Also in the News

Family Giving News, June 2004

This section of Family Giving News features brief overviews of a variety of other interesting and timely articles and perspectives on philanthropy. If you have a suggestion for a future edition of FGN, please email Sarah Trzepacz or contact the National Center at 202.293.3424.

The New Brahmins
May 2004, Boston Magazine

According to Boston Magazine, the roster of donors supporting the city's cultural and philanthropic institutions is diversifying, and is no longer the exclusive territory of Lowells, Shaws, Cabots, and Ameses. The "New Brahmins," as they have been dubbed, come from more varied ethnic backgrounds: Italian, Irish, African-American and Jewish, and have become just as common place on the boards of the city's cultural institutions as those of long-established Boston families. The influence of the Brahmins was the force that shaped Boston's giving, and even with the new names old ideas about philanthropy are resurging. Says Michael Santangelo, a Merrill Lynch real estate and trust specialist:  "In previous generations, there was giving among the pillars of the community. . . They would always reliably give to local, established institutions. Beyond those families, most people gave out of a sense of obligation and peer pressure. But now younger wealth creators are instead really interested in the impact of their money. They feel wealth has no meaning at all—it needs to be given meaning by doing something with it for the community. They want to make sure their children and grandchildren appreciate that."

Coke is Bedrock of Atlanta Economy
May 8, 2004, Atlanta Journal-Constitution

The recent appointment of new chairman and CEO, E. Neville Isdell, prompts the Atlanta Journal-Constitution to look at the Coca-Cola Company's impact on Atlanta's economy and its contributions to the philanthropic landscape. This article examines the giving tradition established early by the founding Candler family—whose endeavors included the founding of Emory University—as well as the philanthropy of original Coca-Cola bottler Joseph B. Whitehead, and of later owner Ernest Woodruff and his descendents.


Grassley Plans Hearing on Charitable Giving Problems, Best Practices
June 1, 2004, U.S. Senate Committee on Finance (Washington, DC)

Senate Finance Committee Chairman, Sen. Chuck Grassley and ranking committee member Sen. Max Baucus announce that they will hold a hearing on tax-exempt charities beginning on June 22, 2004. Topics will include: governance and best practices; tax shelters; donations of tangible and intangible property; and other problems in the philanthropic and nonprofit communities. This comes less than a month after the Senate passed the Jump Start Our Business Act (JOBS Act), which includes provisions to mandate that individuals who give in-kind gifts to non-profits—particularly cars—supply proof of the sale value of these items to the IRS. Previously, tax breaks were based on the estimated retail value of the items rather than on the actual amount received by the nonprofit as a result of the sale, and provided that the estimated value was less than $5000, no documentation was necessary. Charitable organizations fear that the increased scrutiny will discourage new donors and stymy philanthropic missions.

$10,000 Earmarked for Youth Group
May 12, 2004, Daily Journal Online (Johnson County, Indiana)

The scarcely year-old Johnson County Youth Philanthropy Initiative launches a new fund-raising campaign to meet the $20,000 challenge issued by Indianapolis' Moore Foundation, which will pledge $10,000 if the goal is met. The YPI, founded by several local organizations, including the Indianapolis Community Foundation and the United Way, to teach students about philanthropy, hoped to fund eight projects and involve 150 young people in its first year. To date,  the YPI has funded 28 projects which have included more than 2000 students, and in undertaking this fund-raising drive it hopes to achieve even more this year.

Proposed FEC Rules on Nonprofit Political Committees
May 13, 2004, The Independent Sector (Washington, DC)

The Federal Election Committee postpones its ruling on new regulations governing the classification of nonprofit political committees. The regulations, which are drawing criticism from many in the nonprofit world, redefine "political action committees" to include nearly all section 527 groups, and could also include a large number of 501(c)(3) organizations, whose purpose is to encourage political action or voter registration. In addition, the new regulations would also affect the fund raising of these groups, limiting the donations they could receive no more than $5000 annually from any union, foundation, or corporation. The postponement extends the evaluation and study of issues relating to the new regulations for another 90 days.

Business People Lend Their Talents to Worthy Social Organizations
May 14, 2004, San Diego Union-Tribune

Members of the San Diego Social Venture Partners discuss their philanthropic ethos, which involves donating time and skills, as well as money, to local nonprofits.  As a result of the organization's work and donations to fund operating costs, the burden on the nonprofits to raise funds has shifted and allowed them to focus on their programmatic goals rather than on keeping their heads above water. According to the members and to the nonprofits they support, this system has reshaped ways of giving and of receiving; benefits include, allowing the nonprofits to maximize efficiency by providing both monetary resources and skilled volunteer time, a new measure of assurance among donors of the impact of their funds, and an increased sense of personal satisfaction. Said Dale Stein, a local businessman and chief liaison for SDSVP, who went from simply writing checks to directly engaging with nonprofits: "I've had a lot of successful businesses through the years, but the most enjoyment I've ever had in my life is working with a nonprofit."

$50 Million Gift Aims to Further Legacy of Brown v. Board of Education Case
May 18, 2004, The New York Times

Wall Street money-maker and philanthropist, Alphonse Fletcher, Jr. allots $50 million to be given in $50,000 fellowships to "scholars, writers and artists whose work furthered the goals of the Brown decision." Fletcher, who credits his success to enterprising parents with a strong belief in the power of education, began his large-scale philanthropy at age 28, when he donated $4.5 million to his alma mater, Harvard University, to establish the Alphonse Fletcher, Sr. professorship.  Fletcher has assembled an advisory committee to oversee the allotment of funds, which includes: Professors Henry Louis Gates of Harvard and K. Anthony Appiah of Princeton, future University of Pennsylvania President, Amy Gutmann, and Studio Museum in Harlem curator, Thelma Golden. According to Professor Appiah, Fletcher's gift is "the latest in a long African-American tradition, the tradition of faith in education."

A Giant of Generosity
May 20, 2004, St. Petersburg Times (St. Petersburg, Florida)

The St. Petersburg Times remembers the life of Jack M. Eckerd, who died in Florida on May 19, 2004 at age 91. After retiring from the pharmacy business and trying his hand at politics, Mr. Eckerd devoted himself to philanthropic pursuits by founding the Eckerd Family Foundation and working out of an office in Tampa. Eckerd's philanthropy is of the active, hands-on variety: family members research potential grant recipients and work to find ways to leverage the foundation's money for maximum benefit and early in his philanthropic career, Mr. Eckerd was known for opening his own home to the at-risk children he hoped to help for an annual Christmas party. Former Eckerd College President Bill O. Wireman said of Mr. Eckerd: "He was a great business leader who understood the social responsibility of wealth. He had a great sense of civic duty; you don't hear that much anymore."

City's Top Charity Pampers Its Own
May 23, 2004, Chicago Sun Times

The Chicago Sun-Times reveals the exorbitant salaries paid to, and the extensive luxuries lavished upon the directors of the John D. and Catherine T. MacArthur Foundation and their spouses. These indulgent practices, including top-notch hotel suites, first-class air travel and expensive fact-finding missions, stand in direct opposition to the values of Mr. MacArthur himself. MacArthur, who died in 1978, was known for his: eccentric and often extreme frugality; contempt for opulence and self-indulgence; and belief in hard work and independence. Of MacArthur's reaction to the recent furor over the MacArthur Foundation's spending, long-time friend Paul Harvey commented: "He would have been exasperated, embarrassed, frustrated and utterly unsympathetic. He would have loved to have banged some heads together."


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