global giving matters feb.-apr. 2007 issue 29

8/9/2019 Global Giving Matters Feb.-Apr. 2007 Issue 29

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Global Giving

MATTERS

Issue 29

February–April 2007

2 The next generation: Redefining the philanthropic landscape

10 Global Giving Round-Up

• Changemakers issues guide to social justice philanthropy for family funders

• A closer look at diaspora giving in Asia and the Pacific

• Stonesifer responds to critique of Gates foundation

• Twenty-seventh International Fundraising Congress coming in October

• World’s third wealthiest man dubious on role of philanthropy

• Giving found to activate pleasure centers in brain

• Incubating entrepreneurial models to combat global poverty

• New Canadian trust supports partnership approach to overcoming poverty

• Giving by US foundations shows double-digit growth two years in a row

• Steep climb charted in US foundations’ assets

13 Resources & Links

• Social entrepreneurs debate how to finance growth

• Give and Take: A roundup of nonprofit blogs

• Dulany discusses Global Philanthropists Circle

• A new look for Philanthropy UK

• Thinking beyond “checkbook philanthropy”

• The latest from Alliance

15 Your Ideas Wanted

In This Issue

With the coming massive inter-

generational transfer of wealth in

the United States, Baby Boomers

will pass on an estimated $40

trillion to their children over the

next 50 years. Global Giving

Matters looks at the efforts of five

young agents of social change –

“next generation philanthropists” –

who are using their wealth, time,

connections and ideas to address

issues around the world that con-

cern them. We also share insights

from an author of a new book

aimed at young people interested

in social change philanthropy and

provide a brief listing of programs

and organizations serving the

needs of young philanthropists.

Global Giving Matters presents best

practices and innovations in philanthropy and

social investment around the world. It is an

initiative of The Synergos Institute’s Global

Philanthropists Circle and the World

Economic Forum, under the direction of

Adele S. Simmons, President of the Global

Philanthropy Partnership, and Beth Cohen,

Acting Director, Global Philanthropists Circle.

Lynn Peebles is the lead writer. Rockefeller

Philanthropy Advisors provides support for

its distribution.

If you would like to subscribe to this

newsletter, to unsubscribe, or to designate

someone else in your organization to receive

it in your stead, contact us at

[email protected].

© 2007 Synergos/World Economic Forum

www.globalgivingmatters.org [email protected]

Synergos



Global Giving MATTERS


Global Giving Matters invited five young people of wealth who believe in social change to

describe their personal approach to giving. The stories of Philipp Engelhorn, Ben Goldhirsh,Kim Kreiling, Katherine Lorenz and Rebecca Winsor reflect the diverse face of today’s “next

generation” of philanthropists.

While each generation of philanthropists is shaped by the distinct societal forces of its time,

today’s 20- and 30-somethings have come of age in an era of unprecedented challenges and

opportunities.

More than ever before, the problems and issues that confront today’s young donors – poverty,

environmental degradation, conflict – are global in scope and impact. In recent years, giving

for international purposes has reached record levels, thanks to a heightened focus on global

peace and security, climate change and initiatives such as the Millennium Development Goals.

Yet global giving still represents a small percentage of all philanthropic dollars.

Today’s philanthropists are in a unique position to help fill that resource gap in thoughtful and

sustainable ways. With the coming massive intergenerational transfer of wealth in the US,

Baby Boomers will pass on an estimated $40 trillion to their children over the next 50 years.

These young people will inherit unparalleled amounts of money, along with the responsibility to

manage these philanthropic funds wisely. They will also be presented with a wealth of oppor-

tunities to apply their resources and talents in creative and effective ways to address global

challenges.

Our interviews with five young agents of social change – all of whom are members of

Synergos’ Global Philanthropists Circle – illustrate a variety of strategies for addressing the

complex global realities of their times. In their stories, you will see a fair sampling of the char-acteristics attributed to next generation members as a whole.

They are global in outlook and adept at using media and technology as a platform for connec-

tion, communication, entertainment and empowerment. Their engagement in the world is

linked to pursuing a passion, not fulfilling an obligation. They are creating new models of entre-

preneurship. Their aim is to make a difference, not to be considered a philanthropist. They are

avid social networkers but not socialites. And they are seriously concerned about climate

change and the global environment.

Also in this issue, Global Giving Matters shares the insights of Alison Goldberg, co-author of a

new book aimed at young people interested in social change philanthropy. Drawing on

research she conducted in the preparation of the book, Goldberg said this generation isalready transforming the field of philanthropy by providing new models of engagement.

Katherine Lorenz: Nutrition as a bridge to community wellbeing

“I don’t consider myself a philanthropist, because I don’t give away very much money.

What I give is time,” said Katherine Lorenz, a self-described “workaholic” and co-

founder of a nonprofit organization that partners with rural communities in Mexico to

promote better nutrition and health.

2

Feature: The next generation: Redefining thephilanthropic landscape





Puente a la Salud Comunitaria, the organization Lorenz established and now directs,

centers on an unusual entry point to community empowerment: the re-introduction of

an ancient and highly nutritious grain, amaranth, into the diet of the largely indigenous,

rural poor population of Oaxaca.

Lorenz first came to Oaxaca to explore sus-

tainable solutions to rural poverty in Latin

America as a volunteer after college. Initially

interested in women’s reproductive health,

she came across research on the nutritional

value of amaranth and decided in 2004 to

launch a nonprofit using the reintegration of

amaranth in the diet as a portal for

addressing a range of community needs.

“Getting them to try it is not hard. It’s get-

ting them to build it into their lifestyle that’s

the challenge,” said Lorenz, who now serves

as executive director of Puente. The organization’s work usually begins with the womenof the community, who do most of the cooking.They are encouraged to add amaranth to

tortillas and start family gardens. Puente also partners with health department doctors

and nurses to build trust and credibility.

Sustainable development is also a major focus of her family’s philanthropy, and at 28,

Lorenz is the first member of her generation to serve as a board member on the Cynthia

and George Mitchell Foundation, established by her grandparents. Lorenz is trying to

establish a next generation committee to bring the interests of younger family members

to the board.

As a next generation member of Synergos’ Global Philanthropists Circle, Lorenz has had

the opportunity to explore the issue of rural poverty with other young people of wealthinterested in working for social change. She recently hosted a trip to Oaxaca that gave

younger Circle members an opportunity to visit the villages where Puente works.

Participants purchased and distributed materials for greenhouses to help Puente’s rural

constituents extend the growing season for their amaranth crop.

Meanwhile, Puente is one of the few organizations working on the community education

aspects of amaranth in the diet, and Lorenz is looking at ways to replicate her organiza-

tion’s model.

While fundraising to sustain Puente’s operations continues to be one of Lorenz’s biggest

challenges, the organization recently received a large and unexpected grant from an

anonymous donor. Her vision for Puente includes “having involved donors, people whogive their time as well as their money.”

As she moves into a position to take a more active role with her own philanthropic

resources, Lorenz says, “I’d love to be a more involved donor myself.”

3

Katherine Lorenz





Kim Kreiling: Putting faith into action through small-farmer finance

“Through being involved in civil society and nonprofits, I’ve realized how empowering a

loan can be,” said Kim Kreiling, whose efforts are helping identify and fill the gaps in

funding for sustainable rural development.

Kreiling’s interest in land access for the

poor began on a school trip to Central

America where, as a teenager, she witnessed

the struggle of peasants to achieve a sustain-

able quality of life. As an adult, her work as

a fundraiser for Agros International, a faith-

based nonprofit that promotes land owner-

ship for the rural poor in Latin America,

helped hone her thinking about empowering

the poor through land tenure initiatives.

To determine how to help, Kreiling mapped

what organizations around the world were

doing to enable land access for the poor.She discovered that, apart from Agros

International, few, if any, nonprofit organizations were lending to the poor for the pur-

pose of purchasing land.

To expand access to rural development financing, Kreiling went to work for Boston-

based Ecologic Finance (soon to be called Root Capital) and helped launch the organi-

zation’s “Loans for Land Initiative.” One of the few organizations making loans to low-

income farm cooperatives around the world, Ecologic Finance was named a winner of

Fast Company magazine’s 2007 Social Capitalist awards honoring leading social entre-

preneurs.

Kreiling is now sharpening the organization’s focus on sustainable energy loans forsmall-to-medium sized enterprises in the developing world. One potential project

involves a solar-powered coffee dryer fueled by biowaste from a coffee plant. Kreiling

met with representatives of a leading US foundation in March to discuss a possible role

for Ecologic Finance in funding the technology.

Still, Kreiling wanted to do more. Sparked by a conversation with her mother, Helen L.

Hunt, Kreiling decided to research ways to leverage the family’s philanthropic resources

to serve the rural poor.

What emerged was a $1 million, donor-advised fund established last August with Calvert

Foundation. Calvert Giving Funds allows individuals and families to easily start a “per-

sonal foundation,” and then recommend socially responsible ways for their funds to beinvested.

Through her donor-advised fund, Kreiling is providing low-cost loans and grants to poor

communities in the developing world, including a $135,000 guarantee for an Ecologic

Finance loan for land to a cooperative of farmers in Nicaragua.

Wishing to share her knowledge of how to invest creatively to make a difference, Kreiling

and her family have documented the process in a report they hope can serve as a guide

for others interested in creating their own donor-advised funds.

4

Kim Kreiling





Kreiling is quick to acknowledge the role that her “community of practice” has played in

her activities. During her research, Kreiling cultivated a network of peer practitioners-her

mother and other family members, friends, work colleagues, advisors and others who

provided invaluable insights, encouragement and collaboration.

Her faith has been an important inspiration as well. Kreiling, a divinity school graduate,

is now working with graduate students at Harvard through Intervarsity Christian

Fellowship. In March, she joined a mission in New Orleans to help with clean-up and

construction work, and in May she will travel with a team to visit prisoners in Ecuador.

Kreiling’s personal blend of passion and pragmatism defies easy labeling. “I like the term

social entrepreneur that Bill Drayton popularized. We’re being entrepreneurial in how we

want to generate social change through giving and investing. I’m a small part of a global

movement to create hope and opportunity, and along the road all of our lives are being

changed.”

Ben Goldhirsh: Doing well by doing GOOD

“I feel like I’m part of a generation engaged in the effort to move our world forward,”

says Ben Goldhirsh. And with a bold multi-media experiment called GOOD, Goldhirsh is

already turning heads-and a profit-while promoting this sensibility among like-minded

18-40 year olds.

Based in Los Angeles, the GOOD venture is reaching

out to its media-savvy target audience via a film com-

pany, magazine, events division and website. Goldhirsh

funded the start-up himself, and recruited GOOD’s

staff of 25 largely from a group of school friends from

Phillips Academy and Brown University.

In his decision to launch a media venture, Goldhirsh,

26, was both inspired and challenged by the legacy of

his late father, Bernie Goldhirsh, founder of Inc., the

pioneering magazine for entrepreneurs.

“I was impressed by the role he was able to play in

entrepreneurship,” said the younger Goldhirsh. From

his father’s example, Goldhirsh said he came to recog-

nize that “media was limitless in the sense that it was a

platform. It didn’t preclude, in fact, it demanded

engagement.”

One of the ways Goldhirsh is promoting engagement is through a “Choose GOOD”

campaign. Subscribers to GOOD Magazine, now in its third issue, get to designate

which of 12 partner organizations receive their $20 subscription fee.

The campaign seeks to net 50,000 subscribers and $1 million for partners such as Teach

for America, Millennium Promise and UNICEF. Simultaneously, it is designed to build the

GOOD brand, generate buzz, and stimulate demand.To date, more than 15,000 sub-

scribers have generated around $300,000 in donations for GOOD’s nonprofit partners.

5

Ben Goldhirsh




February–April 2007 6

To appeal to a generation of avid social networkers, GOOD is also hosting a series of

events-parties, concerts and speakers-in cities across the country. “We’re creating a really

interesting crowd tied together by a shared sensibility. If we can provide content, virtual

space and physical spaces in which to meet, we’re adding value to this community,” said

Goldhirsh.

With his film division, Reason Pictures, Goldhirsh is demonstrating the financial poten-

tial of the GOOD model. Goldhirsh hit the jackpot at the 2007 Sundance Film Festival,

with his sale of Son of Ranbow, a British coming-of-age feature, to Paramount Vantage.

The film sale was the biggest deal of the year at Sundance, and the second largest in the

festival’s history.

Reason Pictures, which is expecting revenues of more than $5 million this year, currently

has four films in production and another 10 in development, a mixture of features and

documentaries that set out to entertain as well as provide socially relevant content.

“Hollywood is a hard business, but we didn’t hire professionals, we hired friends and

others with a sensibility of good and learned the business as we went along,” said

Goldhirsh.

While GOOD’s film projects are earning acclaim and financial rewards, the other divi-

sions are finding success as well, by making altruism fashionable and supporting a range

of nonprofit partners. One of the biggest payoffs may come from making GOOD suc-

ceed on its own terms. “We get to make what we want and we’re doing it for ourselves,”

said Goldhirsh.

Philipp Engelhorn: Creating media that matters

Fresh out of film school, Philipp Engelhorn is wasting no time in translating his passion

for cinema into a vehicle for social change.

Although his New York-based nonprofitorganization, Cinereach, has been active for

less than a year, it has already funded more

than a half dozen media projects by inde-

pendent filmmakers and other organizations.

And he’s working on his first in-house pro-

duction, a feature film aimed at bringing a

human face to the issue of global warming.

Originally from Germany, Engelhorn’s

global orientation is evident in the range of

projects he has chosen to support.These

include Film Aid’s participatory video project, which is putting cameras into the hands of

refugees in Kenya, so they can tell their own stories.

Chat the Planet’s web-based video series centers on four young residents of Baghdad as

they decide whether to stay or flee a city under siege. And Project Kashmir, one of four

documentaries chosen for the Sundance Lab, chronicles two American women, one

Indian, one Pakistani, who travel to Kashmir to understand the human impact of the

region’s conflict.

Philipp Engelhorn





Another of Cinereach’s major focus areas is global warming. “I’ve had this long concern

with the environment, and Al Gore’s film, An Inconvenient Truth , further fueled my

desire to do something,” Engelhorn said.Working with Caroline Baron, producer of

Capote, Cinereach is currently developing its first in-house feature, yet unnamed, that

will “tackle global warming from a non-scientific perspective that people can actually

connect with.”

While there has always been an expectation that he will use his family’s wealth for entre-

preneurial purposes, Engelhorn said his first introduction to the possibilities of strategic

giving came when he joined Synergos’ Global Philanthropists Circle.

Synergos helped in the creation of a mission and vision for Cinereach, and Engelhorn

said he has benefited from opportunities to network with other young GPC members,

particularly those involved in their own media projects.

Engelhorn said he avoids labels such as “filmanthropist,” which have come into use

recently to describe cause-oriented filmmakers. “I’m not comfortable calling myself a

philanthropist, either, because I don’t yet have the experience and knowledge it takes to

be a full-hearted philanthropist, but I’m trying!” he added.

Concerned by the lack of social activism on the part of US youth, Cinereach is starting a

new web-based campaign that Engelhorn hopes will stimulate young people to action.

“Worldwide, you still see people taking to the streets.We want to foster that activism

here, to get young people to do something, even if it’s something small.”

Rebecca Winsor: Organizing communities for change

For Rebecca Winsor, a decision to pursue her calling in India during college proved to

be transformative in ways she had never imagined.

What began with a year abroad studying art

and music near Calcutta evolved into a com-mitment to giving in India, and a deepening

of her involvement with social change phi-

lanthropy.

In India,Winsor encountered a young girl

begging in a train station.The child had

been seriously injured and required a skin

graft. Winsor took the girl in to help her find

medical care. In the process, she developed

a close relationship with an extraordinary

local doctor, and spent time in the rural hos-

pital he ran.

This experience ignited a desire to get more involved.Winsor, who was born with a cleft

palate that was corrected after birth, had noticed a high incidence of cleft lip and other

facial deformities in India. She decided to reach out to Operation Smile

(www.operationsmile.org), a nonprofit organiztion that provides medical training and

free corrective surgery to individuals with cleft lip, palate and other facial deformities.

7

Rebecca Winsor





Operation Smile was eager to have a greater presence in India.Winsor established a

linkage between the organization and the doctor she knew, making it possible for

Operation Smile India to set up operations on a larger scale.

“It was the happiest moment of my life,” said Winsor, about launching the multi-year

medical initiative.The program trains local health care workers, provides hygiene educa-

tion and incorporates the healing power of music and art. “It’s exciting because the com-

munity has taken ownership, and is leveraging its own networks of support. Pretty soon,

they’re not going to need outside help.”

Winsor, 27, an artist, has since become active in the young donor organizing movement,

encouraging other young people to give around the world.

She serves on the board of Resource Generation, a social change organization for young

people of wealth, and is active in Leverage Alliance, a new organization aimed at young

donors who are already in positions of leadership.

“I feel vested in this young donor organizing movement.There’s so much potential,” said

Winsor. “It’s such a new field, but this constituency of people is very hard to organize.

It’s like herding cats! I would like to create a unified movement around the world.”

Alison Goldberg: Tools for transforming giving for good

A new book, Creating Change Through Family Philanthropy: the Next Generation, aims to

give young people of wealth the tools they need not just to participate in giving, but to

help transform the field itself.

The book, by Alison Goldberg, Karen Pittelman and Resource Generation – a social

change organization by and for young people of wealth – draws on interviews with more

than 40 next generation members. It includes personal stories, exercises, and an exten-

sive resource guide.

The authors leave no doubt about the need for change,

arguing that many institutional practices of family phi-

lanthropy actually perpetuate, rather than ameliorate

inequalities in society.

Goldberg, 32, has served as a board member of her

family foundation for the past 10 years. She joined the

program staff of Resource Generation after the organi-

zation she created and directed, Foundations for

Change, merged with Resource Generation.

In an interview with Global Giving Matters, Goldberg

outlined some of the trends that emerged from her

research for the book and her work with Resource

Generation’s young constituents.

Although Resource Generation is focused on family

philanthropy in the United States, Goldberg noted that

“young people who are concerned about change are concerned about how little is being

given internationally. It’s all happening against a backdrop of a highly unequal society.

8

Alison Goldberg





The top 10 percent of wealth holders in the US have 70 percent of the wealth,” she said

and the disparity is “even more staggering when looked at through a global lens.”

Goldberg said she’s “hopeful about changing the paradigm in the face of inequity in

family philanthropy. It’s really exciting seeing many young people creating a whole new

range of models.”

“It’s not just about where the money is going, but how it’s being given, from opening upto include activists in grants decision-making…to proactively supporting issues through

shareholder activism and creating new partnership models with the organizations they’re

funding.”

“So far, I’ve been very excited about the response to the book,” Goldberg said. “We’re

finding more young people involved. As a conversation starter, it’s serving the purpose.”

Some young donor programs and organizations

The Global Philanthropists Circle (www.synergos.org/philanthropistscircle/ ) supports its next generation mem-

bers with activities and services that include meetings with peers on topics of interest in philanthropy and mul-

tiple occasions for interaction and learning from other generations of philanthropists within the network.The

Circle offers opportunities for members to engage first-hand with poverty-related issues and explore innovative

solutions through visits to countries in the Global South including India, Brazil and South Africa. Synergos

staffs the Circle and also provides access to a wider network of individuals with deep experience in various

aspects of international development. We also provide members with expert advice on developing their philan-

thropic strategy to increase the effectiveness and impact of their work.

Resource Generation (www.resourcegeneration.org) works with young people with financial wealth to effect

progressive social change through the creative, responsible and strategic use of financial and other resources. It

promotes innovative ways for young people with wealth to align their personal values and political vision with

their financial resources, and strives to strengthen cross-class alliances with people and organizations workingfor social and economic justice.

The Leverage Alliance (www.leval.org) is a recently established community of global young leaders with sub-

stantial financial resources who are seeking to support each other and learn together through strategic life and

career decision-making.

Emerging Practitioners in Philanthropy (www.epip.org) is a national network of young professionals involved in

organized philanthropy. Its mission is to support and strengthen the next generation of grantmakers in order to

advance social justice philanthropy.

Next Generation Philanthropy, a new program to help young inheritors of family businesses to increase the

impact of their charitable giving, was launched by the UK-based Institute for Philanthropy (www.institutefor-

philanthropy.org.uk) and the Institute for Family Business. A two-year program that gives young people based

in the UK and internationally tools for more effective grantmaking.

A pilot of the young funder learning opportunity GENerous explorATIONS was launched in New York in March

2007. Offered by Rockefeller Philanthropy Advisors (www.rockpa.org) in collaboration with Resource

Generation, 21/64 and the North Star Fund. Participants in this invitation-only program receive an overview of

social change philanthropy and visit top nonprofit organizations in New York City to better understand oppor-

tunities for strategic grantmaking.





Global Giving Roundup

Overviews of best

practices aroundthe world and

links to learn more

about them

Links to websites with

more details are available

at the online edition of

Global Giving Matters at

www.globalgivingmatters.org

Changemakers issues guide to social justice philanthropy for family funders

A new publication by Changemakers (www.changemakers.org) aims to help familyfoundations strengthen their commitment to social change philanthropy. “There are

more than 30,000 family foundations in the US, moving approximately $14 billion each

year,” said Stephanie Yang, author of the guidebook.Yang said the publication would fill

the existing gap in resources for families that wish to support community-led efforts for

social justice. Released at the Council on Foundation’s annual family foundations confer-

ence in February, Legacy and Innovation:A Guidebook for Families on Social Change

Philanthropy provides practical tools and resources to help families start a dialogue

about giving. Each chapter features interviews with family funders who describe how

they have translated their values into philanthropic action. A separate chapter takes up

the next generation’s role in advancing the family’s social change agenda. Changemakers

is a national public foundation that supports community-based philanthropy for socialchange. For more information, contact Yang at [email protected].

A closer look at diaspora giving in Asia and the Pacific

Despite its growing significance, the development of diaspora philanthropy – charitable

giving by migrants to their communities of origin – is not well documented. In an effort

to expand the knowledge base on this rapidly growing phenomenon, the Asia Pacific

Philanthropy Consortium (APPC – www.asiapacificphilanthropy.org) has chosen dias-

pora philanthropy as the central theme of its upcoming biannual conference in October,

2007, in Hanoi,Vietnam.The conference – “Diaspora Giving: Agents of Change in Asia

Pacific Communities?” – will explore the nature and scope of diaspora giving in the

region, particularly in countries with substantial communities of migrant workers such as

China, India, Philippines,Vietnam, Bangladesh, Indonesia and Pakistan. As an out-

growth of the conference, the APPC plans to produce a best practices casebook on effec-

tive giving by migrant communities. Contact Alexie Ferreria at alexie@

asiapacificphilanthropy.org.

Stonesifer responds to critique of Gates foundation

Writing inThe Chronicle of Philanthropy’s March 8 issue, columnist Pablo Eisenberg

issued a critique of the Bill & Melinda Gates Foundation, “Gates: Role Model in Need of

Remodeling,” evaluating its performance since Warren Buffett announced that he would

give the bulk of his fortune to the Seattle-based philanthropy. Patty Stonesifer, the foun-dation’s chief executive, responded to Eisenberg’s challenge on a range of issues in The

Chronicle’s March 27 edition. On the subject of the foundation’s transparency, Stonesifer

acknowledged that it was “more difficult than it should be” to get a get clear view of the

organization’s work. In view of the foundation’s recent rapid growth, “communications

have to grow to keep up,” she said, adding that a web-site redesign was in the works. As

for Eisenberg’s assertion that the foundation’s three-person board is too small to ensure

a diversity of views in decision making, Stonesifer said the trustees (Bill Gates, Melinda





French Gates and Buffett) believed that “the structure we have in place is what makes

sense for this institution, given their interest in ensuring that we use these first years to

focus our work.” She noted that more than half the 46 members of the new global devel-

opment team had lived in the developing world, and the foundation was creating advi-

sory panels in each program area. In response to the recent public outcry about the

foundation’s lack of a mission-related investment policy, Stonesifer stated her wish that

“we’d more clearly articulated our investment policy from the beginning.” Regardingcorporate behavior, Stonesifer said Bill Gates preferred to “publicly encourage good

behavior and work behind the scenes to discourage bad behavior.We believe that for us,

this is the most effective way.”

In a wide-ranging interview in January with Washington, DC-based radio talk show host

Diane Rehm, Stonesifer elaborated on some of the same issues, discussing the values and

priorities of the Bill & Melinda Gates Foundation’s grantmaking in a period of rapid

growth. Audio and transcripts of the broadcast are available from Washington’s WAMU-

FM at wamu.org/programs/dr/07/01/30.php.

Twenty-seventh International Fundraising Congress coming in OctoberThe Resource Alliance’s 2007 International Fundraising Congress will take place in

Holland October 23-26. Regarded as the world’s leading education and training confer-

ence on fundraising, this internationally diverse event will offer more than 100 sessions

offering the latest advice from the experts and abundant networking opportunities. Last

year’s sell-out event attracted 900 participants from 57 countries. For more information,

contact [email protected]. The Resource Alliance (www.resource-alliance.org) is

a UK charity whose mission is to build the fundraising capabilities of the nonprofit

sector worldwide.

World’s third wealthiest man dubious on role of philanthropy

At the same time that he announced a new $450 million foundation for health care and

research, Mexican telecommunications magnate and philanthropist Carlos Slim said

businessmen can do more good by building solid companies than by “going around like

Santa Claus,” donating money. Slim is the world’s third wealthiest man, with a fortune

that grew by $19 billion last year, the largest wealth gain by anyone in the past decade,

according to Forbes. At a news conference in Mexico City, Slim said he had no interest

in competing with his North American counterparts, Bill Gates and Warren Buffett, who

lead him on the Forbes magazine list of the world’s richest and have decided to give away

much of their fortune during their lifetimes. “Poverty isn’t solved by donations,” main-

tained Slim, whose charitable foundations have a reported $4 billion in endowments, but

whose giving represents a smaller slice of his fortune than that of Gates or Buffett.

Despite his philanthropic activities, Slim’s fortune has come under criticism in Mexico,

where some people charge that his Telmex company’s near monopoly in the fixed-line

telephone market has led to high prices. (Associated Press, March 13, 2007)

Giving found to activate pleasure centers in brain

Philanthropists, take note: the warm glow that often accompanies giving may have a

physiological basis, according to recent research. Scientists at the National Institute of

Neurological Disorders and Stroke, in Bethesda, Maryland, have identified two separate

11





areas of the brain that are activated when individuals choose to contribute money to a

worthy cause.The findings were based on magnetic resonance imaging of subjects who

made the decision to give away money to charity. Giving was found to stimulate the

mesolimbic area of the brain, stimulating the release of dopamine, which causes pleasur-

able or euphoric sensations. Also affected was the subgenual region of the brain, associ-

ated with the release of the hormone oxytocin, which plays a key role in increasing trust

and cooperation in humans. “Something in our brains shaped by evolution allows us tofeel joy when we do good things,” observed Dr. Jorge Moll, the neurologist leading the

research. “It is a biological force and we should not ignore it in promoting social wel-

fare.” (Economist , October 14 2006)

Incubating entrepreneurial models to combat global poverty

Over the past six years, the Wharton Societal Wealth Program (WSWP –

www.wep.wharton.upenn.edu/research/societalWealth.html) has worked quietly behind

the scenes to find innovative business solutions to tough global issues. “We look for

messy problems that are seemingly intractable,” said James Thompson, who cofounded

WSWP in 2001 with Ian McMillan, director of the Wharton School’s Sol C. Snider

Entrepreneurial Research Center. WSWP aims to help build for-profit businesses that

alleviate societal ills. Its projects in sub-Saharan Africa include health care, with a focus

on HIV/AIDS, small-scale agricultural production, animal feed production, and aquacul-

ture. One of its ventures is the Khaya Cookie Company (www.khayacookies.com),

founded by former Wall Street investment banker Alicia Polak, which employs local men

and women from the township of Khayelitsha in South Africa. In collaboration with

WSWP, Polak hopes to replicate the business model in disadvantaged areas in the

United States.WSWP does not take an equity stake in start-ups but donates “seed

funding” in the form of research and development and travel expenses. It is supported

by private philanthropic funding and also draws on the academic resources of the

Wharton School and University of Pennsylvania. (Financial Times, February 23, 2007)

New Canadian trust supports partnership approach to overcoming poverty

The Samuel Family Foundation is supporting efforts to reduce poverty and other social

problems around the world by providing $250,000 to Synergos Canada, a newly organ-

ized trust based in Toronto. Synergos Canada is affiliated with The Synergos Institute.

The gift will support Synergos’ efforts to convene and learn from “multi-stakeholder

partnerships” – initiatives that bring different sectors of society together to create sys-

temic solutions to specific problems. “In most parts of the world, there is no lack of

interest in overcoming poverty. But what’s missing are the means to enable very different

stakeholders to work together effectively. Without that kind of partnership, finding real

solutions is impossible,” said Kim Samuel Johnson, President of the Samuel FamilyFoundation and a Trustee of Synergos Canada, in announcing the gift. Synergos is sup-

porting a variety of such partnership approaches to address societal problems around the

world: in India, to combat child malnutrition; in Canada, where aboriginal youth are the

focus; and in Namibia, where partners are examining way to improve leadership capacity

for public health. Another partnership, the Sustainable Food Lab, is searching for strate-

gies to make food systems more economically, environmentally and socially sustainable.

In addition to this new line of international partnerships, the Samuel Family Foundation

has a long history of supporting the arts, healthcare and education in Canada.

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Giving by US foundations shows double-digit growth two years in a row

Giving by the nation’s 71,000 grantmaking foundations rose to $40.7 billion in 2006,

according to Foundation Growth and Giving Estimates: Current Outlook (2007 Edition),

released April 3 by the Foundation Center (www.foundationcenter.org) . This 11.7 % gain

followed a 14.3 % increase in 2005. US foundations last reported consecutive years of

double-digit growth in giving in the period 1996 to 2001. “The foundation community

is both larger and more diverse than was true in the past, which makes its giving lesspredictable,” said Sara Engelhardt, president of the Foundation Center. Independent

and family foundations, accounting for nine out of ten foundations, raised their giving by

10.3 %, their first double-digit increase since 2001. Community foundations reported

the fastest growth in giving, up 13.2 %. Principal factors driving the growth were strong

gains in the stock market and a higher level of new foundation establishment than in the

early 2000s. Other factors include elevated payout rates due to greater numbers of “pass-

through” foundations and the establishment of operating foundations by pharmaceutical

manufacturers. Nearly 60% of surveyed foundations expect their giving to increase in

2007, and overall funding will likely continue to grow at a double-digit pace, according

to the survey.

Steep climb charted in US foundations’ assets

Buoyed by the rise in the stock market and other successful investments, many of the

wealthiest US foundations plan to increase their giving in 2007, according to the find-

ings of a new survey by The Chronicle of Philanthropy (www.philanthropy.com). The

Chronicle’s annual survey of the nation’s largest private foundations is based on the

financial information of 188 US grantmaking organizations. Of the 57 philanthropies

that estimated their giving for 2007, 37 said grants would increase in 2007. Among other

data presented were giving trends at big foundations, a sampling of large grants in 2006,

and how much foundations spent on program related investments.

13

Activities, web-

sites and other

cutting-edge

information for

global givers

Links to websites with

more details are available

at the online edition of

Global Giving Matters at

www.globalgivingmatters.org

Resources & Links

Social entrepreneurs debate how to finance growth

Couldn’t make it to the 2007 Skoll World Forum on Social Entrepreneurship? Don’t

worry, video broadcasts of all sessions of the conference are available at www.

skollfoundation.org. The event, held March 27-29 at Oxford University’s Said Business

School, drew nonprofit leaders, business people, scholars and policy makers from 40

countries, who focused on the need for more money to finance growth in the field.

Give and Take: A roundup of nonprofit blogs

Give and Take (www.philanthropy.com/giveandtake/ ), a new service of The Chronicle of

Philanthropy online, offers a roundup of the best postings appearing on blogs about the

nonprofit world. Surveying dozens of sites on philanthropic giving, fundraising, and

management of nonprofit organizations, Give and Take is updated regularly throughout

the day. A sampling of recent postings included a discussion of innovative online social-

action videos and recommended reading for people who seek inspiration for their





antipoverty work. A February 12, 2007 posting in Fundraising for Nonprofits

(www.gayleroberts.com), one of the blogs covered in Give and Take, featured Synergos

founder Peggy Dulany, one of the thought leaders highlighted in The World We Want , the

recent book by Peter Karoff. Karoff is chairman and founder of The Philanthropic

Initiative, Inc. and a Synergos board member.

Dulany discusses Global Philanthropists CircleIn the November/December 2006 issue of Contribute magazine (www.

contributemedia.com), Peggy Dulany, the great-granddaughter of John D. Rockefeller,

Sr., discussed the Global Philanthropists Circle, an organization that she and her father,

David Rockefeller, co-founded five years ago to catalyze giving by 70 families in 21

countries. Dulany noted that the Circle’s offers a unique, multi-generational, multi-

country space where philanthropists can meet and learn from each other.The Global

Philanthropists Circle is staffed by The Synergos Institute, the nonprofit organization

founded 20 years ago by Dulany to develop effective, sustainable, and locally-based solu-

tions to poverty and inequity, particularly in Africa, Asia, and Latin America.

A new look for Philanthropy UK

With its March 2007 issue, Philanthropy UK (www.philanthropyuk.org) has launched an

updated format.The new look is part of a rebranding effort, which editor Susan

Mackenzie said reflects an increase in activity in British philanthropy since the publica-

tion was founded in 2001.This includes a surge of interest in giving by individuals,

matched by a growing infrastructure to support it, more media coverage of the field and

a renewed commitment by the British government to support charitable giving.

Philanthropy UK , an initiative of the Association of Charitable Foundations, aims to

inspire new givers, share knowledge and best practices with all those interested in giving,

and connect givers to charities, networks and sources of advice and information.

Thinking beyond “checkbook philanthropy”

In a March 18 article, the New York Times examines the growing interest in strategic

planning for charitable gifts and the role of support services, such as the Global

Philanthropists Circle, in helping philanthropists give effectively. Donors who wish to

give strategically are turning to a range of education sources, including programs such as

The Philanthropy Workshop West (www.tpwwest.org) created by the William and Flora

Hewlett Foundation, the TOSA Foundation and The Rockefeller Foundation. “When you

want your money to grow, you go to your banker; for taxes, you go to your accountant.

When you want the most impact for your philanthropy, you also need an expert to help

you,” said Juliette Gimon, a family board member of the Hewlett Foundation, who

added that her own participation in TPW West had helped her understand a range of

giving strategies. Exchanging ideas with other donors can offer additional types of

learning opportunities, both formal and informal, said Gimon, who is also a member of

the Global Philanthropists Circle and serves on Synergos’ board.

14





The latest from Alliance

The June 2007 issue of Alliance magazine (www.alliancemagazine.org) will have a spe-

cial feature on the emerging challenges of global philanthropy, with Peter Laugharn of

the Bernard van Leer Foundation as one of the guest editors. In the March 2007 issue

on “Philanthrocapitalism,” Alliance provided snapshots of the face of new philanthropy

around the world. An article on the philanthropic landscape in South Africa noted that a

handful of newly wealthy black businessmen have started corporate foundations,including the Mvela Trust of mining executive Tokyo Sexwale. Another prominent busi-

nessman, Patrice Motsepe, has a newly established family trust that he plans to play a

significant role in directing. Both men are members of Synergos’ Global Philanthropists

Circle. Another Circle member, Hylton Appelbaum, executive trustee of the Donald

Gordon Foundation, is providing leadership through his use of business acumen to guide

family philanthropy in innovative directions in South Africa.

15

Global Giving Matters aims to present information on best practices and innovations in

philanthropy and social investment around the world.We encourage you to send us:

• Ideas about issues or people you would like to learn more about

• Examples of your own philanthropy

• Comments about this issue.

Write to us at [email protected].

Global Giving Matters does not present solicitations of support for particular

initiatives or organizations.

Your Ideas Wanted

The World Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandtel +41 (22) 869-1212fax +41 (22) 786-2744www.weforum.org

The Synergos Institute51 Madison Avenue21st FloorNew York, NY 10010USAtel +1 212-447-8111fax +1 212-447-8119www.synergos.org

Rockefeller Philanthropy Advisor437 Madison AvenueNew York, NY 10022-7001USAtel +1 212-812-4330fax + 1 -212-812-4335www.rockpa.org

global giving matters feb.-apr. 2007 issue 29

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