Car Services, Groceries and Retailers are All Collecting Change
IT is a truly modern form of giving. The ridesharing company Lyft recently launched an initiative allowing customers to round up their fare to the nearest dollar for charity.
The innovative scheme hardly leaves donors out of pocket, but adds up to a big boost for charities. In May, Lyft partnered with United Services Organizations in honor of Military Appreciation Month, while June’s collaborator was the Human Rights Campaign, in honor of Pride Month.
Photo by Nisian Hughes via Getty Images
More than 40,000 passengers donated over $100,000 in support of the two causes in the program’s first two months, according to Lyft.
Lyft is the latest major company to allow consumers to round up for charity. Grocery stores, mass merchandisers and specialty retailers are among those that allow customers to donate their change to various causes. As technology and digital platforms make such giving easier, the trend of rounding up for charity is likely to grow.
A study by Engage for Good found that in 2016, 73 “charity checkout campaigns” raised more than $441 million, up by 4.5% since 2014. E-Bay topped the list, raising more than $56 million for consumers’ favorite charities, followed by Walmart, with $37 million going to Children’s Miracle Network Hospitals, and Petco, with more than $28 million for animal welfare organizations.
Megan Strand, Engage for Good’s communications director, says point-of-sale fundraising is an efficient way for companies to raise money for good causes.
“We have been seeing greater interest in round-up from both retailers and researchers over the past several years,” she says. “Several retailers we’re familiar with are using this tactic as a second bite at the apple and offering the option to round-up to consumers if they indicate they don’t want to donate a flat amount. Other retailers are using round-up as their primary ask and finding great reception from customers.”
She says such campaigns will likely grow and include more digital platforms. Some websites already offer this option. For example, GoDaddy, which lets people buy and build websites, has a “Round Up for Charity” box that allows customers to round up their order to the nearest dollar. The company says more than 14 million customers have chosen the option.
Round It Up America, a non-profit organization that partners with restaurants, allows patrons to round up their credit card bills for donations. And there are of course plenty of ways to donate physical loose change. One of UNICEF’s longest running programs is Change for Good, a partnership with the airline industry that allows passengers on some flights to donate unused currency. The program has raised more than $150 million. Coinstar, which has kiosks where people can exchange their coins for dollar bills, runs a “Coins that Count” charity program, allowing users to give money to organizations such as the American Red Cross and World Wildlife Fund.
Coinstar kiosks in a large supermarket. The typical Coinstar coin cashing kiosk is green and the size of a large vending machine. They are located at grocery stores, drug stores, larger merchants, banks or other retail locations. (Photo by Roberto Machado Noa/LightRocket via Getty Images)
Una Osili, professor of economics and associate dean for research and international programs at the Lilly Family School of Philanthropy at Indiana University, says companies are increasingly aware that consumers care about their involvement with charitable causes.
“You now have the ability to do it in a very low-cost way, for the consumer and the company,” she says. “And I think it fits into the demand side. Consumers want to purchase from companies that are good community and global citizens.”
Experts in philanthropy say that, as with all charitable giving, consumers should research where their money goes and what the impact is. Osili says it is also worth paying attention to what kinds of partnerships are involved. For example, a fried chicken company that teams up with a breast cancer cause is questionable since such food is usually unhealthy, she says.
Dean Karlan, a Yale economics professor whose research includes charitable fundraising, says it is difficult to say how successful efforts such as Lyft’s are. Positive effects may include people learning about charities they did not previously know about, he says. But a negative effect could be that if people donate a little here and there, they may be more inclined to turn down a request for a larger donation. On the other hand, Karlan says donating change regularly could make some people feel so good that they become more charitable.
“Every one of these makes sense, but the ultimate question is empirical and we just don’t have all the answers,” Karlan says. “It would be great to set up some experiments to find out.”
So whether you hold on to your pennies or donate them, be aware that even small change can have a big impact.
Everyone has a hero. Someone to look up to. Someone to emulate. These heroes run the gamut from family members to international celebrities. One person may become a doctor thanks to his mom, while another might pursue international development having been inspired by a pop-star. And while a hero is never a one-size-fits-all proposition, it is hard to imagine that there are people who would not be inspired by Kris Tompkins.
As the CEO of the outdoor apparel company Patagonia, Kris proved how profitable it could be to have a company with a strong set of ethics. And post-Patagonia, she taught the world another lesson by combining forces with her husband, North Face founder Doug Tompkins, dedicating her time and wealth to protecting the earth. But how do you describe Kris, a woman who has led an undeniably extraordinary life, and successfully capture all that is inspiring about her?
A sign hangs over the entrance to the Patagonia outdoor clothing shop in Vail, Colorado. The retail chain is based in Ventura, California. (Photo by Robert Alexander/Getty Images)
If you see yourself as an entrepreneur, leader, or even adventurer, there is no doubt that Kris’s story is worth hearing. After meeting Yvon Chouinard, a renowned climbing gear maker, she was given an opportunity to work for his new company. At age 23 she became part of the fledgling brand Patagonia, and in the course of the next 20 years, became the CEO. She steered the company to both exceptional commercial success and unprecedented ecological activism. Her leadership proved that a company can have a strong ethical backbone, dedicated to helping preserve the earth, and still thrive in a competitive marketplace.
Of course, her work with Patagonia could be an inspiration to ecologists and nature-lovers, but it pales in comparison to what comes next. Having found such great success at the top of the company, she decided to leave it behind to focus on philanthropy and ecology full-time. She and her soon-to-be husband moved to Chile and focused their fortunes on protecting the land there. While their work was initially met with some skepticism, it has since been lauded by environmentalists throughout the world, as well as the governments and the people of Chile and Argentina. Together, Kris and Doug helped preserve over 10 million acres of land, and have donated $300 million to the cause.
Guanaco (Lama guanicoe) territorial male watching over females in Torres del Paine National Park in Patagonia, Chile. (Photo by Wolfgang Kaehler/LightRocket via Getty Images)
Doug tragically passed away in 2015, but he still is an inspiration to Kris, and Kris remains an inspiration to a countless number of environmentalists, philanthropists, and women. She was named one of National Geographic’s Adventurers of the Year and won the Lowell Thomas Award from the world famous Explorer’s Club. In fact, if there is an award for adventure or conservation that Kris has not won, it is simply a matter of time. Outside Online included Kris in their recent article “The Future Is Female and These 40 Women Are Proof” and she is clearly not slowing down in her efforts to do good in the world. In fact, her nonprofit, the Tompkins Conservation, has been seeing remarkable success in the process of reintroducing wild animals to parts of Chile and Argentina where they had been previously driven out. This rewilding effort is sure to inspire animal lovers everywhere.
As Kris told National Geographic, “People need to get up every day and do something that has nothing to do with themselves.” The money she puts into saving the earth is the easiest part of the equation. Kris makes a difference by going out and devoting her time and energy to changing things for the better, and she is hoping that her example will be an inspiration to others. When it comes to heros, there is surely no one more deserving of admiration than Kris.
How Individuals and Foundations are Helping Deliver the News
ProPublica’s president, Richard Tofel, says classical music and journalism have something in common.
“We know that classical music was once popular music,” he says. “It is no longer popular music and it does need philanthropic support. We need to explain to people that an analogous transformation has occurred in journalism.”
Staff of the New York Daily News and ProPublica, and Lee C. Bollinger (4th R), president of Columbia University, are seen on the stage during the 2017 Pulitzer Prize Award Ceremony in New York, the United States, on May 22, 2017. The New York Daily News and ProPublica won the prize for public service for uncovering how police abused eviction rules to oust hundreds of people, mostly poor minorities, from their homes. Pulitzer Prize Administrator Mike Pride announced the winners of the 2017 Pulitzer Prizes in the World Room at Columbia University on April 10 in New York. (Xinhua/Wang Ying via Getty Images)
Without philanthropy, certain important kinds of journalism will disappear, Tofel says. At ProPublica, an independent, Pulitzer Prize-winning non-profit newsroom, philanthropy accounts for more than 95 percent of the funding. The 2016 Presidential election led to most of the 26,000 donors who gave last year, a sharp increase from 2015, when 3,400 donated. Tofel believes that the key now is to ensure this is not a short-term phenomenon.
“Journalism needs to go on the list of charitable options that people consider when they think about how they spend their charitable funds,” Tofel says. “We’re trying to build a new class of cultural institutions in this country, and just as people need to support private universities, hospitals, art museums, history museums and theatres, they’re going to need to support some kind of journalism.”
The 2016 presidential campaign put a spotlight on how fast inaccurate news can spread, and the challenges in correcting that. And the current administration has been openly attacking the media, creating tension that only seems to be escalating. Several foundations have recently stepped in to support journalism by funding projects in areas such as fact-checking, journalism ethics, and investigative reporting. But even beyond grant-making, those in the journalism field are hoping for a major shift, where the public starts to see journalism as a regular charitable option.
Henderson, Nevada, A Future to Believe In, Press Pass for Presidential Candidate, US Senator Bernie Sanders.. (Photo by: Visions of America/UIG via Getty Images)
Donations in the news business are not new – journalism has long been seen as the bedrock of democracy, and press freedom is enshrined in the First Amendment. Journalism serves a critical role in ensuring the public’s access to information and holding the government accountable. Still, Rodney Benson of New York University estimated early last year that foundations only gave about $150 million directly to news organizations. Inside Philanthropy lists more than 30 foundations that fund various journalism projects.
It is difficult to measure the impact of philanthropy on the news business, but there have been some notable efforts recently to bolster the field by supporting investigative and local reporting, countering fake news, and funding ethical journalism practices. Here are some examples:
Pierre Omidyar, 2011 Carnegie Medal of Philanthropy honoree, Founder and Chairman of eBay and the Omidyar Network (Photo by James Leynse/Corbis via Getty Images)
• E-bay Founder Pierre Omidyar announced in April that his philanthropic firm would donate to $100 million to address the “global trust deficit,” which includes strengthening independent media and supporting investigative journalism. For example, up to $4.5 million will go to the International Consortium of Investigative Journalism, which produced the Pulitzer Prize-winning “Panama Papers” series about how politicians and others participate in corruption.
Founder of Craigslist Craig Newmark attends IAVA 7th Annual Heroes Gala at Cipriani 42nd Street on November 12, 2013 in New York City. (Photo by Michael Loccisano/Getty Images for IAVA)
• Craig Newmark, founder of the Craigslist website, has supported journalism for years and in December 2016, his foundation donated $1 million to Poynter to fund a faculty position focusing on journalism ethics. The gift was Poynter’s largest single donation from a foundation since its founding in 1975. Indira Lakshmanan, who recently started the job, said she hopes to examine issues that include fake news; she pointed out that the 20 most popular hoax stories during the 2016 election campaign were shared and liked on Facebook 1.3 million times more than the 20 most popular real news stories.
• The John S. and James L. Knight Foundation, the Democracy Fund and the Rita Allen Foundation announced in June they were distributing $1 million for 20 projects that aim to improve the flow of accurate information. Some projects focus on engaging the public in news gathering, while others zero in on issues such as media literacy and tools for better fact-checking. Also in June, Knight Foundation and the Democracy Fund announced a $2 million pledge to kick off a campaign to support nonprofit journalism.
Jerry Lenfest talks with the media preview of the new LOC Experience, which will feature interactive exhibits and touch-screen technology in the Jefferson Building on April 9, 2008. (Photo By Douglas Graham/Roll Call/Getty Images)
There are other examples of how philanthropy is helping deliver the news, including supporting non-profit and for-profit news organizations, as well as helping start new ones. In his book “The Givers: Wealth, Power, and Philanthropy in a New Gilded Age,” David Callahan lists such examples, including Robert Wood Foundation giving more than $10 million to National Public Radio since 2008, and Ford Foundation funding coverage of inequity issues at the Los Angeles Times and Minnesota Public Radio.
The Carnegie Medal of Philanthropy forum on the challenges facing the philanthropic sector featured: David Callahan, founder and editor of Inside Philanthropy; Sacha Pfeiffer, investigative reporter at the Boston Globe covering wealth, nonprofits, and philanthropy; and Karl Zinsmeister, vice president of The Philanthropy Roundtable. Moderated by Stacy Palmer, editor of the Chronicle of Philanthropy, the June 22 forum was held at Carnegie Corporation of New York’s headquarters in New York City.
Kelly McBride, Poynter’s vice-president, says the organization has had some longtime funders, including the Knight Foundation, Robert R. McCormick Foundation, Tegna Foundation, Gannett Foundation, and the Ethics & Excellence in Journalism Foundation. But there have definitely been some new players in the space, including a number from Silicon Valley, she says.
“I think all of these organizations recognize that journalism is vital to democracy,” she says, “and if you care about democracy, there are very few places to actually put your money. You can put it into voting efforts – efforts to get people to register to vote and educate them about voting issues – or you can put it into journalism.”
Many U.S. news organizations now find themselves in confrontation with the new administration. President Trump has called the media the “opposition party,” and “the enemy of the American People,” and the White House has sometimes blocked or limited journalists from covering certain events and press briefings. Joel Simon, executive director of the Committee to Protect Journalists (CPJ) has said the organization is very concerned about Trump’s “hostile rhetoric toward the media,” and CPJ has documented a series of recent incidents, including arrests of reporters covering protests and the president’s inauguration in January.
Some media outlets also continue to struggle financially as they adapt in the digital age and cope with mergers and other challenges. In 2016, print and digital circulation of newspapers fell by 8 percent from the previous year, marking the 28th consecutive year of declines, according to Pew Research Center. Newspaper advertising revenues dropped by 10 percent from 2016 to 2015. This year, several outlets announced layoffs. In June, Time Inc. said it would cut about 300 jobs and The Huffington Post announced 39 layoffs. The New York Timessaid in March it was offering buyouts and potentially laying off people in an effort to reduce editing staff and add more reporters.
McBride, of Poynter, says journalism remains under duress, but there are plenty of ways for individuals to help, including becoming a paid subscriber, a member of a journalism organization, or a regular supporter.
“Individual citizens are going to have to step up more in their giving,” she says. “One of the messages we are trying to get out is that if you support journalism, you should pay for journalism. We have not traditionally thought of journalism as a cause worthy of charitable giving, but I think you can definitely make that argument now in the United States.”
That way, journalism can continue to thrive and enrich the lives of new audiences for many years to come, just like classical music.
There is a new type of philanthropist on the scene. Thanks to the fortunes made in Silicon Valley, there is a fresh crop of billionaires who are eager to, in tech-parlance, disrupt the current system. Many are starting their own foundations, looking for new ways to give, and even seeking out suggestions from the public.
As the first full-time employee of eBay, Jeff Skoll found his wealth before the turn of the century, and has been one of the most prolific and successful philanthropists to emerge in recent years. His approach, which is both pragmatic and eye-catching, should be at the top of the list for other new philanthropists who want to ensure impact.
Within a year of making his fortune, Jeff set up the Skoll Foundation, and two years later he left his job to focus entirely on the best way to use his wealth. His efforts have been lauded both within the worlds of Silicon Valley and philanthropy. And you’re probably more aware of Jeff Skoll’s work than you realize. With a diverse set of foundations and projects, his impact has been felt far and wide.
(L-R) Jeffrey Skoll, Bonni Cohen, Al Gore, Jon Shenk, Diane Weyermann, and Richard Berge attend the ‘An Inconvenient Sequel: Truth To Power’ press conference during the 70th annual Cannes Film Festival on May 22, 2017 in Cannes, France. (Photo by Andreas Rentz/Getty Images for Paramount)
Through the Skoll Foundation, as well as the Skoll World Forum, Participant Media, and many others, Jeff Skoll has led the way in creating a new form of effective philanthropy. As he told the New York Times “We began to build the organization, focused on investing in and celebrating social entrepreneurs. Not long after that, we realized there was another opportunity to help bring them together and tell their stories.”
Going strong for nearly two decades, the Skoll Foundation aims to achieve sustainable peace and prosperity by focusing on innovation and creativity to tackle large-scale problems. It is through the Skoll Foundation that many of his future efforts begin to take flight, including the World Forum on Social Entrepreneurship and Participant media. In fact, Jeff has probably done more to raise the awareness of social entrepreneurship than anyone else on this planet, with his foundation locating those who seek to change old systems and create innovative new ones. The foundation finds people and programs that are already bringing positive change to the world and does everything in its power to provide a chance to extend their reach and deepen their impact. And they have seen great success, investing over $400 million and giving out over 100 Skoll Awards to social entrepreneurs who are making a lasting impact.
2017 Skoll World Forum
And Jeff continues to provide opportunities for social entrepreneurs to flourish, thanks in no small part to the Skoll Center for Social Entrepreneurship at Oxford University, and the annual Skoll World Forum on Social Entrepreneurship. These programs are a critical opportunity for social entrepreneurs and partners to connect, learn, and develop the burgeoning area of philanthropy. As a new approach to the world of giving, social entrepreneurship is still finding its way, and with the help of the Skoll Center, people are quickly learning and adapting. It is through these connections that large-scale social change is able to happen. The connections that are made are an excellent reflection of Jeff Skoll – both emotionally inspiring and cerebrally innovative.
Of all the projects Skoll has begun, the one that is most revolutionary is Participant Media. While not everyone is familiar with the production company, the films they have produced have been blockbusters and world-changers. Dedicated to entertainment that inspires and compels social change, Participant Media has produced such films as Beasts of No Nation, Denial, An Inconvenient Truth, Lincoln, The Help, and over 70 others. This is where Jeff Skoll truly shines, recognizing the importance of storytelling in bringing about change, and producing it on a scale that no other philanthropist or organization has ever imagined. It is testament to his efforts that he has achieved an extraordinary eleven Academy Award wins.
Jeff is a mix of contradictions, an empathetic pragmatist and an interview-averse storyteller. He cites former Carnegie Corporation president John Gardner as a chief role-model, providing the Skoll Foundation with their mantra – “Bet on good people doing good things.” Hopefully this new generation of philanthropists will follow Jeff’s inspirational lead.
Generation Y is Tapping into its Power as Consumers, Employees and Citizens
Most of them are charitable and have volunteered. They use their cell phones to donate, and see their workplace as somewhere they can make a big difference. They will account for half the workforce by 2020, and outnumber everyone else by 2030.
They are millennials – and foundations, non-profits and others interested in philanthropy are paying close attention to their charitable giving and engagement. Millennials – or Generation Y – are the first group to embrace mobile giving, and are not afraid to support international causes, or use their consumer and political power. But most of them are still at early points in their careers, and their full impact on philanthropy will not be known for years.
Children’s Literacy Center volunteer tutor from East High School, Clare Curwen, left, works with Jaydan Guzman at the Martin Luther King Jr. Library November 20, 2014. (Photo by Andy Cross/The Denver Post via Getty Images)
The term “millennial” is used for those born between 1980 and 2000 (some researchers use the early 1980s as a starting point, and the early 2000s as the end point). Their sheer numbers are prompting the philanthropy world to track them closely – in less than 15 years, they are expected to outnumber non-millennials. They are the first cohort to grow up with cell phones and social media, which has greatly influenced the way they approach charity.
“They’re the first generation to realize that the minute they make a gift, they can tell 1,000 of their friends in a nanosecond,” says Eileen Heisman, president and CEO of the National Philanthropic Trust. “The idea that you’re going to tell the world immediately is a way to invite people to give, a way to highlight a cause.”
In 2014, 84 percent of millennials made charitable donations, and 70 percent said they spent at least an hour volunteering, according to research by the Achieve group. Millennials are particularly interested in giving to marginalized or disenfranchised groups, and supporting causes that promote equality, equity, and opportunity, the study found.
They are also very engaged in global causes and the environment, says Una Osili, research director at the Lilly Family School of Philanthropy at Indiana University.
“Those are two sectors that are relatively new to charitable giving and relatively small compared to say, religion or education giving,” she says. “But that’s an area that they’ve shown a lot of interest in.”
What Three Social Issues Interest You Most?
Source: 2016 Millennial Impact Report
Experts say millennials also know how to leverage their consumer power. They are more likely to buy brands they believe are giving back, whether that be TOMS shoes or Warby Parker eyeglasses. Osili and others point out it is important to research how effective such companies are in giving back, however, and evaluate the impact of their claims.
“Some ‘cause’ marketing campaigns have been less effective and there is also a question about how much actually goes to charity versus the company,” she says. “But overall, the idea that you can have impact, not just through charitable giving, but through a range of consumption and investment decisions, is very attractive to millennials. They want to work in companies that are involved in social good and buy from companies that are good corporate citizens and good community members.”
“Millennials are looking for companies to stand up for something and to make it clear that they should be standing up for certain issues and rights of individuals,” he says, “not just for their consumers, but for the betterment of their communities, neighborhoods and employees who live in those neighborhoods.”
Wheelock College student volunteers, or corps members, part of the Jumpstart early education program, work with pre-schoolers at the Crittenton Center at the Madison Park complex. Here, they lead kids in a dance. (Photo by George Rizer/The Boston Globe via Getty Images)
Researchers say millennials are also exercising their power as citizens, and engaging in philanthropy in response to political events. The 2016 Presidential election prompted many of them to get even more involved, they said. The 2017 Millennial Impact Report found their cause engagement increased in the first quarter of 2017, compared to the last quarter of 2016.
“I think charitable giving is a manifestation of how you look at the world and your political views,” Heisman says. “You are supporting what you believe in.”
Feldman, from Achieve, says another key characteristic that distinguishes millennials is that they view all of their assets equally, whether that be their money, their time, or their networks. They do not see themselves as donors or volunteers, but as supporters of a particular cause or issue, he says. Organizations such as the ACLU, Amnesty International and ONE are aware of this, and incorporate grassroots movement building and participation into their strategy before ever asking for money, he says.
Most millennials are still early in their careers, so their long-term impact is yet to be determined. Many are getting jobs and building families later than the previous generations, and have not reached their peak income. The jury is still out on what impact they will have – but the philanthropy field is watching with close attention.
Unlike many a millionaire, Julian Robertson Jr. has been enjoying the opportunity to give away his wealth. He made his money in the finance world, where he is still regarded as a wizard of Wall Street. But the impact he has had on the philanthropic world is hard to overstate, and is likely to reverberate for many years to come. He brings his hedge fund acumen to non-profits, placing his money in successful and diverse programs, ensuring he gets maximum bang for his buck.
The Lincoln Center for the Performing Arts in Manhattan, New York City, 1971. (Photo by Archive Photos/Getty Images)
Much of Robertson’s work revolves around opportunity. And while many philanthropists lament getting started later in life, he has a different take, saying, “Once you get into the giving game, it is so much fun that you give all your money away. If I had started younger, I wouldn’t have anything left to give.” He views his wealth as a unique opportunity, and happily uses his money to provide opportunities big and small to others. His efforts have gone to small towns and big cities, art museums and stem cell research facilities, public parks and military families. The variety is nearly overwhelming. And he has used his stature in the finance community to bring new recruits to the world of philanthropy.
Robertson’s efforts show his ever-growing list of interests. Like many philanthropists, much of his money goes towards projects and programs that are connected to his life. The Blanche and Julian Robertson Foundation, named after his parents, is concentrated on his home town, the city of Salisbury, North Carolina. Quite simply, its aim is to improve life there – revitalizing neighborhoods, helping families in crisis, giving access to art, and supporting at-risk young people. In addition, Robertson Scholars Leadership Fund provides scholarships to North Carolina University and Duke University. Of course, he has not forgotten where he made his money either, providing both funding and help to various New York programs, including the Boys Club, Central Park, and Lincoln Center. And having fallen in love with New Zealand after his first visit in 1978, he set up the Aotearoa Foundation (Aotearoa being the Maori word for the country), having a big enough impact to earn him an Honorary Knight Companion of the New Zealand Order of Merit.
New Zealand. Wellington. Oceania. (Photo by: Hermes Images/AGF/UIG via Getty Images)
But with such a wide variety of works, how is Robertson most likely to be remembered? Often times a philanthropist will hone in on one particular topic, and build a single foundation with a relatively narrow area of focus. Clearly this is not Robertson’s way. He may be starting a new foundation to tackle a new issue as you read this. Such a wide net makes it easy to overlook what might be his biggest impact – getting others involved. Awards like the Carnegie Medal of Philanthropy and programs like the Giving Pledge go a long way toward keeping the conversation about philanthropy going, but Robertson goes one step further. While the Robertson Foundation is the most visible of his efforts, the lesser-known Tiger Foundation could have the biggest impact on the future. Focused on breaking the cycle of poverty in New York City, it is notable not so much for its aims, but for its engagement. As Robertson says, “I started the Tiger Foundation because I knew we had so many talented people.” By bringing aboard top employees from his extraordinarily successful hedge fund, Tiger Management, the Tiger Foundation is stocked with top-level talent. More importantly, it is bringing new blood into the world of nonprofit work, perhaps laying the groundwork for the next Gates, Bloomberg, or Carnegie. The Tiger Foundation continues to thrive, and multiple new foundations have sprung up from it, including the Lone Pine Foundation, the Blue Ridge Foundation, and the Shumway Foundation.
“Give talented people the opportunity and they will make the most of it.” Julian Robertson Jr.’s lesson has been proven true time and time again. And that bodes well for the future of giving.
Western Indian Vegetable Products Ltd was an undeniably successful company. Successful enough that it allowed Azim Premji to live a comfortable life as a child in India, and later to have the enviable experience of studying engineering at Stanford University. But when his father suddenly passed away in 1966 during Azim’s senior year, it fell upon him to pick up the mantle and ensure that the company’s success would continue unabated. There was a need for leadership, and Azim quickly proved that he understood what had to be done. He used the opportunity to find more success than his father could ever have imagined.
Despite taking the reins at the young age of twenty-one, Azim had a head for business, and a sixth-sense for the best way to leverage a new opportunity. Immediately the company began to diversify, creating a portfolio that included toiletries, lightbulbs, and hydraulic cylinders. There was no reason to limit themselves to vegetable-based business – Western Indian Vegetable Products became Wipro, and Azim would soon become the “Indian Bill Gates” in more ways than one.
Bill Gates, Azim Premji , Melinda Gates and Warren Buffet during a press conference in New Delhi, Thursday, March 24, 2011. (Photo by Qamar Sibtain/India Today Group/Getty Images)
As the 1970’s drew to a close, Wipro focused more and more on computer hardware and software, in time becoming the IT consulting and systems integration company it is today. It became not just any tech company, but one of the largest in the world. And from early on, Azim had one eye toward giving back, years later telling the Associated Press, “I strongly believe that those of us who are privileged to have wealth, should contribute significantly to try and create a better world for the millions who are far less privileged.”
Through Wipro, Azim has been able to have a massive impact both philanthropically and culturally. Some Wipro initiatives, such as Mission 10X, which aims to increase the abilities of Indian engineering students, clearly fits with the company’s own interests. But there are also programs such as Wipro Cares, which works with employees to help provide disaster relief after devastating earthquakes or floods. The culture of responsibility pervades everything at Wipro, which is one of the reasons for both the company’s success, and its position as one of the top places to work in India.
‘Make in India’ initiative on September 25, 2014 in New Delhi, India. (Photo by Arvind Yadav/ Hindustan Times)
Azim’s generosity is not limited simply to the work done through Wipro, however. Founded in 2001, the Azim Premji Foundation is Azim’s way to pursue his non-profit passion, providing high quality universal education to all Indians. The Foundation works closely with the government in rural areas to improve the school systems, readily taking the opportunity to try new programs and projects that the government would never be able to fund on its own. This is no doubt a reflection of lessons learned from his upbringing. Azim told the India Institute of Management Bangalore, “My mother, a doctor, did not practice medicine. But she founded the children’s orthopedic hospital in Bombay, a one of its kind hospital in South East Asia, and devoted her life to raise funds to run it because government grants never came on time.”
So the “Indian Bill Gates” born in Bombay found massive success in the tech world and in quick succession became one of the world’s richest men and one of the world’s biggest philanthropists. He said that being rich ‘did not thrill’ him, and became the first Indian to sign the Giving Pledge, committing most of his wealth to charity. And while he knows his money will have an impact, he hopes that his example does too. After all, this is a man who changed a vegetable oil company into a wildly successful tech giant. Is it too hard to believe he might also change the face of philanthropy in India?
Where there is a will, there is a way. The U.S. federal government recently announced it will pull out of the landmark Paris agreement, but environmentalist Carl Pope remains hopeful. Cities and states give him hope, he says, as does philanthropy.
“We have a huge coalition of states, cities, private businesses, universities and churches that have said they want to do the right thing,” says Pope, who, along with the former New York Mayor Michael Bloomberg, authored the book “Climate of Hope.” “Philanthropy now has to shift its vision from how to persuade the federal government, to how do we enable local sectors – whether public or private – to implement changes that will reduce emissions.”
Michael Bloomberg at the C40 Cities climate summit in Johannesburg on February 5, 2014.
Pope, the former head of environmental organization the Sierra Club and a senior advisor to Bloomberg, says that philanthropy can show why clean energy is not only good for the environment, but is profitable.
“Philanthropy now has to be more in the business of enabling pilot projects to demonstrate how profitable all this is,” he says, “rather than persuading people to make a sacrifice based on the risks if we don’t act.”
There are many examples of how philanthropy has done this, Pope says. In India, U.S. philanthropists partnered with the private sector and the government to encourage production of energy-saving LED lights. Not only did the lights become cheaper as a result, enabling more people to access electricity, but India became a major producer of this technology. The market is the driving force now, he says, “but philanthropy had to prime the pump.”
Nick Nuttall, a spokesperson and director of communications and outreach for the UNFCCC, says there is a growing need for the UN to work with foundations and the private sector to fight climate change.
“Philanthropy can, by its very nature, sometimes do things and take risks that business itself doesn’t want to take in the absence of certainty, or maybe because of a policy vacuum,” he says. “Philanthropists can also operate in ways which aren’t just brutally financial. They may have other reasons for wanting to support climate change; it may be for social values, or gender, or women’s issues.”
John Coequyt, director of federal and international climate campaigns at the Sierra Club, says philanthropists like Bloomberg, Microsoft Co-founder Paul Allen and Virgin Group’s Richard Branson play a critical role that goes beyond dollars.
“There is definitely an element of actually being advocates for the changes that they want to see, whether that’s divestment on their side, or using their influence to get companies and governments to make decisions,” he says. “These are people who have influence and it’s really important that they use their influence to advance the goals their philanthropy is trying to achieve.”
Some philanthropists have been encouraging others to get involved. The presidents of the William and Flora Hewlett Foundation and the David and Lucile Packard Foundation – which are among the biggest funders in the climate change field – wrote an op-ed in 2015 urging philanthropists to step up, and pointing out that less than 2 percent of philanthropic dollars go to climate work. Hewlett Foundation President Larry Kramer recently outlined ways philanthropy can do more, such as by supporting nations and networks committed to the Paris agreement, rallying support from business associations, and working with banks and finance ministers to make investing in clean energy easier.
2016 contributions: $390.05 billion by type of recipient organization (in billions of dollars – all figures are rounded) Source: Giving USA 2017
Still, the money goes both ways. A 2015 report found U.S. donors gave more than $125 million over three years to spread disinformation about climate change and curtail progress.
It is difficult to say how much is going towards climate change today. But the latest Giving USA report found giving to causes supporting the environment and animals saw the largest increase among the various categories in 2016, at 7.2 percent.
Coequyt, from Sierra Club, says the day the United States announced it was withdrawing from the Paris agreement was the organization’s biggest online fundraising day of the year. But the need remains immense because the current administration may try to rewrite codes that protect everything from water, to air, and endangered species, he says.
“There is definitely need for federal defense and the scale of that is daunting,” he says, “but it is also true that no one should think that because of that attack, there isn’t an ability to make progress on climate change.”
Classes, tests, applications, planning – a lot time and effort goes into preparing for college. H. F. “Gerry” Lenfest took a different route, leaving high school and hitting the high seas for a job on an oil tanker before starting his first semester at Washington and Lee University. There was no doubt he was ready after the exhausting months on the Atlantic. But the time aboard the ship left an impression; after college he joined the Navy, serving for two years and remaining in the Navy Reserves for over two decades. And that trajectory encapsulates Gerry’s approach; challenge, opportunity, and sacrifice can all be indistinguishable if you approach them with the right attitude.
Throughout his life, Gerry’s ability to make the most of his opportunities have made him a very wealthy man. And thanks to his current plans, he is working on a different trajectory, doing his best to give away the vast majority of his wealth. He once said, “The ultimate achievement in life is how you feel about yourself. And giving your wealth away to have an impact for good does help with that feeling.” He has shown this propensity for generosity throughout his life, he solid his media company, Lenfest Communications, setting aside $60 million of the profits as bonuses for all the employees. He was sure to share the opportunity with all those who helped with the success.
Soon after this sale was when Gerry and his wife, Marguerite, decided that they would use their riches to ensure their children were provided for and give almost everything else away to good causes. The couple is not only donating money through their Lenfest Foundation, but are also personally involved with many of the causes, making it feel a little less like giving donations and more like expanding their family. Starting with the Lenfest Scholars program, they provide money to students in rural Pennsylvania to go to college. But more than just the funds, there is great emphasis on creating a network of Lenfest Scholars, ensuring that there is support and enthusiasm to see these students succeed.
Much of the work that the Lenfests have supported has been in the Philadelphia area, continuing the feeling of an extended family. They still live in the same house in the Philadelphia suburbs that they bought in 1966, and have been major patrons of the arts in their city. They also started the Lenfest Institute for Journalism, a unique nonprofit corporation devoted to local journalism. With this, Gerry was able to provide a support system for the Philadelphia Inquirer, the Daily News, and Philly.com to remain independent and connected to their hometown. The news industry faces unprecedented challenges, and the best journalism is an invaluable resource to the public and a critical part of the country as the fourth estate. The Lenfest Institute is ensuring opportunities to make an impact through reporting continue to exist.
The Lenfests’ philanthropy shows their commitment to those who work hard for the good of the country. As a former naval officer, Gerry knows sacrifice, and honors those who have done the same. He’s helped fund the Museum of the American Revolution and sits on its board, saying, “The lessons of the revolution, I think, are important to young people today. It shouldn’t be just a museum of artifacts, but of the principles of the founding. Liberty is not just liberty; it’s responsibility. You have to have a responsible citizenry.”
Gerry has been able to capitalize on his opportunities, and his legacy will be giving others a chance to do the same. Thanks to the Lenfest Foundation, schools in Philadelphia are given a boost, out-of-school programs have flourished, and young adults are getting career planning advice. The Foundation won’t last forever, but there is a good chance someone who got an opportunity thanks to Gerry will be around to give the next generation a leg up.
A New Landscape of Giving: Power, Policy, and Philanthropy
Competing views on the role of philanthropy in today’s political landscape took center stage at Carnegie Corporation of New York on Thursday as a panel of leading experts discussed the most pressing issues facing the sector and its role in society. The question at stake: is the unprecedented giving from Americans, billionaires, and ordinary citizens alike proof of the generosity and care of American civil society, or is it a symptom of a larger crisis of democracy?
Karl Zinsmeister, author of What Comes Next? How Private Givers Can Rescue America in an Era of Public Frustration, ignited the lively discussion, claiming that philanthropy is inherently egalitarian, serving as a democratic counterbalance to government power. “Philanthropy is the first crowdsourced industry in this country,” Zinsmeister said. “Philanthropy is a mosaic. It’s a lot of people working together in local areas with tremendous effect.” Later in the discussion he added that philanthropy “is the most radically decentralized sector in our country. This is the place with the least concentration of power of any place you can mention.” Zinsmeister believes that philanthropy—a multitude of even disconnected philanthropic groups—is better equipped than government to take on the challenges of the day.
David Callahan, author of The Givers: Wealth, Power, and Philanthropy in a New Gilded Age, was more critical. In his view, government is retreating from many of its traditional roles, and philanthropy is part of the problem rather than the solution. “Anybody who’s concerned about civic inequality caused by economic inequality needs to look at the philanthropic center as part of a broad reform,” Callahan asserted. “If you’re interested in reforming money in politics, you can’t leave out philanthropic money.” He continued that while philanthropy is generously subsidized by tax payers, philanthropists often don’t accurately address the concerns of the people they mean to serve. Without government leadership there will be negative consequences for society: “Increasingly, the wealthy wield a lot more influence in civil society, if you look at the statistics on charitable donations, the donations coming from wealthy Americans have skyrocketed. The amount of donations coming from ordinary Americans has gone down. That reflects inequality.”
Zinsmeister countered: it is the politicization of civil society, not money, that is the problem: “Money is overrated. Money is not the decisive influence it is sometimes portrayed as. The amount of money we spend on politics is less than we spend on chewing gum. . . . There is too little money in politics. Not too much. We have insisted on politicizing everything. If you can remove ideas and social projects out of the governmental sector and deal with them in other sectors, that political fire goes out.”
Meanwhile, Boston Globe investigative journalist Sacha Pfeiffer added that with virtually no government oversight of philanthropic giving or of the philanthropic sector itself, it is increasingly important for the media to act as a watchdog, making sure organizations meet their objectives, and retain the public’s trust. “Even when information is in the public domain, it doesn’t mean the public knows how to find it. It’s the responsibility of reporters to make sure the information is accessible.”
The debate about the role of philanthropy in an ever-changing political climate engaged the audience. About 100 people were in attendance at Carnegie Corporation of New York’s headquarters in New York City, and the event was live-streamed on Facebook Live.
After the conclusion of the panel discussion, 2005 Carnegie Medal of Philanthropy recipient Agnes Gund took the stage to announce this year’s recipients of the Carnegie Medal of Philanthropy.
Agnes Gund—an honoree herself in 2005—announces the 2017 Carnegie Medal of Philanthropy recipients, with Vartan Gregorian, president of Carnegie Corporation of New York, looking on.
The 2017 honorees are:
• Mei Hing Chak China; HeungKong Charitable Foundation
• H. F. (Gerry) and Marguerite Lenfest U.S.A.; Lenfest Foundation
• Azim Premji India; Azim Premji Foundation
• Julian Robertson U.S.A.; Robertson Foundation
• Jeff Skoll U.S.A.; Skoll Foundation
• Kristine McDivitt Tompkins U.S.A.; Tompkins Conservation
• Shelby White U.S.A.; Leon Levy Foundation
• Sir James D. Wolfensohn U.S.A. and Australia; Wolfensohn Center for Development
The Carnegie institutions will award the medals during a formal ceremony at The New York Public Library’s Stephen A. Schwarzman Building on October 3, 2017. Katty Kay, anchor of BBC World News America, will serve as master of ceremonies.
The Carnegie Medal of Philanthropy forum on the challenges facing the philanthropic sector featured: David Callahan, founder and editor of Inside Philanthropy; Sacha Pfeiffer, investigative reporter at the Boston Globe covering wealth, nonprofits, and philanthropy; and Karl Zinsmeister, vice president of The Philanthropy Roundtable. Moderated by Stacy Palmer, editor of the Chronicle of Philanthropy, the June 22 forum was held at Carnegie Corporation of New York’s headquarters in New York City.
