Philanthropy News Report

Provided as a service of Bentz Whaley Flessner

Thursday, April 30, 2009

The Amazing Growth of Online Video

Online video usage is a mainstream online activity and growing quickly. According to a recent report by the marketing research firm Nielsen, the number of Americans watching online video has more than tripled in the last 5 years.

Over the last year alone, viewers of online video grew 10%, the number of videos watched per user grew 27% and the total numbers of minutes spent watching online video grew 71%.

Full-text blog posting by Steve King is available via OpenForum.com, 4.29.09.

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Tuesday, April 28, 2009

Young Workers Discuss Their Future in the Nonprofit World

The economic crisis is shaking up the nonprofit world in ways that are making it more difficult for young workers to find jobs but could also present them with new and unusual opportunities to advance, said speakers and participants at a conference in Washington that wrapped up on Saturday.

Full-text article by Caroline Preston is available via The Chronicle of Philanthropy, 4.27.09.

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Foundations Plan to Shrink Grants

The number and size of foundation grants will likely decrease this year, and grants for upstart organizations will be hard to come by, according to a study by the Foundation Center.

The report Foundations Address the Impact of the Economic Crisis states that close to two-thirds of foundations expect to reduce the number and/or the size of grants they award in 2009.

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$1 Million Gift to Fund Museum Research Project

A $1 million gift to The Center for the Interdisciplinary Study of Museums (CISM) at UT Dallas, by Dallas philanthropist and civic leader Nancy Hamon, will support research that will enable a book series on the history of art museums.

Full-text article is available via the UT Dallas, 4.28.09.

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Monday, April 27, 2009

Economic Signals Surpass Expectations

Demand for big-ticket manufactured goods and new home sales both were better than expected in March, raising some hopes that the long slides are slowly coming to an end.

Full-text article by The Associated Press is available via The New York Times, 4.25.09.

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Grim Times Continue for Higher Education

Despite the promises made by the new Obama administration, the impact of America's collapsing economy continues to rattle the nation's higher education institutions. From the Ivy League universities to little-known colleges, falling revenues and the declining value of endowments have resulted in staff redundancies, cancellations of new building works and even cuts in enrollment numbers.

Full-text article by Leah Germain is available via University World News, 4.27.09.

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Raising Bill Gates

Behind the Bill Gates success story is the other William Gates. The senior Mr. Gates balanced a family thrown off kilter by a boy who appeared to gain the intellect of an adult almost overnight. He served as a quiet counsel as his son jumped into and thrived in the cutthroat business world. When huge wealth put new pressure on the son, the elder Gates stepped in to start what is now the world's largest private philanthropy.

Full-text article by Robert A. Guth is available via The Wall Street Journal, 4.25.09.

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Texas Baptists Cautious in Uncertain Economy

Texas Baptist churches and institutions report belt-tightening measures, but few are ready to push the panic button.

Full-text article by Ken Camp is available via The Baptist Standard, 4.16.09.

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New Unrest on Campus as Donors Rebel

Financially strapped colleges are angering their benefactors by selling school radio stations, auctioning Georgia O'Keeffe paintings and dipping into endowments for purposes their donors may not have intended.

Full-text article by John Hechinger is available via The Wall Street Journal, 4.23.09.

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Foundation of The Times Suspends Gift Program

The New York Times Company Foundation announced it was suspending its grant-making and matching gift program two days after the company reported a $74.5 million loss in the first quarter of 2009.

Full-text article by Stephanie Strom published via The New York Times, 4.23.09.

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End the University as We Know It

GRADUATE education is the Detroit of higher learning. Most graduate programs in American universities produce a product for which there is no market (candidates for teaching positions that do not exist) and develop skills for which there is diminishing demand (research in subfields within subfields and publication in journals read by no one other than a few like-minded colleagues), all at a rapidly rising cost (sometimes well over $100,000 in student loans).

Full-text article by Mark C. Taylor is available via The New York Times, 4.26.09.

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Volunteer Time Was Worth More Than $20 an Hour Last Year, Study Finds

The average value of donated time by volunteers was $20.25 per hour in 2008, according to a new study by Independent Sector, in Washington, a coalition of major charities and foundations.

Study findings are available via The Independent Sector, 4.27.09.

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Public Colleges Consider Privatization as a Cure for the Common Recession

As state tax revenues plummet, some lawmakers and higher-education leaders are once again looking at loosening the bonds between state governments and public colleges to save money and give colleges the freedom to bolster their bottom lines in new ways.

Full-text article by Eric Kelderman is available via The Chronicle of Higher Education, 4.27.09. [Subscription required.]

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The Universities in Trouble

Along with failing banks, auto manufacturers, and insurance companies, universities have been making headlines—especially those whose gigantic endowments (Harvard's was approaching $40 billion before the crash) have sharply declined.

Full-text article by Andrew Delbanco is available via The New York Review of Books, 5.14.09.

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In Trying Times, Colleges Willing to Boost Financial-Aid

For many college hopefuls this year, getting in was the easy part. Now comes the real challenge: figuring out where they can afford to go. Colleges around the country are fielding more appeals for additional aid than usual.

Full-text article by Laura Fitzpatrick is available via Time, 4.24.09.

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Wednesday, April 22, 2009

Trustees Begin to Parcel Leona Helmsley’s Estate

The first $136 million from the hotelier Leona Helmsley’s disputed multibillion-dollar estate has been distributed to charities.

Full-text article by Sam Roberts is available via The New York Times, 4.22.09.

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Tuesday, April 21, 2009

Children's Hospital Launches "Game-a-thon"

Children's Hospital Boston said its Generation Cures initiative has launched a "Game for Good" game-a-thon for tweens as part of its fund-raising efforts.

Full-text article by Chris Reidy is available via The Boston Globe, 4.20.09.

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The Nonprofit World's Leadership Gap

Even though waves of business executives are flocking to charities for senior jobs, nonprofit groups are still struggling to recruit talented top managers.

A study finds that at least 24,000 positions are likely to come open in 2009 — and that the widely anticipated leadership deficit is widening faster than first predicted.

Full-text article by Heather Joslyn is available via The Chronicle of Philanthropy, 4.20.09. [Subscription required.]

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University of Iowa officials: No plans yet for new art museum

Without the Federal Emergency Management Agency providing an immediate source of funding for a new University of Iowa Museum of Art, the easiest way to get a new museum is if donors step forward, officials said Saturday.

Full-text article by Rachel Gallegos is available via Iowa City Press-Citizen, 4.19.09.

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Few Boards Do Sophisticated Financial Planning, Experts Say

Financial stewardship by college governing boards too often stops at balancing the budget.

Full-text article by Paul Fain is available via The Chronicle of Higher Education, 4.20.09. [Subscription required.]

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Giving Around the World Faces Recession Snags

Economic woes threaten fledgling philanthropic efforts in Africa, Asia, and Latin America­ — but the crisis may also contain opportunities.

Full-text article by Ian Wilhelm is available via The Chronicle of Philanthropy, 4.20.09. [Subscription required.]

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Sunday, April 19, 2009

What Good Are Economists Anyway?

Why they failed to predict the global economic crisis—and why their help is still crucial to a recovery.

Full-text article by Peter Coy is available via BusinessWeek, 4.16.09.

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Friday, April 17, 2009

Mystery Donors Give Over $45M to 9 Universities

A mystery is unfolding in the world of college fundraising: During the past few weeks, at least nine universities have received gifts totaling more than $45 million, and the schools had to promise not to try to find out the giver's identity.

Full-text article by Michael J. Crumb is available via The Associated Press, 4.17.09.

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The Pay at the Top

How much chief executives at 200 large companies made in 2008, based on an analysis of S.E.C. files conducted by Equilar for The New York Times.

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Timeline: Museums and the Recession

Hardly a week has gone by in past months without troubling news from the museum sector: layoffs, budget reductions, exhibition cancellations, deaccessions, admission price increases, and even some closings.

Full-text article available via ArtInfo.com, 4.17.09.

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Thursday, April 16, 2009

Williams Stuffs Students Into Dorms as Economy Pares Endowments

Experiencing investment losses, Amherst College, Cornell University, Johns Hopkins University and Bowdoin College are also planning to increase student populations, according to the schools’ admissions and public-relations officials. The institutions gain income because the expansions generally don’t require new buildings or faculty, said Michael McPherson, president of the Chicago-based Spencer Foundation, which funds education research.

Full-text article by Janet Frankston is available via Bloomerberg.com, 4.1.09.

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Colleges Ask Donors to Help Meet Demand for Aid

Colleges and universities are emphasizing the swelling need for financial aid in their fund-raising pitches.

Full-text article by Stephanie Strom is available via The New York Times, 4.16.09.

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Getaways That Are ‘Guilt Free’

To counter customers’ reluctance about jetting off for conspicuous consumption during a recession, travel companies are pushing trips that emphasize service, values and personal fulfillment. The message: If there is more involved than frivolous pleasure, you don’t have to feel bad about dropping all that cash on a splashy vacation.

Full-text article by Michelle Higgins is available via The New York Times, 4.19.09.

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Tuesday, April 14, 2009

USA TODAY Publishes Special Philanthropy Bonus Section

USA TODAY will publish an eight-page special bonus section focused on philanthropy on Tuesday, April 14. The section focuses on a new and growing civic generation and how the current economy is affecting service organizations. An essay by First Lady Michelle Obama highlights the need for more youthful volunteerism than ever.

Content from "Sharing in the USA" and additional articles on related topics can be found at sharing.usatoday.com. This includes a look at how corporations are getting more creative in the way they give. Also available is an interactive database where USA TODAY community members and readers can connect with local charities simply by entering a Zip code or a city and state.

More information is available via the full-text press release.

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Ford Foundation Chief Outlines Grant Maker's Overhaul

The Ford Foundation will streamline its sprawling operations and seek to more effectively demonstrate its influence under a two-year overhaul started by its new leader, Luis A. Ubiñas.

Full-text article by Stephanie Strom is available via The New York Times, 4.13.09.

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A Different Nursing Shortage

Healthcare’s single largest occupation is making gains in U.S. hospital boardrooms as directors and trustees grapple with efforts to curb costly and harmful medical errors.

Full-text article by Melanie Evans is available via Modern Healthcare, 4.13.09.

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How to Help Skittish Boards Keep Their Nerve in a Recession

Board members, responsible for matters both fiduciary and visionary, are concerned that their colleges not be caught flat-footed in confronting the substantial challenges ahead.

Full-text article by Steven Bahls is available via The Chronicle of Higher Education, 4.13.09. [Subscription required.]

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Caution Becomes Charities' Financial Watchword

Charities in Britain and elsewhere are cutting costs and will probably explore new ways to do business in anticipation of declining revenue from all major sources this year and next.

Full-text article by Mike Scott is available via The Financial Times, 4.12.09.

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Community Colleges Play Key Role In Tough Economic Times

In Pennsylvania, all 14 community colleges are offering or finalizing plans for tuition assistance to locals who've lost jobs. More than 1,000 people are already signed up, says Diane Bosak, executive director of the Pennsylvania Commission for Community Colleges. Among the nation's 1,200 community colleges there is no tracking of how many are making similar gestures, but examples can be found in New Jersey, Michigan, Illinois, Minnesota, and Washington State.

Full-text article by Stacy Teicher Khadaroo is available via The Christian Science Monitor, 4.11.09.

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Monday, April 13, 2009

A Struggle to Slice Stimulus Fund Pie

More than 2,000 applications have poured in to the National Endowment for the Arts from cultural organizations all over the country seeking a piece of the stimulus pie allotted to the arts by President Obama.

Now the Endowment faces the tough task of sorting through these applications to determine which groups are the most deserving. The criteria are clear: each arts group seeking funds must demonstrate how it would use the money to preserve jobs or pay contractual workers.

Full-text article by Robin Pogrebin is available via The New York Times, 4.10.09.

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Colleges Trim Fund-Raising Staffs as Donations Drop

Several major colleges are reducing the size of their fund-raising staffs and operations as the financial crunch takes a toll on gifts and investment income.

Full-text article by Kathryn Masterson is available via The Chronicle of Higher Education, 4.10.09. [Subscription required.]

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How Charities Are Coping

If you think that the recession is clobbering for-profit enterprises, just consider the tough times that some not-for-profit enterprises are encountering. If they hope to top last year's records, America's philanthropies don't stand a prayer.

Full-text article by Marshall Loeb is available via MarketWatch, 4.9.09.

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Facing Hard Times, Shriners May Close 6 Hospitals

Shriners hospitals, which have provided free care since before the Great Depression, are considering closing a quarter of their facilities as donations stagnate, costs increase and the charity's endowment shrivels.

Full-text article by Katrina A. Goggins is available via The Associated Press, 4.11.09.

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Non-Profits Fail to Capture Highest Possible Online Donations

People would be willing to give money to charities, and even give a greater amount of money through online donations if only it was easier for them to find out from the organization's website what its mission and goals were and its plans for spending the money.

Full-text press release is available via BusinessWire, 4.3.09.

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Sanford Completes $400M Donation Ahead of Schedule

T. Denny Sanford, citing today's economic uncertainties, has paid off five years ahead of schedule the full $400 million donation he promised to the Sioux Falls hospital system that now bears his name.

Full-text article by Jon Walker is available via ArgusLeader.com, 4.9.09.

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Nonprofits Increase 'Gift Tax' On Donors

As charities say, it takes money to raise money -- and a growing number of organizations are tapping donors for those costs through what's known as a "gift tax."

Full-text article by Shelly Banjo and Melissa Korn is available via The Wall Street Journal, 4.6.09.

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Wednesday, April 8, 2009

AT&T Inc. receives 2009 Freeman Philanthropic Services Award for Outstanding Corporation

AT and T Inc. is the recipient of the 2009 Freeman Philanthropic Services Award for Outstanding Corporation presented by the Association of Fundraising Professionals (AFP).

Full-text article via MacDailyNews.com, 4.8.09.

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Updates on Billion-Dollar Campaigns at 32 Universities

The 32 American universities that are seeking to raise at least $1-billion collected a total of $326.9-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, 4.8.09. [Subscription required.]

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The Obama Budget: What to Expect

Tax changes are likely, but health-care reform and emissions caps may have to wait.

Full-text article by Anne Kates Smith is available via Kiplinger's Personal Finance, May 2009.

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Special YouTube Ads Earn Nonprofit $10,000 In A Single Day

Earlier this week YouTube launched a new feature for non-profit organizations called “Call to Action”, allowing these organizations to place special overlay ads on their videos free of charge.

Full-text blog post is available via YouTube, 3.2009.

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'Morphing' Community Colleges

With some offering bachelor's degrees and others building dorms or creating campuses for businesses, institutional leaders consider how to define missions and emphasize the associate degree.

Full-text article by Scott Jaschik is available via InsideHigherEd, 4.7.09.

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Tuesday, April 7, 2009

Charity Dries Up in U.K.

As a rule, charitable giving lags falls in other parts of the economy by about a year. Right on schedule, charities in the U.K. are seeing donations decrease, forcing them to lay off staff, seek new sources of funding or close entirely.

Full-text article by Tara Loader Wilkinson is available via The Wall Street Journal, 4.7.09.

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Poll Finds New Optimism on Economy Since Inauguration

President Obama is enjoying some success in rebuilding confidence in a troubled nation, according to the latest New York Times/CBS News poll.

Full-text article by Adam Nagourney and Megan Thee-Brenan is available via The New York Times, 4.6.09.

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Sanford Weill Moves Up Planned Gift of $170-Million to Cornell's Medical School

Sanford I. Weill, the chairman emeritus of Citigroup who, with his wife, Joan, had already given or pledged half a billion dollars to Cornell University’s medical school, sent $170-million to the college in December and January.

Full-text article by A.G. Sulzberger is available via The New York Times, 4.6.09.

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Foundation Giving

Stock-market volatility has led to a sharp decline in the assets of big foundations, and many grant makers expect to decrease their giving this year.

Full-text article and survey findings are available via The Chronicle of Philanthropy, 4.7.09. [Subscription required.]

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Travelers to Get Option to Donate When Booking Flights Online

A fund-raising idea devised by a French travel agency could raise hundreds of millions of dollars to improve health care in the developing world by allowing airline passengers to make a small donation when booking their flights.

Full-text article by Andrew Jack is available via The Financial Times, 4.5.09.

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Monday, April 6, 2009

House and Senate Differ on Estate-Tax Provisions

The House and Senate have passed budget outlines that differ significantly in how they would apply the estate tax.

The House version follows what President Obama has proposed and umbrella groups of nonprofit organizations have embraced: keeping the estate tax at levels that are already in effect this year. But the Senate version would cut the estate tax, a move that alarms many charitable organizations.

Full-text article by Grant Williams is available via The Chronicle of Philanthropy, 4.3.09.

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Orchestras Need New Business Model

American orchestras, like other types of arts groups, have had an enormous rug pulled out from under them. Some endowments are worth half what they were a year or two ago, but the operations they underwrite have not shrunk in proportion. The response so far - 10 percent pay cuts, small concessions from musicians on work rules - is a relative nip and tuck. Unless the economy soars in the next few years, and no one is predicting that, American orchestras are going to have to invent a new business plan.

Full-text article by Peter Dobrin is available via The Philadelphia Inquirer, 4.5.08.

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Giving Capitalism Its Due

Carl Schramm doesn't buy the idea that some businesses are "too big to fail." That notion, says the president of the Kansas City-based Kauffman Foundation, only creates obstacles for entrepreneurs. Instead, he sees the failure of big companies as the "moment when 1,000 flowers can bloom."

Full-text article by Naomi Schaefer Riley is available via The Wall Street Journal, 4.4.09.

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Friday, April 3, 2009

Taxes and Charitable Giving

Much discussion has centered around the Obama Administration's budget proposal to reduce the maximum deduction on charitable gifts. Eugene R. Tempel, President of the Indiana University Foundation offers his perspective via the IUF website.

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Thursday, April 2, 2009

More Colleges Consider Adding 'Gift Tax' to New Donations

A growing number of colleges are considering fees on new donations, in an effort to make up for a decline in the revenue that helps pay for fund-raising operations.

Full-text article by Kathryn Masterson is available via The Chronicle of Higher Education, 4.3.09. [Subscription required.]

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Credit Crunch Attracting Clients to Nonprofit Microlenders

With banks continuing to keep a tight rein on credit, American small businesses and would-be entrepreneurs are increasingly turning to nonprofit lenders for financing.

Full-text article by Anjali Cordeiro is available via The Wall Street Journal, 3.31.09.

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Foundation Giving

Assets at the nation’s largest private foundations fell by a median of 28 percent from 2007 to 2008, and 40 percent of grant makers who participated in a new Chronicle survey say they expect giving to decline in 2009.

Full-text article by Noelle Barton is available via The Chronicle of Philanthropy, 3.31.09.

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