The Philanthropic Trends Digest

 
A publication of Lawson Associates, Inc.

January 15, 2008


"The most memorable things in life are not things.  They are the lives you've touched and the people who have touched your life."

Sheree Parris Nudd


Dear Friend,

Foundations, which give over $36 billion (2005) to non-profits throughout the United States, have for the past several decades tended to give their grants to programs and not operating support. Denise Caruso, in a recent New York Times article (January 6, 2008, p. 4 of the Business Section) called for foundations to take a new look at the long term survival of non-profits that need operational funds in order to carry out the very programs that foundations support. This is a refreshing look at the financial reality facing non-profits. It also reinforces the truth that the non-profits usually know more about carrying out the services that the foundation world is requesting than the foundations themselves. This is a welcome look at a current foundation trend in the philanthropic world that needs a new approach.
 
Also, in the New York Times on January 6th was a picture and article (p20) on one of our Lawson Associates, Dr. Claire Gaudiani. When Claire was 9, her family introduced her to the New York Times Neediest Cases Fund. The 100 neediest cases each year taught her "No matter what I do in life, I need to reach out (to others)". She taught her two children this lesson and encouraged them to meet and help people similar to one they read about in the Neediest Cases. Having served 13 years as the President of Connecticut College, she is currently a professor at the George Heyman Jr. Center for Philanthropy and Fundraising at New York University. We are proud at Lawson Associates to have her as one of our Associates, where she is serving as counsel to Susan G. Komen for the Cure.
 
Sincerely,
Douglas M. Lawson, Ph.D.

_____________________________________


Did you know?

 
NEW YORKERS TWICE AS GENEROUS

The Boston College Center for Philanthropy recently reported that New Yorkers give 7 percent of their income to charities each year. This is twice the national average of 3.6 percent. For all New York haters, this is a 2008 philanthropic challenge to get your city or town to beat the New York challenge.
New York Times, December 24-31, 2007, p. 72
 
ROANOKE, VIRGINIA CHALLENGES THE MUSEUM WORLD
The new $66 million Art Museum of Western Virginia is Roanoke's gamble to put this Virginia city on American's cultural map. The city, located halfway between Washington D.C. and Charlotte, NC hopes the museum (designed by Randall Stout, a protégé of Frank Gehry) will draw people for repeated visits. We at Lawson Associates are proud that Roanoke is the home of one of our Senior Associates, Ed Ridout.
New York Times, December 29, 2007, p. A10
 
DUKE EXPANDS ITS WRONGFUL CONVICTIONS AND INNOCENCE PROJECT
With a $1.25 million grant to the Duke Law School, a center devoted to promoting justice in the criminal justice system and to training lawyers to fight against wrongful convictions has been established at Duke University. This, in part at least, is a positive reaction to the problems in the North Carolina legal system raised by the Duke Lacrosse case. Incorporated in this five year grant is an expansion of the Duke wrongful conviction and innocence project. As a proud graduate of Duke, I am grateful for the University's rising to try to solve this enormous criminal justice problem.
Duke Magazine, November - December, 2007, p. 10
 
HARVARD'S FINANCIAL AID CHANGES PUTS PRESSURE ON OTHERS
Harvard University's new program of giving financial aid to middle and upper-middle income families is causing other colleges and universities to consider the same approach. The trouble is that many of these institutions of higher education do not have the endowment resources to back this up - financially. As a fundraiser, I see only one solution - raise more endowment monies. This is a challenge that our institutions of higher learning can and must meet.
New York Times, December 29, 2007, p. A1
 
HILTON GIVES $2.3 BILLION TO FOUNDATION
Barron Hilton, 80, plans to give the bulk of his fortune to the Conrad N. Hilton Foundation, In a release about his plan, Mr. Hilton noted that his father, Conrad, left 97% of his money to the foundation, "and I am proud to follow my father's example". The remaining 3% will be distributed to his heirs leaving individuals like Paris Hilton not as rich as she had hoped. It does, however, give new hope to developing countries, services for the blind, housing for the mentally ill homeless, early childhood development and substance-abuse prevention programs.
USA Today, December 27, 2007, p. 3B
 
GEORGIA FREE CLINIC NETWORK A SUCESSFUL MODEL
About 100 free medical clinics are operating in the state of Georgia. They serve the 1.7 million uninsured. Thanks to a new state law that protects volunteer physicians from malpractice claims, the clinics have grown from the first in Hilton Head to almost 100 throughout the state. We at Philanthropic Trends recommend that other states follow Georgia's lead.
USA Today, December 27, 2007, p. 3A
 
TEACHING CHILDREN HOW TO VOTE
Eighteen to twenty-nine year-olds are more prone to vote if they were introduced to voting as a child. How? By having their parents take them to the polls, showing them how it is done and having mini civics lessons at home. According to the Center for Information and Research on Civic Learning and Engagement, voting is a habit that can be learned. Rock the Vote, a non-profit, points out that demystifying the process for kids gives them a powerful motivational tool to vote when they are 18.
US News & World Report, December 31, 2007, p. 60
 
TUTORING KIDS IN PUBLIC SCHOOLS
Tutoring children in private schools is something wealthy parents pay for with no hesitation. But what about the kids in public schools who need the help but no-one can afford to pay for it? The answer, 826 Valencia, founded in 2002 as a non-profit by Dave Eggers in San Francisco, it has grown to 826 National in cities including New York, Los Angeles, Ann Arbor, Seattle, Chicago and Boston. Dealing with children many times learning English as a second language in the public schools they attend, 826 offers free tutoring which makes for success in the children's school experience.
Forbes, January 2, 2008, p. 110
 
SIX MINISTRIES UNDER SCRUTINY BY SENATOR
Senator Charles E. Grassley, the ranking Republican on the Senate Finance Committee has asked six evangelistic ministries to provide information on how they have spent contributor's gifts. Only two (Kenneth Copeland Ministries of Texas and Joyce Meyer ministries of Missouri) have responded. One has asked for more time and three have either not replied or have said they will not cooperate. None of the six ministries are members of the Evangelical Council for Financial Accountability. We will be watching how this plays out.
New York Times, December 24, 2007, p. A14
 
NEW FUND HELPS CHARITIES GROW THROUGH EFFICIENCY
The Edna McConnell Clark Foundation has committed $39 million and raised $49 million more toward its goal of $120 million by June, 2008. "This money is purely for building the capacity of organizations with proven track records". This is all part of an effort to prove that successful non-profits can become self sufficient through the greater efficiency that size can bestow. This push on behalf of large non-profits is welcomed, but lets not forget about the help that smaller non-profits need.
New York Times, December 21, 2007, p. A26
 
THE CORPORATE EMERALD CITY OF PHILANTHROPY
Minneapolis, home to the Five Percent Club, now known as the Keystone Club, is the emerald city of giving by corporate America. Begun in the mid 1970's, the Five Percent Club was founded on the principal that corporate members would set aside 5 percent of their pretax income for philanthropy. Today the Club has 214 members and 134 of them donate at the 5 percent level. The remainder give away 2 percent of their pretax profits. Ask anyone and they will tell you: "Minneapolis - St. Paul is like no place else, a bastian of giving in an age when most companies are cutting back". Kenneth N. Dayton of the Dayton-Hudson Company (now Target) was the founder of the Five Percent Club. May America be blessed with more people like Kenneth Dayton.
New York Times, December 22, 2007, p. B1
 
SECRET SANTA'S LEGACY LIVES ON
Larry Stewart, Kansas City's original Secret Santa who went around at Christmas doling out $100 bills to anyone who looked like they needed it, died earlier this year at age 58. Before he died, he trained some of his friends to carry on the mission. As a result, Secret Santa gave away $75,000 of his own money this year in Kansas City and several other cities. The new Secret Santa has created a website and hopes to recruit other Secret Santas across the U.S. "Larry's dream was for a Secret Santa in every city". Let's all try to make his dream come true. Could you be the first Secret Santa in your city in 2008?
Dallas Morning News, December 22, 2007, p. 8A
 
THE WORLD HAS LOST ITS LADY PHILANTHROPIST
One of New York's most famous philanthropists was lost in 2007. Brooke Aster died at the age of 105. She was the kind of donor to a variety of causes in New York that ever city needs throughout the world. She was a loved person by so many. Perhaps it is not too soon as Pamela Fiori, editor of Town and Country Magazine recommends to honor her memory with perhaps a statue in her name in New York. A great idea we are pleased to endorse.
Town and Country Magazine, December, 2007, p. 218
 
MARKET-DRIVEN VACCINES MOVE FORWARD
In a world where up to one quarter of the deaths of children under age five could be prevented by means of vaccines, drug makers have shown little interest in developing these vaccines. A new idea involving donors such as Bill and Melinda Gates is using a market-driven approach. In short, donors commit to buying yet-to-be developed vaccines in bulk for poor countries, if the drug makers can deliver a product that meets specifications and a price is settled in advance. With this market-driven idea, everyone wins: the drug companies, the donors and the children whose lives are saved. This is truly philanthropy at its best.
Wall Street Journal, December 31, 2007, p. A2
 
PRO-BONO LAWYERS HELP DISTRESSED HOMEOWNERS
In Ohio, the State's Chief Justice is calling on lawyers to help homeowners facing foreclosure free of charge. Lawyers often do pro-bono work for cases involving human rights, immigration or the death penalty. They are now being asked to help troubled homeowners. This is what volunteering is all about. We congratulate Chief Justice, Thomas Mayer, and the Ohio lawyers who are involved.
Wall Street Journal, January 2, 2008, p. B2
 
$30 MILLION DONATED TO BUILD BIG TELESCOPE
Bill Gates ($10 Million) and Charles Simonyi ($20 million) have agreed to give the funds to build a huge telescope (330 inches in diameter) with a three-billion-pixer detector which will be completed in 2014 in Chile. A multi-national team of 22 universities, observatories and other institutions are involved in this scientific project headed by J. Anthony Tyson of the University of California.
New York Times, January 5, 2008, p. A9
 
ONE LAPTOP PER CHILD AND INTEL PART WAYS
The partnership between One Laptop Per Child (which we reported on in a previous issue of Trends) and Intel was abruptly ended in a dispute over the competition Intel is imposing on OLPC's XO computer ($200) with its Classmate PC computer ($350). This all too brief partnership between a non-profit and a for profit chip maker was a shining example of cooperation to help poor children all over the world. We regret it has come to an end.
New York Times, January 5, 2008, p. B3


______________________________________________


Speaking From Experience
A Critical Need We Can All Respond To
 
A variety of economic factors have come together to create a critical shortage of free and discounted food for increasing numbers of people facing hard times.

A December 8, 2007 Washington Post article by Phillip Rucker, page A1, stated that "America's Second Harvest, the country's leading hunger relief charity, is projecting a shortage of 15 million pounds of food this year - that would be enough for over 11.7 million meals."
 
The sharp decline in corporate in-kind contributions and distributions through the U.S. Department of Agriculture's bonus commodity program are the key reasons for the shortage. This decline is due to increased efficiency by grocery chains and increased demand for U.S agricultural products around the world.
 
The resulting shortage comes at a terrible time when economic conditions (including debt and housing problems) are worsening for a greater number of families.
 
We can all help respond to this critical need by taking a few simple steps:
• Clean out your pantry and donate surplus canned and dry goods to a church pantry,
   food bank, or other food service charities in your area. Ask these charities for a list of
   the most commonly needed supplies. You will help feed others in need while cleaning
   fout the clutter. 
• Create a "donation basket" to collect similar goods in your home or office and encourage
   fothers to join you in buying extra goods for those in need while shopping. Everyone can
   participate including your children. 
• Consider volunteering at your chosen food charity or feeding center. Volunteers provide
   much needed manpower while keeping costs down. 
• Last, but not least, make a contribution. Dollars always make a difference and are
   needed now more than ever.  

If you are someone who has already experienced the satisfaction that comes with offering meaningful help in times of crisis - this is another great "Give to Live" opportunity. If you have not yet experienced this joy - it is an even greater opportunity to find out just what giving is all about.
 
Sincerely,
 
Buddy Wolfe
Senior Associate
Lawson Associates, Inc.



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