Philanthropy News Report

Provided as a service of Bentz Whaley Flessner

Friday, May 30, 2008

Higher Education Is in Flux as Demographics Change, Federal Report Shows

For-profit colleges are serving a bigger a share of a market that includes an increasing number of women and minority students, according to report by the U.S. Education Department.

"The Condition of Education 2008" summarizes important developments and trends in education using the latest available data. The report presents 43 indicators on the status and condition of education. The indicators represent a consensus of professional judgment on the most significant national measures of the condition and progress of education for which accurate data are available. The 2008 print edition includes 43 indicators in five main areas: (1) participation in education; (2) learner outcomes; (3) student effort and educational progress; (4) the contexts of elementary and secondary education; and (5) the contexts of postsecondary education.

The complete report is available via the National Center for Education Statistics.

Full-text article by Peter Schmidt is available via The Chronicle of Higher Education, 5.30.08. [Subscription required.]

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Thursday, May 29, 2008

Consumers Union Establishes Hospital-Ratings Service

Consumers Union, a nonprofit organization that publishes Consumer Reports magazine, is establishing a new hospital-ratings service.

The service will include around 3,000 facilities, and consumers will be able to see a graph showing how intensely each hospital treats patients, on a scale from zero for the most conservative to 100 for the most aggressive.

Full-text article by Anna Wilde Mathews is available via the Wall Street Journal, 5.29.08.

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IRS Makes Changes Intended to Help Donors

The Internal Revenue Service is beefing up its efforts to increase the level of transparency at charities as philanthropists demand better tools to evaluate how their money is spent.

For the first time in almost 20 years, the annual tax form — known as the Form 990 — that most nonprofit groups have to fill out every year is getting a makeover. The tax agency hopes the changes it has made to the form will provide potential donors with a standardized way to glean information on charities. Organizations will begin using the new form next year.

Full-text article by Mike Spector is available via the Wall Street Journal, 5.29.08.

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Gala Auction Feels a Chill From Wall Street’s Slump

At the 2008 Robin Hood Foundation benefit this week, auctiongoers donated that much money to charity. But many of the market wizards are making less these days — and they are giving away less, too.

Full-text article by Jenny Anderson is available via the New York Times, 5.29.08.

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Oxford U. Announces $2.5-Billion Campaign

American universities have long dominated the “billion-dollar club,” the select group of nonprofit institutions capable of pulling off a campaign to raise $1-billion or more.

With Oxford University’s announcement today of its campaign to raise $2.5-billion, some British institutions are not that far behind.

Full-text blog posting by Holly Hall is available via The Chronicle of Philanthropy's Prospecting Blog, 5.28.08.

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Corporations Give $54-Million to Disaster Relief in China

American corporations have pledged at least $54-million in cash and noncash support to help earthquake victims in China. The figure is the third largest ever given by American businesses for international aid. Approximately 19 companies have pledged at least $1-million. Leading the effort is Amway, a direct-sales company, with $4.3-million, and Wal-Mart, with more than $3-million. Figures were compiled by the Business Civic Leadership Center at the Commerce Department.

Full-text article by Ylan Q. Mui is available via the Washington Post, 5.27.08.

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Wednesday, May 28, 2008

eNonprofit Benchmarks Study

M+R Strategic Services and NTEN have announced the release of an updated eNonprofit Benchmarks Study for 2008.

The study analyzes online messaging, fundraising, and advocacy data from 21 leading nonprofit organizations in order to provide readers with reliable current information.

Questions answered by the study include: How does your email list stack up against other nonprofits? Is it just your open rate that’s declining, or are all nonprofits seeing the same results? And just what is a good online fundraising response rate?

Download the study via eNonprofits Benchmarks Study.

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Hospitals, Patients Clash Over Privacy Rights

When patients check into hospitals or doctor offices, they presume their information will be kept in strictest confidence, but often, amid the pile of papers, they overlook fine print describing how their personal information can be farmed out for fundraising.

Hospitals and other health care organizations widely use patient information, without patients' explicit permission, to raise funds. To the dismay of privacy-rights advocates and some in the medical field, fundraising to benefit medical institutions is allowed under federal law.

Full-text article by Elizabeth Fernandez is available via San Francisco Gate.com, 5.27.08.

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University of Florida - Loss of State Matching Funds Programs

UF officials are working to cope with the loss of two state-funded gift matching programs eliminated by the Florida Legislature in the most recent state budget.

More than $75 million in state money, which would have matched donor contributions to UF through the Alec P. Courtelis Facilities Enhancement Challenge Grant Program and the University Major Gifts Program, now hangs in the balance, according to UF officials.

Full-text article by Travis Pillow is available via the Independent Florida Alligator, 5.27.08.

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Nonprofit Sector Grows

U.S. nonprofits are a critical part of the U.S. economy, employing almost 13 million people, paying nearly $490 billion in wages, and making up 5 percent of gross national product, a new report says.

Over the past 10 years, the sector has expanded in almost every dimension, says the 2008 Nonprofit Almanac, published by the Urban Institute Press.

The report, with over 200 pages of statistics and analysis, details the size and scope of the nonprofit sector and compares trends among nonprofits to other sectors of the U.S. economy in the areas of wages and employment, giving and volunteering and finances.

Full-text article is available via the Philanthropy Journal, 5.19.08.

Complete report: The Nonprofit Almanac 2008, by Kennard T. Wing, Thomas H. Pollak, and Amy Blackwood, is available from the Urban Institute Press (paper, 9" x 11", 270 pages, ISBN 978-0-87766-736-0, $39.50).

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U.S. Medical Research Gets $600 Million From Institute

The Howard Hughes Medical Institute, one of the world's largest private philanthropies, today announced a $600 million initiative to fund risky but potentially lifesaving medical research by 56 of America's top scientists. By endowing scientists' research over many years, the institute hopes they will make major discoveries in a variety of fields, including genetics and biology.

Full-text article by Philip Rucker is available via the Washington Post, 5.27.08.

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Tuesday, May 27, 2008

Juniata Alumnus Left the College Everything, Even the Cat

Juniata College has received its largest bequest ever — worth some $6.5-million. Dr. Larry Johnson, a radiologist, left everything to the college when he died, apparently of a heart attack, last July. Besides Princess (his cat), the college got a $1.3-million condo, a Lexus, artwork, a 1,500-CD music collection, a .38-caliber pistol, the food in Dr. Johnson’s kitchen, and rolls of toilet paper that he had purchased in bulk.

Full-text article by Bill Schackner is available via the Pittsburgh-Post Gazette, 5.27.08.

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House of Representatives Passes IRA Incentive

The U.S. House of Representatives has passed a bill that would renew a tax break that encourages older Americans to give money from their individual retirement accounts to nonprofit causes.

Full-text article by Grant Williams is available via the Chronicle of Philanthropy, 5.29.08. [Subscription required.]

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Salaries of Fund Raisers Rose by 5% Last Year, a New Study Finds

Salaries of fund raisers in the United States rose by 5 percent last year, to a median $63,000 — meaning that half earned more and half earned less — according to the annual compensation survey by the Association of Fundraising Professionals.

A full copy of the survey is available free online in the Member Gateway section of the association's Web site. Nonmembers may purchase a copy of the survey for $85. To order a copy, send an e-mail message to profadv@afpnet.org.

Full-text article by Holly Hall is available via the Chronicle of Philanthropy, 5.29.08. [Subscription required.]

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Growing Concerns and Assets

The struggling economy and the possibility of new Congressional regulations pose concerns to organizations that offer donor-advised funds, one of the fastest-growing types of philanthropy.

Full-text article by Noelle Barton and Elizabeth Schwinn is available via the Chronicle of Philanthropy, 5.29.08. [Subscription required.]

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Web Charities Help Teachers Equip Classrooms

Educators turn to DonorsChose.org and other online charities for operating and programming support. Educators write detailed proposals about items they need and explain how they will be used. Online philanthropists can fund a portion or all of the project, and the charity buys the supplies and ships them to the school. All donors get an e-card from the teacher, and those who give more than $100 or who give the last amount to fulfill the need get photos and handwritten thank-you cards from students and the teacher.

Full-text article by Hannah Sampson is available via the MiamiHerald.com, 5.25.08.

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Detroit Medical Center Plans to Build Pediatric Center

The Detroit Medical Center plans to build a new $34 million Children's Hospital Pediatric Center across the street from the existing hospital, expanding the footprint of the downtown campus for the first time in more than 30 years and adding much-needed clinic and doctors' office space for children receiving outpatient treatment.

Full-text article by Christina Rogers is available via the Detroit News, 5.16.08.

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Art Museums Look Beyond Galas to Raise Money

Rather than relying solely on tried-and-true galas, art museums are adding unique offerings to special events to raise money — private tours of noteworthy collectors’ homes, the chance to see works not on public display, or dinners with artists.

Full-text article by Lisa Orkin Emmanuel is available via the San Francisco Chronicle, 5.22.08.

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Friday, May 23, 2008

University of South Florida To Cut 450 Jobs

With a warning that class sizes will enlarge and course offerings will tighten, the University of South Florida announced plans Wednesday to cut $50.4 million by eliminating about 450 jobs.

Full-text article by Adam Emerson is available via Tampa Bay Online.com, 5.22.08.

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Thursday, May 22, 2008

News Analysis: Athletics Directors Cry Foul Over NCAA's Data

A recent report from the National Collegiate Athletic Association has raised the hackles of some college officials, who charge that the data are incomplete and that the NCAA has clouded the real fiscal value of sports programs.

Full-text article by Eric Kelderman is available via the Chronicle of Higher Education, 5.22.08. [Subscription required.]

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Digital Savvy Cities

Austin, TX, is the most “Digital Savvy” city, according to a new analysis from consumer and media research firm Scarborough Research. Las Vegas, NV, Sacramento and San Diego are also leading Digital Savvy cities, with 10 percent of their residents having this higher level of technological orientation and adoption. Nationally, six percent of all consumers are classified as Digital Savvy.

Full-report "Understanding the Digital Savvy Consumer," is available via Scarborough Research, May 2008.

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Commentary: College Alums Urged to Cut School Endowments from Wills

Financial adviser Christiane Delessert is starting to consider her own retirement. As one of her last professional goals in counseling clients, she's on a mission to get individuals to stop giving money to Harvard University.

In fact, she's challenging her clients to reconsider all of their donations, and to look at their personal legacy in a different light.

Full-text article by Chuck Jaffe is available via MarketWatch, 5.20.08.

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California Hospitals Brace for Earthquake Upgrades

Legislative mandates requiring the state's hospitals to replace or retrofit buildings has caused fear and trembling in the industry ever since the Northridge earthquake knocked 23 facilities out of commission in 1994.

The latest Rand Corp. report in 2007 estimated the costs at $110 billion. The figure did not include financing charges, which could double it. The California Hospital Association says that 66 percent of hospitals in the state are operating in the red.

Nonprofits Scripps and Sharp medical systems rely on philanthropy and bond markets. And others aren't sufficiently creditworthy to qualify for revenue bonds.

Full-text article by Ned Randolph is available via the San Diego Business Journal, 5.19.08.

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T. Boone Pickens Donates $100-Million to Oklahoma State U.

As oil prices rise to historic heights, the billionaire oilman T. Boone Pickens is sharing some of the wealth with Oklahoma State University, his alma mater. Mr. Pickens donated $100-million for endowed chairs and professorships at the institution.

Full-text article by Kathryn Masterson is available via the Chronicle of Higher Education, 5.21.08. [Subscription required.]

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Texas Foundation Names New Leaders

The Southwestern Medical Foundation, in Dallas, has announced Kern Wildenthal, retiring president of the University of Texas Southwestern Medical Center, as its new president, and William T. Solomon as its new chairman of the board.

Full-text article available via the Dallas Morning News, 5.18.08.

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Foundation Center Names New Leader

The Foundation Center, in New York, has picked Bradford K. Smith as its next president, succeeding Sara L. Engelhard. Ms. Engelhard is retiring after 17 years as head of the organization.

Press release is available via the Foundation Center, 5.21.08.

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American Universities Under Pressure to Develop More Programs in India

As more American college students become interested in studying in India, universities in the United States are under pressure to increase their number of exchange programs with higher-education institutions in India, said David C. Mulford, the U.S. ambassador to India.

Full-text article by Shailaja Neelakantan is availble by The Chronicle of Higher Education, 5.20.08. [Subscription required.]

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Notre Dame Alum Donates $20 million to School

Ralph Stayer, the chief executive officer of Wisconsin-based Johnsonville Sausage Co. is donating $20 million to the University of Notre Dame.

Full-text article by the Associated Press is available via the Chicago Tribune, 5.19.08.

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8 U.S. Metropolitan Areas Dominate in Granting Degrees

Eight major metropolitan areas have dominated higher education since 1989 according to a report by an Atlanta-based higher-education council.

The report, "Higher Education in America's Metropolitan Areas," is based on U.S. Department of Education data from 1989 to 2005. The data show that San Diego has grown fastest among the top eight in academic degrees awarded, followed by Atlanta and New York, while Atlanta has grown fastest in terms of student enrollment.

Full-text article by Ingrid Norton is available via The Chronicle of Higher Education, 5.20.08. [Subscription required.]

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Monday, May 19, 2008

Raising Money by Cellphone: The Next Big Thing

One Washington consultant predicts that raising money with text messaging and cellphones will expand greatly in the United States in the near future.

Full-text blog posting by Holly Hall via The Chronicle of Philanthropy's Prospecting Blog, 5.16.08. [Subscription required.]

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Cleveland Medical School Students Will Go Tuition-Free

The Cleveland Clinic Lerner College of Medicine of Case Western Reserve University (Cleveland, OH) has announced that it will cover all future tuition charges, the latest in a developing trend as schools try to relieve education debts for new doctors.

Full-text article by Thomas J. Sheeran is available via Ohio.com, 5.15.08.

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Thursday, May 15, 2008

The 100 Most Powerful People in New York Real Estate

Article listing the top 100 most powerful people in New York real estate.

Full-text article published by The New York Observer, 5.13.08.

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Colleges Foot a Large Share of Athletics Expenses

The National Collegiate Athletic Association has revealed the growing amount of financial support that colleges provide to their sports programs, using detailed accounting to separate institutional funds from money earned through ticket sales and private donations.

Full-text article by Eric Kelderman is available via The Chronicle of Higher Education, 5.15.08. [Subscription required.]

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Diverse Campuses and College Fund-Raising Approaches

Philanthropy increasingly fuels higher education in the United States, and colleges and universities should adapt their fund-raising strategies to anticipate coming trends that could shape how much donors give.

A report issued by the consulting firm Changing Our World, identifies a number of trends that will probably affect private giving to institutions, including the growing diversity of student bodies, a plateau in enrollments, the growth of community colleges, and the rising cost of a college education.

Full-text article published via The Chronicle of Higher Education, 5.15.08. [Subscription required.]

Copies of the report are available for $125 via onPhilanthropy.com.

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Wednesday, May 14, 2008

Colleges Turn to Donors to Meet Aid Pledge

Dozens of colleges and universities have announced efforts to overhaul their aid programs, and now they're working on funding those grand plans. While scholarships have always been a popular earmark for higher education philanthropists -- more than a third of restricted donations go to financial aid -- such gifts are being sought even more as schools ensure they can afford their much-lauded magnanimity.

Full-text article by Melissa Korn is available via The Wall Street Journal, 5.13.08.

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Private Philanthropy's Global Reach

The changing nature of private giving and its emergence as a worldwide phenomenon are spotlighted in a report by the Hudson Institute – The Index of Global Philanthropy 2008. The Index is the only comprehensive source on the scope and magnitude of private giving to the developing world.

Full-text article by Jane Lampman is available via The Christian Science Monitor, 5.12.08.

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Corporate Giving in Uncertain Times

As the national economy sinks deeper into recession, the nonprofit sector is starting to feel the same anxiety that has beset the financial, housing and retail sectors.

Nonprofit groups fear that companies forced to tighten their budgets will start by reducing or eliminating their philanthropic programs. While corporate giving constitutes only about 5 percent of all donations nationwide, any cuts could have significant impact on programs and organizations.

Full-text article by Clay Holtzman is available via MSNBC.com, 5.11.08.

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Microsoft Executive Will Lead Gates Charity

A well-known Microsoft Corp. executive was named to lead the Bill & Melinda Gates Foundation into a period that will test how well it can effectively distribute an unprecedented amount of money.

Jeff Raikes, a 27-year Microsoft veteran, will become chief executive, the Seattle-based foundation said Monday. He will succeed Patty Stonesifer, who has overseen the philanthropic activities of Microsoft Chairman Bill Gates and his wife, Melinda Gates, since the 1990s.

Full-text article by Robert A. Guth is available via The Wall Street Journal, 5.13.08. [Subscription required.]

Other related media postings:
Raikes To Run Gates Foundation by Maurna Desmond via Forbes, 5.13.08
Interview with Bill and Melinda Gates via NPR's All Things Considered, 5.12.08

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Struggling Communities Turn to Colleges

In economically troubled areas, small private colleges help generate development projects in large part as a matter of survival.

Full-text article by Karin Fischer is available via The Chronicle of Higher Education, 5.16.08. [Subscription required.]

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Nature Conservancy Hires Investment Banker as Its New Chief Executive

The Nature Conservancy today named an investment manager with a deep background in environmental issues to be its new chief executive.

Mark R. Tercek, 51, managing director at the investment firm Goldman Sachs and head of the firm’s Center for Environmental Markets, will replace Steven J. McCormick, who left the charity in October.

Full-text article by Peter Panepento is available via The Chronicle of Phialanthropy, 5.9.08. [Subscription required.]

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The Nonprofit World: Its Size and Scope

Nonprofit groups are growing faster than the rest of the economy, according to figures released this month by the Urban Institute in Washington.

While the U.S. gross domestic product increased by approximately 35 percent from 1995to 2005, after adjusting for inflation, the revenue of nonprofit groups rose by nearly 55 percent and their total assets grew by 77 percent.

Full-text article available via The Chronicle of Philanthropy, 5.15.08. [Subscription required.]

The Nonprofit Almanac 2008 is available from the Urban Institute Press for $39.50.

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Tuesday, May 13, 2008

How the Economy Impacts Capital Campaigns

Fund raisers across the country say that individuals, corporations, and foundations they expected to make big gifts to capital campaigns this year have refused to do so, while others say that donors are making smaller-than-expected contributions.

Full-text article by Holly Hall is available via The Chronicle of Philanthropy, 5.15.08. [Subscription required.]

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Monday, May 12, 2008

The Generation Gap in Fund Raising Is a Myth

Donors across all generations tend to give roughly the same amount to philanthropic causes, when controlling for other factors such as income, education and frequency of attendance at religious services, according to "Generational Differences in Charitable Giving and in Motivations for Giving," a study conducted by the Center on Philanthropy at Indiana University and sponsored by Campbell & Company.

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University of St. Thomas Receives $10 Million Gift

Eugene and Mary Frey, an Edina, Minnesota couple with a long history of supporting the university, are making a $10 million gift to provide grants to undergraduate students with financial need. This is the largest single gift for a scholarship fund in the history of the university.

Full-text article by Paul Walsh and Mary Lynn Smith is available via The Star Tribune, 5.8.08.

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Update on Billion-Dollar Campaigns at 28 Universities

The 28 American universities that are seeking to raise at least $1-billion collected a total of $525.6-million in gifts and pledges during the last month for which they had data available.

Full-text article by Marisa Lopez-Rivera is available via The Chronicle of Higher Education, 5.8.08. [Subscription required.]

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Georgia Aquarium Keeps Title as World's Biggest With $110-Million Expansion

The Georgia Aquarium has announced plans to build a $110-million, 1.5 million-gallon expansion, holding on to its reputation as the “world’s largest aquarium”.

Full-text article by Mark Davis is available via The Atlanta-Journal Constitution, 5.7.08.

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Massachusetts Lawmakers Consider Taxing Big Universities

In Massachusetts, legislators are considering taxing higher-education institutions with endowments over $1-billion, arguing that the universities don’t do enough for their surrounding neighborhoods considering their vast wealth.

Full-text article by Peter Schworm and Matt Viser is available via The Boston Globe, 5.8.08.

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Friday, May 9, 2008

Social Networks: A Tool for Fundraising

Last winter, the Case Foundation launched an experiment in online giving, partnering with two media outlets, Parade Magazine and Facebook, to promote grassroots fundraising through Web 2.0 tools like social networks and charity badges.

Together, the giving challenges pulled in some 80,000 donors and raised more than $1.7 million for thousands of causes, not counting the extra $750,000 put up by Case and partners as prize money for causes with the largest number of unique donors.

The challenges brought some insightful revelations about the benefits of Web 2.0 fundraising.

Full-text article by Elizabeth Floyd is available via The Philanthropy Journal, 5.6.08.

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Wednesday, May 7, 2008

Smartlink.org Creates Blueprint for Effective Philanthropy in Tough Economic Times

At a time when many in the community are feeling the effects of a possible recession, Smartlink.org – a nonprofit online resource of Community Giving Resource (CGR) that helps individual donors and small foundations explore issues and give strategically within communities – released guidelines for leveraging philanthropy to build stronger communities. Smartlink.org’s guidelines address the growing need for reliable information for donors, driven by a sharp increase in family philanthropy, the inter-generational transfer of wealth, and the growing interest of maturing Baby Boomers to give back.

Full-text press release is available via BusinessWire.com, 5.6.08.

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Foundation Commits $50-Million to Community Colleges

The Bernard Osher Foundation, in San Francisco, has pledged up to $50-million to the California Community Colleges system to support scholarships at 109 colleges.

Full-text article by Beckie Supiano is available via The Chronicle of Higher Education, 5.6.08. [Subscription required.]

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Tuesday, May 6, 2008

Bank of America linking donors, nonprofits

Bank of America is launching a new section on its website that will let nonprofits search for grant opportunities among some of the foundations whose charitable assets the bank manages.

With 150 professionals, the bank's Philanthropic Management unit manages $35 billion in charitable assets, serving as sole trustee or co-trustee for 2,000 private foundations, and advising over 10,000 individual and institutional clients.

Full-text article via Philanthropy Journal, 5.1.08.

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Monday, May 5, 2008

Americans Rank Health Care Near Top of Their Economic Woes, New Poll Finds

Healthcare costs rank among Americans’ top personal economic problems, and their struggles to deal with those costs have affected both their financial well-being and their family’s health care, a new Kaiser Family Foundation poll finds.

Survey Brief: Economic Problems Facing Families

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GAO Finds Health Savings Accounts Used by Wealthy, Not Average Working Americans

A Government Accountability Office brief released on April 30 reports that health savings accounts are used more often as a tax shelter by wealthy individuals rather than as a mechanism to help working families obtain needed health care.

Full-text brief is available via the GAO Office, 5.1.08.

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U.S. Faces Shortage of Generalist Physicians to Provide Primary Care for Adults

The United States faces an impending shortage of generalist physicians to provide primary care for adults, according to a study published April 29 as a Health Affairs web exclusive.

Full-text blog posting via the Healthcare Financial Management Association, 4.30.08.

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Thursday, May 1, 2008

Colleges Step Up Fund-Raising Efforts to Support Student Aid

Under pressure to be more affordable, many institutions feel a heightened need to provide more financial aid -- and they are turning to alumni and other private donors for help.

Full-text article by Beckie Supiano is available via The Chronicle of Higher Education, 5.1.08. [Subscription required.]

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Stanford breaks ground on $90M new medical school site

The Stanford University School of Medicine broke ground on a new $90 million administrative center.

The five-story, 120,000-square-foot limestone and glass building will be called the Li Ka Shing Center for Learning and Knowledge, named after Li Ka-shing, a Hong Kong business executive who's been a longtime supporter of Stanford University and its century-old medical school.

Stanford is also spending about $2 billion on a joint expansion and seismic upgrade project at Stanford Medical Center, which is made up of the side-by-side Stanford Hospital & Clinics and Lucile Packard Children's Hospital.

Full-text article by Chris Rauber is available via the Silicon Valley/San Jose Business Journal, 4.29.08.

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Wall Street's Woes Hit Charities

New York charities, long dependent on steady donations from New Yorkers who earn big salaries on Wall Street, are starting to feel the strain of the uncertain economic times.

Full-text article by Louise Roug is available via The Los Angeles Times, 4.29.08.

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