93 posts categorized "Economic Development"

[Review] 'The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class — and What We Can Do About It'

August 10, 2017

In The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class — and What We Can Do About It (Basic Books: 2017), urban studies theorist Richard Florida offers a mea culpa of sort for the back-to-the-city movement he has long championed. In books such as The Rise of the Creative Class, and How It's Transforming Work, Leisure and Everyday Life (Basic Books, 2002) and Cities and the Creative Class (Routledge, 2005), Florida argued that, if cities hoped to thrive in a competitive global economy, they needed to attract and retain talent — "[t]he knowledge workers, techies, and artists and other cultural creatives who [make] up the creative class.:

Book_the_new_urban_crisis (002)If nothing else, Florida's timing was impeccable. By 2000, the ranks of the creative class in the United States had grown to 40 million — a third of the U.S. workforce — and many of its members had left the suburban or rural communities of their childhood and headed to cities such as New York, Boston, Washington, D.C., San Francisco, Los Angeles, and Seattle, where they moved into neighborhoods that had been written off by the professional class and city officials. That story was repeated around the globe, as knowledge workers and creatives flocked to already vibrant cities such as London, Paris, and Tokyo; booming Asian metropolises such as Hong Kong, Shanghai, and Seoul; and sprawling, emerging mega-cities such as Lagos, Mexico City, and Mumbai.

Indeed, today — in a stunning illustration of the power of urban centers to transform societies through what Florida dubs the "3Ts of economic development" (technology, talent, and tolerance) — more than half the population of the globe lives in cities, and the United Nations estimates that by 2050 upwards of 70 percent of the global population will live in urban areas. Little wonder, then, that in recent decades urbanists have proclaimed "the triumph of the city" (the title of an excellent book by Harvard economist Edward Glaeser), or that the future of humanity is urban.

And yet this newfound appreciation for the richness, convenience, and stimulation provided by city living has not been without costs, as gentrification, rising rents, and real estate speculation have squeezed blue-collar and service workers out of neighborhoods and livelihoods, contributed to the re-segregation of public schools, and driven huge increases in wealth and income inequality. It is an economic failure that we should have seen but didn't, and from the Brexit vote in England, to the election of Donald Trump, to the growing popularity of far-right populist parties in Europe, we are living with the consequences of that failure. The New Urban Crisis is Florida's attempt to diagnose where things went wrong — and offer a prescription for how we can recover an urbanism that works for all people, not just elites and the creative class.

If that's too conceptual, allow me an anecdote by way of illustration: As I was finishing Florida's book in Washington Square Park in Manhattan earlier this summer, surrounded on all sides by buildings belonging to New York University (where Florida is a fellow), I could see, firsthand, his 3Ts at work. Across the way, diverse crowds of college students walked to their next class or appointment while sending photos to friends on the latest app; on the corner, a well-heeled couple waited impatiently for their Uber driver; and, a group of foreign tourists were listening to their guide about the history of the square. To the "urban optimist," it was a perfect illustration of "the stunning revival of cities and the power of urbanization to improve the human condition," while for the pessimist, it might suggest just how profoundly "modern cities [are] being carved into gilded and virtually gated areas for conspicuous consumption by the super-rich...."

And that's not the half of it. The juxtaposition of boundless opportunity and desperate poverty found in so many cities has led to mounting alienation and resentment. Indeed, Florida, who counted himself among the optimists "not too long ago," argues that to truly understand this new urban crisis (as opposed to the mid-twentieth-century urban crisis of deindustrialization and white flight), we need to recognize and come to grips with the fact that cities are both "the great engines of innovation, the models of economic and social progress," and "zones of gaping inequality and class division."

Florida identifies five key factors that have combined to create this crisis: 1) the growing economic gap between so-called superstar cities — where a disproportionate share of high-value industries, high-tech startups, and top talent are concentrated — and struggling industrial cities, or what he calls "winner-take-call urbanism"; 2) the steep rise in urban housing costs, which has resulted in the displacement of countless numbers of blue-collar and service workers, not to mention the poor and disadvantaged; 3) a rapid increase in inequality and segregation driven in part by "sorting" — a phenomenon in which creatives and the well-off congregate in neighborhoods formerly favored by the working middle class, creating a patchwork of relatively small areas of privilege surrounded by large tracts of poverty; 4) the growing crisis in the suburbs, where problems typically associated with urban areas — poverty, economic insecurity, crime, and segregation — are growing and becoming entrenched; and 5) the urbanization of the developing world, often without the improvements in standards of living that accompanied an earlier wave of urbanization in the U.S., Europe, Japan, and China.

At the core of these challenges, writes Florida, is an economic divide that shapes our built environment and determines where we live. "Simply put," he adds, "the rich live where they choose, and the poor where they can." This reality creates a host of related problems with both short- and long-term consequences (e.g., "people who live in far-flung suburbs and endure long commutes have higher rates of obesity, diabetes, stress, insomnia, and hypertension and are more likely to commit suicide or die in car crashes").

Florida illustrates each of these challenges using the latest demographic and economic data, much of it pulled from the Martin Prosperity Institute at the University of Toronto, which he leads. In fact, the book is filled with interesting graphs and charts, including one showing the number of houses one could buy in various U.S. cities for the price of a single apartment in Manhattan's chi-chi SoHo neighborhood (Memphis, Tennessee, tops the list with 38!). He also highlights his institute's New Urban Crisis Index, which reveals high levels of combined economic segregation, wage inequality, income inequality, and housing unaffordability not only in superstar cities such as Los Angeles, New York, and San Francisco, but in Chicago, Miami, and Memphis. (While interesting, many of the maps and charts could have benefited from better graphic design, and most of the data cited are for U.S. cities — a weakness in a book that purports to be about global trends.)

But what most readers will be looking for is a solution (or solutions) to this complex crisis of inequality. On that score, the glass is half full (or empty, depending on one's perspective). Florida points to the tension between the kind of "urban density and clustering that innovation and economic progress require" — and a "New Urban Luddism" — as the greatest impediment to the kind of equitable development and opportunity needed to overcome rising inequality. He has little sympathy for these twenty-first-century Luddites, who live in well-off communities and neighborhoods and are quick to say no to projects that may pose inconveniences but whose benefits in terms of the greater public good are indisputable. As he writes at one point, "If we are to...enjoy a widely shared and sustainable prosperity, we must become a more fully and fairly urbanized nation."

With that tension in mind, Florida sets out seven strategies designed to foster a "more productive urbanism for all": 1) make clustering work more efficiently by switching from a property tax to a land value tax; 2) invest in urban infrastructure to support greater density and growth; 3) build more affordable housing; 4) convert low-wage service jobs into living-wage work by raising the minimum wage; 5) address urban and suburban poverty by investing in people and places and providing a universal basic income; 6) shift development policies from nation-building to city-building and mobilize behind a global effort to build more resilient, prosperous cities; and 7) empower cities and communities by devolving political power from states and national governments to cities themselves.

As wide-ranging as these solutions are, the recommendations at the core of Florida’s books are fairly straightforward: governments and the private sector need to make investments in new and upgraded infrastructure and adopt tax and land-use policies that encourage increased density. Around the world, he writes, "strategic investments in basic infrastructure can help connect [poor people] to jobs; leverage their talent and productive capabilities and enable them to become more fully engaged; and, ultimately, turn the vicious cycle of urban isolation and poverty into a virtuous cycle of urban progress." In an American context, that means moving beyond the longstanding practice of encouraging suburban sprawl and expansion into rural areas and, instead, putting a new focus on the country’s neglected urban cores — a re-urbanization movement, if you will — that creates jobs and opportunities for all Americans.

While The New Urban Crisis may not be the twenty-first-century equivalent of Jane Jacobs' The Death and Life of Great American Cities or Lewis Mumford's The City in History, it is an interesting and highly readable update of Florida's creative class concept and an excellent introduction, for those not familiar with his earlier work, to how a new generation of knowledge workers and creative class types are shaping our economy, our cities, and, for better or worse, our future. The challenges posed by this development are profound, both in the U.S. and around the world, and The New Urban Crisis is a welcome contribution to the conversation around the best ways to address those challenges.

Michael Weston-Murphy is a writer and consultant based in New York City. For more great reviews, visit the Off the Shelf section in PND.

Abdul Latif Jameel: Empowering Communities to Help Themselves

June 27, 2017

At the annual summit of the Family Business Council-Gulf (FBCG) in Dubai, Foundation Center's Lisa Philp led a plenary session on philanthropy in action in Gulf Cooperation Council (GCC) countries. She was joined by Hassan Jameel, deputy president and vice chair, Abdul Latif Jameel Domestic Operations, and Caroline Seow, director of sustainability, Family Business Network International. Philp is working with FBCG and FBN International to shine a light on thoughtful and sustainable philanthropy in the GCC. This post — part of a year-long series here on PhilanTopic that addresses major themes related to the center’s work — is an adaptation of a case study she wrote on lessons learned from Community Jameel.

Jameel_philpAbdul Latif Jameel is an international diversified business with operations in seven major industries — transportation, engineering and manufacturing, financial services, consumer products, land and real estate, advertising and media, and energy and environmental services. Founded in 1945 as a small trading business that later evolved into a Toyota distributorship in Jeddah, Saudi Arabia, the company has achieved this scale and market success in just over seven decades.

The company's entrepreneurial founder, the late Abdul Latif Jameel, saw that better personal transportation could empower businesses and individuals and, in turn, advance the economic development of his nation. With that vision to guide him, he established an extensive operations infrastructure and over time built the largest vehicle distribution network in Saudi Arabia. Along the way, the company developed comprehensive expertise across the Middle East, North Africa, and Turkey (or "MENAT"), the region in which it operates, fashioning a reputation for building the "infrastructure of life." Today, Abdul Latif Jameel has a presence in more than 30 countries and employs 17,000 people from over 40 nationalities.

Jameel was a visionary and dynamic entrepreneur who dedicated his family and company to meeting the needs of his fellow Saudis. In 2003, Mohammed Abdul Latif Jameel, who had been named chair and CEO of the company a decade earlier, created Abdul Latif Jameel Community Services, or "Community Jameel," as it is known today. Community Jameel has evolved into a sustainable social enterprise organization focused on six priority areas: job creation, global poverty alleviation, food and water security, arts and culture, education and training, and health and social. From its headquarters in Jeddah, the organization coordinates a rage of programs focused on the development of individuals and communities in the MENAT region and beyond.

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The Brave New World of Open Source

May 09, 2017

The following post is part of a year-long series here on PhilanTopic that addresses major themes related to the center’s work: the use of data to understand and address important issues and challenges; the benefits of foundation transparency for donors, nonprofits/NGOs, and the broader public; the emergence of private philanthropy globally; the role of storytelling in conveying the critical work of philanthropy; and what it means, and looks like, to be an effective, high-functioning foundation, nonprofit, or changemaker in the twenty-first century. As always, we welcome your thoughts and feedback.

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OpensourceAllow me to introduce myself. My name is Dave Hollander, and I'm a data scientist here at Foundation Center. The role of a data scientist is to use techniques from statistics and computer science to make sense of and draw insights from large amounts of data. I work on the Application Development team, which engineers the code in Foundation Center products you use, including Foundation Maps and the new search tool that was launched as part of the redesign of foundationcenter.org.

Like nearly every software development team, the members of the center's Application Development team share code among ourselves as we work on new projects. This allows us to work on smaller parts of a larger machine while simultaneously ensuring that all the parts fit together. The individual parts are assembled during the development phase and eventually comprise the code base that powers the final product. When finished, that code lives internally on our servers and in our code repositories, which, in order to protect the intellectual property contained within, are not visible to the outside world. The downside to keeping our code private is that it does not allow for talented programmers outside Foundation Center to review the code, suggest improvements, and/or add their own entirely new twists to it.

We plan to change that this year.

Open-source software (OSS) is a term for any piece of code that is entirely visible and freely available to the public. Anyone can pull open-source code into their computer and either use it for a personal project or change it and "contribute" those changes back to the original project. Open source is not strictly related to code, however. Wikipedia, which allows anyone to create an account for free and edit articles and entries, is also an example of an open-source project. To ensure a high-level of quality throughout, submissions to Wikipedia are evaluated by volunteer editors, and while a bad entry may sneak through on occasion, the Wikipedia community eventually will find it, review it, and amend it.

Open-source code projects work in much the same way as Wikipedia, but rather than editing text, users edit code and then submit their changes back to the project. The process can be a challenge to monitor, but today there are tools available that make it relatively easy to manage the edits of multiple users and prevent source-code conflicts. The most popular is GitHub, a free service that serves as a repository for code projects and allows any user to make copies of any other project hosted on the platform. Once a project on GitHub is copied, the user can make changes to the original code, or use the code for his or her own purposes.

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[Review] 'Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations'

January 30, 2017

One morning at the gym, I looked up at the TV and saw that New York Times columnist Thomas Friedman was promoting his latest book and opining about the state of the world following the U.S. elections. It took me a minute, between the banter and the buzzwords, but I eventually understood Friedman's reason for writing the book: like most of us, he thinks the world is moving too fast. His recommended remedy? We all need to slow down and reflect on the causes of this acceleration so that we can more confidently (and optimistically) chart our way through an increasingly complex world.

Bookcover_Thank You For Being LateAs he explains in Thank You For Being Late: An Optimist's Guide to Thriving in the Age of Accelerations, Friedman, a three-time Pulitzer Prize-winning journalist, writes books (The Lexus and the Olive Tree; The World Is Flat: A Brief History of the Twenty-First Century; Hot, Flat, and Crowded) "because I love…taking a complex subject and trying to break it down so…I...understand it and…readers better understand it." Reading his work, one can see the interplay between the best sellers he writes every few years and his twice-a-week musings on the op-ed page of the Times. In Thank You For Being Late, for example, he sets the table with one of his go-to subjects: Moore's law, named after Intel-co-founder Gordon Moore, who noted in 1965 that computing power had been doubling every year based on the increasing density of silicon transistors in computer chips — and was likely to continue at a similar rate for at least the next ten years. As anyone who follows tech knows, Moore's famous observation continues to bear out forty years after its predicted expiration date. And the consequences of that astounding increase in computing power serve as a backdrop against which Friedman explores three accelerating forces affecting every aspect of our lives: technology (especially cloud computing, which he calls the"Supernova"), globalization (the "Market"), and climate change ("Mother Nature").

The exponential growth in computing power and the increasing rate of innovation it drives have created, according to Friedman, an orders-of-magnitude change in digital interconnectedness, transforming how we communicate (texting, social media), shop (e-commerce), and even where we sleep (Airbnb). At the same time, he argues, the rate of change, both technological and social, enabled by this connectivity now exceeds our ability to adapt, causing many of our current political, economic, and sectarian challenges. "When fast gets really fast," he writes, "being slower to adapt makes you really slow — and disoriented."

And guess what? The world continues to speed up.

He notes, for instance, that the typical cellphone today provides SMS texting capabilities and mobile access to the Internet to anyone who can afford one, creating a previously unimaginable global exchange of goods and ideas. Residents of small towns in sub-Saharan Africa are just a text or a click away from family members in northern European cities — and everyone in between. "Globalization has always been everything and its opposite — it can be incredibly democratizing and it can concentrate incredible power in giant multinationals," he writes; "it [also] can be incredibly particularizing — the smallest voices can now be heard everywhere — and incredibly homogenizing, with big brands now able to swamp everything everywhere."

On the downside, the forces unleashed by globalization and a digitally networked world are merging with human-driven climate change to create a perfect storm of unintended, and mostly negative, consequences, with the most profound effects being felt in the most vulnerable countries and communities. Sadly, efforts to cope with the massive movement of people triggered by climate change have been woefully inadequate, not least because "when Moore's law and globalization accelerate at their current rates and your country falls behind on education and infrastructure, it falls behind at an accelerating rate as well."

The book is classic Friedman — a smorgasbord of ideas interspersed with conversations with world leaders and parking attendants. In a single chapter he might explore the potential of article intelligence, reflect on the political cataclysms of recent years, and offer policy recommendations based on lessons learned from Mother Nature. Throughout he indulges his seemingly insatiable curiosity and penchant for asking questions that border on the metaphysical. If at times it causes his narrative to feel a bit scattered — jumping from topic to topic with an alacrity that can be fatiguing — most readers won't hold it against him; in fact, it is probably what makes his writing appealing to so many.

I know: Friedman's technique is often criticized for being a form of lesson-by-anecdote that is taken more seriously than it should be. The caricature goes something like this: I was in [insert world city] for two days and took a cab to meet with [insert world leader]. While in the ride over, I spoke to my driver, who shared his view that [insert insightful comment], and all of a sudden I thought to myself: Eureka! this is the answer to [insert complex world crisis].

And it's true, to the extent that any caricature is. But the final chapters of Thank You for Being Late are much more substantive and give us the musings of a grounded, authentic, and, yes, deep thinker — not to mention a badly needed voice of reason in our current politically fraught climate. In the final pages of the book, for example, he visits his childhood home of St. Louis Park, a suburb of Minneapolis, where he grew up in an environment of "inclusion and civic idealism." Once there, he tries to see the community for what it was and is, all the while looking for the source of its still-evident civic spirit — and for lessons that can be replicated in communities across the country. The story of St. Louis Park, he writes, "is the story of how an ethic of pluralism and a healthy community got built one relationship, one breakup, one makeup, one insult, one welcoming neighbor, one classroom at a time." While nostalgia is certainly a factor in this rosy assessment, there's more to his trip down memory lane and explorations of what happens in a community where people take the time to get to know each other and build bonds across their differences — or, as he puts it, who are willing "to belong to a network of intertwined 'little platoons', communities of trust, which [form] the foundation for belonging, for civic idealism, for believing others who [are different] [can] and should belong, too." Yes, in an age of accelerating global interdependence and contact between strangers, "the bridges of understanding that we have to build are longer, the chasms they have to span much deeper." But that is the challenge.

In our ever more complicated world, generalists who wrestle with a broad spectrum of ideas and seek to help us understand often difficult issues and events are in short supply. In the crowded (and increasingly noisy) public square of the twenty-first century, reasonable, thoughtful, and generous are not adjectives applied to many: Thomas Friedman is all three, and Thank You for Being Late offers some of his best work to date.

Michael Weston-Murphy is a writer and consultant based in New York City. For more great reviews, visit the Off the Shelf section in PND.

A Conversation With Steve Case: The 'Third Wave' and the Social Sector

June 23, 2016

Anyone of a certain age remembers when free America Online software — delivered on 3.5" floppy disks and then in CD form — seemed to arrive in the mailbox on an almost-daily basis. Although its genesis was in online gaming, the company soon evolved into an online services company and, by the early 1990s, was one of the leaders of the tech world, innovating and helping to build the infrastructure for the online world we know today. In the words of the company's co-founder and former chair, Steve Case, AOL was part of the "first wave" of innovation driven by the Internet.

By the early 2000s, a "second wave" of Internet-enabled innovation featuring apps and mobile phone technologies had sparked a new communications revolution, with companies such as Apple, Amazon, Google, and Facebook leading the way and birthing a new generation of billionaires. Even as this second wave was cresting, however, a third wave of innovation was forming in its wake. In his new book, The Third Wave: An Entrepreneur's Vision of the Future, Case lays out his vision of an emerging era in which almost every object is connected to the Internet and the network of all networks "stops belonging to Internet companies.…The entrepreneurs of this era are going to challenge the biggest industries in the world, and those that most affect our daily lives. They will reimagine our healthcare system and retool our education system. They will create products and services that make our food safer and our commute to work easier."

PND spoke with Case, who chairs the Case Foundation and, with his wife, Jean, is a signatory of the Giving Pledge, about what these changes mean for the social sector and how nonprofits, large and small, can partner with business and government to solve some of our most pressing challenges.

Headshot_steve_casePhilanthropy News Digest: What you have labeled the "third wave" of Internet-enabled innovation will affect many areas of interest to the social sector, including health and health care, education, and food and agriculture. Do you see this next wave of innovation as a boon for nonprofits and social entre­preneurs?

Steve Case: I think it can be. Obviously, there are different folks focusing on different things in different ways. And there will always be an important role for nonprofits to deal with issues that, frankly, only nonprofits can deal with. But some of the sectors you mentioned — health care and education, food, agriculture — I think there's a role there for entrepreneurs to build companies that can have an impact.

One of the big things I talked about in the book — and which the Case Foundation has been championing for years — is the importance of partnerships. Partnerships between startups and other organizations — whether it's other companies, nonprofits, or government — will become more important in the nonprofit sector generally and will have a significant and, I think, positive impact on some of the sub-sectors you mentioned.

PND: The Case Foundation has always emphasized the importance of working across sectors. How do you think the changes brought about by the third wave of Internet-enabled innovation will affect its own work?

SC: I think we'll continue on the path we've been on. We've been talking about some of the issues around cross-sector collaboration for the nearly twenty years the foundation has been around. In the last few years, we've focused on things like impact investing, inclusive entrepreneurship, leveling the playing field so every entrepreneur who has an idea has a shot, and we'll continue with those efforts and try to use all the levers available to us.

Jean [Case] has spent a lot of time on impact investing. Part of her focus is advocating for policy changes that actually free up and expand more impact investing capital. The kinds of things we're focused on at the foundation are very much in sync with the kinds of things I address in the book.

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Flint’s Crisis Raises Questions — and Cautions — About the Role of Philanthropy

April 08, 2016

Dirty-bottled-waterThe public health crisis in Flint, Michigan, continues to unfold before the eyes of the world. For nearly eighteen months, water drawn from the Flint River was sent without proper treatment into the city's infrastructure, corroding aging pipes and fixtures. Lead leached into the water supply and flowed to local homes, schools, and businesses. The results: a near doubling in the number of children with elevated levels of lead in their blood, a wave of other health concerns throughout the community, severely damaged infrastructure, and despair regarding the city's prospects for economic recovery.

This terrible situation in the Charles Stewart Mott Foundation's hometown has sparked numerous questions, including one that should be of interest to every foundation: What is the role of philanthropy in responding to a community in crisis? At Mott, we've felt the need to act immediately on some issues and with great deliberation on others. We've also been called upon to discuss the role of philanthropy in funding infrastructure projects. It's my hope that our experiences thus far might be helpful to other philanthropies that could face similar challenges in the future.

When the high levels of lead exposure among Flint children were revealed in September of 2015, Mott acted quickly to begin the long process of bringing safe drinking water back to our hometown. In addition to a grant of $100,000 to provide residents with home water filters, we pledged $4 million to help reconnect Flint to the Detroit water system. With an additional $6 million from the state of Michigan and $2 million from the city of Flint, that switch took place on October 16.

Our decision to help pay for the switch was a no-brainer. Since our founding ninety years ago, we've had a deep and unwavering commitment to our home community. We couldn't sit on the sidelines while the children of Flint were being harmed. Our role as a catalyst for the return to safer water speaks to one of philanthropy's most valuable attributes: the ability to respond swiftly when disaster strikes to help people meet their basic needs.

But after taking swift action, the question then becomes "What next?"

As important as it was to act quickly to reconnect Flint to the Detroit water system, we also realized that it sometimes makes sense for philanthropies to fight the impulse to make major commitments while a disaster is still unfolding. Two aspects of Flint's water crisis show us why.

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5 Questions for…Ward S. Caswell, President, Beveridge Family Foundation

November 05, 2015

Foundation Center Vice President for Development Nancy Albilal spoke with Ward S. Caswell, president of the Beveridge Family Foundation in West Newbury, Massachusetts, about the foundation’s grantmaking to nonprofits working to create opportunity and a more vibrant economy and quality of life in Hampden and Hampshire counties. Nancy’s Q&A with Caswell is part of the Funder's Forum series, which helps foundation leaders exchange ideas and connect with their peers, and is featured, along with other Forum interviews, in the center’s monthly E-Updates for Grantmakers newsletter.

Headshot_ward_caswellNancy Albilal: How does the Beveridge Family Foundation's grantmaking honor the legacy of Frank Stanley Beveridge while continuing to evolve to meet the needs of the communities you serve?

Ward Slocum Caswell: When the foundation was started back in the 1940s, Frank Stanley Beveridge was doing quite a bit in the community to give back in those areas he felt had helped him become a success. It's important to understand that Mr. Beveridge was the adopted son of farmers up in Canada. He understood the value of hard work, but also what I like to call putting your fingers in the dirt, understanding man's connection with nature and the environment. So, he established a park in Westfield, Massachusetts, that today is called Stanley Park. In the early days, it was small and used quite a bit for Stanley Home Products company events. But it grew over the years and now is the largest non-government-owned, free-to-the-public park east of the Mississippi. It's very popular with people in Westfield and the Pioneer Valley and includes a large playground, beautiful gardens, lots of rolling paths that wind down to ponds and woods and across fields, and it's a hundred percent handicapped accessible.

So the Beveridge Family Foundation exists primarily to fund the needs of the park, which have evolved. Following Mr. Beveridge’s death in 1956, the foundation benefited from growth in its primary investment, the stock of Stanley Home Products. When we exited the stock in the 1980s, we invested in a diversified portfolio of stocks and bonds and, well, it was the 1980s, and our corpus continued to grow into the late nineties. Of course, as anyone who reads the business news knows, the markets since the late nineties haven't been that productive. At the same time, costs have risen for lots of things, so we took a pause in 2009 and asked ourselves, "What would happen if the needs of the park eventually exceeded the ability of the foundation to fund it?" As a result of that process, we did two things. First, we started to fund raise within the park, and then we began to require public support for anything over and above how the park looked in 2009, including endowing any new structures or additions. And I am pleased to say that we are finishing up a new pavilion to replace one built sixty years ago that had been ruined by beetles and had to be removed. Not only is the new pavilion much nicer than the old one, its construction was also made possible through the support of the community, which is very different from the way we used to do things. It used to be that if the park needed something, we wrote a check. But the new approach allows us to continue growing the legacy of the foundation, which supports a host of nonprofits, primarily in Hampden and Hampshire counties in western Massachusetts. At this point, we give about $2 million a year, a third of which supports Stanley Park, with the rest going to a range of environmental, social, and other organizations, and all of it in keeping with the interest Frank Stanley Beveridge had in promoting culture, education, and the general enjoyment of the community.

NA: How has the foundation's investment in environmental issues developed over time? And how do you position your work on this issue given your primarily local focus?

WSC: You know, sometimes when people invest in the environment, it's to say "no" to things — to developers, to pollution, et cetera. And saying no to things can create difficulties for people who are trying to earn a living or looking for an affordable place to live. We believe there needs to be an intelligent balance between conservation and the needs of local communities. The park is a great example. It's a large park with very few buildings. A lot of woods, a lot of open fields, and a lot of well-tended gardens, as well as a few facilities that allow people to get out of the rain, to have a wedding or family reunion or hold a concert or any of the hundreds of events we host there every year. When we fund environmental issues in western Massachusetts, we tend to spread that funding across a variety of different activities. Twenty years ago, it would have been for the Connecticut River watershed group that was working to clean up the river after the removal of a lot of paper pulp factories. Thirty years ago, the river I fished as a kid was a mess. You'd pull out your fishing line and it would be covered with strings of paper pulp, and the only fish you could catch were carp and other kinds of junk fish that dug up the bottom. Today the Connecticut River in Massachusetts is beautiful. It's clean. It's clear. There are all kinds of different fish coming back up the river. And for the first time in many years, people are using it. They hold dragon boat races to raise funds for breast cancer research and crew practices and regattas for people of all incomes and from every socioeconomic background. It's a vibrant resource again. And that happened in part because of the work that was funded twenty and thirty years ago, the shutting down of large polluters and the removal of some of the heavy metals and toxins, the replanting of littoral grasses, and so on.

Today the funding we do in the environmental area is a little different. We're strong supporters of the Center for EcoTechnology, for example, and their work in helping make Massachusetts the most energy-efficient state in the nation. We've achieved that not by having crazy restrictions on emissions from cars, which you see in California and which means auto manufacturers have to make special versions of their cars just for California. What the center does instead is to go door-to-door and help people understand the ways in which their homes and businesses are energy inefficient and what they can do with tax rebates and other kinds of programs and incentives to remedy those inefficiencies. The great thing about it is that it actually saves the homeowner or business owner money by lowering their energy bills while making Massachusetts a much more energy-efficient state and reducing our dependence on carbon fuels. It's a win-win.

Another thing we do is fund trusts that help people put agricultural or low-density deed restrictions on their properties as a way to conserve open space in Massachusetts where wildlife can continue to flourish and people can enjoy nature. Often, these trusts also benefit the owners of the property by enabling them to reduce their tax bills and, occasionally, to receive actual funds from a nonprofit organization that is willing to pay the property owner for effectively reducing the economic utility of their properties while preserving the property in perpetuity in a way that benefits the public and is sustainable.

That said, we recognize that one of the greatest needs in Massachusetts is affordable housing. So we do quite a bit of work in trying to help people find effective and efficient ways to build, maintain, rent, and sell affordable housing. We're strong proponents of an east-west high-speed rail line to connect the economic engine that is Boston with the tremendous opportunities in the western part of the state. If you look at the economic cycles that seem to run on a seven- to ten-year basis — think of a sine wave — Boston is interesting in that it is always flattened on the top. Because housing costs are so high in and around Boston, making it increasingly difficult to hire and house employees in up cycles, the city's economy tends to flatten out before the rest of the nation's economy. When the economy is booming, people find it increasingly difficult to live and work within reasonable commuting distance of the city. Meanwhile, Springfield, Holyoke, and the entire Pioneer Valley is full of intelligent, hardworking, experienced people who would love to be earning a higher wage but are reluctant to move from the Pioneer Valley because of its affordability and the quality of life there. Unfortunately, the Mass Pike, along with Logan Airport, is owned by a private corporation that really seems to have no interest in expanding those key transport hubs for the benefit of the state. CFX, which owns the freight lines that run east-west, also is reluctant to give up its rights, which are crucial if we ever hope to connect the two parts of Massachusetts for the long-term economic health of the state and its residents. So we try to work with different groups to understand those problems and find ways to help more people understand the situation and what can be done to address it.

Last but not least, we're involved in a group called City2City in the Pioneer Valley that was incubated by the Federal Reserve and studies what the Fed calls "resurgent" cities. The Fed looked at seventy-five post-industrial cities across the U.S. and found that twenty-five or so of them had actually come back nicely, while the rest had not. Springfield was one of the ones that has not. And so each year, we visit other cities to try to learn what they have done to revitalize themselves and bring those lessons back to Springfield. Next week, we're going to Chattanooga!

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Loose Ties + Strong Trust = Innovation in Los Angeles

October 17, 2015

In 2008, Lisa Watson was the executive director of the Downtown Women's Center (DWC), an organization dedicated to meeting the needs of women on Los Angeles' Skid Row hoping to overcome poverty and homelessness. That year, Lisa received a Stanton Fellowship to investigate the viability of a co-located social enterprise retail store that would offer workforce training to homeless women and generate revenues for the center. Revenues would be used to subsidize housing and supportive services in the pricey Los Angeles real estate market.

For the past ten years the Durfee Foundation has awarded a select number of Stanton Fellowships to social change leaders in Los Angeles with the aim of fostering innovative solutions to some of the city's most intractable problems. Lisa's project became a reality in 2011 with the opening of MADE by DWC, a gift boutique and café that offers organic coffee and food along with one-of-a-kind vintage and contemporary women's clothing, accessories, household accents, and their signature handMADE product line. One hundred percent of the proceeds support the residents of the Downtown Women's Center, providing the kind of earned revenue that is a vital component of long-term sustainability for most nonprofits.

Cross-Disciplinary Connections

Prior to the fellowship, Lisa had met a handful of other Stanton alumni, all in the housing/homelessness space. Over the course of her fellowship, however, she expanded her connections to include Stanton fellows with expertise in urban planning, health, education, the environment, and economic development, as well as contacts in the L.A. Mayor's Office. The interactions with other fellows significantly affected her project's design as well as its resulting success. "By bringing together smart people from various disciplines in Los Angeles," she notes, "problems can be viewed through various prisms rather than through a telescope. Solutions and strategies are developed by looking more richly at the problem from various perspectives and disciplines."

The Stanton Fellowship provides funds over two years for each fellow to think deeply about a specific challenge related to their work and to tease out solutions that will improve life in Los Angeles. The Durfee Foundation deliberately encourages connecting and knowledge sharing among fellows as a way to foster the cross-fertilization of ideas that might lead to new approaches. Stanton Fellows are intentionally selected to represent a wide-ranging spectrum of issues and sectors, with fellows coming from government and social enterprise as well as nonprofits. Key elements of the program include opening and concluding fellowship retreats that overlap with the next/prior cohort of fellows; quarterly get-togethers hosted by a fellow who provides a tour of the issue they are tackling and includes time for fellows to update the group on their projects; and foundation staff matching fellows with program alumni mentors. In addition, every other year the foundation hosts a retreat to which all alumni of the program as well as current fellows are invited.

Enhanced Peripheral Vision

In order to better understand the network dimension of the program, the Durfee Foundation asked Network Impact to assess the role that ties among Stanton Fellows play in contributing to the program's goals. To that end, in the fall of 2014 we surveyed current fellows and alumni, and supplemented that work with focus-group interviews and Social Network analysis (SNA) to assess the nature of the connections among fellows over time. What we found has implications for funders who are supporting innovation in the social sector, particularly investors in fellowship or leadership development programs who are curious about the wider impact of these initiatives.

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Harnessing the Power of Philanthropy to Build Just, Equitable, and Resilient American Cities — Starting With the 'Big Easy'

October 16, 2015

Katrina10_blueNearly two months ago, all eyes were on New Orleans as it marked the tenth anniversary of Hurricane Katrina. News crews, policy makers, and organizations from across the social change sector paused to reflect on the progress made over the past ten years — and the work that remains to be done. As funders seeking to make lasting change in the world, we know that true change demands persistent effort over the long term. Many of us have been working in New Orleans since Hurricane Katrina, and a decade later we are coming together to reaffirm our support for the region and re-dedicate ourselves not just to short-term rebuilding but to enhancing the region's long-term resilience. We know that philanthropic investment is as vital to the region today as it was a decade ago, and we challenge our foundation colleagues to join us in making an enduring commitment to building a just and resilient New Orleans.

The challenges New Orleans faced in 2005, and still faces today — sea level rise, climate change, economic inequality, a dysfunctional criminal justice system, educational achievement gaps — are challenges that many American cities will need to address over the coming decades. Our investment in New Orleans is about more than this one remarkable city: it is an opportunity to identify solutions to twenty-first-century problems that are effective and can be implemented across the United States.

Perhaps no American city exemplifies resilience like New Orleans. Ten years ago, Katrina devastated the city, killing over a thousand people, displacing a million more, and causing $150 billion in damage in the surrounding region. Since then, the city has been battered by other hurricanes as well as a devastating oil spill that wreaked environmental havoc on the wetlands which act as the city's first line of defense against storms. Those events amplified some of the most deeply entrenched social, environmental, and economic challenges facing the city.

As the problems grew and New Orleans' role as a bellwether city became clear, some of the nation's biggest foundations — including the Ford, Kellogg, Kresge, Surdna, and Walton Family foundations, in partnership with local funders — turned their attention to the region. What they saw was not only the many challenges confronting the city but the ethos of resilience that unites New Orleans and New Orleanians. Our philanthropic investments in initiatives ranging from affordable housing and efforts to close the opportunity gap to coastal restoration and prison reform have been magnified by the unflagging spirit of the people who live and work in New Orleans, as well as by the generous commitments of local funders.

While each institution has a unique focus, years of working across issues and sectors in this unique city have brought us to three important conclusions:

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Latino Entrepreneurs: How Philanthropy Can Fuel Small Business

October 15, 2015

Hand-with-FlagsAs National Hispanic Heritage Month comes to a close, it's a good time to recognize and celebrate the critical role that Latino-owned businesses play in the U.S. economy. Consider, for starters, that between 1990 and 2012, the number of Hispanic entrepreneurs in the United States more than tripled, from 577,000 to 2 million (Source: Partnership for a New American Economy).

While significant, however, those gains are modest compared to the growth of white-owned businesses over the same period. What's more, Latino-owned businesses generate less annual revenue than non-Latino small businesses and grow at a slower rate. And, like many small businesses and entrepreneurs, Latino-owned businesses report that access to capital is a major barrier to growth.

That should not come as a surprise. A recent Harvard Business School study (66 pages, PDF) reports that small business loans as a share of total bank loans in 1995 was about 50 percent, compared to only 30 percent in 2012. And a report on minority entrepreneurship by researchers at UC-Berkeley and Wayne State University finds that minority-owned businesses typically encounter higher borrowing costs, receive smaller loan amounts, and see their loan applications rejected more often.

The reasons for such disparities are many, but one thing seems abundantly clear: resolving them is not just a question of social justice; it goes to the heart of American competitiveness in a fast-moving global economy.

On the plus side, there are no shortage of examples of dynamic businesses started — and nurtured — by Latino entrepreneurs who have secured access to affordable loans from lenders who understand their dreams, their businesses, and their challenges.

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Newsmakers: Darren Walker, President, Ford Foundation

September 21, 2015

Headshot_darren_walkerPhilanTopic is on vacation this week. While we're away, we'll be sharing some of our favorite posts from the last year or three. This post was originally published in December 2013. Enjoy.

In September, Darren Walker became the tenth president of the Ford Foundation. Before coming to Ford, where he was vice president of the foundation's Education, Creativity, and Freedom of Expression program, Walker served as vice president for foundation initiatives at the Rockefeller Foundation and as chief operating officer of the Abyssinian Development Corporation, where he guided the organization's efforts to develop housing for low and moderate-income families in Harlem.

Recently, Michael Seltzer, a frequent contributor to PhilanTopic, spoke with Walker about the current social change environment, the influence of the foundation's activities on his life, and his hopes for the foundation going forward. Seltzer is a distinguished lecturer at the Baruch College School of Public Affairs and an affiliated faculty member of its Center for Nonprofit Strategy & Management.

Philanthropy News Digest: What is it like to be president of the Ford Foundation?

Darren Walker: Although I've been at the foundation for more than three years, in many ways I still have a lot to learn. I certainly didn't arrive here with any idea I would end up as president. When I walked through the doors of this institution for the first time, it was a transformational experience, because the Ford Foundation represents the ways in which my own life has been changed by philanthropy.

I'm a graduate of public schools. I attended public school in a small town in Texas, and I am also a graduate of the first Head Start cohort, a program that was developed out of Ford Foundation-supported research on early child development at Yale University. After high school, I attended a large land grant university -- thanks to Pell grants, another Ford Foundation-supported intervention -- so I know all about Ford's commitment to public education in this country.

After college, I worked on Wall Street and one day found myself at the Abyssinian Baptist Church in Harlem, which was hosting a representative of the Local Initiatives Support Corporation, a creation of -- you guessed it -- the Ford Foundation. LISC had awarded a grant to the Abyssinian Development Corporation for capacity-building initiatives that would allow it to realize the aspirations of the organization's founders, who had a dream in the mid-'80s that Harlem could be a community that could regenerate itself from within. And the Ford Foundation, through LISC, believed in that dream and invested in it. And that capacity-building grant made it possible for ADC to hire me. So my journey, like the journeys of so many others, has been deeply influenced by the Ford Foundation.

I was thrilled to receive a call from the foundation's board chair, Irene Hirano-Inouye, and have her tell me that the board had voted to appoint me president. Actually, I wasn't sure how to respond, beyond saying, "Yes!" because I know that with this job comes huge responsibility, and that I stand on the shoulders of some extraordinary people.

PND: The Ford Foundation has been a long-distance runner when it comes to addressing social issues like poverty. Today, we face some of the most serious social challenges we've seen since the 1960s -- both in terms of holding the line on the progress we've made and in putting forward new solutions designed to help low-income individuals and communities build assets and resilience. Are you discouraged by the magnitude of the challenges we face?

DW: It's easy to be dismayed by the current state of social justice in our country and around the world. But it is important to remember the remarkable progress we have made. There was a time, not too long ago, when every indicator of social mobility for low-income and marginalized communities was improving -- employment among urban black males in the 1990s saw tremendous gains, we saw significant reductions in the level of homelessness, and more African-Americans and Latinos were matriculating to institutions of higher education. Although it wasn't always even, for almost forty years, from the early 1960s through the 1990s, we saw progress. We've fallen back some, so it's particularly important we remember that history and not be discouraged. A certain set of circumstances contributed to the conditions which prevail today. That said, we have faced these problems before and made huge progress in addressing them, and we can do so again.

I am actually hopeful and quite excited about what the Ford Foundation can do to address some of these challenges. There are thousands of new foundations out there, and together we have an opportunity and the potential to make a tremendous difference in the lives of poor and vulnerable people. That is very exciting. So, no, I am not discouraged. I am energized. We have work to do, but as Martin Luther King, Jr. asserted, "The arc of the moral universe is long, but it bends towards justice." The journey toward justice is a two-steps-forward, one-step-back affair. That process will always be with us.

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Weekend Link Roundup (March 21-22, 2015)

March 22, 2015

Think_springOur weekly roundup of noteworthy items from and about the social sectorFor more links to great content from and about the social sector, follow us on Twitter at @pndblog....

Climate Change

Cold winter, wasn't it? Well, yes, if you were on the East Coast of the United States. Not so much everywhere else.

According to Equities.com, the Guardian has launched a campaign to encourage the Bill & Melinda Gates Foundation and the UK-based Wellcome Trust, the two largest funders of nongovernmental medical and scientific research in the world, to divest their portfolios of investments in fossil fuel companies. "We have to confront our own inconsistencies," said Professor Chris Rapley, former director of the Science Museum in London. "Either [Gates and the Trust] accept the argument that we need to wean ourselves off fossil fuels or they don't. It's highly symbolic when charities like this make a stand."

Education

On the Gates Foundation's Impatient Optimists blog, Allan Golston, president of the foundation's U.S. program, argues that annual, comprehensive education data is vital to ensuring that all students have access to a quality education.

International Development

In the Washington Post, Kevin Sullivan and Rosalind Helderman offer a closer look at how Bill and Hillary Clinton's charitable work in Haiti has both succeeded and failed.

Leadership

On the NCRP blog, Britt Yamamoto, executive director of iLEAP, a nonprofit organization that works to inspire and renew social leaders, shares some key takeaways from the NCRP report Cultivating Nonprofit Leadership: A (Missed?) Philanthropic Opportunity.

Grantmaking

The future of innovation in the social sector is...general operating support, writes Jocelyn Wyatt, executive director of IDEO, on the Stanford Social Innovation Review blog.

Nonprofits

Boston-based venture capitalist Todd Dagres is a fan of Shark Tank, the ABC business-pitch reality show, and according to the Boston Globe's Sacha Pfeiffer, he's looking to create a competition modeled on the show where "[e]arly-stage not-for-profit organizations could pitch their missions to investors, who would vet them on their plans and fund those they consider most promising."

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[Review] 'A Path Appears: Transforming Lives, Creating Opportunity'

February 10, 2015

Cover_A-Path-AppearsA recent survey conducted by World Vision found that, despite the growing list of humanitarian crises around the world, 80 percent of Americans did not plan to increase their charitable giving in 2014. Discouraging perhaps, but not surprising. Those without the means to fund large-scale interventions tend to feel helpless in the face of widespread suffering, with many believing that a modest donation cannot possibly make a difference in addressing seemingly intractable problems, while others worry that little of their money will ever reach the intended beneficiaries.

In their new book, A Path Appears: Transforming Lives, Creating Opportunity, award-winning New York Times columnist Nicholas D. Kristof and his wife, former journalist-turned-investment banker Sheryl WuDunn, beg to differ: You can make a difference. But to do so, you have to be thoughtful and intentional in your approach. That means: 1) doing research to ensure that your gift benefits the target population; 2) volunteering your time and expertise when possible; and 3) engaging in advocacy.

The authors, whose 2009 book Half the Sky examined ways to expand opportunity for women and girls in the developing world, here broaden their canvas to include efforts to expand opportunity for all marginalized populations, in the U.S. as well as abroad, with a particular focus on poverty alleviation. It's a formidable challenge, and Kristof and WuDunn do their best to make it comprehensible by breaking it down into parts: how effective interventions can make a lasting impact; how nonprofit organizations can maximize both their income and impact; how giving can benefit the giver.

According to Kristof and WuDunn, these days individual donors can be more confident about the effectiveness of their donations, for a number of reasons: anti-poverty interventions and development projects have become more evidence-based and cost-efficient in recent years; the Web makes it easier for donors to learn about the impact of their giving; and, increasingly, development projects are run more transparently and with greater buy-in and expertise from local communities. Indeed, the book, as much as anything, is a compilation of admiring portraits of nonprofit practitioners, social entrepreneurs, and activists working to remove barriers to opportunity. At the same time, it emphasizes the importance of (and increasing use of) rigorous randomized controlled trials to ensure that interventions are evidence-based and effective. And in highlighting organizations such as Evidence Action, MDRC, and the Coalition for Evidence-Based Policy, organizations that do the un-sexy but essential work of research and evaluation, it aims to empower individuals to think critically about the programs and charities they choose to support.

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Help Fight Hunger This Holiday Season

December 19, 2014

Aiken+sullivanFor a majority of Americans, the holiday season is a time of celebration, feasting, and thankfulness. In the midst of our merriment, however, it's important to remember that while many of us are planning our holiday meals, millions of Americans will be wondering where they are going to get their next meal.
Feeding America recently revealed the results of its quadrennial study, Hunger in America 2014 (176 pages, PDF) — the largest, most comprehensive study of its kind. The study concluded that, in the most recent calendar year, one in seven Americans — or more than 46 million people — sought food assistance from the Feeding America network.

On the surface, people relying on foodbanks may not appear to be "hungry." They may have a home and a job. Yet all too often, they struggle to get enough to eat for themselves and, in many cases, their families. Many qualify as working poor — they work long hours but are paid such meager wages that they are forced to choose between paying the heating bill and buying food. And for a person living paycheck to paycheck, one car problem or unforeseen illness can have devastating consequences. Despite their hard work, food-insecure people often find financial stability out of reach.

Foodbanks are a lifeline for millions of people and families in need. In every county across America, they provide food for people struggling to get by. Yet while these services are critical, the provision of food alone will not solve the problem of hunger. As the plight of the working poor demonstrates, food insecurity does not exist in isolation. It intersects with other basic needs such as housing, access to health care, and employment. To truly solve the problem, we have to meet the needs of low-income families holistically and help them build a pathway out of poverty.

Recognizing this, some foodbanks have begun to partner with job training organizations, healthcare workers, financial firms, and others to help the people they serve access resources that enable them to meet other priority needs. Bank of America, for example, has committed to working with Feeding America to provide families facing hunger with access to the benefits and financial tools they need to begin building a financial safety net and, ultimately, a path to economic stability. Partnerships such as these enable food-insecure families to reach goals they once thought unimaginable, including saving for college, buying a house, and achieving financial stability.

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Knight Cities Challenge: We Want Your Best Idea to Make Gary More Successful

October 17, 2014

Knight_cities_challlengeThe City of Gary, Indiana, is ushering in a new era. The days when the city was synonymous with urban blight and crime are fading into the distance.  Once a symbol of disinvestment standing next to City Hall, the Sheraton Hotel is being demolished and will be replaced with community green space.  Marquette Park has undergone an extensive renovation, making it a hub for community and family-focused events, including Gary's first marathon. Thanks to hundreds of volunteers, a newly renovated Boys and Girls Club sits in the once vacant Tolleston School. Gary's hometown brewery is producing critically acclaimed beer and continues to grow. And, IUN and Ivy Tech have partnered to build a new Arts and Sciences building on the corner of 35th and Broadway to serve as a cornerstone for future redevelopment projects.

The city is on the upswing, and everyone from teachers to business owners is feeling it.  But what's behind Gary's revival, and what can we do to maintain, support, and build on the transformation? How do we ensure that Gary continues to become a more vibrant place to live and work?

Over the next three years, the John S. and James L. Knight Foundation, a private, independent foundation based in Miami, will invest $15 million to answer these questions in Gary and twenty-five other communities across the United States. The foundation believes it is the city's own activists, designers, artists, planning professionals, hackers, architects, officials, educators, nonprofits, entrepreneurs, and social workers who have the answers, and it wants them to take hold of their city's future. To that end, all are welcome to submit ideas to the Knight Cities Challenge in one of three areas that the foundation believes are the drivers of future success for Gary: attracting talented people, expanding economic opportunity, and creating a culture of civic engagement.

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