Posts Tagged ‘philanthropy’

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A Microfinance Company’s Surprise Shutdown

Tuesday, July 13th, 2010

The recent downsizing of one of the world’s largest microfinance companies raises the eyebrows of its staff and supporters…

  • Unitus, a Seattle based microfinance NGO, laid off its entire staff last week despite recent claims of overwhelming success in the field.
  • The company’s unprecedented announcement raised confusion among its staff and supporters. Experts speculate whether or not the decision was a conscious act to preserve Unitus’ philanthropic capital, or whether it cloaks more serious problems within the company.
  • In recent months, experts have become increasingly skeptical about the effectiveness of microfinance. Some are concerned that Unitus’ change in direction is actually a product of a shaky operation that was on the brink of collapsing.

Best Quote

“Microfinance has great promise and a fantastic mission. The question on everybody’s mind is, does it work?” – Deyan Vitanov, Chief Executive, Philanthropedia

Charitable Foundations Finally Looking Up

Thursday, July 8th, 2010

Finally, some good news about philanthropy in the wake of the financial crisis!

  • Endowments for charitable institutions grew steadily last year, rebounding from the sharp declines of 2008.
  • Despite the rebound, many foundations and charities have still cut back on spending and giving.
  • Most foundations (55%) gave less in 2009, but a few (16%) gave more.

Facts and Figures

  • Hundreds of grant makers saw their investments increase by about 20% this year (compared to a 26% drop in 2008).
  • Charities and foundations carry a median debt of over $20 million.
  • 38% of charities spent less in 2009, 20% spent more.

Lower Charitable Tax Deductions Reduce Incentive To Give

Tuesday, July 6th, 2010

A proposal worries nonprofits as lower charitable tax deductions might keep donors from giving the big bucks.
  • Nonprofits in New York City are anxious that a state budget proposal will be implemented that greatly reduces tax deductions for charitable donations.
  • The proposal is meant to bolster New York’s sluggish economy by allowing the 3,500 New Yorkers who earn more than $10 million a year to deduct only 25% of their charitable contributions – instead of the 50% it is now.
  • If the proposal passes, it could generate up to $100 billion for the state, but it will also greatly decrease the incentive for high-income New Yorkers to donate to charities.

Best Quote

“Any proposal that could possibly decrease private giving is going to be a disaster for all nonprofits in New York City and throughout the state. The state cannot balance the budget on the backs of those in need.” – Michael Stoller, Executive Director, Human Services Council

The Rocky Relationship Between Philanthropy And Government

Tuesday, June 29th, 2010

The federal government and philanthropic programs have always struggled to get along, but they’re trying to put their differences aside to help programs grow.

  • The government sometimes has a hard time following through on promised funding to nonprofits. For example, $50 million that might have been allocated to Teach for America’s 2011 budget met calamity when political pressure cut the funds completely.
  • Program funding is moving away from direct government disbursements and toward foundations with grant applications and matching programs.
  • As budgets are expected to tighten, the relationship between philanthropy and the government will only become more complicated.

Facts & Figures

  • Teach for America received $18 million in the 2010 federal budget.
  • The Investing in Innovation Fund, run by the Department of Innovation, gives up to $50 million to education programs that are able to match 20% of the grant with private money.
  • 12 foundations have pledged over $500 million that they will use to either match winners or help programs that do not win government money from the fund.

Best Quote

“Partnership with government is going to continue to be hard. We should pursue it but with a sober recognition there will be curves ahead on the road that you can’t see coming.” – David Gergen, Professor at Harvard’s Kennedy School of Government

Gates And Buffett Encourage Fellow Billionaires To Give It Away

Wednesday, June 23rd, 2010

For the past year, Bill Gates and Warren Buffett have been campaigning to get other American billionaires to donate at least half of their fortunes to charity.

  • People are asked to donate their money either during their lifetime or after death.
  • Most of the money raised by charities comes from normal people donating $5-$50 at a time.
  • Gates and Buffett encourage large donors to publicly pledge and explain their decision.

Facts and Figures

  • Buffett donated 99% of his $46 billion fortune to charity in 2006.
  • Gates and Buffett believe they can generate $600 billion through these pledges.
  • American philanthropies received $300 billion in donations in 2009.
  • Only 17 people on the Forbes’s 400 wealthiest people in America are also on the Chronicle of Philanthropy’s list of the most generous American donors.

Best Quote

“The pledge is a moral commitment to give, not a legal contract. It does not involve pooling money or supporting a particular set of causes or organizations.” – A written statement by Bill Gates, Co-Founder of Microsoft Corporation and Warren Buffett, chairmenn and CEO of Berkshire Hathaway Inc.

Discount Philanthropy Doubles Your Donation

Friday, June 4th, 2010

Deal-of-the-day website Groupon.com makes good by making deals to donate.

  • Groupon, a website which offers no-strings-attached regional discounts on everything from restaurants to salons to cleaning services, has partnered with DonorsChoose.org to offer Groupon users half priced donations.
  • DonorsChoose.org allows public school teachers to describe materials they need or projects they’d like to do, and donors choose to support the ones they like.
  • The way it works is The Pershing Square Foundation matches what each Groupon donor contributes, making a $50 contribution worth $100.
  • DonorsChoose hopes to raise $1 million via the partnership with Groupon.

Best Quote

“I hope that what we’re doing with Groupon will show people that somebody who only has $10 to spare will be a philanthropist.” – Charles Best, Founder of DonorsChoose.org.

So you want your name on the side of that building, huh?

Tuesday, March 2nd, 2010

People have all sorts of motivations for giving money to charitable causes – sometimes it’s as simple as wanting to announce to the world that you supported a new hospital wing by having your name on that building. In order for a building to sport your name, it usually requires a charitable gift in the hundreds of thousands, if not millions. Of course, every organization has their own policies when it comes to naming stuff after big donors (as do the donors themselves!) – there are no hard and fast rules. But donors giving at that level are often heavily involved with the organization, for example serving on the board of directors, or at least having frequent fancy lunches with the CEO or Executive Director of the organization.

The Secret Society for Creative Philanthropy

Tuesday, February 9th, 2010

Philanthropy obviously isn’t just about huge tax breaks, benefit galas, and getting your name on that new science center. Caring for other people can happen in all kinds of wonderful ways…

  • Courtney Martin, a 30-year-old writer in Brooklyn, was suddenly faced with a large sum of money. So she took $1,000, distributed it evenly among 10 people, and asked each participant to give the money away that month.
  • These small-scale philanthropists formed the Secret Society for Creative Philanthropy, and the variety of ways (traditional and decidedly non-traditional) they spread their $100 was an exercise in thoughtful giving.
  • In a demonstration of good will inspiring more good will, several participants in Ms. Martin’s project decided to add an additional $100 of their own to the $100 they were supposed to give away.

Facts & Figures

  • The Secret Society for Creative Philanthropy is in its fourth year, and inducted 16 members this year.
  • Some of this year’s donation projects: Converted the money into 10,000 pennies to leave on sidewalks around the country, head-side-up; Anonymously tipped their favorite drugstore cashier; Donated to nonprofits working in Haiti; Bought a dish for a friend who was instructed to regift it; Converted NYC children’s writing into bound books; Tipped the bartender exceptionally well; Handed the cash to a local woman who scavenges for bottles and cans to turn in for their deposit value.

Can we do this thing on an installment plan?

Friday, January 8th, 2010

Maybe you like the idea of supporting your favorite cause on a regular basis, but you don’t want the hassle of sending them a check every four weeks. Luckily, some organizations have taken this complaint into consideration. With recurring donations, you can make sure your charity of choice gets a steady flow of aid without constantly having to remember to shell out the cash.

Recurring donations can be set up over the Internet, and they just require a credit card number, an email account, and a billing address. You select a charity and enter the amount you want to give each month (which can be changed or canceled at any time) and that amount is charged to your card. If you choose to give money to an organization with a set monetary goal and that goal is reached (i.e., the organization doesn’t need donations anymore), you’ll receive a notification via email, and you can select a new charity if you wish. What’s more, with recurring donations you set up an account where an online record is kept of all your transactions to date, so it’s simple to find appropriate documentation when you’re applying for tax deductions.

So if you have one favorite charity and you just want to keep sending your money there, recurring donations can be a quick, easy, and convenient way to keep giving.

Size Isn’t What Matters In Philanthropy

Monday, November 23rd, 2009

While celebrity philanthropists tend to dominate the headlines, charities are waking up to the importance of cultivating a base of modest givers.

  • Many organizations are responding to the recession by casting a wider net for more donors who can give smaller amounts.
  • Fidelity Investments, which houses the largest pool of donor-advised funds, used to require all outgoing donations be at least $100. A year ago they dropped the minimum to $50.
  • Small grants have produced some of the more important success stories, including the $96,691 that the Ford Foundation gave to Mohammed Yunus to found the Grameen Bank (which specializes in providing financial services, including microcredit, to impoverished people in Bangladesh).

Facts & Figures

  • March of Dimes recently raised $6 million at Kmart checkout lines, where shoppers were asked to add a manageable $1 donation to their purchase.
  • Global Giving, an online fundraising organization, has raised $22 million since it started in 2002, with an average donation of just $54.
  • After the disastrous Southeast Asian tsunami in 2004, Americans gave $2.78 billion in aid. The median gift was $50; the average gift was $135.

Best Quote

“We are deluded by the attention paid to the large contributors in our country. Small checks coming through the mail are the bread and butter for most organizations.” – Wendy Smith, Author of Give a Little: How Your Small Donations Can Transform the World

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