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Summer 2007
Global Giving Round-Up
Overviews of best-practices around the world and links to learn more about them
Spotlight on private giving in China
According to the 2007 Hurun Report's Chinese Philanthropists List (www.hurun.net), compiled by Briton Rupert Hoogewerf, of the $1.29 billion donated to charity in China last year, the top 100 philanthropists accounted for $505 million in donations, up from $436 million the previous year. Three-quarters of the funds donated by the top 100 were distributed by foundations created by the donors themselves, according to the survey. "Almost all the top 100 rich Chinese are accepting the concept of charity. With a good policy environment, more and more wealthy people are setting up their own charitable funds." said Hoogewerf, who launched the annual Chinese philanthropists ranking in 2003. Topping the 2007 Hurun list was Shenzhen hotel entrepreneur Yu Pengnian, 85, reported to have given $258 million -- almost all of his wealth -- to charity since 2003, to fund free cataract surgery for nearly 100,000 people in China. (China Daily, April 12, 2007)
Philanthropy can eclipse G8 on poverty
Wealthy philanthropists have the potential to do more than the Group of Eight (G8) leading nations to lift Africa out of poverty, according to Jeffrey Sachs, special adviser to the United Nations Secretary-General. In an interview with the Financial Times in April, Sachs said that the financial clout of individuals such as Microsoft's Bill Gates and international investor Warren Buffett, who have pledged billions of dollars to global health and education, could eclipse flagging governmental initiatives. "The Rockefeller Foundation was the world's most important development institution of the 20th century, and the Gates Foundation can be that of the 21st century," he said. Other, less wealthy people could also contribute to a new private sector movement to help speed the elimination of diseases and tackle specific challenges, Sachs added. "There are 950 billionaires whose wealth is estimated at $3.5 trillion. An annual 5% 'foundation' payout would be $175 billion per year -- that would do it." He was responding to a report by the Organisation for Economic Co-operation and Development that aid from rich countries to Africa remained static in 2006 even though G8 leaders promised in 2005 to spend $50 billion more each year to 2010 on aid, with half the increase going to sub-Saharan Africa. At the most recent G8 summit, concluded on June 10, world powers pledged $60 billion to fight AIDS and other diseases in Africa but development campaigners complained that most of that money represented past pledges that remain unfulfilled. (Reuters, June 7, 2007; Financial Times, April 10, 2007)
World's ultra-rich gave 10% of wealth to charity in 2006
The world's wealthiest people gave an estimated $285 billion to philanthropic causes in 2006, according to the 2007 World Wealth Report, an annual look at the financial practices of high-net worth individuals. The report was produced by Merrill Lynch & Company and the Capgemini Group. Wealthy people with financial assets of more than $1 million (excluding the value of their homes) were worth $37.2 trillion last year according to the report. In the report's first breakout of philanthropic giving in its 11-year history, it found that 11 % of wealthy individuals said they gave at least 7% of their assets to charity. Among the richest surveyed -- those whose assets exceed $30million -- 17% percent said they gave 10% of their wealth to philanthropic causes last year. Americans and Canadians together gave 7.6% of their assets to charity in 2006, 20 percent more than in 2005. High-net worth individuals in the Asia Pacific regions gave 11.8 %, and those in the Middle East gave 7.7%. Wealthy Europeans gave 4.6% of their assets, while rich Latin Americans gave only about 3% of their financial holdings to charity. Latin Americans gave the least, according to the study, because philanthropy is not as well developed there as it is in North America and Europe. The 2007 World Wealth Report is available on Merrill Lynch's website, www.ml.com. (Chronicle of Philanthropy, July 2, 2007; Merrill Lynch News Release, June 27, 2007)
Foundation launched to bridge knowledge gap in Middle East
United Arab Emirates Prime Minister Sheikh Mohammed bin Rashid Al Maktoum has announced a $10 billion education fund to bridge what he called a wide knowledge gap between the region and the developed world in the West and Asia. "Our only choice is to bridge this gap as quickly as possible, because our age is defined by knowledge," said Sheik Mohammed, who announced the launch of the Mohammed Bin Rashid Al Maktoum Foundation at the meeting of the World Economic Forum in Jordan in May. Mohammed, who also rules the emirate of Dubai, said the foundation will establish research centers in the region and in 2008 will begin providing scholarships for students to top world universities and institutes. In addition, the foundation will provide leadership programs for youth in government, the private sector and in non-governmental organizations. The foundation will be based in the United Arab Emirates and will begin to implement programs later this year. (Agence France-Presse, May 20, 2007; dubaiphotomedia.com, May 19, 2007)
India's Tata family among winners of 2007 Carnegie Medal
Winners of the Carnegie Medal of Philanthropy (www.carnegiemedals.org) awarded every two years to honor families and individuals from around the world who have dedicated their private wealth to the public good, were named in June. The 2007 Medals were given to the Tata family of India, Eli Broad, the Heinz family, and the Mellon family. "By courting risk, taking a long-term perspective, and embracing complex, seemingly intractable challenges, these philanthropists have introduced hope to entire communities, enriching lives and improving livelihoods in the process," the Carnegie Corporation of New York said in announcing this year's winners. The Tata family gives away between 8 and 14 % of the net profits from its controlling company each year to a wide range of programs for the public benefit in India, and has established pioneering institutions in social sciences and medicine. The Heinz family's giving is aimed at the environment, education, economic opportunity and the arts. The Broad Foundation, established by industrialist Eli Broad and his wife Edythe, promotes entrepreneurship for the public good, while the Mellon family's philanthropic giving, through numerous family foundations, supports a range of causes in the US including cultural institutions, higher education, conservation and science. (Carnegie Corporation of New York News Release, June 18, 2007)
Van Gendt named most influential in Netherlands philanthropy
Rien van Gendt, Executive Director of the Van Leer Group Foundation (www.vanleergroupfoundation.nl), was recently selected by FM, a Dutch magazine on philanthropy, as the most influential player in philanthropy in the Netherlands in 2007. Van Gendt was tapped from a pool of 50 well-recognized civil society actors. Within the Netherlands, van Gendt is widely respected as a "bridge builder" between endowment funds and other civil society organizations. (EFC News, June 29, 2007)
MacArthur Foundation to promote philanthropy in virtual worlds
The John D. and Catherine T. MacArthur Foundation (www.macfound.org), a leader in building the field of digital media and learning, is exploring how to help advance the use of virtual worlds for social benefit. Virtual worlds such as Second Life (www.secondlife.com) and There (www.there.com) are participatory communities that permit individuals to interact with million of "residents" from their computers. In recent years, they have become popular as organizing tools for business collaboration and social activities alike. A recent Walk for Hunger organized via Second Life, for instance, drew nearly 400 participants. As part of its exploration into the role of philanthropy in virtual worlds, MacArthur has awarded $550,000 to the Center on Diplomacy at the University of Southern California to lead this effort. Through the grant, MacArthur, which already supports several projects with "virtual" components, will pursue virtual conversations on issues such as migration, human rights, education, and global and civic engagement, and examine ways foundations can help address community needs. (MacArthur Foundation News Release, June 22, 2007)
Clinton Foundation backs sustainable development effort in Latin America
The William J. Clinton Foundation (www.clintonfoundation.org) is launching a sustainable development initiative focused on alleviating poverty in Latin America, and has received pledges of at least $100 million each from Canadian businessman Frank Giustra and Carlos Slim Helú, chairman of Mexican conglomerate Grupo Carso, to fund the initiative. The Clinton-Giustra Sustainable Growth Initiative will bring together key stakeholders from the business community and natural resources sector, including the mining industry, in Latin America and other parts of the developing world. More than twenty resource, finance, and supporting companies have endorsed or signed on as partners to the initiative. "Collective action is the best strategy to address the economic, educational, and health hurdles that confront millions in the developing world," said Bill Clinton, who added that he was "humbled by the enormous financial commitment to this work by Frank Giustra and Carlos Slim. Ultimately, our goal is to bridge the gap between the rich and poor, and give all people a shot at a better life." Slim's philanthropic activities were also the subject of a profile June 28, 2007 in the New York Times. (William J. Clinton Foundation News Release June 21, 2007)
Environmental champions tapped for Goldman Prize
A Zambian who rescued endangered wildlife and community livelihoods, and a Peruvian who found innovative ways to protect the fragile Amazon rainforest while ensuring the rights of local indigenous people are among this year's winners of the Goldman Environmental Prize (www.goldmanprize.org), announced in April. "This year's Prize recipients have succeeded in combating some of the most important environmental challenges we face today," said Goldman Prize founder Richard N. Goldman. "Their commitment in the face of great personal risk inspires us all to think more critically about what ordinary people can do to make a difference." The $125,000 Goldman Environmental Prize, now in its 18th year, is awarded annually to six grassroots environmental heroes and is the largest award of its kind in the world. This year's winners include Hammerskjoeld Simwinga, Zambia; Julio Cusurichi Palacios, Peru; Ts. Munkhbayar, Mongolia; Willie Corduff, Ireland; Orri Vigfússon, Iceland; and Sophia Rabliauskas, Canada. The prize was established in 1990 by San Francisco civic leader and philanthropist Goldman and his late wife, Rhoda H. Goldman. Since receiving a Goldman Prize, eight winners have been appointed or elected to national office in their countries, including several who became ministers of the environment. The 1991 Goldman Prize winner for Africa, Wangari Maathai, won the 2004 Nobel Peace Prize.
Donors launch "50% League" to encourage greater giving
A network of 80 generous individuals -- including Warren Buffett's sister and the contractor who funded Paul Farmer's hospital in Haiti -- have launched the 50% League, a project of the Bolder Giving Initiative (www.boldergiving.org). Each has given away half or more of their net worth, their business profits, or their income for three years or more. Their total donations range from $130 million by an environmentalist heir to $30,000 given by a small business owner concerned about child abuse. Together they have given away more than half a billion dollars. The purpose of the 50% League, featured in the March 2007 issue of Worth Magazine, is to publicize some of these role models in hopes of inspiring others to give at their full potential. The group notes that if each of the eight million millionaires in the US increased their donations by just $6,250 a year, they could provide everyone in the world with food, education, health care and a clean environment, based on UN estimates. Profiles of many of the 50% League members can be found on the Bolder Giving website. The 50% League is a project of the Bolder Giving Initiative of the Zing Foundation, founded by nationally known donor organizers Anne and Christopher Ellinger, authors of We Gave Away a Fortune and founders of More than Money. (Bolder Giving Initiative News Release, May 8, 2007)
Hedge fund manager among UK's most generous philanthropists
Chris Hohn gave $460 million to the Children's Investment Fund Foundation (www.ciff.org) last year, making the hedge fund manager one of Britain's most generous philanthropists, with even more expected to be given this year. Hohn, founder of the hedge fund, The Children's Investment Fund (TCI), told investors in New York in June that the foundation -- run by his wife Jamie Cooper-Hohn -- had passed $1 billion less than five years after it was set up. Hohn's donations put him at the forefront of UK venture philanthropy, which has seen financiers and businessmen bring entrepreneurial skills and hedge fund-style activism to charities. The Children's Investment Fund supports projects for children in the developing world, with a focus on HIV. TCI automatically gives 0.5% of its funds under management to the CIFF, a third of its annual fee. Investors pay an extra 0.5% to CIFF if it produces returns above 11 per cent a year, a level it has far outstripped since it was set up in 2002. Hohn voluntarily donates the majority of the profits earned by TCI after paying staff. (Financial Times, July 1, 2007)
Conference highlights need for new alliances among foundations
At the European Foundation Centre (www.efc.be) annual meeting in Madrid June 1-3, which drew nearly 700 participants, speakers emphasized that foundations in the United States and Europe have much to learn from each other in an era of increased scrutiny and demands for accountability and results, according to the Chronicle of Philanthropy. "This is an important moment in philanthropy on both sides of the Atlantic," said Barry Gaberman, who retired last year after 35 years at the Ford Foundation and who specialized in many of the foundation's international efforts. Gaberman, a featured speaker, noted that today's foundation assets "are mind-boggling and that's even before the intergenerational transfer of wealth that will take place on both sides." The conference underlined the need for foundations to create new alliances and become more open-minded as they devise ways to tackle complex global issues such as health and climate change. The challenges of this goal were illustrated by the experience of Uday Khemka, managing trustee of the Nand & Jeet Khemka Foundation (www.khemkafoundation.org) which has offices in New Delhi and London. At a session on global warming, Khemka explained that he had helped create the Climate Change Philanthropy Action Network after seeking to join with other grant makers, businesses and policy makers, and finding no such organization existed (see related brief, below). Khemka, a member of Synergos' board of directors and of its Global Philanthropists Circle, said he sees tremendous opportunities for grantmakers in this area. (Chronicle of Philanthropy, June 14, 2007)
Promoting strategic philanthropy to address climate change
Following on the launch of the Climate Change Philanthropy Action Network (CCPAN) at the Iceland Climate Change Action Summit in October 2006, the second meeting of CCPAN took place in London in July 2007, bringing together a diverse group of 60 philanthropists and foundations from around the world to explore ways to promote strategic philanthropy in the area of climate change mitigation. Convened by Uday Khemka, managing trustee of the Nand & Jeet Khemka Foundation and founder of CCPAN, the meeting provided an overview of the latest scientific, political, economic and business developments in the climate change field. Sal LaSpada of the Institute for Philanthropy challenged the group to consider how best to move from conversation to intentional, coordinated, strategically aligned collaboration to tackle the global problem. Subgroups on policy, business and mass awareness were created to identify key areas for action as the work of CCPAN evolves. CCPAN plans to develop a publication to set forth a framework for action, a menu of options for philanthropists and case studies of philanthropic activities in climate change mitigation. CCPAN intends for this resource to be made available to the entire global philanthropic community. A date of September 15, 2007 was set for the next full meeting of CCPAN in Taiwan, which aims at mobilizing for the first time a group of philanthropists from across Asia who are interested in strategic action on climate change. The CCPAN website, www.climatephilanthropists.org, is expected to go live by the end of summer 2007. For further information, contact Denise Lee, d.lee@khemkafoundation.org.
Chicago conference to highlight visionary leadership in global giving
The fourth annual conference of the Chicago Global Donors Network, "Visionary Leadership in Global Philanthropy," will be held in Chicago on September 23-25, 2007. The meeting will bring together a diverse group of global donors to explore ways to identify, nurture and support leaders in Chicago, and around the world, who are facing the most challenging issues of the day. Keynote speaker for the event is physician and infectious disease specialist Paul Farmer, a pioneer in international public health who founded the nonprofit Partners in Health. Other featured speakers are Wendy Paulson of the Paulson Family Foundation, and Bruce Babbitt, former US Secretary of the Interior, who represent leadership in public service, philanthropy and advocacy in the environmental and conservation arenas. "In order to find opportunities to address global challenges in issues such as public health, population movement, human rights and climate change, we need to learn from and support those individuals who have dedicated their lives to finding innovative and sustainable solutions," said Tracey Poe, Chair of the Chicago Global Donors Network. In recognition that donor support needs to be informed, strategic and thoughtful, Poe said the conference would provide a forum for "careful examination of the ways in which we can leverage our network's resources, both human and financial, to increase the amount and impact of global giving. Toward this end, the meeting will offer participants a wide variety of opportunities to engage with leaders from around the world who are addressing challenges such as girls' education, strategic partnerships, and civil society in the Middle East. For further information is online at www.chicagoglobaldonors.org.
Nelson Mandela and the Gates family to be honored at University for a Night 2007
Nelson Mandela, the former president of South Africa, and the Gates family (Bill Gates, Melinda French Gates and William H. Gates Sr.) will be honored with the David Rockefeller Bridging Leadership Awards at University for Night on October 4 in New York City. Each year, Synergos holds University for a Night to bring together leaders from around the world -- from business, government and civil society -- to explore ways to create systemic solutions to poverty, inequity, conflict, environmental degradation and other critical problems. The event also raises funding for Synergos' work. Mr. Gates Sr., South African philanthropist Tokyo Sexwale and former Mexican Under Secretary of State for Human Rights Marieclaire Acosta are among the featured speakers. A distinctive feature of the event are discussions on particular global challenges and initiatives led by "Distinguished Faculty," the key speakers and other global leaders and experts. Instituto Rukha is Event Underwriter and The Rockefeller Foundation has provided support for Synergos ongoing work. For more information visit www.universityforanight.org.
© 2007 The Synergos Institute/World Economic Forum
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