The Game of Philanthropy”

Home , Barrel of Monkeys, Boggle, Bop It, Charades, MVP Baseball (series), NBA Street V3

“The Game of Philanthropy”

September 2008

Jeff Lawrence

game n. 1. an activity providing entertainment or amusement; a pastime: 2. a competitive activity or sport in which players contend with each other according to a set of rules.

philanthropy n. 1. the effort or inclination to increase the well-being of humankind, as by charitable aid or donations.

Tag, Jump Rope, Dodgeball, Kickball, Tetherball, Foursquare, Hopscotch, Marbles, Red Light Green Light, Hide and Seek, Duck Duck Goose, Pickle, Horse, Capture the Flag, Candyland, Barrel of Monkeys, Chutes and Ladders, Operation, Connect Four, Spin the Clue, Scrabble, Mousetrap, Aggravation, Boggle, Battleship, Twister, Bop It,Bottle, Hot Football, Volleyball,Charades, Baseball, Parcheesi, Softball, Monopoly, Hockey, Chess, Basketball, Checkers, Soccer, Backgammon, Potato, Pin the Track and Field, Bowling, Golf, Tennis, Car Racing, Billiards, Lacross, Go, Life,Tail on the Donkey, Pong, Tank, Death Race, Sea Wolf, Space Invaders,Cricket, Skiing,Stratego, Musical Asteroids, Galaxian, Lunar Lander, Asteroids, Battlezone,SwimmingRisk, and Yahtzee, Chairs, Red Bezerk, Centipede,diving, Snow-Puzzles, Trivial Gran Turismo 4, Dragon Ball Z Budokai 3, Final Rover, Mother Tag, Jump rope, Dodgeball, Kickball, Tetherball, Foursquare, Hopscotch,boarding, Pursuit, Fantasy XII, Doom 3, MarioMarbles, Kart, Red light greenFinal light, FantasyHide and seek, DuckVII: Defender,duck goose, Pickle, Horse, Capture the flag, Spin the bottle, Hot potato, Pin the tail on the donkey, Musical Dominoes,May I, Simon Says, Red rover, Mother may I, Simon says, King of the hill, Marco polo Badminton, Advent Children, Animal chairs,Crossing, Red rover, Mother Age may of I,Missile Simon Empires says, KingCommand, of the hill, Marco polo Sorry, Twister,Heads Up III, Super Mario 64, World of Warcraft, Star FoxPac-Man, Boxing, Cycling, Taboo, Simon,Seven Up Assault, Star Wars Republic Commando, Yoshi RallyFencing, X, Field Risk, Pictionary,King of the Hill, Touch & Go, Donkey Kong Jungle Beat, The Sims 2,Tempest, Hockey, Martial Mr. PotatoMarco Polo, NBA Street V3, Paper Mario: The Thousand-Donkey Year Kong,Arts, Rowing, Head, Topple,Sardines, Door, The Legend of Zelda, SOCOM 3: U.S. Navy Frogger,Surfing, Polo, Uno, Fish, Limbo, Seals, MVP Baseball 2005, Resident Evil 4, GrandMousetrap, Paintball, War, Hearts,Freeze Tag, Theft Auto, Area 51,Dig Dug,Water Polo, Old Maid, Poker, Shark Madden NFL 2006, Jak 3, WWE SmackDown!Pole vs. Position, Ice Skating, Blackjack, Ghost in RAW, Ratchet and Clank: Up Q*Bert,Gymnastics, Solitaire,The Dark,

Game board End of game

Fill needs Fix problems Change views, values or beliefs

Rules, Constraints, Boundaries

Non persistent Context sensitive

Game pieces Strategy People Competitive and/or cooperative i Data, information, Playing time knowledge, experience Indeterminate Technology Intra generational or inter Capital generational

Source: Guidestar , Foundation Center

Individuals

Advisors

Legal Donor Corporation Community Public Private Advised Government Foundation Foundation Foundation Foundation Fund Accounting

Financial

Insurance

Non-profit Program

Development

Information Technology

Other

Society Legislature Regulators

There are a lot of broken things and a lot of people trying to fix them The battles to fix the broken things are very asymmetric Foundations, corporations and individuals cannot assume all of the responsibilities government is shedding The non-profit world (grantors and grantees) is very fragmented Non-profits have been wounded by scandals and are politically weak People in the non-profit world are passionate, articulate and generally committed to doing good Many non-profits (operating and non-operating) seem to be very personality driven and without clear succession plans Understanding, measuring and comparing the effectiveness, success and return on investment of programs is quite often difficult Funding and forums to pass on lessons learned seem to be scarce

altruism n. 1. unselfish concern for the welfare of others; selflessness.

The theory The reality Evolutionary biology suggests People will often act against people should only help genetic their own self interest relatives and not others People will cooperate with others and punish those who don’t even when they have nothing to gain People trust others when they should not True altruism appears to be part of human nature Why?

Ensures continuation of Why? common genetic material into the future Anthropologists, biologists and scientists don’t know for sure

Gender Race Social Learned Age Cultural Education Economic Taught Occupation Economic

Individual

Reputation Values Anarchy Moral beliefs Dictatorship Ethical beliefs Christianity (33%) Oligarchy Islam (22%) Theocracy Hinduism (15%) Monarchy Non-religious (14%) Direct Democracy Political Religious Buddhism (6%) Indirect Democracy Chinese Traditional (4%) Plutocracy Primal Indigenous (3%) Aristocracy Other (3%) Meritocracy Stratocracy

Attended church Attend some church Food to mission Food to mission Food to mission Community service Volunteered at public Volunteer at public Family foundation Time schools schools Volunteered to coach Letter writing and visits sports to elderly Volunteered for scouts Family foundation Lobbying

Food to mission Food to mission Gave to homeless Gave to homeless Gave to church Gave to church Money Gave to family Gave to charities Gave to public schools Gave to employees Family foundation

Generation -1 Generation 0 Generation +1 Parents Ourselves Children

People born Total Wealth Transfer to Transfer Charities August 24, 2000 (1998 – 2052) (1998 – 2052)

1906 - 1925 $3.5 trillion $0.4 trillion 1926 - 1945 $15.6 trillion $2.3 trillion All adults as of 1998 $41.0 trillion

Transfer Accumulation DealDeal closed closed Creation

Based on: http://www.bc.edu/research/swri/

Possible Paths

Ad-hoc gifts What w e have What w e need Gift to non-profit Gift to public foundation Gift to community foundation Form private family foundation Considerations

Self interest (family) Those we know (business and friends) Those we don’t know (everybody else)

“When you learn, teach. When you get, give.” - Unknown

9 Create legal structure 9 Fund the foundation 9 Publicize the foundation 9 Understand the needs, problems and issues that are out there 9 Decide what interests us and where we Intel think we can make a difference 9 Learn how to judge requests and make grants 9 Meet with people and do site visits Trillium 9 Learn about non-profit accounting and taxes 9 Select a financial manager 9 Establish an investment policy 9 Manage our assets Family Foundation 9 Manage and review our grants Trusts 9 Attend conferences 9 Let others know about our activities 9 Plan for succession 9 Learn how to make socially responsible investments 9 Governance 9 Pass on what we’ve learned and keep learning

10,882 Family Foundation Giving $10,000 Total US Giving (billions) (2003) (2003) $4,000 $3,500 Individuals $179.36 $3,000 $8,000 Foundations $2,500 $266.40 Bequests $2,000 Corporations $1,500 $26.30 Volunteer time Billions $6,000 $1,000

$21.60 Giving (millions) Total $500 $13.46 $0 $0 - $1M - $5M - $10M - $100M > $1

$4,000 $1M $5M $10M $100M - $1B billion Family Foundation Assets 20000 18000 17,546 GDP of only 14 Foundation Giving 2,156 countries > 507 4% (2002) 16000 $2,000 8% GDP of only 59 14000 countries > 30 GDP of 93 largest 11% Independent 12000 507 coountries Corporate 10000 30 10 0.00025 $0 (????) Community 8000 6,601 Operating 6000

77% foundations Number of family 4000 US GDP 2000 1,588 1,846 Foundations 212 0 11 Total VC Investing Source: Foundation Center Lawrence FoundationLawrence

Total Charitable Giving Source: Foundation Center US Federal Expenditures

Source: Foundation Center, World Bank, PricewaterhouseCoopers MoneyTree

Filling needs -> Solving problems -> Addressing issues

Problems -> Ideas -> Views, values and beliefs

Immediate -> Short term -> Long term

Grants Direct

Unsolicited Solicited

Program Operating

Single year Multi year

Environment, Environment, Education, Education, Human Human Services Services

Time

Learning Understanding “Knowing”

What we hope for What we get To help others make the world Plaques, articles, a better place acknowledgements To pass on some of our Honorary / advisory boards and knowledge and experience committees To learn Knowledge and experience An occasional thank you Good feeling

Right way Wrong way

Make it real Get greedy Be honest and tell us the good and the bad Get impatient Don’t respond or answer Teach us if we want to learn our questions Push back if we go too far Be unrealistic Take some risks Don’t do your homework Understand our frames and and know our guidelines language

Business Non-profit People Strong, transparent, predictable, and Strong, transparent, predictable, and ethical management team. Team gives a ethical management team. Team voice to the vision, gives purpose to the gives a voice to the vision, gives organization and serves the purpose to the organization and stakeholders. serves the stakeholders. Vision Addresses a real problem or need for Addresses a real problem or need for change. Is realizable, easy to change. Is realizable, easy to communicate and has good timing. communicate and has good timing. Opportunity Large and identifiable addressable Identifiable need, problem or issue. market. Value Real and understandable. Good product Real and understandable. or service value and strong, defensible market position. Execution Strong, growing and consistent revenue Strong, effective and consistent and earnings performance. performance. Exit Understandable story and strategy Understandable story and strategy to leading to a future liquidity event. fill the need, solve the problem or change views, values or beliefs about an issue.

A Home Away from Homelessness, American Friends Service Committee, American Lung Association, Bright Beginnings, Amity RegionalJune School 2005 District Grant No.Cycle 5, Anchorage (one of two Waterways cycles Council,per year) Arts and Curriculum Institute at Skidmore, Association House of Chicago, Classroom Central, Clean Air Council, Clean Water Network, Clinton Community Nature Center, California Nursing Students' Association, Cockroach Bay Users Group, Council for Educational Opportunity, Braille Institute, Crafts for Economic Empowerment, Delancey Street, Denver Kids, Denver Zoological Foundation, Deputy Educating Among the Facts of Life, Desert Area Resources & Training, Destination Conservation, Developer Earthership Concept, Dogwood Alliance, Edison Wetlands Association, Elyria Schools, Enersol, Engineers Without Borders - UC Santa Barbara Chapter, Environmental Advocates, Environmental Association for Great Lakes Education, Environmental Defense Center, Children’s Organ Transplant Association, Epiphany Development Office, Espanola Valley High School, Eton Academy, Fredericksburg Counseling Services, Friends of Living Oregon Waters, Friends of the Sea Otter, Gads Hill Center, GOALS, Green Corps, Good Shepherd Housing and Family Services,

Great Old Broads for Wilderness, Guildhaus,1 ½ feet Hampton Roads Youth Center, Hampton Roads Youth Center, Hancock County Soil & Water Conservation District, Harvard Medical School CCCEC, Improve Lower Scott Lake Foundation, Providence St. Josephs Foundation, Indiana Council for Economic Education, Internal Insights, International Fund for China's Environment, Iowa CCI, Island Alliance, J.C. Hispaniola, Joe DiMaggio Children's Foundation, John Barrett Middle School, Center for Rural Affairs, Kau AgroForestry Association, Louisiana Bucket Brigade, Kearney Performing Arts Center, Louisiana Bucket Brigade, Los Angeles Free Clinic, Maharishi School of the Age of Enlightenment, Maharishi School, Maine Audubon, Mediation Center of North Carolina, Mentor St. Louis,Requests Mentoring Associates, (over 200) Ohio Literacy ResourceGrants (about Center, 10)Orangutan Foundation International, Olive View-UCLA Medical Center Foundation, Operation U Turn, Orange County Rescue Mission, Orange County Therapeutic Children's Arts Center, Pancreatic Cancer Action Network, PKD of Virginia Foundation, Planet Drum Foundation, Portland Impact, Progressive Economics of Environmental Protection, PRBO Conservation Science, Precious Gems SupporInstitutiontive Services, Project Parents,Acceptance Refinery Rate Reform Campaign, Resource Conservation Information Institute, Resources for Child Caring, Riveredge Nature Center, Sacred Art Rain Forrest Action Network, SAE Foundation, Saint Mary's College,VentureSalvation Capital Army, TheSan Diego Teen Court, San? Francisco River Association, Save the Whales, Save the Wild Chinchillas, SayThe No, Lawrence Stop Now!, Foundation School of Aquatic and Fishery Sciences,5% Seacology, Search Dog Foundation, Search Out Another Road (SOAR), Seeing Eye, Springfield-Greene County Park Board, Foundation for Osceola Education, Stone Soup, Baykeeper, Friends of RookeryHarvard Bay, Jewish Federation, Los Angeles Mission, Stanford10% University, Mental Health Association of Licking County, Urban League ofUS the Military Pikes Peak Academy Region, Volunteer Center, Wellness Community,11% Turing Point Enterprises, Vantage Point Charter School, Venice Family Clinic, Virginia Living Museum, Venice Free Clinic, Volunteers of America, Wantilan Teja Samudragiri, Washington AssociationStanford of School University Business Official, Washington Toxics13% Coalition, UCLA, Watermark Project, Tulane Environmental Law Clinic, WatersMassachusetts Edge Community Institute Elementary of Technology School, Salvation Army16%, Woods Hole Research Center, Word Xeriscape Council, YES! To Youth, Youths Initiative Development Foundation, Women at Work Source: US News and World Report GameOfPhilanthropy 1.6 © 2008 Oceanpeak, Inc. All Rights Reserved. 18 What has been the good and the bad?

Good Bad

Saying yes Saying no The people Not having enough to go around The passion The pace The learning The odds The hope and faith The clueless and those who What unites us should know better

Newspaper reports published between 1995 and 2002 of incidents involving criminal and civil wrongdoing by officers and directors of charitable organizations

Activity Incidents Criminal activity 104 Breaches of the duties of loyalty and 54 prudence––self-dealing, failing to carry out the mission of the charity, and negligent management of assets Both 6 Source: Hauser Center for Nonprofit Organizations

Some short parables

“The swing set” – what unites and divides us “The Sav-on parking lot” – don’t assume or underestimate “Parauresis” – don’t judge “Treasury regs” – sometimes, no one really knows “But, its my money” – no its not “The Seed Lady” – the power of personality “The California Grey’s”– the universe breathing “Remix” – the repackaging of a story

The game is too slow The fundamentalism of the market requires more business people in non- profits as players Winning is going out of business, some non-profits are too interested in staying in the game Many non-profits are fighting to win the battles, not the war Government is changing the rules with more unfunded mandates and shifting services, non-profits should become more active with policy makers and media (i.e. get more political) New metaphors are needed (e.g. music, art) Grantseekers and grantmakers are spending inordinate amounts of time and energy finding each other, applying for grants and managing grants Non-profits should be using more technology pieces (e.g. social networking, online applications)

“Whoever decides what the game is about also decides who gets into the game.” - E.E. Schattschneider

Key Findings Recommeded Practices

• Enormous variability • Begin from zero • Requirements aren’t “right-sized” • Right size grant expectations • Insufficient net grants • Relieve burden on grantees • Outsource burdens • Make communications and • Trust undermined grantmaking process clear and straightforward • Reports on a shelf • Fundraising gymnastics • Due-diligence redundancy • Double-edge swords • Time drain for grantmakers

Source: Drowning in Paperwork, Distracted from Purpose – www.projectstreamline.org a collaborative initiative of the Grant Managers Network and others

Background Reasons

Technology Save time Software Save money Open standards and Improves visibility technology Improves grantmaker Family foundation transparency 1000’s of applications Improves grantseeker and grantmaker experience 1000’s of grantseekers Decreases opportunity cost College aged children Common App

“Intuition is linear; our imaginations are weak. Even the brightest of us only extrapolate from what we know now; for the most part, we're afraid to really stretch.” - Rafe Needleman and Ray Kurzweil

Web-based service that can be used by grantmakers to receive, review, track, and manage online grant applications from grantseekers.

Grantseeker Grantmaker

Grantseeker Common Grant Grantmaker ApplicationInternet

Grantseeker Grantmaker

Online Online Common Application Grant Management

Grantseekers Grantmakers

No software to purchase or No software to purchase or install, Web-browser based install, Web-browser based Review the background and Review the background and interests of grantmakers activities of grantseekers Manage contact, organization Specify funding interests background, program, and Receive, track, and manage background information applications and supporting Upload documents materials Submit, track, and manage Collaborate with one another applications to grantmakers Export applications and other Collaborate with one another reports into business information systems Small per application fee (unless waived by grantmaker) Small asset based monthly subscription fee

It’s all about people People will surprise you You can’t do it all by yourself Never stop listening and learning Understand the frames and languages of others Communicate, communicate, communicate Look forward and think backward Pick a direction, stay focused and keep at it Stay flexible and adaptable Stay true to your values and principles Learn from the differences Embrace the surprises Some luck is important

“Anyone who has never made a mistake has never tried anything new.” - Albert Einstein

Walk to the edge. Listen hard. Practice wellness. Play with abandon. Laugh. Choose with no regret. Continue to learn. Appreciate your friends. Do what you love. Live as if this is all there is.

- Maryanne Radmacher-Hershey

Web-based service www.commongrantapplication.com Opened to users October 2007 for grantseekers, summer 2008 for grantmakers Current number of users 4000+ users (grantseekers and grantmakers) Founders Jeff Lawrence and Lori Mitchell

Private family foundation (non-operating) www.thelawrencefoundation.org Grant themes Environment, education, human services Initial funding Funded in 2000 with Intel stock resulting from the sale of Jeff’s Los Angeles based company to Intel Corporation in August 2000 Grants made Grants and commitments worth over $3 million made since inception in 2000 Trustees Jeff Lawrence and Diane Troth (husband and wife) Executive Director Lori Mitchell

Jeff Lawrence President Common Grant Application 530 Wilshire Blvd Suite 207 Santa Monica, CA 90401 Main Phone: +1 (310) 490-1277 Email: [email protected] Web: www.commongrantapplication.com

All trademarks referenced herein are trademarks (registered or otherwise) of the respective trademark owners.