Reprinted from the Spring 2020 issue of Philanthropy magazine (PhilMag.org)
The Exchange
Compiled by A shl ey M ay
IDEA PUBLIC SCHOOLS from the Permian Strategic Civics and Debate Initiative. experience—and I’m not sure started with one campus in Partnership, a collection of oil The state effort aims to increase they always do.” 2000 serving three grades in and gas companies. test scores on civic literacy -Former Hewlett Packard CEO the Rio Grande Valley, and IDEA has additional and expand public-speaking Carly Fiorina has become one of the most growth planned throughout programs to all public-school successful charter-school Texas, Louisiana, and Florida. districts. “What Florida is YOU MAY HAVE READ networks in America. IDEA The Philanthropy Roundtable’s doing to bring civics and Karl Zinsmeister’s recent currently serves 45,000 former K-12 education director debate to every student is op-ed in the Wall Street students at 79 campuses. Dan Fishman is IDEA’s very innovative and should Journal, “The War on Since 2007, 100 percent of its in-house growth guru. Go, be a model for the rest of the Philanthropy.” Thank you for graduates have been accepted Dan! -Pat Burke country,” commented Marcus. all your responses, and for by colleges, with over 60 sharing the piece so widely. percent of them being the first ELSEWHERE IN ED, HEARD AROUND TOWN… Karl wrote a follow-up essay generation in their family to Nancy and Rich Kinder Philanthropy friend Denver for RealClearPolitics, which get higher education. finished out 2019 by gifting Frederick interviews funders we’ve adapted here for your Now, thanks to a $10 million to the University and charitable leaders on his enjoyment and concern. multi-year $55 million of Missouri to further bolster WNYM public radio show philanthropic investment the Kinder Institute on “The Business of Giving.” WILD AND WONDERFUL organized by the Scharbauer, Constitutional Democracy. (You can listen on line at West Virginia enacted Abell-Hanger, and Henry The gift will be used to create denver-frederick.com) the “Protect Our Right to Foundations, IDEA will two new degrees: a B.A. in Two favorite moments from Unite Act” to bolster donor expand its footprint in Constitutional Democracy recent episodes: privacy. ACLU West Virginia the far west of Texas. The and an M.A. in Atlantic supported the legislation— donors courted the proven History and Politics. Money “At Fidelity Charitable, we its policy director told operator with a request to will also go toward the require that people be active the West Virginia Gazette open 14 campuses in the Kinder Institute Residential grant makers. If they have that “the groups that Midland-Odessa oil belt. All College, and a study-abroad not made a grant within three people join are none of the of the schools will eventually partnership with Oxford’s years, we will take 5 percent government’s business.” serve grades K-12, offering Corpus Christi College. from their account.... If they This bill “reaffirms the vital high-quality education, in a Bernie Marcus is also don’t give the following year, freedom of association.” region that needs it, to as many investing in civics, announcing we’ll sweep the whole account We’ll be watching similar as 10,000 students by 2030. in January a $5 million gift and then grant it out to donor-privacy measures in The philanthropic partnership to the Florida Education charity on their behalf.” Yet other states. includes $16.5 million Foundation to fund a Florida this is rarely required: “We’re seeing, on average over the last MEANWHILE, CALIFORNIA’S decade, granting rates between LEGISLATURE is considering 20 and 24 percent per year.” a law that would give the -Pam Norley, president of state Attorney General Fidelity Charitable authority to collect donor information from “If someone decides to donor-advised funds. The join a board of a nonprofit, Alliance for Charitable they should take that board Reform is working with allies experience with every ounce in the state to protect donors of seriousness that they of all stripes who prefer to would take a corporate board remain anonymous. Pokusay Alexander / Adobe Stock
8 PHILANTHROPY No Giver Is Safe In our current socialist moment, roaders” in China) makes it easier efforts must be shut down, the value of volunteer time, pass a veritable race is underway to discard them. say the new activists, because willingly from generous helpers among journalists, academics, The deep odium for they undercut the revenue to others who are struggling. and politicians on the Left to personal wealth and private and authority of the federal Our long tradition of improving outdo each other in thundering problem-solving that is nursed government. Powerful interests society through the organic against business enterprise by fashionable chatterers ranging from elite media to private action of civil society, and personal wealth—and the today often surges into view Democrats running for President mostly on a local level, has long private charitable action that when businesspeople take insist that only government been one of the distinguishing flows from them. up philanthropy. Jeff Bezos officials should be allowed to strengths of our country. Nothing The Model U.N. program donates a million Australian improve public welfare and like our charitable sector exists now assigns “Toxic Charity” as a dollars to fire recovery and the reform society. in any other land. It is one of debate topic for schoolchildren. plute-smashers swing their These ad hominem attacks America’s most unusual, and The New York Times editorial axes. The $14 million Jack and sweeping arguments beautiful, anomalies. board has declared the Ma puts up for a coronavirus are gradually poisoning And here’s the most famed Carnegie Libraries a vaccine is characterized as a the American public on troubling aspect of today’s noisy “failure of public policy.” The pittance. David Rubenstein philanthropy. More citizens every attacks on philanthropy: They “Top Big Picture Trend” of offers to renovate the Jefferson year are being convinced that are utterly false in their most 2019, according to “Inside Memorial and other historical private giving is just a racket fundamental claim. Our giving is Philanthropy,” was today’s landmarks and gets attacked for run by moguls to aggrandize not dominated by crafty tycoons. “Backlash Against Philanthropy.” being a private-equity villain. themselves. A “billionaire boys Emphatically not. Names are being pried off For crusading against malaria, club” that numbs, deceives, The fact is, only 20 of college buildings, museums Bill Gates is portrayed as a and controls the rest of us. A percent of personal giving are getting picketed, companies vainglorious megalomaniac. means of deception and selfish in the United States comes are facing boycotts. Long-time As their real-world cure string-pulling, rather than a from the “plutocrats”—people tax protections for charitable for “uncontrolled” philanthropy, way of helping the country or making $1 million a year or giving, churches, and charities these critics now openly call for our fellow man. With this kind more. Fully 80 percent comes are being attacked and proposed confiscation of private wealth. of rhetoric constantly in the from non-millionaires. for repeal. Activists demand that “Say Bill Gates was actually media, cynicism about charity Indeed, the portion of government be given the right taxed $100 billion,” Bernie is swelling. Public views of individual philanthropy coming to appoint board members at Sanders tweeted recently. “We nonprofits are at a nadir, and U.S. from households with modest nonprofits. Privacy protections could end homelessness and giving rates are tumbling. annual incomes of five figures or for donors and charities are provide safe drinking water to This is deeply dangerous to less is close to twice as large as being eroded. No giver is safe. everyone in this country.” the nation—because energetic the portion coming from people A recent cover story in The same journalist who private giving is one of America’s in million-dollar households. See what’s left of Time magazine wrote the recent Time cover most valuable sources of data nearby. chirped excitedly that there story also authored a book ingenuity and social repair. Every Portraying U.S. private giving are now more than 50,000 savaging philanthropy. He single year, hundreds of billions as a Game of Plutes is not only “dues-paying members” of attributes to donors every of dollars ($428 billion last year), dangerous and un-American. It is the Democratic Socialists of imaginable motive—vanity, and hundreds of billions more in factually wrong.-Karl Zinsmeister America scattered across our cynical reputation laundering, fruited plain. The author is undemocratic manipulation, Percentage of personal philanthropy one of today’s most doted- drop-in-the-bucket cheapness— coming from U.S. households with upon critics of philanthropy, except altruism and good faith. five-figure annual income vs. millionaires and he urges “solidarity” with For these fashionable arguments “fresh” enemies of capitalism the work was anointed a “book of like Alexandria Ocasio-Cortez the year” by the Washington Post, and Bernie Sanders who will the New York Times, and NPR. “put American business in a Other critics make the same headlock.” He flames “plutes” (his arguments. Philanthropic giving sneer for “plutocrats” who are is “an undemocratic exercise of 36% 20% wealthier than him) in the hope power” which should be wielded that depersonalizing opponents only by the state, says Stanford’s $0-99k/yr $1m or more/yr (as was done with “kulaks” in resident philanthropy academic. Source: Author’s calculations from data in “Patterns of Household
Adobe Stock / Alexander Pokusay Alexander / Adobe Stock the Soviet Union and “capitalist Even well-intentioned charitable Charitable Giving 2007,” Center on Philanthropy at Indiana University.
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Big Idea Treat Veterans as Resources, Not Recipients Many veterans are well- organizations, which too often These organizations echo THE ELI AND EDYTHE equipped to take leadership act like rent-seeking interest the words of Navy veteran John BROAD FOUNDATION roles in American society. FedEx groups. There is an outsized F. Kennedy: “Ask not what your made a $100 million year-end and Walmart were founded by focus on what veterans require, country can do for you, but what grant to Yale University veterans. Political philosopher rather than on their capabilities you can do for your country.” to create a tuition-free John Rawls was a veteran. Clint and what they can contribute. Each of these organizations, master’s degree within the Eastwood, Paul Newman, Jimmy Our country needs these in various ways, promotes the School of Management for Stewart: all veterans. Of the 45 storied organizations to idea that the best way to serve superintendents and senior Americans who have served as recover their historic mandates veterans is by asking something leaders in public schools. President, 31 have been veterans. in leadership development and from them—encouraging them It’s the largest gift ever But today we live in community service. And we to become the leaders they are received by the Yale school, a disconnect between the need entirely new nonprofits trained and tempered to be. and creates successors to victim culture that’s become that help veterans lead, Commentators from across the Broad Academy and the so dominant and the reality of rather than training them to the political spectrum have Broad Residency—which, what veterans can contribute receive. The V.A. has become bemoaned the challenges starting in the early 2000s, to American society. The policy by far the largest and fastest- facing America: political trained more than 850 apparatus in Washington, growing civilian bureaucracy polarization, a hollowing-out of leaders for the hard work aided by sensational in Washington, a bloat which civil society, ineffective public of school reform, including journalism, and also by parts is not sustainable. Far more schools, loneliness and isolation, over 70 who currently run of the charitable-industrial importantly, veterans who truly substance abuse, fatherlessness, state or municipal education complex, have created a need help are now choked in cycles of poverty, declining systems, and many leaders of popular image of veterans a system clogged with people knowledge of civics, and so pioneering charter schools. centered on their alleged who have been talked into forth. Imagine a country where dysfunctions and brokenness the idea that they need to get veterans are equipped and sent IN OUR FALL ISSUE we and needs. Hard data show that onto the gravy train. Most vital out to change those things. told you about a lawsuit veterans score significantly of all, our fractured country It is not a pipe dream. filed by Hillsdale College better than non-vet peers needs the civic leadership and Many of those who have worn against the University of on most social indicators. community glue that veterans the uniform have courage, Missouri alleging misuse Yet incessant questing after can provide. resiliency, capacities to of a $5 million endowment ever-larger entitlements and Veterans want this, too. inspire, and a patriotism that bequeathed by Sherlock benefit payouts has created Over the past decade, new vets America can use today. We Hibbs in 2002. A 1926 the impression that PTSD, organizations have sprung up must stop treating these men graduate of M.U., Hibbs homelessness, addiction, to fill the self-improvement/ and women as problems, and stipulated that the gift violence, and other maladies civic-improvement roles instead mobilize them to create be used to create six afflict most vets, and that abandoned by the legacy solutions. Previous generations professorships filled by veterans as a group must be organizations. These new of veterans viewed individual disciples of the Ludwig von viewed as clients rather organizations emphasize work, success and civic leadership as Mises school of economics. than climbers. community and public service, natural civilian follow-ons to In an unusual move, Hibbs Our veterans-service camaraderie, and personal their armed service in behalf of named Hillsdale College organizations once promoted development as mechanisms American institutions and ideals. as a contingent beneficiary, veterans into civic leadership to help veterans thrive. They Paradoxically, they thus empowering Hillsdale and used their associations do almost no lobbying or discovered in the process that to monitor whether Mizzou to contribute broadly to political advocacy. Instead, they helping others thrive, and build met the conditions of his American civil society—with have attracted hundreds of character, and live safe lives is gift. Hillsdale eventually many positive impacts still thousands of younger vets by also a great path to personal sued Missouri for violating reverberating today. But providing creative ways to help satisfaction, healing, and Hibbs’ donor intent. The the post-Vietnam focus on them connect with peers, thrive growth. It is time to recover that gift terms provide that if expanding benefits has now as individuals, and serve the vision for a new generation. the giver’s instructions are become all pervasive for these country and local communities. -Shaun Rieley ignored, the funds spent to / Rawpixel.com Pokusay Alexander / Adobe Stock
10 PHILANTHROPY (and take legal action if needed) is not common My short answer is “Yes. It date (over $4 million) plus practice, in this case it is as bad as it sounds.” It’s all funds remaining in the successfully limited further not unusual to ask questions endowment (now over $9 erosion of a legacy. It may about the relationship million) should transfer to be an effective way in other between religious institutions Hillsdale College. circumstances to ensure that and the state. It is highly In December 2019 the a trusted organization has unusual for a faith-focused two institutions announced standing in court to enforce publication to give air time to that they reached a settlement a donor’s wishes years after a the opinion that, and I quote stipulating that Hillsdale gift is made. -Joanne Florino the author here, “It might will receive $4.6 million— not be such a bad thing to half of the remaining CONDOLEEZZA RICE lose tax-exempt status.” This A CLARENCE THOMAS endowment. The University will take the reins at the cavalier argument has caused film is about to debut on of Missouri has promised to Hoover Institution come consternation among people PBS. Philanthropy asked our hold a symposium focused September. Rice states that of faith and donors all across movie maven Madeline Fry to on Austrian economics at “both the Hoover Institution the country. investigate and report back. least every two years, while and Stanford University are Just to clarify: religious Here’s what she found: insisting that its spending places that believe in the institutions, and nonprofits has been “consistent with study and creation of ideas writ large, are not tax exempt Hibbs’ intent.” Explaining that define a free society. because the government When Michael Pack heard why funds are being shifted, The nurturing of these ideas, deems them “good” enough that Clarence Thomas was Hillsdale president Larry the value of free inquiry, to warrant a “subsidy.” That’s tired of his narrative “being Arnn provides a different and the preservation of open not the U.S. legal structure told by his enemies,” the perspective: “Colleges— dialogue are the backbone of we operate in. Our freedom producer decided to make a including the University of democracy.” May it be so! of association permits the documentary about him. In Missouri—are free to refuse creation, and funding, of Created Equal: Clarence Thomas gifts if they will not commit SEVERAL READERS have institutions regardless of their in His Own Words, Pack let our to fulfill the donor’s clear asked me what I think of the adherence to government’s nation’s most enigmatic justice intent. What they are not free cover story in Christianity agenda of the hour. That’s speak for himself. to do is to pledge one thing to Today, “The Hidden Cost of why we call it the “third” or The two-hour film lets a donor and then do another.” Tax Exemption: Churches “independent” sector. Thomas and his wife Virginia Although naming a may someday lose their For an easily digested talk about everything from contingent beneficiary to tax-exempt status. Would legal explanation, I highly Thomas’s childhood to his monitor the original grantee that be as bad as it sounds?” recommend Alex Reid’s political evolution and tenure essay in the Almanac of at the Supreme Court. Over American Philanthropy—his a six-month period, Thomas argument heavily shapes my granted the filmmaker 30 hours own thinking. The essay is of interviews. called “Why is Charitable Dallas philanthropist Activity Tax-Protected? Harlan Crow, who donated a (Think Freedom, Not few hundred thousand dollars Finances).” Even if you to the project, says letting don’t own an Almanac you Thomas tell his own story was can read the chapter at the right approach. “That was AlmanacOfPhilanthropy.org/ an unusual idea,” he says, which Taxes. And if you feel ready to produced a “terrific” story. bite somebody—I sympathize Thomas tells his tale with you. I recommend a long chronologically, beginning with Adobe Stock / Alexander Pokusay / Rawpixel.com Pokusay Alexander / Adobe Stock walk, fiction, and kombucha. his birth in Pin Point, Georgia,
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in 1948, years before the South was desegregated. He grew up registered Democrat, I was with two siblings and a single left-wing, and as nice as he mother, eventually going to live was, he was still a Republican.” with his grandparents when Thomas went on to work he was seven. Given the way at Monsanto, where he chafed ROUNDTABLE GATHERINGS he talks about his grandfather at the “golden handcuffs” of a it’s crystal clear why he titled “comfortable but unfulfilling October 14: K-12 Education Preconference, his 2007 memoir (from which life.” So in 1979, he returned Naples, Florida he reads throughout the to work for now-Senator October 14-16: 2020 Annual Meeting, Naples, Florida documentary) My Grandfather’s John Danforth as a legislative November 5-6: Philanthropic Strategies for Son. His grandfather taught aide. The next fall, he voted Strengthening Medical Education, Austin, Texas him faith, a work ethic, and for Ronald Reagan. “I was tough love. distressed by the Democratic Thomas’s politics, Party’s promises to legislate To view more details and to register, visit however, were in deep the problems of blacks out of PhilanthropyRoundtable.org and click on “Events.” flux for many years. He existence,” Thomas says. Soon describes how he evolved afterward, he was attacked in from an aspiring priest, to a newspaper article for voting hearings,” Thomas quips, “is hundred thousand to a a Marxist and supporter Republican as a black man. you have to sit there and look few million dollars. Private of the Black Panthers, to From then on, Thomas attentively at people you know foundation funding is especially a “lazy libertarian” at Yale. pivots his story to the tumult have no idea what they’re crucial for projects heading to After he graduated with his that has been his public talking about.” public television. He hopes his law degree he accepted a job life. The biggest draw of The documentary, now film will encourage more givers offer from Missouri Attorney Created Equal is Thomas’s in theaters, will air on PBS to invest in films. General John Danforth with responses to the attacks in May. Pack, who directed, Documentaries also mixed feelings. It was a good that have dogged him for wrote, and produced the need help after production position, but “the idea of years, especially concerning documentary, has also created is completed. Films can’t working for a Republican his confirmation hearing. a dozen other documentaries change the world unless was repulsive at best. I was a “One of the things you do in that aired on public television. they get viewed. Kim “I believe conservatives should Dennis, president of the try harder to get their films Searle Freedom Trust, DONATIONS BY PROFESSORS broadcast on PBS,” he says. says her group contributed The National Association of Scholars has just published a “Millions of people see it.” $200,000 to help distribute study of recent political donations by thousands of professors Tom Klingenstein, and advertise Created Equal. at colleges and universities, as collated by the Federal Election another donor to the film, says “We were able to see a rough Commission. The findings: he hasn’t typically invested cut of the film, and knew in documentaries, but he how good it was, so we were couldn’t pass up Created Equal. delighted to be able to help “I think he has a great story.” them out with a grant for donated to Klingenstein was impressed by marketing,” she says. Democrat the film’s focus on Thomas’s Thanks to a handful of candidates (2,081) grandfather. “Without the givers, our Supreme Court’s grandfather, as I understand longest-tenured sitting the story, Thomas wouldn’t be Justice is speaking out in where he is. It speaks to the a way he never has before.
donated to importance of parenting.” Coming to a theater and PBS Republican donated Pack notes that station near you. candidates (22) to both (9) philanthropy plays an important Send future leads for role in the production of The Exchange to: editor@ Source: “Partisan Registration and Contributions of Faculty in documentary films, which PhilanthropyRoundtable.org Flagship Colleges,” Mitchell Langbert and Sean Stevens. generally cost from several
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