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320 posts categorized "Economy"

Lincoln Died for Our Sins

August 26, 2013

On August 28, 1963, America witnessed what was arguably the greatest demonstration for racial justice in the history of the country. Half a century after the March on Washington for Jobs and Freedom, the looming question of racial equality in America remains.

In the lead-up to the fiftieth anniversary of the March on Washington, PhilanTopic is publishing a ten-part series, sponsored by the W.K. Kellogg Foundation, in which some of America's most important writers explore our race issues, past and present.

In the ninth installment of that series (click here for the eighth, "The New White Negro," by Isabell Sawhill), Jelani Cobb, director of the Institute for African American Studies at the University of Connecticut and author of The Substance of Hope: Barack Obama and the Paradox of Progress, examines the themes that, over the last century and a half, have made our sixteenth president "a Rorschach test of sorts" and how those themes are bound to and illuminate questions of racial reconciliation and progress in America. The essay below first appeared in the Washington Monthly and is reprinted here with the permission of that publication.

Lincoln_MemorialThe opening scene of Steven Spielberg's cinemythic portrait of the sixteenth president features President Abraham Lincoln seated on a stage, half cloaked in darkness, and observing the Union forces he is sending into battle. It's an apt metaphor for the man himself -- both visible and obscure, inside the tempest yet somehow above the fray. Lincoln was released in early November 2012, just in time to shape our discussions of January 1, 2013, the 150th anniversary of the Emancipation Proclamation. Yet with its themes of redemption and sacrifice, Spielberg's film could seem less suited for an anniversary celebration than an annual one. Here is a vision of a lone man, tested by betrayal, besieged by enemies whom he regards without malice, a man who is killed for his convictions only to be resurrected as a moral exemplar. Spielberg's Lincoln is perhaps less fitted to January 1 than it is to the holiday that precedes it by a week.

In fairness, this narrative of Lincoln's Civil War, equal parts cavalry and Calvary, did not originate with Spielberg. The legend of the Great Emancipator began even as Lincoln lay dying in a boarding house across from Ford's Theater that night in April 1865. (In the same way that JFK's mythic standing as a civil rights stalwart was born at Dealey Plaza in November 1963.) In the wake of his assassination, Lincoln the controversial and beleaguered president was remade into Lincoln the Savior, an American Christ-figure who carried the nation's sins. Pulling off this transformation, this historical alchemy, has required that we as a nation redact the messier parts of Lincoln's story in favor of an untainted, morally unconflicted commander-in-chief who was untouched by the biases of the day and unyielding in his opposition to slavery. We have little use for tainted Christs. Through Lincoln, the Union was "saved" in more than one sense of the word.

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The New White Negro

August 24, 2013

On August 28, 1963, America witnessed what was arguably the greatest demonstration for racial justice in the history of the country. Half a century after the March on Washington for Jobs and Freedom, the looming question of racial equality in America remains.

In the lead-up to the fiftieth anniversary of the March on Washington, PhilanTopic is publishing a ten-part series, sponsored by the W.K. Kellogg Foundation, in which some of America's most important writers explore our race issues, past and present.

In the eighth installment of that series (click here for the seventh, "Prison's Dilemma," by Glenn C. Loury), Isabel Sawhill, a senior fellow at the Brookings Institution and author of many books on the economy, most recently Creating an Opportunity Society, examines the role of race and class in the breakdown of family formation among lower-income American families over the last fifty years. The essay below first appeared in the Washington Monthly and is reprinted here with the permission of that publication.

Headshot_isabel_sawhillIn 1965, Daniel Patrick Moynihan released a controversial report written for his then boss, President Lyndon Johnson. Entitled "The Negro Family: The Case for National Action" (76 pages, PDF), it described the condition of lower-income African American families and catalyzed a highly acrimonious, decades-long debate about black culture and family values in America.

The report cited a series of staggering statistics showing high rates of divorce, unwed childbearing, and single motherhood among black families. "The white family has achieved a high degree of stability and is maintaining that stability," the report said. "By contrast, the family structure of lower class Negroes is highly unstable, and in many urban centers is approaching complete breakdown."

Nearly fifty years later, the picture is even more grim -- and the statistics can no longer be organized neatly by race. In fact, Moynihan's bracing profile of the collapsing black family in the 1960s looks remarkably similar to a profile of the average white family today. White households have similar -- or worse -- statistics of divorce, unwed childbearing, and single motherhood as the black households cited by Moynihan in his report. In 2000, the percentage of white children living with a single parent was identical to the percentage of black children living with a single parent in 1960: 22 percent.

What was happening to black families in the '60s can be reinterpreted today not as an indictment of the black family but as a harbinger of a larger collapse of traditional living arrangements -- of what demographer Samuel Preston, in words that Moynihan later repeated, called "the earthquake that shuddered through the American family."

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Hey, Wall Street, Can You Spare a Dime?

August 05, 2013

(Mark Rosenman is an emeritus professor at the Union Institute & University and directed Caring to Change, in Washington, D.C. In his last post, he urged nonprofit leaders to speak out when confronted with evidence of illegal or unscrupulous behavior in the sector.)

Rosenman_headshotWhile religious groups and nonprofit organizations are forming new coalitions and joining established leaders in the fight to preserve the charitable tax deduction, most charities have remained silent about cuts in government funding for domestic needs. Even more disturbing, few in the nonprofit world seem aware of a new legislative initiative that could add billions of dollars to such programs -- and their own funding streams.

Senator Tom Harkin (D-IA) and Rep. Peter DeFazio (D-OR) have introduced a financial transaction tax modeled after one approved by the European Parliament that is being adapted in eleven nations. Oddly, though Harkin and DeFazio's version of this "Wall Street speculators sales tax" has attracted support from over forty national nonprofit organizations and labor unions, it has not captured the imagination of local and regional charities or nonprofit sector leaders.

According to one study, up to $350 billion a year might be raised by a tax on equity and bond trades as well as the trading of options, swaps, futures, and other derivatives. Such a tax would not apply to the day-to-day financial transactions of individuals or to things like loans and debt issuance.

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A House Divided

July 26, 2013

On August 28, 1963, America witnessed what was arguably the greatest demonstration for racial justice in the history of the country. Half a century after the March on Washington for Jobs and Freedom, the looming question of racial equality in America remains.

In the lead-up to the fiftieth anniversary of the March on Washington, PhilanTopic is publishing a ten-part series, sponsored by the W.K. Kellogg Foundation, in which some of America's most important writers explore our race issues, past and present.

In the third installment of that series (click here for the second, "Emmett and Trayvon: How Racial Prejudice Has Changed in the Last 60 Years," by Elijah Anderson), Thomas J. Sugrue, the David Boies Professor of History and Sociology at the University of Pennsylvania, argues that the racial wealth gap in America over the last fifty years has not only persisted, it has worsened -- in large part because, African Americans, going back generations, have had little opportunity to build and pass on wealth. Sugrue's latest book is Not Even Past: Barack Obama and the Burden of Race. The essay below first appeared in the Washington Monthly and is reprinted here with the permission of that publication.

___________

Billboard_soup_lineIn 1973, my parents sold their modest house on Detroit's West Side to Roosevelt Smith, a Vietnam War veteran and an assembly-line worker at Ford, and his wife, Virginia (not their real names). For the Smiths -- African Americans and native Mississippians -- the neighborhood was an appealing place to raise their two young children, and the price was within their means: $17,500. The neighborhood's three-bedroom colonials and Tudors, mostly built between the mid-1920s and the late '40s, were well maintained, the streets quiet and lined with stately trees. Nearby was a movie theater, a good grocery store, a local department store, and a decent shopping district. Like many first-time home buyers, the Smiths had every reason to expect that their house would be an appreciating investment.

For their part, my parents moved to a rapidly growing suburb that would soon be incorporated as Farmington Hills. Their new house, on a quiet, curvilinear street, was a significant step up from the Detroit place. It had four bedrooms, a two-car attached garage, and a large yard. It cost them $43,000. Within a few years, they had added a family room and expanded the small rear patio. Their subdivision, like most in Farmington Hills, was carefully zoned. The public schools were modern and well funded, with substantial revenues from the town's mostly middle- and upper-middle-class taxpayers. All of the creature comforts of the good suburban life were close at hand: shopping malls, swim clubs, movie theaters, good restaurants.

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Foundations and the 'New Normal': A Q&A With Bradford K. Smith, President, Foundation Center

June 10, 2013

(The following Q&A with Foundation Center president Bradford Smith appears as part of a special feature on "Philanthropy in a changing world economy" in the June 2013 issue of Alliance magazine. It is reprinted here, with minor revisions, courtesy of Caroline and her team.)

Headshot_brad-smith2Caroline Hartnell: To what extent are U.S. foundations changing in response to austerity?

Bradford K. Smith: I started this job two weeks after Lehman collapsed. On my first day in the office, we had a press call about what foundations were doing about the economic crisis. I put down the phone and walked down the hall to our research department and said, "Quick, I need a statistic," and they came up with a really good one. Foundation giving for the previous year, 2007, was around $45 billion -- about 6 per cent of the first stimulus package announced by the federal government. So one thing the crisis really showed up was the scale of foundation resources. When the economy gets into serious trouble, it takes government to try to keep it from collapsing. Foundation dollars alone aren't enough to solve problems. That made foundations think more about how they can leverage money from each other, how they can collaborate with other sectors rather than trying to do it themselves.

A second interesting thing is that foundation giving held up quite well during the recession. One reason is that U.S. foundations calculate their mandatory payout on a rolling three-year average of the value of their assets, which cushions them from big market swings. It also held up well because foundations actually went beyond the federally mandated payout rate of 5 percent.

CH: The recession has changed things for the foreseeable future. Do you think U.S. foundations see this as a "new normal" and are rethinking their role?

BKS: I think most of them are adjusting to the idea that long-term expectations for returns on investment need to be reduced. 2012 was a good year in the financial markets, but nobody really expects that it will go back to the boom years when, as one foundation investment manager put it, for a number of years "all we had to do was get out of bed in the morning and we could make a 20 percent return on our endowment."

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Partnering With State Governments to Strengthen Families: Early Lessons From the Work Support Strategies Initiative

May 20, 2013

(Luis A. Ubiñas is president of the Ford Foundation. This commentary is adapted from a forthcoming Urban Institute report, available online starting June 4, that includes an array of perspectives from leaders about practical lessons emerging from the Work Supports Strategies initiative.)

Headshot_luis_ubinasOver the past half-decade, as the country has suffered through a deep, persistent economic downturn, America's work support programs have served as an essential backstop for millions of working families struggling to keep a toehold in the labor market. For many families, supports such as child care subsidies, health insurance and unemployment assistance, and food stamps have been the difference between staying together and dissolution.

Yet in dozens of states, lean budgets and antiquated, underresourced work support systems are failing to meet the needs of America's working poor. Problems that were evident in better times have become more intractable, even as caseloads have expanded. How can states improve the health and well-being of low-income families, stabilize their work lives, and make it possible for family breadwinners to get and keep a job if they are unable to get basic work supports to those who are eligible?

Solving such a challenge goes to the heart of what all of us in the philanthropic community do on a daily basis: tackling major problems at a scale that results in real and enduring change -- in this case, creating opportunity for low-income populations and keeping low-income workers in the workforce.

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PNP Salary Survey Report: 'The Year of the Program'

March 29, 2013

(Robert F. Duvall, Ph.D., is director of special projects at Professionals for NonProfits (PNP), a full-service staffing firm exclusively serving the nonprofit sector.)

Program-deliveryProfessionals for NonProfits has just released its annual Salary Survey Report. With a focus on salary ranges, practices, and trends in the nonprofit sector in the Northeast and Mid-Atlantic regions, the survey has gained widespread credibility over the last three years and always generates considerable interest.

A look at the Survey Report for 2012 reveals some intriguing developments. While there is great variety among organizations -- in terms of budget size, area of service, location, and scope of activity -- one theme appears to stand out: More than 80 percent of the 6,500 nonprofits surveyed reported a new or renewed focus on the effective development of programs and services.

"In many ways, 2012 could be called 'The Year of Program'. Nonprofits of all sizes and types are taking a serious and fresh look at what they offer and how they serve the public through their programs," said Gayle A. Brandel, president and CEO of Professionals for NonProfits. Moreover, the renewed focus on programs and services is expressed in four inter-related areas: development, delivery, evaluation, and efficiency.

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Homeownership and the Racial Wealth Gap

March 06, 2013

I'm 29 and still hopeful I'll be a homeowner one day. Both my parents have owned their homes for years, and it has always been clear to me that the financial and social benefits of owning a home outweigh the benefits of paying less in rent and using the extra income for other things. Even though I know, as an African-American woman with some serious student debt living in one of the most expensive cities in the world, that the odds are stacked against me, I've started taking some steps to make homeownership a possibility in the not-too-distant future.

So you can understand my unease after reading the following in a new study from the Institute on Assets and Social Policy at Brandeis University about the growing wealth gap in the United States:

While homeownership has played a critical role in the development of wealth for communities of color in this country, the return on investment is far greater for white households, significantly contributing to the expanding racial wealth gap shown in [the figure below]. The paradox is that even as homeownership has been the main avenue to building wealth for African-Americans, it has also increased the wealth disparity between whites and blacks....

As the report, The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide (8 pages, PDF), notes, homes are the largest investment most American families make, and they are by far the biggest item in a family's "wealth portfolio." For African Americans, home equity represents 53 percent of household wealth, while for whites, who typically have a more diversified wealth portfolio, it accounts for just 39 percent. "Yet, for many years," the report's authors write, "redlining, discriminatory mortgage-lending practices, lack of access to credit, and lower incomes have blocked the homeownership path for African Americans while creating and reinforcing communities segregated by race. African Americans, therefore, are more recent homeowners and more likely to have high-risk mortgages, [making them] more vulnerable to foreclosure and volatile housing prices."

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Version 2.0: The Giving Pledge Globalizes

March 01, 2013

(Bradford K. Smith is the president of the Foundation Center. This post originally appeared on the center's Transparency Talk blog.)

Headshot_brad-smith2They said that the Giving Pledge was "made in America," they said that Bill and Melinda Gates and Warren Buffett didn't understand other cultures, and that their brand of philanthropy was inappropriate for (substitute the country of your choice). They were wrong: on Tuesday, February 19, the ranks of the 93 American billionaires who have already signed the Giving Pledge -- a public commitment to dedicate more than half their fortunes to philanthropy -- were joined by a dozen more representing eight countries. In one fell swoop, the Giving Pledge has gone global.

How could the skeptics have gotten it so wrong? Since the Giving Pledge launched in 2010, wherever my travels have taken me, I have heard Brazilians, Mexicans, Europeans, and Chinese go to great lengths to explain why it would never catch on in their countries. On the eve of the Gates/Buffett visit to China, I was interviewed on CCTV2 (the English language channel of China's state-controlled media conglomerate) by a reporter who bombarded me with question after leading question to prove that theirs was a fool's errand. It was all I could do, in vain I suppose, to tell her that as hyper-developed as philanthropy may be in the America, it is alive and well and growing in China.

Here's what the skeptics fail to understand about the Giving Pledge:

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Closing the Achievement Gap for African-American Males: An Economic Imperative

February 26, 2013

(Angela Glover Blackwell is the founder and CEO of PolicyLink, an Oakland-based national research and action institute working to advance economic and social equity. She currently serves on the President's Advisory Council on Faith-Based and Neighborhood Partnerships and is a co-author, with Stewart Kwoh and Manuel Pastor, of Uncommon Common Ground: Race and America's Future.)

Headshot_angela-glover-blackwellIn the United States, a black public school student is suspended every four seconds, while every 27 seconds a black high school student drops out of school. Black students are also 3.5 times more likely than white students to be suspended or expelled. Within this group, black male students fare the worst.

At PolicyLink, our mission is to achieve equity by "Lifting Up What Works." We find innovations and strategies that expand opportunity and, working with local partners, get what's working into policy so that effective innovations are more widely disseminated. We are particularly inspired by the strategies being employed by the Oakland Unified School District, where in 2008-09 only 49 percent of black males graduated, compared with 72 percent of white males and 61 percent district-wide, and where 18 percent of African-American males were expelled at least once, compared with 3 percent of white male students and 8 percent of students district-wide.

In response to those disturbing numbers, OUSD opened an Office of African American Male Achievement (AAMA) in 2010. With funding from Atlantic Philanthropies, the Mitchell Kapor Foundation, the Stuart Foundation, the California Endowment, and Kaiser Permanente, AAMA is working to change educational outcomes for young men of color -- and in the district as a whole -- in innovative ways. For instance, many Oakland high schools and middle schools now offer Manhood Development Classes, in which African-American men from the community teach skills designed to help students navigate the conflicting value systems they experience in different areas of their lives. Family and parent summits at each school include "data walks" where parents and kids are provided with charts detailing educational outcomes at the school as well as where the gaps in access and learning occur. And those efforts are bearing fruit: in 2012 the U.S. Department of Education announced a voluntary resolution of the compliance review initiated against OUSD regarding the disproportionate harshness and frequency of disciplinary measures meted out to African-American students. The district has even been cited as a model for other districts across the country due to its intense efforts to improve in this area.

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Let's Think Smarter About the Charitable Tax Deduction

January 14, 2013

Jan Masaoka is CEO of the California Association of Nonprofits (CalNonprofits), publisher of Blue Avocado, and author of The Best of the Board Café, Nonprofit Sustainability (with Jeanne Bell and Steve Zimmerman) and The Nonprofit's Guide to Human Resources.

Jan_masaoka_headshotOn New Year's Day, lawmakers in Washington finally agreed to disagree and passed a bill to avert the so-called fiscal cliff. But with the federal government looking at another trillion-dollar deficit and record levels of debt, no idea for balancing federal expenditures and revenue will be off the table for long.

For many nonprofits, keeping the charitable tax deduction off the table is the issue. But while the issue itself may seem straightfoward, there are more nuances and choices to it than meet the eye. There are many ways, for example, to increase taxes that would not have a directly negative impact on nonprofits -- which, after all, are a huge part of the safety net for the poor, the elderly, the unemployed, and many others.

The deal made to avoid the fiscal cliff left the charitable tax deduction untouched for the most part -- and for the time being. To be clear: neither eliminating the deduction nor reducing the deductibility rate was discussed; the administration's proposal would have lowered the current cap on the deductibility of charitable gifts from 35 percent to 28 percent of one's income. The one tiny change passed was the reinstatement of the Clinton-era Pease Amendment, which will raise taxes on some of the wealthiest donors by perhaps $2,000 each.

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[Infographic] Nonprofits’ Impact on the Economy

October 27, 2012

Our infographic of the week, courtesy the Rebecca Gordon Group, delves into a topic that has been much-discussed this election season: nonprofits' impact on the economy.

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Of Fire Trucks, Obama, Romney and Philanthropy

October 15, 2012

(Bradford K. Smith is president of the Foundation Center. In his last post, he announced the launch of the Reporting Commitment, an effort initiated by a group of the largest U.S. foundations to develop more timely, accurate, and precise reporting on the flow of philanthropic dollars.)

Gilpinlib_sign"I live in a rural community where the Tea Party dominates, no new taxes can be passed without a super majority, and government is cutting back on everything. The other day someone asked me how I can help the fire station find money to buy a new fire truck. What do I tell him?"

I was recently asked that question by a librarian at "Network Days," an annual live/virtual gathering of the librarians, nonprofit resource center administrators, and community foundation leaders that are the human face of the Foundation Center's Cooperating Collection Network. In all fifty states and fourteen countries around the world, CCs help struggling nonprofits, those who want to create nonprofits, and people who want to work in nonprofits connect with the resources they need. Except when there are no resources to be found.

Despite being president of the Foundation Center, the world's largest source of information on organized philanthropy, my response to that librarian's question was pretty feeble. All I could really muster is a few words to the effect that, around the country, there are small, local foundations which, on occasion, are willing to contribute to the purchase of a fire truck, an ambulance, emergency medical equipment, and the like. You can find some of them through the Foundation Directory Online or by searching 990-PF tax returns. Most of them don't have Web sites.

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Hunger in America: A Q&A With Julie Gehrki, Walmart Foundation

October 12, 2012

In 2010, Walmart and the Walmart Foundation launched a five-year, $2 billion effort to help end hunger in America. In partnership with Feeding America and five of the country’s largest food companies -- ConAgra Foods, General Mills, Kellogg Company, Kraft Foods, and Unilever -- Walmart has since launched a variety of initiatives to encourage its customers to join the fight against hunger. Earlier this fall, Philanthropy News Digest spoke with Walmart Foundation senior director Julie Gehrki about the company's Fighting Hunger Together campaign and what the foundation is doing to address hunger in America.

Julie_gehrki_headshotPhilanthropy News Digest: What effect has the sluggish economic recovery and the drought in the Midwest had on hunger and food insecurity in the United States?

Julie Gehrki: In early September, the U.S. Department of Agriculture released the results of its most recent survey, which found that more than fifty million Americans are suffering from food insecurity. And a recent survey conducted by Feeding America found that 65 percent of its foodbank directors are very worried about food supply in the coming months. While we're hopeful the economy will continue to improve, we want to make sure that those who may not be benefiting from the improvement are taken care of. Feeding America foodbanks are on the frontlines of need in our communities, and Walmart wants to make sure they have the food they need to help those who need it -- particularly if food prices rise, as some are predicting, and as we head into the holiday season.

PND: What are some of the best ways for individuals to fight hunger in their communities?

JG: One of the things we're doing is called the Golden Spark campaign. Through Sunday, October 14, people can go to Walmart.com/hunger or our Facebook page and vote for a community to win $50,000 to start or expand a backpack program -- that's a program that provides meals to food-insecure children over the weekend, when they don't have access to free- or reduced-price school meals. A lot of people understand that kids get fed through school, lunches and sometimes breakfasts, during the week. But the backpack program forces people to think about what a kid does on the weekend. Studies have found that teachers have noticed that many kids are less attentive on Monday mornings, and that's because many of them have not eaten enough over the weekend. Backpack programs are largely run by volunteers. Individuals pack backpacks with food that's easy for kids to open and prepare on their own over the weekend. Walmart believes this is a local issue, something that communities and individuals in those communities have to rally around, because it's their neighbors who are feeling the pain.

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What Winning Looks Like: Impact & Innovation Forum for Black Male Achievement

October 05, 2012

(Grace Sato is a research assistant at the Foundation Center. This is her first post for PhilanTopic.)

Innovation-impact-forumWhat do New York City mayor Michael Bloomberg, philanthropist George Soros, and Harlem Children's Zone founder Geoffrey Canada have in common? They're all passionate about black male achievement. And they all shared the stage at the inaugural Impact & Innovation Forum, hosted by the Open Society Foundations, earlier this week.

At the event, more than two hundred leaders from every sector -- philanthropy, government, finance, media, education, nonprofit, faith -- gathered to hear about efforts taking place across the nation to improve the lives of black men and boys. And while acknowledging the many challenges black men and boys face, forum participants focused on celebrating victories, spotlighting innovative strategies, and building on growing momentum in the field.

Here are some of my takeaways from the event:

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