"The joy of giving is as often overlooked as the giving of joy."

David Barton

Dear Friend,

The December 10, 2007 Wall Street Journal Report on "Philanthropy" is one of the best summations of the philanthropic scene in America at the end of 2007. I recommend that you secure copies of this twelve page report for your board members, staff and key major donors. They can be secured from the Wall Street Journal (December 10, 2007, p. R1-12) at $5 for one copy, $2 for each additional copy up to 50 and $.25 for each copy thereafter. Call 1-800-Journal or fax 1-413-598-2259. Key among the eight articles are "A Philanthropic Snapshop" (R.4) and "A Guide to Giving" (R.5).
 
Sincerely,
Douglas M. Lawson, Ph.D.

_____________________________________


Did you know?

 
GIVE-BACK PHILANTHROPIC CAREERS
A second career in the world of non-profits can be very rewarding. It can also not be easy as Robert Pondiscio, a writer for BusinessWeek, found out when he left BusinessWeek as communications director and began teaching in the South Bronx as a NYC Teaching Fellow. After five years he "hit the wall", but a former student, Amber Davila, inspired him to stay in the non-profit world after she won a full scholarship to Manhattan's Trevor Day School. He became communications director of Prep for Prep, a non-profit that had secured the scholarship for Amber. He has found a niche he is happy in and it relates to his earlier career in the for profit world of BusinessWeek. Congratulations to both Amber and Robert.
BusinessWeek, December 17, 2007, p. SC02
 
DOES THE INTERNET WORK FOR PHILANTHROPY?
The Case Foundation intends to find out the answer. Using contests in Parade Magazine and the Causes Section of the Facebook Web (among other things), Case is finding out how non-profits can use their social platforms to build and encourage more people to give even though the amounts of each gift on average are small. This is an important undertaking as this new method of fundraising grows in the years to come.
New York Times, December 13, 2007, p. A22
 
CHARITY'S SHARE OF PRODUCT SALES RAISES CONCERNS
Concerns by non-profit experts regarding the practice of including donations as a part of a product purchase have been growing in recent months. These experts point out that this kind of giving is unregulated, and in most cases unaccountable. The potential for scams is large. Arrangements are usually so loose that donors cannot be sure where their contributions are going. We are basically opposed to regulations but in this case it may be needed.
New York Times, December 13, 2007, p. A1
 
THE LITTLE ROCKEFELLERS AND PHILANTHROPY
Middle-class givers who are not in the Gates, Buffett, or Pickens class are significant givers in America - almost $300 million in total was given last year. They are becoming the most demanding part of the philanthropic community as they ask non-profits for accountability and for clear mission statements. More middleclass donors are contributing more every year and at the same time demanding more from the charities they support. These "Little Rockefellers" are rendering a service to the world of philanthropy that is badly needed.
Smart Money, January, 2008, p. 77
 
KIDNEY DONATIONS BECOME CONTROVERSIAL
A small sect called Jesus Christians asks its members to donate a kidney to a person that needs a kidney transplant. A hospital in Toronto, Canada recently turned down the gift of a kidney by a member of Jesus Christians. The hospital rejected the offer on the grounds the donor was motivated by a wish for publicity, not by altruism. The donor and the potential recipient are currently looking for a hospital in the U.S. willing to accept and perform the transplant. We wish them the best of luck.
Wall Street Journal, December 13, 2007, p. 1
 
GIVING MAKES THE GIVER FEEL GOOD
As the season for giving comes to an end, it is worthwhile to note that the giver always gets back more than the receiver receives. In a book I wrote, More Give to Live, I pointed out that givers receive better health, more happiness, and longer lives than non-givers. Dr. Ellen J. Langer, a Harvard professor, points out that the biggest effect of giving gifts is on ourselves. She notes that "giving to others reinforces our feelings for them and makes us feel effective and caring". Giving is a better way to improve our lives not just during the season of giving, but throughout the year. May your best New Year's Resolution this year be to become a better giver in 2008.
New York Times, December 11, 2007, p. D5
 
VETERANS CHARITIES ARE CRITICIZED
Eight veteran's charities gave less than a third of the money they raised to the causes they promote according to the American Institute of Philanthropy. This is far below the national standard for charities in America. The institute gave F's to twelve of the military charities reviewed and D's to eight. Five were awarded A pluses. Before you give to a veterans charity, I suggest you ask the Institute for the names of these A plus veteran charities.
Dallas Morning News, December 13, 2007, p. 2A
The Washington Post, Philip Rucker
 
A NEW BREED OF BILLIONAIRE PUSHES SOCIAL CHANGE
Husnu M. Ozyegin, the richest man in Turkey, has spent over $50 million of his own money building 36 primary schools in the poorest parts of Turkey. Carlos Slim Helu, the richest man in the world, has pledged billions of dollars to aid health and education in Mexico. And in India, Azim Premji has pledged large sums to support elementary education in India. Like the Rockefellers and Gates of America, these newly rich billionaires are dedicated not only to making more money, but to also making the world a better place in which to live.
New York Times, December 14, 2007, p. C1
 
ENTREPRENEURS ARE THE MOST GENEROUS
During our thirty-eight years in the fundraising business, we at Lawson Associates have known that the most generous givers are often small business entrepreneurs. Ray Kroc, founder of McDonald's, started with nothing and when he became rich, he gave back generously. He was followed by the generosity of his wife Joan. Bill Gates started with only an idea and when he became rich, he also gave back. This is a pattern. This tendency of entrepreneurial types to give back has recently been confirmed by a study conducted by the Center on Philanthropy at Indiana University sponsored by the Bank of America. The study also documented how and why wealthy Americans give to charities. www.philantrophy.iupui.edu
The Chronicle of Philanthropy, December 13, 2007, p. 12
 
GENEROSITY AND A HORMONE ARE CONNECTED
Generosity, the feeling of caring, is connected to oxytocin, a hormone released by the brain as a reaction to social stimuli. A study by Dr. Paul Zak at Claremont (CA) Graduate University has shown that people who were given oxytocin gave significantly more money to strangers than study participants who took a placebo. Dr. Stephanie Brown, of the University of Michigan, points out, however, that a dose of the hormone is not enough. The person giving also has to feel a connection to the other person. Dr. Zak adds, "When someone is kind to you, you are more likely to be kind to others because of the oxytocin that is released in your brain". The joy of giving is more than just a release of a hormone, but now we know it is helped by it.
USA Today, December 18, 2007, p. 90
 
PICKING A CHARITY THE SMARTER WAY
The smartest way to pick a charity you give to is to check out how much of the charity's income goes to programs, as opposed to overhead. The higher the program ratio of program to income the better job the charity is doing with your money. Some sound ratios for spending on programs are:  95% for food banks, 75% for museums and 80% for health care agencies. Look upon your giving to a charity as an investment and even though you are giving from your heart, your head should make sure it is a good investment of your dollars.
Money, January, 2008, p. 26
 
FOUNDATION MOTIVATES TOP STUDENTS TO TEACHING
The Woodrow Wilson National Fellowship Foundation in Princeton is creating a fellowship program to lure top students into the teaching profession and at the same time transform teacher's education throughout America. Thirty-three national Lenore Anneberg Teaching Fellowships with a $30,000 stipend each will be awarded each year. The ultimate goal is to improve the quality of teachers in America. What a great contribution this will make to the future of this great country.
New York Times, December 20, 2007, p. A20
 
EVALUATING CHARITIES SHAKES PHILANTHROPIC WORLD
Two 26 year old hedge-fund millionaires, Holden Karnofsky and El Hassenfield, are stirring up the world of philanthropy with their creation, Give Well - which is funded by a charity they founded with their own money, Clear Fund. Give Well studies charities in particular fields and ranks them on their effectiveness. They have been criticized by similar groups such as Charity Navigator as well as some charities, but you must admire the fact that these two young men have quit their lucrative hedge-fund careers for much smaller salaries with a simple goal to help charities to become more effective in the use of their funds.
New York Times, December 20, 2007, p. A18
 
PHILANTHROPY CONSULTANTS GAUGE CHARITIES EFFECTIVENESS
Other groups like Give Well (www.givewell.net) are also measuring charitable programs as to their effectiveness in their actual work. These philanthropic consultants include the following: Center for High Impact Philanthropy (www.impact.upenn.edu); The Center for What Works (www.whatworks.org); Community Foundations (www.communityfoundations.net); Evidence Based Programs (www.evidencebasedprograms.org). These philanthropy consultants advise donors to first ask non-profits for their goals and then to see how they monitor the results of their work in the short term - monthly or quarterly and over a period of years. Good ideas!
Wall Street Journal, December 20, 2007, p. D1
 
THE MAGNA CARTER WILL STAY IN THE U.S.
Thanks to the purchase of the Magna Carter copy from the Perot Foundation for $21.3 million by David Rubenstein (co-founder of the Carlyle Group) and the gifting of it back to the National Archives where it has been since 1984, the MAGNA CARTA copy will stay in the U.S.  When the Perot Foundation (created by the Texas founder of EDS) put it on the market via auction at Sotheby's it was feared that someone outside the U.S. would purchase it. This was thwarted by the philanthropic purchase of it by Mr. Rubenstein who deserves thanks from all of us.
Wall Street Journal, December 20, 2007, p. C3
 
CHRISTMAS CAROLING FOR CHARITY
Since 1911, St. Louis has had the biggest group of carolers at Christmas in America singing their carols for charity. In 2006, 817 groups made 5,000 appearances and collected $50,000 which was distributed to 56 St. Louis area children's agencies. In 2007 they intend to raise even more money. This is a wonderful idea you might want to try in your town next year. For more information visit www.stlchristmascarols.org.
USA Today, December 17, 2007, p. 2D
 
STRATEGIC VOLUNTEERING BECOMES CAREER TRACK
At-home mothers are being encouraged to turn their experience as volunteers into career paths to paid jobs. A book by Vivian Rabin and Carol Cohen on at home moms returning to work is encouraging this. Junior Leagues International is also backing this new career approach through leadership-training programs which are up by 20% in attendance over the last three years.
The Wall Street Journal, December 20, 2007, p. D1