Archive for the ‘Public private partnerships’ Category

An appraising stare down the gift horse’s gullet

August 31, 2010

Jane Mayer’s excellent piece in this past week’s New Yorker about the brothers Koch, oil billionaires who’ve donated hundreds of millions to nonprofits promoting right-wing causes, finally clarified for the Nonprofiteer her unease at Bill Gates’s campaign to persuade billionaires to donate half their estates to charity.  It’s not a question of who has or hasn’t taken the pledge, though that’s an entertaining parlor game.  Nor is it the fact that the generosity of extremely wealthy people may not be what the rest of us have in mind when we hear the word “charity.”  (The Kochs’ “charity,” for instance, is a term of art encompassing donations to all kinds of institutions, predominantly think-tanks churning out rationales for the economic interests of wealthy people and front groups to make it appear that defending those economic interests is the political will of the non-wealthy majority.)

What’s troubling about the billionaires’ pledge remains so even when the receiving causes are unexceptionable.  Gates, for instance, has very generously underwritten substantial efforts by the Global Fund to Fight AIDS, Tuberculosis and Malaria.  Good for him, and for the world.

But.

Even the best-intentioned best-directed private donations are a way for moneyed people to work their will on the public, while the rest of us have nothing but the vote.  And when the level of contributions is discussed in fractions of $1B, it’s no longer charity within a democracy: it’s benevolent dictatorship.

Maybe our country should be giving less to treat AIDS et al and more to eradicate infant and maternal mortality through the UN Population Fund; maybe not.  That’s a decision to be made by the people of the United States, through our government.  It’s really not a decision for a single person.

Why not?  Well, for starters, the “single person” in question is a billionaire, and thus always a man.  That means almost by definition that the highest levels of charitable giving will overlook women, though we constitute more than a majority of the population.  And if that’s the case—if society’s needs are met by individual whim instead of collective decisions about the greatest good for the greatest number—then what, actually, is left of self-government?

Of course, billionaires have plenty of assistance in the task of allowing economic power to trump political will.  The Supreme Court’s decision in Citizens United, holding that corporations are “persons” with First Amendment rights violated by limits on their campaign spending, already put the nation quite a way down that road.  But somehow it’s worse when something that sounds so benign—”half my estate to charity, because I’ve been so fortunate”—actually translates as “I set the agenda for the future of this country, because I’ve been so fortunate.”

What we really want from billionaires is for them to pay a lot more in income taxes: say, the 87% of taxable income paid in 1954,  or even the 70% paid at the start of the 1980s.  And then we as a group can decide where our group’s money goes.  All contribute, all decide.

And what we really want from billionaires’ heirs is for them to pay the 77% estate tax rate in effect in 1941, or even the 70% estate tax rate in effect in 1976.   (And let’s not hear any nonsense about “death taxes.”  The dead aren’t the ones paying.)  Why shouldn’t people who get money by inheritance have to pay taxes on it, just like people who get it by working?

Merely to ask that question is to answer it: no democratic society decides that people who don’t work should be privileged over those who do.  Societies like that are called “aristocracies,” and all those so-called Constitutional Originalists running around hijacking elections by screaming about excessive taxation should take a moment to remember that our Constitution was designed precisely to interfere with the establishment of a government by inheritance.

The Constitution prohibits not once but twice the granting of any title of nobility; but the Framers didn’t rest there.  They fought to cripple and ultimately abolish entail and primogeniture, the primary devices by which English law kept family fortunes together.  Why?  Because they realized that, if you’re founding a republic, it’s really not a good idea to let money keep piling up generation after generation in the same few pairs of hands.

Self-governing societies can’t operate on noblesse oblige, and societies that do aren’t truly self-governing.  As Dr. Franklin said, “A republic—if you can keep it.”

Dear Nonprofiteer, How can I get my piece of stimulus pie?

May 7, 2009

Dear Nonprofiteer,

I’ve heard about the stimulus package, but where, exactly, is the money?

Signed, Hungry for My Share

Dear Hungry,

Check out the Foundation Center’s new map, which connects to a list of links and resources relevant to nonprofits seeking money from the American Recovery and Reinvestment Act.  Dig in!

ARRA–we do our part.

Specter!

April 29, 2009

Low on inspiration this morning, but the Nonprofiteer assures her readers that nothing she could think of to say about the sector is nearly as important as the news that Senator Arlen Specter has joined the Democratic party.  Once Al Franken is seated–maybe before the summer solstice, maybe just after, but it will occur–the Democrats will have free rein, and that means health care reform and education funding and appropriate attention to energy use and climate change and a shot at the Employee Free Choice Act.

Good news for all of us in the business of helping people.

The best thing we can do for nonprofits–and ourselves

April 28, 2009

Have you seen Rick Cohen’s typically smart and on-target piece “The Worst Thing We Can Do for the Obama Administration”?  While he’s speaking about the nonprofit sector and its/our special-interest-group needs, there’s a broader point: that those of us who supported the President’s election because we share his basic principles and values should express that support by remaining independent and criticizing when necessary, rather than by becoming supplicants to or apologists for the people we put in office.  That’s an idea relevant to each and all of us as citizens.

The Nonprofiteer’s own version of this insight struck her while she was raging at news of the Administration’s refusal to investigate and prosecute allegations of torture.  Abruptly she realized she had two choices: struggle to construct a rationale for a constitutional law professor’s apparent indifference to violations of the Constitution, or struggle to make it impossible for such apparent indifference to continue.  So she’s now volunteering with the ACLU,  whose legal work contributed to the release of the torture memos and which is helping to orchestrate public pressure to bring to justice the people who violated our laws in our name.

Politics, it is said, is the art of the possible.  The citizen’s job is to define for politicians what’s possible, and to make sure that the definition encompasses everything that’s essential.

As nonprofit leaders, we know first-hand how much of what’s essential requires the government’s support.  But as Cohen says, our primary job is not begging for that support; it’s giving or withholding our own based on how well the government–our government–lives up to our ideals, and its own.

Social Innovation in the White House

April 7, 2009

In the midst of a thoughtful discussion at the Wagner Center of the competing demands on philanthropies for funding of overtaxed social services and of social-change advocacy, big news: the White House is about to announce creation of the long-proposed Office of Social Innovation to bring together government responses and resources to the concerns of the philanthropic and charitable sectors.

Bureaucratic-style confirmation: the office appears on the list at whitehouse.govSpeculation about possible leadership has begun.

Where’s the beef?: Big projects swallow up all the money

April 6, 2009

Hey, Nonprofiteer, here’s my beef:

I read (Crain’s Chicago Business, March 16, registration required) that the Chicago Olympics 2016 committee has a corporate sponsorship goal of $1.8 billion.  Isn’t that going to cut into corporate responses to nonprofit funding requests?  Is that going to make things worse for nonprofits than they already are?  I remember hearing a nonprofit Executive Director grousing about how much money was diverted from regular charitable donations to go to [naming opportunities in the city's new downtown] Millennium Park, and the Tribune recently mentioned the same possibility in connection with the Olympics.

Should I worry about who will pay if the Olympics go over budget?

(This guy sounds a little worried:

http://behindthebid.blogspot.com/2007/03/crains-olympic-challenge.html)

Signed, Bean Counter

Hey, Bean–

You’re asking two separate questions.  Second one first: you shouldn’t worry about who will pay for inevitable Olympic cost overruns, because it’s all settled: you’ll pay, if you’re a Chicago taxpayer.

I think the Olympics are a bad idea on about six different dimensions, but the first one you raise is discussed least often: the tendency of big projects like the Olympics (or, before it, Millennium Park) to sop up huge volumes of corporate and foundation funding, leaving less for ordinary operating nonprofits.  But of course it’s impossible to determine what those funders would have spent on education or health care or social services had a sexier alternative not been available.

Fundraisers for high-profile projects always advance the argument that, as George W. Bush would have it, we “make the pie higher”–that donations to the Olympics constitute additional private money being put at the service of public purposes.  The notion is that glamor projects magically produce the fresh generosity necessary to sustain them.

But if Great Depression II teaches us anything, it’s that private firms actually don’t have limitless sums of money, and that if they put it in one pot (say, credit-default swaps) it’s not available for inclusion in another (say, mortgages).  By the same token, if they put the money into naming the Ronald McDonald Memorial Olympic Village it’s going to be mysteriously missing when the local food pantry comes to call.  And it stands to reason that given the option corporations (and even foundations) will choose to invest in shiny things on which they can engrave their names.

At least in Chicago, the ordinary lack of transparency in philanthropies (“It’s our money; why should we tell you what we’re doing with it?”) is complemented by an equal lack of transparency in government (“It’s your money; why should we tell you what we’re doing with it?”).  So we can only speculate that money spent on circuses will not then be forthcoming for bread.

*******************

Readers: What’s your beef?  What drives you craziest about trying to manage your agency or serve on its Board?  Is it the bully who won’t let anyone else speak?  The budgeting that features revenue everyone knows you won’t get?  E-mail your problems to the Nonprofiteer, subject line “Where’s the beef?” and she’ll solve them for all the world to see.

Formerly Foundation but now Federal Friday: Going where the money is

April 3, 2009

. . . which right now isn’t foundation coffers but the vaults at Fort Knox, as this excellent summary of how to get yours under the Federal economic stimulus package makes clear.


State of the sector: lots of facts and a few thoughts

March 17, 2009

Eyal Press’s Nation article reviewing the state of the nonprofit union–reprinted on alternet–is a fine example of journalistic synthesis, identifying half a dozen aspects of the situation in which nonprofits find themselves, illustrating each with a punchy example, and offering a taste of possible solutions.  Everyone in the sector should read it–twice.

The Nonprofiteer’s takeaways:

  • There are things we can do as nonprofit managers, including bringing our employees into the process of figuring out how the agency can survive.  Don’t just decide who’s expendable: ask, and see whether some of your better-paid employees will take pay cuts to assure the continuation of their jobs and everyone else’s.
  • There are things we can do as donors, including adopting the MacArthur Foundation’s posture: “We have less money today than we had last year but more than we had five years ago.  Looked at from that perspective, we can still afford to give.”
  • The things we can’t do as members of the nonprofit community are precisely the things we can and should do as citizens.  Though for years we’ve indulged in a widespread pretense that private charity by itself can provide the safety net society owes to its poorest,  Great Depression II is proving once again that this is nonsense–that the resources of the charitable sector are dwarfed by those available to the government, and always will be.  So, as citizens concerned with social justice, now is the time for us to raise our voices in support of public policies to advance it–including the taxation necessary to support it.  Charities can beg, and we do; but only the government can compel the entire polity to step up and pay what’s needed, and it must.

Of kids and dogs

March 10, 2009

Obviously the Nonprofiteer has been in the business too long, because the press release below–trumpeting an uptick in aid to charities serving Indian children in the wake of Slumdog Millionaire–made her think of nothing so much as the “101 Dalmatians syndrome” dog-lovers mention to explain their dismay that the Obamas are getting a Portuguese water dog.

The dog-lovers fear people will be inspired to copy the First Family’s choice of dog and then abandon the animals when they prove to be too much trouble.  The Nonprofiteer fears that people will be inspired to support children’s charities in India this week and then abandon them when some equally photogenic opportunity emerges next week or month–abandoning the Indian children, in other words, when they prove to be too much trouble.

On the other hand, when she heard the dog-lovers’ plaint she thought, “Oh, get a life!”  Dog adoption on balance is a social good, and shouldn’t be discouraged just because some people who engage in it probably shouldn’t (much like parenthood).

Likewise, donations to children’s charities in India are a social good, and shouldn’t be discouraged just because they won’t continue forever.  What we hope is that people who adopt dogs grow into the responsibilities that go with pet ownership, and that at least some of the people who turn their attention to Indian orphans on a whim will grow to understand the causes of their poverty and thus to support the means necessary to alleviate it.  (Prominent among those necessary means: not just consistent individual giving but an increase in the U.S. foreign aid budget.)

And meanwhile, UNICEF (along with the charities cited below) will be glad of any and all contributions, no matter how passing the fancy which produces them.

CAFAMERICA: SUCCESS OF “SLUMDOG MILLIONAIRE” IS AIDING CHARITIES

Oscar-Winning Film Inspires a Boost in Donations to Groups Working With India’s Children; CAFAmerica Offers Simple Means By Which to Target Donations to Best Programs In India.

ALEXANDRIA, VA///March 3, 2008///The Oscar-winning film “Slumdog Millionaire” – depicting the often dire circumstances faced by children in poverty in India – has sparked interest in charities that target the problem, according to CAFAmerica, which promotes borderless charitable giving as part of the CAF International Network that spans six continents and has over $4 billion of charitable funds under management.

CAFAmerica CEO Susan Saxon-Harrold said: “Individuals and organizations that have been touched by ‘Slumdog Millionaire’ should consider donating to aid Indian children. I have seen the excellent work by charities working in the slums in Mumbai. These charities are making a huge impact on the health, welfare and education of children living in poverty with very little by way of resources. The success of the film has thrown a positive spotlight on their efforts. We advise donors on how best to get involved in giving to India as well as how to make donations safely to get the best impact. As well as working with individuals we work with CAF India to help corporations with their corporate community involvement goals in the region.”

According to an estimate by UNICEF, there are currently 11 million children living on the streets of India, many of whom have fled abuse or mistreatment at home.

The film “Slumdog Millionaire” has inspired a boost in donations to the following children’s charities:

* Railway Children (http://www.railwaychildren.org.uk/) reports that has experienced 10 times as many hits on its Web site as normal and is witnessing a new wave of donations. Based in India, Railway Children established its first charity project in India in 1996, working with local third sector organizations to address the problem of homelessness. Chief executive Terina Keene has been quoted as saying: “We just hope that this marvelous film will help put us at the forefront of people’s minds when it comes to helping the charity. The children on the streets of India desperately need our help.”

* SOS Children’s Villages of India (http://www.soscvindia.org/soswebsite/index.php) is a non-profit, non-government, voluntary organization, committed to the care of children in need. The aim and objective of SOS-India is to provide long term family based care to parentless, homeless and abandoned children and to strengthen disadvantaged families as a preventive measure against abandonment and social neglect of children. Since its inception in 1964, SOS-India has expanded its services for children at a rapid pace.

* Save the Children, India (http://www.savethechildren.in/index.html) is an independent member of the International Save the Children Alliance. The organization fights for children’s rights and delivers immediate and lasting improvements to children’s lives in India. Save the Children has existed in India since pre-independence days and is currently working in 11 states and union territories of India.

Both SOS Children’s Villages and Save the Children, India have reported an increase in donors and sponsors in the wake of the release of the movie Slumdog Millionaire.

Individuals and organizations that wish to rely upon the knowledge and due-diligence capacity of CAFAmerica to investigate these and other overseas charities at http://www.cafamerica.org/cafa/SearchModule/NpPublicProfileSearch.aspx, can donate to help Indian children by going to CAFAmerica Home page and clicking the donate Now button
at http://www.cafamerica.org/dnn/Home/DonateNow/tabid/148/Default.aspx.

CAFAmerica helps companies, family and community foundations, and individuals to manage their international philanthropy efforts and strengthen charitable activity around the world. It also advises on fundraising and grantmaking, allows online account management and provides an online giving mechanism for nonprofits to place on their websites.

ABOUT CAFAMERICA

CAFAmerica was founded in 1992 as a member organization of the London-based CAF International Network, which provides charitable financial services to nonprofits, individuals and companies. The CAF International Network spans six continents and has over $4 billion of charitable funds under management.

CAFAmerica is dedicated to expanding borderless charitable giving by providing guidance and international grant making options for donors. CAFAmerica’s range of innovative charitable solutions for US donors and overseas nonprofits include Donor Advised Gifts, Donor Advised Funds, Matching Donor Advised Fund and most recently, the ‘Friends of’ Charity Fund.

CONTACT: Patrick Mitchell, in the US, (703) 276-3266 or pmitchell@hastingsgroup.com; and Fiona Fountain, in the UK, +44 1892 544035 or fiona@fionafountain.co.uk.

Polio: once more, with feeling

March 3, 2009

For many years, Rotary International has been a leader in raising funds to eradicate polio around the world–and when the Nonprofiteer says “many years,” she’s referring to a campaign now past its 20th birthday.  Five years ago there was a piece in the New Yorker about what already seemed like an endless battle to wipe out the disease, which persists in only a few countries but causes disproportionate misery and disability.  And this year, when the Rotarians and their worldwide partners announced one last big push to raise funds, the response of The World program on the BBC was a segment asking whether the costs of the eradication effort outweighed the benefits.

Against this backdrop of skepticism and exhaustion, the Rotarians’ work seems all the more heroic.  Their challenge is to raise $200 million to match $355 million in grants from the Gates Foundation.  Maybe you’d like to help them out.  Check out the video and get more information here.


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