Vol. 6, Issue 36
   August 29, 2000

Gates Foundation Grant to Improve Drug Access in Developing World

Because of budget constraints and poor infrastructure, hundreds of millions of people in developing countries do not currently have access to even basic essential drugs and vaccines.

"Worldwide, millions of adults and children die each year from diseases that could have been treated or prevented if effective and affordable drugs and vaccines had been available and used properly," said Dr. Ron O'Connor, CEO of MSH. "We are grateful to the Bill & Melinda Gates Foundation for giving us this opportunity to demonstrate that local-level, public-private collaboration can significantly increase access and equity."

Over the next five years, MSH will work to develop and test models of public- and private-sector collaboration to improve access in developing countries. MSH will also provide technical support to global initiatives supported by the Bill & Melinda Gates Foundation that are developing new drugs and vaccines for priority diseases, such as HIV/AIDS, tuberculosis, and malaria.

"Management Sciences for Health Receives $29.9 Million Grant From the Bill & Melinda Gates Foundation." Management Sciences for Health News Release 9/5/2000.

FC003609

NCAA Foundation Receives $2.5 Million Grant to Fund Scholarships

"The NCAA has a strong tradition of emphasizing the importance of increasing graduation rates for student-athletes at all of its member institutions," said Cedric W. Dempsey, NCAA president. "We are pleased to have a tangible form of recognition for colleges and universities that are achieving outstanding graduation rates. The NCAA's top priority is to ensure that student-athletes receive high-quality education. This awards program will focus on completing that education."

The scholarship program, to be known as the USA TODAY-NCAA Foundation Academic Achievement Award, is the only national awards program of its kind. Nine scholarships will be awarded annually totaling $250,000 per year for the next five years. Administrators at the winning colleges and universities will determine the best way to use the scholarship money, such as awarding it to one or more students or funding programs. The NCAA's 972 member schools in Divisions I, II, and III will be eligible to apply for the scholarships. Competition for the award will begin this 2000-2001 academic year.

The NCAA Foundation was founded in 1988 to generate funds through private gifts in support of programs that enable student-athletes to participate fully in the college community, to achieve successful academic and athletic experiences, and to prepare student-athletes to become effective citizens and productive contributors to society.

"NCAA Foundation Receives $2.5 Million From USA Today to Honor Universities With Highest Graduation Rates." NCAA Press Release 8/31/2000.

FC003608

West Foundation Gives $1 Million for Women's Literacy

The gift, to be made over the next five years, will enable Laubach to award direct grants to their grassroots partner programs in Asia, Africa, Latin America, and the Middle East. Laubach anticipates that 400,000 poor women will gain literacy skills through the five-year campaign.

In addition to supporting adult literacy in the poorest regions of the world, the West Foundation also aids international initiatives that improve health and medical treatment, both of which are achieved by the Women in Literacy: Women in Action campaign.

"Women in Literacy: Women in Action is so wide-ranging in scope that we think it has a strong chance of making a lasting impact," commented Emily A. West, executive director of the West Foundation.

Laubach Literacy, a nonprofit educational corporation dedicated to helping adults of all ages learn reading, writing, math, and problem-solving skills, has 1,100 member programs throughout the United States and 69 partner programs in 36 developing countries.

"Laubach Literacy, World's Largest Literacy Group, Receives $1 Million Gift to Aid Women's Literacy Throughout World." Laubach Literacy Press Release 7/25/2000.

FC003607

Charity Watchdog Groups to Merge

The two nonprofit groups, both of which monitor charities and provide donor education services, expect to complete a binding agreement and implementation plan within the next few months. The final plan will require formal approval by the New York Supreme Court and the District of Columbia.

"For many years now, PAS and NCIB have performed similar charity watchdog and donor education roles, evaluated many of the same charities, and approached several of the same funders for financial support," said Candace McIlhenny, executive director and CEO of the CBBB Foundation. "With the merger, we'll be able to build on each other's strengths, recognize economies of scale, initiate new programs to meet the needs of today's donors, and address emerging accountability issues that confront the charitable community."

The merged entity, still to be named, will be based in Arlington, Virginia. NCIB and CBBBF will mutually agree on the new directors to serve on the board of the merged organization. New directors are expected to include several NCIB board members, nonprofit sector representatives, and BBB system constituents.

Commented William P. Massey, former president of NCIB, "We are excited about the merger because of our respect for the work of PAS and because of our mutual commitment to the philanthropic public. Linking distinguishing elements of each trusted organization will expand our capacity to serve donors with meaningful information about a growing number of charities."

"Pre-eminent Charity Watchdogs to Merge." Press Release 8/30/2000.

FC003606

Cisco Systems Hires On-Site Philanthropy Counselor

"This is a Silicon Valley way to bring philanthropy to the employees as opposed to hoping they find this information on their own," said Peter Hero, president of Community Foundation Silicon Valley. "Just as some companies provide counseling on financial planning, this will be an opportunity to provide advice on sound philanthropic strategies."

Hero, who originally proposed the idea, is currently looking for someone to fill the position. The full-time counselor, who will officially be employed by Community Foundation Silicon Valley, will hold one-on-one meetings with Cisco employees, providing them with information on charities and connecting them with co-workers interested in similar causes. Cisco will pay the foundation a fee for the service.

"It is so wise," commented Dorothy Ridings, president of the Council on Foundations in Washington, D.C. "We think of employee benefits as being a very static set of things. This is the sort of thing that has enormous appeal to exactly the kind of employees that Cisco has."

FCnote: The Cisco Systems Foundation (CA) had assets of $65,370,504 and made grants totaling $7,675,024 in the fiscal year ending 7/31/99.

FCnote: The Community Foundation Silicon Valley (CA) had assets of $290,030,525 and made grants totaling $26,953,959 in the fiscal year ending 6/30/99.

Boudreau, John. "Counselor to Help Cisco Workers Donate a Piece of Their Prosperity." San Jose Mercury News 8/27/2000.

FC003594

Berkeley Business School to Offer Course on Philanthropy

"Or, [what would you do] if you were rich enough when you were older so that you no longer needed money for your children's education, or more homes, or money for travel, or more savings for retirement?" asks Van Loo, an associate professor of business administration.

Designed for future philanthropists, the 10-session, one- unit course offers an overview of the history of philanthropy and various cultural approaches to giving, and provides practical information on donating money and time. The class looks at what standards to apply when choosing among charities, and how to decide if support should be in the form of volunteering, cash, gifts of stock, or pre-IPO stock options. The course also helps teach students the plusses and minuses of a giving through a donor-designated trust, establishing a new charitable foundation, or starting one's own nonprofit agency.

"The need in the state of California for this kind of information is so great," said Van Loo, referring to the state's explosion in high-tech wealth.

"UC Berkeley Teaching High-Tech Era Students How to Give Their Money Away, Run Nonprofit Organizations." UC Berkeley Press Release 8/24/2000.

FC003595

Kiplinger's Personal Finance Magazine Reports on New Philanthropy

According to the magazine, the country's new wave of donors, many with freshly minted fortunes from their own business ventures, are deeply interested in applying their investment and entrepreneurial skills to their charitable projects.

The demand for hands-on giving opportunities has given rise to more personalized funding methods. When Mike Valder, a trial lawyer in Phoenix, and his wife wanted to help a troubled downtown community, for example, they felt that traditional philanthropy wouldn't do enough to address the "root cause of social and economic injustice." So the couple established the Arizona Social Change Fund at the Arizona Community Foundation. The fund raises money for grassroots organizations through a "giving circle," a group of donors who increase the power of their donations by joining forces with other like-minded philanthropists.

Other giving vehicles popular with new donors include donor-advised funds, which allow individuals to retain a say in how their gifts to charitable organizations are used, and charitable remainder trusts, a traditional giving tool whose use is on the increase among young philanthropists.

FCnote: The Arizona Community Foundation (AZ) had assets of $197,511,000 and made grants totaling $8,176,886 in the year ending 12/31/98.

Roha, Ronaleen R. "Charity Gets Personal." Kiplinger's Personal Finance Magazine, September 2000.

FC003596

Arizona Reports Growing Number of Nonprofits

The Arizona State University Nonprofit Management Institute report, which examined factors including the rate of city growth, government aid, the outcomes of United Way campaigns, and the number of nonprofit technology incubators and fundraisers, found other top cities to be Chicago, Los Angeles, Minneapolis, New York, Orlando, Seattle, Austin, Indianapolis, and Washington.

Statistics from the Arizona Corporation Commission show that since the end of fiscal year 1999, nearly 2,000 new nonprofits had registered in Phoenix. As of July 31, the number of nonprofits in the city had reached 25,627.

Herb Paine, a nonprofit consultant who has worked for the Valley of the Sun United Way for the past three years, cautions that despite its high rating, Phoenix still has a long way to go in terms of funding for social improvement. Lack of depth in the philanthropic community and a government disinterested in supporting social causes are just two of the problems Paine mentions. "I've worked with a lot of nonprofits and their struggle right now is not necessarily growth but survival," says Paine.

Nonprofit experts also worry that charitable services are not keeping pace with the state's booming economy. While the rate of nonprofit growth is encouraging, voluntarism may be on the decline.

Balzer, Stephanie. "Number of Nonprofits at All-Time High." Phoenix Business Journal 8/14/2000.

FC003597

Colorado Entrepreneurs Invest in Charity

In both Boulder County and Denver, tech entrepreneurs have established nonprofit groups modeled on Social Venture Partners (SVP), a Seattle-based organization that brings together entrepreneurs and corporate executives to donate money, time, and management expertise to local charities. The new Colorado groups are among at least seven organizations across the U.S. that have modeled their work on that of SVP Seattle.

SVP Boulder County, which will hold its first formal meeting to decide its donor focus on September 6, already has 23 members, including Andrew Currie, founder of MessageMedia and Jared Polis, founder of BlueMountain.com. The members will each contribute $5,000 a year to the organization for the next three years.

SVP Boulder County is organized under the auspices of the Community Foundation Serving Boulder County. SVP Denver is similarly connected to the Denver Foundation.

Established several months ago, SVP Denver has 60 members who will each contribute $1,000 a year for the next three years. The group currently has a $115,000 fund from membership contributions and other gifts.

Hudson, Kris. "Entrepreneurs Back Charities." Denver Rocky Mountain News 8/29/2000.

FC003598

National Semiconductor Corporation Establishes Foundation

The foundation's first grant — a $100,000 cash donation — was presented to Resource Area For Teachers (RAFT), a San Jose, California-based nonprofit organization that collects and distributes surplus items from Silicon Valley companies and sells them at a minimal cost to teachers for use in the classroom. National also will make available $50,000 worth of in-kind training for teachers to participate in its Global Connections Training Courses. Through Global Connections, National has provided hands-on training for more than 9,000 teachers worldwide in creative ways to use the Internet in the classroom.

FCnote: The Community Foundation Silicon Valley (CA) had assets of $290,030,525 and made grants totaling $26,953,959 in the fiscal year ending 6/30/99.

"National Semiconductor Creates $20 Million Charitable Foundation at Community Foundation Silicon Valley; Program Will Focus on Education and Community Needs." Community Foundation Silicon Valley Press Release 8/28/2000.

FC003599

Blue Cross and Blue Shield of Kansas to Fund Health Foundation

The agreement resolves litigation that was filed by BCBSKS against the state attorney general in 1997 to resolve whether or not the company had charitable assets because of the manner in which it was originally operated. The settlement comes as a result of a Shawnee County District Court ruling earlier this year that held that BCBSKS has charitable obligations stemming from the tax breaks it received as a nonprofit organization from 1941 through 1969.

"Thirty-one states, the District of Columbia, and Puerto Rico have or are addressing the preservation and conversion of Blue Cross and Blue Shield’s charitable assets," said State Attorney General Stovall. "I am pleased that this has been resolved in Kansas and BCBSKS can pursue business opportunities that will best serve its needs and the needs of its policyholders."

"Seventy-Five Million to Fund New Health Care Foundation." Blue Cross and Blue Shield of Kansas, Kansas Attorney General’s Office, and Kansas Insurance Commissioner’s Office Joint Press Release 8/21/2000.

Jaffe, Anna. "Blue Cross of Kansas Will Fund Foundation as Part of Settlement." Kansas City Business Journal 8/28/2000.

FC003600

Boy Scouts Lose Funding Over Policy of Exclusion

The Scouts' 90-year-old policy has cost the group support from companies such as Levi Strauss & Co. and Wells Fargo. Other companies are now considering withdrawing support, particularly in the wake of a highly publicized Supreme Court decision in June ruling that the Scouts have a constitutional right to exclude homosexuals. That exclusion is at odds with the diversity policies of many corporations.

The issue is complicated by a number of factors. Some observers say the Scouts' exclusion of gays is a policy of the national organization and may not be enforced by local chapters. And many corporate contributions to local chapters are funneled through the United Way, which doesn't have a uniform policy on the issue.

"The ruling only happened this summer, and most funding decisions were made prior to that," said Philip Jones, a spokesman for the United Way. "Decisions would be made by each organization and those discussions are probably happening or have yet to happen."

Lyda, Alex. "Companies May Pull Scouts' Funding." Associated Press 8/24/2000.

Zernike, Kate. "Scouts' Successful Ban on Gays Is Followed by Loss in Support." New York Times 8/29/2000. (Free registration may be required.)

FC003601

Kellogg Foundation Program Helps Youth Address Racism

According to Guillermina Hernandez-Gallegos, lead Kellogg Foundation program director for the project, the YES! project will encourage young people to collaborate with people of all ages in working to improve conditions in their communities.

"Throughout its 70-year history, the foundation has encouraged various aspects of diversity through its grantmaking," said Hernandez-Gallegos. "With YES!, we're taking what we've learned to the next level. This program will enable everyone involved to learn how nonprofits can better deal with racism or cultural misunderstandings in their communities."

The YES! participants will receive grants ranging from $30,000 to $60,000 to implement a community-based project. The organizations selected represent a cross section of the Kellogg Foundation's grantmaking areas: health, youth and education, philanthropy and volunteerism, and food systems and rural development.

FCnote: The W. K. Kellogg Foundation (MI) had assets of $6,387,840,996 and made grants totaling $202,919,594 in the fiscal year ending 8/31/99.

"Youth Nationwide Will Join Adults to Address Racism in Their Communities Through New Kellogg Program." Kellogg Foundation Press Release 8/8/2000.

FC003602

Ford Foundation Announces Finalists for Innovations in American Government Awards

Each of the finalists will receive a $20,000 grant from the Ford Foundation in order to help replicate its program in other areas, and a chance to compete for another grant of $80,000. Among their achievements, this year's finalists have found sound growth alternatives to urban sprawl, pursued better ways to manage tough inmate populations, encouraged commuters to reduce traffic congestion and air pollution, and improved the lives of neglected and abused children.

Sponsored by the Ford Foundation, and administered by Harvard University's John F. Kennedy School of Government in partnership with the Council for Excellence in Government, the Innovations program works to bring public recognition to the quality and responsiveness of American government and to help foster the replication of programs that work.

The 2000 winners of the Innovations in American Government Awards Program will be announced on October 12 and each will receive a $100,000 grant from the Ford Foundation.

FCnote: The Ford Foundation (NY) had assets of $11,938,709,000 and made grants totaling $511,825,000 in the fiscal year ending 9/30/99

"Innovative Government Programs Honored, Will Vie For $100,000 Grants; Finalists Chosen in Innovations in American Government Awards." PR Newswire 8/23/2000.

FC003603

Tech Tycoon Todd Wagner Turns Attention to Digital Divide

"It's like I got to pursue the American dream," Wagner explains. "You wake up and you say, 'I'm so proud of what I've just done' but then you realize that it's only available to a small segment of the population."

Wagner's current projects include providing financial support and business advice to high tech minority businesses and donating money to inner-city youth programs as part of his crusade to help bridge the digital divide.

Currently working out of a virtual office, Wagner believes technology could be the key to social progress. "To me that's what's so exciting about technology," he notes, "...it brings us a chance to level the playing field. The Internet could potentially be the equalizer for the inner-city."

Stahl, Lori. "High Profile: Todd Wagner." Dallas Morning News 8/27/2000.

FC003604

Peter O'Donnell, Texas Philanthropist, Profile

A well-known Dallas investor who rarely gives interviews, O'Donnell had donated nearly $50 million to the university — most of it anonymously — before offering a $30 million gift for the school's Applied Computational and Engineering Sciences Building, a new technology-based research center.

O'Donnell's previous gifts to the school, his wife's alma mater, have funded endowments for the business school, a graduate program in computational and applied mathematics, and 32 endowed chairs in science and engineering.

The 76-year-old O'Donnell is also known for the work of his philanthropic fund, the O'Donnell Foundation, which offers financial incentives to teachers and students for passing Advanced Placement exams. The project's success, particularly among minority students, led to its replication at schools throughout Texas.

FCnote: Peter O'Donnell Jr. is president, donor, and a director of the O'Donnell Foundation (TX), which had assets of $140,668,448 and made grants totaling $14,236,600 in the fiscal year ending 11/30/99.

Jayson, Sharon. "Benefactor Builds on a Dream." Austin American-Statesman 8/25/2000.

FC003605

The Foundation Center