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Sund Plan 5/11/99 - Patriotism, democracy - Rochupell family is 5th generate 9 giving - Grung blood - Sense 7 reging - 22 a yr m/lab adjusted is air. currease a yr paltry Sung as a 20 2 GNP - 1.7 or1.8% 8mg as a no 7 personal - same NYT - 80mg as permal income werl down for the fut time - 1.7 to 1.6 Coup. income 1.8 1987 to 1.3 1996 - Tied to drop in civice + pol. participation People Course to don't things feel not they allect For 7 to have age change - - - Jan - except engenes - Michael - got a grant from Pew t set you to engayed Tool to make better connections m/ comen. - Results metal - Saa - people who vol more WELL to Le engaged Covid be clucken + egg problem - Namey- managery Dl. is expensive mega gives in Janish community - give to themselves Reg too much on connections for giving - risk - Sara - Don't fall into the has & that menage is plul. b/c for manage is 3 sector society - 3rd by ? the stool want poly annoncement 1 1706 has than $ of wonth se che - Grow The 7 bouhique ango. - funcher set up our directed nont say - want to be part 7 the gover name - 642 more character inst than 10yr ago good ? competite? or ineffiement - donors want nine control t information chowe - Structure of giving has changed what do they get - Won't fund over head want bullets - Intenet - Worked well for Kosovo, Human Med world Wide competite confusion, froud - American Camer Society - had to seach for it on the net Too much info to wode thingh - Responsibility fn other - inter connectelnes of Seam 7 all 70s - - Coeneration grown up w/o hope - new givers -> not fun wyet - Role 7 internediary org. - the hadrainess had wear th plus ask wear in there - What 1 WH Coml could Spen a day where everythere yru 80 you'reashd to for - Do award for your person - make a comment ment to a what "reberfung - famlus m/ income 7 10,000 fave 400/yr - Lahnost Af Am len likely to give La check charty they aren't L connected to- - wher five to huricane victims in later Am contract - look at families who do a food job pany down the tradel - Research - what ought + be he level liging Respense income - shiding scale - Most giving communities Most your fainlies host Sing compane? or employee groups FRONTIERS IN PHILANTHROPY NEW WAYS OF GIVING IN A TIME OF CHANGE JULY 8, 1999 June 7, 1999 Ms. Shirley Sagawa The White House Washington, DC 20502 Dear Ms. Sagawa, During this past year, awareness of philanthropy and its role in Silicon Valley, the Bay area and the entire country has increased. Local and national media are turning their attention to foundation philanthropy as the newest generation of successful entrepreneurs begin to shift their focus away from reinventing business to reinventing giving. This leads to some questions: Is venture capitalism a good model for foundations to emulate? How will philanthropy interact with government and business to address community needs in the future? Will new models of collaboration emerge? What trends or forces will most affect foundation philanthropy over the next ten years? The Council on Foundations, in cooperation with the Community Foundation Silicon Valley, the Peninsula Community Foundation, American Leadership Forum-Silicon Valley, and Northern California Grantmakers, invites you to attend Frontiers in Philanthropy: New Ways of Giving in a Time of Change on Thursday, July 8, 1999 at the San Jose Repertory Theater to discuss these issues in detail. Leon Panetta, former White House chief of staff and founder of the Panetta Institute is scheduled to moderate this roundtable discussion that will bring together Silicon Valley entrepreneurs, local government officials and members of Congress, representatives of the media, and leaders of foundations and nonprofits. The two and one half-hour discussion will begin at 9:00 a.m. and will be followed by lunch. Sharon Davis, First Lady of California has been invited as the keynote speaker. We hope that you will be among the guests in San Jose on July 8 as we address the fundamental and changing role of philanthropy in American life today and tomorrow. Please register by June 25 via phone [408-975-3170], fax [202-973-5858] or the Web at www.cof.org/frontiers. Sincerely, Dut Reary Peter Hero Sty-Sper Dorothy S. Ridings Peter Hero Sterling Speirn President and CEO President President Council on Foundations Community Foundation Silicon Valley Peninsula Community Foundation ann N.DeBrosk Caroline Tower Ann DeBusk Caroline Tower President President American Leadership Forum- Northern California Grantmakers Silicon Valley AMERICAN PENINSUIA northern california LEADERSHIP FORUM COUNCIL ON FOUNDATIONS COMMUNITY granimakers FOUNDATION INVESTING IN PROPLE SILICON VALLEY SILICON VALLEY IDEAS AND COMMUNITIES American Leadership Forum Community Foundation Council on Foundations Peninsula Community Foundation Northern California Grantmakers 12345 El Monte Road of Silicon Valley 1828 L Street. NW 1700 South El Camino Real 116 New Montgomery Street Los Altos Hills, CA 94022 III W. St. Johns Street Suite 300 # 300 Suite 742 650-949-0688 Suite 230 San Jose, CA 95113 Washington, DC 20036 San Mateo, CA 94402 San Francisco, CA 94015 408-278-0270 202-466-6512 650-358-9369 415-777-5761 FRONTIERS IN PHILANTHROPY NEW WAYS OF GIVING IN A TIME OF CHANGE JULY 8, 1999 OVERVIEW On July 8, 1999, the Council on Foundations, the Community Foundation Silicon Valley, the Peninsula Community Foundation, Northern California Grantmakers and the American Leadership Forum - Silicon Valley will host Frontiers in Philanthropy-the first forum of its kind to bring together leaders from business, foundations, government, media and nonprofits to address the changing dimensions of philanthropy in a time of rapidly created wealth and growing community need. A dynamic array of panelists will share their views on philanthropy-from their personal points of view as well as the vantage points of their respective fields. They will explore ways that the sectors-business, foundations, government, media and nonprofits-can learn from each other and develop new and effective ways of giving to improve life in our communities. Frontiers in Philanthropy will open lines of dialogue in a timely discussion on the evolving role of philanthropy in Silicon Valley. Planned as the first in a series of regional forums, this meeting represents a significant step in expanding a national conversation on new ways of giving. AGENDA 8:30 - 9:00 a.m. Coffee and arrivals 9:00 - 11:30 a.m. Panel discussion 11:45- 1:00 p.m. Lunch - Sharon Davis, First Lady of California, invited as keynote speaker. CONFIRMED PANELISTS Jan Masaoka, Executive Director Susan Ford, Vice President Sand Hill Foundation Support Center for Non-Profit Management John Gardner Sally Osberg, Executive Director Independent Sector Children's Discovery Museum Steve Nissen Jay Harris, Publisher San Jose Mercury News Senior Special Assistant to the Governor of California Peter Hero, President Community Foundation Silicon Valley Harry Saal, CEO and President Smart Valley, Inc. David Ignatius, Associate Editor Bruce Sievers Washington Post Walter and Elise Haas Fund Steve Kirsch, Founder Infoseek Sterling Speirn, President Peninsula Community Foundation Kathy Levinson, President & COO E*Trade Wendy Tokuda, Anchor KRON-TV (San Francisco) FRONTIERS IN PHILANTHROPY NEW WAYS OF GIVING IN A TIME OF CHANGE JULY 8, 1999 REGISTER NOW! We look forward to welcoming you and having you be a part of a program that will be significant to the future of philanthropy. To confirm your attendance, please take a moment to fill out the form below and fax to 202-973-5858. You may also register via the Web at www.cof.org/frontiers or by phone 408-975-3170. Yes, I will attend Frontiers in Philanthropy and the lunch that follows. Yes, I will attend Frontiers in Philanthropy, but am unable to attend lunch. Name Address Phone number E-mail address Please RSVP no later than June 24. CC: Malcolm Sherley ANNE BARTLEY 3580 CLAY STREET SAN FRANCISCO, CALIFORNIA 94118 TELEPHONE (415) 931-0684 FAX (415) 931-2347 June 1, 1999 Ellen Lovell The White House Millennium Council 708 Jackson Place Washington, District of Columbia 20503 Dear Ellen, It was good to see you a few weeks ago. I think you are wise to have the focus groups as well as to postpone the conference until October. July is definitely not a good time. One of the ideas that seems to be emerging from the groups is interest in new donors. I have been gathering names of people who are working with new donors to send to you. When I was in New York, I talked with David Rockefeller, Jr., who is very thoughtful about his varied experiences in philanthropy. He mentioned his speech on "Adventure Philanthropy" given at the annual meeting of the Seattle Foundation. As you can see, he was addressing new donors. He outlines different ways for them to be philanthropists and encourages them to find their own way. Exactly the message I have been hearing from others working with new donors. As you plan the conference, I wanted to make sure you read this as I think it is the right message and an excellent messenger. David is also an excellent speaker. Perhaps you have heard him when you were director of the President's Commission on Arts and Humanities. David has a long history with the arts and arts education. He has also been an ally of the First Lady's office on different projects since 1993. If there is anything I can do, don't hesitate to contact me. I hope things are going well. Best Wishes, Anne DAVID ROCKEFELLER, JR. SEATTLE FOUNDATION ANNUAL MEETING MAY 12, 1999 "ADVENTURE PHILANTHROPY" THANK YOU, ANNE FARRELL, FOR THAT LOVELY INTRODUCTION I AM so HONORED THAT YOU WOULD TRANSPORT ME HERE TO SPEAK AT THE 53RD ANNUAL MEETING OF THE SEATTLE FOUNDATION. AND I CONFESS TO HAVING A WARM SPOT IN MY HEART FOR COMMUNITY FOUNDATIONS, SINCE I HAVE SERVED ON THE BOARDS OF TWO OF THEM, ONE IN BOSTON AND ONE IN ANCHORAGE, ALASKA. YOUR FOUNDATION IS, IN MANY WAYS, THE COMMUNITY CONSCIENCE AND THE SOCIAL VENTURE CAPITAL FUND FOR SEATTLE. I AM ALSO A GREAT FAN OF SEATTLE AND WOULD BE STAYING LONGER THIS TRIP, BUT MY WIFE AND I ARE GIVING A DINNER TOMORROW NIGHT IN BOSTON FOR A NEWLY CREATED ARTS FUND WITHIN THE BOSTON FOUNDATION, YOUR COUNTERPART THERE. MY FLIGHT LEAVES AT 6 A.M. TOMORROW, so YOU CAN REST ASSURED MY REMARKS WILL BE COMPLETE BEFORE THEN! I HAVEN'T SPOKEN PUBLICLY HERE IN SEATTLE SINCE NOVEMBER 14, 1989, WHEN "WASHINGTON GIVES" HELD A LUNCHEON AT A NEARBY HOTEL. THE EVENT WAS CHAIRED BY A VERY ENGAGING AND EFFECTIVE COMMUNITY LEADER WHO, WHEN THANKING ME PRIVATELY AFTER THE AUDIENCE HAD DISPERSED, CONFIDED, "I JUST WISH YOU COULD PERSUADE MY SON, BILL, ABOUT THE VALUE OF PHILANTHROPIC ENGAGEMENT!" WELL, I NEVER DID AND, ALAS, BILL'S MOTHER PASSED FROM US. BUT MANY OTHER WILLING COUNSELORS SEEM TO HAVE DONE THE JOB. IN FACT, I UNDERSTAND BILL GATES III SPOKE AT THIS ANNUAL LUNCHEON NOT LONG AGO. AND HIS GIFT, ANNOUNCED THIS WEEK, TO COLUMBIA UNIVERSITY SUGGESTS YOU HAVE BEEN SUCCESSFUL PERSUADERS. WELL, ON THE PREMISE THAT THERE ARE SOME OTHER BILLS (OR SYBILS) HERE TODAY WHO DON'T YET HAVE PHILANTHROPY ON THE "ACTIVE" LIST, BUT WHO ARE WILLING TO LISTEN, LET ME TAKE A FEW MINUTES TO SHARE WITH YOU THE SATISFACTION THAT "ACTIVE PHILANTHROPY" HAS BROUGHT TO MY OWN LIFE. THERE ARE THREE DIFFERENT STYLES OF PHILANTHROPY TO WHICH I WANT TO DRAW YOUR ATTENTION, EACH OF WHICH I HAVE PRACTICED TO SOME DEGREE MYSELF. FIRST, THERE IS "CHECKBOOK PHILANTHROPY," IN WHICH THE DONOR'S LEVEL OF TRUST IS HIGH (LET'S SAY, FOR EXAMPLE, IN THE SEATTLE FOUNDATION'S JUDGMENT), PERSONAL ENGAGEMENT IS LOW, AND THE DONOR'S LEVEL OF SATISFACTOIN VARIES GREATLY--FROM ENJOYING THE GENERAL GLOW OF GOODNESS TO FEELING SOMEWHAT DETACHED FROM THE WHOLE PROCESS. SECONDLY, THERE IS WHAT I CALL "ACTIVE PHILANTHROPY" IN WHICH THE CHECKBOOK IS ENGAGED, BUT so IS THE DONOR'S TIME AND ENERGY AS A VOLUNTEER, BOARD MEMBER, OR ADVISOR IN SUPPORT OF THE GRANTEE INSTITUTION. "ACTIVE PHILANTHROPY" CONNECTS A DONOR TO THE REAL LIFE 2 WORKINGS OF THE GRANTEE AND EXPOSES HER TO THE HUMAN, FINANCIAL, AND PROGRAMMATIC VARIABLES INHERENT IN HUMAN ORGANISMS. FINALLY, THERE IS WHAT I CALL "ADVENTURE PHILANTHROPY" IN WHICH THE DONOR ENGAGES HIS CHECKBOOK, HIS ACTIVE VOLUNTEER ENERGY, AND ALSO A SPIRIT OF CREATIVITY, RISK-TAKING, AND ENTREPRENEURSHIP. IT IS THIS LAST TYPE OF PHILANTHROPY I WANT TO FOCUS UPON TODAY. IN A MOMENT, I WILL DRAW A FEW SKETCHES FROM PERSONAL EXPERIENCE, BUT LET ME START BY REFERRING TO AN UNRELATED FAMILY PATRIARCH WHO MADE HIS FORTUNE IN THE 19ᵀᴴ CENTURY AND WHO HAD A HUGE IMPACT ON HOW AMERICANS VIEWED AND GAINED ACCESS TO THE AMERICAN NORTHWEST AND THE "TERRITORY" OF ALASKA. I SPEAK OF EDWARD HARRIMAN, THE RAILROAD MAGNATE, WHO, ON THE ADVICE OF HIS PHYSICIAN, TOOK A "REST CURE" IN THE SUMMER OF 1899--ONE HUNDRED YEARS AGO THIS MONTH. A REST HE MAY HAVE TAKEN FROM HIS OFFICE BUT, INSTEAD OF OPTING FOR A HAMMOCK BY THE LAKE, MR. HARRIMAN ORGANIZED IN ONLY THREE MONTHS A ROUND TRIP EXPEDITION BY STEAMSHIP FROM SEATTLE TO SIBERIA! YOU WILL REMEMBER THAT THE YUKON GOLD RUSH HAD ALREADY BEGUN, THAT THE SPANISH- AMERICAN WAR HAD JUST BEEN FOUGHT AND WON, AND THAT MT. RAINIER NATIONAL PARK WAS CREATED THAT YEAR. BUT LET US IMAGINE THE CLAMOUR AT THE SEATTLE WHARVES ON THE MORNING OF MAY 31, 1899, WHEN THE NEARLY 200-FOOT-LONG STEAMSHIP, GEORGE W. ELDER, WAS FILLING ITSELF WITH HARRIMANS AND NANNIES, 3 PIANOS AND COWS, AND ALL THE OTHER NECESSITIES OF A TWO-MONTH JOURNEY BEYOND THE ARCTIC CIRCLE. IN ADDITION, MR. HARRIMAN HAD INVITED SEVERAL DOZEN OF THE MOST DISTINGUISHED SCIENTISTS, ARTISTS, AND WRITERS OF HIS DAY. THEY INCLUDED EDWARD CURTIS, THEN A SEATTLE-BASED SOCIETY PHOTOGRAPHER, SOON TO BECOME THE NATION'S BEST KNOWN PORTRAIT MAKER OF NATIVE AMERICANS; JOHN MUIR, THE SCOTTISH NATURALIST AND FATHER OF WESTERN ENVIRONMENTALISM; LOUIS AGASSIZ FUERTES, THE SECOND-MOST FAMOUS BIRD ILLUSTRATOR OF HIS TIME; AND TREAVOR KINKAID, A ZOOLOGY PROFESSOR AT THE UNIVERSITY OF WASHINGTON, SEATTLE. MR. HARRIMAN HAD SEVERAL OBJECTIVES IN MIND FOR HIS "REST CURE," NOT ALL OF THEM PHILANTHROPIC OR EVEN PARTICULARLY HEALTHY! HE HOPED TO KILL A KODIAK BROWN BEAR; HE WAS TESTING THE FEASIBILITY OF A ROUND-THE-WORLD RAILWAY CONNECTION VIA THE BERING STRAITS; AND HE CERTAINLY HAD A PUBLIC RELATIONS AGENDA FOR HIS FLAGSHIP COMPANY, THE UNION PACIFIC RAILROAD. BUT, MOST IMPORTANTLY FOR US, HE CARRIED A MISSION TO EXPLORE THE GULF OF ALASKA AND THE BERING SEA AND TO CREATE GREATER SCIENTIFIC AND POPULAR AWARENESS OF THAT REMOTE, BEAUTIFUL, AND RUGGED LANDSCAPE. PERHAPS HE WAS THE FIRST REAL "PHILANTHROPIC ADVENTURER!" WELL, I CAN REPORT THAT MR. HARRIMAN GOT HIS KODIAK BROWN BEAR. HE DIDN'T LAY TRACK ACROSS THE ARCTIC, BUT HE DID FINANCE AND 4 GENERATE A 13-VOLUME SCIENTIFIC REPORT ON THE 1899 EXPEDITION BEFORE HE DIED IN 1909, I SUSPECT AS A RESULT OF TAKING INEFFECTIVE "REST CURES." MY POINT HERE IS THAT PHILANTHROPY CAN BE AN EXTRAORDINARY ADVENTURE (AND I ASSURE YOU, IT NEED NOT BE LETHAL!), FOR PHILANTHROPY IS NOT JUST ABOUT DOING YOUR CIVIC DUTY OR FOREGOING A SECOND VACATION HOME. WHEN PHILANTHROPY BECOMES YOUR ADVENTURE, YOU TAKE RISKS, YOU ENGAGE WITH TALENTED AND OFTEN CHALLENGING ENTREPRENEURS AND EVEN PRIMA DONNAS! ADVENTURE PHILANTHROPY REQUIRES PLANNING. IT TAKES TEAM-BUILDING, PERSISTENCE, AND IMAGINATION BUT, AT THE END OF THE PROCESS, YOU WILL PROBABLY HAVE DONE SOMETHING VERY SIGNIFICANT TO IMPROVE THE HUMAN CONDITION FOR YOUR COMMUNITY, YOUR NATION, OR, PERHAPS, THE WORLD. ADVENTURE PHILANTHROPY CAN BE A VERY SATISFYING WAY OF LIFE. NOW, LET ME GIVE YOU TWO EXAMPLES FROM MY OWN RECENT EXPERIENCE--ONE WITH A NATIONAL FOCUS (WITH IMPACT HERE IN WASHINGTON STATE) AND ONE WITH A REGIONAL FOCUS, BUT NOT FAR FROM YOU. THE FIRST EXAMPLE IS THE NATIONAL PARK FOUNDATION, THE CONGRESSIONALLY-CREATED PRIVATE SUPPORT ARM OF THE NATIONAL PARK SYSTEM. FOR 25 OF ITS FIRST 30 YEARS, THE PARK FOUNDATION WAS A RATHER SLEEPY ORGANIZATION--NOT A VERY PROMISING "START-UP." BUT, LESS THAN FIVE YEARS AGO, WITH AN INFUSION OF NEW EXECUTIVE LEADERSHIP AND 5 SOME CREATIVE BOARD TALENT (CEOs FROM POTLATCH AND PEROT SYSTEMS, FOR EXAMPLE), NPF BEGAN TO COME ALIVE. I'VE BEEN PRIVILEGED TO SERVE ON THE PARK FOUNDATION BOARD FOR THE LAST THREE YEARS AND HAVE BEEN TRYING TO HELP IT GROW--THROUGH A CORPORATE SPONSORSHIP CAMPAIGN, A TECHNICAL ASSISTANCE EFFORT AIMED AT BUILDING FRIENDS' GROUPS FOR LOCAL PARK UNITS [RIGHT HERE, OF COURSE, YOU HAVE "WASHINGTON'S NATIONAL PARK FUND" WHICH SUPPORTS MOUNT RAINIER, NORTH CASCADES, AND OLYMPIC NATIONAL PARKS]. NPF HAS ALSO UNDERTAKEN THE DEVELOPMENT OF A NATIONAL MESSAGE CAMPAIGN TO EXPLAIN OUR 378 PARKS TO THE AMERICAN PEOPLE, AND TO ALERT THEM TO THE DISASTROUS SHORTFALLS IN FEDERAL FUNDING AND THE WAYS IN WHICH PRIVATE CITIZENS CAN HELP. I'VE JUST RETURNED FROM A TWO-DAY NPF MEETING IN GREAT SMOKIES NATIONAL PARK, AND OUR NEXT MEETING WILL BE RIGHT HERE IN PUGET SOUND. TOUGH DUTY, YOU'RE SAYING! MY SECOND EXAMPLE OF ADVENTURE PHILANTHROPY IS AS A TRUSTEE OF THE ALASKA CONSERVATION FOUNDATION, AN ANCHORAGE-BASED COMMUNITY FOUNDATION-LIKE YOURS IN MANY WAYS--WHOSE MISSION IS TO PROTECT "WILD ALASKA." I HAVE SERVED ON THE BOARD SINCE 1992 (FOLLOWING A 10-WEEK SAILING EXPEDITION I ORGANIZED IN THE GULF OF ALASKA) AND HAVE SEEN "ACF," AS WE CALL IT, TRANSFORM ITSELF FROM A FUNDER OF GRASSROOTS ENVIRONMENTAL PROJECTS 20 YEARS AGO TO A CREATOR AND FUNDER OF STRATEGIC ECOSYSTEM-BASED CONSERVATION EFFORTS AND THEN INTO AN AGENCY WHICH STRIVES TO BUILD AND EDUCATE A CONSERVATION-MINDED MAJORITY FOR THE STATE OF ALASKA. I RECENTLY 6 SERVED ON ACF'S SEARCH COMMITTEE WHICH INTERVIEWED HERE IN SEATTLE THE WINNING CANDIDATE IN ITS NATIONAL SEARCH FOR A NEW EXECUTIVE DIRECTOR. WE'RE NOW IN THE PROCESS OF COMPLETING AN UPSTREAM MERGER OF A LOWER-48 NONPROFIT WITH SIMILAR OBJECTIVES, AS WELL AS EMBARKING ON A NATIONAL CAMPAIGN TO CREATE AN ENDOWMENT FOR "WILD ALASKA." I TYPICALLY SPEND TWO WEEKENDS A YEAR MEETING WITH THE ACF BOARD IN ALASKA, AND 1 TRY TO TAKE INFORMATIVE SIDETRIPS BEFORE OR AFTER EACH MEETING. TEN DAYS FROM NOW, FOR EXAMPLE, I'M SCHEDULED TO MEET THE BOARD NEAR GLACIER BAY (ANOTHER NATIONAL PARK, OF COURSE!) AND THEN TO JOIN A COMMERCIAL FISHING VESSEL OFF KODIAK ISLAND TO OBSERVE THE CHALLENGES OF HALIBUT HUNTING. "ADVENTURE PHILANTHROPY," YOU SEE, IS NOT JUST ABOUT WRITING CHECKS OR RESPONDING TO PLEAS FROM THE DEVELOPMENT COMMITTEE! ADVENTURE CAN BE FOUND AS WELL, OF COURSE, IN MEDICINE, EDUCATION, THE ARTS, OR SOCIAL SERVICES. BUT THE ADVENTURE ASPECT SHOULD START, I STRONGLY RECOMMEND, FROM YOUR OWN PASSION OR FIELD OF EXPERTISE. IF YOU ARE WONDERING HOW TO BECOME A PHILANTHROPIST OR, IF YOU ALREADY ARE A SIGNIFICANT DONOR BUT AREN'T ENJOYING IT, I SUGGEST THERE IS NO BETTER AVENUE THAN FOLLOWING YOUR HEART AS TO SUBJECT MATTER AND BECOMING DIRECTLY INVOLVED WITH A RELATED PROJECT OR INSTITUTION "IN WHAT WAY?" YOU ASK. WELL, DO YOU PREFER TO WORK WITH PEERS AT THE BOARD LEVEL OR MORE ACTIVELY IN SUPPORT 7 OF PROFESSIONALS? OR PERHAPS AS A VOLUNTEER GIVING DIRECT SERVICE TO THE CLIENT? SOME OF US ARE NATURALLY BETTER WITH STRATEGY AND FINANCE. OTHERS HAVE GOOD INTERPERSONAL SKILLS. AND STILL OTHERS ARE JUST GOOD, PRACTICAL PROBLEM-SOLVERS. I SUGGEST YOU DISCOVER WHICH ROLE BRINGS YOU THE MOST SATISFACTION AND THEN FIND A GOOD MATCH. I AM VERY LUCKY TO HAVE BEEN RAISED IN A FAMILY WELL-VERSED IN PHILANTHROPIC ACTIVITY. MY MOTHER HELPED START A MINORITY RECRUITMENT PROGRAM FOR THE NEW YORK PHILHARMONIC. SHE ALSO HELPED TO FOUND AN EASEMENT-BASED ISLAND PROTECTION PROGRAM FOR THE COAST OF MAINE. SHE WAS VERY HANDS-ON, A GREAT FUND-RAISER, AND HAD A GOOD INSTINCT FOR EXECUTIVE TALENT. MY FATHER, WHO IS STILL VERY ACTIVE AS A PHILANTHROPIST, PREFERS TO PLAY A MORE STRATEGIC ROLE AND TO HIRE STAFF WHO ASSIST HIM IN HIS NON-PROFIT WORK. CURIOUSLY ENOUGH, TWO OF HIS PROUDEST PHILANTHROPIC ADVENTURES HAVE ACTUALLY BEEN TO LIFT THE BURDEN OF SUPPORT FROM HIS OWN FAMILY'S SHOULDERS AND SHIFT IT TO A MUCH BROADER PHILANTHROPIC BASE. I'M REFERRING TO THE ROCKEFELLER UNIVERSITY FOR BIOMEDICAL RESEARCH AND THE MUSEUM OF MODERN ART. IN EACH CASE, A FAMILY FOREBEAR HAD FOUNDED THE ORGANIZATION AND-- AS EACH ENTITY GREW LARGER AND MORE SUCCESSFUL--IT BECAME IMPERATIVE FOR OUR FAMILY TO ENGAGE OTHER FUNDERS, SOME PUBLIC AND SOME PRIVATE, IN PROVIDING MAJOR FINANCIAL SUPPORT. so YOU SEE, 8 SOMETIMES ADVENTURE PHILANTHROPY CAN MEAN HELPING TO REDUCE AN ENTITY'S DEPENDENCE ON A NARROW DONOR BASE, FOR EXAMPLE, ON YOU! THE PARTICULAR CHALLENGE I SEE FOR YOU AS SEATTLE PHILANTHROPISTS IS, DESPITE THE GIDDY GROWTH OF THE MOMENT, FOR YOU TO BECOME EXPERTS IN TAKING THE LONG VIEW AND ASKING YOURSELVES WHAT SORT OF A WORLD DO YOU WANT TO LEAVE FOR YOUR CHILDREN'S CHILDREN? WHAT PLANNING MEASURES WILL IT TAKE FOR SEATTLE NOT TO GROW LIKE TOKYO OR MEXICO CITY OR LOS ANGELES? WHAT ARE THE CULTURAL, MORAL, ENVIRONMENTAL, AND EDUCATIONAL VALUES THAT YOU HOLD EVEN MORE DEAR THAN MATERIAL THINGS? WHAT WILL IT TAKE FOR YOU COLLECTIVELY TO PROTECT THEM AGAINST THE SEDUCTIVE LURE OF "VIRTUAL LIVES?" INDEED, WHAT CAN BE THE ROLE OF NEW TECHNOLOGIES IN ENHANCING OUR COMMITMENT TO THE CORE VALUES OF THE PAST? IN UNDERSTANDING THE SCIENCE OF THE OCEANS OR THE ROLE MUSIC PLAYS IN BRAIN DEVELOPMENT? WHAT AN EXTRAORDINARY TIME IT IS--HERE IN SEATTLE, ESPECIALLY-- AS YOU BUMP AGAINST A NEW MILLENNIUM, AWASH IN NEW IDEAS AND THE GREAT FINANCIAL WEALTH THY HAVE BROUGHT WITH THEM! BUT WHERE WILL YOU BE TAKING YOUR "REST CURES" AND YOUR ADVENTURES? AND A HUNDRED YEARS FROM TODAY, WHAT WILL YOU HAVE LEFT BEHIND AS A LEGACY FOR YOUR CHILDREN'S CHILDREN? THAT'S THE PHILANTHROPISTS QUESTION, ISNT IT? A CENTURY FROM NOW, HOW WILL IT BE HERE? 9 MY OWN NEXT ADVENTURE, I HAVE DECIDED, WILL BE IN THE REALM OF OCEANS AND FISHERIES. I JUST STARTED SIX MONTHS AGO. I DO NOT KNOW WHERE IT WILL TAKE ME. PERHAPS TO THE BERING SEA OR THE GULF OF MAINE (WHERE I FIRST LEARNED TO FISH). PERHAPS INTO REALMS OF INTERNATIONAL LAW. PERHAPS INTO SCIENCE OF THE OCEAN DEEPS. BUT PART OF MY ADVENTURE IS NOT KNOWING YET. AND MY CHALLENGE IS TO ORGANIZE MY PERSONAL EFFORT AND FUNDS IN SUCH A WAY THAT I CAN ACHIEVE BOTH TANGIBLE RESULTS AND PERSONAL SATISFACTION BUT I GUARANTEE YOU THIS ADVENTURE WON'T BE JUST ABOUT WRITING CHECKS OR ATTENDING MEETINGS, ALTHOUGH I EXPECT TO DO BOTH OF THEM AS WELL! I HAVE SUGGESTED TODAY THREE STYLES OF PHILANTHROPY- CHECKBOOK, ACTIVE, AND ADVENTURE. ALL THREE ARE NEEDED. EACH CAN BE SATISFYING. YOU MUST CHOOSE WHAT SUITS YOU BEST. BUT I HAVE TRIED TO MAKE A SPECIAL BRIEF FOR "ADVENTURE PHILANTHROPY," BECAUSE I KNOW IT SUITS THE SPIRIT OF SEATTLE AND BECAUSE I BELIEVE IT HOLDS THE GREATEST OPPORTUNITY FOR PERSONAL FULFILLMENT. AND WHICHEVER STYLE YOU CHOOSE, I KNOW THE SEATTLE FOUNDATION STANDS READY TO HELP. SO, I INVITE YOU TO BOOK PASSAGE NOW ON A SHIP CALLED ADVENTURE PHILANTHROPY LEAVING SOON FROM THE SEATTLE WHARVES. DON'T MISS THE BOAT. WHO KNOWS WHERE IT MAY TAKE YOU! THANK YOU VERY MUCH. 10 Name Contact Phone # Address Website Info 625 Fourth Avenue Lutheran Brotherhood Louise K. Thoreson 612-340-5890 Minneapolis, MN 55415 annual grants to Ford Foundation "Faith (212)573-4618 320 East 43rd Street New programs Based Development" Fred Davie (212)351-3677 (f) York, NY 10017 www.fordfound.org/home.html encouraging or Father Fred Kammer, 1731 King Street, Suite President of Catholic (703) 549-1390 200, Alexandria, VA Catholic Charities USA Charities (703) 549-1656 (f) 22314 http://www.catholiccharitiesusa.org 1852 Century Place, Presbyterian Christian 404-320-3303 Suite 180 Atlanta, Association Randel Stair President 404-679-5490 (f) GA 30345 Tzedekah Fund Naomi Eisenberg Danny Siegel Assistant [email protected] 301-468-0060 973-763-9396 Dana Tennie 4321 North Ballard Road Corporate & External 920-734-5721 Appleton, WI 54919- Aid Association for Relations 800-225-5225 0001 Lutherans American Bapist Barbra Jarrett POB 851 Valley Churches USA Richard Schramn 610-768-2077 Forge, PA 19482-0851 www.abc-usa.org 815 2nd Avenue New Epistocal Church Joyce Hogg 212-922-5129 York, NY 10017 Unitarian Universalist 617-742-2100 Association Marci Bailey Adams ext.511 TM Institute for Civil Society One Bridge St. Sulte 101 Newton, MA 02158-1101 Attn mary Ellen Phone 617.928.3408 Facsimile 617.969.9585 From Andrea Camp Venture Capital for Stronger 202/456-6244 Communities 2 pages total Room 101 May 14, 1999 Mary Ellen— Below is the list of names that Gail Pressberg forwarded to me in response to your request for names for your philanthropy discussions. You may have some of these already Andrea Camp Andrea-- The best person from Interfaith Funders is Randy Keesler. He is on the Board of Director; he is also a staff person for the Campaign for Human Development in Washington, DC, His work phone number is 202 541 3369. The Campaign for Human Development is part of the US Catholic Conference. They do excellent work in the area of community economic development and poverty. Another person in the religious community is Jeffrey Dekro, the President of the Shefa Fund. He is based in Philadelphia (they are our partners in the $3 million dollar community loan fund we're working on in Philadelphia). His leadership on behalf of Shefa has helped the organized American Jewish community focus on justice issues and how they expend charitable dollars creatively in the United States. Last week a single $7 million gift was given to Shefa by a wealthy Jewish individual because of the justice questions, steeped in modern Jewish tradition, that Shefa has raised. Jeffrey's address is: The Shefa Fund, 805 East Willow Grove Avenue, Suite 2D, Wyndmoor, PA 19038. Phone is 215 247 9704 and 215 247 1115, fax. Another person is Daniel Solomon, a Jewish funder who is an heir to the Giant Food Supermarket. He is a Clinton/Gore supporter (worked as a political appointee in the Department of Labor). He is a very creative and very wealthy donor who does a lot of work in the American Jewish community. His phone number is 202 483 8017. His foundation's name is the Nehemiah Cohen Foundation. If I think of others I'll let you know. Regards, Gail 2000 WHITE HOUSE MILLENNIUM COUNCIL Honor the Past-Imagine the Future June 23. 1999 MEMORANDUM TO: SHIRLEY SAGAWA ELLEN LOVELL FROM: MALCOLM RICHARDSON MR RE: Philanthropy Conference Partners We have a number of potential conference partners who could provide support or receive 3rd party donations for the "Gifts to the Future" conference. First, the Forum of Regional Associations of Grantmakers (based here in Washington) is a 501(c)3 organization and, while a member of the Council on Foundations, is an independent organization. Among the groups we have met with, the ones with the most direct interest in promoting philanthropy are the Forum, the Council on Foundations, and the AAFRC (Nancy Raybin's group), which publishes Giving USA. Independent Sector, of course, has a natural interest in the subject and might be the most overarching national organization. Another possibility is the Urban Institute which has a relatively new initiative on philanthropy led by Elizabeth Boris. I spoke with Alison Wiley, the Executive Director of the Forum, and she expressed a willingness to serve as a fiscal agent for any conference partnership. The Forum already receives grants from several national foundations for its "promotion of philanthropy" initiative and would be able to receive foundation grants for a national conference. But, I would also be happy to pursue the question with any of the other organizations mentioned above. I am attaching some background information on the Forum and my notes from earlier conversations with Wiley, Albert Ruesga, and two of the regional project directors, Mary Pembroke Perlin and Nancy Roberts. White House Millennium Council 708 Jackson Place, N.W. Washington, D.C. 20503 Tel: 202-456-2000 Fax: 202-456-2008 e-mail: [email protected] http://www.millennium.whitehouse.gov Forum of Regional Associations of Grantmakers http://www.rag.org/ FORUM OF REGIONAL ASSOCIATIONS OF GRANTMAKERS Welcome to the About the Forum of RAGs Forum of Individual RAGs Regional Associations of Grantmakers Promotion of Philanthropy Strengthening the Nation's Philanthropy, Region by Region Public Policy The Forum of RAGs is a national service association for philanthropy, unications/ Technology whose members are 29 regional associations of grantmakers (RAGs) across the country. In their city, state or multistate regions, RAGs help Measuring Effectiveness local grantmakers practice more effective philanthropy. At the national level, the Forum of RAGs helps individual RAG staff, volunteer leaders Members Only and member grantmakers work together across regions more effectively, and to join forces with national colleague organizations interested in protecting and advancing the field of philanthropy. The Forum of RAGs mission is to promote philanthropy by inspiring and enhancing the leadership and capacity of RAGs and their members in promoting the public good. The Forum of RAGs goals are to: 1. Increase the impact of individual RAGs and their members through services which help develop skills, knowledge and relationships; 2. Serve as a catalyst and resource to RAGs in their efforts to increase and strengthen the public's understanding of and participation in philanthropy; 3. Promote and protect an environment that values and nurtures philanthropy; 4. Broaden, diversify and expand leadership opportunities within organized philanthropy and the nonprofit sector; and 5. Develop and sustain the organizational capacity of the Forum of Regional Associations of Grantmakers to ensure long-term effectiveness. NATIONAL COLLEAGUES JOBS Note to staff of member RAGs only: Click here to enter the Forum's Work Group Conferencing system (WGC). Click here to refresh your memory first via the WGC online reference guide. Note to Grantseekers: The Forum of RAGs DOES NOT award grants, nor do individual RAGs. The best place for grantseekers to start a search for information is with The 1 of 2 6/23/99 3:27 PM Forum of Regional Associations of Grantmakers http://www.rag.org/ Foundation Center. I About the Forum of RAGs I Individual RAGs I Promotion of Philanthropy Public Policy Communications/Technology Measuring Effectiveness I Members Only The Forum of Regional Associations of Grantmakers 1828 L Street, N.W., Suite 300 Washington, D.C. 20036-5168 (202)467-0383 phone (202) 466-5722 fax [email protected] Hosted by the Council on Foundations. Strategy and design by The Hoffman Group. 2 of 2 6/23/99 3:27 PM Promoting New Philanthropy http://www.rag.org/promote/index.html FORUM OF REGIONAL ASSOCIATIONS or GRANTMAKERS About the Forum of RAGs Promotion of Philanthropy Individual RAGs There is growing interest in the United States to encourage more people to devote more of their resources to philanthropy. Increasingly, RAGs are Public Policy playing a leadership role in helping potential donors in their geographical Communications/ areas. This interest is fueled in part by a booming economy, and by an Technology intergenerational transfer of wealth expected to be the largest in history. As many philanthropic, business and civic leaders initiate efforts to increase Measuring Effectiveness organized philanthropy, the Forum of RAGs works on behalf of regional associations of grantmakers to maximize and provide national support to Members Only such local efforts by: Home Providing grants and services to regional promotion of philanthropy efforts. Producing or disseminating information 1. Resource Guide 2. "So You Want To Give" Collaborating with other national and international colleagues and their resources. 1. Council on Foundations 2. Chronicle of Philanthropy 3. IMAG International Meeting of Associations Serving Grantmakers As of 1998, the Forum's work in this area has taken on an important new perspective. The Forum has launched a new national initiative: The Giving Project: New Ventures in Philanthropy, a five-year project to support regional efforts to increase organized philanthropy. The first round of grants, from a pool of 45 applicant coalitions, was made in December 1998. Individual RAG Activities Many RAGs are actively providing leadership to grow philanthropy in their local areas. Click here for examples of their varied activities in their regions. About the Forum of RAGs Individual RAGs Public Policy Communications/Technology Measuring Effectiveness Members Only Home 1 of 2 6/23/99 3:42 PM National Promotion of Philanthropy Initiative http://www.rag.org/promote/natlpool.lhtm FORUM OF REGIONAL ASSOCIATIONS OF GRANTMAKERS About the Forum of RAGs Individual RAGs Promotion of Philanthropy Promotion of Philanthropy The Giving Project: Public Policy New Ventures in Philanthropy Communications/ Technology The Forum of Regional Associations of Grantmakers has launched a major Measuring Effectiveness national project to support formal, regional efforts to increase organized philanthropy in its various forms. Dorothy Johnson, President of the Members Only Council of Michigan Foundations and trustee of the W.K. Kellogg Foundation, chairs the National Advisory Committee overseeing this initiative. Cole Wilbur, Executive Director of the David and Lucile Home Packard Foundation, chairs the Grantmaking Subcommittee; Steve Roling, Vice President of the Center for Entrepreneurial Leadership at the Ewing Marion Kauffman Foundation, chairs the Communications Subcommittee; and Humphrey Doermann, President Emeritus of the Bush Foundation, chairs the Evaluation Subcommittee. The project is a five-year, multimillion dollar effort with the following components: A grantmaking pool to provide seed funding to organized initiatives at the regional level to promote the development of new grantmaking capital. Over the course of the five years, local efforts will be supported directly, with countless other communities benefiting indirectly from the widely disseminated products and experiences of these "learning lab" grantees. Approaches to promoting philanthropy that vary by region and focus on specific demographic groups, financial advisors to the wealthy, underserved geographic areas, etc. Technical assistance and other national support services to strengthen local efforts, such as trainings, access to lists of resources, ongoing vehicles for sharing learnings, and common product development of tools to use with donors and potential donors, financial advisors, and others. Evaluation and documentation of efforts so that key learnings and effective models can be shared with other communities interested in this issue. Communications strategies implemented at the national level that can help create an environment at the regional level conducive to 1 of 2 6/23/99 3:43 PM National Promotion of Philanthropy Initiative http://www.rag.org/promote/natlpool.html generating new philanthropy. Who is eligible? Candidates for funding from The Giving Project: New Ventures in Philanthropy are regional coalitions of organizations prepared to launch or implement comprehensive, broad-based promotion of philanthropy initiatives in their areas. Primary outcomes must be to increase the number and strengthen the capacity of foundations and corporate grantmaking programs. Applicants are expected to demonstrate a meaningful level of financial support from their own regions, and to have a variety of community partners involved, such as regional associations of grantmakers; community, family, private, and corporate grantmakers; planned giving councils; individual donors; chambers of commerce; bar associations; financial advisors; etc. How does one apply for next year's grants? The first round of grants has been announced, from a pool of 45 local coalitions. The coalitions selected represent a diverse range of community leadership organizations, and a diverse set of strategies for growing new philanthropy. All of the learnings from grantees will be available to anyone interested, via this web site and other methods. A Request for Proposals for the second round will be released in June of 1999. For the planning purposes of coalitions interested in applying next time, click here to review the previous year's RFP. If you need more information in the meantime, feel free to contact the Forum of RAGs or your regional association of grantmakers. I So You Want to Give About the Forum of RAGs I Individual RAGs I Promotion of Philanthropy Public Policy Communications/Technology Measuring Effectiveness Members Only Home I The Forum of Regional Associations of Grantmakers 1828 L Street, N.W., Suite 300 Washington, D.C. 20036-5168 (202)467-0383 phone (202) 466-6512 fax [email protected] 2 of 2 6/23/99 3:43 PM National Promotion of Philanthropy Initiative http://www.rag.org/promote/grantees.html FORUM OF REGIONAL ASSOCIATIONS OF GRANTMAKERS About the Forum of RAGs Forum of Regional Associations of Grantmakers Individual RAGs National Initiative to Promote the Growth of Philanthropy 1998 Grantees and Partner Coalitions Promotion of Philanthropy Public Policy 1. African American Legacy Program - Detroit, MI Communications/ Lead organization: Community Foundation for Southeastern Michigan Technology The African American Legacy Program is a coalition of nonprofit organizations, Measuring Effectiveness foundations, churches, and professionals that aims to encourage the African American community to expand its tradition of charitable giving. Planned activities include workshops focusing on personal giving; seminars for Members Only professional advisors (accountants, financial planners, trust officers, and others); and outreach to faith-based organizations, fraternal groups, wealthy donors, Home nonprofit agencies, and legal and financial professionals. 2. Catalyst Project - The Triangle region of North Carolina Lead organization: Triangle Community Foundation The Catalyst Project's goal is to increase the community's base of permanent philanthropic capital from $1 billion to $3 billion over the next two decades. Directed by a coalition of private, corporate, and community foundation representatives and other individuals with philanthropic expertise, the Catalyst project will create specific outreach and peer-to-peer activities for professional advisors, financial institutions, entrepreneurs, and corporations. 3. Coalition for the Promotion and Expansion of Philanthropy in the Greater Baltimore Area - Baltimore, MD Lead organization: Association of Baltimore Area Grantmakers The Coalition for the Promotion and Expansion of Philanthropy in the Greater Baltimore Area will develop a strategy for encouraging philanthropy amongst wealthy African Americans, newly wealthy young entrepreneurs who own small to mid-size companies, and baby boomers who stand to inherit wealth in the next 40 years. The Coalition consists of foundation, United Way, and corporate representatives; financial and legal professionals; and representatives of key nonprofit organizations. 4. Connecticut Initiative to Promote and Expand Philanthropy - Connecticut Lead organization: Connecticut Council for Philanthropy The Connecticut Initiative to Promote and Expand Philanthropy will increase grantmaking capital in Connecticut by focusing its promotion of philanthropy activities on five target markets: professional advisors, wealthy people, businesses, entrepreneurs, people of color, and the general public. The Connecticut Initiative is directed by a coalition of organizations that includes the Connecticut Council for Philanthropy, the Connecticut Business and Industry Association, the United Way of Connecticut, the Greater Hartford Chamber of Commerce, and community foundations from across the state. 1 of 3 6/23/99 3:43 PM National Promotion of Philanthropy Initiative http://www.rag.org/promote/grantees.html 5. Northern California Coalition to Promote Community Philanthropy - Northern California Lead organization: East Bay Community Foundation The aim of the Northern California Coalition to Promote Community Philanthropy is to radically increase the number of individual donors throughout the Bay Area, and to create more varied kinds of philanthropic organizations, funds, and corporate giving programs. First-year planning activities will further build the Coalition and culminate in the development of a strategic and tactical plan for promoting philanthropy in the Bay Area. Current Coalition members include private, corporate, and community foundations; the Asian Pacific Fund; the Bay Area Black United Fund; and Northern California Grantmakers. 6. Northwest Giving Project - Pacific Northwest Lead organization: Pacific Northwest Grantmakers Forum Representatives from Social Venture Partners, Microsoft AlumNet, the Portland Estate Planning Council, two regional associations of grantmakers, and several foundations will work together to tap the vast pool of resources available for organized philanthropy in the Pacific Northwest. Target audiences will include entrepreneurs, small to mid-size businesses, and individuals with newly earned wealth from high tech industries. 7. GivingNewEngland - New England Lead organization: Associated Grantmakers of Massachusetts The Promotion and Expansion of Philanthropy (PEP) Initiative is a three-year effort to promote, encourage, and expand effective philanthropic giving in Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Directed by a coalition composed of private and community foundations, philanthropic advisors, individual donors, interested colleagues, and a regional association of grantmakers, the Initiative will create and maintain a new website on New England philanthropy; create a series of peer-to-peer and group activities that will help individual and corporate donors discover and explore their philanthropic interests; and support public policy initiatives that promote philanthropy. 8. Promotion of Philanthropy Initiative - Philadelphia, PA Lead organization: Delaware Valley Grantmakers The Promotion of Philanthropy Committee will lay the groundwork for a long-term initiative that will engage the region's entrepreneurs and growth businesses in philanthropy. The Committee includes representatives from foundations, banks, the United Way of Southeastern Pennsylvania, the Greater Philadelphia Chamber of Commerce, and other stakeholders. 9. Promotion of Philanthropy Initiative - Ohio Lead Organization: Donors Forum of Ohio The Donors Forum launched its Promotion of Philanthropy Initiative in 1997. This three-year effort aims to increase the commitment of funds to grantmaking institutions and programs. In particular, it seeks to enhance the attractiveness of Ohio's community foundations as donor vehicles, increase the number and size of the state's private foundations, and increase philanthropic activity within Ohio's business community. Target audiences engaged by the project to date include advisors, new and emerging foundations, the media, and public policymakers. 10. South Florida Promotion of Philanthropy Initiative - South Florida Lead organization: The Donors Forum The South Florida Promotion of Philanthropy Initiative will take advantage of South Florida's unique demographics by promoting philanthropy amongst Hispanic-owned businesses, the Jewish elderly, African Americans, the gay and lesbian communities, and other constituencies. Initiative partners include the 2 of 3 6/23/99 3:43 PM National Promotion of Philanthropy Initiative http://www.rag.org/promote/grantees.html Planned Giving Council of Miami-Dade County, the Jewish Funders Network, the Hispanic Business Group of the Greater Miami Chamber of Commerce, the United Way of Miami-Dade, The Donors Forum, and other stakeholders. 11. The Southern Philanthropy Consortium - Southeastern United States Lead Organization: Southeastern Council of Foundations The Southeastern Council on Foundations will partner with the Foundation for the Mid South and the Southern Rural Development Initiative to engage an even larger cadre of partners in a collective campaign to strengthen the South's communities through the creation of new philanthropic resources. This one-year project will develop a five-year plan for a program to increase philanthropic resources in under-served (primarily, but not exclusively, rural) areas of the southeastern United States. 12. Task Force on the Promotion and Expansion of Philanthropy in Minnesota - Minnesota Lead organization: Minnesota Council on Foundations A coalition that includes foundation and corporate representatives and other interested professionals will develop a Philanthropy Tool Kit that describes and promotes the wide range of vehicles through which individuals, companies, and communities can fulfill their philanthropic intentions. Target audiences for promotion of philanthropy efforts include holders of large estates who will pass significant wealth to the next generation, entrepreneurs, mid-sized businesses experiencing significant growth, and the upcoming generation of wealthy individuals. 13. Wisconsin Entrepreneurs in Philanthropy - Wisconsin Lead organization: Milwaukee Foundation Wisconsin Entrepreneurs in Philanthropy will plan a promotional campaign that positions charitable endowments as sound business and tax strategies for closely held companies throughout Wisconsin. Initial coalition members include the Milwaukee Foundation, the Donors Forum of Wisconsin, the Planned Giving Council of Southeast Wisconsin, the Wisconsin Association of Certified Public Accountants, and the Community Foundation of South Wood County. I So You Want to Give About the Forum of RAGs Individual RAGs I Promotion of Philanthropy Public Policy Communications/Technology Measuring Effectiveness Members Only Home The Forum of Regional Associations of Grantmakers 1828 L Street, N.W., Suite 300 Washington, D.C. 20036-5168 (202)467-0383 phone (202) 466-6512 fax [email protected] 3 of 3 6/23/99 3:43 PM Notes on conversation with Alison Wiley Forum on Regional Association of Grantmakers F-RAG is an independent organization, a service org. for the regional associations of foundations, but is not part of the Council on Foundations, though obviously their memberships overlap. Regional associations and councils have been eager to capture the new wealth and the impending inter-generational transfer; members have wanted materials to give to donors and their advisers, and there have been numerous efforts to target new donors. The Forum's National Initiative to Promote the Growth of Philanthropy is the result and is backed by national grantmakers who are enabling the Forum to run a grants program for these efforts. Essentially, the National Initiative to Promote the Growth of Philanthropy is a donor education program that solicits ideas from the regions. Donors need to be educated about their options, which include direct gifts to institutions such as universities and hospitals; community foundations, or the creation of family or independent funds. Strong efforts, Wiley says, were already underway in the Seattle area, the Silicon Valley area (thanks to Peter Hero and the CF- SV), Michigan, Ohio and Connecticut. The Connecticut RAG -- the Connecticut Council on Philanthropy - has actually signed a formal legal agreement with the state bar association to create educational materials for attorneys and other financial advisers. The state bar will make philanthropy education a formal part of its continuing education program for attorneys. She also mentioned a forum grantee in south Florida with a program aimed at different ethnic communities: Hispanic, Jewish retirees, etc. Nancy Roberts, the head of the Connecticut Council on Philanthropy, would be an excellent spokesperson for the field and for this project, Wiley says. Notes on conversation with Albert Ruesga [pronounced rez-gah] (6/21/99) Director, Giving Project (formerly the National Initiative to Promote Philanthropy). 202/467-0298 Albert Ruesga offered me an update on the status of the Forum of Regional Association of Grantmakers' national initiative to promote philanthropy, now given the more user-friendly name, The Giving Project. This national project began approximately two years with a report from TPI, The Philanthropy Initiative, a Boston firm specializing in working with new donors. TPI's report underlined the opportunities for a coordinated national effort, noting that the U.S. stood poised on edge of a massive generational transfer of wealth ,was experiencing longterm economic growth while, at the same time, philanthropic giving was merely holding steady at approximately 2% of GNP. A collaborative effort by several national funders provided the money to launch the initiative, which promotes giving without favoring any one mechanism or vehicle and which the Forum administers on a competitive basis for coalitions of local groups working to increase resources. The Giving Project is currently conceived as a 5 year effort and was formally launched last September. To date it has made one round of grants to 13 regional coalitions with plans for increasing philanthropy in their areas. Ruesga conceives of these grant-aided regional projects as a kind of R&D for the philanthropic service organizations which can experiment with the best ways to work in their communities to increase giving. The grants encourage new strategies for working with professional associations such as the bar associations and estate planners. In Connecticut, for example, the local coalition led by the Connecticut Council on Philanthropy, has established a formal partnership with the state bar association to get the latter to include philanthropic giving in its estate planning training and activities. Ruesga believes that this is, surprisingly, the first such formal agreement in the country. Of the 13 current grantees, 9 are led by RAGS and 4 by community foundations. The projects also attempt to work with the Leave a Legacy efforts carried out by the local chapters of the National Council of Planned Giving. The Giving Project will do a second round of grants this year, a third in the year 2000 and will continue its activities until 2003. Ruesga thinks that our conference could be helpful not only in encouraging giving - answering the question, "why give?" -- but also by making clear the distinction between charitable giving generally and giving through an organized vehicle such as a community foundation or independent foundation. The main point is to educate potential donors about the variety of ways in which they may give and widen their perspectives. He also mentioned that the Giving Project hopes to piggyback on the communications campaign being conducted by the Council on Foundations. At the same time, the Giving Project will try to have its own press placements of stories and ads. Although a supporting member of the COF, the Forum is an independent organization. Nancy Roberts Connecticut Council on Philanthropy 860/525-5585 The Connecticut Initiative to Promote and Expand Philanthropy won one of the first round grants from the Giving Project of the (national) Forum of the Regional Association of Grant Makers. The Connecticut Council project identifies five target "markets": (1) professional advisers; (2) wealthy individuals; (3) businesses; (4) people of color; (5) general public. Roberts notes that Connecticut is an ideal test case and a prime market for any effort to promote philanthropy. While the state ranks first in per capita income, it places only 36th among states when ranked by average giving, and more shocking still, when the statistics are limited only to giving among the wealthiest citizens, Connecticut donors rank 45th in the nation. The state also contains three of the nation's poorest citizens and the disparity between the wealthiest and the poorest is among the starkest in the country. The Connecticut Council plans to use targetted mailings to potential donors and will place articles in legal journals and professional magazines after it conducts focus groups to determine key issues and themes. Among the initiative's main partners at the state level are the: Connecticut Society of CPAs: is giving the project its enthusiastic support. The CPAs see the initiative as very much in their own self-interest. State bar association: -- for attorneys there are some privacy issue for their clients. But attorneys love the campaign's emphasis on asking everyone to write a will. The Council also has agreements with state chapter of NSFRE and Council of Planned Giving which is pushing the Leave a Legacy campaign. Notes on conversation with Mary Pembroke (Perlin) 6/16/99 NW Giving Project and Social Venture Partners co-founder Telephone: 206/634-3270. Mary Pembroke has been a leading figure in Seattle area philanthropy through her work with Microsoft employees and other new donors. Pembroke directed the Microsoft employee giving program and served as an adviser to Bill Gates before leaving the company two years ago. She mentioned four different initiatives with which she is involved: (1) Along with venture capitalist Paul Brainerd, she was one of the original co-founders of the "venture philanthropy" partnership, Social Venture Partners or SVP. Social Venture Partners has been a "tremendous success" she says with 165 donors joining, each pledging a minimum of $5,000 to the common effort. In addition to SVP, Pembroke cites three other area initiatives of note: (2) The Northwest Giving Project organized by the regional association of grantmakers, the Pacific Northwest Grantmakers Forum (and part of the national initiative to promote philanthropy organized by the Forum of Regional Grantmakers.) Mary Pembroke is actively involved and helped form the local effort because she saw the need for a more systematic effort to educate potential donors, especially as fellow Microsoft employees or other Seattle area entrepreneurs called her for advice. (3) Microsoft Alum-Net. An association of 2,000 former Microsoft employees (from all categories) whose mission is to support "entrepreneurial and philanthropic activities" of the former "Microsofties." Although primarily a social organization, a recent meeting devoted to how to set up foundations (or giving programs at community foundations) attracted 180 attendees. (4) Puget Sound Philanthropy Awards, given in conjunction with National Philanthropy Day. The day we spoke, Pembroke was leaving for a 6 hour meeting with the local organizers - who include the Puget Sound Business Journal and local philanthropic leaders - to talk about selection criteria and 1999 recipients. In addition, she mentioned several other "donors' circles" in the Seattle area and cited this as a model that is catching on. In particular, she cited the work of ATR, A Territory Resource, a progressive and grass-roots oriented group that also pools money for philanthropic giving, and the Washington Women's Foundation, directed by Colleen Willoughby. [See the recent article on her in People magazine, she said.] Finally, she told me a bit about Microsoft's own employee-driven philanthropic giving and suggested I talk to her successor, Emily Heine. In addition to Bill Gates' now substantial giving, the company has long matched employee gifts up to $12,000. (That's not a misprint!) Employees can give to any 501 (C)3 in the country and have their gift matched dollar for dollar. We also spoke about the nature of giving by these new types of donors. Essentially, Pembroke believes that the Northwest lacks a historical tradition of giving and sees itself as a new or young region. She agrees with much of the writing on the new entrepreneurs: they are somewhat alienated from or suspicious of formal philanthropy and mainline foundations, but she qualifies this observation by noting that many of the new donors are just now thinking about how to give - and may well settle into familiar institutional patterns - and she attributes any distrust of foundations and other institutions to a generational attitude rather than business or entrepreneurial backgrounds. The Microsoft alumni are part of the Watergate generation, too, and they grew up distrusting authority and establishments. I asked about giving preferences and she responded that the priorities are education and children, with all else falling far behind. Despite Paul Brainerd's own focus on environmental causes, the SVP donors and most of the "Microsoft millionaires" do not place the environment (or the arts, for example) very high on their list of priorities. Human services or social welfare issues likewise don't rise very high, although among the SVP group attention to the homeless comes in a distant third behind schools and children. She characterizes SVP as a sort of United Way for new donors, but it is essentially a pooled fund. The differences (which are substantial of course) are a "higher entry fee" for donors and more demanding criteria for the non-profits that benefit from the pooled funds. She agrees that the venture philanthropist model includes more personal involvement by the donors, an emphasis on rigorous evaluation, and "exacting demands" on management by the nonprofits. In general, however, she thinks this is the wave of the future for nonprofits regardless of the source of donations. We didn't have time to explore this further. I asked about the Puget Sound Business Journal and the philanthropy awards. Although she is a willing participant - she was leaving for an 8 am meeting that would last for up to six hours - she didn't sound especially enthused about this initiative. Philanthropy Day is especially popular in the Puget Sound area and has strong backing from the local business press - where I picked it up from their web pages - but the event is dominated and organized by the nonprofit recipients. Although sponsored by the PSBJ, the organizing committee is composed largely of development officers from area nonprofits. I would have like to have probed more about the effectiveness of this approach, but time did not permit more questions. One final note: despite her strong connections to Microsoft, she did not overemphasize its role in the area. But she did tell me that Bill Gates had been strongly supportive of her program all along and that Microsoft continues to be a leader in employee giving. It is also apparent that many - if not most - of the new donors in the Puget Sound area owe their fortunes to their connection to Microsoft. SUNDAY San Jose JUNE 20, 1999 Mercury News Charity grows, evolves in valley enture style: Area's tightfisted image as tech millionaires reinvent philanthropy. causes. The proportion of United Way donors who earmark gifts for ROGERS, CONNIE SKIPITARES Stanford University's Graduate specific programs is 38 percent - RY SLONAKER School of Business and philanthropy more than twice the national average Staff Writer expert. "But it is definitely an adoles- of 17 percent. tional stereotype has stuck for cent in the art of philanthropy. Most of United Way's individual decade. Silicon Valley is a place There's a search for better models of donors contribute through payroll de- ople make vast fortunes but give giving. I think we're poised for a great ductions. But among wealthier resi- charity. growth period in the next five years." dents in Silicon Valley, there also is a S that reputation was made worse clear pattern: Donors know who they h by financial calamity at United Potential problem want to help. They don't like red tape. nta Clara County, a new trend was And they want to see results. that had nothing to do with BMWs Some say new approach "There's going to be a whole new Pilots: Giving is becoming cool in may not work for all accountability for the philanthropic iley. dollar," said Laura Arrillaga, 28, direc- e past two years, a growing num- Still, some who have toiled for tor of her family foundation and co- th millionaires have started quietly years in charitable endeavors are ner- chairwoman of SV2. tew programs, writing more checks vous about the new directions. They The topic of giving gained sudden olishing foundations. New leaders worry that the complex problems of urgency in the valley last month, ng forward. Their methods are cre- the needy will be largely ignored in when United Way announced it was erts say, and could reshape charity the rush to find new ways of giving near financial collapse and would not ly in Northern California, but per- that reflect the results-oriented cul- be able to deliver $11 million prom- onwide as well. ture of high tech. ised to member charities starting July er: Young millionaires in the South "United Way provides basic human 1. Although a handful of wealthy do- month began a new club. called services that others often are not do- nors - including Microsoft's Bill encourage giving. A study ing," said Hugh Burroughs, director Gates - eventually bailed out the 1 in November by a San Jo- of external affairs at the Packard charity, it became clear there was ition shows Silicon Valley Foundation "What the young Silicon strong sentiment that United Way's is with annual incomes of Valley multimillionaire is doing in traditional methods needed to be re- n $100,000 now are giving many cases is picking off the sexy evaluated. a twice as much to charity pieces. I would hope that we'll take For years, Silicon Valley's reputa- tional average - $7,198 a care of the basic human services in tion as a community of cyber-Scroog- ared with $3,379. any mix of forward-looking funding." es has been in some ways justified. is pouring into community Many new Certainly, donations to many Sili- Although San Jose is the nation's ns in San Jose and San Ma- con Valley charities are swelling this 11th-largest city, for example, with orations such as eBay Inc. donors year with the boom in the economy. the third-highest median household ped up giving. The power- The American Heart Association is income, its United Way ranks 30th. 2 billion David and Lucile reject the up 11 percent from the previous year. In the survey by Community Foun- Foundation in Los Altos be- The YMCA has exceeded its capital dation Silicon Valley, researchers largest foundation in the United campaign goal of $8.5 million. On found that about 45 percent of valley ates three weeks ago. And Thursday, the Peninsula Open Space households with incomes exceeding organizations in Menlo Park Way model Trust in Menlo Park announced it has $100,000 give less than $2,000 a year Mateo are fine-tuning ven- raised $32.9 million to buy open to charity; 7 percent give nothing. It's inthropy, an attempt to ap- of charity. space, six months ahead of its goal. the really big donors who boost the accountability of start-up As the United Way debacle region's average to more than double S to non-profit groups. showed, however, many donors are the nation's. t think Silicon Valley de- uncomfortable now with organiza- Such shortcomings often have e stingy label any more," tions that distribute funds to myriad been ascribed to the area's unique cir- n. Hanson. a professor at co Va ey `rm S crea e solid foundations for giving Billions set aside for education, environment, science, other causes Silicon Valley's new philanthropy Two leading community foun- is expected to grow out of these or- dations - which take donations ganizations: from the public - also are explod- The Packard Foundation is the ing in size: Community Foundation titan of giving in Northern Califor- Silicon Valley has assets of $260 mil- nia After computer pioneer David lion, compared with just $9 million Packard donated the bulk of his for- in 1989. Similarly, the Peninsula tune upon his death in 1996, and fol- Community Foundation has assets lowing a steady rise in the value of of $250 million. In 1989, it controlled Hewlett-Packard Co. stock, the $42 million. Packard Foundation became the The Center for Venture Philan- largest charitable foundation in the thropy was started in April as a pro- United States on June 1. Its asset gram of the Peninsula Community base is $12.2 billion, and by IRS Foundation in San Mateo. The cen- rules it must give away at least 5 ter hopes to raise $3 million over the percent a year, or $600 million next next 18 months and intends to apply year if HP stock remains at current the accountability and hands-on levels. work of venture capitalists to chari- The Packard foundation focuses ty. its gifts on the environment, sci- The Entrepreneurs' Foundation ence, arts, population and educa- also is redefining ways to give. Gib tion, among other areas. Myers, a Menlo Park venture capi- The William and Flora Hewlett talist, started it in January 1998, Foundation, based in Menlo Park, seeking donations of stock shares also is expected to top national lists and options from start-up compa- in the coming years. Computer pio- nies. So far, 33 companies have giv- neer William Hewlett, now 86, has en stock valued at $3.3 million. said he plans to donate the bulk of The San Jose-based online auc- his assets on or before his death to tion company eBay Inc. followed a the foundation, which gives to popu- similar path a year ago when it do- lation, education and other causes. nated 107,000 shares of its stock to The foundation now has assets of create a company foundation. Then about $2 billion. If Hewlett leaves all it was worth $1.9 million. Today, af- of his shares in the Hewlett-Packard ter stock splits, the endowment is Co. - currently worth about $5.5 worth $32.9 million. The company billion - that would bring its en- has recently donated to Friends of dowment to $7.5 billion, leapfrog- Farm Drive in San Jose, which pro- ging it to the fourth or fifth largest in vides volunteers to help low-income the nation, bigger than such venera- teens with homework, teach English ble foundations as Mellon, Rockefel- as a Second Language, arrange ler and MacArthur. monthly food donations and admin- ister tuberculosis testing and treatment. The Rockefellers of Silicon Valley Page 1 of 3 Monitor Site Map Go FRIDAY, JUNE 11, 1999 e-mail this story to a friend USA The Rockefellers of Silicon Valley Young Internet millionaires begin to use wealth for social good Paul Van Slambrouck Staff writer of The Christian Science Monitor LOS ALTOS HILLS, CALIF For all its power and reach. Silicon Valley is a disarmingly informal and youthful place. When some of its elite huddled on the back patio of a private residence in this leafy suburb this week, the ambience was a blend of afternoon barbecue and a college reunion. But as an afternoon breeze fluttered napkins on the circulating trays of asparagus and prosciutto, the talk turned, as it often does here, to ideas that are innovative, out of the box, or as the valley's movers and shakers like to say, part of a "new paradigm." Put simply, the men and women who are wiring the world are struggling to build a new ethos. Just as the Carnegies, Rockefellers, and Fords of the Industrial Age eventually used their wealth for broader social good, the inventors of the Digital Age are now recognizing it's their turn to carry the torch. It comes at a time of great irony. The United Way of Santa Clara County, the heart of Silicon Valley, went bust last month and told homeless shelters, domestic violence clinics, and other social agencies to go elsewhere. This in a region that prides itself in being one of the greatest engines of wealth and ideas the world has ever known. Standing on the lawn and speaking to his peers, Internet millionaire Steve Kirsch drew laughs as he recounted his reaction to the crisis. "I wondered who would step up," said Mr. Kirsch, pausing, then casting his eyes down at himself, "and thought, how about you?" Kirsch, founder and chairman of Infoseek, wrote a check for $1 million, soon followed by a check from eBay, another Internet success story. Within weeks, the United Way's $11 million shortfall was made up by donations from the technology sector. But while the immediate need was met, there is no peace in the valley. This week's meeting was the launch of a new effort to spark the kind of social consciousness that has been so slow developing within this exploding class of new American wealth. http://www.csmonitor.com/durable/1999/06/11/p3s1.htm 6/11/99 The Rockefellers of Silicon Valley Page 2 of 3 Organized by the Community Foundation of Silicon Valley, the backyard gathering was a candid acknowledgment that the valley should do better, and a hope that this kind of informal networking is the key to more charitableness. "Silicon Valley has been at the forefront of so many things, and we'd like to extend that to involvement in charitable giving," community foundation president Peter Hero told the gathering. GIVING FREELY: Infoseek founder It was little surprise to many in the valley that the first person to step forward in Steve Kirsch recently the United Way crisis was Kirsch. He's come to personify the kind of budding donated $1 million to philanthropic interest Mr. Hero and others would like to see more of in Silicon a bankrupt United Valley, and also the kind of individualistic, personal-interest driven style of Way. giving that is emerging from today's technology leaders. INFOSEEK CORP. A onetime pinball machine repairman, Kirsch retains the exuberant fascination with the world around him that led him to be an inventer and, ultimately, founder of the Infoseek portal site. Partly gobbled up by Disney, Infoseek has showered Kirsch with unexpected fortune. But unlike many other Internet multimillionaires, Kirsch has begun giving early and often. He's established a philanthropic fund that is now worth about $30 million. 50 In addition to helping the United Way get back on its feet, Kirsch has funded a new computer science center at the Massachusetts Institute of Technology in Cambridge, various medical research projects, and even sent $100,000 to a University of Arizona project tracking asteroids that might collide with earth. "He's unusual and represents the next generation of philanthropic leaders," says Hero of Kirsch, who also sits on the community foundation board. Kirsch exhorted his peers to get involved at an early age, so "you can actually make a difference while you can see it." While some of technology's most famous, like Microsoft's Bill Gates, have become major charitable donors, the level of giving compared to the level of wealth leaves much room for improvement, says Hero. Silicon Valley's response to the United Way crisis has served as something of a wake up call. After writing his check, Kirsch sent e-mail to 65 of the valley's leaders, asking them to follow his example. He got two responses. While the United Way funds were ultimately replenished, the episode seems to have shone a light on the need of the less fortunate in the valley, as well as the relative detachment of the technology wealthy from that segment of society. There are many explanations for why Silicon Valley and the technology sector in general are not more philanthropic. The pace at which the industry is evolving, as well as its relative youth, are commonly cited reasons. Who, the reasoning goes, has time to think about worthy causes when you're working 60 hours a week and raising a family? http://www.csmonitor.com/durable/1999/06/11/p3s1.htm 6/11/99 The Rockefellers of Silicon Valley Page 3 of 3 Another feature of Silicon Valley that conspires against the kind of connection industrialists often forged with their communities, is the transience of technology workers. A large percentage of the valley's newly wealthy are from other parts of the country and world. And even within the valley, worker tenure with any particular employer is, on average, far shorter than the national average. Whatever its causes, there are a growing number of exceptions and many of them were at the backyard gathering this week. Their hope is to become one of the technology world's most important start-ups of 1999. Before bookmarking this page in your browser, click here. The URL for this page is: http://www.csmonitor.com/durable/1999/06/11/fp3sI-csm.shtml Send Editor E-mail I Go to Forums I Get Free E-mail Update Home I Today's Paper I Archive I @csmonitor.com Subscriptions About Us/Help I Feedback (c) Copyright 1999 The Christian Science Publishing Society. All rights reserved. http://www.csmonitor.com/durable/1999/06/11/p3s1.htm 6/11/99 SECTION C THURSDAY JUNE 10, 1999 SAN JOSE MERCURY NEWS BUSINESS more valley philanthropy "People don't have any role mod- els," said Fong, a partner at the May- field Fund, a group of venture capi- talists getting a real reputation for good works. Fong, who calls himself a second-generation valley resident CHRIS - his father worked at Hewlett- NOLAN Packard when it had only 100 em- TALK IS CHEAP ployees - said he wants to help peo- ple in the valley learn about philan- BECAUSE YOU CAN: Charity be- thropy from the people with whom gan at the home of venture capitalist they spend the most time: the ones Kevin Fong on Tuesday. they meet at work. And it was a pretty fun little Sili- "Everybody here's from some- con Valley event complete with in- place else," said Fong, noting that vites to another schmooze, a little most people have moved to this area too much talking and a gentle nudge for work. So, SV2 aims to provide to do a bit more for the area's philan- connection with the community, thropies. showing people how to give, how to The invites came from Wired mag- evaluate the charities in the area and azine, which is hosting a book party pay a role in giving away real money. for author Po Bronson later in the "What do we do best in the valley month. The talk - really a spirited but network?" said Fong who lent little stand-up routine about the joys his back yard and his nicely de- and reasons to give - was provided signed home - but not, darn it, the by Infoseek co-founder Steve Kirsch. pool or the tennis court - to the And the nudge came from staff at the event. Community Foundation Silicon Val- SV2's meetings provide time for ley, which urged the 100 or so peo- socializing and a presentation from a ple invited to the party to join the community non-profit. Then there's foundation's newly created social some work, making decisions on charity, the Silicon Valley Social grants and programs. The next event Venture Fund. is scheduled for mid-September. SV2 - you get it, S-V-S-V, right? - So among all this plenty, how aims to be a collection of younger, much money would the Community affluent high-tech types who encour- Foundation like to raise? age others like them to give and give "I think it's less important how generously. So far, it counts Kirsch, much it is," said foundation execu- eBay founder Jeff Skoll and Herring tive director Peter Hero. The CFSV Communications President Chris Al- will administer the fund and provide den as members, with Fong and Lau- most of the staff support. "We know ra Arrillaga, daughter of one of the there are a couple (of donations) valley's wealthiest real estate fami- coming in at the highest level." lies, serving as co-chairs. And yes, they'll take stock. San Jose JUNE 20, Mercury News It takes more than money, SO let's put the Web to work for charity It takes more than money to help the needy, SO let's put the Web to work for worthy causes Community connection W HAT would happen if we added The ultimate Web site THIRD: Connect wired charities some technology to charity? Plenty to the rest of the community. This site should have at least the - and Silicon Valley should set the The Silicon Valley Web site pace. following characteristics: should become an ultimate "non- Here's a challenge for the valley's techno- It should provide no-cost Web profit e-commerce" operation. Each rich and powerful: hosting and charity should be able to accept do- Put some of your brains and time, and just technical assis- nations by credit card. a little of your immense wealth, into the es- tance in creat- The site should also create on- sential task of bringing the non-profit sector ing a Web pres- line connections to major valley into the Information Age. Help the valley's - ence for any companies so that employees can and ultimately the nation's - charities get qualifying non- make contributions through payroll wired. Create the ultimate Web site for doing profit desiring deductions if they wish. good. Then connect it all to the rest of us: help. people who want to assist worthy causes. It should FOURTH: Screen the charities The results could make us all proud. be a place DAN Technology and charity will be a great where non- before providing assistance. Sadly GILLMOR but predictably, sleazy people have match for the same reasons that technology profits can pool taken advantage of the laws govern- has improved other endeavors. We're already their buying ing non-profit organizations, and seeing some promising work along these power to get the best prices (if they have created shell charities de- lines - including a wonderful organization can't get outright donations) from signed to benefit the people running called ImpactOnline, which I'll describe more their own suppliers. them, not worthy causes. fully later. To get that help, the non-profit The strong bias in any screening But this situation calls for a coordinated. would be required, among other process should be toward inclusion, targeted effort. It's the kind of campaign tech- things, to post on the Web site its In- not exclusion. But some standards ternal Revenue Service Form 990 nology leaders have shown again are essential, or abuse is guaran- for the prior three years or the life of and again they know how to wage in teed. Any suggestions? their businesses. the organization, whichever is short- If Silicon Valley collectively er. This form details the non-profit's Here is what's needed: pulled this system together, it would income and spending, and is an ab- go a long way toward solving a di- FIRST: Help charities get wired. solutely essential first stop for any- lemma people have posed to me in Here in Silicon Valley, we have more one contemplating a donation. the wake of the financial implosion Each non-profit on the site than enough resources to get every at the United Way of Santa Clara should also be required to answer a worthy non-profit organization County. Specifically, they want to series of questions about its mission wired internally and to the Internet. pick the charities they'll support and how it's accomplishing that mis- Let's do it here, now, as a demon- sion. Community Foundation Sili- personally - but they have no prac stration of what's possible. tical way to learn more about indi- con Valley is working on something vidual charities and other non-profi! like this for its own Web site, ac- SECOND: Silicon Valley should agencies, particularly smaller ones cording to Peter Hero, the founda- be the home of the ultimate good- that may serve valuable roles but works Web site - or, rather, collec- tion's president. which have little visibility. Beyond answering questions tion of Web sites - to open up the One of United Way's chief values, non-profit world from both direc- put forth by experts, the non-profits from my perspective, has been its tions: from the donor's view and the should answer questions from the due diligence in asking and, to some non-profit sector's view. Let's call it general public. The site should in- clude online forums where volun- degree, answering those questions Silicon Valley Cares; I've reserved about the agencies it ultimately teers, organizations and others - an appropriate Internet domain chooses to support each year. An- (www.svcares.org) and will gladly especially including the people who other has been the organization's donate it to the cause. seek help from non-profit agencies fundamental method: pooling thou- - can discuss problems and solu- sands of small donations, deducted tions. from paychecks, from people who want to help but don't feel they have the time to do the research. a Silicon Valley campaign could Silicon Valley should work with to create what's needed. My favorite melding of charity be the home of the and technology is ImpactOnline (www.impactonline.org), which ultimate good-works has been building its site for several vears. This Palo Alto-based group is doing wonderful work nonnecting Web site. volunteers with jobs that need to be done. I still think there's a place for the ImpactOnline's VolunteerMatch is an online service that matches vol- United Way. But the kind of system I've proposed above would be a ma- unteers with non-profit organiza- tions in their geographical areas in jor positive step for those who want more than a dozen major metropoli- to help but want more control over tan areas around the United States. their donations. Plug in your ZIP code and the num- ber of miles you're willing to travel Some have started to a volunteer job, and you'll see Several Web-based charity help- what's available. If you're with a ers are already in the works. Two - non-profit group, post your opportu- nities on the site. AllCharities.com (www.allchari- ties.com) and Charitableway.com The site's VirtualVolunteering, (www.charitableway.com)-are meanwhile, finds projects that can be accomplished over the Internet brand new, for-profit operations, itself - helping a non-profit create and have little on their sites but de- promotional materials, for example. scriptions of what they'd like to do. 1 If Silicon Valley pulls together the strongly believe the system I've de- resources to bring charities into the scribed should be run by a non-prof- Digital Age, it should not try to du- it organization, SO I'm extremely plicate the fine work at ImpactOn- skeptical about commercial sites of line. Partnerships are a hallmark of this kind. the technology industry. I'd hope A third. GuideStar (www.guides- that Silicon Valley Cares would link tar.org), is a non-profit organiza- up with ImpactOnline in whatever tion that has a comprehensive, way made the most sense. searchable list of charities. It Does Silicon Valley care? Let's doesn't provide the level of detail or find out. screening that I consider essential. But it might well be the kind of thing San Jose Mercury News THURSDAY. JUNE 10. 1999 VALLEY HOUSING EDUCATION CITY HALL JAMES HORMEL A first key to housing Public-private collaboration becomes a true partnership TIM FOLEY T HROUGH the Silicon Valley Manu- Community Foundation Silicon Valley, grownups are less likely to succeed in the facturing Group, high-tech industry which will administer the fund. The James schoolwork they need for their own high has been saying for years that the L Knight Foundation and the David and Lu- tech future. high cost of housing here is a serious prob- cile Packard Foundation put up some oper- A $20 million fund is no panacea. San lem. Yet when the Housing ating money for administrative and fund- Jose puts that much redevelopment money Trust Fund was started as Editorial raising costs. into its affordable housing program in a a public-private collabora- The supervisors put up the first $2 million year, and by selling bonds will have hun- tive, the early contribu- The opinion - $1 million outright, and the rest as a chal- dreds of millions of dollars to spend on tions came only from the of the lenge grant, which now has been matched. housing over the next five years. public sector. Mercury This spring, San Jose Mayor Ron Gonza- But like San Jose, the trust will leverage Today the trust fund be- News les pledged $1 million from the city. San its money, adding it to private financing and comes a true partnership. Jose has its own affordable housing pro- tax credits to get low-income projects off Four leading technology companies and gram, but Gonzales thought it was impor- the ground. It should stimulate some $200 one major developer together have put up tant to support this countywide approach. million in housing aid overall, helping some the first million private dollars toward the We hope other cities follow the example - 5.000 families, the Manufacturing Group's fund's goal of $20 million, which will be particularly those which, unlike San Jose, Carl Guardino estimates. used to provide first-time home buyers with do little to provide affordable housing with- We see it as a beginning to a solution. low interest loans, build apartments for in their borders. All cities need teachers, Much of the money will be loaned out and low-income families, and shelter the home- service workers, and other low-paid em- repaid, SO it will be a revolving fund. New less. ployees. donations can replenish it as well. The gifts are worth more than their sur- Now the private contribution gives the There are not a lot of alternatives. Polls face value. Adobe Systems, Cisco Systems, fund drive the credibility it needs as it offi- show that people see housing costs as a Applied Materials and Solectron Corp. are cially kicks off next month, seeking gifts problem but don't want to pay higher taxes prominent technology companies, and from other companies, government agen- to help. At the same time, businesses don't Kaufman and Broad is a leading home- cies, foundations and individuals. want to raise minimum wages to a point at builder. They've set a pace that others can Housing costs are industry's problem and which janitors and clerks can afford homes be expected to follow. everyone's problem. They make it hard to at our inflated prices. The trust fund started as the brainchild of recruit educated workers from other areas, The Housing Trust Fund is a certifiable the Santa Clara County Collaborative for but they also affect the quality of life and Silicon Valley solution: a public-private ef- Housing and Homelessness working with work for people here. Productivity suffers fort to patch resources together in creative the county supervisors and the Manufactur- when people are forced to live in substan- ways. Now it's off to a good start. Beginning ing Group. The Group's Housing Action dard conditions or commute long, stressful, today, anyone can donate through the Com- Coalition and the Housing Leadership tiring distances. Children who live in over- munity Foundation's Web site (www. Council also are partners, along with the crowded apartments with stressed-out cfsv.org). THURSDAY JUNE 10, 1999 San Jose Mercury News SANTA CLARA COUNTY BAY AREA WEATHER OBITUARIES EDITORIALS Companies pledging $1 million to housing BY JOHN STAMPER The affordable housing any time. Mereury News Staff Writer But Gregg, whose shelter houses Five Silicon Valley companies to- trust fund has already 36 families for three months at a day will pledge a total of $1 million time. said the trust fund is a good be- to a trust fund dedicated to helping raised $4 million. ginning, one she fully supports. people find affordable housing, Executives from the five compa- bringing the fund to $4 million be- nies said they gave their support for fore its $20 million fundraising cam- The effort is aimed at three areas: a variety of reasons - a major one paign even kicks off. helping the homeless find shelter, being a fear that the area's high cost The five companies are matching helping first-time home buyers with of living could put the brakes on a previous $1 million pledge to the down payments and closing costs, their businesses. Housing Trust Fund by the Santa and helping developers build afford- Officials predicted they'll be able Clara County Board of Supervisors. able rental housing. With $20 mil- to raise the $20 million easily - es- The companies giving $200,000 each lion, Carl Guardino, president of the pecially since they are a fifth of the are Adobe Systems Inc., Applied Ma- manufacturing group. said the trust way there before officially starting. terials Inc., Cisco Systems, Kaufman fund could help 1,000 homeless peo- They will be asking corporations. 111- and Broad, and Solectron Corp. ple find shelter, 800 families buy cal governments, foundations and "We think a healthy Silicon Valley their first home in Santa Clara Coun- individuals to contribute. is a place where people can live and ly and 3,000 families find affordable Individuals will be able to donate work in the same community," said rental housing. on the community foundation's Web Nancy Hendel, vice president of Ap- The homeless will be helped with page, www.cfsv.org, beginning to- plied Materials. "Our community grants, while developers and home day. needs to be home to everybody." buyers will be helped with low-inter- "This project exemplifies the best Along with the donations, the est loans, which will be reinvested of Silicon Valley problem-solving." trust fund today will announce the once repaid. Guardino said none of said Peter Hero, president of the official July kickoff of its t.wo-year the money will be spent until all the community foundation. "We're going campaign to raise the $20 million. money has been raised. to raise this money and raise it The goal is to help nearly 5,000 area The trust fund's numbers are im- quickly." residents with housing costs. pressive, but not when paired with The city of San Jose previously statistics showing a land of the rich Contact John Stamperat chipped in $1 million, and the county unable to care for its poor, said Mar- [email protected] or (403) board of supervisors has contributed garet Gregg, executive director of 271-3730. $2 million, including the pledge grant the San Jose Family Shelter on Las and a $1 million grant given last year Planos Avenue. IF YOU'RE INTERESTED that did not require matching funds. "The need is SO enormous," Gregg More information on how corpora- The trust fund was started two said. "We could triple or quadruple tions. foundations and individuals can years ago by a coalition of local the size of our shelter and people invest in the Housing Trust Fund with groups and business interests, in- would still be coming in." cash, stock or land is available at cluding the Silicon Valley Manufac- There are about 1,000 beds for the www.cfsv.org or by calling Commu- turing Group and Community Foun- homeless in Santa Clara County, nily Foundation Silicon Valley at (108) dation Silicon Valley. with an estimated 4,500 homeless at 278-0270. www economist. com The Economist MAY 29TH - JUNE 4TH 1999 well as their income. The model works on a Deserving causes sliding scale. assuming that poorer Ameri- Recipients of donations, 1998, % cans need to increase their net worth while Religion Education 42.4 13.7 the richest merely want to keep it stable, af- ter allowing for inflation and their spending. Gifts to foundations Altogether, it reckons that individuals could 9.4 afford to give away some $242 billion more a Health year than they do. Half of that amount 9.4 Philanthropy International Human services comes from the 111.000 people whom New- affairs 9.0 1.2 tithing reckons earn more than $im a year Giving your all? Public/Society Environment/ Benefit Organisations and whose total net worth is around $21m. wildlife 6.1 Certainly, Silicon Valley, the temple of 2.9 Arts Total allocated: $179. 31bn 5.9 much of this new money, offers mixed evi- O N THE face of it, 1998 was a tremen- Source: AAFRC Trust for Philanthropy dence of a philanthropic renaissance. A few dous year for American philanthropy. billionaires, notably Bill Gates, have begun Figures released on May 25th by the Amer- 0.1% of the population but 8% of charitable the arduous process of giving away their ican Association of Fund Raising Counsel giving). loot. But most high-tech folk still seem slight- show that charitable giving rose by 11% to a However, many charities argue that the ly more preoccupied with bits and bytes. Ac- record $175 billion. Around three-quarters real test should not be income but net cording to a 1998 report by Community of this came from individuals; the rest from worth-and that the rich are not doing their Foundation Silicon Valley (CFSV), around bequests, companies and foundations. The share. Last year, Standard & Poor's compos- one third of households there earning more only sector to see a fall in giving was the ite index rose by 27%, more than twice the than $100,000 give $1,000 or less to charity. arts-though they still received some $10.5 rate of giving. The gains from the 1990S bull The Santa Clara County branch of the Unit- billion. The AAFRC detects a possible "gold- market have gone disproportionately to the ed Way recently collapsed after donations en age" for charitable giving. rich, with as much as much as 90% of the pa- fell short of expectations. Is that really the case? American giving, per profits going to the top 10% of house- In many cases the problem does not at around 2% of GDP, is certainly generous holds. Very little of these gains-running seem to be miserliness so much as ignorance. compared with other countries (though Eu- into trillions of dollars-has been passed on. As the CFSV report notes, one third of the ropean ones tend to have higher taxes and The most damning evidence comes from "high net worth" individuals in the valley more bigger welfare states). And America's the Newtithing group, a San Francisco non- were paid with shares; but only 7% gave richest people do give more than their share profit organisation, which has constructed away shares, even though there are tax ad- by income (one analysis of 1995 tax returns an economic model showing how much vantages in doing so. Whatever the reason, by the AAFRC showed that people who Americans could "afford" to give away, tak- the golden age still looks some way off. earned $1m a year accounted for just under ing into account their assets and spending as 09/23/99 THU 22:43 FAX 003 as - - - . - - I No provision, T - our the years. Destro Limits - - by - - - - No provider. Would of provision. 14-mition per the years for and individuals: SEE3-mittion over three years for compensions. Gifts Through individual Retirement Accounts of - - By - - - the - - older to Same provision as in Sensta, - 81 -billion over sever years. the planned - would - Allmed The Suliti Insur of - - " - - - - - Policed - provision as in House - which the - in and the years. Versions - by 1 - - - - Policed - - to Senets. Less then $500,000 over the years. Non - - - - - - - - Police - entry provision - in House and 840-milion - the years. In - the - Reque to Foundations of - - - by - - - to - - No provision. I - I No provision. $15 billion - two years. of publicij stock of # by traqual - to 40 per - in 2007, and to 40 par 2008. The proposed would be allective for who de - December 11, 2006. Exemptions from Penaltres for Self-Deating - - Company - - by - - - - Project - Would allow the Secretary of the Demany to and No provision, Same provision as in House. Negligible - - panalty - to private foundations- and people with time the to the participate in The - alreadly does not along for welvers for Instructions violations of will-desing prohibitions or for will-draing arangements that not only benefit as me - - is the - Interest of & foundation. The government world - to publich , notice mying the X - considering an - and - soliciting percents. X Bill Tax Legislation Shows Growing Appeal of Charity Among Politicians Continued from Page 31 Although the proposition died, strict lobbying by bon-profit engs- Mr. Corry, thelawyer for non-prof- misstions. "But what 1 see is this M groups, said the topic is likely is legislation to more of the govern- reserfer mother day-and not creating a partnership with just here of Mr. Buffett's per- I nam-profit community and in- and interests. years. to work together to sarry "Whb the rising stock market, the manage of a dvil society." the value of these investments Stalnbach, - more and more Important, Council as mid Mr. Carry. "With the shifting of solleges of wealth between genera the upon w-and the SMOODEN of Silicon Valley entreprensure-the tax- the of the Barr bill policy lasse arises as to why a form- I changes to sharity and detion shoulds's be able to hold on lows that Congress to more stock as long as it is benefit in 1989. cial la the organization and does be noted that the changes not lead to someone getting as im- them were to restrict chari- proper benefit. The question will foundations, because Con- come up again." thought they were misusing 1 tax privilages. Walving Penalties subscriber's tax legislation The other proposal 8 vast difference in the private foundations passed approach and attitude of law- the House and it into the mahers, Mr. Steinbach said "Ons Government na) bill bught by any coult and my this in the high-water tion but would affect theme mark for the charitable communi- Lawyer Milton Cerny says the tax bill that Congress passed is a sign of "the government became law. The provision 4 in the last 30 years," he mid. creating a partnership with the non-profit community and individuals to work together." would allow the Secretary of the V you are looking for the tax Treasury to effectively grant ROE: againds for the not-for-profit com- better - of their retirement-in atively affect charitable giving, thes, Congress did not focus entire- emplism from penalty Lane to munity. the items that are in the terms needs and how much retire- but there are others who have by - fund-raising issues. Among vale foundations-und people with area these that were sig- ment money they could really at. looked and have resched either a other things, lawmakers decided to close time to them-that allicantly autailed or deleted from ford to give away. neutral or apposite conclusion," ha relax restrictions on the amount of pale in self-deeting transactions it-will be the focus in coming Still another version of the bill said. "So we just don't know for lobbying that charities can do. The law currently does not allow years," be added. "Even if there is that was eventually dropped sure what to expect." A provision in the final bill the Treasury Secretary to water no tas bill snacted this year, get- would have allowed people to would remove limits on the the prohibition on self-desling for ting this far will serve as a plat. make Lax-free contributions from Deductions for GMs amount that organizations could organizations or people who inad- form from which to work in the retirement accounts through such Denors in all income brackets spend on "grasereots lobbying"- vertently violate the rules. Nor can future. The preparals are out planned gifts as charitable re- came tantalizingly close to seeing efforts to rally popular opinion in the government assempt those who there, the revenue antimates have mainder trusis. Congress eventu- Congress adopt smother provision support of or in apposition is a engage in-or who plan to de met been made, Congress has thought ally duckled that only. gifts made long sought by charities MIL Chariling now allowed to even if such transactions are arga- about it We'll be back." directly to charity would be at spend no more than 15 per come of ably beneficial for the foundation After Congress returns to work lowed under the measure. their Inderal income returns is thair total labbying expenditures Par instance, if an official of a after Labor Day. lawmshers are Some charity leaders privately claim a charitable deduction for on gramreots adveracy. Mr. Hase- foundation offered to rent space w expected to try. to negotiate with questioned whether the narrowing donations. a said charities welcomed the his fund at a below-market prior," President Clinton to ageste a tax of the provision-the higher age The Senate last month voted to change. "IL would give non-profts be would be self-dealing by using. package that be would be willing limits and rejection of planned allow people who don't itemine is the Signibility they may need toin. his pusition to secure a financial ) over but years. to sign. Such a deal could include gifts-had so watered down the claim deductions for donations of relve themselves in the public-pal- benefit. But the foundation would many of the provisions in the bill Incusure that non-profit organism- up to a total of $50 for individuals ky process," said Mr. Hamill. probably have to pay more for the House and Senate passed, but tions would not see much benefit and $100 for married couples, of an space owned by another landlord. But most officials were anthusi- colimated cout of 1.3-billien over Foundation Provisions is is possible that the negotiations Under the provision, the govern- will fail and that no tax bill will be astic Janne G. Gellagher, deputy three years. But the House did net Members of Congress also ment would have to publish a no- passed this year. general counsel of the Council on vote on the matter, and a confer- delived into foundation matters. In tice saying that it was considering. Foundations, said ber arganization sace commities that irened out Eact, a pair of controversial provi- an exemption and was soliciting Retirement Accounts hoped that the provision would an- differences between the Senate tiere-ene passed by the Senate comments. la perhaps the most far-reaching courage people to use their I.B.A. and Homes bills abandoned the and one by the House-look pri- Some observers speculated that years. provision in the House-Senate ansets to establish funds at com- provision. vale foundations by surprise and the provision was drafted to help a bill, lawmshers voted to allow pag- munity foundations People who don't itemise were left observers scratabling to figure specific foundation that Congred pla age 701/2 and older to make tax- "We'd prefer that people be able allowed to claim charitable deduc- out the effects. did not identify in the bill. Even SO, free withdrawals from individual to use planned-giving techniques," Gone until 1986. But they load that One draw national attention be- they mid it was a retirement accounts for denations said Ma. Gallagher, "but the fact option after the tax code was over- fore it was deleted from the com- idea that should be effective and made directly to charities, effective that this is in the bill at all is a hauled that year, and non-profit promise bill. The proposal would helpful to funds for distributions made on or after huge step forward." organizations have tried to got it have allowed private foundations January 1, 2003. Others said that they thought back over since. to increase their holdings of public- Too "Subjectiv Under federal law, Americans the 1.B.A. provision got a needed lift Even with the defeat, "organita- ly traded voting stock of a corpora- But others were net so may withdraw funds without pen- as 11 moved through the Republi- Lions should feel good that the of tion that it receives by bequest Conred Rosenberg, a former LES - alty from LRA.'s when they reach can-ted Congress when George W. fort to talk about giving non-tiem from the maximum of 20 per official, wrote in the EO Tax Jun- years. age 59½. Bat people are subject to Bush, the GOP Governer of Texas, izera a charitable deduction is be cent-a limit in place since Con- nal that he expected that most pul. income Lax on the amount taken listed its adoption as one of his Lop ginning to bear Gruit," said Mr. gream made major tax-law changes vale foundations would be return out, even if they give funds immo- priorities if be is elected President Hamill of Independent Sector, in 1969-to 40 per cept in 2007, tast to ask the government for distaly to charity. pointing out that that topic, tos, and to 49 per cant in 2008. examption for self-dealing acts bei The legislation would sllow peo- Estate Taxes has popped up on the Presidential The idea was drafted by Sen. cause they would not want in ple age 701/2 to roll over I.B.A. as- The House-Senate provision to campaign trail. "You are starting Bob Kerrey, a Nebreska Damo- tract the LES's attention and wels directly to charities without phase out the estate tax over the to see an idea that's been discussed wal, to help foundations increase come presible Largets for audits having the funds count as taxable next decade worries fund raisers and promoted by profits begin their assets. But, according to Con- Mr. Hosenberg said be for income. who say that wealthy donors have to take hold." gressional Quarterly, Senator Ker- any Unkering with the long sti An cartier version of the Ingista- often been motivated to give as a Charity officials also have hopes my had another goal: helping War- ing self-dealing rules, which tion would have given the option Way to reduce the amount of their for the eventual passage of another - Buffett, the Omaha investor enected in the 1968 tax laws to more people-permitting those estate Lanen. provision that cloured the Senate and philanthropist, use a private new provision, be said, not ages 59% and older to roll over But Matthew Hamil), vice-presi- only is be eliminated from the 6. foundation to shelter his stock in a sentially ask the government their I.R.A. a Congress appar- dent for public policy at Independ- gal bill: a gradual Increase in the helding company-thet is, la keep make too many subjective ently settled on the higher age ant Sector, a national cealition of percentage of income that Individ- the stock nh from estate taxes ments in which it either threshold because of concern that charities and grant makers. point- uals and corporations may claim and other ancroachmants by the by the organization that by younger people might withdraw ad out that connomists do not agree each year in charitable deductions, Internal Revenue Service after his session of all the facts, or too much retirement money for on what would happen if the estate a step that could encourage docors douth Mr. Buffett, who owne balky and tion up proposed charity and find themselves years tas were eliminated. to increase their donations over 60 per a of the holding actions that may indead be, If later with insufficient income. Old- There are come who argus that time. overpacy Barkshire Hathaway, did the facts be known, a to harm would neg- On matters concerning chart- not return a all seeking comment foul kind of deal." WHITE HOUSE PHILANTHROPY CONFERENCE WORKPLAN-08/06/99 OCTOBER 22, 1999-EAST ROOM, APPROX. 150 PARTICIPANTS DELIVERABLE MANAGER(S) DEADLINE STATUS Determine Conference Program Shirley/ July 30 Date/location Confirm location and date Ellen confirmed with Select title (suggested-Gifts to the Future: New POTUS and Philanthropy For the New Millennium) FLOTUS Create format-number of sessions, speakers/town Program structure hall/panels, agenda, etc. still TBD Draft Budget/Secure Fiscal Agent Malcolm/ August 6 Calls made/ Draft budget Leela decisions pending Identify, contact and confirm fiscal agent(s) Recruit in-kind support Sun Microsystems Call Jill Iscoll Shirley/ contacted Melanne Determine Satellite Downlink Partners/Process Malcolm/ July 16, budget Michael Draft budget Leela and partners Grantham to be Secure partners hired as downlink Create and maintain website End of August, coordinator, registration Aug 16-Oct. 29 Create registration process and manage cybercast process ARC and United Way taking lead in organizing quality forums with local constituencies; joint letter sent 8/06 Research/Create Invitation List Malcolm/ Leela July 14 Invitee categories Identify individuals/entities to invite across four identified invitee categories For each invitee provide: contact name, MaryEllen/ July 23 Draft of WHMC organization name, address, phone, fax and email; Kim list received by and briefly describe why person should be invited FLOTUS office, COB 7/14 New master list to be reviewed 8/05 Mail Invitations Kim/Social Sept. 14 mtg. Office Research/Select Speakers Malcolm/ First draft of Fist draft Based on agenda items, research possible speakers Leela/Kelly list to EL and complete/to be For each identified speaker, gather contact SS for review, reviewed by team information and bio COB 7/30 Locate prior speaking engagements/articles written as a means to preview Research/Select Philanthropic Heroes Malcolm/ First draft of Fist draft Identify 20-25 individual philanthropic heroes, Kelly list to EL and complete/to be with diversity in age, race, ethnicity, sex and type SS for review, reviewed by team of giving (e.g., human services, education, COB 7/30 arts, etc.) For each candidate include: -contact name, organization, address, phone, fax and email; and short vignette of their heroic giving -supporting materials (e.g., article, videos, etc) Generate List of Research Needs/ Malcolm/ First draft of Research Polling Needs Kelly/Leela/ one-pagers to conducted/ Identify necessary information (e.g., visuals, Rupa/Jessica/ SS for review, need to select handouts, etc.): Rachel COB 8/06 relevant info. -Polls on people's views of giving -Data on individual giving First draft of -Surprising facts research -Patterns by different ethnic groups/other groups summaries to SS, -Role of religion 8/10 -Innovative Assign topics and create one-pagers on each Contact video producer Leela July 30 Sunburst Creative Determine video concept and list of WHMC/SS September 10 to produce video interviewees Complete filming Sunburst September 24 Edit and deliver rough-cut for first review Sunburst October 1 Outline Promotion Plan Shirley/Ellen August/ To begin Develop press releases September Determine timing Create magazine insert Create Conference Materials Leela Draft by end of To begin Generate list of what to include in conference August packets/press materials (e.g., research data, resource lists, graphs, contact names, follow up information, etc.) Generate List of Research Needs/ Malcolm/ First draft of Research Polling Needs Kelly/Leela/ one-pagers to conducted/ Identify necessary information (e.g., visuals, Rupa/Jessica/ SS for review, need to select handouts, etc.): Rachel COB 8/06 relevant info. -Polls on people's views of giving -Data on individual giving First draft of -Surprising facts research -Patterns by different ethnic groups/other groups summaries to SS, -Role of religion 8/10 -Innovative Assign topics and create one-pagers on each Contact video producer Leela July 30 Sunburst Creative Determine video concept and list of WHMC/SS September 10 to produce video interviewees Complete filming Sunburst September 24 Edit and deliver rough-cut for first review Sunburst October 1 Outline Promotion Plan Shirley/Ellen August/ To begin Develop press releases September Determine timing Create magazine insert Create Conference Materials Leela Draft by end of To begin Generate list of what to include in conference August packets/press materials (e.g., research data, resource lists, graphs, contact names, follow up information, etc.) Develop Follow Up Plan/Deliverables August/ To begin Respond to Treasury Ellen September Contact CNS Shirley Call Foundations for deliverables Ellen/Melanne Determine conference "challenge" to be issued Assist Speechwriters Malcolm October 7 To begin late Sept. Research key issues Provide acknowledgments/talking points Manage Overall Logistics August 31 Production team Follow up with POTUS request [Done] MaryEllen contacted Determine Social Office contact [Done: Kim W.] [Sunburst Select production team, reserve satellite time WHMC- Creative], formal Determine audio and visual needs Leela/Anne paperwork to be drafted confirmed Develop Comprehensive Timeline Leela / July 9 Workplan drafted Create overall workplan-with deliverables and MaryEllen deadlines Finalize workplan and assign manager to monitor Shirley/Ellen July 16 Completed-7/14, to overall progress [Done: Leela, until August 27] be updated weekly IN BRIEF: MANAGING E.C. Questions arose after a dia- White House Plans mond-mining company owned by Jossey-Bass Tod Giving Conference Mr. Robertson, the African Devel- opment Company, used the planes First Lady Hillary Rodham in its work. Despite Mr. Robert- Clinton is organizing a first-ever son's stipulation that all company White House conference on philan- travel be carefully accounted for The thropy, scheduled for late Octo- and that the charity be fully reim- ber. bursed, investigators said his in- Fundi The meeting, tentatively titled structions had not been followed. Plann "Gifts to the Future," will focus on Still, the investigators said they A Working Mo individual donors and will empha- found no evidence of an intentional the Dollars size "the importance of innovative attempt to misuse charitable as- ways of passing on the tradition to sets. They also said that donations future generations," a spokeswo- from Mr. Robertson and the Afri- man for the First Lady said. can Development Company to Op- The White House Millennium eration Blessing more than offset Council is working with the First the amount the charity should Lady's office to plan the event. Part have been paid to cover the use of A perfect bluepri of the meeting will be devoted to the planes. What's more, investi- nonprofit organiza honoring "heroes of all ages and gators approved the steps the char- use in building a backgrounds who have made ex- ity outlined to improve its record- ing campaign, traordinary gifts," according to the keeping in the future and prevent Carole Schaad, spokeswoman. The history of phi- conflicts of interests. Rhinebech Chan lanthropy and the ways it has The Office of the Attorney Gen- Music Society changed in recent years are also eral concluded in its report that expected to be highlighted. "the breakdown in bookkeeping The spokeswoman explained the and accounting practices" amount- conference by saying that it "really ed to "an unfortunate blemish on a fits into the First Lady and Presi- charitable organization with an dent's strong commitment to the extensive record of humanitarian non-profit sector and to promoting activities throughout the world." active citizenship." THE More details are expected to be GOVERNAN announced in the next month or SO. Trustees Step Down PHOTOCOPY PRESERVATION PN.../99) -- President and Mrs. Clinton Announce White House Conference on Philanthrop Page 1 of 2 CURRENT ISSUE REVIEWS RFPs. JOBS SPOTLIGH: SEARCH PND ARCHIVES SUBSCRIBE FC HOME PHILANTHROPY NEWS DIGEST Vol. 5, Issue 38 front page September 21, 1999 President and Mrs. Clinton Announce White Headlines House Conference on Philanthropy Gates Foundation Establishes SI Billion Fund for Vincoits In response to research indicating that philanthropy is Scholarships a tradition that needs to be actively fostered and sustained, President and Mrs. Clinton have announced National Urban League the "White House Conference on Philanthropy: Gifts Distributes $25 Million Lilly to the Future." The conference, to be held in the East Endowment Grant Room of the White House on October 22, 1999, is Hispanic Giving Comes Into designed to highlight the American tradition of giving, Focus discuss the diverse and changing face of philanthropy, and explore ways to sustain and expand the tradition SBC Communications for future generations. A portion of the conference Amounts Grand 00 Hispanic will be broadcast via satellite, providing communities Chamber ... Commerce across the country with an opportunity to participate in a dialogue on the subject. President Yes. Clinton Anneunce White House Conference GH Philanthropy Conference organizers plan to broadcast 90 minutes of the four-hour conference via satellite, with a tentative Center for Y2K & Society start time of 1:30 p.m. EDT. Conference participants, Releases Preliminary Community both at the White House and via satellite, will Preparedoess "Report Card" represent the wide range of racial, ethnic, economic, Information and religious groups involved in American philanthropy. CompuNentor Offers Sparish and Portuguese Versions of "Y2K Workbook for Nonprofits" The White House Conference on Philanthropy is a program of the White House Millennium Council, Community Foredation for which the President and Mrs. Clinton created in 1997. Southeastern Michigan Funds Innovative Arts Partnerships For general information regarding the conference and guidelines on hosting a satellite downlink site, call New England Council 10 Study Economic Impact of Arts (202) 395-7112. To register to become a satellite downlink site or view the conference broadcast via Knight Formation Amnounces cybercast, visit: http://www.giltstothefuture.gov $17 Villion inn Jonenatism Grants "White House Conference on Philanthropy. White Former Prodigy Chairman Helps House Press Release 9/14/99. Idabo Hights Center FC002921 Ameritech Awards Grant 10 Fund Nonviolence Education Copyright ©1995-1999 The Foundation Center New Survey Reports Public 09/23/99 THU 22:43 FAX 002 Governance and Regulation Tax Bill Shows Appeal of Charities Many provisions to foster giving made final version-or came close By GRANT WILLIAMS WASHINGTON RESIDENT CLINTON hates the tax bill Con- P gress passed this month because he thinks its tax cuts are too charitable to the rich. But the bill is a big hit with many of the nation's non-profit organizations-which received numerous benefits in the legialation. Among the most popular: a provision to allow donors to make tax-free withdrawals from individual retirement ac- counts to benefit charity. (Details of the legislation are provided in a table on Page 32.) Even with the prospect of a Presidential veto of the bill, charity officials are already declaring a measure of victory. They say it is a good sign for future tax debates that a number of charity benefits made it into the final bill-or came very close to being included in the compromise measure that passed the House and the Senate. Two provisions that the Senate approved, but that were deleted in last-minute negotiations, had the potential to attract significant donations to charity: Senators would have offered a new tax break to people who don't itemize on their tax returns and would have gradually increased the percentage of income that individuals and corporations are al- lowed to write off each year in charitable deductions. Not 80 pleasing to many fund raisers is a provision in the House-Senate measure that would eventually eliminate estate taxes-a move that might put a damper on charitable gifts from estates of wealthy donors. A Mood Swing With the bill, Congress demonstrated that it wants to help non-profit groups raise more and more money-in part 80 that charities can relieve some of the burdens on government. Politics was another reason charities did 80 well: In recent months sever- al of the candidates for the 2000 Presidential nomi- nation have called for increases in support for non- profit organizations (The Chronicle, August 12). The mood of the country is changing," said Milton Cerny, a Washington lawyer who represents non- profit organizations. "In recent years there has been an aggressive mood in Congress against charities— attacks on them," he said, including efforts to re- Continued on Page 33 Sheldon E. Steinbach this of is the the American high-water Council mark for on Education says of the tax bill: "One could say the churitable community in the last 30 years." TO Shinley FYI Should also Tumer/Wirth FINANCIAL TIMES WEEKEND AUGUST 28/AUGUST 29 1999 COMMENT & ANALYSIS The new philanthropy J ohn D. Rockefeller, in the Gates Foundation. "It's hard to words of Winston Chur- The generosity of Bill Gates recalls an earlier era of prove a negative, but it really chill, felt no need to pay isn't so." "hush money to Heaven". charitable giving, says Richard Waters Perhaps not. But it is notewor- Many others saw it differently. thy that Mr Buffett, who has also The dour Baptist who created promised to give away most of Standard Oil was the most vili- his personal fortune, has not fied businessman of his genera- opened his pocket book yet. tion, the archetype of the robber Unlike Mr Gates, the cherubic 68- baron set on enriching himself at year-old does not have a public the expense of society at large. image in urgent need of repair. Yet by the 1920s he had given Whatever the questions over away enough money to cement the timing of Mr Gates' move, it his reputation as the greatest should not be allowed to hide the philanthropist of the century. bigger issue. As in Rockefeller's It is no wonder critics claimed Rockefeller's charity was driven day, philanthropy, often on a massive scale, is alive and well in by guilt, or by an attempt to a country where private wealth boost his lamentable public image. has always brought with it oner- ous public obligations. The parallels with William Other countries have their H. Gates are, on some levels, charitable traditions, but none uncanny. Microsoft's chairman seems to rival the US in scale or has given away $15bn since the significance. From Europe, US start of this year, making his philanthropy is often seen as a $17bn family foundation the big- reaction to a déficient welfare gest in the US and the second system. Critics argue that charity biggest in the world. (Only the in the US has grown to fill the Wellcome Trust in the UK is big. void left by a weak social safety ger, at $19bn.) net, leaving private individuals Mr Gates has none of the fierce to take on tasks that would, in a moral stringency or religious better-organised society, be the vehemence of Rockefeller. Yet his province of government. battle with the US Department of That is a view roundly rejected Justice vies with Standard Oil's in the US. "Bill and Melinda are for the title of Anti-Trust Trial of the Century. very aware of what the proper sphere of government is." says Like Rockefeller, Mr Gates sees Mr Faris. He adds that their gifts himself as a visionary business- are made either to tackle issues man whose company has bene- that market forces alone cannot fited millions of people only to solve for instance, the develop- find his success the subject of ment of vaccines to tackle ill- ealousy and his business prac- nesses that are rife in the devel- tices the target of bureaucrats. oping world - or to jump-start Like the oil monopolist before programmes that should eventu- him, Mr Gates' public travails ally be taken on by have been accompanied by a government. lowering of generosity. The Microsoft co-founder is not Pinn There is a striking similarity, again, with the ideas of Rocke- lone. America's irrepressible feller, who believed that charity conomic boom in the 1990s has had its biggest impact in the ushered in a new philanthropic areas of health and education, era, with an outpouring of chari- since this would give people a able works to rival the days of better shot at tackling their own Rockefeller, Henry Ford and economic disadvantages. A Andrew Carnegie. Rockefeller gift led to the first While those earlier charitable successful vaccine for yellow lynasties sprang from fortunes fever; a Gates donation is sup- nade in oil, automobiles and porting the quest for a vaccine steel, the new ones reflect the profits are up," says Timothy CNN challenged the likes of Mr a social responsibility and a against malaria. Carnegie built ources of industrial wealth of McClimon, head of the AT&T Gates and Warren Buffett, the necessity. "The man who dies public libraries across the coun- he late 20th century: computers Foundation, whose grants topped investor who ranks as the thus rich dies disgraced," the try; Mr Gates is wiring them for the second biggest family foun- those of other corporate institu- world's second richest man, to steel magnate argued. the internet age. lation, the $9.5bn Packard Foun- tions last year. "The more money use more of their money for With Mr Turner himself now With $17bn and more, appar- lation, sprang from the wealth companies make, the more they social good. two years into his pledge to give ently, to come - the Gates Foun- created by the Hewlett Packard give away." "What good is wealth sitting in $1bn to the United Natic is ever a dation is about to catapult pri- empire), hedge funds (George Not surprisingly. the wave of the bank? It's a pretty pathetic decade, Mr Gates has delivered vate charity into a new Soros) and duty-free liquor cash has produced its problems. thing to do with your money," his resounding response. dimension. The amount is, for Charles Feeney, the founder of Charity frauds have become the man nicknamed the "The pressure was on him," instance, enough to buy every OFS, who has now given away more common - most notably says Dorothy Ridings, president American an upgrade to Win- nore than $4bn). with New Era Philanthropy, a of the Council on Foundations, dows 98, Microsoft's personal While these are the names that foundation that tricked some of 'What good is wealth which represents the interests of computer operating system. atch the headlines, the surge in the biggest grant-making bodies many of the biggest private US Most of that money will be private wealth created by the in the country with its promise to sitting in the bank? foundations. "And I would not tucked away for the future: like ong bull market has produced a match their gifts with those of its downplay the fact that he had his Rockefeller before him, Mr Gates nuch more widespread outpour- own. It's a pretty pathetic problems with the Justice wants a legacy that will stretch of giving. The number of pri- Some also fret that the not-for- Department." The timing of the for generations into the future. ate foundations in the US has profit world lacks the profes- thing to do with donations, in the midst of the But, with a requirement on all loubled since the stock market sional management and account- Microsoft anti-trust trial, "was foundations to give away at least egan its rise in the early 1980s. ability to handle its new-found your money' perfect for him," she says. 5 per cent of their assets each According to the Foundation riches effectively. Unsurprisingly, people close to year to qualify for tax relief, the Center in New York, the amount The similarities with the phil- Mr Gates deny that his generos- annual donations of the Gates Americans donate to charities anthropic largesse of the 1920s is Mouth from the South declared. ity is self-serving. Patti Stonesi- Foundation will still be more ach year has doubled during the not surprising. The private for- Mr Turner's comments carry fer, the former Microsoft than double those of the Ford 990s, reaching nearly $20bn last tunes that have sprung from the an echo of Andrew Carnegie, employee who now runs the fam- Foundation. ear, information revolution are every whose views were said to have ily foundation along with Mr Their early gifts apart, there Big companies have also been bit as striking as those that inspired Rockefeller. According Gates' father, says the billionaire are few clues about where Mr ushing to give away more, emerged from the great wave of to Ron Chernow, author of Titan, had always planned to give away Gates and his wife hope to make hough few go to the lengths of nation-building in the early years a recent biography of the oilman, most of his Microsoft fortune, their mark for posterity. At the Chicago retailer Dayton Hudson, of the century. And with those Carnegie feared that the chasm now worth around $100bn. moment, the new money is which donates 5 per cent of its fortunes comes responsibility. between the new industrial for- But what about the timing of "essentially uncommitted", says innual profits. It was Ted Turner who first tunes of the age and the wages of the gifts, in the midst of the trial? Mr Faris. The requests for dona- "The economy has been doing turned up the heat on Bill Gates. workers would trigger a social "There is not a manipulative tions are doubtless already flow- ery. very well. and corporate Three years ago, the founder of backlash. Philanthropy was both agenda," says Jack Faris at the ing in. MEMORANDUM SEPTEMBER 15, 1999 TO: Shirley Sagawa Ellen McCulloch-Lovell Sharon Kennedy-Gill FROM: Malcolm Richardson SUBJECT: VIDEO PROFILES Here follows a list of some outstanding individuals and groups who should be considered for the introductory video. I have listed more than 5 on the assumption that we will need a slightly broader pool in case someone turns down our request to film or our telephone conversations with them raise problems we haven't previously foreseen. I will find more detailed contact information as soon as possible and update this memo with that information. 1. Matel "Mat" Dawson. Detroit, Michigan Ford Motor Company forklift driver who has given over $1 million in the course of his life to provide scholarships and educational opportunities that he himself never enjoyed. Dawson continues to work in his 70s, lives in a modest house and invests his salary and savings solely to give to such causes as the United Negro College Fund, Wayne State University, and Louisiana State University. 2. Regina Jennings West Virginia Custodian who earned only $10,000 when employed by the state university. Jennings too saved and invested her modest savings and donated the latter -- $93,000 - to the university law school where she worked. Ann Castle found this information for us. 3. Jean Fairfax Phoenix, AZ A champion of community foundations and reaching into minority communities, Jean Fairfax is one of the leading African-American philanthropists. Approximately 70 years old, Fairfax is still an active figure in national efforts to promote philanthropy. Recommended by the Joint Affinity Groups as a possible speaker as well. Eloquent and articulate. 4. Myrian Arguello Bodner Louisville, KY. Mrs. Bodner typifies much of the country's "hidden" giving. When hurricanes and tropical storms devastated Nicaragua last year, she quickly organized a fund-raising and supplies drive among her neighbors and in the Central American immigrant community. She raised thousands of dollars from donors who probably will never claim these gifts on tax forms. Suggested by WHMC intern Olga Arguello, her niece. 5. Matthew Nonnemacher Hazelton, PA. When eleven years old, Nonnemacher was inspired by the local United Way drive to challenge his family and friends and townsfolk to raise a million pennies. ($10,000). Sending letters, posting notices and collection jars in local stores and restaurants, he succeeded in raising nearly twice his goal. Recommended by United Way of America. 6. Katie Kurtz Chicago, IL. This ten-year old girl began collecting household goods and toys and other items for distribution to the poor. The Kosovo crisis prompted her to raise both funds and goods for refugee relief, and soon she transformed her family's home into a collection point for thousands of dollars worth of aid. Hailed by Oprah Winfrey, she was recognized last year as one of "Oprah's Angels" where our interns found her story. 7. Gil Castellanos Elmhurst, IL Another enterprising youth, Castellanos was also moved by stories of refugee suffering and organized his fund-raising drive around Balkan relief. Castellanos, with help from his family, challenged the residents of Elmhurst to raise $1 per inhabitant or $40,000 for relief efforts. Recommended by the American Red Cross national headquarters. 8. Shamika Darisaw Flint, Michigan Now in college (at the University of Michigan) Shamika Darisaw could represent the Michigan community foundation program, funded by the Kellogg Foundation and administered by the Michigan Council on Foundations, which pairs youth advisory committees with community funds in a wide variety of localities. Recommended by the Michigan Council on Foundations as an articulate champion of youth involvement, she could describe this educational program and the importance of teaching philanthropy. 9. Youth advisory committee/Community Foundation-Silicon Valley. A group portrait. Filming this committee in San Jose might help give us more geographic and ethnic diversity - most of the members are young Asian Americans and Hispanics - and would allow us to paint a portrait of giving in Silicon Valley that is definitely not the one that comes to mind when this region is mentioned as a center of philanthropy. Peter Hero has suggested we profile this project, though he has not pushed it hard. 10. Harrison Steans and the Steans Family Foundation Chicago, IL Harrison Steans fits the conventional image of a philanthropist. A Chicago banker, he made a fortune when his small banking firm was bought by a regional bank chain. Steans created a family fund and devoted himself to philanthropic activities. But the stereotype ends here: he moved the foundation's office from State Street in the Loop to an inner city neighborhood, near the housing project and communities where he and his family - 3 daughters and wife - decided to concentrate their attention. The entire family is involved in decision-making and has apparently leveraged tremendous resources for their projects. Strongly recommended by the MacArthur Foundation and by Elan Garonzik of the Mott Foundation as an example of what one dedicated funder can do to show larger organizations the way. MEMO FOR SHIRLEY SAGAWA MARYELLEN McGUIRE MALCOLM RICHARDSON LEELA DESOUZA FROM : ELLEN McCULLOCH-LOVELL DATE: 8/30/99 RE: Philanthropy proposal Mickey Ibarra would like us to include a state and local government component to the philanthropy conference. Please see the attached memo and let's discuss at our next meeting. ADMIN THE WHITE HOUSE CC! Malcol. Assistant to the President and Director of Intergovernmental Affairs ELLEN - I asked John it to hear from you, and I wish you well in your Monation to ng information regarding the Philanthropy Conference prepare this memo. orward any detailed information or specific names to you He WAS our IGA iic argument that state and local governments would on concerning the changing role of philanthropy. A5 dive for at HHS. thrapic partnerships with government to raise public to provide policymakers with needed information and We ague that state access to, and the effectiveness of, public programs; to city development; among many, many other projects. and local officials it be considered a substitute for, government at any level, could CM to bute to es, complement public strategies in important ways, and on to state and local governments continues in many nections to state and local officials will only increase. The Philan Theory h states and localities include: consider conference. Pluse cities on expanding employment opportunities for low- vice systems reform, and with neighborhood groups and gies. Casey is currently launching a major project to ities to work together in an unprecedented manner that Mrikey solated low-income neighborhoods. in, and numerous other foundations have worked with years to enhance public awareness about the importance rvices to young children. Successful efforts flowing from K referendum led by Rob Reiner to increase county funding for early childhood programs, Governor Hunt's Smart Start expansion of Head Start and other quality early childhood programs statewide, Governor Dean's expansion of comprehensive health and social services to all preschool children, and Ohio's dramatic expansion of Head Start with state dollars. 0 The Rockefeller Foundation is working with city governments and public housing authorities across the country to provide comprehensive employment services and other supports to residents of public housing, focusing on one building or project at & time, o The Robert Wood Johnson Foundarion is funding a number of health programs that include state and local government partnerships, c.g., its "Covering Kids" campaign is establishing public-private conditions in every state to enroll children who are cligible for Medicaid or CHIP but have not been enrolled, and its support of Hillsborough County (Tampa Bay). Florida, and other local governments that are exploring innovative ways to patch together health care plans for their uninsured. UE 13:40 FAX 202 456 6472 ADMIN 10-1999 01:31 GUMC IHCRP CC: Malcol NOTE TO MICKEY IBARRA FROM: John Monahan DATE: July 27, 1999 RE: White House Philanthropy Conference Thanks so much for calling last week. It was great to hear from you, and I wish you well in your recruitment efforts. As you requested, I have taken the Liberty of sharing information regarding the Philanthropy Conference with some of my colleagues at Casey, and I will forward any detailed information or specific names to you directly. As we discussed, I strongly agree with your basic argument that state and local governments would have a great deal to offer in any public discussion concerning the changing role of philanthropy. As you know, there are numerous examples of philanthropic partnerships with government to raise public consciousness regarding important policy issues; to provide policymakers with needed information and analysis on a wide variety of subjects; to improve access to, and the effectiveness of, public programs; to leverage public and private resources for community development; among many, many other projects. While philanthropy cannot replace, and should not be considered a substitute for, government at any level, foundations can fill crucial gaps in public resources, complement public strategies in important ways, and catalyze public initiatives. Moreover, as devolution to state and local governments continues in many policy domains, the importance philanthropic connections to state and local officials will only increase. Examples of philanthropic efforts that partner with states and localities include: o The Annie Casey Foundation has worked with cities on expanding employment opportunities for low- income families, with states on public human service systems reform, and with neighborhood groups and local governments on community building strategies. Casey is currently launching a major project to encourage public and private players in various cities to work together in an unprecedented manner that will strengthen families and improve services to isolated low-income neighborhoods. 0 Carnegie Corporation, Kaiser Family Foundation, and numerous other foundations have worked with governors and state officials over the last several years to enhance public awareness about the importance of early childhood development and to expand services to young children. Successful efforts flowing from these initiatives include the California tobacco tax referendum led by Rob Reiner to increase county funding for early childhood programs, Governor Hunt's Smart Start expansion of Head Start and other quality early childhood programs statewide, Governor Dean's expansion of comprehensive health and social services to all preschool children, and Ohio's dramatic expansion of Head Start with state dollars. 0 The Rockefeller Foundation is working with city governments and public housing authorities across the country to provide comprthensive employment services and other supports to residents of public housing, focusing on one building or project at a time, o The Robert Wood Johnson Foundation is funding a number of health programs that include state and local government partnerships, E.g., its "Covering Kids" campaign is cstablishing public-private conditions in every state to enroll children who are cligible for Medicaid or CHIP but have not been enrolled, and its support of Hillsborough County (Tampa Bay). Florida, and other local governments that are exploring innovative ways to patch together health care plans for their uninsured. TUE 13:40 FAX 202 456 6472 ADMIN 1999 01:52 ITMM o Over the past three years, the Joyce Foundation has funded an ongoing series of presentations and discussions for Midwestern human service officials struggling to implement welfare reform. o The Kellogg Foundation is funding a number of health reform programs centered around local public health departments and public hospitals, o A number of smaller foundations are devoting a substantial portion, if not virtually all, their resources to supporting a wide range of public sector parmerships and direct aid programs targeted to particular communities. For example, the Steans Family Foundation is devoting virtually its entire capital to assisting people in the North Lawndale neighborhood in Chicago. o In a number of cities, such as Cleveland, Chicago, and San Francisco, there are long-standing ties between city and county governments and local community foundations that have led to housing development. commercial business expansion. and other types of civic reform efforts. a The national public interest groups have countless relationships with various foundations. For instance, the Annie Casey Foundation supports the National League of Cities in maintaining a resource center for local officials interested in improving services to youth and families. I hope this information is helpful to you in considering the potential role of state and local officials at the upcoming Philanthropy Conference. If you need further information on these projects or contact names, please call me. As I noted above, 1 will forward additional information as I come across it Please take care of yourself. I can be reached at 202-687-0880 or 410-547-6600. Thanks. TOTAL P.03 MEMO FOR SHIRLEY SAGAWA MARYELLEN McGUIRE MALCOLM RICHARDSON LEELA DESOUZA FROM : ELLEN McCULLOCH-LOVELL DATE: 8/30/99 RE: Philanthropy proposal Mickey Ibarra would like us to include a state and local government component to the philanthropy conference. Please see the attached memo and let's discuss at our next meeting. 2000 6/16/99 WHITE HOUSE MILLENNIUM COUNCIL Honor the Past-Imagine the Future Shidey - Mor seporte on philanthropy! The note book contains th report on minority giving allended to by several of our advisers, So you this ofternoon! Malesla 7/16/99 from James B. Argue, Jr., urging you to do whatever you can for legislation that would allow transfers of IRA assets to charitable organizations that are eligible to receive deductible charitable gifts. This would also benefit the UMC's Board of Global Ministries. Press reports indicate that the Listening Tour is a masterstroke. He would be delighted to do whatever he can to help. See Respond 1 CC to Nicole Rahner re Idea File; NRN Shiney - This might be more appropriate for you to review ve: charitable tux status let we know. Nicole THE WHITE HOUSE August 12, 1999 James B. Argue, Jr. The United Methodist Foundation of Arkansas 5300 Evergreen Drive Little Rock, Arkansas 72205 Dear Jim: Thank you for your letter regarding legislation to allow transfer of IRA assets to charitable organizations. I value your thoughts on the matter and am passing this information on to a member of my staff to follow up. I appreciate your concern about the considerations before the Senate Finance Committee and, as always, your able leadership of The United Methodist Foundation of Arkansas. With best regards and gratitude for your friendship and continuing support, I remain Sincerely yours, Hillary Hillary Rodham Clinton The United Methodist Foundation of Arkansas 5300 Evergreen Drive Little Rock, AR 72205 501/664-8632 Fax: 501/664-6792 July 16, 1999 Mrs. Hillary R. Clinton The White House 1600 Pennsylvania Ave. Washington, D. C. 20500 Dear Hillary: My colleagues in the charitable sector and I strongly support a legislative proposal that would allow transfers of IRA assets, both direct and deferred, to charitable organizations that are eligible to receive deductible charitable gifts. IRA assets that are not needed for retirement purposes represent a very large, untapped source of financial support for the services that the charitable sector provides to the public, services that in many cases, the government would otherwise be called upon to provide. It has just come to my attention that Senator Bill Roth, the Chairman of the Senate Finance Committee, supports this legislation and may include all or part of it in the "mark" that he has put before the Committee. Anything that you could do to help ensure that the full proposal and not just direct gifts becomes part of the Senate tax bill would be greatly appreciated. FYI, I understand that the Treasury Department has expressed serious concerns about the proposal. These concerns are misplaced and I am quite sure that upon full examination of the facts that you would agree. By the way, this is the issue that Father Ryan, President of LeMoyne College mentioned to you last week. It would be equally important to our United Methodist Church's Board of Global Ministries in New York, as well. The press reports indicate that the Listening Tour is a masterstroke. As you know, I would be delighted to do whatever I can to help. Many thanks. Sincerely, Jim James B. Argue, Jr. Executive Director JBA/kyt The Chronicle of Philanthropy 7/15/99 IN BRIEF: MANAGING White House Plans Giving Conference First Lady Hillary Rodham Clinton is organizing a first-ever White House conference on philan- thropy, scheduled for late Octo- ber. The meeting, tentatively titled "Gifts to the Future," will focus on individual donors and will empha- size "the importance of innovative ways of passing on the tradition to future generations," a spokeswo- man for the First Lady said. The White House Millennium Council is working with the First Lady's office to plan the event. Part of the meeting will be devoted to honoring "heroes of all ages and backgrounds who have made ex- traordinary gifts," according to the spokeswoman. The history of phi- lanthropy and the ways it has changed in recent years are also expected to be highlighted. The spokeswoman explained the conference by saying that it "really fits into the First Lady and Presi- dent's strong commitment to the non-profit sector and to promoting active citizenship." More details are expected to be announced in the next month or SO. Newtithing Group Four Embarcadero Center, Suite 3700 San Francisco, CA 94111-4107 Tim D. Stone T: 415-274-2754 Executive Vice President F: 415-274-2756 [email protected] web site: www.newtithing.org "Advancing A Breakthrough In Charitable Giving" Newtithing Group T: 415-274-2761 Four Embarcadero Center, Suite 3700 [email protected] F: 415-274-2756 San Francisco, CA 94111-4107 www.newtithing.org July 23, 1999 Dear Ms. McGuire, I am writing to convey how the role that Claude Rosenberg might play at the "Gifts to the Future" conference could add considerable substance and broad national appeal to such a promising event. Mr. Rosenberg is a retired money manager, seasoned philanthropist, and founder of an innovative not-for-profit philanthropic research organization, Newtithing Group. The Group stands at the forefront of educating the public on how wealth has changed in America and how tax filers can increase their giving on a sustained basis to productive non-profit organizations. To further this mission, Newtithing Group offers original research gratis on its web site (www.newtithing.org) and written guides available at cost. How Newtithing Group Can Enhance the Conference - Unique On-line Calculator. A masterful and seasoned public speaker, Mr. Rosenberg would be willing to introduce (for the very first time) a philanthropic innovation: an on- line charitable giving calculator to help citizens of all wealth levels better understand their financial wherewithal and determine how much they can comfortably afford to give. Many members of the philanthropic and financial community are eagerly awaiting this tool, to be offered gratis. - Intergenerational Approach. Mr. Rosenberg's guide to wealth and giving potential, Wealthy and Wise: How You and America Can Get the Most You of Your Giving, was presented in synopsis form (at author's expense) to the Presidential Summit for America's Promise. The full-length book was also Amazon.com's #1 best seller for philanthropy and charity last year. It outlines the advantages and techniques of passing philanthropy to future generations (pp 39-44). One passage describes philanthropy's great intergenerational potential as: "A great teacher of sound values; a cohesive element - a fine common interest - for a ladder of generations within a family; a practical tool that helps young people learn about business; and a psychological boost for people of all ages and of all income levels, including those of inherited wealth." - Sound Research on Wealth and Giving. Newtithing Group's in-depth financial research estimates that prudent charitable giving by individual tax filers could triple. Mr. Rosenberg's original findings have been lauded by The New York Times (April 4, 1999), Giving USA (May 25, 1999), The Economist (May 29, 1999) and The Chronicle of Philanthropy (July 15, 1999). Comprised of sound financial budgeting, a "newtithing" "Advancing A Breakthrough In Charitable Giving" Newtithing Group T: 415-274-2761 Four Embarcadero Center, Suite 3700 [email protected] F: 415-274-2756 San Francisco, CA 94111-4107 www.newtithing.org mentality could dramatically increase charitable donations and so help solve societal ills in our increasingly interdependent world. Potential of the Newtithing Approach For generations to come, increased giving from "newtithing" could help our nation's non- profit sector establish sound safeguards against a variety of interrelated problems that currently threaten the very core of our nation and planet -- from illiteracy, disease, and infant mortality to poverty, crime, terrorism, and pollution. Risks of Inaction Citizens who can comfortably afford to give more to productive non-profits should do so as soon as possible. Inaction risks, not only the loss of an entire generation, but a further deterioration of societal ills, triggering far higher financial and societal costs than ever - to ourselves and to future generations. Endorsements of Newtithing Newtithing's methods have been strongly endorsed by financial and philanthropic experts from across the political spectrum, including Andrew Tobias (NDC treasurer), Peter Lynch (Fidelity), former President Jimmy Carter, John W. Gardner (former Health, Education and Welfare Secretary), Drew Matthieson (the Mellon Foundation), and Ann Kaplan (Editor, Giving USA, of the American Association of Fund-Raising Counsel). Claude Rosenberg's Biography Founder and former chairman of San Francisco-based RCM Capital Management (now Dresdner RCM Global Investors), Mr. Rosenberg has been involved in personal, family, and intergenerational philanthropy for over forty years. Founder of Newtithing Group, he also co-chairs with Mayor Willy Brown the San Francisco delegation to America's Promise. His honors include the National Association of Fund Raising Executive's "Philanthropist of the Year Award," the Forrestal Award from the Association for Investment Management and Research (AIMR), the Tocqueville Award from United Way, and the Lilly White Award of the Employee Benefit Research Institute. Public Speaking and Media Experience Mr. Rosenberg has appeared on numerous media outlets, including Tom Brokaw's NBC Nightly News, NPR's Morning Edition, and KQED public radio. A gifted and witty public speaker, he has addressed a wide array of organizations and audiences across the nation -- from sophisticated non-profits and their donors, to financial advisors or lay people. His extensive public speaking credits include countless universities and community foundations as well as The New York Harvard Club, The National Association of Fund Raising Executives, the American Cancer Society, the Arthritis Foundation, Junior Achievement and the Anti-Defamation League. "Advancing A Breakthrough In Charitable Giving" Newtithing Group T: 415-274-2761 Four Embarcadero Center, Suite 3700 [email protected] F: 415-274-2756 San Francisco, CA 94111-4107 www.newtithing.org We would like to help the White House conference become the starting gate for a new era in philanthropy. Thank you for your consideration and your support of this timely matter. Sincerely, Time D. Stane Tim D. Stone, executive vice president Newtithing Group 4 Embarcadero Ctr. Ste. 3700 SF, CA 94111 T: 415-274-2754; Fx: 415-274-2756 "Advancing A Breakthrough In Charitable Giving" FOR BACKGROUND contact: Tim Stone, executive vice president Newtithing Group T: 415-274-2754 [email protected] www.newtithing.org FACT SHEET Newtithing Group Releases "AFFORDABLE DONATIONS 1999" Estimates U.S. Tax Filers Can Comfortably Donate Extra $242 Billion Annually Suggests Individual Giving Could Triple SAN FRANCISCO - April, 1999 -- According to an annual study released by Newtithing TM Group, a San Francisco-based philanthropic research organization, in 1999 alone, U.S. tax filers can comfortably afford to give nearly a quarter of a trillion additional dollars to charity. The Group's proprietary findings, constructed from 1996 IRS data, suggest that individuals could donate an additional $242 billion in 1999 without impairing donors' net worth. This figure is up from the $184 billion in additional affordable giving that the Group estimated for 1998 - and is almost 2 1/2 times the $100 billion sum estimated in 1994, in Wealthy and Wise: How You And America Can Get The Most Out of Your Giving, by Claude Rosenberg, the Group's founder (retired chairman of RCM Capital Management, a San Francisco money management firm). The Group thus estimates that total affordable individual giving in 1999 could be almost triple current donation levels. Actual individual giving in 1997 (the latest year for which data is available) was estimated by Giving USA at $109 billion and by Newtithing Group at $115.5 billion. According to Newtithing Group's estimates, 78% of the $242 billion in additional giving ($190 billion of it) can come from the three wealthiest tax brackets. "But you don't necessarily have to be a millionaire to affordably increase your donations," says Newtithing Group founder Claude Rosenberg. "The more than 14 million filers who earn adjusted gross incomes of $50,000-$74,999 while owning average investment assets of approximately $118,000 could on average increase their annual giving by 21%, from $1,322 to $1,600 per filer -- and under normal circumstances still see their wealth rise." In contrast, filers in the next lowest tax bracket, earning adjusted gross income of $25,000-$49,999, with average investment assets of roughly $67,000, are already donating on average $675 to charity per year, which the Group's calculations suggest is sufficiently generous. The Group defines 'newtithing' as determining comfortably affordable donations based on surplus income and investment assets (excluding personal housing). This-contrasts-with the ancient custom of tithing, which Rosenberg says best suits people with income yet little or no investment assets. "The key to more productive giving," he adds, "is employing a practical and modern budgeting approach which reflects how investment asset wealth has changed in America over the past twenty years." Newtithing Group is a California corporation that donates any annual surpluses to charity and whose findings are distributed free or at cost to non-profit organizations, individuals, and interested parties. Web site: www.newtithing.org. Philanthropy booklet: www.newtithing.org/frames/f_wealth01.ht (more) Contact: Tim Stone, executive vice president Newtithing Group, T: 415-274-2754 Individual Affordable Donations 1999 - By Average Tax Filer Adjusted Gross Number of Average Average Discretionary Average Possible Cost of Income Brackets' Filers Reported Investment Funds⁴ Actual Affordable Possible Salary² Assets³ (per filer) Donations Donations⁶ Affordable (per filer) (per filer) (per filer) (per filer) Donations' (per filer) $ 25,000-49,999 30,149,984 $ 32,740 $ 66,910 $ 3,400 $ 675 $ 675 $ 480 50,000-74,999 14,322,850 54,900 118,070 10,900 1,322 1,600 920 75,000-99,999 5,801,418 74,350 215,440 22,000 1,986 4,200 2,460 100,000-199,999 4,612,554 99,640 523,440 45,300 2,963 10,700 6,010 200,000-499,999 1,198,671 173,090 1,687,780 135,600 6,874 37,100 18,440 500,000-999,999 213,823 326,650 4,660,660 346,100 18,145 159,700 73,620 1,000,000 or more 110,912 801,230 21,168,740 1,398,900 119,830 1,233,600 763,600 Source: Newtithing Group, San Francisco, 1999 Total Affordable Donations 1999 - By Tax Filer Group Adjusted Gross Income Incremental Affordable Cumulative Incremental Brackets Donations Affordable Donations (figures in thousands) (figures in thousands) $ 25,000-49,999 $ 0 $ 0 50,000-74,999 3,975,732 3,975,732 75,000-99,999 12,846,846 16,822,578 100,000-199,999 35,688,741 52,511,319 200,000-499,999 36,230,904 88,742,223 500,000-999,999 30,267,615 119,009,838 1,000,000 or more 123,530,457 242,540,295 Source: Newtithing Group, San Francisco, 1999 1 IRS reported AGI includes income from investment assets, salary and wages, and reported capital gains. Our table does not include the over 63 million tax filers with AGI below $25,000 because our estimates suggest that they are already donating about as much as they can afford. 2 From year-end 1996; conservatively estimated since it excludes 11.8% income growth between start-of- 3 year 1997 and end-of-year 1998. (Table B-27, Economic Report of President, 1998). Estimated year-end 1998 value of securities, real estate, and private investments based on 1996 IRS income data, then adjusted for changes in asset values by year-end 1998. To ensure conservative estimates, our research omitted values such as: personal housing and related possessions, IRAs, 401(k)s, life insurance cash values, stock options, government savings bonds, etc... 4 Composed of: reported salary, investment and other income, minus living expenses and taxes; plus assumed current-year capital gains or losses (for which we have assumed an historical annualized total return of 9.29% for common stocks and 3% for other assets). 5 Weighted average of: itemized donations reported to the IRS and Independent Sector's estimate of donations made by non-itemizing filers. 6 Newtithing affordability models, based on estimated Investment Assets and Discretionary Funds. 7 Assumes donations partially in appreciated securities. MEDIA COVERAGE on Newtithing Group and its founder (updates: www.newtithing.org) National Public Radio, Dec. 25, 1998, Morning Edition, "Newtithing" (interview). Giving USA Update, Dec., 1998, Issue 4, (profile, Newtithing Group). Fund Raising Management, Dec., 1998 (excerpt, Wealthy and Wise, 1998 synopsis edition). CNNfn, Nov. 16, 1998, "Philanthropy," (interview of C. Rosenberg on newtithing). The San Jose Mercury News, Nov. 6, 1998, editorial, "There's a New Option For Charity." Worth Magazine, Nov./Dec., 1998, "Sweet Charity, what's your comfort level?" The Atlanta Constitution, Oct. 14, 1998, "Give Like You're Ted Turner." The Wall Street Journal, Oct. 2, 1998, by Eileen Daspin, "Giving It Up: A User's Manual." The American Benefactor, Spring, 1998, by Claude Rosenberg, "Sharing The Wealth: Private Foundations have Flourished With The Wall Street Boom. Now It's Time To Give Some of That Money Away." Fortune Magazine, Feb. 2, 1998, by A. Faircloth and C. Bollinger, "Fortune's 40 Most Generous Americans." [quoting Rosenberg] The Chronicle of Philanthropy, Dec. 11, 1997, by Claude Rosenberg, "Are Warren Buffett's Views on Giving the Best for Philanthropy?" The San Francisco Examiner. Nov. 2, 1997. by S. Salter. "A Charitable View of the Rich." The American Benefactor, Spring, 1997, by E. Watters, "The Gospel of Giving According To Claude Rosenberg." The Star Tribune [Minneapolis], Aug. 30, 1996, by Robert Franklin, "Go On, Give! Money Expert's Word To Wealthy: you can afford to be more charitable." The Chronicle of Philanthropy, Jan. 26, 1996 [review of Wealthy and Wise, by Claude Rosenberg]. The New York Times, April 30, 1995, by G. Fabrikant, "Noblesse Oblige With Strings: The Charity of the Rich Isn't All What it Seems." The Wall Street Journal, Jan. 6, 1995, by J. Grundfest, "Reasons For Giving All You've Got to Give." [review of Wealthy & Wise, by Claude Rosenberg] Smart Money, Dec. 1994, by J. Taylor, "Give It Up: How Much Can You Afford to Donate to Charity?" The Chronicle of Philanthropy, Nov. 29, 1994, by Claude Rosenberg, "How Philanthropy Could Be $100 Billion Bigger." contact: Tim Stone, Executive Vice President, Newtithing Group, 415-274-2754 INTERVIEW QUESTIONS 1. What Does Newtithing Mean? 2. Are More People Actually Wealthier Than Ever? Since publication of your 1994 book, Wealthy and Wise, the stock market has risen to historic levels, yet also experienced turmoil. How can financial pros- perity or uncertainty affect giving patterns and relationships between donors and non-profits? 3. How Realistic Is Your Estimate That Filers Can Annually Afford To Donate Hundreds of Billions of Additional Dollars to Charity? 4. How Can Individuals Determine What They Can Affordably Give To Charity? 5. Why Are The Wealthy Not Donating Nearly As Much As You Think They Can? 6. What Do The Wealthy Risk If they Do Not Increase Their Charitable Donations? 7. What First Sparked Your Interest in Philanthropy? 8. How Can Philanthropy Boost Non-Profit Productivity, As You Claim It Can? 9. Why Were You A Successful Money Manager? In 1996, RCM Capital Management, the money manage- ment firm you founded, was sold to Dresdner Bank. What was the key to RCM's success? 10. Can Uniform Financial Reporting Standards Make Non-Profits More Accountable? You received the Daniel L. Forrestal Leadership Award from AIMR (Association for Investment Management and Research) for developing money manager performance standards - can a similar system measure non- profits performance? contact: Tim Stone, Executive Vice President, Newtithing Group, 415-274-2754 TESTIMONIALS CLAUDE ROSENBERG'S WEALTHY AND WISE (Little, Brown & Co) "Applying Claude Rosenberg's investment expertise to charitable giving is what's needed in this fertile field. In Wealthy and Wise, he shows us what we can afford to do and how to do it far better than we are. He also shows us how the right approach can be the perfect conduit to personal and family happiness and to our country's recovery." - Peter Lynch, Vice Chairman, Fidelity Management and Research Co "In Wealthy and Wise, Claude Rosenberg provides meaningful options for those searching for ways to invest in the future of their communities. This is truly an important book." -Jimmy Carter, former U.S. President "Splendidly well-argued and clearly presented, Wealthy and Wise provides 'investment advice' [about how to] do more for ourselves [how to] think smart about our portfolios and do more for others." - The Wall Street Journal "This is a unique book - a practical and thoughtful guide to personal philanthropy by one of the most admired and successful money managers in the nation. Wealthy and Wise is important for you, important for all of us; everyone in fundraising should have multi- ple copies on hand to pass out to prospective donors." -- John W. Gardner, former U.S. Secretary of Health, Education, and Welfare "Wealthy and Wise is truly an important piece of work and a real contribution to the field. It is rare that someone with both the insight into the benefactor world and such expertise in money management has been willing and able to make the case for higher levels of giving." -Bruce R. Sievers, Executive Director, Walter & Elise Hass Fund, San Francisco "After reading Wealthy and Wise, an important Chicagoan plans on spending the next few years thinking about intelligently giving away almost $10 million to the charities he is interested in." -David S. Rosen, The Continuity Funds, Chicago, Illinois "Wealthy and Wise was distributed to the attendees at a dinner for a local charity on December 3, 1996. Between then and June 1st, total current and deferred grants rose from $69.8 million to $95.7 million, a whopping 37.1 percent increase. Needless to say, the book made a dramatic impact." -Lawrence S. Phillips, Former Chairman and CEO, Phillips-Van Heusen Corp "George A. and Jane S. Miller have made a gift of $1 million to the University of California, Berkeley, partly the result of reading Claude Rosenberg's book Wealthy and Wise. -Bene Legere, U. Cal. Berkeley Library Publication "All of us in not-for-profit organizations have found a grand ally in Claude Rosenberg. He offers our prospective donors a sensible and creative approach to philanthropy which stretches the traditional mind set regarding giving. Quite simply, Claude Rosenberg has provided a blueprint for strengthening America." -Mary G.F. Bitterman, CEO, KQED Inc., San Francisco "Claude Rosenberg's wisdom and words paid off handsomely and quickly after his book-signing to benefit Junior Achievement [a non-profit organization designed to educate young people on business and economics]. Within days of the presentation, several attendees initiated gifts to Junior Achievement for the first time. Without question, Mr. Rosenberg is a tremendous role model for all charitable givers." -Shawn E. O'Hara, President, Junior Achievement of the Bay Area, San Francisco contact: Tim Stone, Executive Vice President. Newtithing Group. 415-274-2754 PRINT REVIEWS Claude Rosenberg's Wealthy and Wise (Little, Brown) The Wall Street Journal: "Splendidly well-argued and clearly presented, Wealthy and Wise provides 'investment advice' (about how to) do more for ourselves (and how to) think smart about our portfolios and do more for others." The Chronicle of Philanthropy: "Replete with models that help people determine how much they can afford to give and how to give effectively Rosenberg is already starting to influence how people give (like a) real estate investor (who) says he and his wife decided to double their charitable donations after reading Wealthy and Wise. Fund raisers and board members have snatched up copies donors are surprisingly receptive. (Rosenberg) breaks new ground by pre- senting a formula for how to calculate giving based on net worth. This is a successful businessman talking about his vision of philanthropy. Smart Money: "A provocative unique book A careful strategy for investing as well as donating that makes so much sense (Wealthy and Wise) will help you plan better for all of your money needs." The San Francisco Examiner: "Wealthy and Wise shows how you can give some of your money away and - if you play it right - get most of it back (and shows how) you don't have to be rich to give your money away wisely." The Orange County Register: "Philanthropy is quickly becoming the most practical source of long-term change in the United States (and) Rosenberg tells how to assess where your money is going and how to plan bequests to your chil- dren." The Memphis Business Journal: "In clear, no-nonsense language, Rosenberg shows how to get the most out of donation dollars, intelligently and efficiently. This meticulously researched book shows us how we can convert tax-deductible con- tributions to great reward at little or no personal risk. This innovative guide provides a model for better (personal) living or for enhanced giving to society (providing) a detailed plan for transforming our troubled communities and improving our lives and the lives of all Americans." Stanford Magazine: "In Wealthy and Wise, Claude Rosenberg suggests practical new concepts in personal financial planning and offers guidelines for how to choose where you give and influence how your donations are spent. He also demonstrates how $100 billion more each year could be easily raised in the private sector to address the problems facing America." contact: Tim Stone, Executive Vice President, Newtithing Group, 415-274-2754 Claude Rosenberg Founder & Chairman Newtithing Group 4 Embarcadero Ctr., Ste. 3700 San Francisco, CA 94111 T: 415-274-2761 Claude Rosenberg Founder & Chairman Newtithing Group 4 Embarcadero Ctr., Ste. 3700 San Francisco, CA 94111 T: 415-274-2761 FOUNDER'S BIOGRAPHY About Claude Rosenberg, Founder of Newtithing Group Financial Biography: In 1998, Mr. Rosenberg founded Newtithing Group, a philanthropic research organiza- tion committed to increasing affordable charitable giving, personal fulfillment, and the productivity of the non- profit sector. In 1970, he founded RCM Capital Management, which became one of the leading institutional money management firms in the country. In 1996, he stepped down as chairman of RCM Capital Management, which as Dresdner RCM Global Investors currently manages over $60 billion in fixed income and equity assets. In 1958, he was named Research Director of J. Barth & Co, which under his leadership developed the largest regional investment research department in America (later merging with Dean Witter & Co). In 1975, he formed RREEF Corporation, now the fourth largest U.S. manager of real-estate for tax- exempt clients. Previously, he received his BA and MBA from Stanford University and spent two years in the Navy. Books: Mr. Rosenberg has published five books on finance including Stock Market Primer, an investment clas- sic selling over half-a-million copies. His latest book is Wealthy and Wise: How You And America Can Get The Most Out of Your Giving (Little Brown, 1994) - both a comprehensive analysis of national wealth and a prac- tical tool for charitable giving showing how greater donations can meet America's pressing societal needs. Wealthy and Wise: has garnered praise from many authorities including Fidelity Vice Chairman Peter Lynch, for- mer U.S. President Jimmy Carter, Vice Chairman of the Richard King Mellon Foundation Drew Mathieson. and former U.S. Secretary of Health, Education and Welfare John W. Gardner. Current Activities: In addition to serving as Chairman of San Francisco-based Newtithing¹ Group, Mr. Rosenberg also serves as Co-Chairman of the Board of Directors of Philanthropic Research Incorporated (Arlington, VA), as well as Co-Chairman of the San Francisco delegation to America's Promise, (Alexandria, VA). He sits on the advisory bodies of: Harvard University's Hauser Center for Nonprofit Organizations (Cambridge, MA), the Peninsula Community Foundations' Center for Venture Philanthropy (Menlo Park, CA), and the Entrepreneurs' Foundation (Menlo Park, CA). Awards: Honors awarded Mr. Rosenberg include the Daniel J. Forrestal Leadership Award from the Association for Investment Management and Research (AIMR), for developing standardized guidelines of money manager performance; the Arbuckle Award, the highest honor for management excellence awarded by the Stanford Graduate School of Business; the Lillywhite Award of the Employee Benefit Research Institute for extraordinary lifetime contributions to American economic security; and the Excellence in Business Lifetime Achievement Award from the San Francisco Chamber of Commerce for leadership and contributions to the San Francisco community. He and his wife, Louise have also received the Outstanding Philanthropist Award from the National Society of Fund Raising Executives, Golden Gate Chapter; and the de Tocqueville Award from United Way. contact: Tim Stone. Executive Vice President, Newtthing Group, 415-274-2754 (over) CLAUDE ROSENBERG SPEAKS ON NEWTITHING "I'm concerned about numerous trouble spots that are negatively effecting our nation. Look at our public education system, drug abuse, poverty, or the rising fear of violence. Even in an era of enormous prosperity, we're experiencing a dangerous deterioration of our societal fabric that can not persist without severe repercussions for everyone. We should not and can not rely heavily on govern- ment to solve such problems. If the wealthy don't share more of their good fortune to address our most pressing needs, we could rel- egate another generation of Americans to hopelessness and dependence. "And while the success stories of the prosperous have recently been held in awe, if wealthy people don't make a more recognizable impact on our country's needs, national fascination may turn to national frustration, triggering higher taxation or other forms of expropriation aimed at forcibly sharing the wealth. "The good news is, we have the wherewithal to make both our citizens and our non-profit sector healthier and more self-sufficient for generations to come. With increased giving from our higher taxpayer groups, we should be rewarding non-profits who demon- strate effective results. and educating others to follow suit. Imagine the improvements America could make if significantly higher funding accompanied greater non-profit effectiveness. This dual approach could become one of our nation's most productive invest- ments - in ourselves, our families, our citizens, and our descendants." UNITED STATES well as their income. The model works on a Deserving causes Recipients of donations, 1998, % sliding scale, assuming that poorer Ameri- cans need to increase their net worth while Religion Education 42.4 13.7 the richest merely want to keep it stable, af- ter allowing for inflation and their spending. Gifts to foundations Altogether, it reckons that individuals could 9.4 afford to give away some $242 billion more a Health year than they do. Half of that amount 9.4 Philanthropy International Human services comes from the 111,000 people whom New- affairs 9.0 Giving your all? 1.2 tithing reckons earn more than $im a year Public/Society Environment/ Benefit Organisations and whose total net worth is around $21m. wildlife 6.1 Certainly, Silicon Valley, the temple of 2.9 Arts Total allocated: $179.31bn 5.9 much of this new money, offers mixed evi- O N THE face of it, 1998 was a tremen- Source: AAFRC Trust for Philanthropy dence of a philanthropic renaissance. A few dous year for American philanthropy. billionaires, notably Bill Gates, have begun Figures released on May 25th by the Amer- 0.1% of the population but 8% of charitable the arduous process of giving away their ican Association of Fund Raising Counsel giving). loot. But most high-tech folk still seem slight- show that charitable giving rose by 11% to a However, many charities argue that the ly more preoccupied with bits and bytes. Ac- record $175 billion. Around three-quarters real test should not be income but net cording to a 1998 report by Community of this came from individuals; the rest from worth-and that the rich are not doing their Foundation Silicon Valley (CFSV), around bequests, companies and foundations. The share. Last year, Standard & Poor's compos- one third of households there earning more only sector to see a fall in giving was the ite index rose by 27%, more than twice the than $100,000 give $1,000 or less to charity. arts-though they still received some $10.5 rate of giving. The gains from the 1990S bull The Santa Clara County branch of the Unit- billion. The AAFRC detects a possible "gold- market have gone disproportionately to the ed Way recently collapsed after donations en age" for charitable giving. rich, with as much as much as 90% of the pa- fell short of expectations. Is that really the case? American giving, per profits going to the top 10% of house- In many cases the problem does not at around 2% of GDP, is certainly generous holds. Very little of these gains-running seem to be miserliness so much as ignorance. compared with other countries (though Eu- into trillions of dollars-has been passed on. As the CFSV report notes, one third of the ropean ones tend to have higher taxes and The most damningevidence comes from "high net worth" individuals in the valley more bigger welfare states). And America's the Newtithing group, a San Francisco non- were paid with shares; but only 7% gave richest people do give more than their share profit organisation, which has constructed away shares, even though there are tax ad- by income (one analysis of 1995 tax returns an economic model showing how much vantages in doing so. Whatever the reason, by the AAFRC showed that people who Americans could "afford" to give away, tak- the golden age still looks some way off. earned $im a year accounted for just under ing into account their assets and spending as THE ECONOMIST MAY 29TH 1999 29 THE CHRONICLE OF PHILANTHROPY OPINION July 15, 1999 DAVID CAY JOHNSTON Donors' Assets- Where the Money Is Donors' Assets: Where the Money Is for Charities Continued from Page 51 ple document called a "stock pow- and holding investment assets of E ARE IN THE MIDST of a revolu- to churches and charities-a ratio W er" instead of a check. And, a chari- $118,000-the average for that tion. No, not the changes of $3 cash to $1 of personal proper- ty needs to supplement its bank group-could afford to increase brought about by the Internet, ty. But among the 111,000 house- account with a brokerage account their donations by 21 per cent, to though that is a part of it. This revolu- holds with incomes of $1-million or SO it can immediately convert gifts $1,600 a year on average-up from tion is in the ownership of assets, and it more, cash gifts totaled $5.8-bil- of securities to cash. the current $1,322 average shown will have a profound effect on the ability lion, while gifts of property were in Internal Revenue Service data. of charities to thrive in the decades worth even more: $7.5-billion. HE POTENTIAL WINDFALL for Households that have earnings of ahead. That's because the rich under- In short, asset ownership is rapidly stand how gifts of assets are a T savvy charities, many ob- $100,000 and $1-million of invest- servers believe, is huge. ed assets could give away $16,000 being democratized. With the explosion much better financial deal than Five years ago, Claude Rosenberg, without changing their way of life, of interest in the stock market over the are gifts from income. Write a a retired San Francisco invest- he said-six times actual average past two decades, business owners and check and you get a deduction, but ment manager who had grown giving. And households with annu- executives no longer are the only ones give an asset that has soared in frustrated at being turned down al incomes of more than $1-million who have the assets from which to make value and you avoid the capital- for gifts from people whom he could increase their yearly giving large gifts. Financial assets now are gains tax and win an income-tax knew had substantial assets, wrote more than tenfold, Mr. Rosenberg owned by literally tens of millions of deduction. Give through payroll a book titled Wealthy and Wise said. deduction and you pay every week that focused on giving based on as- Americans, most often in the form of "I am trying to convince people, in good times and bad, but give sets instead of income. He showed stocks and mutual funds. especially wealthy people, that it is from assets through a donor-ad- how Americans could easily double very much in their interest to give What's more, growing numbers of em- vised fund or similar vehicle and their annual giving to churches away much more and to create a ployers, especially in the high-technol- you can bunch your gifts to maxi- and charities without lowering society where they can live safer, ogy industry, are paying workers in part mize your income-tax break. their standard of living, or their happier, better lives," Mr. Rosen- with stock options and other forms of That many charity executives do wealth, one iota. He was not the berg adds. "They just need to equity in their companies. As a result, not understand the economics be- first to spot this, but he has become change how they think about how secretaries can become millionaires hind asset giving was brought the leading popularizer of giving much they can afford to give." overnight, and in many towns the local home to me in a conversation with based on assets. For those who have $650,000 or Home Depot manager can afford to live an official of a national charity Now, because of the booming more in assets-not an uncommon in a mansion. who has worked in the field for 25 stock market, Mr. Rosenberg cal- level of wealth for white-collar Just as democratizing the ownership years and has taught fund-raising culates that Americans overall workers or even police officers of automobiles changed personal mobil- strategies. He did not understand could nearly triple their annual these days-the alternative to Mr. ity, and democratizing homeownership the tax significance of giving stock giving without lowering the quali- Rosenberg's idea of giving away and college educations after World War instead of cash. And he said he did ty of their lives. His organization, more now is either to pay estate II changed social values and created not even think his organization the Newtithing Group, estimates taxes at death or to give it away at vast new wealth, democratizing the would know what to do if a donor that Americans will give about death. Lifetime giving ought to be ownership of assets will profoundly alter offered it a stock certificate. $132-billion to churches and chari- a lot more rewarding than giving the economic, social, political, and chari- That lack of knowledge about as- ties this year but that Americans after death. It should even teach table landscape. set-based giving is a serious fail- have the capacity to give an addi- donors how to better fashion the For charities, that trend means that ing-and is going to have an espe- tional $242-billion, for a potential gifts they do make when they die. cially detrimental impact on chari- total of $374-billion in gifts. Those charities that can adapt annual campaigns based on donor in- ties run by and for the poor and the Mr. Rosenberg's proposition: quickest to this new way of think- comes will become less important as a working class. That is because the Change how you look at your ca- ing about giving-and, thus, about revenue source, while major gifts based boards and staff members at those pacity to give, focusing on what how they raise funds-stand to on donor wealth will continue to grow in charities are the least likely to you have instead of what you gain the most. But knowledge of significance. Charities that grasp that have personal, practical knowl- make. the new economy and the benefits reality will develop the connections, edge of owning assets, or strong "Our main point," Mr. Rosen- to donors of giving assets still management, and fund-raising skills— ties to those who do. berg said, "is that generosity has eludes the majority of charities. and the budgeting practices-that will Taking advantage of the bene- been based too much on income. Perhaps it is time for some smart serve them well in the years ahead. Con- fits of getting donors to give based With capital for many people being grant maker to sponsor a course versely, charities that fight the trend on their assets does not require a 80 much larger than income, there called Asset Giving 101. will wage a battle just to survive, a bat- sophisticated planned-giving oper- is enormous untapped capacity to tle that will sap their energies and leave ation. What it does require is get- give." David Cay Johnston, a reporter for them wondering why they cannot devel- ting people to give now instead of He figures that a family in The New York Times, has been op the support they need, even if they planning to give when they die, the upper reaches of the middle writing about charities for two dec- provide services that are efficient and and persuading them to sign a sim- class, making $50,000 to $74,999 ades. effective. That is not to say that there is no place for gifts based on donors' income. The weekly payroll deduction, the crisp new bill dropped in the Sunday collec- tion plate, and the annual charity mem- bership charged to a credit card will con- tinue to play a major role in financing non-profit groups as far into the future as one can imagine. But the relative im- portance of gifts made out of income is diminishing as major gifts based on as- sets are growing. Charities looking to capitalize on gifts of assets need to understand that the rich give differently-and that the logic behind their style of giving is reaching down to many middle-class households and all but the spendthrifts among the burgeoning upper middle class. In 1996, the latest tax-return data show, Americans who itemized deduc- tions on their income-tax returns gave $66-billion in cash and $21-billion in items such as stocks, art, and real estate Continued on Page 52 THE NEW YORK TIMES, SUNDAY, APRIL 4, 1999 Personal Business Can Americans Give More, and Not Hurt? A Philanthropist Says Donations Could Be Tripled By DAVID CAY JOHNSTON IVE years ago, Claude Rosen- berg, a retired San Francisco investment manager, began touring the country, telling Ameri- cans that they could easily double their annual giving to churches and charities without lowering their standard of living, or their wealth, one lota. It was a controversial message, embraced by people like Ted Turner, who pledged a billion dollars to the United Nations, and ridiculed by oth- ers, who took comfort in the oft- repeated observation by professional fund-raisers that Americans are the most generous people in the world. After all, living Americans gave away either $109 billion or $115 bil- lion in 1997, depending on whose esti- mate is used, or about $1 of every $40 of adjusted gross Income. Now Mr. Rosenberg has updated his figures. Because of the booming stock market, he says, Americans over all could nearly triple their an- nual giving without reducing the quality of their life styles. Americans will give about $132 bil- lion, churches and charities this year, several studies indicate. But Mr. Rosenberg said Americans have the capacity to give an additional $242 billion, for a potential total of $374 billion in gifts, money that he said would provide enormous soci- etal gain with no individual pain. Mr. Rosenberg's proposition: Change how you look at your capaci- ty to give, focusing on what you have instead of what you make. "Our main point," Mr. Rosenberg said, "is that generosity has been based too much on income. With cap- ital for many people being so much Peter da Silva for The New York Times larger than income, there is enor- Claude Rosenberg, a retired San Francisco investment manager who is now a philanthropist, believes that mous untapped capacity to give." wealthy Americans get bad financial advice that leads them to hold down their charitable giving. advises people to first figure out how much they need to maintain their life styles, get them through million could increase their yearly book "Wealthy and Wise: How You any imaginable turmoil and provide giving more than tenfold, Mr. Rosen- and America Can Get the Most Out for their families. berg said. of Your Giving" (Little Brown, But after that, he said, many That group had average adjusted 1994); it is also explained in detail at Americans - even at the $50,000 gross income of $2.8 million and fi- www.newtithing.org, his organiza- income level - have stashed away nancial assets of $21.2 million, Mr. tion's Web site, which soon will in- more wealth than they need. He rec- Rosenberg estimated. Based on clude a calculator to help people de- ommends that those people increase those figures, he said, they could give termine their giving capacity. their giving now SO that they learn to an average of $1.2 million a year, Newtithing grew out of "my own give in ways that accomplish clear versus their actual average of experience soliciting donations," goals, whether more opera in their $119,830. (In his calculations for that said Mr. Rosenberg, whose family cities or more after-school recrea- group, Mr. Rosenberg used I.R.S. foundation has $32 million. "I was tion for poor children. And as they data for 1996 on dividend and interest disappointed, even angry, that people learn how to make a difference with income to estimate average financial 1 knew were giving little compared to their gifts, he said, they should step assets.) their estimated wealth." He came to up their giving. believe that some individuals he re- "I am trying to convince people, Y ET financial advisers indirect- garded as stingy were simply listen- especially wealthy people, that it is ly discourage people from giv- ing to standard tax advice and then very much in their interest to give ing as much as they could, Mr. measuring their capacity to give away much more and to create a Rosenberg said. They urge the largely in terms of income. society where they can live safer, wealthy, in particular, to hold down Paul G. Schervish, a Boston Col- happier, better lives," Mr. Rosen- taxable income. Then, because their lege social work professor who has berg said. "They just need to change giving is based on their income, not studied the wealthy for 15 years, how they think about how much they their assets, their contributions are says assets are increasingly being can afford to give." diminished. counted in calculations of the capaci- Using income tax data for 1996, the Many charitable endowments op- ty to give, a dramatic change that latest year for which information is erate on the theory that they can give Mr. Rosenberg is helping to spur. available, Mr. Rosenberg calculated away roughly 5 percent of assets "He is attempting to mobilize the that a couple with $50,000 to $74,999 each year, forever, and keep pace consciousness and the consciences of of Income, and investment assets of with inflation. Mr. Rosenberg's esti- wealth holders to appreciate how $118,000 - the average for that mates for individuals are slightly much wealth they have and what group - could afford to Increase higher. But, of course, individuals good they can do with their wealth," donations by 21 percent. That would don't live forever. Mr. Schervish said. "And he is right raise their giving to $1,600, from the He said that even the relatively that advisers focus on income, not $1,322 average shown in Internal few people who tithe, following the wealth." Revenue Service data. biblical injunction to give away 10 Peter Lynch, the famed money Families with earnings of $100,000 percent of income, are out of step manager, and former President Jim- and $1 million of invested assets with modern finance because they, my Carter are among those who could give away $16,000 without too, ignore Investment assets. endorse Mr. Rosenberg's approach. changing their way of life, his eco- Mr. Rosenberg's organization has "A lot of people have been waiting nomic model showed. That is about trademarked the word "newtithing" for some validation that it is all right six times actual average giving. for his concept of charitable giving to give a lot more," Mr. Rosenberg And the roughly 111,000 families based on assets and surplus income. said. "I am giving it to them based on with annual incomes of more than $1 The idea was first outlined in his research." The Atlanta Constitution VIEWPOINTS Wednesday, Oct. 14, 1998 A17 Give like you're Ted Turner Charity at home: Local FOR problems need local I ************************* solutions, and the wealthy FOR 200 3 AZC1422093A can afford to subsidize them. 1 By Claude Rosenberg ed Turner's generous gift to the T MARK GILES / Staff United Nations showed that the wealthy can comfortably afford to give more to charity by acknowl- edging income and net worth in budgeting ca's wealthy do not each year. decisions. As the final quarter of 1998 boost nonprofit initia- If the wealthy were to make larger begins, Georgians and all Americans of tives with increased charita- charitable donations contingent on means should see Turner's actions as an ble donations to solve (not simply increased nonprofit effectiveness and urgent "call to alms," especially on a local ameliorate) chronic local problems - focused on addressing a problem's sys- level, by making larger charitable dona- whether about education, unequal oppor- temic causes, the nonprofit sector might tions. Despite short-term stock-market tunity, crime, poverty or whatever - such be energized into greater productivity, setbacks, the well-to-do have experienced troubles will grow even more when the helping more Americans, Georgians and a decade-long investment boon while sig- economy eventually slows. Atlantans meet their full potential as pro- nificant portions of the nation are deterio- How much more can individuals afford ductive citizens. This strategy of "contin- rating. to give? Turner can comfortably donate $1 gent generosity" could help conquer our Georgia risks a worsening of its own billion over 10 years. What about the rest "chronic" societal ills and lay the ground- problems, as all states do, in the next of us? work for enduring safeguards to the recession. Even after the '90s' economic Rough estimates suggest that most nation's future. good times, a crack epidemic among Georgians earning $200,000 or more a young women is ravaging unwed mothers year could comfortably afford to double Claude Rosenberg is founder and chairman of and their children in Atlanta more than in their annual contributions from about San Francisco-based Newtithing TM Group, a most any other large city, while crime $18,000 to roughly $36,000. If increased philanthropic research organization advocat- runs rampant in dilapidated neighbor- annual donations went only to efficient, ing increased charitable giving and nonprofit hoods. productive local organizations, the best productivity. The group's Web site is at This symbolizes the diverse societal Georgian and Atlantan nonprofit organiza- http://www.newtithing.org He is author of problems that have plagued our nation tions could begin solving problems with an "Wealthy and Wise, How You and America even during prosperous times. If Ameri- increase of more than half a billion dollars Can Get the Most Out of Your Giving." 6B FRIDAY, NOVEMBER 6, 1998 San Jose Mercury News Opinion HURRICANE CHARITY ELECTION MUSIC/POETRY There's a new option for charity T HE stock option has become poor. Dollars can be deceiving. In- level of giving, leaving it up to indi- giving patterns of companies and the standard means to accu- dividuals gave $109 billion to chari- viduals to choose, based on their individuals. Next week, it's holding mulate riches in Silicon Val- ty last year, 25 percent more than own circumstances. a conference for donors and non- ley, an emblem of the $87 billion they gave in 1992. What he shows, with simple cal- profits to translate the survey re- deferred gratifica- Editorial But during this time, the bull-mar- culations in his book "Wealthy and sults into increased generosity. tion. ket years, a smaller percentage of Wise," is that people can give sub- The newtithing concept - to en- It is appropri- The opinion households gave to charity, and stantially more, after deducting ex- courage people to think in terms of ate then that of the those individuals who did give con- penses and factoring in tax savings, their net worth, not their pay stub stock options fac- Mercury tributed relatively less: 1.6 percent and have plenty left over to build - is fundamental to any strategy. tor prominently News of personal income last year, com- on their assets. (An example he So is explaining the benefits of giv- in a new concept pared with 2.1 percent 30 years ear- used was a person earning ing away stock. (If you give stock, of giving back to lier. Baby boomers have been rack- $100,000, with market-value invest- you can reap tax advantages that the community. Called "new- ing up riches and holding on to ments of $500,000 yielding an addi- you can't claim if you sell the stock tithing," it's being promoted by a more of them than their post-war tional $30,000 in income, who gives and then make a donation in cash.) San Francisco-based non-profit of parents. $10,000 away. The organization's The underlying assumption, the same name. Sure, some of that money is Web page, www.newtithing.org, however, is that people will feel it Newtithing's premise is that you socked away for retirement - few will soon include a calculator en- in their hearts to give to their com- should factor in your investment employers are offering straight abling people to plug in their own munity, and that once aware of assets with your salary when con- pensions these days - or for col- numbers.) their own potential, they will re- sidering how much you can afford lege tuition for the kids. Yet many The stock market has rebounded spond. It assumes, not incorrectly, to give to charity. Otherwise, you're potential donors perceive they in the past few weeks after its we hope, that the root is sensitivity, unnecessarily limiting your gen- can't afford to give, even as they shakeout in September. But non- not selfishness. erosity. plop down cash for third cars, profits are nervous that the gyra- That's apparently not as obvious monster big-screen entertainment tions may scare off possible FOLLOW-UP: The Giving Back as it might seem. Many people, systems and homes that are on av- donors. Rosenberg hopes that in- the Silicon Valley Way Conference even those with enviable portfo- erage one-third bigger than the vestors will take a long-term view will be held Tuesday, Nov. 10, from lios, look only at their paycheck. ones they grew up in. and factor in, but not be scared by, 8:30 to 11 a.m. at the Hyatt Sainte And that's an archaic and an inac- Rosenberg calculates that the the cycles in high-tech stocks. And Claire in San Jose and is open, at curate perspective in the new econ- well-off could comfortably donate frankly, if the $500,000 portfolio no charge, to the public. Panelists omy, where fortunes many times $150 billion more each year. And he vanished down a hole, the $10,000 will include Susan Packard Orr, salary are being accumulated in stresses comfortably. Rosenberg's gift to a local charity wouldn't have chairperson of the Packard Foun- stock, says Claude Rosenberg Jr., not calling for vows of poverty or made much of a difference. dation; Steve Kirsch, chairman of an author and retired investment hocking the Mercedes. Contrary to Rosenberg's promotion of new- InfoSeek; Glen Toney, executive manager who created and is now the old definition of the term, he's tithing coincides with a surge in at- vice president of Applied Materi- promoting newtithing. not urging people to give up 10 per- tention to philanthropy in Silicon als; and Lisa Sobrato Sonsini, Rosenberg, like others involved cent of their income. (The extra Valley. Leading the effort is the president of the Sobrato Family in the field, is worried about the fu- $150 billion would raise giving to Community Foundation Silicon Foundation. Call the Community ture of charitable giving in a time of about 4 percent of personal in- Valley, which earlier this year con- Foundation Silicon Valley (408- a growing divide between rich and come.) And he doesn't prescribe a ducted a benchmark survey of the 278-0270) if you plan to attend. HARVARD CLUB OF NEW YORK CITY 27 WEST 44" STREET NEW YORK 10036-6643 March 29, 1999 Mr. Claude Rosenberg Founder Newtithing Group 4 Embarcadero Center, Suite 2620 San Francisco, CA 94111 Dear Mr. Rosenberg: Thank you for speaking at the Harvard Club last week. You engaged the audience and articulated very effectively how people really can give more money and involve themselves in their charitable causes more than they currently do. The question session showed how stimulated the audience was. Several days after your presentation, one of the members of the Board of Managers, at the Club Board meeting, spontaneously cited your talk as one of the recent noteworthy programs. Your message spreads. Thanks to Tim Stone for making the handouts available. They are most appreciated. Again, many thanks for sharing your wisdom here. Sincerely, Just Janet L. Roen, M.D. Chairperson, Program Committee UNITED STATES well as their income. The model works on a Deserving causes sliding scale, assuming that poorer Ameri- Recipients of donations, 1998, % cans need to increase their net worth while Religion Education 42.4 13.7 the richest merely want to keep it stable, af- ter allowing for inflation and their spending. Gifts to foundations Altogether, it reckons that individuals could 9.4 afford to give away some $242 billion more a Health year than they do. Half of that amount 9.4 Philanthropy International Human services comes from the 111,000 people whom New- affairs 9.0 tithing reckons earn more than $im a year Giving your all? 1.2 Public/Society and whose total net worth is around $21m. Environment/ Benefit Organisations wildlife 6.1 Certainly, Silicon Valley, the temple of 2.9 Arts Total allocated: $179.31bn 5.9 much of this new money, offers mixed evi- O N THE face of it, 1998 was a tremen- dence of a philanthropic renaissance. A few Source: AAFRC Trust for Philanthropy dous year for American philanthropy. billionaires, notably Bill Gates, have begun Figures released on May 25th by the Amer- 0.1% of the population but 8% of charitable the arduous process of giving away their ican Association of Fund Raising Counsel giving). loot. But most high-tech folk still seem slight- show that charitable giving rose by 11% to a However, many charities argue that the ly more preoccupied with bits and bytes. Ac- record $175 billion. Around three-quarters real test should not be income but net cording to a 1998 report by Community of this came from individuals; the rest from worth-and that the rich are not doing their Foundation Silicon Valley (CFSV), around bequests, companies and foundations. The share. Last year, Standard & Poor's compos- one third of households there earning more only sector to see a fall in giving was the ite index rose by 27%, more than twice the than $100,000 give $1,000 or less to charity. arts-though they still received some $10.5 rate of giving. The gains from the 1990S bull The Santa Clara County branch of the Unit- billion. The AAFRC detects a possible "gold- market have gone disproportionately to the ed Way recently collapsed after donations en age" for charitable giving. rich, with as much as much as 90% of the pa- fell short of expectations. Is that really the case? American giving, per profits going to the top 10% of house- In many cases the problem does not at around 2% of GDP, is certainly generous holds. Very little of these gains-running seem to be miserliness so much as ignorance. compared with other countries (though Eu- into trillions of dollars-has been passed on. As the CFSV report notes, one third of the ropean ones tend to have higher taxes and The mostdamningevidence comes from "high net worth" individuals in the valley more bigger welfare states). And America's the Newtithing group, a San Trancisco non- were paid with shares; but only 7% gave richest people do give more than their share profit organisation, which has constructed away shares, even though there are tax ad- by income (one analysis of 1995 tax returns an economic model showing how much vantages in doing so. Whatever the reason, by the AAFRC showed that people who Americans could "afford" to give away, tak- the golden age still looks some way off. earned $im a year accounted for just under ing into account their assets and spending as THE ECONOMIST MAY 29TH 1999 29 Downlink announcement letter from ARC/UW attached. If we can approve through legal and Marsha asap, it would be most effective to send out on WHMC letterhead with Ellen's, ARC's and UW's signatures. 7/26 draft Draft letter from Steve Bullock, Interim President & CEO, American Red Cross, and Betty Beene, President & CEO, United Way of America, to United Way CEOs and ARC chapter executives in 147 communities served by the ARC-TV network. Date Name Title Organization name Address City, state zip Dear (personalized): We are presented with an extraordinary opportunity for our two institutions to work together and to help advance the case for philanthropy in the next millennium. This letter is to gauge your interest in working with your (Red Cross or United Way) counterpart to convene and co-host a local forum on philanthropy, featuring a live satellite broadcast of proceedings from The White House Conference on Philanthropy on October 22, 1999. The segment broadcast will likely include participation by the President and First Lady. The White House Conference on Philanthropy is a part of the White House Millennium celebration. In the overall context of "Honor the Past; Imagine the Future," the Conference will present the unique American tradition of giving and encourage "Gifts for the Future." It will also discuss the changing faces of philanthropy and what we must do to assure that this tradition will endure. The Conference will approach the subject from the vantage point that everyone has a responsibility to the community, and that includes giving. The preliminary plan is to broadcast 1-2 hours of the 6-hour White House Conference through American Red Cross satellite network. The local Red Cross and United Way executives in communities where the Red Cross has satellite downlink capability are asked to consult with one another to determine if they wish to host a local forum around the White House Philanthropy Conference If so, you would be asked to engage a diverse group of individuals and organizations to help develop a local event. That is, we would ask that you ensure participants represent different aspects of philanthropy (e.g., the arts, human services, community development) and donors of all description from a wide range of ethnic and economic backgrounds. Your special attention to involving minorities, young people, and others not typically viewed as philanthropists would be particularly welcome. You and your planning group could determine the form and content of the local forum, with the exception of the satellite broadcast. You could simply host a viewing of the broadcast or you could plan a local forum with speakers, panels, workshops or whatever worked for your community. This would essentially be a turnkey operation: we would arrange for the broadcast and you would take it from there. Please talk with your (Red Cross, United Way) counterpart, and let us know at your earliest convenience if the two of you are interested in pursuing this opportunity. One response from the two of you would be appreciated. We will get back to you as-son as possible with additional details. And be sure to save the date! soon Yours truly, Steven Bullock Betty Beene President & CEO President & CEO American Red Cross United Way of America g\irv\arc-uwa-white JUL 27 '99 12:14PM IHCRP P.1/3 To Philey GEORGETOWN UNIVERSITY MEDICAL CENTER Institute for Health Care Research and Policy FACSIMILE COVER SHEET TO: Melanue Verveer FAX NO.: 456-6244 FROM: John Morahan DATE: PAGES INCLUDING THIS COVER SHEET: M COMMENTS: Malanna- 1 Given your interest in these issues, I thought you Night like a blind cupy of MY want note to Nickey. J 2233 Wisconsin Avenue, NW Suite 525 Washington DC 20007 202-687-0880 202-687-3110 facsimile JUL 27 '99 12:14PM IHCRP P.2/3 NOTE TO MICKEY IBARRA FROM: John Monahan DATE: July 27, 1999 RE: White House Philanthropy Conference Thanks so much for calling last week. It was great to hear from you, and 1 wish you well in your recruitment efforts. As you requested, I have taken the liberty of sharing information regarding the Philanthropy Conference with some of my colleagues at Casey, and I will forward any detailed information OT specific names to you directly. As we discussed, I strongly agree with your basic argument that state and local governments would have a great deal to offer in any public discussion concerning the changing role of philanthropy. As you know, there are numerous examples of philanthropic partnerships with government to raise public consciousness regarding important policy issues; to provide policymakers with needed information and analysis on a wide variety of subjects; to improve access to, and the effectiveness of, public programs; to leverage public and private resources for community development; among many, many other projects. While philanthropy cannot replace, and should not be considered a substitute for, government at any level, foundations can fill crucial gaps in public resources, complement public strategies in important ways, and catalyze public initiatives. Moreover, as devolution to state and local governments continues in many policy domains, the importance philanthropic connections to state and local officials will only increase. Examples of philanthropic efforts that partner with states and localities include: o The Annie Casey Foundation has worked with cities on expanding employment opportunities for low- income families, with states on public human service systems reform, and with neighborhood groups and local governments on community building strategies. Casey is currently launching a major project to encourage public and private players in various cities to work together in an unprecedented manner that will strengthen families and improve services to isolated low-income neighborhoods. 0 Carnegie Corporation, Kaiser Family Foundation, and numerous other foundations have worked with governors and state officials over the last several years to enhance public awareness about the importance of early childhood development and to expand services to young children. Successful efforts flowing from these initiatives include the California tobacco tax referendum led by Rob Reiner to increase county funding for early childhood programs, Governor Hunt's Smart Start expansion of Head Start and other quality early childhood programs statewide, Governor Dean's expansion of comprehensive health and social services to all preschool children, and Ohio's dramatic expansion of Head Start with state dollars. 0 The Rockefeller Foundation is working with city governments and public housing authorities across the country to provide comprehensive employment services and other supports to residents of public housing, focusing on one building or project at a time. 0 The Robert Wood Johnson Foundation is funding a number of health programs that include state and local government partnerships, e.g., its "Covering Kids" campaign is establishing public-private coalitions in every state to enroll children who are eligible for Medicaid or CHIP but have not been enrolled, and its support of Hillsborough County (Tampa Bay), Florida, and other local governments that are exploring innovative ways to patch together health care plans for their uninsured. JUL 27 '99 12:15PM IHCRP P.3/3 o Over the past three years, the Joyce Foundation has funded an ongoing series of presentations and discussions for Midwestern human service officials struggling to implement welfare reform. o The Kellogg Foundation is funding a number of health reform programs centered around local public health departments and public hospitals. o A number of smaller foundations are devoting a substantial portion, if not virtually all, their resources to supporting a wide range of public sector partnerships and direct aid programs targeted to particular communities. For example, the Steans Family Foundation is devoting virtually its entire capital to assisting people in the North Lawndale neighborhood in Chicago. o In a number of cities, such as Cleveland, Chicago, and San Francisco, there are long-standing ties between city and county governments and local community foundations that have led to housing development, commercial business expansion, and other types of civic reform efforts. o The national public interest groups have countless relationships with various foundations. For instance, the Annie Casey Foundation supports the National League of Cities in maintaining a resource center for local officials interested in improving services to youth and families. I hope this information is helpful to you in considering the potential role of state and local officials at the upcoming Philanthropy Conference. If you need further information on these projects or contact names, please call me. As I noted above, I will forward additional information as I come across it. Please take care of yourself. I can be reached at 202-687-0880 or 410-547-6600. Thanks. recommended by B,11 white Suzanne Feurt (mott) European Foundation Centa 3225128938 2 Fax 3225123265 (In Brusall) Patten? Canadian Frundating dtalln F. uk Slovaher F So. Afr. 1 CHARLES STEWART MOTT FOUNDATION WILLIAM S. WHITE PRESIDENT June 16, 1999 The Honorable Melanne Verveer Assistant to the President and Chief of Staff to the First Lady The White House Washington, DC 20500 Dear Melanne: Let me begin by thanking you for the invitation to meet with the First Lady and members of the administration regarding the humanitarian crisis in Kosovo and the neighboring countries. You may have noticed that I was unusually quiet during the meeting; in fact, I did not say a word which is surprising since, outside of the Soros foundations, Mott is one of the few foundations that actually has an office in the region. Indeed, just prior to and since the meeting, our Prague-based staff has been in Macedonia, Bosnia, Russia, Bulgaria, and of course, the Visegrad countries. So, we are continuing to go into these areas and monitor what is taking place. At its June 4, 1999 meeting, the Mott Foundation Board authorized an additional $2 million to address issues directly stemming from the Yugoslav crisis. We will be working closely with the Soros foundations as well as several Central and Eastern European outfits. One of the reasons I mentioned that we are in countries like Russia and the Ukraine on a regular basis is that, as you well know, these countries are having their own crisis and, as a funder of the not-for-profit sector, our grantees are feeling the effects of the various crises in many different ways. Indeed, I debated writing to you back in January regarding the plight of some of the Russian NGOs. For a variety of many good reasons, U.S. government funding is being cut to some of those organizations which appear to us to be doing a very good job. I believe some of the organizations that are receiving reduced funding are among those the First Lady has visited. Changing subjects entirely, Elan Garonzik, the Mott program officer in charge of the U.S. and global not-for-profit grantmaking, enjoyed participating in one of The White House planning meetings for the proposed conference on philanthropy. To me, one of the most important philanthropic vehicles are community foundations. If you think about it, a community 1200 MOTT FOUNDATION BUILDING FLINT, MI 48502-1851 (810) 238-5651 FAX (810) 766-1753 The Honorable Melanne Verveer June 16, 1999 Page 2 foundation enables the very rich person to join cause with the Biblical widow with only two mites. It is an organization for bringing people together to discuss basic community issues. We feel so strongly about the community foundation movement that we have, for about 20 years, helped the development of and have partnered with community foundations in this country. Further, we have taken what we have learned here and helped grow the community foundation movements in Canada, Central and Eastern Europe, the U.K., and now Germany, Italy, South Africa, et cetera. Attached is a brochure we prepared for the community foundation movement in the U.K. I am making the mistake of having too many messages in one letter, but I must add that we continue to enjoy the partnership with the federal government on the 21st Century Community Learning Centers initiatives and the micro-enterprise development initiatives. If we can be of help, please let us know. Sincerely, Bill William S. White WSW :aco Attachment TOUR de DOESN'T LANCE' SOUND POLICE AMERICAN CYCLIST LIKE '69 EXPECTED TO WIN IN PARIS SUNDAY, RAP MEETS ROCK CAPPING HEROIC AT WOODSTOCK, 1E COMEBACK WHO'S ON STAGE INTERVIEW, 1C IN ROME, N.Y., 3E YOUR MONEY: Amstrong: Cancer survivor MAKE MOST OF by Laurent Rebert Woodstock in swing: KJ. NO.INTHE USA FIRSTIN DAILY READERS STOCK OPTIONS 1,38 James on stage Thursday. 1E FRI./SAT./SUN., JULY 23-25, 1999 Returned to the sea NEWSLINE A QUICK READ ON THE NEWS Navy ship carries families, ashes of JFK Jr., wife, her sister WALL STREET: Dow Jones industrial average drops 33.56 points to 10,969.22; Nasdaq index dives 77.33 points to By Fred Bavies 2684 30-year Treasury bond yield climbs to 5.96% 1.4B. USA TODAY Japan's Nikkei average is down 267 points to 17,463 in early trading: yen is 116.70 per dollar. Hong Kong's Hang WOODS HOLE Mass. - AS Seng index is down 138 points to 13,231 early today. hundreds watched from shore, the cremated remains of John OFFICERS REMEMBERED: Congress memorial- F. Kennedy Jr., his wife and his Izes TWO Capitol Police officers killed on duty a year ago Sat- sister-in-law were returned to urday. Plan to beef up security moving slowly. 15A. the sea Thursday near where their bodies were recovered only 24 hours earlier. New crop going Family members. surround- ed by sailors in dress whites. to Baseball Hall held 8 half-hour ceremony on the fantall of the USS Briscoe. George Brett, left. Nolan Kennedy. 38, his wife. Caro- Ryan and Robin Yount are Ivn. 33; and Lauren Bessette, among the marquee names 34, died a week ago when his headed into the Baseball Hall private plane crashed off Mar- of Fame in Cooperstown, N.Y., tha's Vinevard Sunday. All three were elected The Navy destroyer carried photo in first year of eligibility. 3C. three folded U.S. fings and REFORM PARTY CONVENTION: Members of Weekend TV the Reform Party meet this weekend to elect new chairman coverage; index, 2A and to sort out issues over presidential candidacy. 3A Who's who in REFUGEES RETURNING: Kosovo refugees in USA Kennedy family, 4A DOW faced with the decision of returning home; free govern- ment flights begin Monday: 3A. His Irish neighbors say farewell, 5A NORTH KOREA FAMINE: AS many as 250.000 North Koreans may have died in nation's famine in three three wreaths with red. yellow years, study suggests. 13A. and white flowers to the site "If was very simple but very CHINA BAN: Popular Falun Gong spiritual sect is out- solemn.' said the Rev. Louis la- lawed by China in power play. 13A. spello. a Navy chaplain who as- sisted in the ceremony. TODAY'S DEBATE: House tax cut In USA TODAY's Mourners included Kenne- opinion, "Tax cut may look appetizing, but It's loaded with Agence dy's sister. Caroline Kennedy hidden costs' Mourning: Members of the Kennedy and Bessette families embrace before heading out to the burial aboard the USS Briscoe Thursday. Schlossberg his uncle. Sen. Ed. "Like children in A schoolvard. politicions are playing ward Kennedy: and his aunt, finders-keepers with money that doesn't belong to them, Euruce Kennedy Shriver says Rep. Bill Archer. R-Texas The Kennedy cousins were represented by Maria Shriver. MONEY: Compaq names Michael Capellas as CEO 1B. William Kennedy Smith and Coke CEO expresses high hopes for market. 1B. Rep. Patrick Kennedy. How to beat the S&P 500. John Waggoner column 3B Carolyn Kennedy and Lau ren Bessette's mother, Ann SPORTS: Baseball officials don't act on group of um- Freeman: her stepfather, Rich- pires attempt to withdraw resignations and keep jobs. IC. and Freeman: and Lisa Ann Be- Denver QBs ready to practice. NFL 1.8.17C ssette. the twin sister of Lauren, 1999-2000 NBA team by-team schedules. 1,16C also were aboard. Coast Guard patrol LIFE: Visiting bewitched Burkittsville, Md. ID enforced 3-mile security pe- European travel bargains come into view ID. rimeter. News helicopters were Theme park for wine lovers opens in London 4D. kept 10 miles away. Can't quite commit to the good Acura RL Test Drive 9D. Defense Secretary William Cohen granted Navy assistance COMING NEXT WEEK Matriarch: Funeral for Jacque- Eternal Flame: Family members gather at the gravesite of President Tragic loss: Funeral for Michael to the families, who cited Ken- line Kennedy Onesses in 1994 Kennedy and wife Jacqueline at Artington Cametery in 1995. Kennedy after 1997 accident nedy's destre to be buried at Mystery scam sea. He was an avid sauor Precing together the puz- The burial came after zie created by Connecti- cut man who disap- Kennedy funerals: Sad familiarity of a four-hour autopsy con- firmed that the three died of peared with millions of "multiple trauma dollars Monday "Death was instantaneous." By Rick Hampson the Kennedy mystique started in 1963 with ther Joseph in 1969; his cousin David in Cape and Islands District At- Vanishing America USA TODAY the death of a president and a solemn sa- 1984: his uncle-by-marriage Stephen Smith torney Philip Rollins said. A Virginia man keeps the lute by son who turned 3 the day of the fu. in 1989; his mother. Jacqueline. in 1994: his Investigators were awaiting sun from setting on his The funeral of a Kennedy is a national neral. That son's own memorial Mass takes grandmother Rose in 1995; his cousin Mi- results of toxicology tests from drive-in theater. Tuesday ritual part catharsis and part carnival, the place today at his late mother's church, af- chael in 1997. Wednesday night's autopsy. most personal of occasions transformed in- ter his burial at sea Thursday in the waters Their funerals produced unforgettable looking for signs of carbon to something ulterly public - even when he loved. sights. sounds and memories monoxide poisoning, which Written by John D. Buckley It's closed to the public His mother planned his Al President Kennedy's funeral. there could indicate that the The Kennedys bury their COVER STORY father's funeral, and he and was the young widow in the black vell. the had engine trouble Questions dead with stoic resolve. soar- his sister planned hers. and rumble of muffled drums and the hum of also have been raised about ing oratory and potent sym- now the sister planned his. plaintive bagpipes whether Kennedy was taking Crossword 100 bolism. Sometimes by design. sometimes For John Fitzgerald Kennedy Jr., death Al Robert funeral five years later, there pankillers for an ankle Injury. Editonal/Opinion 17,19A by accident. these ceremonies have helped and its rituals were just part of being a Ken- was the The Battle Hvmn of the Republic, Before the burial. people Lottenes 10D make the Kennedys the American family nedy; like politics and touch football sung without musical accompaniment lined the streets of Woods Hole Marketplace Today 10-11D of the American century He lost his newborn brother. Patrick. in as the families arrived in a mo- State-by-state 10A They had faced tragic death before. But 1963: his uncle Bobby in 1968; his grandia- Please see COVER STORY next page torcade of vans Stocks 4-11B "It feels like losing one of 89505 00005 your cousins or friends." said CCOPYRIGHT 1999 USA TODAY. division of Gannert Co inc House passes GOP's $792B tax cut Maria Hickey, a Falmouth resi- Subscriptions, customer service: 1-800-USA-0001 dent who brought her two young sons and sign that read simply "God Bless By Owen Ulimann pected through 2009 Two- dozen Republican moderates It has the same price tag. The service was the first of USA TODAY thirds of the surplus would be balked at the leaders USA SNAPSHOTS® $792 billion. but targets more several planned. including an preserved for Social Security. averted an embarrassing de- relief toward the middle class Irish farewell Thursday at St. WASHINGTON House Re- Clinton called it a "risky feat by drafting an 11th-hour The Senate plan would cul Patrick's Old Cathedral in Man- look at statistics that shape the nation publicans united to pass a plan" that doesn't leave enough compromise late Wednesday only the bottom income tax hattan; a Mass today at Man- $792 billion tax cut Thursday of the surplus for spending on that would effectively bar the rate. from 15% to 147. and hattan's St. Thomas More Refugees return to Kosovo but the plan faces major Medicare. defense, education income tax rate cuts from tak would maintain current rates Church: and a memorial ser- changes in the Senate and ve. and debt reduction ing effect unless the $3.6 trillion on capital gains. About 95,000 of the estimated 790,000 vice Saturday in the Bessettes' to threat from the White House But House Speaker Dennis public debt declines each year. One break for the affiuent hometown of Greenwich, Conn refugees who fied Kosovo to neighboring The 10-year plan. the GOP's Hastert of Illinois said. "It is not The Senate version was ap- expansion of tax-deferred indi- regions remain there How many have returned: Thousands have paid re- domestic priority. was ap- risky to give the American peo- proved Wednesday by the Fl- vidual retirement accounts. spects by leaving flowers, flags proved 223-208 ple their money back" nance Committee and is sched- and notes at spots associated Four Republicans voted no: Federal Reserve Chairman uled for a vote late next week Fall deal possible, 15A with the Kennedy family. six Democrats supported IL Alan Greenspan also weighed The lines continued to grow Where Returned to Kosovo Given President Clinton's op- in Thursday against the plan, outside the Kennedys loft they were (in thousands) position. the plan is more likely telling a House committee "the Hint of new rate hike home in Manhattan's TriBeCa Montenegro 50.1 to become campaign fodder timing is not right" for tax cut. neighborhood than law. But a Senate bill with The House measure would: Macedonia 215.5 Federal Reserve Chairman Alan Also Thursday, divers more bipartisan support could Cut all income tax rates by Greenspan told Congress Thursday that 421.8 brought up more wreckage Albania set the stage in the fall for a tax- 10% the economy's performance has been from Kennedy's Piper Sarato- Bosnia-Herzegovina 6.8 cut deal between Congress and Reduce the top capital "exceptional" but hinted that potential ga. which was found in 115 feet Total 694.2 the White House. gains tax rate to 15% problems. including stock market bub- of water Wednesday Key parts. House Republican leaders Eliminate estate taxes ble, could cause the central bank to Many refugees in USA want to return, 3A including the plane's instru- said their bill would return to Ease the so-called mar- raise rates again. Stock and bond prices ments, propeller and engine, South Requires taxpayers a chunk of the $3 tril- riage penalty. Greenspen dropped in response. Story, 1B. are being examined for evi. TODAY bon federal budget surplus ex The plan almost died when 8 dence of mechanical problems Mr. Gates Giveth Seems that Bill Gates can't even an overwhelming assumption of good- give it away. For most of the 1990s, of will enjoyed by neither of the counter- course, Mr. Gates has been tied up parts in government or business. In with a Justice Department that be- other words, managements of founda- lieves it knows the computer market tions are as likely to pursue their own better than any of its players. Ralph interests as they are anything else, Nader accuses the Microsoft CEO of and when they have lots of money to thinking he is "immune to public throw into a contest they might alter scrutiny." Now comes a visiting pro- the contest itself. This, of course, is fessor at Johns Hopkins who suggests precisely what the founders of the that even the money Mr. Gates is do- American system meant by a free soci- nating to charity really doesn't fully ety, and they would have seen in Mi- belong to him. crosoft's huge assets a powerful hedge In his opinion piece in the latest is- against the kind of arbitrary legal ac- sue of the Chronicle of Higher Educa- tion we have seen in, say, the numer- tion, Daniel S. Greenberg, author of ous antitrust actions filed against Mi- "The Politics of Pure Science," puts it crosoft itself. this way: "Although Bill Gates and his At the end of the day, the problem fellow foundation builders merit grati- of foundation management is philo- tude for their generosity, the fact is sophically no different from the gen- that much of their donated wealth eral problem of accountability in any would end up in public treasuries if the business organization. From the out- tax laws didn't permit its diversion for side, a free press and a citizenry free privately controlled philanthropic pur- to organize and publicize are powerful poses. That makes a strong argument counterweights to any abuse of power. for transparency in foundations' oper- From the inside, history demonstrates ations: The public has a right to know all too clearly that there is simply no how, why, by whom, and with what ef- substitute for a donor who insists on as fect the money that might have be- much control over his foundation as he longed to it is being spent." does over his company. Indeed, we re- This is indeed a novel argument, call Henry Ford II's resignation from one that George III might have envied. the Ford Foundation in 1977, on the The complaint is not that Mr. Gates, grounds that its trustees and staff had Microsoft or the William H. Gates insufficient respect for "the [capital- Foundation has broken any law. It is ist) system that makes the foundation simply that the public (read: govern- possible." ment) has a stake in the foundation's All this, however, is argument less operations simply because had the tax for public than private accountability. laws been otherwise the money might Now at more than $10 billion, the have flowed into the Internal Revenue William H. Gates foundation has be- Service's coffers. Taken to its logical come the fourth largest in the country, conclusion, of course, this means that testament to its founder's business the government has a strong prior acuity, a booming stock market and a claim on all our money-and thus a system that vests the power to deter- stake in how we spend it. That doesn't mine winners and losers in the hands strike us as an argument bound to be of consumers. Many of us, of course, persuasive outside Richard Gep- will be keenly interested in which hardt's office. charities and projects Mr. Gates fa- It's a pity, because there is much to vors with his billions, and we are free Mr. Greenberg's larger point, to wit, to attack, cheer or publicize as we see that foundations often operate without fit. But let's not give the government much scrutiny, in ways that their any more bad ideas about whose founders never anticipated and with money Mr. Gates is spending. THE WALL STREET JOURNAL FRIDAY, JULY 23, 1999 Refer Hero youth In Philonthopy youth at risa 25,000 to teams 7 your people - 12-15 yr old to make grants 4 month procen 15 Starts to the puth Sames could get one 2 There young people topped for $ - they rawdit Remelves Develop am hopic Solam Valley- - for drops off at 35-75 SV- 2 1 Created wives huren Club Keiri Form - by VC 38 you old - Idea 2 giving stock Claude Rosemberg Wealthyt Wise freed of John Gardner Guidestar - 990s store Vush - frue 1 Infosal 42 E Bay 100,000 pre IPO stock covid sell right away now 30 m Wait untu prolitate -? 10 you ! 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New www.lun n briefity my line for charity Benne Healy -7 les leaturily The only plul. projects - Nat'e y-st carmel - ceruces based fundraing Nancy Swanson - ED of state based 4-H for late in SD - Michigan Project yrth on Bards - McchCannel 7 Ford Yrur Philarth K-12EQ in Phil Kathema agard 616767 7205 - Student serve in Philanthoper iny leary hont me a for lat On boads Your as resoures Gralle Project - Patch Adams FFA leadership + sine Boy Scorts resume + life amy do aford turn Save the Children. WEB OF SUPPORT FOR U.S. CHILDREN™ Catherine Milton Executive Director July 20, 1999 Shirley Sagawa Office of the First Lady Old Executive Office Building Room 101 Washington, DC 20500 Dear Shirley: As we approach the beginning of our third year of Web of Support programs for children in the United States, I want to take the opportunity to share some of our progress and activities during the past year. Save the Children's 1998 Annual Report summarizes our work in the United States, the developing world, and in crisis situations. 1998 was an especially challenging year for children globally. In response, Save the Children increased its efforts to deliver focused, tangible, measurable benefits to children and the communities where they live. I have also enclosed our Web of Support newsletter, Out-of School Times. This publication describes a variety of ways in which helping communities provide quality after school programs including safe places, caring adults, and constructive activities to disadvantaged children in the United States. As we look to the future, we are concentrating on using cost-efficient, effective ways of bringing the Web of Support to more children across the United States. I hope each of you who have played a part in supporting the work of Save the Children will see the results of your commitment in these reports. Because of you, and many other supporters like you, Save the Children reached more than eight million children and families in 1998. We thank you deeply for making this possible. Sincerely, Cath Great to See you as always - Catherine Milton thanks for suggestears. Executive Director U.S. Programs We are moving really fost ar our Kedzy Kidz to and in fall. keepin might wont touch- ! Cath 54 Wilton Road, Westport, Connecticut 06880 tel 203-221-3730 / fax 203-221-4082 / email cmilton@savechildren org Clinton Presidential Records Digital Records Marker This is not a presidential record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. This marker identifies the place of a publication. Publications have not been scanned in their entirety for the purpose of digitization. To see the full publication please search online or visit the Clinton Presidential Library's Research Room. Vol. 1, Issue 1, Spring 1999 Y Save the Children® WEB OF SUPPORT FOR U.S. CHILDREN TM OUT-OF-SCHOOL TiMES Youth and Seniors: Message from the Executive Director: A Win-Win Three years ago Save the Children launched its Web The Foster Grandparents program is Arkansas, and Arizona. Save the of Support initia- an imaginative and enduring program Children is also promoting the involve- tive to help low- that has been in operation throughout ment of seniors in all of its activities to income children the United States for over 30 years. The better serve the needs of children in both have caring adults, program is administered by The National rural and urban communities. safe places, and Senior Service Corps, a federal program The Foster Grandparents program is constructive activi- Catherine Milton that provides support through unique. It offers low-income seniors, ties during the the Corporation for National Service. age 60 and older, opportunities to serve important out-of-school hours. We now In fall of 1998, Save the Children was as mentors and tutors for children and work with 85 community partners in geo- asked to develop Foster Grandparent youth with special needs. Foster grand- graphically and demographically diverse programs with community partners in parents provide 20 hours of weekly ser- communities, ranging from inner city areas Connecticut, South Carolina, Georgia, vice to community organizations at like Bedford-Stuyvesant to the Zuni nation in New Mexico, and from small rural towns Kentucky, Tennessee, Mississippi, schools and youth centers. Each foster deep in the Mississippi Delta to major cities grandparent receives a modest tax-free like Los Angeles. stipend, reimbursement for transporta- Thanks to support from the Packard tion, meals during service, an annual Foundation, we have been able to work with physical examination, and accident Aguirre International, an organization liability insurance while on duty. Most expert in outcome evaluations, to importantly, the Foster Grandparent determine specifically how children are program gives participants the opportu- benefiting from our assistance and to use nity to share a lifetime of experience this information to improve the quality of with children and youth, and to join the programs within the Web of Support. The half million older Americans who are results of the most recent Aguirre evalua- strengthening communities across tion are in, and they affirm our belief that the country. the Web of Support is making a significant To date, Save the Children has recruit- difference for young people. For example: ed, hired, and trained more than 80 96% of the youth improved their foster grandparents to work as tutors reading comprehension level as demon- and mentors with from one up to four strated by the Accelerated Reading children. Seniors who felt isolated in Program's computer-assisted testing. their lives now have a reason "to get up National Council for Negro Women, in the morning." Kids who felt alone Duncan, Mississippi now have "a nice lady who loves and The percentage of youth served by our helps me." program at the Madison Youth Council By the end of the year, Save the in Madison, Arkansas, who completed 81-100% of their homework more than Children will have 273 foster grand- doubled. The number of these youth who parents linked with over 1100 young performed at or above norm in academic people. In this program everyone wins! Foster Grandparent Carmen Maldonado works with subjects increased from 76% to 96%. 5 year-old Celina Vargas of Bridgeport, Connecticut. continued on page 7 1 NATIONAL ENDOWMENT FOR THE HUMANITIES 1100 PENNSYLVANIA AVENUE, N.W. WASHINGTON, D.C. 20506 THE CHAIRMAN September 28, 2000 Ms. Shirley Sagawa Deputy Assistant to the President and Deputy Chief of Staff to the First Lady The White House Room 100EEOB 1600 Pennsylvania Avenue, N.W. Washington, DC 20500 Dear Shirley: I want to congratulate you on the stellar Ephilanthropy conference you organized earlier this week in San Jose. It was an historic gathering, and our staff at the National Endowment for the Humanities deeply appreciated the opportunity to participate in such a meaningful way. The conference presented a wonderful opportunity for showcasing NEH's leadership role in the use of technology and our ability to provide greater access to humanities resources. We especially enjoyed learning from all the groups represented about the enormous potential the internet offers to generate stronger support for the humanities. Congratulations again on a terrific event. With warmest regards. Sincerely, Bill William R. Ferris VIDEO REQUEST PROPOSAL TODAY'S DATE 9/18/00 ACCEPT REGRET PENDING TO: Jamie Vavonese FROM: Shirley Sagawa, Deputy Assistant to the President and Deputy Chief of Staff to the First Lady 1 REQUEST: Video message to welcome the 700 plus delegates to the Independent Sector Annual Meeting, October 22 - 24, 2000. PURPOSE: To recognize Independent Sector (IS) on the occasion of their twentieth anniversary and to welcome the 700 plus delegates. DATE AND TIME: The video is needed by Friday, October 20, 2000 to be shown at the conference on Sunday, October 22, 2000. SOURCE OF PAYMENT: To be determined BACKGROUND: The video will be shown to over 700 people on October 22, 2000 in Washington, DC. Independent Sector is partnering with the White House Millennium Council and several other national foundations and non-profit organizations to sponsor an ePhilanthropy Conference that will be held in San Jose, California on September 25 and 26, 2000. Additionally, October 22 is the one-year anniversary of the first ever White House Conference on Philanthropy. DURATION: 2-3 minutes REMARKS: Talking points attached. STAFF CONTACT: Shirley Sagawa, Deputy Chief of Staff, Office of the First Lady, 456-2583 ORIGIN OF PROPOSAL: White House Staff 09/12/2000 15:46 2024676101 INDEPENDENT SECTOR PAGE 01/02 IS INDEPENDENT SECTOR September 12, 2000 A National Leadership Forum to Encourage VIA FACSIMILE- 202/456-6244 Philantbropy, Volunteering, Ms. Shirley Sagawa Not-for-Profit Initiative Deputy Assistant to the President and Citizen Action The White House Washington, DC 20500 1200 Eighteenth Street, NW Suite 100 Dear Shirley, Washington, DC 20036 202-467-6100 I am writing to request your assistance in arranging for a video message from fax 202-467-6101 First Lady Hillary Rodham Clinton recognizing INDEPENDENT SECTOR (IS) on the www.IndependentScctor.arg occasion of our twentieth anniversary and welcoming the 700 plus delegates at [email protected] our Annual Meeting on October 22-24, 2000. As I am sure you know, October 22 is the one year anniversary of the first-ever "White House Conference on PeterB. Goldberg Philanthropy: Gifts to the Future," and it would be wonderful to have a message Coairperson from the First Lady in her capacity as the chair of that conference. Patricia L. Willis Vice Chairperson Robert B. Rogers The IS annual meeting is the premier meeting ground for leaders in the nonprofit Treasurer and philanthropic community. Our featured speakers this year include Vartan Lucille A. Echohawk Secretary Gregorian, president of the Carnegie Corporation; Dennis Archer, mayor of Sara E. Melendez Detroit; Jeffrey Swartz, president and CEO of Timberland; and Dorothy President Stoneman, founder and president of YouthBuild U.S.A., who will receive the Board of Directors John W. Gardner Leadership Award. I enclose the preliminary program with Marilda Candara Alfonso Judy Belk information on the many more outstanding speakers who will be with us, Seephen E.Brimigion Michael R. Brown including your good self. Diana Campoamor Kinshasha Holman Conwill Jane A. Couch I am enclosing a set of talking points that you may use in briefing the First Lady Barbara D. Finberg Barry D. Gaberman about INDEPENDENT SECTOR and the conference. She may want to incorporate Fred Crandy Donald R. Greene some of these points into her message. Pred Krupp Hanmin Liu John E. Marshall, III Thank you very much for your consideration of this request. I know that the First Gabriella E. Morris Rica Moys Lady's interest in the philanthropic community is a very strong one and that our Anne Firth Murray members would greatly appreciate hearing from her as they gather in Washington Roger H. Nozaki William S. Recse in the fall. Steven A. Schroeder John R. Seffrin Benjamin R. Shute, Jr. Chuck). Supple Sincerely, Erte Swanson Linda Tarr-Whelan Herman Art Taylor Amuro Varges Sara William S. White Kirke P. Wilson Sara E. Meléndez John W. Gardner President and Chief Executive Officer Founding Chairperson and Chairperson Emeritus Brian Conneil cc: Malcolm Richardson Founding President Barbara D. Finberg Immediate Past Chairperson enclosure GiveFric 46 2024676101 INDEPENDENT SECTOR PAGE 02/02 Talking Points for Mrs. Clinton (Video for IS Conference) 1. I'm pleased to welcome the members of INDEPENDENT SECTOR to Washington, DC, for your Twentieth Anniversary annual conference. And, congratulations to INDEPENDENT SECTOR for twenty years of leadership on major issues facing the philanthropic community and as a major meeting ground in philanthropy and not- for-profit initiative. 2. You are coming together at a time of another anniversary. One year ago, we held the first White House Conference on Philanthropy, and I was pleased to chair that event. 3. I'm sure you know, and we discovered, philanthropy and not-for-profit initiative are alive and well in this country. Your research - so helpful to all of us - rings true. Not only are the rich traditions of giving, volunteering and not-for-profit initiative still with us, there are new, entrepreneurial and creative approaches and programs, involving people of all ages. 4. Also from your research we know that the nonprofit sector is also a growing economic force in our country, accounting for more than 8% of employment and nearly 7% of the national income. There are today approximately 1.5 million nonprofit organizations in the country. 5. Throughout my travels, both in the United States and abroad, I have seen first hand what a tremendous difference you and your organizations are making in the lives of millions of people. Whether it is in the relief of human suffering, in education, the arts, the environment, as foundations, as corporate grantmakers or in informing the government about policy issues, nonprofit organizations give voice to the aspirations of people all of the world and help make their dreams into reality. 6. The President and I wish you well, as you go about your work over the next few days - work that is vital to the future of this country, and as to what kind of society we will have, years from now. 7. Your theme, "We the People: Fulfilling the Promise" is so appropriate, for it is truly we the people who must be involved in our communities, and who must keep the spirit of giving and volunteering alive and ever growing. And, your work is vital to the health of our democracy. 8. So work, learn, network, and plan together. For it is you who must play a major role in keeping the spirit alive. Good luck and great success to you all. August 29, 2000 Dear Colleague: Last fall the President and the First Lady hosted the first White House Conference on Philanthropy, and we are pleased to send you the enclosed report which captures the highlights of the discussion and summarizes the conference's recommendations. The President was determined that the conference should not be an end in itself but instead serve as a catalyst for continued activity to promote giving and strengthen America's nonprofit organizations. Toward this end, he created an interagency Task Force on Nonprofits and asked this group to identify ways that federal agencies can contribute to the important work being done by the nation's nonprofits and strengthen existing partnerships. The Task Force will issue its report later this fall. Several A number of conference speakers emphasized the growing importance of the Internet and called for follow-up meetings to explore this topic. Several national organizations and corporations, led by Independent Sector, will co-sponsor a forum later this month in San Jose to examine how this new technology can be used to increase giving. "Expanding Philanthropy through the Internet" will be held at the Fairmount Hotel in San Jose on September 25-26, and further information, with a full list of sponsors, can be found on the Independent Sector website at www.independentsector.org by several other Since the conference, we have heard about/exciting new initiatives to stimulate philanthropy, including plansito expand giving by youth. In addition, as a result of the conference, the President unveiled a package on new charitable tax proposals, including a new deduction for nonitemizers. Finally, The the general 7 the Mott Fonle, the Sc EDTV will 500 Lave available a 15min-50 Videstape other and care, narratal Paul 6, To learn more about these initiatives, or the many innovative projects already underway, we encourage you to read this report and visit our website at www.whitehouse.gov. Newsan Sincerely, Shirley S. Sagawa Ellen McCulloch-Lovell Deputy Assistant to the President and Deputy Assistant to the President and Deputy Chief of Staff to the First Lady Advisor to the First Lady on the Millennium Leverage at youth work 181$ as become adults they brome donors themselves Nahonal Regional/ Challenge Youthmbutin Local 11 Fund 11 Match " + $ $ $ $ in nnew tending $ $ + tor community cause + 2 SEAL < greater awareness of community needs by youth + improved Sense of competence by youth centribu to their development bearthy