News

Gw/oB news updates and highlights

June 29, 2009

Students Learn How to Give in University Philanthropy Courses
In a growing national trend, students enrolled in newly created philanthropy courses are steering thousands of dollars to local charities. At Tufts University, students decided this spring to give $1,500 to expand English courses to immigrant parents in Medford, MA. Northeastern University students donated $2,500 to a Boston after-school program promoting cross-cultural tolerance through cooking. And students at Boston University distributed $7,500 to help local at-risk teens land jobs in the financial sector. At least 10 New England colleges will offer similar courses next school year, using seed money donated by corporate and family foundations. In the classes, students draw up mission statements for makeshift foundations, research nonprofits in their communities, and decide how to allocate the pot of money. More at http://www.boston.com/news/local/massachusetts/articles/2009/06/25/for_philanthropy_courses_students_become_the_givers/.

Federal Income Lost to Charitable Exemption to Receive Greater Congressional Scrutiny
Every dollar lost to the federal government through the tax exemption for charities and foundations is a dollar that could go to the people in his district, Rep. Xavier Becerra (D-Calif.) recently told a nonprofit audience. Becerra took aim at charities' tax exemption and the charitable deduction for individuals. Becerra said he is not willing to forgo tax dollars coming into the Treasury that could be going to the citizens in his district or to other worthy causes without asking some tough questions. Reported by the Bureau of National Affairs, www.bna.com.

NCRP Study Ties Madoff Loss to Charity's Board Size
A majority of more than 100 foundations that lost 30 to 100 percent of their assets in the Madoff scandal had four or fewer board members, according to an analysis by the National Committee for Responsive Philanthropy (NCRP). "There's one startlingly simple conclusion here: To avoid falling prey to the next Bernie Madoff who comes along, foundations would be wise to increase the size and diversity of their boards," said Aaron Dorfman, executive director. In all, 38 of the foundations on the list reported just one or two trustees on their tax forms, while 46 listed three or four. More at http://www.nytimes.com/2009/06/25/business/25foundation.html?_r=1&ref=business and www.ncrp.org/.

Obama Administration Considers Signing onto Global Children's Rights Treaty
The Obama administration may be reviving efforts to have the US sign onto a global children's rights treaty ratified by every UN member except the US and Somalia, the US ambassador to the UN, Susan Rice, has stated. Administration officials are actively discussing "when and how it might be possible to join," Rice said while visiting a school in Harlem. The treaty says children have basic rights to education, health care and protection from abuse. Its supporters have used it to improve child protection laws for schools and courts in places like Lebanon, South Korea, South Africa and Sri Lanka. Opponents in the US have long argued that it could open the door to outside interference from government and the UN in what they say are parents' rights to raise a child as they see fit. More at http://www.guardian.co.uk/world/feedarticle/8571497.

Haiti Mourns the Death of a National Hero
Father GŽrard Jean-Juste, one of Haiti's most prominent liberation theology priests, died on May 27 due to complications stemming from leukemia and a stroke he suffered in early March. He was 63. Within hours, the news raced through Haiti and its diaspora, particularly in Miami, where he was revered as the spiritual leader of Haiti's refugees, whom he galvanized into a potent political force during the late 1970s and the 1980s. More at http://upsidedownworld.org/main/content/view/1890/68/.

June 22, 2009

Philanthropy Roundtable Believes that Foundations Need Not Serve Broad Public Needs
The Philanthropy Roundtable, in a new monograph, argues that "the historic requirement that foundations and other charities serve public purposes rather than provide private benefits to individuals does not mean that these organizations must serve the purposes …of the public at large." The monograph also argues that "there is no single version of public benefit: A wide variety of charities focus on complementary, overlapping, or even competing issues." More at http://www.philanthropyroundtable.org/files/Public-Private%20Synopsis-FINAL.pdf.

Council on Foundations Worries that New TV Program Will Distort Public View of Foundations
In a letter two its members, the Council on Foundations warns that a new television program may have a negative impact on the way the public views foundations. NBC television begins airing a series called The Philanthropist this Wednesday. The Council obtained an advance copy of the first episode and found that "the show is a romanticized, action/adventure depiction of a powerful businessman's efforts to find meaning in his life by applying his fortune and acumen to the problems of struggling communities in developing countries." According to NBC, the series "follows the heroic adventures of Teddy Rist, billionaire playboy-turned-vigilante philanthropist, taking him across the globe from Haiti to Myanmar, Kashmir to Paris, Kosovo to San Diego." The Council believes that, "while some elements may ring true, very little of the first episode conveys the realities of philanthropy… The biggest risk of this series is the potential for some citizens – who do not understand philanthropy – to incorrectly develop the wrong impression. While charitable giving is good, philanthropy reflects a sustained strategic investment seeking to create real change. We should use this series, and the interest it produces, as a teaching moment for the public, potential philanthropists and certainly policy makers." The Council has developed talking points for foundations who may be contacted about the series. More at http://www.cof.org/programsandservices/templates/41.cfm?ItemNumber=16562.

World Hunger Reaches the 1 Billion People Mark
More than a billion people — a sixth of the world's population — are now hungry, a historic high due largely to the global economic crisis and stubbornly high food prices, a U.N. agency said last week. Compared with last year, there are 100 million more people who are hungry, meaning they consume fewer than 1,800 calories a day, the Food and Agriculture Organization said. Almost all the world's undernourished live in developing countries. "Food security is one of our most critical peace and security issues of our time," said Josette Sheeran of the World Food Program. "A hungry world is a dangerous world." Sub-Saharan Africa has the highest rate of hunger, with 265 million undernourished representing 32 percent of the region's population. More at http://www.google.com/hostednews/ap/article/ALeqM5iOVOJrAbfKGbFx_EpjIORH3QAU0AD98TO4B80

Quinoa and Amaranth Plant a Seed for Food Sovereignty in Latin America
The push to reintroduce long-lost native crops, including quinoa and amaranth, is one expression of Latin America's burgeoning food sovereignty movement. Governments and social movements across Latin America are increasingly concerned with promoting the rural poor's ability to live self-sufficiently on locally produced goods instead of dumped products often exported from monoculture farms. More at http://upsidedownworld.org/main/content/view/1913/1/.

June 15, 2009

Advisory Committee Tells IRS to Develop Equivalency Determination Repository
On June 10, an Internal Revenue Service (IRS) advisory committee released a report recommending that the IRS develop a repository to make determinations on whether foreign charities are equivalent to US charities for the purposes of grantmaking in accordance with IRS rules. According to the IRS Tax-Exempt and Governmental Entities Advisory Committee, issuing guidance on equivalency requirements for foreign charitable organizations could address a recommendation by IRS Commissioner Douglas Shulman that the committee focus on cross-border philanthropy tax issues. An advisory committee representative said, "It is our belief that a modest expenditure of IRS and Treasury administrative resources spent making updates to certain guidance will yield an exceptionally high return by reducing compliance burdens, improving charitable organizations' ability to comply with our tax rules, and enhancing their ability to fulfill charitable missions beyond our borders." More at http://www.cof.org/whoweserve/templates/311.cfm?ItemNumber=16539&navItemNumber=14860 and http://www.irs.gov/pub/irs-tege/tege_act_rpt8.pdf.

US Giving Dropped $6.4 Billion in 2008, the Largest Decline on Record
Overall giving in the US declined last year by 2 percent, the largest drop since records have been kept and the first since 1987. Giving by individuals again made up about three-quarters of all giving, but declines in foundation endowments and grantmaking might make for an even more challenging environment for next year's report. The $307.65 billion estimate in giving last year represents a decline of $6.42 billion, or 2 percent, but 5.7 percent when adjusted for inflation, the largest drop recorded since Giving USA has been keeping track of America's donations. International affairs saw an increase of 0.6 percent over 2007, to $13.3 billion; adjusted for inflation, though, that represents a decline of 3.1 percent. The largest drop in giving among subsectors was at foundations, which comprised 10.6 percent of the overall charitable pie. To note: The new statistics don't reflect the deterioration of the market and endowments last year, and what it means for 2009. More at http://www.nptimes.com/09Jun/bnews-givingusa-090610.html.

Obama Pledges to Ease Impact of Post-9/11 Scrutiny of Charities
Tucked away in President Obama's historic speech in Cairo was a promise to American Muslims and others to ease the impact of post-9/11 scrutiny of charities. "Rules on charitable giving have made it harder for Muslims to fulfill their religious obligation. That's why I'm committed to working with American Muslims to ensure that they can fulfill zakat," said Obama, referring to the Muslim obligation to be charitable. A Treasury Department spokeswoman, Natalie Wyeth, described an increased effort to talk with the groups, to "help them protect against terrorist abuse of charity and to refine the guidance surrounding charitable giving." Ever since the World Trade Center attacks, fundraising by American Muslims has come under repeated federal investigations for possible support of terrorism. American Muslims complain legitimate philanthropy has been hampered because the rules are ill-defined. "There's no public notice of who you can and can't do business with," said Kay Guinane, who is leading an effort on the issue for OMB Watch. "It's created a tremendous climate of fear," she said. "Donors are afraid they may be prosecuted for giving to an organization now that may be declared a supporter of terrorism two years from now. We need long-term sensible laws in this area." More at http://www.nydailynews.com/news/politics/2009/06/05/2009-06-05_obama_gives_a_little_to_muslim_charities.html#ixzz0HwL3KKSh&D.

Gates Foundation Awards $20 Million to World Bank to Expand Rural Finance
The World Bank Group has announced a $20 million grant from the Bill and Melinda Gates Foundation for a new venture to support the expansion of rural finance in the developing world. The Bank will use the funds to establish the Agriculture Finance Support Facility, which will provide grants to bank and non-bank institutions for activities designed to increase access in rural areas to financial services such as savings, credit, payments, and insurance. "Having access to safe and reliable financial servicesÉallows poor farmers to safeguard cash, which they often receive only once a year during harvest," said Carlos Cuevas, Gates Foundation deputy director of financial services for the poor. "In this way, they can better provide for their families, prepare for emergencies, and build long-term financial security." More at http://fconline.foundationcenter.org/pnd/20018467/story.

Kellogg Foundation to Close South Africa Office
Citing a sharp decline in assets, the W.K. Kellogg Foundation has announced that it will close its office in Pretoria, South Africa, bringing to three the number of office closings the foundation has announced this year. According to the Chronicle of Philanthropy, the value of the foundation's assets declined roughly 22 percent last year, to $6.36 billion. The hit to its endowment led the foundation to announce that it would close its offices in Jackson, Mississippi, and S‹o Paolo, Brazil, and also trim budgets in other offices. Despite the closure of the Pretoria office, the foundation said it will honor its existing commitments in southern Africa and will continue to pursue its mission in the region through a more cost-effective delivery model. More at http://fconline.foundationcenter.org/pnd/20018469/story.

International Aid Groups Scramble for Funding
With political turmoil and the global financial crisis putting a damper on the generosity of governments and individual donors, aid agencies working to address humanitarian emergencies around the world are beginning to run short of funds. A recent spike in humanitarian emergencies in developing countries comes at a time when the balance sheets of governments and individuals in rich countries have been battered by volatile credit and equity markets. While aid groups working in Pakistan have issued an appeal for more than $500 million to provide relief to millions displaced by a government offensive against Taliban militants, to date they have only raised 16 percent of the total. The additional demands on humanitarian groups mean there is even less money to feed millions of hungry people in poor countries still suffering from last year's spike in food prices. The UN World Food Program, for example, has increased its 2009 budget from $5.2 billion to $6.4 billion but so far has received just 18 percent of the budgeted amount from donor governments. In response, WFP has cut food aid to 600,000 people uprooted by conflict in northern Uganda and may have to cut rations for millions more in Kenya and Ethiopia. More at http://fconline.foundationcenter.org/pnd/20018468/story.

Green Resources to Color India's GDP
India is expected to begin the greening of its national income accounting starting next year, making depletion in natural resources wealth a key component in its measurement of gross domestic product. The ministry of statistics and program implementation is now readying a national database to calculate the cost of depletion of natural resources in the process of economic expansion, a government official said. "Research outfits from various states are pitching in to form a national database of natural resource accounting which should be ready next year. Once it is in place we can calculate the cost of recovery of polluted resources, which has to be used as a deflator to real GDP. Our green GDP may be significantly lower than real GDP as economic growth is resource-intensive," an official in the statistics ministry said. China carried out a similar exercise in 2004, showing economic losses because of environmental damage at about 3% of national income. But the experiment proved to be short-lived: squabbling between government agencies and loss of support for the idea from political establishment forced its abandonment. More at http://www.ibef.org/artdisplay.aspx?tdy=1&art_id=23071&cat_id=60&utm_source=newsalert&utm_medium=email&utm_campaign=http://www.ibef.org.

May 26, 2009

One-Third of Family Foundations Uncertain About Lifespan or Expect to Spend Down
While existing in perpetuity continues to be the norm for the majority of family foundations, 25 percent say they are currently undecided about their lifespan options, while 12 percent plan to limit their lifespan, a new report released jointly by the Foundation Center and the Council on Foundations finds. According to the survey, the foundations most likely to opt for a limited lifespan are small groups established since 1980 that do not employ staff and whose founder is still alive, although the percentage that expect to spend down remains modest. Foundations with a living founder are three times more likely to expect to spend down than those whose founder is deceased and almost twice as likely to be undecided. The survey also found that when the decision to spend down is made at the foundation's inception, the leading factors are the desire of the founders to have a greater impact during their lifetimes and to be involved in how the money is spent. When the decision to spend down is made later, the most frequently cited reasons are a shift in the founder's attitudes, family issues, and/or a belief that subsequent generations will create their own philanthropies. More at http://fconline.foundationcenter.org/pnd/20018025/story.

UN Official Challenges Chemical Industry to Clean Up Toxic Stockpiles
Last month, the UN's top environmental official, Achim Steiner, challenged the chemical industry to clean up stockpiles of its old, toxic products. Speaking to the International Council of Chemical Associations in Geneva, Steiner said manufacturers need to take charge of their past by ridding the world of large inventories of obsolete chemicals, especially pesticides. Hundreds of tons of no- longer produced compounds, many of which pose known health risks, are stockpiled in developing countries, especially in Africa. These nations have little or no infrastructure for disposing of them. He also urged companies to recommend chemicals for global phase-out and to contribute money to UN projects designed to make the management of chemicals safer in developing countries. His remarks provoked industry executives to point to voluntary initiatives their companies are taking already. They also noted the high costs of such stewardship, and some cited liability concerns. More at http://pubs.acs.org/cen/news/87/i20/8720notw10.html.

Israel to Replacing Pesticides with Owls and Kestrels
An Israeli drive to reduce the use of toxic pesticides has been turned into a government-funded national program to employ owls and kestrels for agricultural pest control. Barn Owls are gaining popularity for natural rodent control in neighboring countries and around the world. BirdLife International says that hundreds of birds of prey, including many endangered species, have been killed in Israel through eating rodents containing poisonous 'rodenticides' sprayed on crop fields. Scientists are now working with farmers to combat this problem by deploying birds as natural pest controllers. The program now counts more than 1,000 Barn Owl nests and has expanded to include boxes for the Common Kestrel. Kestrels hunt during the day and barn owls at night. This 24-hour threat of predation has caused changes in the pests' behavior, resulting in less crop damage. The raptors are removing an estimated 80,000 rodents each year from the Bet-She'an Valley's farm fields. More at http://news.bbc.co.uk/2/hi/science/nature/8004426.stm.

Media Freedoms are Nowhere on the Agenda in MENA Region
According to the Qatar-based Doha Centre for Media Freedom, media freedom is nowhere on the agenda in the Middle East, North Africa and the Gulf. The region remains generally opposed to the free flow of news despite some easing of press laws and a few signs of opening up and greater tolerance. Despite differences in regimes, constitutions, and media laws, countries in the region are united when it comes to controlling the media. On the other hand, state controls over access to information is cracking in the face of rising numbers of satellite channels and the Internet, which are able to evade censors. More at http://www.middle-east-online.com/English/qatar/?id=30292.

May 18, 2009

Audit Says FBI's Terror Watchlist is Riddled with Errors
A May 6th audit from the Department of Justice's Office of Inspector General has documented the high error rate and dysfunction of the government's central terrorist watchlist. The audit found that inaccuracies were rampant, entries were incomplete, watch list records were not consistently updated or purged, and many entries contained information unrelated to terrorism. In response, the ACLU has called for Congressional oversight, and Sen. Patrick Leahy (D-VT) called the situation unacceptable. The audit may spark action on legislation passed by the House of Representatives and pending in the Senate that would provide redress procedures for people wrongly placed on watchlists. The audit also raises significant questions for US nonprofits, since the Department of Treasury Anti-Terrorist Financing Guidelines for charities and USAID's proposed Partner Vetting System promote list checking. More at http://www.ombwatch.org/node/10003.

Grantmakers Pledge $90-Million for Overseas Think Tanks
The Bill & Melinda Gates Foundation, the William and Flora Hewlett Foundation, and Canada's International Development Research Centre have announced a new effort to bolster think tanks in the global South. The three institutions have committed $90-million over five years to the "think tank initiative," which aims to provide governments and philanthropies with research and policy recommendations that are based on the needs of poor countries. "One of the hard lessons of development over the last 30, 40, 50 years is that for it to happen successfully it needs to be driven locally," said Mark Suzman, director of policy and advocacy with the Gates Foundation's global development program. "But in developing countries these groups often tend to be very underdeveloped and underfunded and that restricts informed debate." The donors have announced the first installment, $30-million, to 24 think tanks in Africa. In August, they expect to ask organizations in Latin America and South Asia to apply for the remaining two-thirds of the grant money. More at http://philanthropy.com/news/updates/index.php?id=8201.

Cancer Rates Rise with Use of Pesticides in Punjab
Are the modern farming methods brought by the so-called Green Revolution of the 1960s and '70s making people sick?," asks NPR's "All Things Considered" reporter Daniel Zwerdling, in a May 11th feature titled, "In Punjab, Crowding Onto the Cancer Train". Starting with the stories of some 60 patients who pack the train arriving each night at a regional government cancer center, Zwerdling examined the links between the rise of cancers, including those afflicting children, and marked increases in the use of synthetic pesticides. "Farmer Jarnail Singh helped spur research into whether the Green RevolutionÑa movement in the 1960s and '70s to introduce American farming methods such as the use of pesticides, fertilizers and high-yield seedsÑhas been hurting the public's health. The first clue Singh noticed was that peacocks, India's national bird, disappeared from the fields." The report cites recent research into the potential contributions of pesticide use to cancer in India, including high levels of heptachlor, ethion, and chloropyrifos in drinking water. At http://www.npr.org/templates/story/story.php?storyId=103569390.

Study Finds No Advantage to Making People Pay for Anti-Malaria Bednets
Sleeping under a treated bednet is an effective way to prevent malaria. Some argue that charging for health programs will increase their effectiveness, because those who pay for something will value it and use it more than those who receive it for free. However a recent study has found no evidence that fees increase the likelihood of usage. Overall, the results suggest that free distribution is both more effective and more cost-effective than cost-sharing. More at http://poverty-action.org/node/1794.

May 11, 2009

Obama Sticks to Charitable-Deduction Limits in New Budget Proposals
President Obama plans to stick to his proposal to cap the federal tax breaks wealthy people can get for itemized deductions, including charitable donations, when he submits the final piece of his budget plans on Monday, according to White House budget director Peter Orszag. Mr. Orszag, writing on his blog, restated the administration's defense of the plan, which seeks to raise money for a reserve fund that will help pay to overhaul the health-care system. The change would bring more fairness to the tax system, since wealthy people now get bigger tax breaks for their deductions than lower-income people. President Obama has proposed limiting the tax break for itemized deductions to 28 cents for every dollar spent for couples earning more than $250,000 (individuals $200,000), starting in 2011. Under the current system, taxpayers in the highest tax brackets can get up to 35 cents off. More at http://philanthropy.com/news/updates/index.php?id=8193.

Leading Medical Journal Questions Gates Foundation's Health Funding
Lancet, one of the world's premier medical journals, has concluded that the Gates Foundation lacks sufficient transparency and accountability and places too much emphasis on high-tech solutions. "The foundation's emphasis on technology... can detract attention" from the basic causes of health problems and can skew the health spending priorities of poor countries, the journal notes. As the largest private foundation in the world, the Gates Foundation itself defies precedent in its ability to influence global health. The foundation's spending on global health was nearly equal to the World Health Organization's annual budget in 2007. Yet the Gates Foundation is not held accountable, nor is it open about the way it sets priorities and awards grants, according to the Lancet analysis. The world's biggest philanthropy is upfront about being "driven by the interests and passions of the Gates family," but that's a "whimsical" way to exert such enormous power on the world stage, says Lancet. The analysis finds that more than half of the philanthropy's $9 billion in spending went to just 20 organizations. As a result, those organizations now have "privileged status" and are able to exert huge influence over global health policies worldwide, the articles say. More at http://seattletimes.nwsource.com/html/thebusinessofgiving/2009193675__heres_how_the_article.html

Private Giving to Developing Nations Not Expected to Drop Significantly in 2009
Despite a global recession, charitable giving to developing nations by individuals, foundations, corporations, and other organizations is not expected to decline significantly in 2009, a new report from the Hudson Institute. According to the fourth annual Index of Global Philanthropy and Remittances, private giving from developed to developing countries increased to $49 billion in 2007, nearly $37 billion of which came from the US. When remittances from migrants to their families in developing nations are included, the total jumps to $145 billion ($116 billion from the US), significantly more than the $103.5 billion in government aid that developed countries gave to developing countries. More at http://www.hudson.org/index.cfm?fuseaction=publication_details&id=6202&pubType=HI_PressReleases.

Obama to Consider Signing UN Native Rights Declaration
The US is considering whether to endorse a major UN General Assembly resolution calling for the recognition of the rights of the world's 370 million indigenous peoples over their lands and resources. "The position on [this issue] is under review," according to Patrick Ventrell, spokesperson for the US mission to the UN. Approved by a vast majority of UN member states in September 2007, the General Assembly resolution on the declaration was rejected by the Bush administration over indigenous leaders' argument that no economic or political power has the right to exploit their resources without seeking their informed consent. Three other settler nations of European descent, namely Canada, New Zealand and Australia, also voted against the declaration, which states that indigenous peoples have the right to maintain their cultures and remain on their land. However, last month, the new government in Australia reversed its position, announcing support for the declaration. More at http://www.ipsnews.net/news.asp?idnews=46742.

May 4, 2009

Obama Receives Generally Positive Marks on Foreign Policy for First 100 Days
US President Barack Obama has received generally positive marks for his foreign policy efforts over the course of his first 100 days in office. The National Security Network lists 100 noteworthy accomplishments, including re-engaging with Muslim nations and inaugurating a new era of US-Latin America relations. Human Rights Watch commends Obama for his closing of secret CIA prisons and for implementing a ban on torture, but it condemns Obama for maintaining the war paradigm as a justification for holding suspected terrorists indefinitely without trial. The Institute for Policy Studies has perhaps the harshest review of Obama's foreign policy, giving him a 4 (on a scale of 1 to 10 with 10 as the highest) on Afghanistan, a 5 on trade and globalization and an overall grade of 5.8 on foreign policy issues. More at http://www.nsnetwork.org/node/1281, http://www.ips-dc.org/reports/#1233 and http://www.hrw.org/en/news/2009/04/24/report-card-president-obama-s-first-100-days.

Clinton Speech Stresses "New Generation" for State and Civil Society Relations
Speaking at the Global Philanthropy Forum Conference in Washington, DC, Secretary of State Hillary Rodham Clinton told the audience that the State Department's doors are "wide open" to engage and collaborate with civil society organizations. The April 22nd speech served as another platform for Clinton to promote her "smart power" strategy that emphasizes an increased role for aid and development in American foreign policy. More at http://www.ombwatch.org/node/9943

Ford Foundation to Close Offices in Hanoi and Moscow
After losing almost one-third of its assets during the last year, the Ford Foundation has announced it will close its offices in Russia and Vietnam. "Given our obligation to our grantees worldwide, and the people they serve, we have been forced to make some very hard choices to bring about further savings," Luis A. Ubi–as, the foundation's president, wrote in an e-mail message to Ford employees. The move will eliminate 30 staff positions and save the organization at least $4-million in its fiscal 2010. In his e-mail message, Mr. Ubi–as wrote that the foundation last year was able to reduce its operating expenses by $22-million thanks to cost-cutting efforts, but that amount was not enough to prevent drastic moves and layoffs. He also said that Ford would continue to operate two signature programs in the regions: the International Fellowships Program, which provides scholarships for graduate study to people from developing countries, and a project to ease the health and environmental damage caused by Agent Orange. More at http://philanthropy.com/news/updates/index.php?id=8044.

President of Ecuador Undermines Efforts at Food Sovereignty
On February 18th, the Ecuadorian Congress approved a new Law on Food Sovereignty, which, among other important points, declared the country "free of transgenic crops and seeds." However, in spite of vocal popular opposition, the legislation left the door open to approvals of genetically modified organisms in "exceptional" cases. Now, President Rafael Correa has proposed several changes to the legislation, in what is known in Ecuador as a partial-veto, and sent it back to the Congress. The president's changes dangerously weaken the law and open the door to Terminator seeds. Terminator technology is designed to make "suicide seeds," genetically engineered to be sterile in the second generation. The technology has been widely rejected around the world by farmers' movements, governments, research institutions and UN agencies as dangerous, immoral and undesirable. Alarmed by President Correa's proposals, civil society is now calling on him to drop his amendments and to explicitly ban Terminator technology. More at http://upsidedownworld.org/main/content/view/1827/68/.

April 27, 2009

Close to Two-thirds of Foundations Expect to Reduce Grants in 2009
Close to two-thirds of foundations responding to a new Foundation Center survey expect to reduce the number and/or the size of grants they award in 2009. According to Foundations Address the Impact of the Economic Crisis, organizations seeking new sources of support and recently established entities will be especially challenged in securing foundation funding. In addition, the new survey finds that over half of respondents are reacting to the economic crisis by engaging in more non-grantmaking activities. Two-thirds of these funders plan to seek out more collaborations and partnerships in 2009, while roughly one-third indicate that they will be initiating more convenings. At least one out of five respondents expects to engage in more foundation staff-led activities, provide more technical assistance, offer more bridge/emergency financing, or engage in more advocacy. "Foundations can do so much more than simply make grants," said Bradford K. Smith, president of the Foundation Center. More at http://www.foundationcenter.org/gainknowledge/research/pdf/researchadvisory_economy_200904.pdf.

Economic Woes Threaten Fledgling Philanthropic Efforts in Global South
As global wealth grew over the last two decades, so did philanthropy. New wealthy donors emerged in Africa, Asia, Latin America, the Middle East, and other developing regions, while many governments sought to create laws to spur charitable efforts. But today, with the world reeling from the financial crisis, nonprofit observers wonder if those nascent efforts will cease or slow down. The economy "seems to be decreasing the amount of giving, and slowing the giving dramatically," said Nora Lester Murad, executive director of the Dalia Association, a Gw/oB member and community foundation in the Palestinian territories that relies on public support from Saudi Arabia, the US and elsewhere to make its grants. "We're struggling hard," Ms. Murad said. More at http://philanthropy.com/premium/articles/v21/i13/13000601.htm.

Family Charities Shift Assets to Donor-Advised Funds
Frustrated by the upkeep, philanthropists are increasingly unwinding their private foundations into donor-advised funds, according to the Wall Street Journal. Some have been spurred by tough economic times: Donor-advised funds can cost thousands of dollars less to maintain than foundations. Donor-advised funds have other advantages. Tax deductions for donor-advised funds are bigger. Donors can deduct half their adjusted gross income for an annual cash contribution, and 30% for appreciated securities; Donors to foundations can deduct only of 30% for cash gifts and 20% for appreciated securities. Unlike with foundations, donor-advised funds' investment gains are generally untaxed. An increased interest in unwinding foundations could fuel even faster growth for donor-advised funds. Though still a small piece of the more than $300 billion Americans donate annually to charity, total assets in donor-advised funds reached $27.7 billion in 2007, up from $7.5 billion eight years earlier. More at http://online.wsj.com/article/SB124036165997141685.html.

Ford Foundation Announces New Grantmaking Strategies
The Ford Foundation has announced a number of organizational changes and a set of new strategies aimed at creating fairness and equity for people around the globe. The changes were determined after a year-long evaluation process spearheaded by Ford's president, Luis A. Ubiñas, during which the foundation gathered input from some two thousand individuals and organizations across the many regions it serves. Under the new plan, Ford will focus its grantmaking in eight areas: access to education; democratic, accountable government; economic fairness and opportunity; freedom of expression; human rights; natural resources and sustainable development; sexuality and reproductive health and rights; and social-justice philanthropy. The new priorities are scheduled to go into full effect in October, when the foundation begins its 2010 fiscal year. More at http://fconline.foundationcenter.org/pnd/15017829/story

April 20, 2009

New Legal Status for Socially Oriented Business Gains Ground
Five states and one Indian nation have passed legislation recognizing a new type of business that puts its social goals ahead of making money. In the year since Vermont became the first state to recognize the low-profit limited-liability company, or L3C, Michigan, North Dakota, Wyoming, and Utah have all followed suit, as has the Indian Crow nation. The new for-profit designation is designed to make it easier for socially oriented businesses to attract program-related investments from foundations and additional money from private investors. Often foundations feel like they have to go through the lengthy and expensive process of getting a private-letter ruling from the IRS each time they want to make a program-related investment in a for-profit business that has a social mission, says Robert M. Lang, Jr., who developed the new designation and is leading the effort to promote it. More at http://philanthropy.com/news/conference/7858/new-legal-status-for-socially-oriented-business-gains-ground.

Yale Receives $50 Million to Establish Global Affairs Institute
Yale University has announced a $50 million gift from alumnus John W. Jackson and his wife, Susan, to establish a global affairs institute that inspires and prepares students to pursue careers in diplomacy and public service. The Jackson Institute for Global Affairs will offer courses to Yale students who are interested in global affairs while providing career counseling and placement services for any Eli who wishes to pursue a career in diplomatic service or with international agencies or NGOs. The institute also will assume responsibility for the university's core teaching programs in international affairs, including expanded undergraduate international studies major and master's program in international relations. More at http://fconline.foundationcenter.org/pnd/15017616/story.

IGLHRC Asks Iraqi Government to Protect LGBT People
The International Gay and Lesbian Human Rights Commission (IGLHRC) has sent a letter to the Iraqi Minister of Human Rights, Wijdan Salim, requesting that she takes specific measures to protect lesbian, gay, bisexual and transgender (LGBT) Iraqis and prevent hate crimes against those perceived to be gay. IGLHRC's letter, written to coincide with Ms. Salim's visit to Washington DC, responds to a recent wave of violent crimes against Iraqi citizens perceived to be gay. Just hours before IGLHRC sent its letter, an Iraqi group identified as "Fazilat" (Virtue) posted flyers threatening homosexuals with death on walls in the Sadr City neighborhood of Baghdad. The flyers list the names of some of the would-be targets and states that "we will soon punish all you perverts." Residents of Sadr City say the people who were outed in these fliers have gone into hiding. Previous acts of anti-LGBT violence in Iraq include the April 2nd murder of two men in Sadr City. A local official described these men as "sexual perverts who were killed by members of their tribe to restore their family honor." Prior to death, the men's relatives had disowned them and they were also thrown out of their tribes. So far no one has claimed their bodies and the government has not launched an investigation into the case. These murders took place one week after Iraqi authorities unearthed the bodies of 4 men killed by gunshots in Sadr City. The words "pervert" and "son of a bitch" were written on the chests of the victims. As part of this new wave of violence, a coffee house in Sadr City that was frequented by gay men has also been burnt down. More at http://www.iglhrc.org/cgi-bin/iowa/home/index.html.

New Report Demonstrates Union Oppression in Guatemala
A new report by the International Trade Union Confederation (ITUC) on core labor standards in Guatemala demonstrates how trade unionists are being discriminated against, threatened and even murdered as a result of their trade union activities. The report particularly condemns the failure of the Guatemalan government to ensure that the murders of trade unionists are investigated and prosecuted. "The continuous violent repression of workers' right to form and join trade unions shows that the government is failing to implement the ILO Conventions it has ratified and that trade unionists do not have the liberty to carry out their union tasks without risking their lives," stated Guy Ryder, ITUC general secretary. According to the report, due to legal deficiencies and fierce intimidation from many employers, trade union membership is only about three percent of the work force. The report finds that abuses, discrimination, mistreatment and sexual harassment against women in the maquiladoras are common practice. In only three of the 200 maquilas in operation have trade unions been able to form. More at http://www.ituc-csi.org/IMG/pdf/WTO_Guatemala.final.pdf.

April 13, 2009

US Spent 37% of 2008 Taxpayer Dollars on Military, Starving Other Needs
As taxes come due on April 15, taxpayers can take stock of how the federal government spent each 2008 income tax dollar: 37.3 cents went towards military-related spending, while environment, energy and science-related projects split 2.8 cents, according to a new analysis released by National Priorities Project (NPP). In its annual release, Where Do Your Tax Dollars Go?, NPP offers a breakdown of how the federal government spent the median income family's 2008 tax payments in each state and 200 cities. According to National Priorities Project, 37.3 cents for military-related spending breaks down as follows: 29.4 cents for current military and war spending coupled with 7.9 cents for military-related debt. At 3.8 cents of each dollar, veterans' benefits receive similar proportions of a federal tax dollar as housing and community programs and food-related programs. More at www.nationalpriorities.org.

House and Senate Offer Differing Estate Tax Provisions
The House and Senate have passed budget outlines that differ significantly in how they treat the estate tax. Passed by Congress in 2001, the current law is set to expire in 2011, at which point estate tax levels that applied years earlier will go back into effect unless Congress takes action. The House budget follows the Obama administration's proposal with respect to the tax: keeping it at 2009 levels and eliminating complete repeal of the tax in 2010. If that proposal is enacted, the first $3.5 million inherited by an individual ($7 million for couples) would be exempt from estate taxes, with amounts above that taxed at a 45 percent rate. The Senate's budget would raise the exemption for individuals to $5 million ($10 million for couples) while lowering the tax rate to 35 percent, a proposal that alarms many in the nonprofit sector. Opponents of the Senate proposal cite studies which show that a higher estate tax prompts more giving to charity as a way to shield some assets from taxation. More at http://fconline.foundationcenter.org/pnd/15017611/story.

Senator Mike Crapo (R-Idaho) Joins Philanthropy Caucus
Idaho Senator Mike Crapo is now one of seven Senators to serve on the Senate Philanthropy Caucus. The Caucus, with a partner effort in the US House of Representatives, was formed to inform fellow Senators and Representatives about the important role that foundations play across the country. The Caucus also serves to identify issues of mutual interest to the philanthropic sector and lawmakers. Crapo will be the sole western state senator on the Caucus. The Senate Philanthropy Caucus is co-chaired by Senators Charles Schumer (D-New York) and Richard Burr (R-North Carolina). Other Caucus members include Senators Carl Levin (D-Michigan), Daniel Inouye (D-Hawaii), Olympia Snowe (R-Maine) and Debbie Stabenow (D-Michigan).

Kenyan Government Agrees to Repeal Oppressive Media Law
The Kenyan Government has agreed to repeal the contentious sections of the Communications Amendment Act 2008, popularly known as the Media bill. Section 88 of the Act allowed the Minister for Internal Security to raid and confiscate media property. More at http://www.nation.co.ke/News/-/1056/542530/-/u32x4d/-/index.html.

Forty-two Percent of Pregnant Women in Swaziland are Infected with HIV Virus
About 42 percent of pregnant women in Swaziland are infected with the virus that causes AIDS, a 3 percent jump in a single year, according to a recently released government report. The small southern African nation has the highest AIDS rate in the world, and average life expectancy is just 37 years as a result. The report said the increase in 2008 was partly because more women were taking life-prolonging antiretroviral medication. An estimated 185,000 of Swaziland's 1 million people are HIV positive, and about 30,000 are receiving antiretrovirals. AIDS activists blame King Mswati III for doing too little to spread prevention messages and promote condom usage and HIV testing, and they say he sets a bad example by having 13 wives. More at http://www.awid.org/eng/Issues-and-Analysis/Issues-and-Analysis/HIV-rate-among-women-in-Swaziland-now-42-percent.

April 6, 2009

Foundation Giving Grew Modestly in 2008, Likely to Decline in 2009
In the midst of a deepening recession, US foundation giving grew a modest 2.8 percent, to an estimated $45.6 billion, in 2008 but is expected to decrease in 2009, a new report from the Foundation Center finds. The 2009 edition of "Foundation Growth and Giving Estimates: Current Outlook" found that foundation giving did not grow as much in 2008 as had been expected due to the economic downturn. The report found that 47 percent of top US foundations had reduced their giving last year, and the majority of survey respondents—67 percent—said they expect to reduce their giving to some extent in 2009, with community foundations most likely to say they anticipate a decrease. More at foundationcenter.org/gainknowledge/research/pdf/fgge08.pdf.

Philanthropy on the Rise in the BRIC Countries
Charities Aid Foundation is publishing findings of a study of people in urban areas in Brazil, Russia, India and China showing widespread philanthropy. The study found extensive charitable giving, ranging from over 40% of respondents in Russia and India, over 60% in Brazil and just over 80% in China, though the latter figure may be particularly high due to response to the Sichuan earthquake in May. The most popular cause given to in all four countries was care for children and young people. More at www.synergos.org/globalgivingmatters/briefs/0903roundup.htm#1.

Rising Attacks on Aid Workers Linked to Perception of Ties to Governments
The rising numbers of attacks against global aid workers is threatening their safety and the humanitarian work they provide in many of the worlds' turbulent areas. Government action that intrudes into the operations of nongovernment organizations has contributed to the problem, according to experts. In the US a proposal to require USAID grant applicants to collect and submit personal data on program partners threatens to exacerbate the situation. More at www.ombwatch.org/node/9752.

Group Files Complaint with Treasury against Organizations Raisings Funds for West Bank Settlements
The American-Arab Anti-Discrimination Committee (ADC) has filed multiple administrative complaints with the US Department of the Treasury, requesting investigations into the activities of organizations claiming tax-exempt status yet allegedly raising funds for the development of illegal settlements in the occupied West Bank. The use of tax-exempt status to raise funds for these types of activities is illegal under US law. Further, it is a central part of stated US policy toward the Arab-Israeli conflict that settlement expansion and construction must stop. In filing its complaints, ADC seeks to ensure that US tax laws are not being exploited and violated by certain organizations which are allegedly using their tax-exempt status contradictory to stated US policies on this issue. More at www.adc.org/index.php?id=3437.

March 30, 2009

Senators Propose Measure to Encourage Foundations to Give More
A new bill pending in the Senate is designed to simplify the tax code for private foundations and encourage them to give more money to charity as the recession continues. The bill, S 676, would change the way foundations pay excise tax on their net investment income. "By eliminating a simple provision in the law that creates a tax penalty when foundations increase their charitable giving, we can encourage greater foundation philanthropy and expand the reach of the invaluable charitable work they fund," said Sen. Carl Levin, a Michigan Democrat. Mr. Levin is sponsoring the bill with Sens. Charles E. Schumer, a New York Democrat, and Debbie Stabenow, a Democrat from Michigan. More at http://philanthropy.com/news/updates/index.php?id=7559/.

Pay at Nonprofits Gets a Closer Look
The furor over big bonuses at AIG and other Wall Street firms is prompting nonprofit organizations to brace for more scrutiny of their executive pay practices. Though they haven't received taxpayer bailouts, charities benefit from billions of dollars in subsidies through their tax-exempt status, which could expose nonprofit leaders to the same level of scrutiny that executives at subsidized financial firms are facing. "The train of greater focus on nonprofit executive compensation has left the station, and charity boards better get on, or they're going to suffer greatly for noncompliance," says Michael Peregrine, a partner at McDermott Will & Emery LLP, who advises nonprofits. Nonprofits should start reviewing their pay policies in light of the current political environment, he says. "It just cannot be business as usual." More at http://online.wsj.com/article/SB123811160845153093.html.

Over Twenty Countries Officially Support the Right to Water
Over twenty countries have officially challenged the Ministerial declaration released last week at the World Water Forum, which defines water as a human need rather than a human right, through a counter-declaration. Latin American states have played a key role in gathering signatures onto a declaration that recognizes access to water and sanitation as a human right and commits to all necessary action for the progressive implementation of this right. The growing list currently includes: Bangladesh; Benin; Bolivia; Chad; Chile; Cuba; Ecuador; Ethiopia; Guatemala; Honduras; Morocco; Namibia; Niger; Panama; Paraguay; South Africa; Spain; Sri Lanka; Uruguay; and Venezuela. Switzerland has declared its support although a formal signature will take months to finalize. In addition, nine countries have also signed onto a statement that calls on states to develop a global water forum within the framework of the UN based on the principles of democracy, full participation, equity, transparency and social inclusion. This list currently includes: Benin; Bolivia; Chile; Cuba; Ecuador; Honduras; Panama; Paraguay; and Venezuela. The People's Water Forum, a civil society and labor coalition representing nearly 70 countries, has called for water to be recognized as a human right and for an end to the World Water Forum.

Cambodia Joins Countries Squelching Civil Society in the Name of Fighting Terror
The Cambodian government has vowed to include NGOs in the consultation process for drafting new legislation regulating their activities, but this has done little to assuage the fears of civil society groups who see the impending law as a threat. If passed, the bill is expected to require all NGO funding to pass through the Ministry of Economy and Finance in an attempt to prevent terrorist groups acting as, or financially supporting, such groups. Ou Virak, director of the Cambodian Centre for Human Rights, believes the legislation would be a disaster for local NGOs. "Money cannot go through the ministry because we would not be willing to pay a bribe to ensure we get our money," he said. One particular concern is the restriction on NGOs from partaking in any activity serving the interest of a political organization, which many believe is an attempt by the government to muzzle criticism. Ou Virak said that if the government needs an anti-terrorism law, it should pass it. More at http://khmernz.blogspot.com/2009/02/govt-to-seek-input-on-ngo-law.html.

March 23, 2009

880 Million People Lack Access to Drinking Water
Around 880 million people do not have access to decent sources of drinking water, while 2.5 billion people do not have access to proper sanitation, the Organization for Economic Cooperation and Development said in a report issued last week. By 2030, the number of people living under severe water stress is expected to rise to a staggering 3.9 billion—half the world's population. Among other astonishing figures related to water:

• Only 2.5 percent of earth's water is freshwater, only 30 percent of the freshwater is accessible, and less than 1 percent of this is accessible freshwater for human consumption. In other words, only .0003 percent of the world's total water is available for drinking and hygiene;
• Half of the world's largest 500 rivers are seriously polluted or depleted;
• It takes 6,800 liters of water to produce 1 pound of beef;
• Average water used per day by the 1.1 billion without safe water: 5 liters;
• Average water used in one flush of an American toilet: 13 liters.

More facts about water at the following links: masetto.sourceoecd.org/pdf/factbook2008/302008011e-08-01-01.pdf and ecologic.org/en/node/426.

Social Justice Advocates Criticize World Water Forum as Showcase for Corporate Control
The communiqué emerging from the 5th official World Water Forum, convened every three years by the World Water Council, aims at tackling the world's water crisis. But campaigners representing the rural poor, the environment and organized labor have blasted the communiqué as a sideshow, stage-managed for corporations who are major contributors to the World Water Council. Maude Barlow, senior advisor to the president of the UN General Assembly, said the Forum promoted privatization of resources by "the lords of water" and excluded dissident voices. She called for the meeting to be placed under the UN flag. "We demand that the allocation of water be decided in an open, transparent and democratic forum rather than in a trade show for the world's large corporations," Barlow told a press conference. The final communiqué describes access to safe drinking water and sanitation as "a basic human need" rather than a "basic human right", a position decried by a broad range of civil society groups. Also decried is the communiqué's promotion of the use of water to produce energy from hydroelectric dams and the increased production of fuel from crops, both of which could lead to further inequity and injustice. For a range of articles on the World Water Forum, go to news.google.com/news?ned=us&ncl=1319139686.

Integrated Solutions are Need for Water, Climate and Food Crises
In a new report, the Institute for Agriculture and Trade Policy (IATP) argues the convergence of multiple crises—climate, food and water—requires a global shift from the industrial model of agriculture to more sustainable practices. "We can no longer afford to tackle these crises separately," said IATP's Shiney Varghese. "We must take a comprehensive approach that supports sustainable practices in agriculture that are good for people and the planet, protect our water resources and provide enough food for everyone." In addition to pointing out key opportunities for change in the coming year, the report offers a series of recommendations to governments: an international rights-based approach that ensures water availability for ecosystems and people; support for agro-ecological practices; harmonization of policy approaches to water, agriculture and climate; recognition of women's involvement in farming, food production and water management; and inclusion of small-scale farmers in reforming policy. More at www.tradeobservatory.org/library.cfm?refid=105477.

World Water Pledge Encourages Individual Action to Protect Water Resources
It is estimated that by 2025, 2 out of 3 people in the world will be living under drought conditions. Parts of the United States are already feeling the pressure: The water footprint of the US is more than double the global average, with each American consuming an average of 1,240,000 liters per year. This puts enormous pressure on freshwater resources and increases the costs and demand for access, delivery, and sanitation of water. Gw/oB member EcoLogic Development Fund has created a World Water Day Pledge to encourage individual action to conserve water resources. More at ecologic.org/node/425.

March 16, 2009

Foundation Center Examines Expectations for Giving in 2009
The Foundation Center has released a new research advisory that examines how foundations expect their 2009 giving to be affected by the economic downturn. The advisory, "Grantmakers Describe the Impact of the Economic Crisis on Their Giving", looks at public statements made by more than a third of the one hundred largest US foundations ranked by total giving and thirty-five other foundations and corporate funders that have described their plans. Of the hundred largest foundations, only two have announced that they intend to increase their giving in 2009: the Gates Foundation, which said it will increase giving in 2009 by raising its payout rate, and the MacArthur Foundation, which expects to maintain or increase its giving. To keep giving stable despite shrinking endowments and assets, ten large foundations, including the Hewlett, Packard, and McKnight foundations, are planning to increase their payout rates or establish cost-cutting measures such as freezing salaries, leaving staff vacancies unfilled, or reducing staff benefits. More at http://fconline.foundationcenter.org/pnd/15017193/story.

Former State Department Envoy Selected as MacArthur President
The John D. and Catherine T. MacArthur Foundation has announced Robert Gallucci, dean of the Edmund A. Walsh School of Foreign Service at Georgetown University, as its new president, effective July 1. Gallucci served as ambassador-at-large and special envoy for the US State Department, dealing with threats posed by the proliferation of ballistic missiles and weapons of mass destruction. He was the chief US negotiator during the North Korean nuclear crisis of 1994 and served as assistant secretary of state for political and military affairs from 1992 to 1993. He also served as senior coordinator for nonproliferation and nuclear safety initiatives in the former Soviet Union and as deputy executive chairman of the United Nations Special Commission overseeing the disarmament of Iraq in 1991. More at http://www.macfound.org.

Van Jones to Join Obama Administration as Special Advisor for Green Jobs
Van Jones, one of the most popular presenters at Gw/oB's 2008 conference, will leave his post at Green for All to become Special Advisor for Green Jobs, Enterprise & Innovation at the White House Council on Environmental Quality. His duties will include helping to shape and implement job-generating climate policy, working to ensure equal protection and equal opportunity in the administration's climate and energy proposals, and publicly advocating the administration's environmental and energy agenda. More at http://www.greenforall.org/?gfa_splash=1.

High Prevalence of Child Marriage in India Continues, Study Finds
A large proportion of women in India were married when they were still children, a study has found. UNICEF defines child marriage as marriage before 18 years of age. Marriage at a very young age carries grave health consequences for both the girl and her children and has been increasingly viewed as a violation of human rights. In the study's sample, 23% of women had been married before they were 16, 46% were married when they were between 16 and 17, and 3% percent were married before they turned 13. India set the legal age for marriage at 18 years in 1978. While the practice of child marriage has decreased slowly, its prevalence remains unacceptably high, and rural, poor, less educated girls and those from central or eastern regions of the country were most vulnerable to the practice, the researchers wrote. More at http://www.alertnet.org/thenews/newsdesk/T204495.htm.

March 9, 2009

March 9, 2009

NCRP's Criteria for Philanthropy at Its Best Sparks Controversy
The National Center for Philanthropy's new Criteria for Philanthropy at Its Best has sparked controversy since its release last week. NCRP has created a set of guidelines for grantmakers "so they can operate more ethically and increase their impact on the world today". Among the excellent recommendations: foundations should increase their payout to at least 6 percent, provide at least 50 percent of grant dollars to benefit lower-income communities, communities of color and other marginalized groups, provide at least 25 percent of grant dollars to advocacy, organizing and civic engagement, and make at least 50 percent of grant dollars as multi-year grants. NCRP's Criteria has its detractors: Paul Brest of the Hewlett Foundation believes that NCRP's "hierarchy of ends is breathtakingly arrogant", while Forbe's magazine claims the Criteria "is not only replete with flawed logic, poor economic understanding and selective data, but is most disingenuously an Orwellian world of deliberate redefinition." More at www.ncrp.org/blog/2009/03/new-criteria-for-philanthropy-at-its.html, www.huffingtonpost.com/paul-brest/ncrp-at-its-most-presumpt_b_172086.html, and www.forbes.com/2009/03/03/ncrp-criteria-foundation-opinions-contributors_threatens_philanthropy.html.

Half of Wealthy Donors Say They Would Give Even if They Got No Federal Tax Break, Survey Finds
Amid the debates over President Obama's proposal to reduce tax breaks for affluent donors, a study released last week shows that half of wealthy Americans say their charitable giving would be unaffected by the elimination of federal tax provisions designed, in part, to spur philanthropy. Nearly 52 percent of wealthy donors said their giving would stay the same if they no longer received income-tax deductions for their donations, according to the study by Bank of America and the Center on Philanthropy at Indiana University. A significant minority (47 percent) of people in the survey reported they would give less if they could no longer take a deduction for their charitable gifts. Of those respondents, 37 percent said their donations would "somewhat decrease," while 10 percent predicted their gifts would "dramatically decrease." If the estate tax were eliminated, 10 percent said they would donate less money, while 37 percent said they would give more. More at newsroom.bankofamerica.com/index.php?s=press_kit&item=63 and philanthropy.com/premium/articles/v21/i10/10000701.htm.

Standard & Poor's Launches Low Carbon Index
Standard & Poor's, the world's leading index provider, has announced the launch of the first in a series of global low carbon indices to meet the growing investor demands for environmentally focused indices. The S&P U.S. Carbon Efficient Index will measure the performance of large cap U.S. companies with relatively low carbon emissions while seeking to closely track the return of the S&P 500. The new Index provides a benchmark to the market, as represented by the S&P 500, while allowing investors to create financial products that seek to gain exposure from a more environmentally efficient perspective. More at www2.standardandpoors.com/spf/pdf/index/030909_CarbonEfficientRelease.pdf?vregion=us&vlang=en.

Chicago City Council supports the Convention on the Rights of the Child
On February 11, the Chicago City Council passed a resolution of support for the Convention on the Rights of the Child (CRC), agreeing to "advance policies and practices that are in harmony with the principles of the Convention on the Rights of the Child in all city agencies and organizations that address issues directly affecting the City's children." Chicago's initiative was part of a national effort to build grassroots support for human rights treaties and to put additional pressure on the federal government to ratify the CRC, which has been signed by every country in the world except the U.S. and Somalia.

March 2, 2009

Now is the Time to Push for Changes in How Foundations Operate, Writes Foundation Expert
In a column in the Chronicle of Philanthropy, veteran philanthropic expert Pablo Eisenberg writes that now is the time for enlightened foundation executives, members of the Obama administration and the public to push for reform within the philanthropic sector. Among Eisenberg's recommendations: Require foundations to give at least 6 percent of their assets to charities annually in the form of grants (moving away from the current requirement of 5 percent for both grants and administration); abolish or tightly limit trustee fees for foundation board members, which currently add up to $300-million annually; limit the maximum size of foundations (Eisenberg views mega-foundations as a danger to democracy given that billions of dollars are distributed by a few power holders without any public discussion, political process or public accountability); require family foundations to add outsiders to their boards; encourage foundations to provide 50 percent of all grants in the form of general operating support and earmark another 25 percent for public-policy and advocacy activities; and make the foundation's mission a key element in deciding how to invest the foundation's assets. Read the full opinion piece at http://philanthropy.com/premium/articles/v21/i09/09003901.htm.

Google Changes Approach to Philanthropy
Larry Brilliant, the executive director of the Google non-profit arm Google.org is stepping aside, as the company said it would narrow the scope of its philanthropic efforts. In a blog post, Brilliant said that Google has decided to focus on projects that "make the most of Google's strengths in technology and innovation." He cited an existing project that uses Google's aggregated search data to track flu activity and another designed to help produce cheaper electricity as examples. Google doesn't plan to cut back on funding philanthropic projects, according to Brilliant. "We stand behind the commitment made in 2004 to devote 1% of Google's equity and profits to philanthropy," he wrote. More at http://blogs.wsj.com/digits/2009/02/24/google-switches-approach-to-philanthropy/.

Chinese Tycoon Plans To Give Away His Fortune
A Chinese tycoon plans to give $600 million to charity. Cao Dewang has told authorities he intends to set up a foundation and give it 70% of his shares in Fuyao Glass Industry Group Co., the China Securities Regulatory Commission said. If authorities approve Cao's foundation, the glassmaking tycoon would become China's most charitable entrepreneur, replacing Yu Pengnian, a real estate king who has donated some $450 million to charity since 2003. More at http://news.yahoo.com/s/afp/20090220/od_afp/chinabusinesscompanycharity_20090220171115.

Scientists are Blocked from Researching Impacts of Genetically Modified Crops
Biotechnology companies are stopping scientists from researching the efficiency and environmental impacts of genetically modified crops, according to a statement submitted to the US Environmental Protection Agency (EPA) by 26 specialists in corn pests. The scientists submitted the statement anonymously for fear of being blacklisted. The New York Times interviewed the scientists, whose stories of the industry's chokehold on research include outright prohibition of research and laundering of data. Scientists are concerned that neither the EPA nor farmers can get enough non-industry-controlled science to make informed decisions about whether GM crop technologies are worth either the money or the risks. "US agriculture uses far more biotech than any other nation. The companies foisting these technologies on the developing world at a considerable profit are US-based. The fact that neither US regulatory agencies, nor American farmers, can get independent scientific assessment is especially alarming," said Pesticide Action Network's Senior Scientist, Dr. Marcia Ishii-Eiteman. More at http://www.nytimes.com/2009/02/20/business/20crop.html?_r=3.

February 23, 2009

Foundations Address the Financial Crisis in a Range of Ways
Foundations have been responding to the economic crisis in a range of waysÑsome quite enlightened, others perhaps less soÑaccording to informal research that Gw/oB has undertaken. Among the more positive responses: offering emergency lines of credit (including low or zero interest loans) and/or emergency funding; switching from restricted to unrestricted funding to allow grantees maximum flexibility; contacting grantees early to see if grants might be needed earlier than anticipated; providing frequent and transparent communication with grantees; and increasing payout. Among the less positive responses: suspending grantmaking entirely to increase a foundation's corpus. Gw/oB will soon share more of our findings with members. In the meantime, advice for grantmakers (some good, some not so!) can be found at the following:

• Association of Small Foundation: http://www.smallfoundations.org/site/pp.asp?c=fvKRI7MPJqF&b=4845661
• Foundation Center: http://foundationcenter.org/focus/economy/
• Council on Foundations: http://www.cofinteract.org/economy/
• Grantmakers in the Arts: http://www.giarts.org/interests/interests_show.htm?doc_id=777271
• National Center for Family Philanthropy
• http://www.ncfp.org/newsroom/family_giving_news/2009/09_january__lead_article.

For Investing With Madoff, Private Foundations Could Face Tax Fines
Foundations that lost billions of dollars investing with Bernard L. Madoff have another reason to fret: they could be socked with sizable fines for failing to exercise sound judgment. Under tax rules, private foundations can be penalized for failing to vet their investments properly, to heed red flags or to diversify prudently. While foundations are exempt from federal income taxes, they are subject to this excise tax, intended to keep them from taking outsize risks that could threaten their very survival. "The I.R.S. could well assert these taxes," said Marcus S. Owens, a tax lawyer and partner at Caplin & Drysdale in Washington. More at http://www.nytimes.com/2009/02/12/business/12tax.html?_r=3.

Activists in Ghana Succeed in Campaign to Protect Forests
After many years of struggle, environmental groups in Ghana have finally won a major victory in protecting this country's forests and the people who depend on them. The Minister of Lands and Natural Resources has declared that mining will no longer be allowed in protected forest reserves. This decision follows years of destruction of forests by mining interests, which have displaced thousands of citizens and contaminated water supplies. The victory is the result of persistent pressure from members of the National Coalition on Mining, which comprises over 30 community associations and national NGOs. More at http://www.greengrants.org/grantstories.php?news_id=54.

Economic Crisis Challenges West African Organic Cotton Trade
As fuel and fertilizer prices increase, many cotton farmers in West Africa have been making the transition to organic cotton. Though organic is still a tiny slice of the cotton market, global organic cotton production grew by more than 150% worldwide in 2008, and West Africa in particular saw a two-fold increase over 2007. Now, the global recession has leveled growth for organic cotton. "The financial crisis has reduced business' appetite for riskÉ They are waiting to see how their consumers react [to the recession]," according to Jens Soth of Helvetas, a Swiss NGO that promotes organic agriculture. Despite the economic downturn, Soth says he is optimistic that organics will continue to thrive. More at http://www.irinnews.org/Report.aspx?ReportId=82947.

February 16, 2009

Stimulus Bill Does Not Include Philanthropy Measures
The stimulus package which President Obama is expected to sign this week does not include a number of measures that nonprofit and foundation leaders had proposed to help ease the impact of the recession on the philanthropic world. These measures included a $15-billion bridge-loan fund that would help charities that receive late payments from cash-strapped state governments; a "flat" excise tax for private foundations, instead of one that varies between 1 percent and 2 percent, pushed by the Council of Foundations, which argues that the current system penalizes foundations that substantially increase their distributions in a given year, thus affecting the five-year average used to determine their tax rate; and a measure to allow people to transfer money from their individual retirement accounts to donor-advised funds tax-free. More at http://philanthropy.com/news/updates/index.php?id=7089.

House Passes Bill Creating Right to Contest Placement on Watch Lists
On February 4th, the US House of Representatives passed H.R. 559, The Fair, Accurate, Secure, and Timely Redress Act, that would create a process for individuals placed on government watch lists to challenge their classification. The bill is a response to overbroad and inaccurate lists that have denied many innocent Americans of basic benefits and rights, including flying on commercial planes, getting credit or jobs. There is good news for the charitable sector if H.R. 559 becomes law: The process established in the bill could be a model for creating due process rights for charities accused of supporting terrorism. More at http://www.ombwatch.org/node/9710.

Some Foundations Making Changes in Investment Strategies, Survey Finds
Shaken by a decline in asset values that averaged 28 percent in 2008, some US foundations are making changes in their investment managers and strategies, a new report from the Council on Foundations finds. The report found that while three-quarters of respondents are sticking to their investment strategy, those making changes are generally becoming more conservative. The 20 percent of respondents indicating a change to their level of diversification generally said they were moving toward becoming more diversified. In addition, the survey found that while nearly half of respondents' assets were held in equities at the end of 2008, more than two-fifths of respondents said that the share of their assets in equities had dropped, while more than a third said they had increased the proportion of assets held in fixed-income securities and cash. More at http://fconline.foundationcenter.org/pnd/15016807/story

Bolivian Constitution Extends New Protections for Women
Following a referendum in January, Bolivia has a new constitution, with initial results suggesting that almost two-thirds of the turnout voted in favor. The news has delighted women's rights advocates. Among the key issues that were included in the final draft are guarantees for the sexual and reproductive rights of women and men, a ban on discriminating on the basis of sexual orientation, a recognition of the economic value of homemakers as a source of wealth, and a guarantee that women will have access to land. More at http://www.awid.org/eng/Women-in-Action/Announcements2/ RH-Reality-Check-A-New-Dawn-in-Bolivia-Constitution-Extends-New-Protections-for-Women.

February 9, 2009

Giving to International Issues by US Family Foundations is Weak, Report Finds
Giving to international affairs by US family foundations fared poorly across the nation in 2007, a new report from the Foundation Center finds. The percentage of dollars given to international affairs ranged from a low of 3 percent in the Northeast to 5 percent in the Midwest and West. The report, which examined giving by more than forty thousand foundations, found that education was the top funding priority of family foundations located in the Northeast, Midwest, and South and that health accounted for the biggest share among family foundations in the West. Overall, US family foundations awarded more than $18 billion in grants in 2007, a 13 percent increase over the previous year. More at http://fconline.foundationcenter.org/pnd/15016715/story.

World Social Forum Attracts 130,000 Social Justice Advocates to Brazil
The World Social Forum 2009 was characterized by a strong emphasis on crucial current issues related to the struggle for indigenous rights in the Americas, the war on Gaza, and the actual and potential social impacts of the economic crisis. Under throbbing heat and intense tropical rainstorms, over 130,000 activists from 142 countries came together to establish connections between diverse social movements, debate possible solutions to the current financial crisis, and celebrate the construction of a more just and sustainable world. More at http://www.socialwatch.org/en/noticias/noticia_284.htm.

Ban Ki-moon Makes Global Plea to Launch a "Green New Deal"
UN Secretary-General Ban Ki-moon called on the world's business and political leaders to use the current economic crisis to launch a global "Green New Deal" that will create jobs and fight climate change by investing in renewable energy and technological development. "Climate change threatens all our goals for development and social progress. Indeed, it is the one true existential threat to the planet," he said at the World Economic Forum in Davos. The gathering drew parallels from the Global Compact of corporate responsibility launched 10 years ago by former Secretary-General Kofi Annan. "On the other hand, it also presents us with a gilt-edged opportunity. By tackling climate change head-on, we can solve many of our current troubles, including the threat of global recession." he said. More at http://www.reuters.com/article/environmentNews/idUSTRE4B519W20081211.

NGO Bill Imperils Civil Society Funding in Egypt
A bill modifying Egypt's law regulating NGOs, while responding to pressures for democratic reform, will likely consolidate authoritarian rule, according to the Carnegie Endowment for International Peace. Although the text of the bill most likely will not be made public before its formal introduction, some provisions have emerged. While it appears that some of the objectionable aspects of the current law will be improved in the new bill, other provisions, including a possible mechanism to choke off foreign funding to certain NGOs, would have dire consequences. More at http://carnegieendowment.org/arb/?fa=show&article=22697.

February 2, 2009

US Foundation Giving for International Purposes Reaches Record Level
Estimated US foundation giving for international purposes reached a record $5.4 billion in 2007, and 2008 giving is likely to top that record. According to "International Grantmaking IV: An Update on U.S. Foundation Trends," a new report prepared by the Foundation Center in cooperation with the Council on Foundations, the prospects for international giving in the near term are also less pessimistic than current market conditions might suggest. "The single most important message from this study is that international grantmaking is here to stay," says Foundation Center President Bradford K. Smith. "More US foundations are spending more resources on international problems, challenges, and opportunities than at any time in history." More at http://foundationcenter.org/gainknowledge/research/pdf/intlgmiv_highlights.pdf.

"Is Corporate Philanthropy to Philanthropy What Military Music is to Music?" asks Foundation Chief
Is corporate philanthropy to philanthropy what military music is to music? This question arose when Paul Brest of the Hewlett Foundation participated in a meeting on corporate philanthropy moderated by Matthew Bishop, co-author of a new book, "Philanthrocapitalism: How the Rich Can Save the World." According to Brest, the answer to the question depends on how the corporation reconciles its legitimate business motive of improving its bottom line with its philanthropic goals. While some individual philanthropists seek recognition in their communities or beyond, corporations may wish to improve community relations or identify their brand with good causes. More at http://www.huffingtonpost.com/paul-brest/is-corporate-philanthropy_b_161067.html.

Senator Grassley to Include Volunteer Mileage in Economic Stimulus
Ranking member of the Senate Finance Committee Charles Grassley (R-IA) plans to offer an amendment to the American Recovery and Reinvestment Tax Act of 2009 when it receives floor consideration this week. The amendment, Giving Incentives to Volunteers Everywhere (GIVE) Act of 2009 (S.243), would amend the IRS Code of 1986 to allow the Secretary of the Treasury to establish the mileage rate for calculating the deductible cost of operating a vehicle for charitable purposes and to exclude charitable mileage reimbursements from gross income. According to Grassley, if we want to encourage volunteerism, we need to bring charitable driving rules into the current century. The stimulus focuses on paying jobs, but the non-paying jobs are just as important for a strong society, especially providing help in an economic crisis. Reported by the Council on Foundations.

Ethiopia to Impose Tight Restrictions on Aid Agencies
The Ethiopian Parliament has approved legislation that will severely restrict the work of foreign aid agencies as well as Ethiopian organizations receiving more than 10% of their funding from abroad. At the heart of the bill is a clause aimed at preventing foreign interference in issues which the government believes should be a purely Ethiopian affair. Some of the organizations affected could be seen as political and have long been a thorn in the government's flesh. But if the law is rigorously applied, it could also catch much less controversial groups which are doing valuable work but would never be able to fund their activities from purely local sources. The bill bans international NGOs from five sorts of activity: The advancement of human and democratic rights; promotion of equality between peoples, sexes or religions; campaigning for children's rights or the rights of the disabled; conflict resolution and reconciliation; and work on criminal justice issues. Opposition MP Temesgen Zewdie was quoted as saying, "As far as we're concerned, it's an attempt by the ruling party to banish all those it sees as a threat to its tight grip on power." The US government in particular has protested loudly about the proposals, but to very little effect. More at http://news.bbc.co.uk/go/pr/fr/-/2/hi/africa/7814145.stm.

January 26, 2009

Congressman John Lewis Named New Co-chair of Congressional Philanthropy Caucus
Representative John Lewis (D-GA) will be the new democratic co-chair of the Congressional Philanthropy Caucus, and a new republican co-chair is expected to be named soon. The Senate Philanthropy Caucus, launched in July 2008, is co-chaired by senators Charles Schumer (D-NY) and Richard Burr (R-NC). According to the Council on Foundations, a new Congress presents a great opportunity for foundation leaders to reach out to members of Congress to develop relationships and inform them about the important work foundations undertake every year. The Council on Foundations encourages foundations to push their lawmakers to become members of the philanthropy caucuses. More at http://www.cof.org/Action/content.cfm?ItemNumber=10987&navItemNumber=10993.

Many Foundations Have Lost One-Third of their Assets, Study Finds
The steep decline in the stock market last year triggered an erosion of foundation wealth, with many grantmakers losing nearly one-third of their assets, according to a new Chronicle of Philanthropy survey of some of the nation's largest philanthropies. For the 57 grantmakers that provided financial data for 2007 and 2008, endowments declined a median of 29 percent. Foundations with investments in bankrupt or hard-hit companies fared much worse. For example the Starr Foundation in New York, which held a significant portion of its portfolio in American International Group stock, lost $1.7-billion, almost 57 percent of its assets. More at http://philanthropy.com/news/updates/6881/many-foundations-have-lost-almost-one-third-of-their-assets-chronicle-study-finds.

With Assets Declining, Foundations Look to Congress for Help
In a rare direct push for legislative help, US foundations have been lobbying for a piece of the $1 trillion economic stimulus package to help ease the pain of billions of dollars in recession-related investment losses. Many in the foundation community historically have avoided pushing legislation, often out of fear of violating federal lobbying restrictions. However, over the past year private foundations on average are estimated to have lost 30 percent of the value of their endowments, or more than $200 billion in total. Without a change in the tax laws for foundations, the sharp decline in foundation assets could mean that foundations will pay more in excise taxes in 2010 and beyond. By law, private foundations are required to pay out 5 percent of the value of their endowments each year and are also taxed on net income at a rate of 1 percent, based on a five-year average. The problem this year is that with endowment values down sharply, foundations will have to spend more than the five-year average amount next year in order to maintain a 1 percent excise tax rate. More at http://fconline.foundationcenter.org/pnd/15016522/story.

Most Community Foundation Grants Come From Donor-Advised Funds, Report Finds
While donor-advised funds (DAF) comprise just 33 percent of the community foundation sector's total assets, they account for 62 percent of the community foundation sector's annual grantmaking, a new report from the Council on Foundations finds. According to the report, DAFs had an estimated $31 billion in assets in 2007, the majority of which ($16.5 billion, or 53 percent) was held by community foundations in some 49,000 funds. In addition, the payout rate from community foundation DAFs was three times the payout rate for non-donor advised funds: 16.4 percent versus 5 percent. In comparison to other funds, a higher proportion of grant dollars from DAFs was used to support international affairs. Available at http://www.cof.org/files/Documents/Research/08donoradvisedpaper.pdf.

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