The Philanthropic Trends Digest

 
A publication of Lawson Associates, Inc.

February 1, 2008


"We must accept finite disappointment, but we must never lose infinite hope."

Martin Luther King, Jr.


Dear Friend,

Oil has hit $100 a barrel and the stock market seems to be heading deeper into negative territory every session. What does this mean for giving in 2008? Some say it will go down if the economy continues to lose its footing. Others are neutral. I think giving will remain on the 2006-2007 level and not recede. I say this for several reasons. First, givers (particularly large givers) do not give for economic reasons. They give because they want to make the world a better place in which all of us can live. Second, the real money out there is still mostly there. If non-profits stick to their message and work their prospects with more vigor and professional loving care the money will continue to flow in 2008. 
 
For a more in-depth look at this issue, I refer you to an excellent article in Advancing Philanthropy (January / February, 2008 p.20 by Paul Lagasse). In that same issue is an equally excellent article by Mary Ellen Collins (p. 27).
 
Sincerely,
Douglas M. Lawson, Ph.D.

_____________________________________


Did you know?

 
KATRINA VOLUNTEERS STAYING IN GULF COAST
Since Katrina, more than 1 million volunteers have gone to the Gulf Coast. Many have given up holidays and vacations to give their time and energy to others. Many have left their permanent homes and stayed to help rebuild. The exact number of long-term volunteers is not known but their effect on the rebuilding is not. They are making a big difference in the lives of others but also in their lives as well as they "change their lives of success to lives of significance".
USA Today, January 15, 2008, p. 10
 
OLDEST BIG SISTER (99) LIVES IN DALLAS
Iva Broadus at 99 is the oldest Big Sister in the Big Brothers Big Sisters Program of America. She mentors a 10 year old named DeAngela Williams in Dallas, Texas. We congratulate Iva and are proud to say that she is a mentor in Big Brothers Big Sisters of North Texas, which is a client of Lawson Associates. We encourage others to follow Iva's lead toward a happier life as a senior citizen.
Dallas Morning News, January 13, 2008, p. 1B
 
CONGRESS HINTING AT NEW FUNDRAISING CURBS

Two congressional committees are taking a close look at fundraising costs and marketing deals between non-profits and businesses. Overhead costs and sweet deals are getting scrutiny from two committees: House Oversight and Government Reform Committee and the Senate Banking, Housing and Urban Affairs Committee. These are in addition to the interest in fighting abuses by the Senate Finance Committee. This look by congress at fundraising is welcomed, we only hope it goes far enough, but not too far.
The Chronicle of Philanthropy, January 10, 2008, p. 18
 
PUBLIC RESEARCH UNIVERSITIES FIGHT BACK HARVARD

Harvard University's President Drew Gilpin Faust's suggestion that lesser - endowed universities back off from scientific research and concentrate on social science and the humanities has met with a loud rejection from 11 public research universities including the University of Michigan and Pennsylvania State University.  Public Universities have been under extreme financial decreases from the states but they have maintained their excellence in the world of scientific research. The 11 public universities are responsible for $4.5 billion worth of research each year. Harvard cannot and does not have the capability of matching this.
Business Week, January 14, 2008, p. 75
USA Today, January 23, 2008, p. 13H
 
TEN INSPIRATIONAL PHILANTHROPISTS

Ten individuals, from Caroline Kennedy to Gladys Knight, have been picked by AARP Magazine as the ten "go-getters" who are using their passion for action to make the world a better place. Kennedy's passion is raising money (tens of millions) to improve New York's public schools. Knight's passion is to show others how to prevent diabetes and live a healthy life. From helping Iraqi children to promoting affordable housing, the other eight have passion for helping others which is what philanthropy is all about.
AARP Magazine, January & February, 2008, p. 37
 
GOOGLE'S CORPORATE FOUNDATION BECOMES THE LARGEST

With assets now of $2 billion, Google's corporate foundation has become the largest corporate foundation in America surpassing Wells Fargo, Alcoa, Verizon and Fidelity. But of potentially even more importance is Google's new ventures into a large philanthropic effort that erases the usual boundaries between the profit and non-profit worlds. Some of these new endeavors include efforts to create systems that will predict and help prevent disease pandemics, to empower poor people with public service information, and to create jobs by having Google invest in small and mid-size business ventures in developing countries.
Wall Street Journal, January 18, 2008, p. B1
New York Times, January 18, 2008, p. C1
 
SAVING THE WORLD BY STAYING HOME

In an era of global warming warnings, some individuals are advocating stay-at-home vacations in order to promote a carbon-offset program that uses less jet fuel and gasoline. Groups like Global Cool are asking if we really need that vacation abroad and business executives are questioning whether we should continue business meetings face to face in other cities. This is a unique call to action. We will follow where it goes.
Wall Street Journal, January 18, 2008, p. W3
 
A MIND IS A TERRIBLE THING TO WASTE

Thirty-five years after first using this slogan, the United Negro College Fund is re-branding its name as UNCF with the slogan as an add-on. We wish them well in this undertaking as UNCF continues as the largest minority scholarship program in the U.S. Last year, UNCF raised $195 million from more than 300,000 donors.  We hope the new name branding and slogan will help them raise even more this year.
New York Times, January 17, 2008, p. C5
 
AN ANONYMOUS GIFT IS A HARD SECRET TO KEEP

Last year more philanthropists made anonymous gifts of $5 million or more than in any other year in recent history (37 in 2007; 27 in 2006; and 13 in 2004). Many givers consider anonymous gifts more sincere. They also consider their own safety from the publicity of a large gift and some fear more fund raising pitches once their gift is known. Regardless of how much the donor and the recipient wish to keep the gift a secret, it often is accidentally exposed. Some states are passing laws to protect donor privacy. This will be interesting to watch in the months ahead.
Wall Street Journal, January 9, 2008, p. D1
 
DESIGNATED GIFTS CAN HURT A CHARITY

Just ask the American Red Cross who announced that a $200 million deficit would force it to make deep staff cuts. With billions raised after 9/11 and Katrina, the American Red Cross is perhaps the last non-profit you would expect to run a deficit. However, since donors insisted that most all the money should be spent on 9/11 and Katrina only, the Red Cross was not left with enough money to run itself. The Red Cross' Donor Direct program (which spends donor designated funds only where the donor expects) is a good idea, but it just does not supply a financial answer to other needs that must be met. There is no easy answer to this problem, but in our opinion the Red Cross must find new and creative ways to raise money beyond the big disaster appeals, which are so successful.
New York Times, January 10, 2008, p. 3
 
CHARITABLE CONTRIBUTION EARN A ROUND WITH WOODS

How can you get to play a round of gold with Tiger Woods? It's easy. Just make a contribution between $40,000 and $660,000. Three Network Appliance executives made the $660,000 contribution and got to play a round with Woods at his home course near Orlando with Warren Buffett serving as caddy. What a great way to put the fun into fundraising.
USA Today, January 25, 2008, p. 1B
 
ELITE PREP SCHOOLS ASKED TO FOLLOW HARVARD'S LEAD

Many prep schools with large endowments such as Phillips Exeter Academy ($1 billion); Deerfield Academy ($386 million); and the Groton School ($293.7 million) are being asked to follow the Harvard and Yale lead toward making education affordable for middle class families by dipping into their large endowments for funds. To fill the endowment coffers back, alumni of the schools are being asked to give more to the endowments. This is an interesting idea we need follow.
New York Times, January 26, 2008, p. A1
 
BILL GATES CALLS FOR KINDER CAPITALISM

In a recent speech at the World Economic Forum in Davos, Switzerland, Bill Gates (the richest man in the U.S. and a competitive capitalist) called for a revision of capitalism to a "creative capitalism" that uses market forces to address poor countries needs. His plan among other things calls for the creation of businesses that focus on building products and services for the poor. What a beautiful idea. We hope he and his wife Melinda succeed in this effort.
Wall Street Journal, January 24, 2008, p. 1
 
DALLAS PERFORMING ARTS CENTER GOES OVER THE TOP

Nancy Hamon (one of Dallas' premier philanthropists) has given $10 million to the Dallas Center for the Performing Arts; putting the fundraising campaign $2 million over its goal of $275 million. Ms. Hamon (who is 89) spends each year half in San Francisco (where she is also a major donor) and half in Dallas. Many others including Margot and Bill Winspear have given millions to this endeavor, but it took Nancy Hamon to put it over the top.
Dallas Morning News, January 22, 2008, p. 1
 
CHRONICLE ANNOUNCES 50 TOP DONORS OF 2007
- - According to the Chronicle of Philanthropy, the 50 top donors of 2007 committed $7.3 billion to charity in 2007. Twenty made gifts of $100 million or more, just one shy of the 21 who each gave $100 million or more in 2006. The donor giving the most was William Barron Hilton ($1.2 billion). Others include Michael R. Bloomberg, the Mayor of New York ($205 million); and T. Boone Pickens of Dallas ($200.8 million), both of whom have made the list three other times. Those making the list seven other times include Eli and Edythe L. Broad; Peter B. Lewis; and Larry I. Lokey.
The Chronicle of Philanthropy, January 24, 2008, p. 6







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