1 Spring 2012 Philanthropy in Action Contact Information

SPRING 2012

PHILANTHROPY IN ACTION

CONTACT INFORMATION Instructor Maxim Thorne Yale University Email: [email protected] Telephone: (202) 460-4966 Office: Yale College Dean's Office 1 Prospect Street, SSS 102 New Haven, CT 06520-8241 Office Hours: By appointment Invitation: I invite students enrolled in this course to join me for a casual lunch in small groups of five sometime in September. Please schedule our lunch by groups through ClassesV2 site "Forums" tab. Guests: Over the course of the semester we will have workshops (that are filmed) with some of the world greatest philanthropists. You are asked to participate in the conversation and to use these conversations as primary source material to be incorporated in your work.

COURSE INFORMATION

Description: This course explores how philanthropy has operated at the intersection of the United States Constitution and the political process—specifically in selecting and regulating philanthropic leadership and opportunity, amending the constitution and changing laws, and defining the respective functions of the three branches of government—and analyzes in these settings how politics inform and constrain philanthropy and related laws in the United States.

We will see how individual and then mass philanthropy attempted to change some of the fundamental social and political dynamics that shape the day-to-day quality of life of Americans and their long-term trajectories of opportunity. We will explore the interplay of the private, public, nonprofit and philanthropic sectors. Students will look at modern philanthropy stepping onto the larger stage of public policy, civic relationships, and economic systems “in order to shatter calcified patterns of “injustice.”

The Constitution helps frame philanthropic space even as its contours are themselves shaped by the private and political process. This enduring and always evolving relationship stands at the base of the American philanthropy project—and it is the font from which spring the values and principles that underpin American philanthropy.

This course examines the foundational values and principles of philanthropy in America through the lens of historical and contemporary law and politics. We will discuss the great philanthropic moments from the birth of this nation to the present. Topics will include the American Revolution, Slavery, Abolitionists’ Trusts, post Civil War philanthropic compromises, Reforms, HBCUs, constitutional transformation, Hooverism, Tax dodges, The New Deal, Federal Bailout and Mortgage Foreclosure, Citizens United, and social change.

In addition, students in Philanthropy in Action have the opportunity to award $100,000 at the end of the semester to cause(s) and organization(s) of their own choosing. They will design their own metrics and solely be responsible for the deciding whom to fund. They will address Aristotle’s observation: “To give money is an easy matter in any man’s power. But to decide to whom to give it, and how large and when, and for what purpose and how, is neither in every man’s power nor an easy matter. Hence, it is that such excellence is rare, praiseworthy and noble.” (384-322 BC)

COURSE INFORMATION Meetings: F 2:00-4:50pm; Additional time may be required to participate in discussions with philanthropists. Nature, Amount of Work and Evaluation: Class Participation – Class participation is necessary for optimal seminar experience. Students should be prepared to discuss all the assigned reading assignments and participate in class discussions. Class participation and performance may also be considered to adjust final grades either up or down one grade increment. Class participation will be worth 25% of final grade. Attendance: Students are expected to abide by the ABA requirement of “regular and punctual class attendance,” in ABA Standard 304(e). Please inform me or the Dean for Students of any anticipated absence(s) prior to the class you expect to miss. Short Assignment – A brief writing assignment of 3-5 pages will be required before midterm. This short assignment will be worth 5%. Class Presentation – Student Teams will make brief oral/multimedia presentation to the class on a chosen topic relating to a charity and/or issue. This presentation is worth 10%. Mid-Term Paper 3-5 pages. Mid-term will be worth 10% of final grade. Final Paper/Project –Final Paper will be worth 50% of final grade. Conferences/Consultations: Instructor will provide opportunities to conference individually with students to discuss drafts of Final Paper. Media: Laptops are permitted but discouraged. Class discussions will be more enjoyable and useful for all of us if we pledge to commit our undivided attention to each other. No recording devices may be used without permission. Philanthropic Engagement: Students may be able to engage directly in philanthropy by giving $100k at the end of the semester to charities of their choice. Students will develop metrics determine what appropriate charity(ies) to fund and in what amounts. Guests/Mentors: Harry Belafonte, Bruce Cohen, Donna Dubinsky, Daniel Schwartz, Julian Bond, Mimi Gardner Gates, Liesel Pritzker and Ian Simmons, Jesse and Betsy Fink, Julian Balandina, Beth Neville Evans, Inge Reichenbach, Tim Gill, Ted and Nina Wells, Luis Ubinas, Mo Ibrahim, Muhammad Yunus, Joshua Mailman, Jon Stryker, the Bronfman Family and others.

READING MATERIALS Readings will average 150 pages per week. At the first class meeting, students will be instructed which readings on the syllabus must be “read carefully” or which may be “skimmed.” The following required materials are available for purchase at the Yale bookstore:

Who Really Cares: The Surprising Truth About Compassionate Conservatism by Arthur C. Brooks

Philanthrocapitalism: How the Rich Can Save the World By Matthew Bishop, Michael Green

The Responsibilities of Wealth Dwight F. Burlingame editor, Indiana University Press (1992)

Small Change: Why Business Won't Save the World By Michael Edwards

The Foundation: A Great American Secret; How Private Wealth is Changing the World By Joel L. Fleishman

Charity, Philanthropy, and Civility in American History, By Lawrence J. Friedman, Mark D. McGarvie

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty By Abhijit Banerjee, Esther Duflo

How to Change the World: Social Entrepreneurs and the Power of New Ideas, Updated Edition By David Bornstein

More Than Good Intentions: How a New Economics Is Helping to Solve Global Poverty By Dean Karlan, Jacob Appel

Philanthropy Reconsidered: Private Initiatives - Public Good - Quality of Life By George McCully

Uncharitable: How Restraints on Nonprofits Undermine Their Potential (Civil Society: Historical and Contemporary Perspectives) By Dan Pallotta

Creating a World Without Poverty: Social Business and the Future of Capitalism By Muhammad Yunus

Money Well Spent: A Strategic Plan for Smart Philanthropy (Bloomberg) By Paul Brest, Hal Harvey

The Autobiography of Andrew Carnegie and The Gospel of Wealth by Andrew Carnegie (Paperback - Jul 5, 2010)

American Sketches: Great Leaders, Creative Thinkers, and Heroes of a Hurricane By Walter Isaacson

Creative Capitalism: A Conversation with Bill Gates, Warren Buffett, and Other Economic Leaders, Michael Kinsley (Editor), Conor Clarke (Contributor)

Impact Investing: Transforming How We Make Money While Making a Difference

By Antony Bugg-Levine (Author), Jed Emerson (Author)

Philanthropy in America: A History (Politics and Society in Twentieth-Century America) By Olivier Zunz (Author)

Rambam’s Ladder: A meditation on Generosity and Why it is Necessary to Give (Workman Publishing, 2003) By Julie Salamon

Giving Well: The Ethics of Philanthropy (Oxford University Press, 2010) By Patricia Illingworth, Thomas Pogge, Leif Wenar, eds

Documentary Films: The Art of the Steal (Documentary that follows the struggle for control of Dr. Albert C. Barnes' 25 billion dollar collection of modern and post- impressionist art.)

Sing Your Song (the story of Harry Belafonte) presented at the 2011 Sundance Film Festival and the 2011 Berlin Film Festival, as well as the 2011 Tribeca Film Festival.)

 Harvard Business School case studies, selected law review articles, periodical clippings of recent events germane to weekly topics (to be provided without charge by the professor on- line via Classes*v2).

List of Harvard Business School And Other Case Studies & Articles

1. Path to Corporate Responsibility, S. Zadek 2. Fiji Water and Corporate Social Responsibility – Green Makeover or “GreenWashing” Richard Ivey School of Business, Univ. of Western Ontario 3. Hitting the Wall: Nike & International Labor Practices, D. Spar 4. McDonald’s, Wendy’s & Hedge Funds: Hamburger Hedging? Hedge Fund Activism and the Impact on Corporate Governance, D. Stowell 5. Multinational Corporation in Apartheid-era South Africa: The Issue of Reparations, G. Jones 6. Norway Sells Wal-Mart, Pozen & Sesia

Other required materials will be made available electronically. Students wishing to explore subjects related to this course may find the non-required and entirely optional text both interesting and illuminating and is found at the end of the syllabus.

WEBSITES RELEVANT TO PHILANTHROPY, NGOs, and PHILANTHROPIC CORPORATIONS. I have posted a number of sites under resources on https://classesv2.yale.edu

LAW CASES Armstrong v. Lear, 33 U.S. 52 (1834) Hinds v. Brazealle, 3 Miss (2 How) 837 (1838) Kemper v. Trustees of Lane Seminary, 17 Ohio 293 (1848) Kemper v. Trustees of Lane Seminary, 17 Ohio 293 (1848) Green v. Lane, 43 N.C. (8 Ired. Eq.) 253 (1852) American Colonialism Soc. V. Gartrell, 23 Ga. 448, 464-465 (1857) Willis v. Jolliffee, 32 S.C. Eq. (11 Rich. Eq.) 447 (1860)

Jackson v. Wendell Phillips, 96 Mass, 539, 555 (1867)a United State v. Lee, 106 U.S. 196 (1882) Appeal of Sophia G. Coxe, 5 BTA 261, 262- 863 (1926) Slee v. Commissioner, 42 F2d 184 (2d Cir. 1930) Bob Jones University v. United States, 461 U.S. 574 (1983) Hodel v. Irving, 481 U.S. 704 (1987) Babbitt v. Youpee, 519 U.S. 234 (1997) Boy Scouts of America et al. v. Dale, 530 U.S. 640 (2000) Citizens United v. Federal Election Commission, 558 U.S. 08-205 (2010), Consent Judgement, United States v. Various Banks, (April 4, 2012) https://d9klfgibkcquc.cloudfront.net/Consent_Judgment_Ally-4-11-12.pdf And http://www.nationalmortgagesettlement.com/ The Barnes Foundation cases

TOPICAL OUTLINE Syllabus Part I Introduction: Changing Role of Philanthropy Philanthropy is a powerful and integral force in American Society. How did this happen? Students will explore the history of American philanthropy. We will see how individual and mass philanthropy attempted to change some of the fundamental social and political dynamics that shape the day-to-day quality of life of Americans and their long-term trajectories of opportunity. We will explore the interplay of the private, public, nonprofit and philanthropic sectors. Students will look at modern philanthropy stepping onto the larger stage of public policy, civic relationships, and economic systems “in order to shatter calcified patterns of “injustice.” As today’s society’s basic calculus falls apart – as it seemingly has – and public institutions are unresponsive to the pressing needs of our time, philanthropy is again expanding its role. We will look at how philanthropists are supplementing their more traditional grantmaking with public information campaigns, strategic issue research, the formation of novel financial intermediaries, and many other tools. Private philanthropy – free (for the most part) from re-election cycles, quarterly profit reports, and appropriations from others – has the independence to take bold outsized risks. They can make larger bets that promise true innovation and transformation. Philanthropy today acts as society’s social venture capital. Americans of all people, associate our Constitution, the organization of our national economy, our national institutions, our structures of government and the traditions of independent responsibility with our national identity and character. These arrangements has been the subject of debate throughout our history and collectively have roots in Platonic visions of “the Good Society” described over two thousand years ago. Scholars, commentators, lawmakers, captains of industry and activists continue to debate the role and purpose of Philanthropy in society. Does Philanthropy exist only to solve societal problems in a way that makes up for the short comings of the state? Has democratic government failed in its mission? Have the changes in corporate governance created such a bias towards shareholder value that a vacuum exists where corporate social responsibility used to fill? How the powers and responsibilities of personal and private agency are balanced remain contentious issues even today. Ultimately, the mediation between public, private and independent sectors represents some understanding of how we might best achieve a “public good” that promotes “life, liberty and the pursuit of happiness”, “a more perfect union” and the promise of “liberty and justice for all”.

WEEK 1 Introduction & Overview of Philanthropy

1/20 (Students are introduced to a number of philanthropies to begin their investigations into causes and organizations they may potentially be interested in.)

Required Reading:

Andrew Carnegie, The Autobiography of Andrew Carnegie and The Gospel of Wealth, (Paperback - Jul 5, 2010) (only pages 191-196 required)

“Jane Addam’s Views on the Responsibilities of Wealth” in The Responsibilities of Wealth, Dwight F. Burlingame editor, Indiana University Press (1992)

Alexis de Tocqueville, Democracy in America, trans. Arthur Goldhammer (New York: Library of America, 2004 [1835/1840], pp. 610-616 (“Self Taxing for Common Good”)

George McCully, Philanthropy Reconsidered: Private Initiatives - Public Good - Quality of Life, AuthorHouse; First Edition edition (2008)

Julie Salamon, Rambam’s Ladder: A meditation on Generosity and Why it is Necessary to Give, (Workman Publishing, 2003)

Stanley Katz, “Republicanism and the Law of Inheritance in Revolutionary America,” Michigan Law Review 76 (1977): 1, 13.

Daniel Webster, “First Settlement of New England: A Discourse at Plymouth,” The Great Speeches and Orations of Daniel Webster, ed. Edwin Percy Whipple (Boston: Little Brown, 1914) 25, 36, 44.

Rob Reich, “Toward a Political Theory of Philanthropy,” in Giving Well: The Ethics of Philanthropy, Patricia Illingworth, Thomas Pogge, Leif Wenar, eds., Oxford University Press, 2010.

Paul Schervish and John Havens, “Why the $41 Trillion Wealth Transfer Estimate is Still Valid: A Review of Challenges and Questions.” Journal of Gift Planning, http://www.bc.edu/dam/files/research_sites/cwp/pdf/41trillionreview.pdf

Holly Hall, “Much-Anticipated Transfer of Wealth Has Yet to Materialize, Nonprofit Experts Say.” Chronicle of Philanthropy. 37-38. http://philanthropy.com/article/Much- Anticipated-Transfer-of/58116/

Suggested Readings;

Women and Philanthropy: Boldly Shaping a Better World [Hardcover] Sondra Shaw-Hardy (Author), Martha A. Taylor (Author), Buffy Beaudoin-Schwartz (Author), Debra Mesch (Foreword), Andrea Pactor (Foreword) Joseph Frazier Wall, Andrew Carnegie (New York: Oxford University Press, 1970) Michael T. Kaufman, Soros: The Life and Times of a Messianic Billionaire (New York: Knopf, 2002)

The Marxist-Libertarian Philanthropy of Shih Wing-Ching http://foundationcenter.org/pnd/news/story.jhtml?id=341300008

WEEK 4 Institutional Philanthropy – Foundations 2/10 As we explore the rich legacy of Philanthropic Foundations we will look at some of the tools of philanthropy: (a) convene people, forge relationships, foster joint inquiry, and support concerted action; (b) engage in strategic communications to strengthen public understanding of, and engagement in, the funded activity; (c) direct investment.

Required Reading: Joel L. Fleishman, The Foundation: A Great American Secret; How Private Wealth is Changing the World (2007)

Pablo Eisenberg, “Grant Makers’ Aversion to Advocacy Ignores the Lessons of History,” “The Buck Stops with the Board of Directors.” “Corporate Values Could Poison Nonprofits,” “Accountability and the Weinberg Foundation,” “Press Coverage Sends A Message to Nonprofits: Clean Up Your Act,” “How to Help the IRS Improve Charity

Oversight” and “Why Charities Think They Can Regulate Themselves,” in Challenges for Nonprofits and Philanthropy: The Courage to Change, ed. Stacy Palmer (Hanover, NH: University Press of New England, 2005) ed. Stacy Palmer, pp.140-143, 153-159, 171-178, 182-184 and 187-189.

Elias Clark, “The Limitations on Political Activities: A Discordant Note in the Law of Charities,” Virginia Law Review 46 (April 1960): 448, note 44.

Oliver A. Houck, “On the Limits of Charity: Lobbying, Litigation, and Electoral Politics by Charitable Organizations Under the Internal Revenue Code and Related Laws,” Brooklyn Law Review 69, 1 (2003-2004): 9.

Slee v. Commissioner, 42 F2d 184 (2d Cir. 1930)

Jon Van Til, “The Third Sector as a Political Force,” in Growing Civil Society: From Nonprofit Sector to Third Space (Bloomington, IN: Indiana University Press, 2000), pp. 31-42.

J. Craig Jenkins, “Channeling Social Protest: Foundation Patronage of Social Movements,” in Walter W. Powell and Elisabeth S. Clemons, eds., Private Action and the Public Good (New Haven: Yale UP, 1999), pp. 206-216.

Renee A. Irvin, “Endowments: Stable Largesse or Distortion of the Polity?” Public Administration Review, 2007.

Joan E. Spiro, The Global Role of US Foundations, http://foundationcenter.org/gainknowledge/research/pdf/global_role_of_us_foundations.pdf http://www.lse.ac.uk/Depts//global/Publications/Yearbooks/2004/Chapter704.Fooundapdf

Pew Charitable Trusts Will Become Public Charity, http://www.nytimes.com/2003/11/07/us/pew-charitable-trusts-will-become-public- charity.html

Can Pew's Charity be Trusted? http://oilsandstruth.org/can-pew039s-charity-be- trusted

THE CASE OF THE BARNES FOUNDATON

Court Order, Barnes Foundation, http://www.barnesfriends.org/downlload/legal- JUDGE_OTT_OPINION-2004.pdf

BEHIND THE BARNES BONANZA, by David D'Arcy http://www.artnet.com/magazineus/news/darcy/darcy4-7-06.asp

The Low Road to Cy Pres Reform: Principled Practice to Remove Dead Hand Control of Charitable Assets, by Rob Atkinson Jr., Florida State University - College of Law, November 2005 FSU College of Law, Public Law Research Paper No. 176, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=845927

The Barnes Museum and The Dilemma of Dead-Hand Control,

http://www.litigationandtrial.com/2010/06/articles/the-law/for-non-lawyers/the- barnes-museum-and-the-dilemma-of-dead-hand-control/

Documentary Films: The Art of the Steal (Documentary that follows the struggle for control of Dr. Albert C. Barnes' 25 billion dollar collection of modern and post- impressionist art.)

Suggested Reading: Theda Skocpol, “From Membership to Advocacy,” in Robert Putnam, ed. Democracy in Flux: The Evolution of Social Capital in Contemporary Society (Oxford: Oxford University Press, 2002), pp, 103-136.

Waldemar Nielsen, Golden Donors: A New Anatomy of the Great Foundations, Transaction Publishers (November 30, 2001)

Barry D. Karl and Stanley N. Katz, “The Private Philanthropic Foundation and the Public Sphere 1890-1930,” MINERVA, Vol. XIX, No. 2 (Summer 1981), pp. 236-270. Frumkin, Peter, “Central Problems in Philanthropy.” Strategic Giving, University Of Chicago Press (September 5, 2006) pp. 55-89. Irvin, Renee A. “Endowments: Stable Largesse or Distortion of the Polity?” Public Administration Review, 2007. Lester Salamon, The Resilient Sector: The State of Nonprofit America, Brookings Institution Press; 1St Edition (August 29, 2003).

Clotfelter and Ehrlich, Philanthropy and the Nonprofit Sector in a Changing America (Philanthropic and Nonprofit Studies) Indiana University Press (October 1, 2001)

Clotfelter and Ehrlich, “Philanthropy and Outcomes: Dilemmas in the Quest for Accountability.” http://www.princeton.edu/~jgrossma/reports/philanthropy%20and%20outcomes%20revise d%20june%201998.pdf Clotfelter and Ehrlich, Ch. 2 “The Evolving American Foundation.” 34-51. Philanthropy and the Nonprofit Sector in a Changing America (Philanthropic and Nonprofit Studies) Indiana University Press (October 1, 2001) Letts, Ryan & Grossman. “Virtuous Capital: What Foundations Can Learn from Venture Capitalists” Harvard Business Review on Nonprofits. Matthew Schuerman, “Reinforcing Our Foundations.” Robb Report Worth. 110-112.

WEEK 5 The phenomenon of social entrepreneurship and innovation. Part II 2/17 Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems. Just as entrepreneurs change the face of business, social entrepreneurs act as the change agents for society, seizing opportunities others miss and improving systems, inventing new approaches, and creating solutions to change society for the better. While a business entrepreneur might create entirely new industries, a social entrepreneur comes up with new solutions to social problems and then implements them on a large scale.

Required Reading:

David Bornstein, How to Change the World: Social Entrepreneurs and the Power of New Ideas, Oxford University Press, USA; Updated edition (September 17, 2007)

Michael Kinsley (Editor), Conor Clarke (Contributor), Creative Capitalism: A Conversation with Bill Gates, Warren Buffett, and Other Economic Leaders, Simon & Schuster (December 8, 2009)

Antony Bugg-Levine, Jed Emerson, Impact Investing: Transforming How We Make Money While Making a Difference, (NY, Jossey-Bass, 2011), pp 3-85, 187-215 Part II What should the interplay be between public, private, nonprofit and philanthropic sectors?

WEEK 6 Corporate Social Responsibility – Part 1 2/24 Forty years ago, managerialism dominated corporate governance. In both theory and practice, a team of senior managers ran the corporation with little or no interference from other stakeholders. Shareholders were essentially powerless and typically quiescent. Boards of directors were little more than rubber stamps. Stakeholders (employees, community, suppliers, and the environment) were not significantly considered. Today, the corporate governance landscape looks vastly different. The fall-out from the post-Enron scandal and the global financial collapse of 2008 has resulted in shareholder activism becoming more widespread, while many observers call for even greater empowerment. Additionally, the global financial collapse of 2008 has resulted in extraordinary government direct involvement in corporations.

[Students meet and start due diligence on finalist organizations—on site and through research. Teams meet outside of class with professor]

Required Reading: Walter Effross, Corporate Governance: Principles & Practices …, Aspen Publishers (December 30, 2009) pp. 397-411, 423-433.  Corporate Social Responsibility Redux, Douglas M. Branson, University of Pittsburgh School of Law, Tulane Law Review, Vol. 76, p. 1207, 2002  Harvard Business Review Article: Path to Corporate Responsibility, S. Zadek,  Harvard Business School Case Study: Fiji Water and Corporate Social Responsibility – Green Makeover or “GreenWashing” Richard Ivey School of Business The Univ. of Western Ontario  The Case of Tom’s Shoes, http://philanthropy.com/blogs/prospecting/how-giving- helped-one-business-grow/29138

Suggested Reading Geoffrey Heal, Corporate Social Responsibility - An Economic and Financial Framework, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=642762

Geoffrey Heal, When Principles Pay: Corporate Social Responsibility and the Bottom Line, Columbia University Press (March 26, 2008)

WEEK 7 Corporate Rules, Social Responsibility Practice & Social Responsible Investing – Part 3/2 II Some people believe strongly that we can save the world by applying the “rules” of the market to the challenges of social change. They argue that business principles are far more effective than more traditional approaches to solve global problems. Others believe that a wealth of evidence reveal that in reality, a market approach hurts more than it helps. Real change will come when business acts more like civil society, not the other way around.

[Students meet and start due diligence on finalist organizations—on site and through research. Teams meet outside of class with professor.]

Required Reading:  The Case Against Corporate Social Responsibility, Goldman School of Public Policy Working Paper No. GSPP08-003, Robert Reich  Harvard Business School Case Study: Hitting the Wall: Nike & International Labor Practices, D. Spar  Additional readings may be assigned by instructor.

*** Mid-Term Paper Assigned

WEEK 8 Meet the Actors – Special Guest Speakers on Philanthropy 3/23 [Students meet and start due diligence on finalist organizations—on site and through research. Teams meet outside of class with professor]

Required Reading: Dan Pallotta, Uncharitable: How Restraints on Nonprofits Undermine Their Potential (Civil Society: Historical and Contemporary Perspectives), Tufts (December 1, 2008)

“Introduction” and Andres A. Thompson and Leila Landim, “Civil Society and Philanthropy in Latin America: From Religious Charity to the Search for Citizenship” in Warren F. Ilchman, Stanley N. Katz and Edward L. Queen, Il, eds., Philanthropy in the World’s Traditions, (Bloomington, IN: Indiana University Press, 1998), pp. ix-xv, 355-370.

Muhammad Yunus, Creating a World Without Poverty: Social Business and the Future of Capitalism, Public Affairs; First Edition edition (January 8, 2008)

Part III Is Philanthropy a Waste of Wealth?

WEEK 9 When it comes to solving real-world problems regarding hunger and poverty, good 3/30 intentions may simply be not good enough.

Required Reading: Dean Karlan, Jacob Appel, More Than Good Intentions: How a New Economics Is Helping to Solve Global Poverty, Dutton Adult (April 14, 2011)

***Mid-Term Paper Due. Discussion of Paper Topics

WEEK 10 Rethinking Strategies Part 1

4/6 Foundations and other actors have spent billions dollars supporting organizations that are dedicated to helping the world's poor. The consensus today seems to be that too little has changed perhaps much of their work is based on assumptions that are untested generalizations at best, harmful misperceptions at worst. We will explore some case studies of anti-poverty investments.

[Students present their arguments and support for first cut of particular potential grantees]

Required Reading:

Abhijit Banerjee, Esther Duflo, Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, Public Affairs (April 26, 2011)  Harvard Business School Case Study: Multinational Corporation in Apartheid-era South Africa: The Issue of Reparations, G. Jones  Harvard Business School Case Study: Norway Sells Wal-Mart, Pozen & Sesia

WEEK 11 Rethinking Strategies: Part II 4/13 Will a market approach to Philanthropy hurt more than help? Some argue real change will come when business acts more like civil society, not the other way around.

[Students present their arguments and support for particular potential grantees]

Required Reading: Michael Edwards, Small Change: Why Business Won't Save the World, (San Francisco, Berrett-Koehler, 2010)

Pablo Eisenberg, “Introduction: The Key Issues Facing Nonprofit Groups in the Twenty- First Century,” in his Challenges for Nonprofits and Philanthropy: The Courage to Change (Hanover, NH: University Press of New England, 2005) ed. Stacy Palmer, pp.1- 22.

Matthew Bishop, Michael Green, Philanthrocapitalism: How the Rich Can Save the World, (London, Bloombury Press, 2008), pp.1-50, 259-278.

Suggested Reading: Christine W. Letts, William Ryan and Allen Grossman, “Virtuous Capital: What Foundations can Learn from Venture Capitalists,” Harvard Business Review (March-April 1997), pp.36-44. Michael Porter and Mark R. Kramer, “Philanthropy’s New Agenda: Creating Value,” Harvard Business Review, November-December 1999, pp. 121-130. Peter B.R. Hazell, Green Revolution Reconsidered (Baltimore: Johns Hopkins University Press, 1991) Peter B.R. Hazell Green Revolution: Curse or Blessing (Washington D.C: International Food Policy Research Institute, 2002)

WEEK 12 Student Presentations – Students Debate the merits of the presentations and

4/20 organizations. They choose the beneficiaries.

Required Reading:

Jim Collins, Good to Great and the Social Sector, HarperCollins; 1 edition (2005)

Walter Isaacson, American Sketches: Great Leaders, Creative Thinkers, and Heroes of a Hurricane, Simon & Schuster; Reprint edition (2010)

Reading material will be provided a few weeks prior to the class. WEEK 13 WRAP Up/ GRANT AWARD PRESENTATIONS - Getting on with It: Stories of 4/23 social entrepreneurs or innovators

[Student debrief on Giving and plans for follow up]

Required Reading:

Paul Brest, Hal Harvey, Money Well Spent: A Strategic Plan for Smart Philanthropy (Bloomberg)

 Additional materials to be provided by instructor

Suggested Reading: Helmut K. Anheir, Nonproft Organizations: Theory, Management, Policy (London: Routledge, 2005) Waldemar Nielsen: Golden Donors: A New Anatomy of the Great Foundations Transaction Publishers (November 30, 2001) Michael T. Kaufman, Soros: The Life and Times of a Messianic Billionaire (New York: Knopf, 2002) Joseph C. Kiger, Philanthropists & Foundation Globalization (New Brunswick: Transaction Publishers, 2008). Joseph Frazier Wall, Andrew Carnegie (New York: Oxford University Press, 1970) Edward H. Berman, The Influence of the Carnegie, Ford and Rockefeller Foundations on American Foreign Policy: The Ideology of Philanthropy (Albany: State University of New York Press, 1983). Helmut K. Anheier and Diana Leat, Creative Philanthropy (London and New York: Routledge, 2006) William Damon and Susan K. Verducci, editors, Taking Philanthropy Seriously: Beyond Noble Intentions to Responsible Giving (Bloomington and Indianapolis: Indiana University Press, 2006) Peter Frumkin, Strategic Giving: The Art and Science of Philanthropy (Chicago and London: University of Chicago Press, 2006) Joel L. Fleischman, The Foundation: A Great American Secret: How Private Wealth is Changing the World (New York: Public Affairs, 2007)

Lawrence J. Friedman and Mark D. McGarvie, Charity, Philanthropy, and Civility in American History (Cambridge: Cambridge University Pres,2003). Kenneth Prewitt, Mattei Dogan, Steven Heydemann, and Stefan Toepler, eds., The Legitimacy of Philanthropic Foundations (New York: Russell Sage, 2006). David M. Schizer, “Subsidizing Charitable Contributions: Incentives, Information and the private pursuit of Public Goals”, draft paper, February 22, 2008 Kenneth Prewitt, “American Foundations: What Justifies Their Unique Privileges and Powers” in Kenneth Prewitt, Mattei Dogan, Stephen Heydemann, and Stefan Toepler, eds., The Legitimacy of Philanthropic Foundations (New York: Russell Sage, 2006), Peter B.R. Hazell, Green Revolution Reconsidered (Baltimore:Johns Hopkins University Press, 1991) Peter B.R. Hazell, Green Revolution: Curse or Blessing (Washington D.C: International Food Policy Research Institute, 2002) Makoto Iokibe, “U.S.-Japan Intellectual Exchange: The Relationship between Government and Private Foundations”. (Not mentioned here is the Asia Foundation which was active in funding civil society groups in Japan. In 1967 it was revealed that the Asia Foundation was a vehicle of the CIA.) Barry D. Karl and Stanley N. Katz, “The Private Philanthropic Foundation and the Public Sphere 1890-1930,” MINERVA, Vol. XIX, No. 2 (Summer 1981), pp. 236-270.

Women and Philanthropy: Boldly Shaping a Better World, By Sondra Shaw-Hardy (Author), Martha A. Taylor (Author), Buffy Beaudoin-Schwartz (Author), Debra Mesch (Foreword), Andrea Pactor (Foreword)

Helmut K. Anheier, Nonprofit Organizations: Theory, Management, Policy Charles T. Clotfelter, and Thomas Ehrlich, Eds. Philanthropy and the Nonprofit Sector in a Changing America. Robert P. Fry, Nonprofit Investment Policies: Practical Steps for Growing Charitable Funds. Harvard Business Review on Nonprofits. (Letts, Ryan and Grossman) Bruce R. Hopkins, and Jody Blazek. Private Foundations: Tax Law and Compliance, 2nd edition. Amy Kass, (editor). The Perfect Gift: The Philanthropic Imagination in Poetry and Prose. Ellen Condliffe Lagemann, (editor). Philanthropic Foundations: New Scholarship, New Possibilities Waldemar Neilsen, Inside American Philanthropy: The Dramas of Donorship Steven J. Ott, The Nature of the Nonprofit Sector Robert L. Payton, and Michael P. Moody. Understanding Philanthropy: Its Meaning and Kevin Phillips, Wealth and Democracy: A Political History of the American Rich Walter W Powell,., The Nonprofit Sector: A Research Handbook Rockefeller, John D. Random Reminiscences of Men and Events

Lester Salamon, The State of Nonprofit America Roger D. Silk, and James W. Lintott, Creating a Private Foundation: The Essential Guide for Donors and Their Advisers Thorstein Veblen, The Theory of the Leisure Class George Bernard Shaw, Major Barbara (Penguin Classics, 2000)