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Y
YMCA
We build strong kids,
strong families, strong communities.
April 4, 2000
Ms. Shirley Sagawa
Deputy Chief of Staff to the First Lady
Deputy Assistant to the President
Office of the First Lady
Room 100
Old Executive Office Building
Washington, DC 20501
Dear Shirley:
Thank you very much for meeting with Eden and I last week to discuss how the
YMCA might be of assistance to you on the White House teen conference. We
are eager to work with you on the national poll, conference video, and are happy to
serve as the fiscal agent. We are currently working out the legal language that will
meet the needs of our Chief Operating Officer and Legal Counsel. It shouldn't be
too difficult. In the meantime, please feel free to continue to rely on us a resource.
It was marvelous to finally meet you Eden has spoken so highly of you. Thank
you again for your time, and we look forward to working with you, Shirley.
Sincerely,
Ker
Kenneth L. Gladish, Ph.D
National Executive Director
YMCA of the USA
Public Policy
1701 K Street, N.W., Suite 903
Washington, D.C. 20006
202-835-9043
toll-free: 800-932-9622
fax: 202-835-9030
http://www.ymca.net
YMCA mission: To put Christian principles into practice through programs that build healthy spirit, mind. and body for all.
Issue Inventory
What?
What does the sponsor want?
What is the real purpose?
What would the challenge look like?
What is expected to be solidified for an announcement?
What is the target (that we expect to raise)?
Who?
Who are we trying to reach through the challenge?
Who is the decision-maker at Gates?
Who will be involved in planning/approving the challenge?
What other players might need to be involved in creating the vision, testing the concept,
or making it happen?
When?
When would Gates Foundation want to announce the challenge?
When would they like to kick-it off?
Does it have to be limited to a one-year initiative?
How?
What will the structure be?
What strategies should be linked/coupled with the objectives?
What models exist with similar campaigns that we can emulate?
What amount of $ will be spent in employing the strategies to reach the targets?
What kind of resources, e.g. training, will be provided to help youth be successful?
Where?
Where will the structure be housed?
Where does the target population live?
Why?
Why would any youth want to do this?
Why is Gates doing this?
Why are we doing this?
Youth Challenge 2000
AGENDA
10/15/99
I.
Introduction (Shirley Sagawa)
Why are we here today?
II.
Desired Outcomes (Gretchen Van der Veer)
III.
Proposed Process (Gretchen Van der Veer)
IV.
Set-up for Success (Gretchen Van der Veer)
V.
Presentation of Pre-work
Mission/Vision (Charlie Rose)
Issue Inventory (Karen Hallerman)
VI.
Additional Issues/questions to add to the list (All)
VII.
Mission/Vision (What, Why)
VIII.
Players and Participants (Who)
IX.
Timing (When)
X.
Strategies (How, Where)
XI.
Reflection (Why)
IDEAS/ISSUES - YOUTH CHALLENGE 2000
My biggest concern is that this initiative will not be catalytic at all, but
will turn off youth to the idea of philanthropic involvement and
fundraising. To make it catalytic, I think we are talking about a multi-
million dollar initiative with administrative capacity, extensive training,
setting up youth boards in each state, and a longer time frame than
one year. If this is not possible, perhaps we should support a
proposal to limit the number of states or choose a particular region as
a model. Below are some issues related to this concern and overall
questions for us to address.
Will young people want to be a part of a large and long fundraising
campaign? Let's not make this another way adults use youth to carry
out tasks adults think youth want to do.
How will young people help design this so that the fundraising aspect
of the initiative becomes a vehicle for them to make a difference for
the programs/areas in which they believe?
We are not creating a generation of philanthropists and encouraging
an ethic of philanthropy by sending out youth to do fundraising. What
skill-building, personal mission exploring, and other components
need to be a part of the process to create personal and communal
change? Otherwise, this will not be a catalytic event, rather a large
competitive initiative that may turn many youth off to philanthropic
involvement. Suggestions for skill and capacity-building training in
communities: youth-adult partnerships, youth on boards, fundraising
101, giving, service-learning. What is the cost involved in training in
all states?
What definition of philanthropy is being used? The various groups
involved are operating under different definitions (i.e., service,
citizenship, or giving). Everyone knows about service. How does
this become about philanthropy - voluntary service, voluntary
financial giving, voluntary association, voluntary activism? Can and
should the initiative raise awareness about each of the areas -
awareness of what philanthropy is and what (other than fundraising)
youth can do?
1
Luana G. Nissan
Habits of the Heart Project
Ideas youthchallenge2000.doc 10/12/99
The nonprofit sector is not the business sector. Is competition
between states a healthy message to send to our young people? Is
it good for them, for the organizations/causes they will be supporting,
or for the nonprofit world?
If youth are to be changed by this experience, they must be asked to
give before they go out and do fundraising. This is the first rule of
fundraising. What training/resources will be made available to the
youth and adult leaders to instill this important and uncommon
message?
If youth are to be involved, which youth and what will their role be?
There needs to be strong guidance and a clear role for youth.
Determine first: What is the purpose of this meeting, who assists in
meeting that purpose? Our recommendation is that if youth are
involved it is the exceptional and older teen leader who is making
true change in the world and who is accustomed to working with
adults.
Can this group come up with a common way to report their
philanthropic activities to a place - use reporting structure, common
language. It will be easier to share the stories of success and help
media access these stories and make them public.
What will help the work in future? Would a published compendium of
programs across America that involve youth in philanthropy be
useful?
Nuts and bolts issues:
What will youth be raising funds for? And how? Current programs
(e.g., Boy Scouts annual campaign, Youth as Resources
grantmaking programs, or general catagories with designated
organizations to receive funds)? Will product sales (i.e., Girl Scout
cookie sales, wrapping paper sales) count?
What if a large donor or foundation is located in particular states and
make a significant contribution? Will this be allowed to count as if
the contributions came from numerous individuals? Perhaps a way
2
Luana G. Nissan
Habits of the Heart Project
Ideas youthchallenge2000.doc 10/12/99
to deal with this is to say that a cap of 10% of total funds can come
from individuals and foundations. For the wealthiest individuals and
foundations, this won't be an issue if they will be targets for providing
matching funds. But, most states have a good pool of donors that
make $10,000 contributions to causes.
Will adults also be involved in fundraising?
How will the raised funds be calculated? What structure/organization
has the capacity to keep track of this?
How many national or state-by-state staff will be needed to
administer the initiative? Who will do this? It seems that the only
logical choices are the state service commissions (affiliated with the
Corporation) or the United Ways.
If the raised funds and/or the matching funds are to be held by one
institution - how will this not tip them from their 501-C3 status?
How will young people stay energized about their raised funds
making a difference if the money is to go into a pot to be decided
upon later?
3
Luana G. Nissan
Habits of the Heart Project
Ideas youthchallenge2000.dod 10/12/99
SYNOPSIS OF OCTOBER 8 MEETING WITH
THE GATES FOUNDATION
The Gates Foundation will consider only a proposal that supports
initiatives that are "catalytic" in nature.
The Gates Foundation representative and planning group are
focused on a putting together a proposal to be decided upon before
the October 22 White House Conference on Philanthropy. A broad
picture of the proposal follows. Details will need to be worked out by
the planning group.
All states will participate in a competition to raise funds for
philanthropic causes and/or organizations.
Youth will be doing the fund raising.
The campaign will go on for one year.
Matching funds for the amount raised will be sought from
local community and private foundations. Those matching
funds will probably be held by the United Way to be allocated
by youth boards at a later time.
The Gates Foundation will double or triple the funds raised
by the most successful state.
This initiative will be tied, in some way, to the Corporation
for National Service's Youth Summit in June 2000.
4
Luana G. Nissan
Habits of the Heart Project
Ideas youthchallenge2000.doc 10/12/99
00 T - 13-99 03:03 PM K12. ED. IN. PHILANTHROPY
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630 Harvey St.
Muskegon, MI 49444
K-12 Education in
Phone: 616-767-7206
Philanthropy Project
FAX: 616-773-0707
Fax
To:
Shirley Sagawa
From: Kathy Agard
Fax: 202-456-6244
Pages: 13 (including cover)
Phone:
Date: 10/13/99
Re:
William Gates Foundation Proposal
CC:
Urgent
For Review
Please Comment
Please Reply
Please Recycle
Comments: The following proposal is the draft you have discussed Joel Orosz of the W.K.
Kellogg Foundation. Please give me a call at 231-767-7205 if we can be of further
assistance.
Sincerely,
Kathy Keely Agard
OCT-13-99 03:03 PM K12. ED. IN. PHILANTHROPY
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Gates Millenium Giving and Serving Youth Challenge
Proposal for Discussion
The William and Melinda Gates Foundation has the opportunity and the
capacity to profoundly support and expand the philanthropic tradition in
America. At the victory celebration in 2005, the Gates Foundation would
achieve:
Outcomes: Over 2 million young people trained in fund-raising, grantmaking, and
community leadership
One billion dollars endowed in perpetuity in local communities and states
to support youth programs forever
Twelve thousand school districts, in every state, teaching philanthropy and using
service-learning teaching methods as permanent components of the core school
curriculum
Six million American children learning about giving and serving each year
(twenty-four million during the four active years of the challenge)
New and synergistic relationships between currently diverse programs
which are trying to impart the philanthropic tradition to the next generation
An energized and organized national movement of young people with the
skills and resources to make positive change in society
The structured transmission of America's priceless tradition of giving and
serving assured for the new century.
What:
Challenge grant to involve youth (under age 21) in giving, serving,
and private citizen action intended for the common good (philanthropy)
Empower youth to give and serve
Build skills in private citizen engagement
Meet needs of youth in communities
Provide long-term infrastructure for youth service in communities and states
Who:
50 United States and Pucrto Rico
Total: 51
When:
June 2000 December 31, 2005
Gates Millennium Youth Giving & Serving Challenge Grant
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Funding:
Total Gates Gift:
$1 billion over five years
$1 local : $1 Gates Challenge
Formula funding to he based on the population of the state with weighting
related to the number of children and youth in the state.
Challenges per State
Gates
Local Match
Total
(25) Large states: maximum challenge
$ 20 million
$20 Million
$40 Million Total
(26) Small states: maximum challenge
$ 10 million
$10 million
$20 million Total
Total of Challenges
25 Large States
$ 500,000,000
$500,000,000
Billion
26 Small States
$ 260,000,000
$ 260,000,000
$ 520,000,000
International Youth Foundation
$1,000,000
Competitive Incentive
SUB-TOTAL:
$ 761,000,000
$760,000,000
$ 1.5 Billion
Program and Administrative costs
$239,000,000
TOTAL
$1 billion
$760,000,000
$1.7 Billion
Phases and Structure:
Phase I:
Structure the Grant
Small national challenge management committee composed of
people of high integrity and special expertise
Incorporate a new 501 (c) 3 for this purpose as an operating foundation or
place within the Gates Foundation. Recommend keeping the project
as an operating program of the Gates Foundation.
Establish a management committee of nonpartisan volunteers in each
state, appointed by the Governor (efficiently only 51 contact points).
State Service Commissions would bc natural homes.
Phase II:
Raise the Money and Develop Long-term Infrastructure
(Each state would have all pieces in place prior to payment)
There are a number of potential partner organizations with resources
and expertise in these arcas. They would be helpful in meeting the
challenge. The components do not need to be created from scratch, but
this would be the first time that each of these independent efforts are
brought together. An initial list of potential partner organizations is
attached.
Gates Millennium Youth Giving & Serving Challenge Grant
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Each state in the challenge would commit to establishing the following:
A State Youth Advisory Committee and Many Youth Advisory
Committees within a State
Establish a State Youth Advisory Board as well as youth advisory
boards in each of the entities involved (United Way, community
foundations, schools, Scouting, 4-H. Provide many leadership
opportunities for youth).
(The Michigan Community Foundations' Youth Project has helpful
experience here. Other resources are listed on the attachment).
http://www.mcfyp.org/
K-12 Education in Philanthropy/Service-Learning
K-12 Education in Philanthropy in place in schools throughout the
country (Place a coordinator in each Department of Education
for five years to work with local schools. Each State Department of
Education to provide secretarial and other support.)
Work with Service-Learning funding from federal government
as well. (The structure for a K-12 curriculum has been developed in
Michigan and is ready for dissemination in to other states. The
National "Learning In Deed" effort is bringing together the service-
learning community on a national level in ways that would be helpful
to this challenge).
http://www.msu.cdu/-kI2phil/
Positive Youth Development in Giving and Serving
Youth organization education and experience in giving and serving
(award levels, badges, materials) in the following major youth
development programs:
4-H, Scouting, Boys and Girls Clubs
Youth United Ways
Local Youth United Way with permanent youth committee to raise
funds from and for youth and to advise on youth allocations
Administrative endowment to support the Youth United Way,
either in the United Way or the community foundation depending
upon local circumstances. (The Youth United Way-a joint venture of
the Kalamazoo Foundation and the Kalamazoo United Way offers a
useful model).
Youth Community Foundation Endowments
Youth Endowment in a local community foundation with a local youth
advisory committee to make grants (The Michigan Community
Foundations' Youth Project can also provides
some helpful lessons learned. An evaluation of this program is attached).
Gates Millennium Youth Giving & Serving Challenge Grant
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State Youth Volunteerism
Statewide youth volunteer programs based on the local infrastructure
(These can be within United Ways, free-standing volunteer centers,
school-based programs, or youth group programs that are part of systems,
such as 4-H).
International Youth Foundation
International Youth Foundation Endowment for U.S. students
to give funds internationally.
Phase III: America Enjoys the Benefits in Perpetuity
Youth United Ways will fund operating expenses for local youth programs
Youth "Community Funds" in community foundations will makes grants for local
youth programs
K-12 Education in philanthropy will teach children about giving and
serving as part of the corc public school curriculum
Service-learning activities will be il core part of the school curriculum and provide
experience to all students in service and volunteering.
Competitive Incentive:
The first state to complete the total challenge will have their state youth board
select the first recipients for grants to children and youth from other countries
from the earnings on the endowment fund in the International Youth Foundation.
The fund will forever be named the X State Fund of the "Gates Challenge."
Internet Use: Gates Challenge Web-site for Project information and resources, links to
other web-sites related to the grant
Youth Engagement:
Youth will be involved at all levels, long-term infrastructure
will provide sustained power
Issues:
A variety of issues related to each phase must be worked out
Launch, Structure, Rules, Training, Monitoring
Gates Millennium Youth Giving & Serving Challenge Grant
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Options:
A. Reduced Challenge Match
$500,000,000
The challenge grant could be reduced by cutting the challenges in half. The
largest states could have challenges of $10 million and the smaller states could
have $5 million. The program costs might also be further reduced depending
upon the items that would be funded from the grant, the payment schedule which
would effect interest earnings, and if other funders might be encouraged to
participate.
Challenges per State
Gates
Local Match
Total
(25) Large states: maximum challenge
$ 10 million
$10 Million
$20 Million Total
(26) Small states: maximum challenge
$5 million
$5 million
$10 million Total
Total of Challenges
25 Large States
$ 250,000,000
$250,000,000
$500,000,000
26 Small States
$ 130,000,000
$ 130,000,000
$260,000,000
International Youth Foundation
$1,000,000
Competitive Incentive
SUB-TOTAL:
$381,000,000
$381,000,000
$762,000,000
Program and Administrative costs
$100,000,000
TOTAL
$481,000,000
$381,000,000
$862,000,000
B. Reduced Challenge Match
$250,000,000
The challenge could also be reduced to $250,000,000 by deciding not to offer the challenge to
every state. A number of criteria may be used to select the states. Selection might be competitive
based on state proposals, or for the states with the children and youth in highest need, or based
on the states with the fewest youth empowerment assets (service-learning, youth volunteerism),
or the states with the most resources for youth as leadership states. A number or selection
standards could be set.
More Detailed Discussion Follows
The W.K. Kellogg Foundation has eleven years experience with a similar $100 million youth
grantmaking project in Michigan. The Foundation would be an excellent source for "hands-on"
recommendations and feedback if desired.
Gates Millennium Youth Giving & Serving Challenge Grant
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Gates Millenium Giving and Serving Youth Challenge
Proposal for Discussion
DETAIL
Possible Schedule: October 22, 1999
Announcement
June 2000
Detailed Challenge
Publication/Training in each state
January 2001
Applications Due
Challenges Awarded Quarterly (first come basis)
12-13 States per quarter
Funds raised starting June 2000 would count
January 2001-December 2005
Challenges made and paid
Challenges paid when all funds are raised and other
infrastructure criteria are met
December 2005
Victory Celebration
Naming of fund in the International Youth Foundation by the
first state completing the match, youth award first international
grants.
Matching Issues to Consider:
If the challenge money is given at one time, (e.g. in to a trust), then the interest
carned while raising the challenge funds could help to pay for some of the
administrative costs. The potential gift sizes raise some "tipping" issues that will
need to be addressed. Not impossible, but important to work through. This would
be another advantage to using state commissions which receive enough public
money to eliminate this concern.
Main Proposal Grant Guidelines
Maximum grant:
$20 million for a large state (population)
$10 million for a small state
Minimum grant: $5 million per state
(Smaller states with less wealth might bc encouraged to apply more than once
so that they develop some confidence and success during their first efforts)
Match:
(Criteria for match are EXTREMELY important)
Recommendation: cash in hand only
Gifts of stock (yes) if they can be sold immediately
Pledges (no), Life Insurance (no)
Tangible personal property (art, cars, jewelry, autos) (no)
Land (no), Planned gifts (no)
Gates Millennium Youth Giving & Serving Challenge Grant
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Source of Funds: Determine if there are any issues concerning funding sources
Can one major donor match the whole amount in one gift? (Recommend that not
more than 25% of the total local match come from one donor).
Can government raise taxes or usc tax money to match? (Recommend that tax
dollars be used only to meet the last 10% of a local goal)
Can a private foundation liquidate to meet the match? (Recommend that a private
foundation termination can only count for 25% of the local goal).
Structure
State Committees:
Recommend State Service Commissions
Already in place in each state
Already committed to youth service
Understand their own states
Can accept large amounts of funding from private sources
without tipping.
Must be nonpartisan
Must represent the diverse interests in the state
Must represent the racial, ethnic, gender, and class components of
the individual states population
Must be able to raise money
Must include young people (25%) for the fund-raising phase
90% on the various youth boards in the distribution phases
Recommended structure would be that the Gates Foundations establish
the program goals and the rules of the challenge, then allow each state to
work out its own plan for raising money and for its distribution. The plans
would come within the infrastructure guidclines listed above in order to
assure there are strong institutions left in each state after the challenge is
completed.
Training and Support
Gates Foundation provides workshop training in workshops in each state
For adults-Fund-raising
Youth empowerment techniques
Youth development
Youth board participation
K-12 Education in Philanthropy
Service-learning
Rules of the challenge
Web-site use
Gates Millennium Youth Giving & Serving Challenge Grant
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For youth-Fund-Raising
How to serve on a board or committee
Grantmaking and allocation
Background on philanthropy
Service-learning
Rules of the challenge
Web-site use
Resources: Can be drawn from a variety of sources at local,
State, and national levels.
Use of the Internet
News about the project
Online application
Keep track of challenge on a monthly basis by state and show
Graphically
Student chat line and assistance
Commission chat line and assistance
Fund-raising advice from experts
Ongoing reporting on the usc of the moncy from each state.
At the end of the challenge (January 2006) the state that meets their total
challenge grant first will have an endowment fund in the International Youth
Foundation established in their name: The X State Fund of the Gates Youth
Challenge". The state youth advisory committee from that state will bc able to
advise on international grants to he made to children and youth in other countries.
In the second and subsequent years, all American youth will participate in an
online dialogue and decision-making process to provide advice each year on how
the grants for that year should bc given for the benefit of children and youth in
other countries (youth to youth international grantmaking).
Role of Youth (under age 21)
Serve on the committees in each state
Help to raise the matching funds (a part of cach state plan)
Help to contribute some of the matching funds (maybe youth gifts could be
matched 2:1)
Perhaps a bonus for a certain number of youth volunteer hours in a
given state sel by a % of youth in the state
Serve as the long-term advisors on the grantmaking committees of
United Way and the community foundation
Intentional education with school and youth groups to teach the skills
and the knowledge about giving and serving
Gates Millennium Youth Giving & Serving Challenge Grant
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Serve as advisors to the International Youth Foundation's fund via
the internet
Any Left-over Funds:
Any challenge funds not matched by the end of the project would be
granted to the Nonprofit Academic Centers Council as an endowment to support
teacher education in philanthropy and service-learning.
Gates Millennium Youth Giving & Serving Challenge Grant
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Resources Examples
An advisory committee could help select the appropriate partnering organizations with expertise
that could be helpful to a challenge, at any level.
National Programs
Corporation for National Service
Service Commissions in each State
Streams of Service
Americorps, Vista, Peace Corps, Learn and Serve (Service-learning)
Points of Light Foundation
Experience in Systemic Change through Youth Philanthropy
Council of Michigan Foundations
Michigan Community Foundations' Youth Project
K-12 Education in Philanthropy Project
Service-Learning
Learning In Deed-National Service-learning Initiative
National Youth Leadership Council
Youth Training to Serve on Nonprofit Boards
Youth on Board
Community Partnerships with Youth
National Center on Nonprofit Boards
National Society of Fund-Raising Executives
Training in Fund-Raising
Fund Raising School at Indiana University
Indiana University Center on Philanthropy
National Society of Fund-raising Executives
Academic Nonprofit Centers Council
University Academic Centers on Philanthropy
National Philanthropic Organizations with Local Bases in Communities
United Way of America and Local Affiliates
Community Foundations
Women's Foundations
Council on Foundations
Forum of Regional Associations of Grantmakers
Youth Group Leadership
"Habits of the Heart"
Indiana Humanities Council
National Youth Organizations:
4-H, Boys and Girls Clubs, Scouting
International Youth Ties
International Youth Foundation, Save the Children, UNICEF
Gates Millennium Youth Giving & Serving Challenge Grant
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Gates Millennium Youth Giving & Serving Challenge Grant
Page 11 of 12
Gates Millennium Giving and Serving Youth Challenge Timeline
Oct., '99
June, 2000
Sept., 2000
Jan., 2001
007-13-99 03:08 PM
Announcement
Challenge Detail
Training Begins
Individual Challenges
Give Gift to Start
State Comm. Appointed
to States
Earning Interest
Web site Running
K-12 Education
in Philanthropy Established
In Departments of
Education
Jan., 2001
Dec., 2005
K12.ED.IN.PHILANTHROPY
Internet Training and Advice
Regular Meetings of 51 State Directors
Matching Funds Raised
Infrastructure Components Put In Place
Internet Tracking of State-by-State Progress
6167730707
Jan., 2006
Victory Celebration
Youth Advising Across Nation
All Youth Advisory Components
American Youth Advising on
In Place
International Youth Foundation Fund.
All Infrastructure Components In
Place
Gates Millennium Youth Giving & Serving Challenge Grant
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