The Philanthropic Trends Digest

Dear Friend,

Have you heard of "philanthrocapitalism?"
 
Several years ago, Matthew Bishop and Michael Green wrote a book by that title. Many called it a passing fad of the golden era and, in 2009, some said it would not survive. Today, nearly three years later, it is in "robust health" according to Bishop and Green.
 
Some of the philanthrocapitalists in the world today are Bill Gates, Steve Case and Pierre Omidyan. Organizations that have sprung from philanthrocapitalism have been Teach for America and Kiva.
 
One of the biggest world health problems is Malaria. It has been philanthrocapitalists such as Bill Gates that are making it possible to rid the world of Malaria. Please read about the latest Gates gift in this effort as the last trend in this issue.
 
I urge you to get a copy of Philanthrocapitalism and read it from cover to cover. It will be good for your philanthropic soul.
 
Sincerely,
Douglas M. Lawson, Ph.D.

The Chronical of Philanthropy, January 19, 2012, p. 34.

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Did you know?


THE GIVING OF PRESIDENTIAL CANDIDATES
According to their 2010 tax returns, both President Obama and Mitt Romney are tithers. On an income of $1,728,096, Barack Obama gave 14.2% to charity. On an income of $21,646,507, Mitt Romney gave 13.8% to charity. On an income of $3,142,066, Newt Gingrich gave only 2.6% to charity. All three of these candidates are members of religious denominations, one Protestant, one Mormon and one Catholic. Of particular note, they all give above the national average for religious giving in America which has been falling on a percentage basis since 1970.
The New York Times, January 29, 2012, p. SR7.
 
PUTTING YOUR MONEY WHERE YOUR MOUTH IS
The billionaire, Richard Branson, managed more than 200 companies last year and still wrote two books, Reach for the Skies and Screw Business As Usual. The second book highlights dozens of business people saving the planet and many times saving money. Branson, the founder of Virgin Group, practices what he preaches. He has delivered medical supplies to disaster victims, helped AIDs patients and homeless teens and young inmates. The Branson Centre of Entrepreneurship in South Africa helps poor students develop business skills. Thank you Richard for being a truly great philanthropist while being at the same time, a successful businessman. You truly put your money where your mouth is.
USA Today, January 23, 2012, p. 5B.
 
MAKING DEALS FOR STUDENT HOUSING
With budgets tight, public universities are making deals with private developers to build and run student housing . Traditionally, universities have gone the philanthropic route to build student dorms. An example of this new trend is The Heights, a $211 million dormitory complex of Montclair State University in New Jersey. These new rooms for students are costing universities less, but the cost to students has increased. At The Heights, a room costs a student $1,000 more per semester than a room at Montclair State's other dorms. Private colleges are not going this route as much because their smaller size is less attractive to developers.
The New York Times, January 25, 2012, p. B1.
 
SEAPORT MUSEUM SAILS AGAIN
On January 26th in New York City, the South Street Seaport Museum reopened after nearly a year of being closed. It was able to reopen primarily because of a $2 million grant from the Lower Manhattan Development Corporation. Of probably more importance was its being annexed by the Museum of the City. The new arrangement is for a trial period of 18 months. We truly hope it works out and becomes a model for other small museums across America who could merge with other museums rather than go out of business.
The New York Times, January 26, 2012, p. C1.
 
CHARITY FOR BRIDES AND GROOMS
In lieu of a gift, many brides and grooms today are requesting that their friends and family members make gifts to charities of their choice. And many are responding positively with gifts of goats to Mali through Heifer International or gifts to underdeveloped countries through such charities as Oxfam America. Other brides and grooms are having parties to feed the homeless rather than bachelor parties with fun, food and nonsense. One reason some believe this is happening is because those getting married today are older and don't need "stuff" like younger brides and grooms did. There is some opposition, however, coming from groups like Emily Post heirs who warn against turning a wedding into a charity fundraiser. What do you think?
The Wall Street Journal, January 28-29, 2012, p.1.
 
OBAMA PLANS TO CURB COLLEGE COSTS
On January 27th at the University of Michigan, President Obama "put colleges on notice" that unless they reigned in costs such as tuition, he was going to cut off federal funding. Since the President has no power to do this without congressional approval, the chances of this taking place are very slim. The New York Times reports that among Democrats as well as Republicans, this Obama plan is getting mixed reviews. Students and parents love to hear what the President is saying. But legislators are questioning how his goal can be reached without raising taxes which is a toxic subject in this election year. One of the most caustic criticisms of the President's plan was given by Representative Virginia Foxx, a Republican from North Carolina: "Tuition is too high at most schools, but it isn't the job of the federal government to punish those schools. It's very arbitrary, and the President sounds like a dictator."
The New York Times, January 28, 2012, p. A10.
The Wall Street Journal, January 28-29, 2012, p. A3.
 
BOB DYLAN'S NEW ALBUM BENEFITS AMNESTY INTERNATIONAL
On January 24th, Bob Dylan released a 72-track four-CD box set titled Chimes of Freedom: The Songs of Bob Dylan Honoring 50 Years of Amnesty International. This benefit collection honors both Dylan's 50th anniversary of his self-titled debut in 1962 and the 50th anniversary of the founding of Amnesty International which was the same year. This is a true philanthropic gesture by one of America's great singers for a charity that deserves the support of all of us.
USA Today, January 23, 2012, p. D1.
 
WHAT YOU CAN DO ABOUT IRA CHARITABLE DONATIONS
The tax provision that allowed persons 70 1/2 and older to contribute up to $100,000 of IRA assets directly to a 501(c)(3) charity expired at the end of 2011. It will be up to Congress and the President to reinstate this. What should a donor who would like to make a 2012 contribution from his or her IRA do? The best advice an IRA expert, Natalie Choate, has is to go ahead and make the 2012 contribution from your IRA. Assuming Congress makes a retroactive fix, the gift will count as a qualified donation of IRA proceeds. "Ideally, Congress will bless the gift as they in did in 2006, 2009 and 2010. The worst that happens is that you'll have taxable IRA payout and a deductible charitable gift. These may cancel each other."
The Wall Street Journal, January 21-22, 2012, p. B9.
 
THE BENEFIT CORPORATION: AMERICA'S NEWEST COMPANY
A new and untested corporate charter is now available in a half dozen states. It allows a company's governing board to consider social or environment goals ahead of profits. The legal apparatus is intended to shield the board from investor lawsuits. Hundreds of companies are planning to take advantage of this new law including firms like Ben & Jerry's Ice Cream. California opened up the option on January 1 and New York will do so on February 10. The benefit corporation isn't tax exempt and it is not a nonprofit. It is one of the new structures alongside other social entrepreneurship that have been started in recent years.
The Wall Street Journal, January 19, 2012, p. B1.
 
BLACKBAUD OFFERS TO BUY CONVIO
Blackbaud, which supplies services and software to nonprofits to help them manage their relationships with donors, has made a $275 million offer to buy a competitor, Convio. Combined, the two companies would have roughly 10% of the market for online fundraising. Nonprofits that use these services fear that such a new combined company will drive up costs. Many nonprofits are asking the federal government to give close scrutiny to the proposal. I agree.
The New York Times, January 18, 2012, p. B2.
 
FIVE FUNDRAISING QUESTIONS FOR 2012
In a recent issue of The Chronicle of Philanthropy, five fundraising questions were asked for 2012. First, will fundraising outperform the economy? Especially is this important since some are predicting that donations will not recover to their 2008 level until 2016. Second, can the social media raise big dollars? Third, can a single group like The University of Southern California raise $6 billion? This is the most ambitious campaign in history. Fourth, will donors get over scandals? The loss of trust produced by scandals is threatening large campaigns. And, fifth, what new ideas from the 2012 campaign trail might political campaigns offer to nonprofits such as the use of mobile technology and social media? These are five good questions we should all be asking as 2012 begins in earnest.
The Chronical of Philanthropy, January 19, 2012, p.8.
 
$2.5 MILLION GIVEN TO THEATER
In a time when nonprofit theaters all over America are hurting financially, the Pershing Square Foundation on January 26th announced that it was donating $25 million to the Signature Theater located in New York City. Much of it will be used to keep ticket prices low for the next 20 years. James Houghton, Signature's founding artistic director said, "This is a game changer for us, something hugely important to our long-term sustainability." Signature is opening a new theater building which will occupy an entire New York City block and it will be called the Pershing Square Signature Center. Congratulations to all involved in this philanthropic effort!
The New York Times, January 27, 2012, p. C2.
 
BILL GATES DONATES $750 MILLION
On January 26th at the World Economic Forum in Davos, Switzerland, Bill Gates announced he was donating $750 million to The Global Fund to assist in the Fund's Fight against AIDs, Tuberculosis and Malaria in developing countries around the world. At the Forum, Mr. Gates said: tough economic times were "no excuse for cutting aid to the world's poorest." We agree. Thank you again Bill and Melinda Gates.
The New York Times, January 27, 2012, p. A4.


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