coverage that has stressed
lighter-than-expected damage from the two storms so far.
Relief Groups Expect Weeks of Continued Needs in Louisiana, Even as Other Storms
Threaten
September 5, 2008, Chronicle of Philanthropy
Relief workers started giving out food and readying shelters on Thursday as
people began to return to this region, which sustained Hurricane Gustav’s most
extensive damage. Some areas have been told not to expect electricity to be
restored to until October. Charity workers in Acadiana, Greater New Orleans, and
other areas here are undertaking their relief work in the shadow of other
storms. As they handed out meals to the few evacuees who had returned by
Thursday, some said they are worried about how they’ll prepare for Hurricane Ike
while still providing relief to people affected by Gustav.
Lessons From Katrina Show Signs of Paying Off for Charities and Those They Serve
September 2, 2008, Chronicle of Philanthropy
While Hurricane Gustav largely bypassed this city 180 miles north of the coast,
roughly 3,400 people are still in shelters here awaiting word as to when they
might be able to return home. People continued to flood into Jackson’s largest
shelter on Tuesday, a coliseum operated jointly by the state Department of Human
Services and the American Red Cross. More than 200 people arrived on Tuesday,
some of them from smaller shelters that were closing. The building held 950
people as of Tuesday morning, short of the roughly 1,500 people some officials
said it was capable of holding. On Tuesday, American Red Cross volunteers and
Department of Human Services staff members were struggling to find cots for the
new arrivals. The relief effort seems to have largely avoided many of the
problems that plagued the response to Hurricane Katrina, both because of
preparations made in advance of the storm and because the hurricane did less
damage than predicted. But charity volunteers and staff members are already
looking ahead to the potential problems that could be caused by three big storms
in the Atlantic that forecasters say could bring trouble to the America’s
coastal regions in the next week or so.
Small
Kresge Foundation Teaches Big Lessons in Investment Strategy
August 30, 2008, Wall Street Journal
Every year, investors turn to Harvard and Yale in hopes of discovering how these
revered endowment funds beat the market. During the credit crunch, they might
have been better served studying the lesser-known Kresge Foundation. The $3.8
billion Troy, Mich., foundation returned 9.3% for the 12-month period ended in
June. That compares with a median return of negative 4.7% for foundations and
endowments with $1 billion or more in assets, according to the Wilshire Trust
Universe Comparison Service. Kresge's returns were aided by energy holdings and
hedge-fund performance. The foundation also bought credit-default swaps on
corporate bonds, a type of derivative that protected the portfolio from selloffs
in the debt market. This year, the fund has been buying credit-default swaps on
European banks and investing in distressed residential-mortgage funds. Ivy
League and other elite-college endowments use their prestige and large asset
size to gain access to the most exclusive private-equity and hedge funds, which
often have been a boon to their overall returns. But Kresge's performance shows
that smaller funds -- without the same market clout -- can outmaneuver the
behemoths by taking advantage of some widely available opportunities.
Hilton Humanitarian Prize Of $1.5 Million Goes To BRAC
August 27, 2008, Conrad N. Hilton Foundation
BRAC, the largest non-profit organization in the developing world, has been
selected to receive the 2008 Conrad N. Hilton Humanitarian Prize of $1.5
million. The Conrad N. Hilton Foundation presents the annual award, the world’s
largest humanitarian prize, to an organization that is significantly alleviating
human suffering. The prize will be presented on October 20 in Geneva,
Switzerland, with Quincy Jones as keynote speaker. Launched in Bangladesh in
1972, BRAC reaches more than 110 million people with its holistic approach to
addressing poverty by providing micro-loans, education, health services, job
creation and human rights education. “BRAC’s approach to creating
self-sufficient and sustainable programs on a massive scale has blazed a trail
for development organizations around the world,” said Steven M. Hilton,
President and CEO of the Hilton Foundation. “Where most NGOs might tackle one
dimension of poverty, BRAC delivers multi-faceted solutions to attack all
aspects simultaneously,” Hilton added.
Tides Foundation official accused of fleecing charity
August 21, 2008, San Francisco Chronicle
A former official at a San Francisco charity has been indicted by a federal
grand jury on charges that he stole more than $132,000 over three years, court
records show. Jason Ramon Sanders, 37, of San Francisco, who has served as
philanthropic adviser of the Tides Foundation, was named in an indictment handed
down Tuesday by the grand jury in San Francisco. He faces a single count of
theft within the special maritime and territorial jurisdiction of the United
States, because the charity is located in the Presidio. The foundation has
funded environmental and social justice projects since 1976 and also provides
philanthropic advice, according to its Web site. The indictment accuses Sanders
of stealing $132,600 from February 2005 to March 2008.
Charities Brace for Hurricane Gustav
August 21, 2008, Chronicle of Philanthropy
Charities are preparing for a major disaster recovery effort as Hurricane Gustav
bears down on the Gulf Coast for a predicted Monday afternoon landfall. The
American Red Cross and the Salvation Army are dispatching swarms of employees
and volunteers to help those who are being evacuated for the storm and to be
ready for what could be a relief effort on par with the effort that followed
Hurricane Katrina three years ago.
New suit filed over Newcomb closure
August 21, 2008, Times-Picayune
Another niece of Newcomb College's benefactor filed suit Wednesday to reopen the
women's college that Tulane University shut two years ago as part of
post-Hurricane Katrina restructuring. The petition by Susan Henderson Montgomery
of Franklin, Mass., who was identified as a great-great-great-niece of Josephine
Louise Newcomb, was assigned to Civil District Judge Piper Griffin. No court
date has been set. It is the third such legal action filed in response to the
college's closing. All three have said Tulane violated the terms of Newcomb's
gifts by shutting it. A federal suit brought in March 2006 by a group of
students and alumnae was thrown out, and that ruling was not appealed.
College of Southern Nevada announces big donation
August 19, 2008, San Francisco Chronicle
The College of Southern Nevada is getting its biggest-ever donation: $8.2
million from the Engelstad Family Foundation for the cardiorespiratory sciences
program. Officials say the money will pay for a 10,000-square-foot expansion of
the health sciences building now known as Building K. It'll be renamed the Ralph
and Betty Engelstad School of Health Sciences to honor Ralph Engelstad, the late
owner of the Imperial Palace hotel and casino. He died of lung cancer in 2002.
IRS Releases Instructions for New Charity Tax Form
August 19, 2008, Chronicle of Philanthropy
The Internal
Revenue Service released on Tuesday final instructions for the redesigned
Form 990, completing the first major overhaul in a generation of the
informational return that most charities must file with the federal government.
The IRS modified some language in the instructions, including tinkering with the
definition of a “key employee” to limit the number of executives whose
compensation must be reported, but charity watchdogs said they were happy to see
the final instructions issued without many significant changes. Some had feared
the IRS would make major changes in response to complaints from nonprofit
officials that new reporting requirements on the form were burdensome.
George Boone, 85; major Southern California philanthropist dies
August 17, 2008, Los Angeles Times
Dr. George Boone, an orthodontist turned real estate developer and leading
Southern California philanthropist who helped establish the Boone Children's
Gallery at the Los Angeles County Museum of Art and a recently completed USC
center on Santa Catalina Island dedicated to the study of environmental science,
has died. He was 85. Boone died Tuesday of Parkinson's disease at his longtime
home in San Marino, said his wife, MaryLou. The Boone name can be found on
buildings and programs throughout the state dedicated to education and the arts,
the legacy of someone who was "very humble . . . and interested in a whole array
of opportunities that would leave the world better than he found it," said
Harold Slavkin, dean of the USC School of Dentistry. Slavkin held a chair that
the couple endowed at the dental school and became a close friend.
Head of Foundation
Bailed Out Nonprofit Group After Its Funds Were Embezzled
August 16, 2008, New York Times
When the embezzlement of almost $1 million by the brother of the founder of the
Association of Community Organizations for Reform Now, better known as Acorn,
surfaced last month, the organization announced that an anonymous supporter had
agreed to make it whole. That supporter was Drummond Pike, the founder and chief
executive of the Tides Foundation, which channels money to what it describes as
progressive nonprofits, including some Acorn charitable affiliates. Mr. Pike is
a friend of Wade Rathke, the founder of Acorn and its leader until the scandal
broke, and he agreed to buy the promissory note that required the Rathke family
to repay Acorn the money that Mr. Rathke’s brother, Dale, had stolen.
Feinstein to front money for lost scholarship funds
August 15, 2008, Providence Journal
Philanthropist Alan Shawn Feinstein is offering to pay the college scholarships
of dozens of students who were promised the money by The Education Partnership,
a nonprofit advocacy organization that went into receivership in June. Feinstein
said he is concerned that several of the students will be unable to attend
college unless they receive the $2,000 scholarships. He is also troubled that
several hundred thousand dollars in a scholarship fund he established 15 years
ago, which The Education Partnership oversaw, is apparently missing.
More Than $110-Million Raised for Disasters in Asia
August 14, 2008, Chronicle of Philanthropy
American nonprofit groups have raised more than $110-million for victims of the
natural disasters that hit Myanmar and China in May. As charities make the
transition from providing food and medicine to helping rebuild homes and
schools, some say the money raised may not meet all the longer-term needs. In
Myanmar, a feared “second wave” of deaths from disease never materialized, but
charities are now worried about people going hungry. The cyclone destroyed 80
percent of crops in the worst-hit region, said Randy Strash, strategy director
for emergency response at World Vision.
Gates Foundation Promises $17.6-Million in Emergency Food Grants
August 14, 2008, Chronicle of Philanthropy
The Bill & Melinda Gates Foundation says it will donate $17.6-million to help
people who have been affected by rising food prices worldwide. An estimated 950
million people are at risk of hunger and malnutrition worldwide because of high
food and fuel prices, according to the United Nations. Young children and women
are suffering the most, while small farmers have been particularly hard hit by
increases in fertilizer and transportation costs.
Watchdog Group Devises New Accreditation Plan for Muslim Charities
August 13, 2008, Chronicle of Philanthropy
A watchdog group and a nonprofit legal organization announced a plan Wednesday
aimed at restoring donor confidence in Muslim charities and protecting them from
unfair government scrutiny. The voluntary accreditation program — run jointly by
the Better Business Bureau’s Wise Giving Alliance and Muslim Advocates — will
vet aid groups, mosques, and other Muslim charities and help them meet the
alliance’s standards of accountability. Muslim Advocates, a legal and
civic-education group in San Francisco, will look over a charity’s financial and
legal records and offer advice to Muslim charity leaders in advance of review by
the Better Business Bureau.
NFL
Executives Hope To Keep Salaries Secret
August 12, 2008, New York Times
For years, the N.F.L. has disclosed the commissioner's salary, which is now
approaching $10 million a year, on an annual federal tax filing. Such
information must be made public through the I.R.S. Form 990 because the N.F.L.
headquarters in New York has nonprofit status, akin to a chamber of commerce.
The tax code requires nonprofit organizations to disclose names and salaries of
''key employees.'' The N.F.L. considers its commissioner the only individual who
fits that definition. In recent years, however, the Internal Revenue Service has
proposed new rules to require most of the nation's more than 1.6 million
tax-exempt organizations to disclose much more information, including salaries
of many more key employees. The rules go into effect this year, and the N.F.L.
is pushing back. The N.F.L. argues that it is not a charity that receives public
donations, but rather it is a trade association financed by the 32 teams; the
team's owners can ask for the salary information at any time. The league
benefits from tax-exempt status by being able to sell hundreds of millions of
dollars in bonds at a reduced rate that are then lent at cut rates to clubs
building new stadiums.
Harvard
Endowment Aces a Brutal Year
August 7, 2008, Wall Street Journal
With endowments and pension funds struggling in a down market, Harvard
University's endowment notched a strong gain for the fiscal year ending in June,
up 7% to 9%, according to people familiar with the returns. The endowment, worth
$35 billion at the close of the 2007 fiscal year, was boosted by investments in
commodities, Treasurys and some strong hedge-fund performers. It was below the
endowment's average annual return rate of 15% over the previous decade. But
during a year when the subprime crisis and plunging stock markets caused many
institutional investors to deliver their worst performance in six years, those
returns still put it at the top of its class.
Australia’s Richest Man Plans to Give It Away
August 6, 2008, Wall Street Journal
Following on the footsteps of Bill Gates and Warren Buffett, the richest man in
Australia has now promised to give away his fortune to charity. Andrew “Twiggy”
Forrest, the iron-ore magnate behind Fortescue Metals, this week said he plans
to donate nearly all of his $8 billion fortune before he dies. “I don’t aspire
to great wealth and I don’t admire it and I don’t intend to leave this earth as
a rich man,” Mr. Forrest told reporters at something called the “Diggers and
Dealers” conference in Kalgoorlie. "I intend to give it away."
NonProfit Times Announces Sector's Top 50 for 2008
August 6, 2008, Philanthropy News Digest
The NonProfit Times, a leading business publication covering the
nonprofit sector, has released its eleventh annual Power and Influence Top 50
list. The individuals on the list were selected for their impact on the
charitable sector and for the innovative plans they are putting in place to
advance the work of their organizations.
Michael, Meet Curtis: Philanthropy Gets Personal
August 6, 2008, New York Times (Freakonomics Blog)
This past weekend I had the opportunity to bring two ends of the American income
spectrum together. I introduced Michael, the blue-blood New Yorker who plans to
start a family foundation, to Curtis, a squatter in Chicago who moves from one
abandoned apartment to another. Michael, a multi-millionaire with a team of
professionals managing his assets, must donate $78 million over the next few
years. Curtis lives off $5,000 per year; he rarely has more than a few dollars
in his pocket. Michael is white, Curtis is African-American. For 48 hours,
Michael observed Curtis and, just as important, Curtis tried to help Michael
understand “low income living.”
Network Counts On Collaboration For Growing Good
August 4, 2008, Washington Post
Bill Strathmann earned his business chops consulting on mergers and acquisitions
with BearingPoint. Now, as the chief executive at Network for Good, he's
bringing those skills to the nonprofit world. Based in Bethesda, Network for
Good creates online fundraising tools and processes electronic donations for
small and mid-sized nonprofit groups. Last week it acquired ePhilanthropy, a
nonprofit based in Ellicott City that teaches online marketing and ethics to the
same sort of small groups. It's Network for Good's fourth acquisition since
2004. The mergers are part of a strategy to expand Network for Good's reach
without draining money from other parts of the nonprofit world, Strathmann said.
He said ePhilanthropy's focus on fundraising ethics would complement Network for
Good's education programs, and its 20,000 nonprofit contacts would expand
Network for Good's reach. Network for Good generates its own revenue in lieu of
grants and tries to use the tools of corporate management. For a fee, it creates
"donate now" buttons for nonprofit groups' Web sites and processes donation
transactions. This year it's on pace to gather and distribute $75 million. The
company also teaches clients Internet fundraising tactics and has a catalogue of
nonprofit groups.
Not many speak their mind to Gates Foundation
August 3, 2008, Seattle Times
With a $38 billion endowment that exceeds the gross domestic product of most
countries it helps — and another $30 billion pledged by investor Warren Buffett
— the Bill & Melinda Gates Foundation has come to dominate the philanthropic
world in the same way Microsoft towered over the software landscape. Yet the two
organizations' public personas couldn't be more different. While Microsoft has
drawn equal measures of praise and scorn for its business practices and
products, the Seattle-based foundation gets lots of hugs and very few slaps. But
philanthropy experts and even some foundation leaders are uneasy with all the
adulation. Particularly in the field of global health, where funding for
diseases of the developing world was anemic before Gates' $9.5 billion dollar
infusion, few are willing to risk wrath by pointing out flaws in the
foundation's approach. Foundation officials say they've taken steps to solicit
outside advice, including the establishment of advisory boards. But departing
foundation CEO Patty Stonesifer acknowledges they need to work harder to listen
for voices that aren't getting through. It's a dilemma every foundation faces,
but due to its sheer size and influence on the world stage, the stakes are even
higher for the Gates Foundation.
Marketing Consultant Offers $1 Billion for Breast Cancer Cure
August 3, 2008, Philanthropy News Digest
Mike Dewey, a marketing consultant in Austin, Texas, has pledged to give $1
billion through his Dewey Foundation to the first person who discovers a cure
for breast cancer, the Associated Press reports. While far short of raising the
money for the prize, Dewey said he has about $22 million in pledges so far and
about $90,000 in actual donations. Updating an announcement he made earlier this
year, he said his foundation will provide "Victory Project Awards" worth $1
billion each to the first person who cures diabetes, reduces greenhouse
emissions from petroleum-powered automobiles by 95 percent, or creates a
3,000-pound car capable of getting 150 miles per gallon.
Jet Li takes action
August 3, 2008, Boston Globe
Li has already moved on from his role as Emperor Han in the third action-packed
installment of the Mummy series, in a sense from movies altogether. Seated for
an interview, studio employees available to meet his every need, Li would rather
talk about what he calls his third career: philanthropy.
No More 'Right
Hand Doesn't Know Left Hand's Work' (Opinion)
August 1, 2008, Wall Street Journal
In "Shaking Down Philanthropies" (Review & Outlook, July 26), you criticize the
coalition of 10 California foundations for undertaking to provide capacity and
leadership development for minority-led and grassroots community organizations.
You incorrectly assert that we have abandoned the principle of supporting
organizations based on their impact in improving people's lives, rather than the
race of their boards and staffs. It is precisely because we are committed to
grant making for impact that we opposed the California legislature's thinly
disguised effort to force foundations to direct funds to certain organizations
just because they were led by minorities. We could have simply opposed the
legislation and waited for another day to collaborate on this project. But many
of the foundations had already identified the lack of capacity as an urgent
problem that diminishes our own effectiveness. We will be more efficient
coordinating our efforts. There was no point in waiting -- other than, perhaps,
to avoid the accusation that we were sacrificing principle to expedience.
Bequest
Boosts Small Florida Foundation Into 'Big Leagues'
July 30, 2008, Philanthropy News Digest
A nearly quarter-billion-dollar bequest from a Sarasota widow has boosted a
modest and largely anonymous local charity into the ranks of the twenty largest
foundations in Florida, the Sarasota Herald Tribune reports. The Patterson
Foundation will receive an unrestricted gift of $225 million from the estate of
Dorothy Patterson, who died in 2007. Established in Sarasota with $3 million
after the death of her husband, James, in 1992, the foundation had provided
solid but unspectacular annual support to such local charities as Goodwill
Industries, All Faiths Food Bank, and Habitat for Humanity.
$225-Milion Bequest Made to New Foundation
July 29, 2008, Chronicle of Philanthropy
The Patterson Foundation, in Sarasota, Fla., has received a bequest of
$225-million from the estate of Dorothy Clarke Patterson, who died last year.
Ms. Patterson established the foundation in 1997 with a donation of $3-million.
The foundation is free to use the money as it sees fit. Ms. Patterson’s husband,
James, who died in 1992, was vice president and assistant managing editor at the
Daily News, in New York, a newspaper that his father co-founded with Robert R.
McCormick, a cousin. Mr. Patterson was also a descendant of Joseph Medill, who
was one of the founding partners of the Tribune Company, in Chicago, and a
former mayor of Chicago.
Charitable
donations with a political twist; Commissioners limited in taking contributions,
but money can go to their pet causes
July 27, 2008, Houston Chronicle
For the contractors and lobbyists whose public business rides on the trust and
goodwill of politicians, it is no secret that campaign giving is a high-stakes
game. At Harris County Commissioners Court, campaign donations of $5,000 or more
come along as often as hot days in a Texas summer. So, donors looking to stand
apart from the throngs of high-dollar givers have found another way to make
their generosity known: charity.
Shaking Down
Philanthropies (Opinion)
July 26, 2008, Wall Street Journal
Readers who run a foundation, serve on a board or are thinking of starting such
a charitable effort should know about the gauntlet of shakedown artists forming
up to demand a piece of the action. As with so many marginal ideas, this one is
coming out of California. A proposed bill there would have required foundations
with more than $250 million in assets to report the racial, gender and sexual
orientation of their board members, staffs and grantees. The bill's sponsors
recently agreed to drop the issue in return for a political payoff of millions
of dollars from 10 of the state's biggest charities.
Gates and
Bloomberg Back Worldwide Antismoking Campaign
July 24, 2008, New York Times
Bill Gates and Mayor Michael R. Bloomberg announced on Wednesday that they will
spend $500 million to stop people around the world from smoking. The World
Health Organization estimates that tobacco will kill up to a billion people in
the 21st century, most of them in poor and middle-income countries. In an effort
to cut that number, Mr. Bloomberg’s foundation plans to commit $250 million over
four years on top of $125 million he announced two years ago. The Bill and
Melinda Gates Foundation is allocating $125 million over five years. The $500
million would be spent on a multipronged campaign — nicknamed Mpower — that Mr.
Bloomberg and Dr. Margaret Chan, director of the health organization, outlined
in February. It coordinates efforts by the Bloomberg Initiative to Reduce
Tobacco Use, the health organization, the World Lung Foundation, the Johns
Hopkins Bloomberg School of Public Health, the Centers for Disease Control and
Prevention Foundation and the Campaign for Tobacco-Free Kids. The campaign will
urge governments to sharply raise tobacco taxes, outlaw smoking in public
places, outlaw advertising to children and free giveaways of cigarettes, start
antismoking advertising campaigns and offer their citizens nicotine patches or
other help quitting.
Shifting Careers: Venture Financing With a Mission Beyond Profit
July 24, 2008, New York Times
Cities have long offered tax incentives to encourage companies to stay and
newcomers to relocate. But another option is gaining currency in old
manufacturing cities looking to prop up their struggling economies — homegrown
nonprofit groups that nurture new businesses from the ground up. One of the more
innovative of these groups is the five-year-old Jumpstart Inc., which provides
seed money to entrepreneurs with promising businesses in the Cleveland area.
Like a venture capital firm, Jumpstart identifies companies to invest in and
advises them on their next steps. But unlike a venture firm, Jumpstart relies on
charitable donations, many of them from the private sector, for its financing
and does not return a share of profits to those who provide the investment
dollars. The return comes as satisfaction for elevating a region’s economic
standing. Similar efforts at spurring economic development have been bubbling up
around the country, with varying degrees of government and private support, and
they are often the biggest source of early stage financing for technology
companies in their regions. They tend to be found where there is a steady supply
of innovation coming out of nearby research universities.
Looking For Equity
In Arts Financing
July 24, 2008, New York Times
In a proposal to New York City officials, a coalition of arts organizations
called the Cultural Equity Group asked for $15 million in the city budget that
would go to so-called culturally specific organizations, serving blacks,
Hispanics, Asian-Americans and American Indians. The money -- to be used for
things like programs and administrative support -- would be separate from
financing awarded by city agencies, like the Cultural Affairs Department. That
agency's grant panels do not use culturally specific criteria when awarding
money. Councilman Domenic M. Recchia Jr. of Brooklyn, chairman of the cultural
affairs committee, said he told the coalition there was no money for new
initiatives in the $59.1 billion city budget for the new fiscal year. Still, the
Cultural Equity Group's quest has reignited a lively debate in the arts world
about just what cultural equity means. At a recent meeting group members spoke
of the difficulty of luring minority board members from elite organizations,
securing bank loans in struggling neighborhoods and encouraging poor people to
donate money to support the arts.
A California financier emerges as one of the nation’s most prolific
philanthropists
July 23, 2008, Christian Science Monitor
Bernard Osher is a former banker who has a passion for the arts, fly-fishing,
and, in his eighth decade, is taking weekly piano lessons. He says the thing he
enjoys most about sharing his life’s earnings through the foundation he began in
1977 is the gratitude expressed by recipients. “Reading their letters is the
high point of each day,” he says. Mr. Osher has been called the “quiet
philanthropist,” a reference seemingly rooted in his New England background and
general lack of pretense.
New mutual fund has charitable approach
July 22, 2008, Patriot Ledger (Massachusetts)
While socially-responsible mutual funds have garnered their share of publicity,
Bill Davlin is offering investors a new way to align their money with their pet
causes. Last month, Davlin launched the Davlin Philanthropic Fund, a
Wayland-based mutual fund that will donate 0.5 percent of contributions to
charities selected by each investor. The Davlin fund’s anticipated expense ratio
is 1.65 percent, with the first 0.5 percent donated to charity. The fund also
will donate any additional management fees considered profit to the charities.
Charitable donations accrue daily and are deposited monthly into a nonprofit
foundation, which will transfer them to the recipients once a year. Investors
can select up to three individual charities or pick from one of 11 philanthropic
categories ranging from conservation to education. Unlike socially responsible
mutual funds, the Davlin fund has no restrictions on the types of companies it
invests in.
A
Portrait of Art As a Tax Deduction
July 22, 2008, Wall Street Journal
Jon and Mary Shirley used to give artwork by the likes of Jackson Pollock, Mark
Rothko and Alberto Giacometti to the Seattle Art Museum. No longer. A federal
crackdown on deductions for so-called fractional gifts of art has made donating
too onerous for them. Before, the Shirleys could donate small stakes in their
artwork to the museum over time and reap increasingly larger deductions as their
collectibles appreciated. But Congress changed the rules nearly two years ago,
capping those deductions. Museum directors say these restrictions -- which limit
tax breaks for givers -- have crimped donations of valuable collections. Now
lawmakers, under pressure from museums, are mulling easing some of the
restrictions. Sen. Charles Schumer (D., N.Y.) and Sen. Charles Grassley (R.,
Iowa) are working on a plan to once again allow partial-gift donors to take
ever-larger deductions as their artwork appreciates.
With No
Frills or Tuition, a College Draws Notice
July 21, 2008, New York Times
Berea College, founded 150 years ago to educate freed slaves and “poor white
mountaineers,” accepts only applicants from low-income families, and it charges
no tuition. “You can literally come to Berea with nothing but what you can
carry, and graduate debt free,” said Joseph P. Bagnoli Jr., the associate
provost for enrollment management. “We call it the best education money can’t
buy.” Actually, what buys that education is Berea’s $1.1 billion endowment,
which puts the college among the nation’s wealthiest. But unlike most
well-endowed colleges, Berea has no football team, coed dorms, hot tubs or
climbing walls. Instead, it has a no-frills budget, with food from the college
farm, handmade furniture from the college crafts workshops, and 10-hour-a-week
campus jobs for every student. Berea’s approach provides an unusual perspective
on the growing debate over whether the wealthiest universities are doing enough
for the public good to warrant their tax exemption, or simply hoarding money to
serve an elite few. As many elite universities scramble to recruit more
low-income students, Berea’s no-tuition model has attracted increasing
attention.
Nonprofits create foundations for success (Opinion)
July 21, 2008, Detroit News
In difficult times, it is easy to point to things that are going wrong. It is
really time to identify the efforts that have traction or are gaining traction
and figure out how to add to their momentum. During the last three years, the
dialogue in our region has turned to the critical need for cooperation,
collaboration and the hard job of transforming Detroit. While many in government
and business seek to lead change, I believe our strongest examples of true
leadership are in our foundation community. Here's a challenge for all
organizations. Attend a meeting with any of the major foundations in Detroit.
You'll start on time, follow a strong agenda, answer tough questions and walk
away knowing that the job will get done. How do you build momentum? Add your
personal energy to a collaborative effort going on between two or more
nonprofits or foundations that are making a difference. Maybe your efforts will
be another spark to accelerate positive change in the communities in which we
live.
Trust must be charity's new bottom line (Opinion)
July 20, 2008, Pittsburgh Tribune Review
Charitable giving in the United States exceeded $300 billion last year for the
first time, the Giving USA Foundation reported June 23. The estimated $306.39
billion in total contributions represented a 3.9 percent increase over 2006. The
outlook for this year remains cloudy, however. "Charities we surveyed have
concerns about 2008 for the economy and the stock market and the impact they
will have on giving," said Del Martin, Giving USA's chairperson. While Martin
and her colleagues should be mindful of the economy, the Giving USA Foundation
and other organizations concerned about the health of the nonprofit world need
to focus on another issue that could have far greater long-term impact on
charitable contributions: trust. Several prominent nonprofit organizations in
recent years have acted in ways that undermine public confidence. Greed,
mismanagement and in some cases outright dishonesty by officials of these
organizations have created doubts in the minds of many donors whether charitable
giving is the best way to use scarce resources. Eventually this growing unease
will exact a price. While the economy will recover, recovering lost trust could
prove a far more difficult matter.
Bill Would End FOIA Shield for Smithsonian; Sen. Grassley Says Goal Is Greater
Openness
July 19, 2008, Washington Post
A longtime critic of the Smithsonian Institution introduced legislation in the
U.S. Senate this week that would wipe out the national museum complex's
exemption from the Freedom of Information Act and the Sunshine Act. The
legislation, co-sponsored by Sen. Charles E. Grassley (R-Iowa), ranking member
of the Finance Committee, and Sen. Arlen Specter (Pa.), the top Republican on
the Judiciary Committee, would require the Smithsonian to hold meetings in
public and make records available to the public upon request. Grassley said the
legislation marks a major test for the Smithsonian's pledge of transparency and
the newly installed secretary, G. Wayne Clough. The Smithsonian's attorneys have
opposed applying FOIA to the institution. Spokeswoman Linda St. Thomas said,
"The Smithsonian's governance reforms have resulted in greater transparency and
accountability, and our FOIA policy is consistent with the approach taken by
organizations that report to Congress such as the Library of Congress."
Scam Highlights
Abuses In Charitable Write-Offs
July 16, 2008, Wall Street Journal
A recent criminal case involving wealthy donors, religious groups and secret
kickbacks of donations provides an object lesson in how not to give to charity.
The government contends that two men solicited millions of dollars in
contributions to charitable organizations by promising to secretly refund large
portions of those gifts -- typically 80% to 95% -- to donors, who would then
deduct the full amount of their original gifts on their tax returns. One of
those men and another individual recently pleaded guilty to participating, and
others accused of wrongdoing are scheduled to face trial later this year. The
government is targeting more than 100 donors as part of its continuing
investigation, says Daniel O'Brien, an assistant U.S. attorney in Los Angeles.
The Internal Revenue Service has been turning up the heat in recent years on
what officials consider to be abuses ranging from fabricating deductions to
making improper noncash gift valuations.
McCune Foundation extends suspension of new grants
July 16, 2008, Pittsburgh Tribune-Review
Battered by the plummeting value of National City Corp. stock, The McCune
Foundation is continuing its suspension of new grants through September. Henry
Beukema, executive director of the foundation, had announced that McCune, one of
the region's largest foundations, was not accepting new applications -- just
those already in the pipeline -- until June. According to the foundation's 2007
audit, one of its biggest investments is National City, which has been battered
along with many other banks by rising defaults on mortgages and other types of
loans. Nonprofit analysts say the extension of McCune's no-new-grants policy
could be a sign of the economic turmoil in the foundation world. Nationally, the
New York City-based Foundation Center reports that foundation giving rose about
10 percent in 2007 to $42.9 billion. But a survey by the center expects
"modestly positive" prospects for growth in 2008.
Gates
Foundation Awards $8 Million to Upgrade Computers in Public Libraries
July 16, 2008, Philanthropy News Digest
The Bill & Melinda Gates Foundation has announced $8.1 million in grants to
upgrade computer hardware in public libraries serving communities with high
concentrations of poverty and at risk of having outdated technology.
Rochester Women's Giving Circle Practices Hands-on Philanthropy
July 15, 2008, Democrat & Chronicle (Rochester, NY)
For the 33 women in the Rochester Women's Giving Circle, writing a check wasn't
enough. "All of us have made individual donations," says Alyce Van Patten of
Rochester, "but we were looking for a way to have a greater impact." "We are
working women," says Shirley King of Brighton. "And we worked hard for our
money. Most of us are also single mothers, and we wanted to make a difference in
the lives of women and girls." King retired as a training and development
manager for Mobil Chemical and, later, Mobil Oil. Van Patten worked as a
customer engagement manager for Xerox and later as manager of patient
satisfaction for Rochester General Hospital. Like other women in the circle,
they wanted to use their professional skills for charitable purposes and they
wanted to open doors for other women. The giving circle is a hands-on
philanthropic entity that is completely controlled by its donor/members. This is
the first giving circle in Rochester, although there are approximately 400
across the country. The Rochester Women's Giving Circle operates through the
Rochester Area Community Foundation, which provides support and administrative
help.
Rangel's Pet Cause Bears His Own Name
July 15, 2008, Washington Post
House Ways and Means Committee Chairman Charles B. Rangel is soliciting
donations from corporations with business interests before his panel, hoping to
raise $30 million for a new academic center that will house his papers when he
retires. The New York Democrat has penned letters on congressional stationery
and has sought meetings to ask for corporate and foundation contributions for
the Charles B. Rangel Center for Public Service at the City College of New York,
a project that caused controversy last year when he won a $1.9 million
congressional earmark to help start it. Republican critics dubbed the project
Rangel's "Monument to Me." Ethics experts and government watchdogs say it is
troubling that one of the nation's most powerful lawmakers would seek money from
businesses that have interests before the committee he leads. More generally,
many say it is a bad idea to name a facility after an incumbent politician who
might be tempted to channel public money to it rather than to more worthy
causes. The Rangel Center is the brainchild of Rangel and City College of New
York President Gregory H. Williams. It will offer scholarships, sponsor research
and house the college's new master-of-public-administration degree program.
Area nonprofits got millions from Anheuser-Busch
July 15, 2008, St. Louis Post-Dispatch
Nonprofits, which rely heavily on Anheuser-Busch's history of giving, are now
moving from the "what if" to "what now" question with the InBev buyout now
official. Those working for nonprofits said Monday that they have to get the
word to Belgium-based InBev sooner rather than later just how important
corporate giving is to St. Louis. Anheuser-Busch gave $13 million to charitable
causes in the St. Louis region last year. At least 70 local organizations got
money from A-B. Carlos Brito, the chief executive officer of InBev, has said his
company would maintain a St. Louis civic presence. Nonprofits keep diversifying
their donor lists so that if one large contributor goes away, the organization
is not devastated, said Lucie Springmeyer, interim executive director of Forest
Park Forever. And when a new company takes the helm, like InBev, it's important
for a nonprofit to let leaders know early about its role -- and needs, she said.
David H. Koch to
Give $100 Million to Theater
July 10, 2008, New York Times
In years to come, when the oil-and-gas billionaire David H. Koch attends a gala
performance of New York City Ballet or City Opera at Lincoln Center, the
building he enters in black tie will bear his name. Mr. Koch, recently called
the wealthiest resident of New York City, has agreed to contribute $100 million
toward the renovation of the New York State Theater, which is home to the two
companies. His gift will be the largest private capital donation in Lincoln
Center’s history and a triumph in a period of growing economic uncertainty. His
donation is the lead gift in a $200 million capital campaign to enhance and
update the auditorium and audience amenities of the theater. With an estimated
net worth of $17 billion, Mr. Koch (pronounced coke) ranks 10th on Forbes’s list
of the nation’s wealthiest and 37th on its list of the world’s wealthiest.
Senate Panel Close
to Deal on Donations of Artwork
July 10, 2008, New York Times
Responding to pleas from museums, members of the Senate Finance Committee have
agreed in principle to loosen stringent limits on “partial gifts,” in which
collectors claim tax deductions for donating artwork in increments to museums
even though the art may remain in their living rooms. The practice was routine
among the art cognoscenti until almost two years ago, when Senator Charles E.
Grassley, the Iowa Republican who was then the committee’s chairman, inserted
provisions into the Pension Protection Act of 2006 that made partial gifts less
advantageous for donors. Museum officials say the new rules led to a sharp
decline in donations of art.
Sir
John M. Templeton, Philanthropist, Dies at 95
July 9, 2008, New York Times
Sir John M. Templeton, a Tennessee-born investor and philanthropist who amassed
a fortune in global stocks and gave away hundreds of millions of dollars to
foster understanding in what he called “spiritual realities,” died on Tuesday in
Nassau, the Bahamas, where he had lived for decades.
For-profit fundraisers collect huge sums on behalf of worthy causes, but
nonprofits see only a fraction of it
July 6, 2008, Los Angeles Times
For 24 years, Citizens Against Government Waste has exposed pork-barrel spenders
and rallied tax critics. But when it comes to policing its own fundraising
practices, America's self-proclaimed "#1 taxpayer watchdog" seems to have lost
its bite. Records filed with the California attorney general's office show that
over the last decade, for-profit fundraisers for the nonprofit kept more than 94
cents of every donated dollar. Yet donors could write off the full contribution
on their tax returns. A Times investigation found hundreds of other examples of
charities that pocketed just a sliver of what commercial fundraisers collected
in their names. Some didn't get a dime or even lost money.
Helmsley, Dogs’ Best
Friend, Left Them Billions
July 2, 2008, New York Times
Sure, the hotelier and real estate magnate Leona Helmsley left $12 million in
her will to her dog, Trouble. But that, it turns out, is nothing much compared
with what other dogs may receive from the charitable trust of Mrs. Helmsley, who
died last August. Her instructions, specified in a two-page “mission statement,”
are that the entire trust, valued at $5 billion to $8 billion and amounting to
virtually all her estate, be used for the care and welfare of dogs. It is by no
means clear, however, that all the money will go to dogs. Another provision of
the mission statement says Mrs. Helmsley’s trustees may use their discretion in
distributing the money. Still, longstanding laws favor adherence to a donor’s
intent, and the mission statement is the only clear expression of Mrs.
Helmsley’s charitable intentions. That will make the document difficult for her
trustees, as well as the probate court and state charity regulators, to ignore.
The trustees recently hired a philanthropic advisory service to help them figure
out a way to remain true to Mrs. Helmsley’s intentions while at the same time
pursuing broader charitable goals with her foundation.
Princeton U. Receives $100-Million Pledge to Stimulate Research to Prevent
Global Warming
July 1, 2008, Chronicle of Philanthropy
Gerhard R. Andlinger, an investment manager, has pledged $100-million to
Princeton University, in large part to stimulate research and education on
efforts to prevent global warming. University officials said that Mr. Andlinger
intends to pay off all of the pledge in about four or five years. He is the
founder and chairman of Andlinger & Company, an international investment and
management firm in Tarrytown, N.Y. Princeton’s School of Engineering and Applied
Science plans to use $70-million to create a center for the study of energy and
the environment, and to direct the remainder of the money toward engineering
research laboratories, the hiring of four new faculty members, and an endowment
to finance research projects that are too new to qualify for federal support.
Do nonprofits have to
pay big bucks for CEOs?
June 29, 2008, Charlotte Observer
Should nonprofit executives be paid as highly as their peers in the private
sector? Some Charlotte-area nonprofit leaders and consultants say no. That
question was raised last week when Charlotte's United Way board chairman
defended the pay package provided to the group's president, Gloria Pace King.
"Increasingly, our consultants tell us you can't look in the nonprofit sector in
isolation," Graham Denton told WCNC-TV, the Observer's news partner. He has also
said the agency must offer competitive compensation to attract and retain top
talent. Executive pay seems to have grown fastest in recent years among the
largest nonprofits, said John Hewett, a Charlotte-based consultant who advises
mostly faith-based and arts-related groups. He urged board members to consider
two things when determining pay: First, what will it cost to attract the right
talent? Second, how does a group pay that amount while keeping faith with both
the people who support the agency and the constituency the agency was granted
nonprofit status to serve.
Nebraska
Supreme Court rejects challenge in charitable foundation fight
June 27, 2008, Associated Press
The Nebraska Supreme Court has rejected the latest arguments in a 6-year-old
fight for control of one of Nebraska's oldest and most prestigious charitable
foundations. The Gilbert M. and Martha H. Hitchcock Foundation has $17.2 million
in assets. It was established in 1943 by Martha Hitchcock. Her husband, Gilbert
Hitchcock, was a U.S. senator and founder of the Omaha World-Herald newspaper.
Two factions of Omaha's Kountze family, which became connected by marriage with
the Hitchcock family generations ago, have been fighting over control of the
foundation since at least 2002. The two factions disagree about who would do the
best job managing the foundation's assets.
The New Super-Rich Start
Learning to Give Back
June 26, 2008, Jewish Exponent
It's standing room only at a workshop for Israelis on how to set up a family
foundation. Well-heeled participants listen attentively as an American
consultant to foundations such as the family foundations of Bill Gates and the
descendants of Levi Strauss offer tips. "What difference do you want to make in
the community?" asks Virginia Esposito, the founding president of the National
Center for Family Philanthropy. "Think about the causes you care about." As a
growing number of Israelis make their fortunes in high tech, real estate and
other business ventures, Israeli philanthropy is beginning to expand. It
represents the beginnings of a shift for a country that long has been the
beneficiary of philanthropy, much of it from Diaspora Jews, but has less
experience in the way of giving.
Alaska Passes Law Aimed at Increasing Charitable Giving
June 26, 2008, Chronicle of Philanthropy
Alaska has passed a new law aimed at bolstering philanthropic giving among state
residents. Starting next year, Alaskans can elect to donate to charity all or a
portion of the annual dividend check they receive from the nearly $38-billion
fund created to share the state’s oil wealth. The Rasmuson Foundation, in
Anchorage, is providing up to $900,000 to design and put into place the new
charitable-giving component of the dividend process through 2011.
A Hedge Fund and Its Nonprofit Twin
June 26, 2008, New York Times
Christopher Cooper-Hohn and his wife, Jamie, follow a simple economic formula:
he makes money, and she gives it away. Mr. Cooper-Hohn runs the Children’s
Investment Fund, or T.C.I., a successful — and controversial — hedge fund that
has become a gadfly to corporate giants like CSX, the American railroad. Ms.
Cooper-Hohn leads an affiliated charity, the Children’s Investment Fund
Foundation, which uses some of the profits that T.C.I. earns to finance programs
for underprivileged children. The partnership has made the Cooper-Hohns the most
generous philanthropists in Britain. The notion of treating charitable giving
like a business has been growing in recent years, as executives who have made
fortunes look to give them away. While T.C.I. isn’t the first hedge fund to give
donations with strings attached — calling for accountability — it has certainly
built the largest such hedge fund endowment.
A
Curmudgeon Leaves Millions to Poor Children of Panama, and the Battles Begin
June 25, 2008, New York Times
In life, Wilson C. Lucom was not exactly child friendly. The gruff octogenarian
never had children himself and was not especially close to the offspring of his
third wife, Hilda, either. When he opened his ample checkbook, friends say, it
was more likely to finance a conservative political cause than to help
underprivileged youths. But Mr. Lucom, a native of rural Pennsylvania who spent
much of his life in Palm Beach, Fla., surprised everyone in his will, which was
revealed upon his death two years ago at the age of 88. After doling out
relatively small portions of his tens of millions to survivors, he left the rest
to a foundation he had dreamed up in secrecy to aid the poor children of Panama,
where he spent the final years of his life. While the precise value is not
clear, it would be one of the largest, if not the largest, charitable donations
in Panama's history. The will has set off a vicious legal battle that is playing
out in at least four countries. Criminal charges have been filed, insults traded
and threats made. The number of law firms involved exceeds 20. The case is now
before Panama's Supreme Court.
Donations for Midwest Floods Reach $16.3-Million
June 25, 2008, Chronicle of Philanthropy
Charities have raised at least $16.3-million to help the victims of the recent
floods in the Midwest. The bulk of that figure comes from the American Red
Cross, in Washington, which has raised $13-million — about a third of what the
group estimates it will need for its efforts in the Midwest. The Red Cross has
depleted its disaster-relief fund and is now borrowing money to pay for to move
volunteers and supplies across the country to help with what spokesman Michael
Spencer calls “silent disasters.”
Foundation's Value Falls Sharply
June 25, 2008, Chronicle of Philanthropy
The value of the Huntsman Foundation fell sharply last week - more than $300
million, after an expected buyer for the Huntsman Corporation — whose stock is a
major financial base of the foundation — said it might not be able to complete
the deal. Huntsman shares fell to about $13 per share after that news was
released, less than half the expected buyout price of $28 per share. Last year,
Jon M. Huntsman Sr. and his wife, Karen, gave $700-million to their foundation,
including 21.7 million shares of stock in Huntsman Corporation, a chemicals
company that he has assembled over more than three decades. That gift put the
couple at No. 2 on The Chronicle’s annual list of America’s top donors.
Rockefeller 2.0: Gates
relaunches philanthropy
June 24, 2008, Contribute
As Gates formally leaves his day job at Microsoft next week to start work
full-time at his family foundation (“not to retire,” Gates says, but to “reorder
my priorities”), all eyes in the nation’s $300 billion philanthropy sector are
focused on the man that many in the field now call “the Rockefeller of our
time,” the 52-year-old ex-computer nerd-turned-richest man in America (after
Warren Buffett) — the guy who helped spawn the last century’s personal computer
revolution and who now, with the same brainiac zeal, wants to make social
problem-solving profitable, too. But unlike Rockefeller, Gates epitomizes a new
and expanding global class of people that didn’t exist at the turn of the last
century — a young, impatient new group of entrepreneurial, first-generation
millionaires and billionaires in established and emerging economies around the
globe who see as their personal mission the goal of changing the world in large
and measurable ways during their lifetimes.
Gates
Foundation follows new paths
June 24, 2008, Seattle Post-Intelligencer
With Warren Buffett's decision in 2006 to donate most of his wealth to the Gates
Foundation, its endowment will effectively double. The full brunt of that
obligation kicks in next year and means the foundation will have to give away at
least $3 billion annually to avoid tax penalties. "It's harder than you think to
effectively give away money," observed Patty Stonesifer, the foundation's
outgoing chief executive. "It's easy to give money away. But it's not easy to
give it away well."
Pressed by legislator,
nonprofit foundations agree to invest in minority-led organizations
June 24, 2008, Sacramento Bee
Faced with legislation that would require them to disclose their ethnic
composition and detail grants awarded to minority organizations, 10 of
California's largest foundations agreed Monday to a multimillion-dollar,
multiyear investment in minority communities. In return, Assemblyman Joe Coto,
D-San Jose, dropped a bill that opponents said was an effort to impose racial
diversity on charities and threatened to drive donors out of California. The
foundations -- including the William and Flora Hewlett Foundation, the Ahmanson
Foundation and the California Endowment -- said in a joint statement that
nonprofits play a critical role in addressing the challenges facing minority and
low-income communities. The foundations reaffirmed their commitment to help
minority organizations compete for grants and said they would issue annual
reports about their efforts. The deal was announced at a meeting of the Senate
Committee on Business, Professions and Economic Development, which was scheduled
to vote on Coto's Assembly Bill 624.
Bill Gates Waxes Philanthropic At Microsoft 'Exit Interview'
June 23, 2008, InformationWeek
Despite retiring from his full-time duties at week's end, Microsoft chairman
Bill Gates said he doesn't expect to have a lot of free time on his hands in the
months and years ahead -- mostly because his schedule will be filled by
philanthropic efforts championed by his Bill & Melinda Gates Foundation.
Philanthropist Giving Millions to Two Schools of Journalism
June 23, 2008, New York Times
Leonard Tow is betting $8 million that universities can figure out the future of
newspapers. The philanthropist plans to announce on Monday, along with the
universities, that his Tow Foundation has pledged $5 million to the Columbia
University’s Graduate School of Journalism, and $3 million to the City
University of New York’s Graduate School of Journalism. The funds are meant for
examining how the troubled newspaper business can succeed online, and in
training journalism students in new media. “I’m really worried about the
print-journalism side of the business,” said Mr. Tow, 80. “There’s so much
contraction of employment going on; every day you pick up the paper and this
chain or that chain has laid off another 10 percent, and we’re watching
advertising support slowly disintegrate. It seemed to me the appropriate time to
at least plant the seeds for a kind of new integrity in Internet journalism,”
Mr. Tow said.
Ruthless Philanthropy
June 23, 2008, Forbes
Ask Bill Gates what advice he'd offer the next U.S. president to improve
American competitiveness and innovation, and he gives a wry chuckle. "I tend to
think more about improving the entire world as opposed to relative positions,"
he told Forbes.com. "Otherwise you could say, 'Hey, World War II was great
because the U.S. was in its strongest relative position when that was over.' "
That kind of a quip is vintage Gates--analytically, if not politically, correct.
It's also an indication that the traits that brought him success in business are
the same ones he will bring to philanthropy. So what have we seen him do in the
past? If you ask his competitors, Gates has been known for the ruthless
annihilation of adversaries-and a tendency to declare victory perhaps a bit
early.
Entrepreneur, Inventor, Industrialist and Philanthropist Eric T. Nord Passes
Away
June 20, 2008, Fox Business
Eric T. Nord, co-founder of Nordson Corporation, passed away on June 19, 2008.
He was 90. Eric Nord's business acumen was paralleled by a lifetime of personal
philanthropy involving multiple non-profit organizations and causes. Mr. Nord,
with his family, was also catalytic in creating four remarkable philanthropic
resources: the Nord Family Foundation, Nordson Corporation and its Foundation,
the Eric and Jane Nord Foundation, and the Community Foundation of Greater
Lorain County. Eric's philanthropic vision was behind more than $100 million of
support for charitable and educational causes, particularly in northern Ohio.
"Eric Nord was an extraordinarily talented business leader as well as a generous
and community-minded individual," said Edward P. Campbell, chairman and chief
executive officer. "His legacy lives through the continuing success of Nordson
Corporation. The impact of his vision, leadership and philanthropy will continue
to be felt for many generations to come."
Fight to halt move of Barnes Foundation ends
June 18, 2008, Philadelphia Inquirer
The court fight over moving the Barnes Foundation's $5 billion art collection
from Lower Merion Township to Philadelphia has ended. Along with Montgomery
County government, the citizens' group Friends of the Barnes Foundation was
fighting to keep one of the world's premier collections of Impressionist art
from moving to Philadelphia despite what Albert C. Barnes ordered in his will
before he died in 1951.
Millions for
Foreclosures
June 18, 2008, Wall Street Journal
Congress and the states are looking at spending what could be billions of
dollars on efforts to buy and revamp foreclosed properties. By the time the
money is available, they could have models for how to do so, thanks to grants
from a group of wealthy philanthropies. The Living Cities Consortium, including
the Ford Foundation, the Kresge Foundation, the Annie E. Casey Foundation and
Deutsche Bank AG announced a plan to provide up to $10 million in grants and
low-interest loans to state and local programs addressing rising foreclosures.
The first grants, of up to $500,000 apiece, will go to programs in eight cities
with a variety of housing markets, from Cleveland to New York.
Red Cross Disaster Fund Is Depleted
June 17, 2008, Washington Post
The American Red Cross said yesterday that it has depleted its national disaster
relief fund and is taking out loans to pay for shelters, food and other relief
services across seven Midwestern states battered by floods. Officials at the
charity estimated that efforts in the Midwest will cost more than $15 million
and warned that the total could surpass $40 million if the Mississippi River
creates floods in St. Louis later this week. On the cusp of hurricane season,
Red Cross executives said the charity has raised just $3.2 million for the
Midwest floods and painted a dire picture of its overall disaster relief
finances. They said many donors are giving less because of rising gasoline and
food prices and the collapse of the housing market.
Pew's Mission to Lower Nonprofits' Office Rent
June 16, 2008, Washington Post
Pew Charitable Trusts, one of the largest nonprofit organizations in the nation,
has acquired the 10-story office building at 901 E St. NW, just across the
street from the J. Edgar Hoover Building. The 265,000-square-foot space will
serve as the group's new Washington headquarters with a twist: Pew plans to
lease 90 percent of the building to other nonprofit groups, at 10 to 15 percent
below market rates
AGRA Launches Partnership With Millennium Challenge Corporation to Tackle
Poverty, Hunger in Africa
June 16, 2008, Philanthropy News Digest
The Alliance for a Green Revolution (AGRA) — a collaboration between the
Rockefeller and Bill & Melinda Gates foundations — has announced a new
partnership with the U.S. government's Millennium Challenge Corporation (MCC) to
help African countries tackle poverty and hunger through productivity
improvements at small-scale farms and poor rural households.
Stewart R.
Mott, Longtime Patron of Liberal and Offbeat Causes, Dies at 70
June 15, 2008, New York Times
Stewart R. Mott, a philanthropist whose gifts to progressive and sometimes
offbeat causes were often upstaged by his eccentricities died.
IRS Urged to
Use Caution in Stomping Out Wrongdoing by Charity Boards
June 13, 2008, Chronicle of Philanthropy
A committee of nonprofit experts that advises the Internal Revenue Service is
urging the tax agency to be cautious in its stepped-up efforts to promote good
governance by charities. Such efforts “are fraught with complexity,” said the
Advisory Committee on Tax Exempt and Government Entities in a 112-page report.
The IRS’s new version of its Form 990 informational tax return, the primary
document charities file each year, includes a series of questions about
nonprofit organizations’ governance policies and practices, even though the
federal tax code does not explicitly set out specific governance standards for
the revenue service to enforce.
Bloomberg to Give Out $60 Million
June 13, 2008, New York Times
Mayor Michael R. Bloomberg is funneling another enormous set of ostensibly
anonymous grants to hundreds of arts and social services groups through the
Carnegie Corporation, spreading them over the next two years as he begins
establishing his own philanthropic foundation. The grants, announced on Thursday
by the Carnegie Corporation, total more than $60 million for 542 organizations,
from small neighborhood groups to some of the city’s most venerable cultural
institutions.
Profits in
Hand, Wealthy Family Cuts Tobacco Tie
June 11, 2008, New York Times
Forty years ago, the New York business magnates Laurence A. Tisch and Preston
Robert Tisch capitalized on growing public health concerns over smoking by
buying a cigarette company at a bargain price. Now, the next generation of
Tisches has removed tobacco from the portfolio of the conglomerate they lead,
the Loews Corporation, spinning off its tobacco unit, Lorillard, as a
stand-alone business, with the Newport brand representing more than 90 percent
of the new company’s revenue. Separating tobacco from Loews is a timely step for
the socially and philanthropically prominent Tisch family, as Newport menthol
cigarettes have lately been criticized by black antismoking advocates and
others.
Foundation Creates Prize for Social-Service 'Superstars'
June 10, 2008, Chronicle of Philanthropy
A former charity employee turned software entrepreneur has started a foundation
to recognize talented social-service workers and goad nonprofit groups into more
effectively measuring their employees’ performance. The Superstar Foundation,
started by Steve Butz, plans to give $20,000 over the next two years to 10
outstanding social-service workers. The Baltimore foundation hopes to raise more
money, eventually creating a $10-million endowment that would allow it to give
away 40 to 50 awards totaling between $400,000 and $500,000 each year.
Bad Times, Good Deeds
June 10, 2008, Forbes
Executives tempted to cut back on their corporate philanthropy in a slowing
economy should think again. The long-term reputational benefits outweigh the
short-term costs of sustaining their levels of giving even when profit and
earnings growth slows, according the Committee Encouraging Corporate
Philanthropy (CEPC).
Jewish teen group earns 'A' in philanthropy
June 8, 2008, San Francisco Chronicle
A merry-go-round-powered water pump for African schoolchildren and classrooms
for youngsters who beg on
the train platforms in India are among the projects that will share $204,000
raised this academic year by
Bay Area teenagers. The youth philanthropists, members of the Jewish Community
Teen Foundation, will give the money away today in four separate ceremonies led
by the Jewish Community Endowment Fund. It's the fifth year of the program, and
each year the high schoolers raise more for charity, putting them among rising
grantmakers in the Bay Area.
Virginia Supreme Court Rules for Randolph College Over Its Move to Coeducation
June 6, 2008, Chronicle of Higher Education
The Supreme Court of Virginia ruled this morning in favor of Randolph College in
two cases brought by students and donors upset at the institution’s decision to
start admitting men. The court upheld the Lynchburg Circuit Court, which had
dismissed both lawsuits against the college, formerly Randolph-Macon Woman’s
College.
U.S. Charities Raise More Than $70-Million for Asian Disasters
June 3, 2008, Chronicle of Philanthropy
American relief groups have raised more than $72-million to help victims of the
cyclone that struck Myanmar and the earthquake in China last month. Donors have
given just over $32-million for each disaster and more than $7-million that can
go toward either one. While giving has slowed considerably over the past week,
some groups say that donors are still responding to their requests for help.
Perot family members give $50 million to planned Dallas science museum
May 31, 2008, Dallas Morning News
Ross Perot Jr. conceded the point: It's hardly the best of times for the
national economy. But, he added, charitable giving in Dallas has never been more
robust. He and his sisters then added their own punctuation, giving $50 million
Friday to the Museum of Nature & Science.
Gala Auction
Feels a Chill From Wall Street’s Slump
May 29, 2008, New York Times
Giving away $56.5 million in a night would strike most people as extravagant.
But to the tycoons of modern finance, it seems a bit low key. At the 2008 Robin
Hood Foundation benefit this week, auctiongoers donated that much money to
charity. But many of the market wizards are making less these days — and they
are giving away less, too. Robin Hood’s haul was down 21 percent from last year.
New IRS Rules
Help Donors Vet Charities
May 29, 2008, Wall Street Journal
Americans searching for the best places to make charitable donations are about
to get more help from the
federal government. The Internal Revenue Service, the tax agency that serves as
the main regulator of nonprofits, is ramping up efforts to increase charities'
transparency as donors clamor for better tools to evaluate how their money is
spent. The first tangible signs of reform are happening now, as charities'
annual tax form -- known as Form 990 -- gets a makeover for the first time in
nearly 20 years. The changes promise to provide potential donors with a
standardized, one-stop shop for information on charities amid a sea of varied
nonprofit watchdog Web sites. Charities begin using the new form next year, when
they report their 2008 information.
Causes Reports On Its First Year - $2.5 Million For 20,000 Charities And
NonProfits
May 29, 2008, Washington Post
Causes, a Facebook and MySpace application that promotes viral donations of time
and money to charities and nonprofits, launched a year ago. They've now released
statistics today on their usage and donation numbers for that first year. The
company says they've registered 12 million users who are now supporting more
than 80,000 non-profit causes worldwide. $2.5 million has been raised for 19,445
different 501(c)(3) charitable organizations. Facebook reports 60,000 daily
users of the application, and MySpace reports 25,000.
U.S. Firms Come to China's Aid
May 28, 2008, Washington Post
U.S. companies have pledged at least $54 million in cash, goods and services to
victims of the earthquake that devastated the Sichuan province of China two
weeks ago, the third-largest international aid package ever assembled by
American businesses.
$100-Million in Aid Pledged for Girls in Poor Countries
May 27, 2008, Chronicle of Philanthropy
Charities that seek to promote the well-being of adolescent girls in developing
countries are poised to receive an infusion of money, thanks to a new
partnership between the Nike Foundation and the NoVo Foundation, which is run by
Peter Buffett and his wife, Jennifer. The two grant makers will contribute
$100-million through 2011 to organizations that work with girls and young women
in poor countries.
U.S. Medical Research Gets $600 Million From Institute
May 27, 2008, Washington Post
One of the world's largest private philanthropies today announced a $600 million
initiative to fund risky but potentially lifesaving medical research by 56 of
America's top scientists. The Howard Hughes Medical Institute is expanding its
flagship investigators program to nurture a new class of scientists. By endowing
scientists' research over many years, the institute hopes they will make major
discoveries in a variety of fields, including genetics and biology.
Industrialist funds major awards to spark scientific research
May 27, 2008, Los Angeles Times
Retired industrialist Fred Kavli is launching what he hopes will be the 21st
century's equivalent to the Nobel Prizes. In the process, he's looking to spark
a renaissance in basic research in nanoscience, astrophysics and neuroscience,
three scientific fields he believes will most help the human race in the future.
Scientists and others say Kavli is unique in having a vision to fund exploratory
research unlikely to yield quick results, a personal fortune in the neighborhood
of $600 million to finance it, and the entrepreneurial skills to make it happen.
Congress Extends Tax Break for Land Gifts
May 23, 2008, Chronicle of Philanthropy
Nonprofit organizations have won an extension of a generous tax incentive for
donations of land or historically important property under a law approved by
Congress Thursday. A two-year extension of the so-called conservation
easement deduction was included in a bill to protect farmers, which became law
Thursday over President Bush’s veto.
American Charities Raise $58-Million for Asian Disasters
May 23, 2008, Chronicle of Philanthropy
American relief groups have raised more than $58-million for victims of the
cyclone that struck Myanmar and the earthquake in China earlier this month. The
charities say about $27-million has been donated for the earthquake victims and
$25-million for cyclone relief. They have also raised about $6-million
that could be directed toward either disaster.
T. Boone Pickens Donates $100-Million to Oklahoma State U.
May 21, 2008, Chronicle of Philanthropy
As oil prices rise to historic heights, the billionaire oilman T. Boone Pickens
is sharing some of the wealth with Oklahoma State University, his alma mater. A
day after Mr. Pickens, the founder and chairman of BP Capital Management, made
news for predicting on CNBC that the price of crude oil would break the
$150-a-barrel mark this year (it closed at a record $129 a barrel on Tuesday),
Oklahoma State announced that Mr. Pickens was donating $100-million for endowed
chairs and professorships at the institution.
Jealous to become NAACP's new president, CEO
May 17, 2008, Baltimore Sun
A 35-year-old human rights activist with family ties to Baltimore will become
the NAACP's new president and chief executive officer, the board of the nation's
oldest civil rights organization voted early this morning. Benjamin Todd
Jealous, a graduate of Columbia University and a Rhodes Scholar, will become the
youngest national leader in the 99-year history of the National Association for
the Advancement of Colored People.
Major Restructuring of U.S. Foreign-Aid Policies Needed, Speakers Say
May 15, 2008, Chronicle of Philanthropy
Many speakers at the annual meeting of InterAction, held here last week, said
the United States was in dire need of a fundamental restructuring of how it
delivers aid overseas. “Our top development professionals know that
sandals on the ground today can prevent boots on the ground tomorrow,” said Rep.
Betty McCollum, a Democratic Congresswoman from Minnesota. “But our Cold War-era
tools are not up to the challenge.” InterAction is a coalition of more
than 160 charities devoted to providing humanitarian aid and fighting poverty.
Aid Groups Pleased With Response to Myanmar and China Crises
May 14, 2008, Chronicle of Philanthropy
Donations to help victims of the Myanmar cyclone continued to mount on
Wednesday, even as charities faced enormous hurdles in bringing aid to the
country. More than $8-million has been pledged so far to some of the biggest aid
organizations in the United States.
IRS Denies Tax-Exempt Status to Group That Spends Too Little Money on Charitable
Programs
May 13, 2008, Chronicle of Philanthropy
In a ruling that could have implications for many charities, the Internal
Revenue Service has denied a tax exemption to an organization in part because
the group did not spend enough of its money on charitable programs. This
is the first public sign that the revenue service is measuring how much
charities spend by using a controversial approach that the government has
recently decided to apply.
Gates Foundation Picks Microsoft Veteran as New CEO
May 12, 2008, Chronicle of Philanthropy
The Bill & Melinda Gates Foundation on Monday tapped Jeffrey S. Raikes, a
Microsoft executive, to lead the world’s largest foundation as it embarks on a
period of rapid growth and grapples with criticism of its growing influence. Mr.
Raikes, a 27-year veteran of Microsoft, will replace Patty Stonesifer, who has
headed the foundation since it started 11 years ago. “I’m absolutely thrilled to
be joining the Gates Foundation,” Mr. Raikes said on Monday. “This is truly a
dream job.”
Aid Groups Raise Money in Anticipation of Major Relief Efforts for Cyclone
Victims
May 8, 2008, Chronicle of Philanthropy
A growing number of charities have sent supplies to Southeast Asia to help
victims of the recent cyclone in Myanmar, but many aid workers continued to
express concern that red tape and foot-dragging on the part of government
officials were delaying their ability to provide assistance. “It’s frustrating
not to be able to respond immediately and provide on-the-ground assistance,”
said Rabih Torbay, vice president of international operations with the
International Medical Corps.
Lawmakers target $1b endowments
May 8, 2008, Boston Globe
Massachusetts lawmakers desperate for additional revenue are eyeing the
endowments of deep-pocketed private colleges to bolster the state's coffers by
more than $1 billion a year, asserting that the schools' rising fortunes
undercut their nonprofit status. Legislators have asked state finance officials
to study a plan that would impose a 2.5 percent annual assessment on colleges
with endowments over $1 billion, an amount now exceeded by nine Massachusetts
institutions. The idea has prompted a range of questions, including
whether it is legal to infringe upon private colleges' tax-exempt status or
single them out based on their wealth. It also faces significant opposition from
the colleges and some skeptical lawmakers.
Philanthropist Claude Rosenberg of San Francisco dies
May 7, 2008, San Francisco Chronicle
Money manager and philanthropist Claude Rosenberg of San Francisco died after a
long struggle with Alzheimer's disease. He was 80. Mr. Rosenberg was one of the
city's leading investment executives during the 1970s through 1990s. The firm he
founded, Rosenberg Capital Management, built a reputation for the quality of its
research. After the firm's sale to Germany's Dresdner Bank in 1995, he retired
and began a second career aimed at giving away most of his money while trying to
persuade other wealthy individuals to be more generous. In 1998, he founded the
NewTithing Group, a San Francisco nonprofit that, among other activities,
produced an online calculator to help determine how much people could afford to
donate to charity.
A Challenge
Getting Relief to Myanmar’s Remote Areas
May 7, 2008, New York Times
International aid agencies began distributing food in Myanmar’s commercial
capital and main city, Yangon, on Tuesday but there was uncertainty that the
assistance would reach people stranded without shelter in the remoter reaches of
the country’s vast Irrawaddy Delta. Bad roads, a lack of cooperation from the
country’s military government and a breakdown in telecommunications are factors
that could hamper relief efforts as aid agencies begin to assess the damage to
the densely populated delta, which appears to have borne the brunt of Saturday’s
cyclone.
Conference Notebook
May 7, 2008, Chronicle of Philanthropy
The Chronicle of Philanthropy reviews the Council on Foundations' recent
Philanthropy Summit. Click above for recaps of keynotes and plenary
addresses.
Cyclone Disaster Presents Massive Challenges to Aid Organizations
May 6, 2008, Chronicle of Philanthropy
Aid groups are beginning to respond to the devastation wrought by the cyclone
that hit Mynamar three days ago. Approximately 22,500 people are believed to
have been killed and another 44,000 are still missing, but charities say they
are fearful that the death toll could climb much higher. “This is going to
require an enormous effort to avoid a second wave of death from the lack of
clean water, shelter, and basic sanitation and health facilities,” said Mike
Kiernan, a spokesman for Save the Children, in Westport, Conn., which has worked
in the country for 13 years.
Payday
Lender Presses Charity to End Support for Tighter Rules
May 1, 2008, Wall Street Journal
Rent-A-Center Inc., a rising power in the payday-loan industry, pressured an
Ohio food-bank association into quitting a coalition of activists that advocates
a crackdown on the business. In a series of telephone calls in recent
weeks, Rent-A-Center executives warned America's Second Harvest and its Ohio
affiliates that Rent-A-Center would yank charitable contributions from hunger
programs in the state unless the local food banks withdrew from the Ohio
Coalition for Responsible Lending.
Montana Museum
Board Breached Duty, Court Says
April 30, 2008, New York Times
The Montana Supreme Court dismissed on Tuesday the board of the Charles M. Bair
Family Museum in Martinsdale, Mont., saying it breached its fiduciary duties by
closing the museum from 2002 to 2005. The court said the board had not
spent enough money to give a good start to the museum — home to an eclectic
collection of fine European antiques, valuable art works and priceless Indian
artifacts. It ordered U.S. Bank, the trustee, to create a new board that has to
meet within six months. The case has been widely watched in the nonprofit
world and among state regulators of charities. The regulators are often
responsible for interpreting and defending donors’ intentions long after their
deaths and in the face of strong opposition from powerful boards. Thirteen
states filed amicus briefs in support of the Montana attorney general.
Rockefellers want Exxon to divide chairman, CEO jobs
April 28, 2008, Dallas Morning News
Members of the Rockefeller family want Exxon Mobil Corp. to split the chairman
and chief executive jobs, lending a powerful name to a long-standing debate
among investors. Members of the family that founded Exxon's predecessor company,
Standard Oil, will hold a news conference Wednesday to explain their concerns.
The Rockefellers are no longer among Exxon's top shareholders, and a spokesman
said the family members are calculating the size of their stake.
Lawyers Fear
Monitoring in Cases on Terrorism
April 28, 2008, New York Times
Across the country, lawyers who represent suspects in terrorism-related
investigations complain that their ability to do their jobs is being hindered by
the suspicion that the government is listening in, using the eavesdropping
authority it obtained — or granted itself — after the Sept. 11 terrorist
attacks. The Justice Department does not deny that the government has monitored
phone calls and e-mail exchanges between lawyers and their clients as part of
its terrorism investigations in the United States and overseas. But in
cautiously worded court statements, the department says that if there has been
surveillance of lawyers involved in terrorism cases, it has been handled in
strict accordance with federal law and with the Constitution’s promise of a
criminal defendant’s right to counsel.
Venture capitalist Gordon Gund funds research
April 27, 2008, Chronicle of Philanthropy
Months after a mysterious disease stole the last vestiges of his sight, at age
31, venture capitalist Gordon Gund helped create the Foundation Fighting
Blindness. Since its creation in 1971, the nonprofit has raised more than
$300 million for research and education on the subject of retinal disease,
including $2.9 million for the trial at Children's Hospital.
Rockefeller Gives Harvard $100 Million
April 25, 2008, New York Times
David M. Rockefeller is giving $100 million to Harvard University, his alma
mater. It is the largest gift by an alumnus in the university’s history. Eli and
Edythe Broad made a $100 million gift to the university in 2005, but they are
not alumni. The Rockefeller gift will support international study programs for
undergraduates and support Harvard’s nascent efforts to greatly expand its arts
education. “Harvard has played an important role in my life,” Mr. Rockefeller,
92, said in a telephone interview. “I was a student, class of 1936, and I’ve
been on the board of overseers. My experiences there shaped who I am.”
Old Baltimore family vows investment in city's future
April 24, 2008, Baltimore Sun
Carey Street, named after 18th-century port merchant, councilman and Quaker
abolitionist James Carey, runs through some of the most challenged neighborhoods
of West Baltimore. A mile and a half east in the downtown commercial
district stands the gleaming Johns Hopkins Carey Business School, which is
celebrating this week the inauguration of its first dean, thanks to a $50
million gift in 2006 from William Polk Carey, the merchant's
great-great-great-grandson. The New Yorker's commitment to his hometown
and family legacy does not end there. The 77-year-old real estate financier said
yesterday that he wants to help restore the city to the commercial glory his
forebears knew and intends a major bequest that could permanently ensure that
the Carey name is once more associated with Baltimore's economic revival.
A private man, Carey prefers not to discuss his personal wealth, but he owns
about 30 percent of the W.P. Carey & Co. investment firm, which has a market
value of roughly $1.2 billion.
Couple Gives $25M To Children's Hospital
April 17, 2008, Washington Post
A Washington couple has made a generous donation to advance pediatric health
care in the region, giving $25 million to fund diabetes and obesity research and
a host of other initiatives at Children's National Medical Center, the hospital
announced yesterday. Seven years after giving $25 million to the hospital in
Northwest Washington, longtime supporters Diana and Stephen Goldberg donated
another $25 million. Taken together, the gifts are the largest in the history of
Children's Hospital, and hospital executives said they are among the biggest
donations ever to an American pediatric hospital.
Levine good example of a donor gone bad
April 17, 2008, Chicago Tribune
When the Lincoln Park Zoo took down a plaque this month honoring the Stuart
Levine family's contributions to its polar bear exhibit, officials said it was
because Levine had failed to follow through on pledges. But the timing was
noteworthy: Levine was making headlines for court testimony about his drug use
and kickback plotting in the Tony Rezko corruption trial. The zoo said Levine's
testimony had no connection to the plaque's removal. But the situation
represents two awkward situations that many charities and colleges have found
themselves in: How do you handle a donor who doesn't pay, and what do you do
when a donor's good name—already etched onto a wall or building—goes bad.
Amazon activists win Goldman Environmental Prize
April 13, 2008, Los Angeles Times
Two Ecuadoreans who have waged a 14-year fight to bring a U.S. energy giant to
account for what they allege is massive oil contamination in the Amazon are
among the winners of an international environmental prize. Pablo Fajardo
Mendoza and Luis Yanza each will receive $150,000 today from the San
Francisco-based Goldman Environmental Prize for organizing half a dozen
indigenous communities to pursue legal action against Texaco and then Chevron
Corp. after the two companies merged in 2001. Fajardo, 36, and Yanza, 46,
have tried "to bring justice and environmental recovery to an area devastated by
oil pollution," according to a statement issued Saturday by the Goldman Prize
organizers.
MOCA gets part of nationwide windfall
April 11, 2008, Los Angeles Times
The Museum of Contemporary Art in Los Angeles will receive 50 artworks as part
of a nationwide bonanza of donations from New York collectors Dorothy and
Herbert Vogel. As one of the first 10 recipients in a three-phase gift program
to be announced today, MOCA will enrich its collection with pieces by 21
artists, including Richard Tuttle, Lynda Benglis, Dan Graham and Carl Andre.
The Vogels are well known in the art world as passionate and dedicated
collectors who have amassed a vast trove of contemporary art on a surprisingly
low budget. They began collecting in the late 1960s, living on Herbert's salary
as a U.S. Postal Service employee and purchasing art with Dorothy's earnings as
a reference librarian at the Brooklyn Public Library.
Eight Charities Win MacArthur Prizes for Creativity and Effectiveness
April 9, 2008, Chronicle of Philanthropy
Nonprofit groups that promote human rights in Russia, protect the environment in
Madagascar, and improve public radio in the United States are among the winners
of a foundation prize recognizing the contributions of small, adept
organizations around the world. Eight nonprofit groups — three in the
United States and five abroad — will each receive up to $500,000 from the John
D. and Catherine T. MacArthur Foundation, in Chicago, as this year’s winners of
the
MacArthur Award for Creative and Effective Institutions.
$272-Million Bequest to Benefit Two Universities
April 9, 2008, Chronicle of Philanthropy
Tufts and Lesley Universities are sharing a $272-million gift from trusts
established by the late Frank C. Doble, a businessman and Tufts alumnus, the
universities plan to announce today. Each institution’s $136-million share of
two dissolved trusts will be the largest gift in its history.
IRS Releases Instructions for Charity Tax Form
April 8, 2008, Chronicle of Philanthropy
The Internal Revenue Service has posted the draft instructions for the new Form
990, the primary tax document that charities file each year with the government.
The instructions, which are available on the tax agency’s
Web site,
correspond with the redesigned Form 990, which takes effect for the 2008 tax
year. The redesign is the first major overhaul of the form in 25 years.
Woodruff Foundation gives $200M to Grady
April 7, 2008, Atlanta Journal-Constitution
The Woodruff Foundation was identified Monday as the source of a $200 million
grant to Grady Memorial Hospital. The donor had remained "anonymous" since last
year when the Metro Atlanta Chamber of Commerce first recommended the management
transfer and held out the carrot of the huge donation. But speculation had long
focused on Woodruff.
Homebuilder Wieland pulls back on $5M gift to Emory
April 7, 2008, Atlanta Journal-Constitution
The home sales slump has knocked John Wieland's name off a new ethics center at
Emory University. Atlanta homebuilder John Wieland said Monday he has "put on
hold" the balance of a $5 million pledge made in 2006 to build the center after
contributing an initial "seven-figure" portion of his gift. He would not say
exactly how much was owed. "The pledge included the possibility of
recision in case something terrible happened in the homebuilding business, and,
obviously, something terrible has happened in the homebuilding business,"
Wieland said.
Fisk to Appeal Order on Art Collection
April 3, 2008, Associated Press
Fisk University said Thursday it will appeal a judge's order to display an art
collection donated to it by painter Georgia O'Keeffe. The school said in a news
release that the order threatens the safekeeping of the collection. In March,
Nashville Chancellor Ellen Hobbs Lyle permanently banned any sale of the
101-piece collection and set an October deadline for Fisk to retrieve the
artwork from storage and put it on display. The Georgia O'Keeffe Museum in New
Mexico had sued to gain the rights over the collection because of the school's
attempts to sell paintings and because they weren't currently on display. The
Santa Fe museum is the legal representative of the late artist's estate.
Ted Turner Announces $200-Million Anti-Malaria Effort
April 2, 2008, Chronicle of Philanthropy
The broadcasting tycoon Ted Turner announced yesterday a new partnership between
his United Nations Foundation and two religious organizations to fight malaria
in Africa. The effort, organized by the U.N. Foundation, the Bill & Melinda
Gates Foundation, Lutheran World Relief, and the United Methodist Church, aims
to raise $200-million to prevent deaths from the disease, which kills more than
1 million people each year.
Subprime mortgage crisis wallops regional charity
March 30, 2008, Pittsburgh Tribune-Review
Even though National City Corp. stock was tumbling, the McCune Foundation kept
its 4.8 million shares, hesitant to sell in part because of issues lingering
from a highly publicized power struggle with the bank 16 years ago, an official
said. That hesitation proved costly. Since last spring, National City stock has
lost nearly two-thirds of its value, and the foundation's bank stock took a $130
million hit, hampering its ability to help local nonprofit groups.
Delco trade school to get $45 million
March 25, 2008, Philadelphia Inquirer
The Williamson Free School of Mechanical Trades will receive two donations
totalling $45 million, students and faculty learned at a convocation held at the
Media campus' chapel this afternoon. The donors are two local philanthropic
couples with strong ties to area businesses - Henry M. and Lee Rowan and H.
FitzGerald "Gerry" and Marguerite Lenfest. The donation will go directly to the
school's endowment fund.
Case Foundation Announces 20 Finalists for Voting Awards
March 25, 2008, Chronicle of Philanthropy
Nine months after opening itself up to unsolicited applications for the first
time, the Case Foundation, in Washington, has announced 20 finalists for its
Make It Your Own awards, and it will now turn those groups over to a public vote
to decide which four of them should win $25,000 each.
Opponents of Barnes Foundation move urge judge to reopen case
March 25, 2008, Philadelphia Inquirer
It has been more than three years since a Montgomery County judge ruled that the
Barnes Foundation's $6 billion art collection could move to Philadelphia. But
opponents of the relocation yesterday implored the judge to reconsider his
decision, contending a variety of new developments make it financially possible
for the museum to stay in Merion.
Allen donates $5M in fight against TB
March 20, 2008, Seattle Times
Microsoft co-founder Paul Allen, whose charitable causes range from the history
of rock 'n' roll to the search for ET, is making his first foray into global
health research — a field dominated by his old friend Bill Gates.
The Paul G. Allen Family Foundation on Wednesday announced a $5 million grant to
Seattle Biomedical Research Institute (SBRI) to aid in the quest for new
tuberculosis drugs.
Donors Sue University Over $2-Million Pledge
March 20, 2008, Chronicle of Philanthropy
Donors to St. Bonaventure University, in New York, have sued the institution,
saying that they were not provided with information about how their $2-million
pledge for an addition to the school’s library was being spent. Paul and Irene Bogoni sued the institution in a New York State State court last month, alleging
that the costs of the project had risen above the budget they had agreed upon
with the university. Arthur Chagaris, a lawyer for the couple, said the
university had asked the couple for more money for the project, but had declined
to provide detailed information about the budget.
College students learn how to give
March 20, 2008, Cincinnati Enquirer
Thanks to Roger Grein, area college students are using real money to learn one
of life's great lessons: How to give away money. Through a program called Campus
Connect, Grein gives about $4,000 to classes at several area universities and
challenges them to find the best charity to use it. "They're finding it's not so
easy," said Judy Singleton, associate professor of sociology and social work at
the College of Mount St. Joseph. "It's just a whole new exposure to a field they
weren't really familiar with."
Whitney
Museum to Receive $131 Million Gift
March 19, 2008, New York Times
Leonard A. Lauder, the cosmetics executive and chairman of the Whitney Museum of
American Art, said on Tuesday that his art foundation would give the museum $131
million, the biggest donation in the Whitney’s 77-year history. The bulk of the
money — $125 million — will go toward the Whitney’s endowment, boosting it to
$195 million from $70 million, Mr. Lauder said in a telephone interview. The
Whitney called the gift one of the largest donations ever to a New York museum’s
endowment.
States' budget crises will hurt millions
March 17, 2008, Boston Globe
Financially strapped states are looking to take away government health insurance
and benefits from millions of Americans already struggling with a souring
economy. An Associated Press review of the budgets in all 50 states reveals
coverage would be eliminated for hundreds of thousands of poor children,
disabled and the elderly. More than 10 million people would lose dental care,
access to specialists, name-brand prescription drugs or other benefits. About 20
million could see their care jeopardized by further cuts to doctors'
reimbursements.
Weakness in
Economy Isn’t Hurting Charities
March 14, 2008, New York Times
Despite the economic downturn and fears of recession, major charities say their
fund-raising has not fallen off. In fact, some 64 percent of the organizations
that have responded so far to the Association of Fundraising Professionals’
annual survey on fund-raising have reported bringing in more money in 2007 than
the year before.
New Business-Charity Hybrid Sought
March 12, 2008, Chronicle of Philanthropy
As the lines between the nonprofit and for-profit worlds blur, social-enterprise
leaders continue to look for new legal structures that are better suited to such
blended activities than current designations. One proposed legal structure
discussed at the recent annual summit of the Social Enterprise Alliance - the
low-profit, limited liability company, or L3C — is designed to increase the
number of program-related investments, or PRI’s, that foundations make in
social-purpose businesses by making those enterprises easier to find. Proponents
hope that foundation investment in those ventures would, in turn, would spur an
influx of private capital.
Financier Pledges $100-Million to New York Public Library
March 11, 2008, Chronicle of Philanthropy
Stephen A. Schwarzman, a New York financier, is giving $100-million to the New
York Public Library, where he is a member of the library’s Board of Trustees.
The donation kicks off the library’s plan to raise a total of $1-billion in
private donations and government funds to renovate its flagship building on
Fifth Avenue, build two new libraries in Northern Manhattan and Staten Island,
expand the library’s online services, and shore up its endowment.
Stock Gifts
That Give Back
March 5, 2008, Wall Street Journal
Top executives often get plaudits -- and tax benefits -- for donating to
charities. But a new academic study and several specific cases suggest that some
may be getting an extra tax break because of uncannily well-timed gifts to their
own family foundations. The study looks at gifts of stock in their companies by
chief executive officers and chairmen. It finds that many donations to the
family foundations occur just before sharp drops in the companies' stock prices.
Foundations
Weigh How to Allay Foreclosures
February 28, 2008, Wall Street Journal
Some of the nation's wealthiest philanthropies are turning their attention to
the growing foreclosure crisis, which some fear could usher in the type of urban
blight that devastated pockets of American cities in the 1970s and 1980s. How to
tackle it isn't clear. "Every big funder is out there trying to figure out how
to participate in systemic responses," says George McCarthy, a senior program
officer with the Ford Foundation. The problem, he says, is that "no one can
figure out where the opportunity lies" and how philanthropic dollars can be
spent most effectively.
$50 million gift for NY hospital
February 28, 2008, Boston Globe
Revlon Inc. cosmetics magnate Ronald O. Perelman has donated $50 million to
enhance heart care and reproductive medicine research at a Manhattan hospital
and affiliated medical college. The gift to NewYork-Presbyterian Hospital and
Weill Cornell Medical College will establish the Ronald O. Perelman Heart Care
Institute. It also will support research and clinical care at the newly named
Ronald O. Perelman and Claudia Cohen Center for Reproductive Medicine.
Charities lose court fight for $8m estate
February 27, 2008, Boston Globe
Five weeks before his death, after a year-long battle with cancer that left him
deeply depressed, 85-year-old Leonard R. Brener made a startling decision.
Instead of bequeathing his $8 million estate to four local charities, he changed
his will to give the entire amount to his niece and her husband, who had cared
for him in his dying days. The change of heart stunned the four nonprofits that
had previously been the stated beneficiaries of Brener's estate, spurring them
to try to have his will overturned. And this week, after a legal fight lasting
more than five years, the state Appeals Court rejected their effort, concluding
Brener had been mentally competent and his decision to leave his money to Lois
and Herbert Rosen, who are in their late 60s, should stand.
$60
Million Gift for Stony Brook
February 27, 2008, New York Times
James H. Simons, a math professor-turned-hedge fund manager, is giving Stony
Brook University $60 million, its largest gift ever and the largest gift to any
public university in the state.
States Pass Laws to Loosen Rules on Spending Endowment Gifts
February 27, 2008, Chronicle of Philanthropy
A growing number of states are passing laws designed to make it easier for
nonprofit groups to spend money that donors have pledged to endowments, even if
investment losses have caused the value of the donation to drop. Until now, most
states prohibited institutions from spending money in an endowment if the
balance in the fund dipped below its pledged amount. If a donor pledged
$1-million to endow scholarships, for example, no money could be used to pay for
scholarships if investment losses pushed the principal in the fund below
$1-million.
Couple Gives $20-Million to Rebuild Homes on Gulf Coast
February 27, 2008, Chronicle of Philanthropy
Leonard Riggio, chairman of the Barnes & Noble bookselling company, and his
wife, Louise, have made a $20-million gift to build homes for low-income
homeowners in New Orleans who have been unable to repair or rebuild after
Hurricane Katrina. The donation is one of the largest to date for rebuilding on
the Gulf Coast. “When th