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24 posts categorized "Giving Pledge"

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.

PND: The MacArthur Foundation, along with the Chicago Community Trust and the Calvert Foundation, recently launched a $100 million impact investment initiative in Chicago aimed at accelerating the efforts of organizations there to address a variety of educational disparities, the lack of access to healthy food in many neighborhoods, the shortage of affordable housing, and other critical needs. While $100 million is a lot of money, it's a relatively modest sum given the scope and scale of the needs. Is impact investing the future of social service funding?

SC: I'm not sure it's the future, but it's certainly part of the future. I wouldn't want to suggest it's a way to solve all problems. Obviously, it isn't. But it is a new lever, a new platform that will gain traction and will be very helpful in accelerating and maximizing social impact across the country and the rest of the world.

I would add that sometimes these investments can be catalytic; you can't just measure them by the actual dollars put in. When we started AOL thirty-one years ago, we raised $1 million in venture capital in our initial funding round, and it took us a while to really scale the company, but eventually we did. A decade ago, the Case Foundation invested a couple of million dollars in Network for Good and platforms like MissionFish (now part of the PayPal Giving Fund), and those investments have generated more than $2 billion dollars in contributions to thousands of nonprofits. So sometimes the investments have substantially greater impact than the actual size of the original check would suggest.

As I mentioned, sometimes the key is a partnership. Network for Good and MissionFish chose not to go it alone, but instead figured out how they could work together, pool some capital, and focus on specific issues they considered important. I think that's a good model, and having foundations looking at some of these issues in a broader, more integrated context is something we'd like to see more of.

We've done some work, for example, with the Kresge Foundation, which is doing a lot of different things in Detroit. One of the things it invested in, alongside Revolution, our investment firm, was Shinola, a Detroit-based maker of handcrafted watches. It's also making significant investments in rebuilding key parts of the city's infrastructure and is allocating some of its capital for direct investments in companies that can be catalysts for change, whether that's in the area of job creation, rebuilding neighborhoods, or driving economic growth in the city and the region.

PND: What, in your view, is needed to inspire more of these types of partnerships — and attract larger sums of money into impact investing experiments?

SC: In part, I think it's about awareness. A few years ago, most people I ran into didn't know about impact investing, or certainly weren't talking about it. It's also about building coalitions, which is why partnerships are so important. Some of it is engaging on the policy side. There are impediments that are holding back investment in the impact space, including some of the ERISA rules that were limiting or constraining some institutional investors — pension funds, typically — from making impact investments. One of the catalysts for the venture capital revolution three decades ago involved changes to the rules prohibiting large institutional investors from investing in venture as an asset class. When the rules were recently changed, it unleashed a lot of capital.

The last factor is success. Momentum begets momentum. As people see more of these initiatives and companies succeed, it will encourage others to take a closer look. And as those people pursue it and begin to have some success, many of them will devote larger sums to it. Again, sometimes these things just take time.

PND: Collaboration can be a challenge for nonprofits — not that it's easy for anyone — in part because nonprofits tend to be the partner at the table with the fewest resources. Do you think the third wave does anything to change that dynamic?

SC: I think it does, in two respects. One is that technology, particularly the Internet, is an unparalleled platform for mobilizing action. Awareness first, and then action. There are plenty of examples, including the Arab Spring and the way many politicians now run their campaigns. So you've got technology leveling the playing field and giving everybody a voice, giving people the ability to aggregate many voices and create networks around ideas. That will only accelerate.

The other is this growing emphasis on partnership and policy — what I call the "Ps" of the third wave. While the focus right now may be more on the company side of things, those same kinds of principles are going to drive a lot of innovation and success in the social sector over the next ten to twenty years.

PND: Business isn't always viewed as the most trustworthy player when it comes to addressing social and environmental challenges. Some would argue that's because so many business leaders are eager to promote the idea that the sole function of business in a free-market economy is to maximize shareholder value. Is that a fair critique?

SC: The view that profit should be the only concern of business is the traditional, Milton Friedmanesque view of capitalism, and it's a view that many investors and CEOs share. But I think it's changing. The interest in and growth of things like impact investing demonstrates that. Benefit corporations didn't really exist five years ago. I don't know what the current number is, but there are probably a couple thousand registered B corps in the U.S., and their boards are charged with tracking and reporting against the company's impact or purpose, not just its profit. There's also a growing recognition among companies that younger people and the millennial generation want to work for companies that stand for more than profit and they want to invest in companies that stand for more than profit.

I understand the traditional critique of business. As I said earlier, I don't think business by itself can solve all social problems; there's a role for nonprofits, there's a role for government, there are roles for lots of folks in the social sector. But business can have a bigger role in solving some of the problems we face than it has in the past. It will require a different mindset on the part of business leaders, of course, and that's one of the reasons I'm excited about the momentum that is building around impact investing. I also think it will be helpful to a lot of communities around the country, and around the world, if there's a more inclusive approach to entrepreneurship and the playing field is leveled so that anybody with an idea for a business or social enterprise has a shot at making it a reality.

PND: What could persuade corporate leaders to adopt a double- or even triple-bottom-line view of the world?

SC: Many corporate leaders already have. While the majority of CEOs of Fortune 500 companies may still be focused on profit maximization, there's a growing recognition in corporate America of the importance of purpose and there are many conversations going on about how business can transition to a different, more socially and environmentally focused kind of model. I have no doubt that ten, twenty years from now there will be more companies focused on and tracking their impact in those areas and not just focused on profit.

PND: Obviously, technology will be a key driver of future innovation. But nonprofits, especially smaller nonprofits, often don't have the infrastructure in place to take advantage of it. Do you worry about a widening tech divide among nonprofits? And what, if anything, can be done to lower the barriers to participation for smaller nonprofits?

SC: That's a concern, sure, but I believe the continued development of a variety of different platforms will make it relatively easy for smaller nonprofits to take advantage of new technologies and will help level the playing field. I'm not particularly worried about that.

Earlier, I mentioned Network for Good as an example. A decade or so ago, Jean and I and others at the Case Foundation sensed that the Internet could be an important fundraising platform for nonprofits, but most nonprofits didn't have the expertise or the capacity to take advantage of the opportunity. Backing an initiative like Network for Good, which basically was a platform that all nonprofits could use and plug into at essentially no cost, was a way to provide those tools more broadly. Today, crowdfunding sites, platforms like Kickstarter and others, are doing the same kind of thing, and smartphones have been a game-changer in terms of leveling the playing field. In Africa, for example, a few years ago most farmers had no idea what the price of their particular crop should be or even what the weather a few days out was likely to be. But now, thanks to smartphones, farmers in Africa are empowered in ways that simply weren't possible before.

PND: In the book you talk about some of the things down-on-their luck cities and marginalized urban neighborhoods are doing to encourage entrepreneurial activity. How might that apply to social sector organizations working in those communities?

SC: There's remarkable momentum building around entrepreneurialism in many places. We've visited dozens of cities in our Rise of the Rest tours over the last couple of years, and I'll give you two examples based on what we saw. Seventy-five years ago Detroit was the most innovative city in the country, and then it kind of lost its entrepreneurial mojo, it lost 60 percent of its population, and then it went bankrupt. Now it's fighting its way back, which is most evident downtown. And a lot of that renewed economic activity has been driven by cross-sectoral partnerships between government, foundations, and business -- both small and large businesses. There's still a lot of work to be done, it's not going to happen overnight, but it's creating a new sense of hope in Detroit. There's a sense of possibility and opportunity there that didn't exist five years ago.

New Orleans is another example. Ten years ago, the city was reeling from Katrina and lots of people had left, many of them for good. Now, there's a great startup scene in the city and very encouraging things are happening in the school system, in part because city leaders and school officials, post-Katrina, are much more open to trying new things. You even have a couple of dozen education software companies in New Orleans, some of them started by former teachers.

So, there's no question we're seeing greater interest and more investment in Rise of the Rest cities. And it's not just Detroit and New Orleans; I could give you a couple of dozen other examples. But the important point is that these communities are more vibrant today than they were a decade ago, they are seeing more job growth, more economic growth, and they're providing better services. And when that happens, a lot of good things can happen. We can debate what the priorities are or should be, but at least now the residents of those cities are seeing investment grow for the first time in a long time, are seeing tax revenues grow, and have an opportunity to think about the best way to allocate those resources for the greater good. It's the way our system is supposed to work, and we're very excited to see it happening in many places around the country.

Matt Sinclair

Weekend Link Roundup (May 21-22, 2016)

May 22, 2016

Arthur-conan-doyleOur weekly round up of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Climate Change

Just as we often hear that it's easier to make money than to give it away, it seems as if donors and foundation leaders are learning that it's easier to divest from fossil fuel companies than it is to invest in clean energy. Fortune's Jennifer Reingold reports.

Economy

America's middle class is shrinking. The Pew Research Center lays it out in depressing detail.

Giving Pledge

So you've amassed a few hundred million or even a billion dollars and now want to help those who are less fortunate. A good place to start, writes Manoj Bhargava, founder of Billions in Change and Stage 2 Innovations, in the Chronicle of Philanthropy, is to understand the problem before funneling money into a solution, stop relying on traditions and assumptions, and make your philanthropy about serving, not helping.

Health

In a post on RWJF's Culture of Health blog, the foundation's Kristin Schubert says it's time for public health officials, school administrators, and parents to reframe the way we think about the links between health, learning, and success in life.

International Affairs/Development

Why should U.S. foundations take the global Sustainable Development Goals seriously? Because, writes NCRP's Ed Cain, they "constitute the broadest, most ambitious development agenda ever agreed to at the global level for getting the world off of its self-destructive, unsustainable path. [They] reflect the interconnectedness of social, economic and environmental challenges and solutions. [And they]...tackle inequality, governance and corruption."

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Weekend Link Roundup (January 30-31, 2016)

January 31, 2016

Woolworth_sit-inOur weekly round up of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Climate Change

According to Jessica Leber, a staff editor and writer for Fast Company's Co.Exist, Al Gore, at one time "possibly the gloomiest man in America," is feeling somewhat hopeful for the future of the planet, thanks in part to what he sees as the success of the recent Paris climate change talks.

Corporate Social Responsibility

Hey, you CSR types, looking to achieve more social good in 2016? Saudia Davis, founder and CEO of GreenHouse Eco-Cleaning, shares some good advice.

And Ryan Scott, founder and CEO of Causecast, a platform for cause engagement, weighs in with six reasons businesses need to increase their CSR budgets.

Criminal Justice

"It is clear," writes Sonia Kowal, president of Zevin Asset Management, on the NCRP blog, "that our justice system is designed for control rather than healing. And with the alarming demographics of national incarceration rates, it's also clear that it helps facilitate an economy of exclusion that considers many people of color to be unemployable and disposable." What can foundations and impact investors do to change that paradigm. Kowal has a few suggestions.

Education

The Ewing Marion Kauffman Foundation has announced the launch of EDInsight, a new education-related blog that will  "provide a forum for discussing a variety of topics related to education — including teacher preparation, school quality, postsecondary attainment, use of education data and other education news and trends."

Giving Pledge

The New York Times reports that, since July, investor and Giving Pledge co-founder Warren Buffett has gifted $32 million worth of stock in Berkshire Hathaway, the holding company he controls. The Times also notes that the total represents "a relatively small part of Buffett's plan to give most of his $58.3 billion fortune to charity." Interestingly, despite giving roughly $1.5 billion a year (mostly to the Bill & Melinda Gates Foundation) since launching the Giving Pledge in 2010, Buffett's personal net worth, most of it tied to Berkshire stock, has increased by more than $10 billion, while Bill Gates's net worth has grown by $27 billion, from $53 billion to $80 billion. In other words, neither man is giving his fortune away as quickly as he is adding to it.

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5 Questions for...Jean Case, CEO, Case Foundation

July 17, 2015

How the digitally native, media-savvy millennial generation is shaping the way people view and bring about social change has been a topic of debate for some time. Are millennials "the giving generation," or are they just  "slacktivists"? Founded in 1997 by AOL co-founder Steve Case and his wife, Jean, the Case Foundation has been working to engage millennials in social work for the better part of a decade. As part of that effort, the foundation, in partnership with Achieve, an Indianapolis-based research and creative agency, recently released the 2015 Millennial Impact Report: Cause, Influence & the Next Generation Workforce (41 pages, PDF), the eighth in a series of reports that examines the question: How does the millennial generation engage with and support causes?

Recently, PND asked Case Foundation co-founder and CEO Jean Case about some of the report’s findings and  implications.

Headshot_jean_casePhilanthropy News Digest: Since 2010, the Millennial Impact Report series has examined trends in giving and volunteering by millennials. This year's report is focused on company cause work, the factors that influence engagement in the workplace, and the relationship between millennial employees and their managers. Why is it important for millennials to be engaged in giving and volunteering at the workplace?

Jean Case: Millennials play a powerful role in democratizing philanthropy. Now eighty million strong, the millennial generation is one of the most educated, tech-savvy, and idealistic generations ever. At the Case Foundation, we have long recognized the power of millennials to change the world — and that is why our support of the Millennial Impact Project has been critical to the exploration of how they connect, give, and inspire. Throughout our six years of research (and eight reports) with Achieve, we've found that with few exceptions, this generation is consistently willing and eager to "do good." And they choose not to leave their personal passion for doing good at the door but rather seek to integrate it fully into their work and social network of friends and colleagues. If we are going to solve the complex social problems of our era — eradicating deadly diseases, conquering global hunger, scaling sustainable energy solutions — we need this generation to lead the charge.

One aspect of our research which was telling was that 70 percent of millennials volunteered for a cause last year. That number is triple the average volunteer rate of America as a whole, which was just over 25 percent in 2014. Millennial employees value putting their skills and expertise to work in support of a cause, which means employers have a greater opportunity to positively engage with this growing portion of the workforce.

PND: According to the most recent survey, 46 percent of millennial respondents said they were more likely to donate to a company-sponsored giving campaign if asked by a co-worker, while only 27 percent said they were more likely to give if asked by their supervisor. Similarly, 65 percent said they were more likely to volunteer for a company initiative if their co-workers were participating, while only 44 percent said they would if their supervisor participated. What are the implications of these findings for companies looking to engage their millennial employees in "company cause work"?

JC: Millennials now make up a majority of employees — 53.5 million workers to be exact, or more than one in three American workers. We know that they place value on the relationships and bonds they build with co-workers. This is a generation that demands our attention and wants to take its idealism and put it into action in meaningful ways. CEOs and those in leadership need to understand that millennials are influencers who shape the behaviors and purchasing decisions of their larger social circles, so it's no surprise that they tend to be the most inspired by their colleagues and peers, and less so by management. Organizations can take this opportunity to shift away from hierarchical structures and top-down CSR programs and move toward more collaborative cause environments.

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Weekend Link Roundup (October 11-12, 2014)

October 12, 2014

Flock-of-migrating-cranesOur weekly roundup of noteworthy items from and about the nonprofit sector....

Communications/Marketing

On the Kauffman Founders School blog, Neil Patel explains why email marketing  trumps social media.

Although he's primarily talking about news, Robinson Meyer, an associate editor at The Atlantic, explains how social media has become the new press release, with lessons for all of us.

Giving Pledge

According to this short Bloomberg TV segment, Mexican billionaire Carlos Slim Helú, the second richest man in the world, will not be signing the Giving Pledge anytime soon.

Impact/Effectiveness

In the second installment of a two-part series on the Markets for Good site, Peter York, the founder/CEO of Algorhythm, an "impact science organization that combines social science, outcome measurement, next generation analytics and technology to place highly accurate and actionable insights into the hands of social change agents,"argues that it's "time for the social sector to try out the method that medicine, psychology, business, economics and ecology have been using for a long time: the observational cohort study (OCS)."

Crain's Chicago Business has a good article about a group of investors led by Chicago billionaire J.B. Pritzker that plans to invest $16.9 million in "an innovative financing scheme that allows Chicago to expand pre-kindergarten programs for more than 2,000 low-income children over the next four years." According to the Chronicle of Philanthropy, this is the fifth social impact bond to be announced in the U.S.

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A Generational Transition

November 13, 2013

(Stephen Bronfman is executive chair of Claridge, an investment firm started by his father, Charles, and co-chairs the Claudine and Stephen Bronfman Family Foundation. He also serves as president of the Samuel and Saidye Bronfman Family Foundation, is a director of the David Suzuki Foundation, and chairs the Combined Jewish Appeal 2014 Campaign. This post, the second in the "Making Change by Spending Down" series, a joint project of the Andrea and Charles Bronfman Philanthropies and GrantCraft, orginally appeared on the GrantCraft blog.)

Headshot_stephen_bronfmanPhilanthropy -- as my father often says -- is in the Bronfman DNA, and we are fortunate to be able to practice it generously and expansively. Representing this philanthropic tradition properly and effectively is a responsibility I embrace and will pass to my own children.

The Andrea and Charles Bronfman Philanthropies' (ACBP) focus on Canadian heritage, Jewish community and Israeli culture, education, and society building is critical. Its footprint will be long-lasting, especially as it helps to put its major grantees on paths toward sustainability after it shuts its doors in 2016.

The work and mission of ACBP has always and rightly reflected the interests and passions of my father and his late wife, Andrea. I have my own, and I expect my own children to one day chart their own direction as well.

Deciding to close ACBP and direct his philanthropy through other channels shows how my father respected generational differences and transitions, aand also a changing world in which new challenges emerge and demand new philanthropic responses and approaches.

The decision reflects a philanthropic mindset to not burden a new generation with certain strictures, missions, and infrastructures. It empowers us to pursue our own visions and approaches to affect positive change. This is a desirable outcome.

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The Transparent Spend Down

September 23, 2013

The following post by Charles R. Bronfman, chairman of The Andrea and Charles Bronfman Philanthropies (ACBP), is the first in a new blog series, "Making Change by Spending Down," produced by ACBP in partnership with GrantCraft, a joint service of the Foundation Center and the European Foundation Centre. In the post, Mr. Bronfman explains how he, his late wife, Andrea, and ACBP president Jeffrey Solomon arrived at the decision to spend down the foundation by 2016; why he and Solomon decided to take extra steps to create transparency around the spend-down process; and what they hope the added measure of transparency will accomplish.

We welcome your comments on this and every post in the series and encourage you to discuss and/or share individual posts on Twitter using the #spenddown hashtag. To learn more about the project, visit the GrantCraft Web site.

*****

My parents were my greatest mentors. They taught me the meaning of philanthropy through their active involvement in many causes. Creating initiatives to address social, cultural and community needs now, and facilitating positive change for the future, were and remain my guiding principles.

Those principles became the foundation for The Andrea and Charles Bronfman Philanthropies, which my late wife, Andy, and I established in 1985. All along, we believed in creating programs with long-lasting effect and which could and would make a real difference in the world.

At the beginning of the twenty-first century, after doing our homework about foundations created in perpetuity, Andy; Jeff Solomon, the president of our foundation; and I decided that ACBP should fulfill its mandate. While several other foundations had chosen this course, we decided to keep our decision to ourselves. But as more foundations chose to be time-limited and publicly announced their decision, we decided to go public with ours in 2008.

In an open letter to the philanthropic community three years later, Jeff Solomon and I announced that we would spend down ACBP by 2016.

That's not news anymore. What is, though, is the transparency we vowed to establish around the spend-down process, a conscious effort to share our experiences -- expected and not, good and bad -- on the road to 2016.

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[Infographic] A Decade of Million-Dollar Gifts

September 14, 2013

News that the income gap between the richest 1 percent of Americans and the other 99 percent reached an all-time high in 2012 lends some poignancy to this week's infographic. Based on an analysis of publicly announced million-dollar-plus gifts made between 2000 to 2011, the graphic captures highlights of A Decade of Million-Dollar Gifts, a new report from the folks at the IUPUI Lilly Family School of Philanthropy.

Among other things, the report found that the number of million-dollar gifts peaked at 2,355 in 2008 and reached its lowest level -- 1,092 -- in 2003; that the combined value of million-dollar gifts peaked at nearly $61 billion in 2006 (thanks in large part to Warren Buffett's gift of approximately $33 billion to the Bill and Melinda Gates Foundation); and that, following a three-year decline, the combined dollar value of such gifts reached its lowest point of the decade, roughly $10 billion, in 2010.

The report also identified three patterns in the number and dollar amount of gifts:

  • most types of recipient organizations saw the highest level in the number and dollar amount of million-dollar-plus gifts either at the beginning of the period (in 2000 or 2001) or in the middle years (2007 or 2008);
  • giving to most types of recipient organizations experienced a decline from 2001 to 2003, and again from 2008 to 2010, years that bracket the decade's two recessions; and
  • giving to most types of recipient organizations rose modestly in 2011, although it was still lower, in inflation-adjusted dollar terms, of the levels seen in 2007.

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Most Popular PhilanTopic Posts (August 2013)

September 02, 2013

It's the start of a new month, which means it's time to look back at the most popular posts on PhilanTopic over the last thirty days:

What did you read/watch/listen to in August that PhilanTopic readers should know about? Share your favorites in the comments section....

Eye On: John Caudwell

August 08, 2013

(Caroline Broadhurst is director of Community Care Projects at the Rank Foundation and, through the Clore Social Leadership Programme, a visiting fellow at the Foundation Center. This is the first of a series of post she'll be writing about the motivations of UK donors who have signed the Giving Pledge. For more about John Caudwell and the other Giving Pledgers, visit the Foundation Center's Eye on the Giving Pledge.)

Headshot_john_caudwellFrom modest beginnings, 60-year-old John David Caudwell has established himself as one of the most successful English businessmen in modern times. After leaving school before earning what in the U.S. would've been his high-school diploma, Caudwell went to work for Michelin, the French tire manufacturer at the company’s factory in the West Midlands. Not content to remain an engineering foreman, however, he nurtured his entrepreneurial instincts and soon began to create money-making ventures, including a corner shop and mail-order motorcycle clothing business.

Combining his mechanical knowledge -- he earned an HNC in mechanical engineering while working at Michelin -- and his growing business experience, Caudwell eventually set up a car dealership, with many of his former Michelin factory friends among his loyal customers. Displaying the entrepreneurial sensibility that would become his trademark, in 1987 he took a chance on the nascent mobile phone industry, starting Midland Mobile Phones with his brother, Brian. Despite running at a loss in its first few years, the business turned into a huge success, and by the 2000s the company, by then called Phones4U, was the largest independent distributor of cellular phones in the UK, selling an average of 26 phones every minute and earning more than $1.5 billion annually.

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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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2012 Year in Review: The Giving Pledge Gains Momentum

January 02, 2013

Yir_2012The Giving Pledge, the effort launched in 2010 by Bill and Melinda Gates and Warren Buffett to encourage the world's mega-wealthy to devote at least half their wealth to philanthropy, saw a significant increase in signatories in 2012, as well as at least one effort to bring greater transparency to the campaign.

The additional visibility was a welcome development, coming as it did after Carlos Slim Helu, the wealthiest man in the world, announced in 2011 that he wouldn't be signing the pledge. In April, the campaign announced that twelve more families or individuals had agreed to participate. They included hedge fund manager Bill Ackman and his wife, Karen; businessman and film producer Steve Bing; Home Depot co-founder and Atlanta Falcons owner Arthur M. Blank; Canadian-American businessman Edgar M. Bronfman; hedge fund manager Glenn Dubin and his wife, Eva; Texas businessman Red McCombs and his wife, Charline; British-American venture capitalist Michael Moritz and his wife, novelist Harriet Heyman; South African-American entrepreneur Elon Musk; SAS co-founder John Sall and his wife, Ginger; Broadcom co-founder Henry Samueli and his wife, Susan; real estate developer John A. Sobrato and his wife, Susan; and MBI founder Ted Stanley and his wife, Vada.

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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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Taking Private Philanthropy Public: Eye on the Giving Pledge

August 08, 2012

(Janet Camarena is the director of the Foundation Center's San Francisco office and leads the center's Glasspockets effort.)

Pledge_wordleTwo years have passed since Warren Buffett and Bill and Melinda Gates launched the Giving Pledge, an effort to convince the world's wealthiest families and individuals to commit more than half their assets to philanthropy. Initially, four families signed the Pledge, and after two months thirty-six more had joined them. Since then, the size of the list has more than doubled, with eighty-one families or individuals having now signed on.

Given the high profile and net worth of those involved, the launch of the Giving Pledge was accompanied by much fanfare and enthusiasm. Indeed, because philanthropy is often viewed as a private, family affair by those who engage in it, one could view participation in the Giving Pledge as a sort of Public Philanthropic Offering. So now that the bell has been rung, what's next?

Because the Foundation Center's Glasspockets site focuses on philanthropic transparency, we decided earlier this year to create a new feature, Eye on the Giving Pledge, to help track the charitable activities of Giving Pledgers and highlight some of the demographic trends and giving interests of pledge participants. Things like: Who has signed the Pledge? In which industries did they make their fortunes? Where are they based? What causes do they support? "Eye on the Giving Pledge" provides a way to follow how those who have made commitments are fulfilling their pledges.

The decision by Warren Buffett and Bill and Melinda Gates to use their influence and networks to drive more dollars to philanthropy should be celebrated. In addition to the leadership they've demonstrated with the Giving Pledge itself, the Gateses also are providing an excellent example for other Pledge participants by making their family foundation the principle vehicle for their philanthropy. At the Bill & Melinda Gates Foundation Web site, the public can readily access a complete record of the foundation's grantmaking via its 990-PFs, determine whether its grantmaking is limited to pre-selected organizations, read press releases about noteworthy new grants, check out Bill Gates' annual letter detailing many of the foundation's successes (and some of its failures), and listen to a regular podcast featuring staff members sharing insights about the foundation's evolving grantmaking strategies.

Of course, many Pledgers will opt or continue to use other vehicles for their giving, vehicles that do not have the same reporting requirements as foundations. In those cases, we've done our best to capture examples of that giving from public information sources. Since we expect there will be gaps in our coverage due to the challenges inherent in tracking individual giving, we invite you to help us surface additional knowledge through an online form provided for that purpose.

With a combined net worth of roughly $400 billion, the eighty-one signatories to the Giving Pledge could end up contributing an additional $200 billion or more to charity over time. In addition to the tangible benefits of all that giving, we think it's refreshing to see some of the world's wealthiest people celebrated not just for the next deal but for their next gift -- and for publicly committing to use their wealth for the public good. Or, to put it another way, shouldn't actual giving be as celebrated as the intention to give?

-- Janet Camarena

Weekend Link Roundup (August 4-5, 2012)

August 05, 2012

London2012_goldOur weekly roundup of new and noteworthy posts from and about the nonprofit sector....

Communications/Marketing

In a guest post on the Communications Network blog, Dan Cohen and Edit Ruano offer five ideas for livening up your summer communications efforts.

  1. Brainstorm with staff on how to engage your audience/community, and then delegate the implementation of those ideas to tap into staff creativity.
  2. Program e-blasts; content could include previews of the work planned for the fall or reflections on your organization's previous accomplishments.
  3. Write (or coordinate with grantees to write) op-eds about your organization's work before heading out on vacation.
  4. Develop a schedule of pre-programmed social media content: at least one Facebook post and two or three tweets per week recommended.
  5. Host a get-together with potential partner organizations and individuals to strengthen your networks and bring a fresh perspective to the work you do.

Kivi Leroux Miller highlights the evolution of one nonprofit's annual reports -- from more than twenty pages of financial details to four pages of accomplishments. In 2009 "[i]t was a lot more 'here's all the stuff we've done' vs 'here's what we accomplished,'" Katie Bryan, of Iowa Citizens for Community Improvement, told Miller. In contrast, in 2011 "[w]e started out with the top accomplishments we had to share, then filled in images...and then worked the theme and letter around those."

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