P H I L A N T H R O P I C
DIANE WHITTY Global Head of the Philanthropy Centre at J.P. Morgan Connecting to a world of possibility
P H I L A N T H R O P I C
© June 2015. Not for broad distribution.
TA BL E OF CONTENTS Introduction: It’s a great age of exploration Phil Di Iorio and Diane Whitty
Helping a family and a business work for the good of people, planet and profit Erramon Aboitiz
For the sake of tradition, country—and the future Semahat Sevim Arsel
The deeper you go into a community, the better the chance for sustainable change Donna and Philip Berber
Helping women and girls helps the world Yann Borgstedt
Finding a way to make good on the promise of opportunity for all Katherine Brittain Bradley
To help humanity is a joy, a privilege and a family legacy Ronnie C. Chan
Believe in your goal and strive for excellence; others will join you Jagdish Mithu Chanrai
Building bridges across Asia Ronald Kee-Young Chao
We need this revolution because we cannot afford to write off human capital Sir Ronald Cohen
Saying “thank you” to one’s country, community, people—and the organizations that serve them Lester Crown
Innovate to achieve real-world solutions to real-world problems Gururaj “Desh” Deshpande
Education is the key to creating social equality Marco Ferrara
Working with a powerful partner for reach and impact Stefan Findel
There are many ways to effect change, but passion is always the best driver Jesse and Betsy Fink
Commit to a cause—and identify ways to create impact Jon and Mindy Gray
A foundation isn’t always needed to pursue common philanthropic goals Kuehner Family
Supporting young leaders to make the world a better place Laura Lauder
To achieve change, all engines—NGOs, government and the private sector—need to be firing Laurence Lien
Focus where you have knowledge, and your voice carries weight Katherine Lorenz
A young philanthropist engages his peers to fight poverty in the Bay Area Daniel Lurie
Enterprises that achieve a social good can be self-sustaining Letizia Moratti
Embracing tikkun olam—the human responsibility to heal the world Judith Yovel Recanati
It is about what we can do for others Bernard Sabrier
It is essential to pay attention to what makes people truly happy Yousriya Loza Sawiris
Philanthropy is a vocation that can change your life Anant Shah
Promoting a professional and dynamic culture of philanthropy in China Shen Guojun
It is our responsibility to leave the earth a better place Shannon B. and Theodore “Ted” C. Skokos
Nobody can do everything, but everybody can do something Gunhild Anker Stordalen
Creating a post-business career promoting the art of Catalonia Antoni Vila Casas
Transformational philanthropy can start with simple volunteering Nancy Yang
Fully engage by becoming visible and actively involved Niklas and Catherine Zennström
140 PHILANTHROPIC LIVES 5
It’s a great age of exploration “What are others doing?” These days,
Hearing from peers will hopefully help you
that’s one of the most common questions
develop your own philanthropic mission
that philanthropists consider.
and provide an opportunity to learn from their successes and mistakes so that you can
In search of an answer, we spoke with
make your efforts as effective as possible.
31 of today’s most prominent and inspiring philanthropists, ranging in age from 30 to
In many respects, we are in a great age of
80. While each of their journeys is unique,
exploration in philanthropy with many ways
they have all dedicated substantial financial
to be effective:
resources and personal time to helping neighbors, communities and countries around the world.
•A t the juncture of business and philanthropy, we find many models for corporate social responsibility, venture philanthropy, impact
Through their stories, you’ll see the tremendous
measurements and socially responsible
variety of approaches to philanthropy. They show
investing—to name just a few approaches.
the interesting and complex environment in which new models and innovations from recent
• We see traditional philanthropy continuing
decades are being field tested and disseminated.
to accomplish great things and being
In fact, philanthropists often deploy a number
reinvigorated by a new generation. There
of methods, all at the same time.
also is traditional philanthropy with a twist: For example, some philanthropists are setting a mission—then creating ways for others to join their causes.
• Across the globe, philanthropists are
We hope you will find these philanthropists’
finding different ways to engage recipients
stories inspiring, and that their work can help
that identify and shape responses to
you refine your own strategy for your personal
philanthropic endeavors. We look forward to working with you as you develop your own
• Private-public partnerships are helping
approach to changing the world for the better.
bring answers to scale. Philanthropists are creating, funding and testing programs to identify models that work—and that governments can then adopt for society at large. These 31 philanthropic lives showcase a diverse range of causes: from empowering
Phil Di Iorio Chief Executive Officer J.P. Morgan Private Bank
the poor in Mexico through vocational education, to new approaches out of Scandinavia for tackling climate change,
to developing a vibrant social sector in
Global Head, The Philanthropy Centre J.P. Morgan Private Bank
China and beyond.
PHILANTHROPIC LIVES 7
Helping a family and a business work for
the good of people, planet and profit
ERRAMON ABOITIZ Aboitiz Foundation
“We truly believe that we can do well by doing good and
T HE RE PU B LI C OF THE PHI LI PPI NE S
run both our business and foundation accordingly,” says
• The Aboitiz Group Foundation
Erramon I. Aboitiz, the fourth-generation head of the Filipino
was established as the corporate
dynasty that founded and still runs Aboitiz Equity Ventures,
foundation to implement the
Inc. (AEV). “When our company enters an area, it is important
corporate social responsibility (CSR) programs of Aboitiz companies across the Philippines (1988) • The foundation reflected the values of the Aboitiz family on private philanthropy and explored
that everybody benefits: not only shareholders and employees, but also the community.” The AEV enterprise effectively began before the turn of the 20th century, when Spanish mariner Paulino Aboitiz started
how institutions can address social
trading hemp and general merchandise in the central region
problems. It was renamed the
of the Philippines. A public holding company since 1994, AEV
Aboitiz Foundation (2008)
is currently the Philippines’ 10th largest business by market
• Aboitiz Equity Ventures, Inc. (AEV)
capitalization, and it operates throughout the country, with
was listed on the Philippine Stock
investments in power, banking, food, and land development.
Exchange, with Jon Ramon Aboitiz
It plans to expand further, into infrastructure and infrastructure-
as president and CEO (1994)
• Erramon Aboitiz took over for Jon Ramon, who became Aboitiz
Running alongside this business success is the “philosophy
Group chairman (2009)
that everybody—all stakeholders—should give something back. The whole family (now 500 strong), our team members and our employees are all proud to be part of an organization with social impact,” says Mr. Aboitiz, who, at 57, is AEV’s current president and chief executive officer.
Education n io at uc Ed
THE COMPANY’S PHILANTHROPY PORTFOLIO COVERS nm ro
FIVE AREAS th al
Education Environment Environment
Enterprise Government Development
Childcare THE REPUBLIC OF THE PHILIPPINES
Indeed, sharing with the less fortunate has been an integral part of AEV long before a corporate foundation was formally incorporated
“Our foundation’s mission is to help people help
into the company’s organizational structure.
themselves, so it is imperative that we identify
In 1988, the Aboitiz Group Foundation was
what is important to people, deliver on their
established to develop more effective CSR
expectations, and collaborate closely with the
programs, especially where Aboitiz business Business
public sector to build higher capability on the
community level,” says Mr. Aboitiz.
“It is imperative that we identify what isGovernment important to people, deliver on their expectations, and collaborate closely with the public sector to build higher capability on the community level.”
STRUCTURAL INTEGRITY One of the most valuable lessons his family has learned, says Mr. Aboitiz, is how much more effective it is to closely integrate the business, the foundation and the family itself. That is why today, the foundation’s trustees are mostly family members who also serve as the CEOs of Aboitiz Group companies. Also
The foundation, renamed the Aboitiz Foundation in 2008, is currently working toward CSR 2.0 through programs with longer-term benefits,
sitting on the foundation board are AEV’s chief reputation officer and its chief human resources officer.
bigger projects of national scope with greater positive sustainable impact, and stronger stakeholder engagement.
ERRAMON ABOITIZ 9
AEV companies are actively encouraged to
of the business. And “the fact that it is all held
set aside a percentage of profits to be paid to
together on a common communication platform
the foundation each year to fund its programs
also has enhanced the reputation of the business
in education, social enterprise development,
and the family’s CSR and philanthropic activities,”
environment, health and wellness, and
disaster relief. In fact, the foundation’s work has generated “Our team members got behind the philosophy”
respect and support across the Philippines
of coordinating their efforts, says Mr. Aboitiz,
and the world.
and “we took a quantum leap.” In 2013, for example, with a PHP483 million budget (about US$11 million), the foundation allocated a majority of its funding for projects to support the country’s public education system, such as new buildings, scholarships and computers, as well as the development of special science elementary schools and technical vocational high schools. This coordinated, professional approach has been beneficial for the family, inculcating a culture of giving back, says Mr. Aboitiz. It has also created a bridge between the family and the employees
TYPHOON YOLANDA RELIEF EFFORTS INCLUDED:
PHP50 MILLION CREATING A
COMMAND CENTER DISTRIBUTING
52,000 RELIEF PACKS
RESULTS When Typhoon Yolanda struck the heart of the Philippines in November 2013, killing 6,300 people and leaving 13 million homeless, the Aboitiz Foundation launched its #BangonVisayas campaign and released an emergency fund of PHP50 million (US$1 million) to support relief efforts. The group also mobilized teams of volunteers from subsidiary AboitizPower’s distribution units to help in the immediate restoration of power lines in the affected areas.
In 2012, the foundation established the Weather Philippines Foundation, together with technology partner Meteogroup, to provide free weather information at weather.com.ph. The foundation is partnering with the private sector and local government units to install 1,000 automated weather stations across the Philippines, especially in remote rural areas, to provide accurate, localized weather forecasts. Giving people this information helps communities become better prepared to protect themselves against the
E ARLY WARNING—The Weather Philippines Foundation seeks to install 1,000 automated weather stations across the Philippines.
impact of adverse weather conditions. “We want our business to be the neighbor-of-choice in communities where Aboitiz companies operate,”
Funding for such work came from family
says Mr. Aboitiz, adding, “Our reputation is
members, the business and staff. But it also
everything, and we stake this reputation on the
came from donors across the country and
idea that our business values are the same as
around the world, Mr. Aboitiz says. Indeed,
our foundation’s: We work for the benefit of the
when the foundation sought to raise an
people in our country, our region, and the world
additional PHP150 million from other sources,
PHP250 million poured in from local and international, corporate and individual donors.
“We believe in balancing the interests of people, planet—and profit.”
“People said they wanted to be part of this, and the money just came to us. They knew they could rely on us to distribute the funds efficiently and effectively,” says Mr. Aboitiz. The foundation set up a command center in Cebu, where some of its 5,000 volunteers, including many employees of Aboitiz companies, prepared 52,000 relief packs that were transported to affected communities by trucks and boats. The
• Corporations have a responsibility to all stakeholders: shareholders, employees and the wider community • “People, planet, profit” is a philosophy that businesses and families can share and drive forward social change together—enhancing the reputation of both
support for rebuilding continues.
ERRAMON ABOITIZ 11
For the sake of
tradition, country— and the future
SEMAHAT SEVIM ARSEL Vehbi Koç Foundation T URK EY •D aughter of Vehbi Koc—one of Turkey’s leading industrialists, who created the country’s first family foundation • T ook over as chair of the family
Semahat Arsel says all philanthropists must find their own approach and areas of interest. Her path has been to carry on a family legacy brought to great heights by her father, Vehbi Koç, a leading businessman, philanthropist and Turkish patriot. The rise of the Koç empire—today one of the world’s
foundation’s board of directors in 1996,
largest enterprises—coincided with the 1923 birth of Turkey’s
when her father passed away
republic. Mr. Koç believed passionately in the republic and
• S tated goal: to continue Vehbi Koç’s
its modernization agenda. Indeed, in his 76 years in business,
tradition of philanthropy that works
Mr. Koç funded many education, healthcare and culture
to build the Turkish republic
projects to support this effort.
• C hairs the board of the Semahat Arsel Nursing Education and Research Center • S erves as a member of the board of directors of Koç Holding
Mr. Koç also spent decades fighting to change Turkish law so that, in 1969, he was able to create Turkey’s first family foundation, modeled after the leading U.S. family foundations—e.g., Ford, Rockefeller—that he had visited during
AWA R DS G RAN TE D TO TH E KOÇ
a 1946 trip to the United States.
FA MILY AN D THE FOU N DAT ION • Grand Prize for Individual Philanthropy by BNP Paribas in 2011 •A ndrew Carnegie Medal of Philanthropy Award by Carnegie Foundation in 2009 •H adrian Award by World Monument Fund in 2007
Like her father, Ms. Arsel spent many years fighting. In 1948, at age 20, she fell gravely ill. It took 14 years and nine operations in hospitals across the world to diagnose hydatid infection, a potentially lethal parasitic disease. After Ms. Arsel’s resilient response to her disease, she continued her work in business and in philanthropy. After her father passed away, she (as the eldest member of the family) assumed responsibility for the Vehbi Koç Foundation to continue Mr. Koç’s work.
KOÇ HOLDING AND KOÇ FOUNDATION INITIATIVES ON VOCATIONAL EDUCATION
KOÇ GROUP COMPANIES IN Healthcare/Science 5 SECTORS
IN 2006, ACROSS TURKEY
8,000 STUDENTS FROM 264 VOCATIONAL HIGH SCHOOLS RECEIVED SCHOLARSHIPS AND Business INTERNSHIPS Government
GOVERNMENT POLICY IN EDUCATION
EDUCATION CENTERS Business
Today, the foundation bankrolls Koç University in Istanbul and Koç schools across Turkey. The foundation also funds myriad efforts:
SEEING AND Healthcare/Science FILLING A NEED During Ms. Arsel’s time as a patient, she developed an appreciation for good nursing care. After she recovered, she asked her father to establish a fund to support the training of nurses in Turkey. That fund was launched in 1974. Years later, in Business 1992, Ms. Arsel founded the Semahat Arsel Nursing Education and Research Center to provide more comprehensive educational Government opportunities to nursing students. Meanwhile,
a health sciences campus, clinics, health facilities, libraries, museums, art galleries and archaeological research facilities—along with continuing scholarship and awards programs, non-governmental organizations (NGOs) and other programs. Since the foundation’s creation, its expenditures and investments have totaled $1.01 billion (1969–2014). Its current assets are valued at $1.7 billion.
her father had built a range of other education initiatives, starting with scholarships, then schools, and culminating in the launch of Koç University in 1993. To round out her efforts, Ms. Arsel established the Koç University School of Nursing. When, in 1996, Mr. Koç died at age 95, Ms. Arsel succeeded him as foundation chair, a position she still holds at age 86, overseeing a budget
PROMOTING EDUCATIONAL OPPORTUNITY Ms. Arsel says she is “only” continuing the tradition her father established. But this is a living and ever-evolving tradition, as Ms. Arsel believes philanthropy must lead the way on the issues of the day.
of $100 million in 2015. SEMAHAT SEVIM ARSEL 13
One example is the Vehbi Koç Foundation’s work,
launched in collaboration with a policy think
together with Koç Holding and 20 Koç Group
tank (the Education Reform Initiative, or, in
Companies, on vocational education. “We felt
Turkish, Eğitim Reformu Girişimi) supported by
that we could get huge leverage with vocational
many of Turkey’s major foundations. The goal is
education,” Ms. Arsel says. “Our young people need
to provide the government with evidence-based
to be able to access the education that they want
research on educational policy. And, indeed,
and they need.”
the government has implemented many of the proposals developed.
The Vocational Education: A Crucial Matter for the Nation Project (MLMM—Meslek Lisesi Memleket
“You have to find a positive way to attract the
Meselesi in Turkish) is unique in that it has created
attention of policymakers,” says Ms. Arsel.
a model of sustainable cooperation between
“We want to support the Ministry for Education
private and public sectors as well as NGOs.
by providing the evidence on which they can base sound policy decisions.”
Begun in 2006 to provide 8,000 students from 264 vocational high schools across Turkey with
The project’s goal now is to see the vocational
educational scholarships and internship
education model adopted in other sectors of the
opportunities, in time it has expanded to include
political, economic and educational landscape.
curriculum development, laboratories, coaching
She also hopes to see the collaborative Education
and employment. As a result, eight Koç Group Companies in five sectors established 29 laboratories, seven education centers and two vocational schools. To disseminate learnings from the MLMM Project across Turkey, the Partnership for Quality in Vocational Education Project was
VOCATIONAL TRAINING— Pilot programs sponsored, developed and promoted by philanthropists and experts helped show the government what works.
“We felt that we could get huge leverage with vocational education. Our young people need to be able to access the education that they want and they need.”
Also in the works is a new contemporary art museum in the Dolapdere district in central
S TATE OF THE ART—A new facility (model shown, top right) will be home to both research and education for healthcare professionals.
Reform Initiative adopted as a model for collaboration between private philanthropists. “You can tackle larger challenges with more families,” she says.
Istanbul. The plan is to open the new building— conceptualized as a cultural, educational and leisure hub—in 2017. In all that the foundation does, Ms. Arsel believes she is continuing her father’s mission: using his fortune to create the infrastructure that Turkey needs to develop as a modern global economy. “Education, healthcare and culture,” says
LOOKING TO THE FUTURE Ms. Arsel is a firm believer in both multiparty and multidisciplinary strategies. It is an ethos that was a founding principle of Koç University, and can be seen towering in the Health Sciences Campus currently under construction, and whose first phase has been operational since September 2014. The goal of this education and research facility is to bring together medical knowledge and practical experience. The campus, therefore, will accommodate both the Koç University School of Medicine and the School of Nursing, as well as
Ms. Arsel: “These are Turkey’s needs” that the Koç family has long dedicated its resources and passion to address.
• Supporting a nation’s development demands patience, commitment and intense involvement • Private foundations can take the lead on innovation and help show policymakers the way • Collaboration among philanthropists can help accelerate change
other facilities, including student dormitories. SEMAHAT SEVIM ARSEL 15
The deeper you go into a community,
DONNA AND PHILIP BERBER
the better the chance for sustainable change
A Glimmer of Hope Foundation UNITED STAT E S • Irish-born Philip Berber and English-born Donna Berber met in 1979 and were married in 1985 •M s. Berber was deeply moved by the famine in Ethiopia. The images of displaced families and children dying of malnutrition stayed with her over the next 15 years (1985) • T he couple moved to Texas, where Mr. Berber started CyBerCorp (1991) •A Glimmer of Hope began with the vision to relieve some of the pain and suffering on the planet (1999) • C yBerCorp was sold to Charles Schwab for dotcom millions (2000)
Donna and Philip Berber’s work across Ethiopia’s vast rural regions is a testament to how a strong emotional response to suffering can transform one’s life and the lives of millions of others. In 1985, Donna Berber attended Live Aid, the global concert that showed the world the human misery caused by Ethiopia’s severe famine. That famine—the worst in a century in Ethiopia—began in 1983, claimed eight million victims and caused one million deaths. “Seeing those children dying was one of those hopeless moments,” she says. Ethiopia’s plight made a lasting impression on Ms. Berber, then in her early 20s, and planted a seed for what would later become her life’s passion.
• $ 100 million of Schwab stock set up the Glimmer endowment (2000) • Barron’s ranked the couple sixth
Then family life took over. The Berbers married in 1985 and later moved to Texas. There, Mr. Berber set up CyBerCorp, an
on the list of “The 25 Best Givers”
online brokerage. While enjoying a happy family life with three
in 2009 and seventh in 2010
young sons, Ms. Berber describes herself as “comfortably numb” with the growing financial success. “The nagging got louder as more time passed,” she said.
“Our philosophy was to go and listen to what people wanted. We tuned in to what they needed.” “He told me to go to Ethiopia and see it for myself,” Ms. Berber says. Ms. Berber made her first trip to the East African country in 2000, and she says that when she arrived, she “fell apart. I was absorbing the depth and breadth of need.” Ethiopia still had an ongoing structural food deficit and remained one of the least developed and poorest countries in the world. At the same time, though, Ms. Berber was © Esther Havens
“changed and uplifted” by the realization that she could, and would, do something to help.
IN COUNTRY—Since Donna Berber first started visiting Ethiopia 15 years ago, she and her husband have touched the lives of millions of people.
VISITING THE COUNTRY In 1999, Ms. Berber started to plan a $250,000 project in Ethiopia—the seed of what would become A Glimmer of Hope. She wanted to set up an orphanage, and she arranged to go to Washington to speak to the Director of NGOs at the Ethiopian embassy. It was from him that she received the best advice.
LOOKING FOR SYSTEMIC CHANGE In 2000, Mr. Berber sold his company to Charles Schwab for dotcom millions, and the Berbers formally set up A Glimmer of Hope as a family foundation, endowed with $100 million of Schwab stock. Their mission expanded—and not just as a result of the increased capital available to fund their philanthropic work. The Berbers had decided to focus on systemic development work in Ethiopia, rather than a single project or area.
DONNA AND PHILIP BERBER 17
8 10 OUT OF
© Esther Havens
ETHIOPIANS LIVE IN POVERTY1
“Our philosophy was to go and listen to what
have learned is that the deeper you go into
people wanted. We tuned in to what they needed,”
a community, the greater the opportunity
says Ms. Berber. “If they needed a school, we
for life to change and to be sustained across
brought the bricks, and the community helped
build it.” Their first project was a school in Dembi Dollo, a rural village in the southwestern region
Though Ethiopia’s needs remain acute,
of the country.
progress has been made. There is, actually, a glimmer of hope.
The Berbers work in four areas—education, health, water and microfinance—which Ms. Berber describes as having the best chance of lifting communities out of poverty. To date, A Glimmer of Hope has invested approximately $85 million in Ethiopia, including supporting more than 9,000 development projects and distributing 44,000 microfinance loans. The Berbers continue to partner with small, local organizations. “We are working with communities of 25,000 to 50,000 people at any one time,” says Ms. Berber. “What we
MAKING A PROMISE TO DONORS To maximize the organization’s impact, Glimmer developed the 100% promise: All money donated to the foundation supports programmatic work, while the Berbers’ original endowment supports the foundation’s operating and administrative costs. The foundation has a staff of 30, split between Austin, Texas, where the foundation is headquartered, and Addis Ababa, Ethiopia’s capital.
Given Mr. Berber’s technology background, it is
transformed communities and sparked systemic
not surprising that the Berbers have also been
change in the country’s infrastructure. The effort
pioneers of digital fundraising and multimedia
has become a full-time job for Ms. Berber, who
feedback on projects.
stepped into the role of president of Glimmer in 2014. Two of the Berbers’ three young-adult
Mr. Berber believes donors value this level of
children have joined the foundation board, and
engagement, which has helped increase private
are very committed to Glimmer’s work in Ethiopia.
donations to $9 million in 2014. With overhead at $2.5 million, this means the Berbers achieved more
“This has been our life’s work,” says Ms. Berber.
than three-and-a-half times the leverage: For every
“But, given the size of the population in
$1 of overhead invested, another $3.50 of donors’
Ethiopia and the scale of problems, it is work
money went directly to projects in Ethiopia.
that must continue.”
Additional leverage is generated between local villages, adds Ms. Berber. Once one village sees what another has achieved, they are inspired to create change for themselves, she says. It has been 15 years since the Berbers first touched down in Ethiopia and devoted themselves to helping the country’s people.
• A holistic, systemic approach takes on multiple issues rather than focusing on select projects
© Esther Havens
They have had an impact on millions of lives,
• Development work in remote, rural communities requires close interaction with the local people to listen to, learn and understand their needs
S EE FOR YOURSELF—Philip Berber (left), and his wife, Donna Berber, visit Ethiopia to gain a truer understanding of life there. Ms. Berber (right) visits students at a local school.
DONNA AND PHILIP BERBER 19
Helping women and girls helps the world
YANN BORGSTEDT Womanity Foundation SWITZ E R LAND • Yann Borgstedt is a Swiss-born
In 2004, Yann Borgstedt had an epiphany: How can we expect humankind to thrive if almost half of the world’s population is unable to reach its potential?
internet entrepreneur from the dotcom boom. He co-founded the web design firm Netarchitects, which was sold in 1999 • Since 1999, Mr. Borgstedt has been actively engaged as a real estate developer • He founded the Womanity Foundation to empower women and girls to achieve their potential (2005) • In addition to his Womanity work,
This insight came when Mr. Borgstedt met Sanna during a trip to Morocco. The young woman had been sent to work for a family of strangers in one of Morocco’s big cities. Sanna’s parents simply could not afford to feed and educate both her and her brother. When Mr. Borgstedt met Sanna, she was at a refuge for single mothers, prostitutes and street girls. He learned that many of these young women had been sent to work as “little maids.” Many landed on the streets after being beaten and abused.
Mr. Borgstedt has invested in a number of startups that also have a social impact • He is a member of Ashoka Support Network, a worldwide network of social entrepreneurs that provides startup financing, professional support services and networking • He also is a member of the Economic Development and Disadvantaged Kids Network with the Young Presidents’ Organization, a group that connects
This trip to Morocco was part field trip and part vacation for Mr. Borgstedt. Having sold Netarchitects, his successful internet design business, to Altran Technologies in 1999, he was now working on other business ventures. He also started giving to different charities, but in his own words, he was looking to be inspired. “I was financially successful at a young age; I felt the need to do something different than just focus on making more money, but I was not clear what,” he says.
chief executives in a global peer network
When he met Sanna, he found his cause.
As a man, Mr. Borgstedt was struck by the
Afghanistan, Brazil, Haiti, India, Israel, Morocco
injustice facing these young women simply for
and the Palestinian territories.
being born female. As an entrepreneur, he wanted to understand how investing in solving the difficulties faced by women and girls could benefit society. Through research, he became convinced that gender justice, considered by some to be a niche area, actually has the potential to change the world. For example, the cost to society among the 65 countries around the world that do not invest in the education of girls to the same level as boys is estimated at $92 billion. In GDP terms, research has also shown that when an additional 10% of
FORCE MULTIPLIER The work of his foundation, Womanity, is guided by two principles: innovative models and partnership. “If you focus, you get a better understanding of the issues and the ecosystem,” Mr. Borgstedt says. Working in a niche area also is an advantage if you are an individual philanthropist running a modestly sized foundation. The Womanity Foundation has an annual budget of just over $1.8 million, which combines personal donations
girls go to school, GDP rises on average by 3%.1
from Mr. Borgstedt, who is now in his 40s, as
This is how Mr. Borgstedt—a successful Swiss
Mr. Borgstedt also covers the operating costs
technology and real estate businessman—
of the foundation.
well as donations and sponsorship from others.
became a champion for women’s rights in
IMPACTS COUNTRIES’ ECONOMIES THE COST
FAILING TO EDUCATE GIRLS TO THE SAME LEVEL AS BOYS IN
WHEN AN ADDITIONAL
65 COUNTRIES COSTS A COMBINED ESTIMATE OF
$92 BILLION 1
10% OF GIRLS GO TO SCHOOL
A COUNTRY EXPERIENCES ON AVERAGE A
3% RISE IN GDP
w ww.basiced.org/key-issues/enhancing-economic-growth; www.youtube.com/watch?v=4gpW9haB5nE; www.globalpovertyproject.com/infobank/women. YANN BORGSTEDT 21
He describes one such partnership in
A single focus on women and girls has given Womanity a fast track to credibility and access to a network of experts and decision makers, Mr. Borgstedt believes.
Afghanistan, where Womanity is seeking to improve education for girls across the country. The starting point was a pilot program with the country’s largest girls’ school, Al Fatah. Under Taliban rule, education for girls was banned. Since the fall of the Taliban regime in 2001, increasing numbers of girls have been
With this budget, the foundation reached
seeking education, but in the early days, schools
200,000 women and girls in 2013 through
that had been shut down were in disrepair and
education initiatives, broadcasting and
poorly resourced. Al Fatah was a case in point.
social entrepreneurship. In 2007, the Womanity Foundation sought to He believes this single focus on women
make Al Fatah a flagship project. Using three core
and girls has given Womanity a fast track
building blocks of improving school infrastructure
to credibility and, by extension, access to
and teacher training, student counseling, and
the network of experts and decision makers
community outreach, the program moved Al Fatah
in that field. His foundation has been able
from a state of neglect to becoming the only
to build partnerships with leaders working
girls’ school among the top-five schools ranked
in the same field. “Our goal is not to be
by Afghanistan’s Ministry of Higher Education.
the biggest, but the most innovative,”
These building blocks were developed in
Mr. Borgstedt says.
partnership with the Afghan government
ADIO NISAA—Womanity’s most innovative program to date has been the creation of a radio station R run by women (“nisaa” means “women” in Arabic) that was launched in 2009 in Palestine and is being replicated across the Middle East.
WHO’S BEING EDUCATED IN
38 GIRLS IN HIGH SCHOOL FOR EVERY 100 BOYS2
© Horizons WWP/Alamy
Photo by Farazana Wahidy
THERE ARE ONLY
and Cherie Blair (British barrister and the wife
Mr. Borgstedt is now looking to apply the
of former UK Prime Minister Tony Blair), as well
experience from Afghanistan to India, with
as with other NGOs working in the field. The
the goal of reaching 15,000 schools.
rollout also has government and NGO backing. “My resource is not my money, it is my This approach is now being rolled out to
willingness to take risks and push the
11 other girls’ schools in Afghanistan through a
boundaries,” he says.
program entitled School in a Box. Mr. Borgstedt hopes it will be adopted even more widely if its success continues. “I see myself as part of an ecosystem,” says Mr. Borgstedt. He brings his business mindset to a project by seeking partners to both challenge him and help him deliver projects at scale. “You can never think that you are the one with the answer,” he says. “You might have resources, but you might not be the best guy to deliver the project.”
• A single-minded focus on one issue—for example, gender justice—helps increase philanthropic impact • Pilot projects, developed in partnership with local governments and NGOs, create the opportunity to test and then launch national programs • A business mindset brings a specific approach to a problem, but a wide range of partners is needed to make a sustainable difference • Have the wherewithal to take risks and to fail
O xfam International. YANN BORGSTEDT 23
Finding a way to make good on
the promise of opportunity for all KATHERINE BRITTAIN BRADLEY CityBridge Foundation
Katherine Brittain Bradley’s decision to become an education
UNITED STAT E S
activist was carefully considered. “I wanted to take on a challenge
• T ogether with her husband built the Advisory Board Company and the
worthy of several decades of commitment,” she explains.
Corporate Executive Board, which went
Mrs. Bradley and her husband—entrepreneur and magazine
public in 2001 and 1999, respectively
publisher David G. Bradley1—knew they wanted to focus on
• C o-founded her family’s private foundation, CityBridge Foundation,
solutions to multigenerational poverty. They were just unsure of what to do.
formerly the Advisory Board Foundation (1994) • Established CityBridge’s focus
Their search for an effective approach began in 2000. Mrs. Bradley’s moment of clarity came several years later
on solutions to the challenges of
when she met Geoffrey Canada, the founder of the Harlem
multigenerational poverty through
Children’s Zone (HCZ), which offers social services to all children
living within a set number of streets in Upper Manhattan.2
• L aunched CityBridge’s first education project, the Early Years Education
“Geoff said that you could address every single problem in a
neighborhood, but if you didn’t fix the schools at the center
• E xpanded CityBridge’s focus beyond
of the neighborhood, at the center of the family, and at the
early childhood education to broader
center of a child’s life, then you would still fail,” recounts
K–12 education reform in Washington,
D.C. (2007) • C o-chaired Washington, D.C. Mayor Vincent Gray’s education transition team (2010–2011) • C urrently chairs the Washington, D.C. regional board of Teach For America, and serves on the boards of the KIPP Foundation, the District of Columbia College Access Program and Princeton University
Mr. Bradley owns the Atlantic Media Company, publisher of several prominent media outlets, including The Atlantic and National Journal magazines. 2 Geoffrey Canada has helped inspire a national movement in urban education and has become the public face of the Harlem Children’s Zone, which by June 2014 encompassed 97 blocks and 12,000 children in Upper Manhattan. HCZ is also well known for its Promise Academy charter schools, which were created in 2004 and 2005. Mr. Canada is featured in the 2010 documentary, Waiting for Superman. 1
CITYBRIDGE’S BREAKTHROUGH SCHOOLS: D.C. IS INVESTING
TO OPEN AND REDESIGN
18 PUBLIC SCHOOLS IN WASHINGTON, D.C.
This insight helped frame the current CityBridge
Mrs. Bradley has become a leader in the U.S.
mission: to help create a system of transformational
education reform movement through the
schools in Washington, D.C. “The missing inventory
CityBridge Foundation, which she founded
of great schools is significant,” says Mrs. Bradley.
with her husband in 1994.
“About half our children in D.C. are not getting the education they need.”
“Education reform is a major piece of social change,” says Mrs. Bradley. “We are seeking to make good on the promise of opportunity for all.”
“Education reform is a major piece of social change.” Across America, philanthropists are working to identify, implement and scale reforms in the public education system. Many have been galvanized by U.S. students’ poor performance on international tests and by the growing “achievement gap” between low-income, minority students and their more advantaged peers.3
RESEARCH DRIVING CHANGE The Bradleys launched their first education program in 2006, committing $8 million to an interlocking set of interventions to build out highest-quality programs in the early-childhood sector in Washington, D.C. Those investments included establishing early-childhood and elementary divisions of two high-performing charter schools; programs that today serve 2,300 elementary students.4 They also invested in teacher training, high-impact tutoring and the Pre-K for All initiative.
www.politico.com/story/2013/12/education-international-test-results-100575.html. Charter schools are public schools that operate with freedom from many of the local and state regulations that apply to traditional public schools. http://www2.ed.gov/parents/schools/choice/definitions.html. KATHERINE BRITTAIN BRADLEY 25
UALITY EDUCATION—The Bradleys are Q striving to transform 100 struggling schools in Washington, D.C.
CityBridge relies heavily on the methodology
CityBridge examined successful schools across the
the foundation inherited from the firms that the
United States to identify strategies that could help
Bradleys had previously owned and founded: the
turn around existing D.C. schools. The foundation
Advisory Board Company and the Corporate
also encourages strong charter school networks to
Executive Board Company. Both firms built a
consider opening schools in D.C.
reputation for identifying and building on the proven successful practices of the world’s best companies. That “best practices DNA” informs the way CityBridge Foundation approaches the issues involved in public education. “The solutions probably exist; we just have to find and scale them,” says Mrs. Bradley.
“The transformational schools we seek to replicate do whatever it takes to provide highest-quality teaching and learning.”
It has been natural for the Bradleys to put research at the center of their foundation’s
“Schools are often overwhelmed with the
strategy to “find, incubate, and invest in the
problems of poverty, and it is technically difficult
most promising practices in public education.”
to deliver an excellent education and at the same
For example, its Tools to 100 Schools research
time address multiple poverty-related barriers to
concluded that to provide every child in D.C.
learning,” says Mrs. Bradley. “The transformational
with a quality education, the city needed to
schools we seek to replicate do whatever it takes
transform 100 struggling public schools.
to provide highest-quality teaching and learning
CityBridge then created a 10-year roadmap
alongside supports to remove such barriers.”
to illustrate how to accomplish that goal.
STRENGTHENING STAKEHOLDERS CityBridge’s staff—15 strong—helps the Bradleys conduct a multidimensional campaign to empower teachers, school leaders and other stakeholders, including:
team in 2010. And Tools to 100 Schools has become a model for how to roadmap citywide education change. Mrs. Bradley is also active in a number of national education nonprofits. While her work is not overtly political, reforming
• The Education Innovation Fellowship, which
public education and launching charter schools
identifies and supports teachers to become
inevitably “bumps up against politics,” which
classroom leaders and drive personalized
“is not always comfortable,” Mrs. Bradley says.
learning within their schools. To date, there have been 54 Education Innovation Fellows,
“But if you are going to enter into the space of
all of them D.C. public school teachers5
actively attacking major social problems, you have to get out of your comfort zone,” she says.
• The Breakthrough Schools: D.C. initiative,
“Transformational results for students in D.C.
a competitive grant program for teachers
will shake up our normal way of doing things.
and school leaders to design and launch
There’s just no way around that, but the results
whole-school learning models to personalize
are worth it: What could be better than seeing
learning for students
a new generation of D.C. students succeed?”
• Seminars and convenings of thought leaders to share knowledge and experience with partners, parents, educators, civic and business leaders, and philanthropists “Progress in education is extremely fragile, so we have made it our job to create an army of stewards who can ensure lasting success for the current reform initiatives,” explains Mrs. Bradley.
RIPPLE EFFECT The Bradleys’ message has been embraced in D.C. and across the country. Mrs. Bradley served as co-chair of the D.C. mayor’s education transition
• If you want to see transformational change, find a challenge that matches the time, effort and resources you can offer • S ystemic change is more likely to happen through collaboration: The solutions often already exist; you just need to find them • S eeking major social change will take you out of your comfort zone •U se all the tools in your toolbox—time, talent, ties and treasure
The Education Innovation Fellowship has such partners and supporters as Microsoft Corporation and NewSchools Venture Fund. KATHERINE BRITTAIN BRADLEY 27
To help humanity is
a joy, a privilege and a family legacy RONNIE C. CHAN Morningside Foundation CHINA •R onnie Chan joined the Hang Lung Group (1972) and became chairman (1991) •R onnie Chan and his brother, Gerald, founded Morningside Group, a private investment firm (1986), and set up the Morningside Foundation (1996) to coordinate their family giving • The Morningside Foundation has supported gifted young musicians (since 1996); founded a triennial international mathematics award and
“Philanthropy’s true value is the meaningful change it brings to humankind, by enriching life and helping people to achieve their full potential,” says Ronnie C. Chan. “Money is just the start,” he adds. “Yet the heart that you put into projects is equally, if not more, meaningful.” By way of example, Mr. Chan points to five projects in his family’s vast resume of philanthropic activities: • 18 years spearheading the reconstruction of Jianfu Palace Garden and the Hall of Rectitude in Beijing’s Forbidden City, which were devastated by fire in 1923
conference (since 1998); endowed professorships at several universities in Hong Kong, as well as at the University of Southern California and Harvard University; established a new college called Morningside College at
• 1 0,000 students supported through musical, mathematical and science programs in Hong Kong, Mainland China and Canada • Mr. Chan’s co-chairmanship of the Asia Society, a nonprofit
The Chinese University of Hong Kong
that has fostered cross-cultural collaboration between the
(2006); and donated $350 million to
Asia-Pacific region and the rest of the world since 1956
endow the Harvard T.H. Chan School of Public Health • Ronnie Chan and his wife, Barbara,
• $20 million donated to endow the University of Southern California Mrs. T.H. Chan Division of Occupational Science
donated $20 million to endow the
and Occupational Therapy, and to establish an international
University of Southern California
program that plans to bring occupational therapy to China
Mrs. T.H. Chan Division of Occupational Science and Occupational Therapy, the first naming gift in occupational
• $350 million donated to the School of Public Health at
therapy, and the largest ever made
Harvard University to help fund its work in four areas:
in the history of this field
pandemics, failing health systems, humanitarian crises and harmful environments
As for the family’s scholarship programs, “Many of the students have gone on to have successful careers, and have in turn enriched and contributed to society in many ways,” says Mr. Chan, adding: “These are the stories that will warm my heart for the rest of my life.” And so, Mr. Chan asks, “How can anyone say which of these acts is more meaningful
© Big Cheese Photo/Corbis
than the others?”
ERITAGE PROJECT—The reconstruction of the Jianfu H Palace Garden is an example of partnership between the private and public sectors.
Considerable global media attention has been paid to the last of these, as it is the largest donation that Harvard University has received in its 378-year history. But the Chan family also poured their hearts, as well as substantial funding, into the Jianfu Palace Garden project. The project had experienced some serious setbacks, yet successfully coping with these challenges has set examples for both private-public partnerships and heritage projects across China. The Garden will stand as a testament to Mr. Chan’s painstaking commitment to the detailed restoration
FAMILY VALUES Mr. Chan, 65, is chairman of the Hang Lung Group—one of Hong Kong’s largest real estate developers. The Hang Lung Group is valued at approximately $6.8 billion.1 Mr. Chan and his brother, Dr. Gerald L. Chan, also co-founded the family’s private investment firm, the Morningside Group.
RECOGNITION Ronnie C. Chan has received: • T he Asia Society Leadership Award for strengthening economic, cultural and political ties between China and the United States, Hong Kong, Taiwan and Southeast Asia (2004) • T he Outstanding Persons Award for the Preservation of Chinese Cultural Relics (2009) • T he Asa V. Call Alumni Achievement Award, the highest alumni award bestowed by the University of Southern California (2009) • The US-Asia Institute Award for International Public Service and Philanthropy (2014)
and preservation of China’s rich civilization.
As of May 2014, www.forbes.com/companies/hang-lung-group/. RONNIE C. CHAN 29
© Joseph Sohm/Corbis
ARVARD UNIVERSITY—The Chan family belief that wealth should benefit humankind was the driving force behind their gift to the H School of Public Health.
But what may be even more impressive is that
Drew Gilpin Faust, Harvard’s president, has
Mr. Chan says 99% of his family’s private wealth
said that the Chans’ gift will have a profound
benefits charitable causes.
effect on the School of Public Health, giving it a stable financial base, the ability to provide more
This level of commitment to philanthropy is
financial aid to students and an opportunity
a family legacy established by his late father,
to expand programs.2
Tseng-Hsi Chan, who founded the Hang Lung Group in 1960.
The school will be renamed the Harvard T.H. Chan School of Public Health in honor of Mr. Chan’s late
The family believes that its wealth should be
father—who was proud to visit the school where
applied to the benefit of humankind, on an
his younger son Gerald earned a master’s degree
individual as well as institutional level. This belief
in Medical Radiological Physics and a Doctor of
is embodied in the Chans’ gift to the School of
Science in Radiation Biology.
Public Health at Harvard University. As Mr. Chan says, public health impacts everyone. “Doctors
Still, says Mr. Chan, their father should be most
usually address the needs of their patients one
remembered for the fact “that he left nothing to
at a time,” he says, but with this gift, “we are
his children.” Instead of piling up an inheritance,
treating the whole of society.”
Mr. Chan says, his father believed in providing each son with “the opportunity for a normal life as a hard-working member of society.”
“My greatest fortune has been being born into
He describes, for example, introducing other
a family where wealth was, and is, not given to
international businesspeople and academics to the
the children,” adds Mr. Chan. “Instead, we were
Asia Society, an organization he co-chairs, which
given the opportunity to learn both how to make
resulted in millions of dollars of grant funding.
money and how to give it away effectively.” “I have been a beggar in the highest sense of Mr. Chan, who has two sons, says philanthropy
the word,” jokes Mr. Chan. Indeed, Mr. Chan has
has been a great source of fulfillment for him
founded or is an active member of numerous
and his entire family.
organizations that encourage civic and cultural development in Hong Kong and Mainland China, as well as international collaboration and
“You can only encourage others to give, first by providing an example, and then by asking them, in a proper way, to give to causes that you believe are meaningful.”
economic development. He, his brother and their mother have continued T.H. Chan’s giving to causes linked to education and medical sciences. The sons also expanded the family’s philanthropic mission to include their passion for culture and classical music. “I don’t know where our next major gift will be,”
PHILANTHROPY IN CHINA A growing number of wealthy Chinese people are recognizing the benefits of philanthropy for family and society, Mr. Chan says. Many, he says, are setting up foundations and collaborating to develop China’s social sector.
says Mr. Chan, but, he promises, “there will be more—as long as we invest the family wealth and grow the business wisely.”
“I know of no other economy at this young stage of development that has produced so many wealthy people who are giving away so much of their wealth,” he says. Still, Mr. Chan does not believe anyone should feel compelled to give. “You can only encourage others to give, first by providing an example, and then by asking them, in a proper way, to give to
• Giving back to society gives meaning to life and to financial success. The role of philanthropy is to enable individuals to lead healthy and productive lives • Philanthropy should support humankind, enlarge our knowledge and enrich society • The value of philanthropy cannot be truly measured in monetary terms; it can only be measured in terms of the meaningful change it creates
causes that you believe are meaningful.”
RONNIE C. CHAN 31
Believe in your goal and
strive for excellence; others will join you JAGDISH MITHU CHANRAI Mission for Vision and Tulsi Chanrai Foundation
Growing up in India, Jagdish Mithu Chanrai was deeply moved
by the inequality that existed between the rich and poor, and
• Graduated from Mumbai University with a degree in Commerce and took over the family’s business in Nigeria • The Chanrai family established the Tulsi Chanrai Foundation in Nigeria
this formed his great desire to try and reduce this gap. He first met Mother Teresa in the 1980s when he was a young man searching for a way to help India’s poor. Accompanying her as she visited her projects, he was struck by her unswerving
to provide clean water and primary
belief that “the Lord would provide the funds to help the poor.”
He saw Mother Teresa tend to the poor and sick, prayed with
• Mr. Chanrai founded Mission for Vision in India to expand globally the mission of
her, and learned that—with love, faith and discipline—it is possible to overcome incredible odds to achieve social change.
the Tulsi Trust, established by his family in 1975 and focused on the eradication
These experiences, among others, helped shape Mr. Chanrai’s
of avoidable blindness (2000)
approach to philanthropy, and so too has his family’s long history
• Heads the Chanrai Summit Group
with his brothers Sunder Chanrai and Subodh Chanrai • Serves as trustee of the Jaslok Hospital
The Chanrais have been actively engaging in business across India and West Africa since the 1860s, when the family patriarch,
and Research Center in Mumbai—one of
Mr. Chanrai Uttamchand, established the family business and
the first multispecialty hospitals in India
based it out of Hyderabad, Sind, in what was then undivided India.
(established by the Chanrai family in
The family moved to Bombay in 1947 during the partition, and the
1973). He is also a trustee of several other trusts in India, the United Kingdom and Nigeria
businesses spread to other countries in Asia, Europe and West Africa. Currently, the Chanrai Summit Group, representing the business interests of one of the patriarch’s descendants, the late Mr. Mithu Tulsidas Chanrai, is run by his three sons.
TODAY, MISSION FOR VISION PARTNERS WITH
19 HOSPITALS ACROSS INDIA AND SUPPORTS
FREE EYE SURGERIES EVERY YEAR
FOR THE COUNTRY’S POOR
Jagdish Mithu Chanrai, 68, the eldest son, in addition to leading the business, now heads the family’s philanthropic efforts based on a philosophy he describes as “Caring Capitalism.” It is a company’s obligation, he says, to give a substantial portion
“We want to give the gift of vision to every human being regardless of nationality, status or religion.”
of generated wealth to the communities in which it does business. In pursuit of this objective, the Chanrais have conceived and built large social development initiatives in India and Nigeria, primarily in eye health, primary health and water and sanitation—Mission for Vision (MFV) in India and the Tulsi Chanrai Foundation (TCF) in Nigeria.
He later initiated an eye health project in 1990 and soon was joined by some of his close friends and business associates, and thus was the genesis of MFV in 2000. MFV aspires to eradicate avoidable blindness, initially in India and Nigeria, with the ambitious goal to spread the effort around the world. Today, MFV partners with 19 hospitals in
IN INDIA After meeting Mother Teresa and being highly influenced by her commitment to the cause of the sick and poor, the late Mr. Mithu Tulsidas Chanrai funded the construction of Shanti Daan, a shelter for the homeless in Mumbai to house 250 destitute men and boys, in humble tribute to Mother Teresa’s Order, the Missionaries of Charity.
13 states of India, reaching out to over 800,000 people from the most vulnerable communities, among whom over 170,000 free eye surgeries have been carried out. “We want to give the gift of vision to every human being regardless of nationality, status or religion,” Mr. Jagdish Chanrai says. Restoring sight to those who are needlessly visually impaired not only
JAGDISH MITHU CHANRAI 33
improves their quality of life, but also helps them lift themselves and their families out of poverty. While the cost of each surgery is as low as $50, the impact on the quality of life of the beneficiary is immediate and very high. In addition, if even 75% of the beneficiaries were to engage in economic activities post-surgery, the potential impact on the economy could be as high as $500 million per annum. The hospitals, or “temples of service” as Mr. Chanrai calls them, provide such high-quality care that even those who can afford to pay for healthcare services choose them. As a result, 20% to 40% of patients pay in full for an eye surgery, which helps subsidize the free surgeries. The culture that MFV encourages at the hospitals with which it partners is also critical to its success. All patients are treated as guests. This combination of compassion and respect encourages the poor to visit the hospitals for free treatment with confidence. “If you want to make a difference, you have to believe in what you are doing. You have to believe
INTERESTS IN NIGERIA—The Chanrai family not only does business in the country, but also invests considerable charitable resources to help provide Nigerians with quality healthcare and clean drinking water.
that miracles are possible,” says Mr. Chanrai, who personally contributes substantial finances
To date, this foundation has provided support
annually to support the work of MFV.
to 2 million Nigerians, including bringing safe water to 1.4 million as well as maternal and
IN NIGERIA In addition to curable blindness, Mr. Chanrai is focused on providing quality healthcare services and access to safe drinking water in Nigeria through the work of TCF, for which he serves as managing trustee.
child healthcare, immunization and HIV/AIDS awareness and prevention programs. Moreover, in partnership with the Cross River State Government, TCF currently operates the largest primary healthcare program in the country, catering to more than 3 million people through 1,100 health posts/clinics. The foundation has become one of Nigeria’s leading medical NGOs.
In acknowledgment of its efforts, the Nigerian government has accorded TCF the NGO diplomatic status, which permits it to bring in experts and import medicines and other materials without restriction.
“If you want to make a difference, you have to believe in what you are doing. You have to believe that miracles are possible.”
“As a family, we have enjoyed the hospitality of the Nigerian people for over 140 years; we have a responsibility to give back to this
GUIDING PRINCIPLES Now experienced in both philanthropy and business, Mr. Chanrai has spent time reflecting on the relationship between the two. Among his principles:
VISION Mr. Chanrai certainly thinks big. He believes that MFV will one day eliminate avoidable blindness. But he is just as certain that his organization will not accomplish this important goal alone. Rather, this “miracle” will happen through partnerships with fellow entrepreneurs, philanthropists, doctors, hospitals and governments.
•P rofit maximization should never be at the
As Mother Teresa showed him, “so long as
country,” Mr. Chanrai explains.
expense of people or the environment
you have the right intentions and strive for excellence,” he says, “others will join you, and
• Business can fund philanthropy, which supports the community, which in turn helps create the
if the essence comes from your heart, the forces of nature will be with you.”
landscape where business has the opportunity to thrive. “If we take care of the community, if people feel secure, your business will go much farther” • It is important not to mix business and philanthropy, but they can support each other. So, “what you learn from business, in terms of high standards of service and good governance, can be applied to philanthropy” • Entrepreneurial confidence can serve as a powerful driver of social change. “Most entrepreneurs think big. They want to make a big impact, and they want their dollars to go a long way. If you get 10 entrepreneurs together,
• Don’t be afraid to think big: If you believe in your goal, strive for excellence, and demonstrate a pure philanthropic motive, others will be inspired to join you • Giving back to the communities where your businesses are active will reduce social tension, creating a better environment for all • Lessons learned from business (good governance, quality customer service, etc.) can be incorporated into your philanthropy, but the two should remain separate to ensure each achieves its full potential
they can be quite a force for good” JAGDISH MITHU CHANRAI 35
across Asia RONALD KEE-YOUNG CHAO Bai Xian Education Foundation Limited
Ronald Kee-Young Chao has a vision: a more harmonious Asia—built on the goodwill of the young and supported by their elders.
HO NG KO NG • Graduated from the University of
So, starting in 2009, he began helping Chinese students to
Tokyo with a degree in Mechanical
study in Japan and vice versa. And, in 2014, he established
a foundation whose main mission is to support the Bai Xian
• Received a master’s degree in Mechanical Engineering from the
Asia Institute, which runs the Asian Future Leaders Scholarship Program (AFLSP).
University of Illinois (1964) • Began funding Asian Youth Centers for
This program—inspired by the success of the Rhodes
students at five mainland Chinese
Scholarship program—sends Asian students to study at
leading universities in mainland China, Hong Kong and
• Established the Bai Xian Education Foundation Limited (2014) • Has served as vice chair of the family
Taiwan, as well as Japan and Korea. The effort already is on target to give 100 scholarships a year.
firm, Novel Enterprises Limited (NEL),
When establishing the foundation, Mr. Chao very deliberately
since 1996 (previously served as
decided against using his family name. The Chao family is well
NEL managing director)
known as the owner of Novel Enterprises Limited, one of the world’s leading vertically integrated textile and apparel manufacturers. He named his philanthropic enterprise the Bai Xian Education Foundation. In Chinese, “bai xian” means “100 wise people.” “We don’t want to be limited by a family name,” Mr. Chao explains.
But as he reached his 70th birthday in 2009, he
It was Mr. Chao’s five years studying in Japan
felt too little had changed between China and
at the University of Tokyo that inspired him to
Japan since he was a student. Indeed, it might
create a pan-Asian scholarship program.
even be said that relations have gone backwards. He felt it was time for him to act, and that it
Mr. Chao graduated in 1962, not that long
would be much more productive to learn from
after the end of World War II. Still, Mr. Chao
the past and rebuild positively—especially as
says, in the dormitory that he shared with his
Japan and China have so much in common.
fellow Japanese students, there “was no time for antagonism.” Indeed, the friendships that
“With age, you become concerned about doing
Mr. Chao forged 50 years ago remain strong
more with the time you have left,” says Mr. Chao.
today, and many of his fellow students have
“This is my ‘crunch’ time.”
gone on to have successful careers in government, business, finance and education.
And, given his own experiences as a student, it was a natural choice to fund education as a
After graduation, Mr. Chao returned to Hong Kong
driver of cross-cultural dialogue.
to join the family business, where he serves today as vice chairman.
SENDING ASIAN STUDENTS
TO ASIAN COUNTRIES OTHER THAN THEIR OWN AT
6 ANCHOR UNIVERSITIES
AS WELL AS 10 PARTICIPATING UNIVERSITIES
HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY
RONALD KEE-YOUNG CHAO 37
© Christian Kober/JAI/Corbis
“It will be a ripple effect. Growing firm friendships among the young...will benefit not only the Asia-Pacific region, but also the whole world.”
“Most of our brightest Asian students, if they have the means, go to study in the United States or Europe. We are trying to encourage Asian students to study in Asia,” says Mr. Chao. It is Mr. Chao himself who likens the program to the Rhodes Scholarship program, which
funds postgraduate study at the University of
The Asian Future Leaders Scholarship Program
Oxford in the United Kingdom. The goal of the
supports students from Asia to study at a university
Rhodes Scholarship is to promote international
in another Asian country. There are currently six
understanding by broadening the minds of
anchor universities in China and Japan, as well as
scholars academically and personally.
10 participating universities. The institute plans to further its endeavor by deepening relationships
Mr. Chao’s Asian variation on this theme is
in mainland China, Taiwan, Hong Kong, Japan and
gaining traction, especially with universities
Korea in an effort to provide a common platform
and corporations in his region.
for its anchor and participating universities. Universities want to expand their number of Anchor universities are Kyoto University,
Hitotsubashi University and Waseda University in Japan, the Hong Kong University of Science
Also, Mr. Chao says, “Asian business owners
and Technology, and the Peking University and
find it attractive to hire graduates who know
Zhejiang University in China.
how to do business in other countries because they speak the language of that country and understand its culture and customs.”
The Asian Future Leaders Scholarship Program
“The more scholarships we can provide, the
requires its students to join a summer program
greater the impact,” says Mr. Chao.
held every year in August by the Bai Xian Asia Institute. The summer program’s main goal is to allow scholars from different universities to spend three weeks together learning from each other, sharing views on common topics, and building relationships based on respect and
To this end, the Bai Xian Asia Institute has added business leaders from Hong Kong, China, Japan and the United States to its advisory council. These council members contribute their time, advice and expertise to help raise awareness of
As Mr. Chao says: “This is about building their
Mr. Chao’s daughter also works for the institute,
minds. Given the diversity of culture in the Asia-Pacific region, having students from across the region at a university adds to the richness of debate.” By rewarding leadership qualities in the scholars, he hopes to empower students who have the capacity to transform the perspectives of their fellow students, then later their companies, their cities and their countries.
alongside a young professional staff. Their job is to collaborate with the universities and students to ensure quality of experience, build alumni and friendship networks, and encourage other philanthropists to join the effort. The institute is a public organization, says Mr. Chao, “so anyone who has similar beliefs and supports the idea can work with us and share resources.”
“It will be a ripple effect,” says Mr. Chao. “Growing firm friendships among the young...will benefit not only the Asia-Pacific region, but also the whole world.”
CALL TO ACTION The Bai Xian Asia Institute has invited other private and corporate philanthropists to
•Changing the cultural attitudes that underpin tensions in Asia is a long-term goal that requires collaboration across the region and among business owners, corporate entities and educators •Cultural change occurs when you broaden the minds of tomorrow’s leaders
collaborate in these efforts in the hopes of extending the program.
RONALD KEE-YOUNG CHAO 39
We need this revolution because
SIR RONALD COHEN
we cannot afford to write off human capital
UNITED K I NGD OM •B orn in Egypt to a British mother. Following the Suez Crisis, his family of origin fled Egypt for England (1957) • E arned a degree in Philosophy, Politics and Economics at Exeter College, Oxford University, and an M.B.A. at Harvard
Sir Ronald Cohen says he is not engaging in philanthropy. Rather, he is taking what he learned from rethinking the financing of startup companies and applying that to reimagine the world’s approach to solving humankind’s most intractable social problems.
• C o-founded the firm that became Apax Partners, one of Europe’s first and now one of its largest private equity funds • Knighted (2000) • F ounded such social impact investment efforts as The Portland Trust (to develop
These monumental innovations have earned the 69-year-old Sir Ronald two monikers: “father of venture capital” and “father of social investment”—not to mention a British title. His first effort in venture capital and private equity was hugely
the Palestinian private sector), Bridges
successful. At age 26 in 1972, Sir Ronald started a company
Ventures (for innovative sustainable
with two classmates from Harvard Business School. Their firm
growth) and Social Finance (an advisory
became Apax Partners—and one of the world’s leading
seeking to develop the UK market in social finance) • Chair of the UK-based Big Society Capital, the world’s first social investment bank; the UK’s Social Investment Task Force (2000–2010) and
private equity firms. Sir Ronald left Apax on his 60th birthday in 2005, after co-founding Bridges Ventures in 2002 and The Portland Trust in 2003. Bridges Ventures is an investment firm seeking
its Commission on Unclaimed Assets
to deliver social and environmental benefits as well as
(2005–2007); and the G8’s Social Impact
financial returns; it has raised six successful funds to date
Investment Task Force (2013–2014)
and delivered market rates of return, currently managing
•M arried to Sharon Harel, film producer
more than £500 million.1
whose credits include Gosford Park, and daughter of the commander of the Holocaust survivors’ ship Exodus. The couple has two children 1
As of September 1, 2014; http://bridgesventures.com.
The Portland Trust works out of offices in
“We have defined something new [that] has
London, Tel Aviv and Ramallah to encourage
turned into a movement,” says Sir Ronald.
business and social entrepreneurship in order
“I think it will have a momentous impact.”
to relieve poverty in Israel and develop the private sector in Palestine. These two entities are a testimony to Sir Ronald’s new mission—social impact investing. Although still a work in progress, the concept of social impact investing—and enthusiasm for it—has already started to spread across the globe.
CREATING AND QUANTIFYING Sir Ronald’s involvement in this movement began in 2000, when he was appointed chair of the UK government’s Social Investment Task Force “to unleash new sources of private and institutional investment” into the social sector. Since then, Sir Ronald has co-founded and
In 2013, the UK government reported that social
chaired the world’s first social investment bank,
impact investing had grown into a $36 billion
the UK-based Big Society Capital, capitalized with
market since the inception of its foundational
£600 million from unclaimed assets left dormant
term “impact investment” in 2007. J.P. Morgan
in bank accounts to help speed the growth of the
has estimated that by 2020, the global social
social impact investment market.
impact market could potentially reach $400 billion to $1 trillion in invested capital, and $183 billion to $667 billion in profit.2
Of course, one of the best ways to grow this market is to quantify and prove its impact and return.
IMPACT INVESTMENTS © Cristina Muraca/Shutterstock
INVESTMENTS MADE WITH THE INTENTION TO GENERATE BOTH
MEASURABLE SOCIAL/ ENVIRONMENTAL RETURNS FOR SOCIETY
FINANCIAL RETURNS FOR THE INVESTOR
“Perspectives on Progress,” Global Impact Investing Network, accessed May 19, 2013; http://www.thegiin.org/cgi-bin/iowa/resources/ research/489.html. SIR RONALD COHEN 41
Business involvement is essential because history has shown that neither governments nor the third sector alone can solve key social challenges. While “we have to invest in people for themselves © Eyal Nahmias/Alamy
and for society,” says Sir Ronald, “for every social issue, in many countries, there will be a published cost of intervention, and estimated savings that government can derive from it.” This will become the basis for a thriving market in achieving
GREAT RETURNS—Invest in people, for their own and society’s sake.
Sir Ronald chairs the G8’s Social Impact Investment Task Force, which published its compelling report in September 2014, defining the potential trajectory of impact investment and, among other important contributions to the field, creating guidelines to help measure impact.3 If we can accurately measure social returns so that they can be financially rewarded on a pay-per-outcome basis, Sir Ronald states, then impact investments can be fairly judged against traditional investments by investors, thus opening up the social impact market to mainstream investors and effectively giving social entrepreneurs the key to the capital markets.
ATTRACTING ENTREPRENEURS There are direct parallels between the current innovation taking place in impact investing and the birth of venture capital and private equity, says Sir Ronald. In the 1970s, many companies employed large numbers of people and were heavily funded, but highly inefficient. Then the government made legal and regulatory changes necessary to open the market to entrepreneurs and private capital. “As soon as entrepreneurial people realized that money had become easily available, they left jobs and tried to get their hands on this money. Investors wanted to have higher returns, and funded them and the innovation they brought,” he says.
“Impact Investment: The Invisible Heart of Markets—Harnessing the Power of Entrepreneurship, Innovation and Capital for Public Good,” Report of the Social Impact Investment Task Force, G8, September 2014; www.socialimpactinvestment.org.
Just as venture capital and private equity
has said, “No single country, no matter how
provided the fuel to help Europe’s economies
rich or powerful, can solve global challenges
take off and create much-needed jobs in the
on its own.”4
1980s and 1990s, says Sir Ronald, conditions today are ripe for social impact investment
But each sector has an important function, and
to unleash the forces of entrepreneurship,
together, Sir Ronald says, real progress might be
innovation and capital markets to solve
made. Philanthropists’ important role, he suggests,
is to help seed, test and refine the impact investment model and to help take it to scale.
Providing support to the vulnerable by targeting a combination of social and financial returns,
“We need new approaches that bring
says Sir Ronald, is to bring the “invisible heart
change at scale,” says Sir Ronald. “That is the
of markets” to guide their invisible hand.
revolutionary aspect of social impact investment. Psychologically, we get a lot of pleasure simply from being generous, but we need to focus on
CAPITALISM AS PART OF THE CURE Business involvement is essential because history has shown that neither governments nor the third sector alone can solve key social challenges, according to Sir Ronald.
how to best achieve real change if we are to improve numerous people’s lives.”
“Before the 1930s, philanthropists thought they could solve our social problems, but eventually had to throw up their hands at the size of the challenges. Then governments tried. Now, they too are throwing up their hands,” Sir Ronald observes. For the social sector, unpredictable grant funding hinders it from delivering efficiently at scale. For governments across the world, the challenge is how to stimulate innovation and
• Impact investment offers the potential to bring the resources of the global capital markets to social challenges • Philanthropists can help seed, test and refine the impact investment model and help take it to scale • Effective measurement techniques will mean investors can be paid their returns out of savings to society. This combined social and financial return will put impact investments on par with traditional investments
attract new flows of capital and entrepreneurial talent. As U.N. Secretary-General Ban Ki-moon
“Every Woman Every Child Taking Action Summit,” 2013, J.P. Morgan conference. SIR RONALD COHEN 43
Saying “thank you” to one’s
LESTER CROWN Crown Family Philanthropies UNITED STAT E S
country, community, people—and the organizations that serve them
• 1919—Sol, Henry and Irving Crown establish the Material Service Corporation, which acquires a controlling stake in General
For Lester Crown and his family, giving is an expression of their
Dynamics in 1959
hearts, identities and profound gratitude. It is also an obligation—
• Lester Crown succeeds his father as
in the noblest sense of the word.
chairman of the Executive Committee of General Dynamics and as president of Henry Crown & Co., the family’s holding company (1986) • James Crown succeeds Lester in both these positions (2003) • Lester Crown is awarded an Honorary Doctorate of Philosophy from Tel Aviv University (2008) • After 60 years of family giving under the name Arie and Ida Crown Memorial Foundation, the family reorganizes its giving as Crown Family
HEART For the Crowns, who give to as many as 1,000 organizations every year, choosing “core” grantees can be difficult. They believe there are many ways to make a difference. But their “portfolio approach” does look at elements for potential success. Key among them: effective leaders. “The post-audit that you do in business is not the same as in philanthropy,” says Mr. Crown, who actively engages with groups dedicated to many causes. (See “Time well spent,” page 44.)
Philanthropies (2009) • The Crown family is awarded the Andrew Carnegie Medal of Philanthropy (2011)
With philanthropy, Mr. Crown says, “if the outcome is good, that is all that you need to know.” Mr. Crown says he inherited this approach from his father and uncles. By way of explanation, the 89-year-old shares a story that he says, “I have remembered all my life.”
© Aaron Horowitz/Corbis
“TZEDAKAH” THE OBLIGATION TO DO WHAT IS RIGHT L ester Crown says he gives in the Jewish tradition of tzedakah.
In 1948, his father, Henry Crown, hosted a group of about 10 men in his Chicago home to discuss fundraising for the newly founded state of Israel. One of the men said he had just spent two weeks in Israel, and a great deal of the donated money
ROOTS To understand the Crown family’s giving, it is also important to know their family history, a classic tale of Jewish immigration to the United States in the late 19th century and the American promise.
was being wasted. “We have been fortunate to live in this country at Lester Crown recalls: “Dad asked, how much
this time,” says Mr. Crown. “If my father had been
of the money did the man feel was wasted?
three times as smart but lived in Europe in the
The man said, ‘perhaps 50%.’”
Middle Ages, he would have died behind a plough at 32 and that would be it.”
Henry Crown was quick to answer: “I am so glad you were there and told us. Clearly, now everybody
Instead, at the end of the 19th century, Lester’s
has to double their contribution to be effective.”
grandparents, Arie and Ida Crown, emigrated from Russia. The couple settled in Chicago, where Arie
In other words: There is only so much you can
worked in sweatshops.
control. Stay focused on the cause, and do whatever you can to ensure its success.
In 1919, three of their seven sons, Sol, Henry and Irving, borrowed $10,000 and founded Material Service Corporation (MSC) to sell gravel and sand to builders in the Chicago area.
LESTER CROWN 45
MSC was a $100 million company when it merged with General Dynamics in 1959. The Crowns gained a controlling interest in the resulting business. Lester joined the family’s businesses in the 1950s,
“Most organizations merit support, and giving is a way of saying ‘thank you.’”
and ultimately served as vice president and chair of the Executive Committee of General Dynamics from 1986 until 2003. He also served as president of Henry Crown & Co., the family’s holding company. Today, Lester’s son, James, is president of Henry Crown & Co.
TIME WELL SPENT Lester Crown’s interests include, but are not limited to, education, medicine and the support of Jewish causes and Israel. As a result, he has worked closely with a wide variety of nonprofit organizations, including serving as: • Director of the Lurie Children’s Memorial Hospital in Chicago • Chairman of the Executive Committee of the Lyric Opera of Chicago
The Crowns’ philanthropy is deeply rooted in this identity and love of a country that allowed their family to thrive—especially as their experience contrasted so starkly with what happened to Jews in Europe during World War II and the Holocaust.
PHILANTHROPY For 60 years, the Crowns have been a powerful force behind many of the world’s most important Jewish institutions and programs in the United States and Israel, including Hebrew University and the U.S. Holocaust Memorial Museum in Washington, D.C. They are also contributors to Birthright Israel, which provides young Jewish adults in the United States with free 10-day trips to Israel.
• Chairman of the Civic Committee of the Commercial Club of Chicago
At the same time, the Crowns have given so
• Vice chairman of the Aspen Institute
and human services, the environment, education,
• Director of the Jerusalem Foundation • Life trustee of Northwestern University • Governor of Tel Aviv University • Member of the American Academy of Arts and Sciences
generously in the Chicago-area—for healthcare civic affairs, the arts and culture—that a fellow philanthropist described Mr. Crown as the “reigning patriarch of philanthropy in Chicago.”1 Mr. Crown and his family shy away from such acclaim. “Why should you be praised for what you owe?” asks Mr. Crown. He gives, he explains, to observe the Jewish tradition of tzedakah. That is the Hebrew word
T HE CROWN FAMILY—Patriarch Lester Crown encourages his family to give to causes that are meaningful to them.
commonly used to describe the obligation to
The 75 adult family members are asked to put
do what is right and just by giving to others
aside a portion of their incomes for charitable
and not attracting attention to oneself.
giving and to get involved in causes that interest them. “You need to give them freedom to make
As far as the Crowns’ support of many
their own philanthropic choices,” says Mr. Crown.
organizations beyond their primary 100, that is simply how his family expresses appreciation
But the most important lesson, he says, is to lead
for the good work done in their community, says
by example. “Children have to see what you do as
Mr. Crown. “Most organizations merit support,
early as possible.”
and giving is a way of saying ‘thank you.’”
FUTURE FOCUSED All this activity is organized under the umbrella of the Crown Family Philanthropies and is staffed by a small team of professionals, but contributions are determined by the family. Over the years, the family’s philanthropy has expanded in line with its business success. Now, “only a few people within the family are deeply involved in the business,” says Mr. Crown. But, he says, they all can and are encouraged to be
• Most organizations merit support; engaging with many is a way of showing your gratitude for their work in the community • Allowing for wide-ranging philanthropic engagement empowers the next generations to become involved with causes that interest them • Too much focus on measuring effectiveness and results can detract from the opportunities to do good in society
involved in the family philanthropy.
LESTER CROWN 47
Innovate to achieve
GURURAJ “DESH” DESHPANDE
real-world solutions to real-world problems
Deshpande Foundation UNITED STAT E S • Co-founded Coral Networks (1988�1989) • Founded Cascade Communications (1990)
Early in his career, Gururaj “Desh” Deshpande believed that entrepreneurs’ passion for problem solving could find answers to social challenges, and he shaped his philanthropy accordingly.
• Set up the Deshpande Foundation with his wife (1995) • Launched Sycamore Networks (1998);
But over time, he came to appreciate that to find truly sustainable solutions in economically challenged communities, intended
subsequently became founding investor
beneficiaries must be deeply involved at all stages. As a result,
and chairman of Tejas Networks,
he has dramatically changed his giving model.
A123Systems, Airvana and Cimaron • Founded the MIT Deshpande Center for Technological Innovation (2002) • Launched the Social Entrepreneurship Sandbox in Hubli, India, and later replicated it in the United States • Founding grant to MassChallenge (2009) • Appointed by President Barack Obama to
Mr. Deshpande’s initial complete faith in entrepreneurs is understandable. One of the world’s most successful entrepreneurs and venture capitalists, he has created several successful businesses, primarily by transferring ideas from universities to businesses, or, as he puts it: “connecting thinkers and doers.” Among Mr. Deshpande’s accomplishments: Two of the companies
co-chair the National Advisory Council on
he founded, Cascade Communications and Sycamore Networks,
Innovation and Entrepreneurship (2010)
Massachusetts-based internet equipment manufacturers, went
• Launched the Pond-Deshpande Centre
public in 1994 and 1999. They played a key role in helping form
for Innovation and Entrepreneurship at
the backbone for the internet.
the University of New Brunswick in Canada (2011) • Founding grant to NSF Innovation Corps (ICorps) Program (2011) • Launched EforAll (2014)
“In technology, big ideas were being developed in the universities,” Mr. Deshpande explains. “But, to make a difference, the big ideas have to be relevant to the world, and you need entrepreneurs to take those ideas to the market.”
EARLY MODEL It followed naturally that Mr. Deshpande initially focused solely on cultivating entrepreneurs, and he made traditional grants to major universities to accomplish that goal. Originally from India, Mr. Deshpande and his wife, Jashiree, felt they could have more of an impact on peoples’ lives in their native country by encouraging the next generation of entrepreneurs.
© Jorge Salcedol/Shutterstock
“In technology, big ideas were being developed in the universities. But, to make a difference, the big ideas have to be relevant to the world, and you need entrepreneurs to take those ideas to the market.”
IDEA GENERATOR—At the Massachusetts Institute of Technology, the Deshpandes’ funding helped create a center for technological innovation.
The center encourages collaboration, awards research grants, and helps coach researchers whose work shows the potential to benefit society, transform markets and industries, and improve the quality of life for people across the globe.
The couple’s first philanthropic gift, $250,000 in
To date, technologies developed in the Deshpande
1995, was made to the couple’s alma mater, the
Center have led to more than 30 funded ventures,
Indian Institute of Technology (IIT) in Madras, to
with more than $350 million in external funding.
launch IIT’s Alumni Network.
The current portfolio includes the application
They used a similar approach in the United States. One of the most significant gifts Mr. Deshpande’s
of nanotechnologies to water desalination and new drug therapies for oral cancer.
family foundation has made was its 2002 grant of $20 million to the Massachusetts Institute of Technology (MIT) to create the Deshpande Center for Technological Innovation. The Deshpande Center’s goal is to help MIT researchers develop innovative technologies and bring them to market in the form of breakthrough products and new companies.
AWARDS RECEIVED • Lifetime Achievement Award from the National Association for Community College Entrepreneurship • The Adolf F. Monosson Prize for Entrepreneurship Mentoring at MIT • 2013 TiE Award for Best Organization Promoting Entrepreneurship
GURURAJ “DESH” DESHPANDE 49
“If you want to help people, don’t send in smart
“If you want to help people, don’t send in smart people. They bring their ideas to the field, which is the wrong way round. You have to start with relevance.”
people,” he says. “They bring their ideas to the field, which is the wrong way round. You have to start with relevance.” This was the motivation behind the Deshpandes’ breakthrough project: the Hubli Social Entrepreneurship Sandbox. The Hubli Sandbox was founded by the
A NEW MODEL Today, the Deshpandes are taking a new approach to philanthropy. While entrepreneurs succeed in business by innovating first and later finding a way to make the product practical in the real world, Mr. Deshpande now believes that many solutions to social challenges fail because they impose too much innovation.
Deshpandes in India in 2007, and combines two elements: a geographical area identified for change and the Center for Social Entrepreneurship, which provides space and financial resources for social entrepreneurs to test and scale innovative ideas and ventures that support the local community. Experience has taught them that relevance and success can be achieved if they focus on funding local entrepreneurs and programs that encourage entrepreneurship among students. For example, one student invested in nail clippers and set up a clinic in a poor neighborhood to teach children how to cut their nails and keep their hands clean. The project had the immediate impact of decreasing childhood sickness in that village. Through the Sandbox, the Deshpandes also became involved in bringing nutritious meals to children in India. They supported and mentored an organization in the Sandbox that brought together advanced engineering, procurement, logistics, accounting and food science experts.
J UST ASK—Potential recipients know best what their communities need.
THROUGH THE SANDBOX, THE DESHPANDES SUPPORT A PROGRAM SUPPLYING
1.4 MILLION CHILDREN IN INDIA WITH HOT MEALS EVERY DAY
© Werli Francois/omimages
AT A COST OF JUST
12 CENTS PER CHILD
online platform to connect families and the elderly with caregivers, and Edible Land Design, which designs, builds and maintains fruit and vegetable gardens. Some of them have already started serving thousands and hiring several employees. This organization provides 1.4 million children in India with hot meals every day at a cost
Mr. Deshpande continues to experiment with
of 12 cents per child, making it one of the
his new philanthropic model, but he says he
most cost-efficient school lunch programs
is convinced that we can best address social
in the world. The goal is to reach five million
problems by sparking “entrepreneurship for all.”
children by 2020. Using their success in India as a model, the
It is a powerful message from a man who left India in 1973 with just $8 in his pocket.
Deshpandes have again brought their giving back to the United States. In 2010, they created the Merrimack Valley Sandbox within the Center of Innovation and Entrepreneurship at the University of Massachusetts Lowell.1 The Merrimack Valley Sandbox offers workshops, pitch contests and mentorship to help test and scale social innovation. In 2014, 27 projects received support, including Meetcaregivers, an
• Connect thinkers and doers • Empower people to envision problems as opportunities for finding solutions • Start with the problem, not the solution: Social change requires solutions that are relevant first, and innovative second
Now rebranded as Entrepreneurship for All (EforAll). GURURAJ “DESH” DESHPANDE 51
Education is the key to creating social equality
MARCO FERRARA Fundación Vicente Ferrara
Marco Ferrara has dedicated himself to the proposition that a simple idea, executed with steadfast commitment, has the
M E XICO
potential to change a country’s culture and alter its history.
• Great-grandson of steel and banking
Mr. Ferrara’s thinking on the matter began when he was
magnate Vicente Ferrara Ferrigno • Trained in Hospitality and Tourism, and
just 16 years old and studying in the United States as part of an international summer exchange program. One of his
worked for some years in that industry
assignments was to write an essay on a problem in his
home country. A fellow student suggested he look at social
• Returned to Mexico to help provide
inequality in Mexico.
others with educational opportunities, ultimately lifting communities out of poverty and benefiting the entire country
Until that moment, as a young man growing up in Mexico’s privileged suburb of San Pedro Garza García, Mr. Ferrara simply had not considered the magnitude of poverty in his country. In his words, he had lived life “in a bubble.” The moment he did look at this reality in Mexico, Mr. Ferrara’s journey began. He went on to become one of his country’s most prominent advocates for social equality through education. “Once you understand the reality of your country, there’s no turning back,” he explains.
VISION In 2005, at age 25, Mr. Ferrara focused on tackling the root cause of his country’s poverty. The real solution, he began to see, was to provide people in Mexico with the skills necessary to become self-sufficient.
ROOTS Working through the Fundación Vicente Ferrara (which bears the name of his great-grandfather), Marco Ferrara started by focusing on developing quality vocational training based on local business needs so that Mexico’s poor could move into readily available employment or entrepreneurship.
He discovered that the roots of income and social inequality are ineffective educational systems
In many ways, he is continuing his
and government assistance programs that aim
great-grandfather’s approach. Starting in
at subsistence rather than independence. “Ours
1890, Vicente Ferrara Ferrigno built successful
has been a culture of charitable gifts, and not
banking, mining and steel businesses such
education,” he says.
as Compañía Fundidora de Fierro y Acero de Monterrey, the first steel and iron company in
He created a different model of philanthropy,
Latin America. Mr. Ferrara Ferrigno maintained
one that leads to improved social and economic
a strong social contract with his employees,
becoming known for taking a strong interest in
“Philanthropy is not just about giving—it is also about empowering,” he says.
employees’ well-being and for helping ensure their children were educated. “Businessmen in those days saw the success of their companies reflected in the quality of life of their workers,” Mr. Ferrara says.
INCOME INEQUALITY—Some improvements in Mexico’s poverty have been made since 2000—thought largely to be a result of improved education. Today, 60 million of the country’s 120 million people live in poverty. Two million are classified as unemployed, and 30 million are classified as informally employed.
© 2/Adalberto Rios Szalay/Sexto Sol/Ocean/Corbis
MARCO FERRARA 53
THE MESSAGE SENT VIA PUBLICITY CAMPAIGNS AND VOCATIONAL TRAINING
IS THE SOLUTION TO MEXICAN POVERTY
“EN NUESTRAS MANOS” © Andrew Aitchison/Alamy
(IN OUR HANDS)
Mexico, he believes, needs to rediscover these
He also began forging links with businesses
values and encourage more partnerships
and government, and establishing microcredit
between public and private entities geared
programs to help graduates launch their own
toward tackling its huge poverty divide.
businesses or obtain additional skills to secure work.
ACTION Mr. Ferrara’s first big project was construction of the first Integral Training Center (Centro de Capacitación Integral, known as CAI), launched in 2009. The CAI Monterrey is built on the site of a former landfill at the center of the poverty-stricken San Bernabé neighborhood in Monterrey.
“It is not enough to train a person for a particular
At a cost of more than $5 million, the center
In Mexico, he has created a civil movement
offers 12-month vocational training to 2,000 men
mobilizing businesses, government and popular
and women 16 to 50 years old. Training is in a
support behind En Nuestras Manos (In Our Hands).
variety of trades (e.g., construction, electrical,
This trademarked social responsibility campaign,
beauty, programming and media) and life skills
also run by the Fundación Vicente Ferrara, seeks
(e.g., money management, physical fitness,
to encourage individuals, companies and
health, performing arts, human development,
government bodies to commit to helping fellow
happiness and forgiveness).
Mexicans lift themselves out of poverty.
job,” says Mr. Ferrara, “we must train them for life.”
NATIONAL MOVEMENT Even before the CAI Monterrey opened in 2013, Mr. Ferrara had plans to expand.
contacted by policy researchers and philanthropists
“We must create a more dynamic culture of social responsibility in which we do not simply create wealth for the sake of creating wealth, but also to generate a social legacy.” Through television documentaries, celebrity support and high-profile interviews in lifestyle magazines, Mr. Ferrara has put the media spotlight on poverty in Mexico by adopting the simple message that the solution is “in our hands.” The launch of a range of colorful bracelets, available as a gift for donations at bank branches and stores across Mexico, has enabled the public to back the campaign and raise funds. In return for corporate funding or direct support for CAI graduates, businesses display the En Nuestras Manos logo. “For something as hugely problematic as poverty
in Guatemala and Honduras as well as Bangladesh and India.
CULTURAL CHANGE But for Mr. Ferrara, the real work of En Nuestras Manos is cultural change. “We must create a more dynamic culture of social responsibility in which we do not simply create wealth for the sake of creating wealth, but also to generate a social legacy,” he says. “The only way to leave a better Mexico for all is to become more involved.” Moreover, he adds, “we all can be engaged in philanthropy” simply by “adopting a story to change someone’s life.” “If everyone would choose to help just one person in their lifetime, really make a difference in a pay-it-forward kind of a way,” says Mr. Ferrara, “there is the potential for permanent positive change in our world’s story.”
in our country, we need to roll up our sleeves and join hands,” Mr. Ferrara says. The foundation has sites in Mexico City, Monterrey, Puebla and Taxco. To take the program nationwide, it is working with local leaders around the country. “Our goal is to create training centers in the 2,457 counties, because unfortunately poverty is present in all of them,” he says. Mr. Ferrara also is exploring opportunities to establish this model of social intervention in other developing countries. He has been
• F ight the causes of poverty, rather than its symptoms • E quip individuals to help themselves through training and skills development •G et everyone involved; build a movement of citizens, thought leaders and government officials to help the disadvantaged in a country • E ngage with a cause and make it part of your life, not just an annual task MARCO FERRARA 55
Working with a powerful partner for reach and impact
STEFAN FINDEL The Child and Tree Fund GERMAN Y
The most striking feature of the philanthropy that Stefan Findel and his wife, Susan Cummings-Findel, practice is their
• S tefan Findel was born into the Findel-Mast family, which privately owns and personally manages a business, Mast-Jägermeister SE. His
close partnership with the United Nations Children’s Fund (UNICEF).
wife, Susan Cummings-Findel, lived in
Some donors may hesitate to get involved with big nonprofit
a South Korean orphanage until she
organizations. The Findels have partnered so actively with one of
was adopted by an American couple
the world’s biggest, UNICEF, that they have become the largest
•M r. Findel works as a photographer;
single private donor in that organization’s 68-year history.
Ms. Cummings-Findel is an interior designer • The couple’s approach to philanthropy
“It takes years to establish this kind of relationship”—but it is well worth the effort, says Mr. Findel. Large not-for-profit
has been forged through 50 years of
organizations are complex and often fragmented, particularly
charitable activity. Today, by giving
those working globally. It is only when you understand the
directly and through their foundation,
relationships between the fundraising teams, the project
The Child and Tree Fund, the Findels are UNICEF’s largest funders
managers and frontline staff that you can appreciate and participate in the incredible work they accomplish, he says.
• The couple also makes major contributions to the Carter Center (founded by former U.S. President Jimmy Carter and his wife, Rosalynn), Human Rights Watch and several other organizations • The Findels have no children and plan to spend down their foundation and fortune in the next 30 years
FINDING THEIR PATH This assessment is based on a lifetime of giving experience. Mr. Findel was born into the Findel-Mast family, which privately owns and personally manages a business, Mast-Jägermeister SE, headquartered in Wolfenbüttel, a town in Germany’s Lower Saxony. The company, founded in 1878, has as its signature product an herb-flavored liqueur called Jägermeister, which was first brought to market in 1935, and last year reportedly generated $81 million in sales.1
© UNICEF Afghanistan/2013/Alistair Gretarsson
CONNECTIONS—Susan Cummings-Findel and her husband, Stefan Findel, see firsthand the positive impact UNICEF has.
Mr. Findel says he was born into, but never
Together, they wanted to practice hands-on
comfortable with, the privilege this kind of family
philanthropy, but their experience in Madagascar
wealth affords. When young, he volunteered to
quickly taught them the challenges of going it
rattle collection boxes in his town. He gave to
alone. “Looking back, that was probably one of
charities and later established a foundation
our biggest mistakes,” says Mr. Findel.
(Stiftung) in Germany. The effort took far more of their time than After he and his wife met, the couple embarked
anticipated, and required so much travel that
on a philanthropic project focused on education
it became unsustainable for two individuals with
and environmental issues in Madagascar, a
full-time careers. They also were shocked by the
country previously known to his wife, who had
costs. Mr. Findel says, “A small local outfit has
volunteered there on a scientific project.
relatively huge overheads, because you need to create the infrastructure: a car, an office and staff.”
Susan Cummings-Findel’s upbringing was very different from her husband’s. She grew up in a
At that point, the couple hadn’t had any major
South Korean orphanage until she was adopted
engagement with large NGOs, but that was about
and was brought to the United States, where she
to change. “I started by giving small amounts
studied art and became an interior designer.
evin Leonard, “Successful Marketing: Fireball Whisky: Selling a Brand, Shot by Shot,” Bloomberg Businessweek, Companies & Industries, D April 2014, www.businessweek.com/articles/2014-04-24/fireball-whisky-gains-on-jagermeister-via-social-media-bar-sales. STEFAN FINDEL 57
create educational opportunities for children in © UNICEF Afghanistan/Alistair Gretarsson
Afghanistan, Bangladesh, Liberia, Madagascar and Nepal. Naturally, UNICEF is in the driver’s seat. However, the couple are at the table to learn and debate options. “If you come with a lot of money and an idea that is in line with what UNICEF is already doing, you can have a lot of input,” Mr. Findel says. “We can say what we want to do, and UNICEF gives us advice on how to achieve that with them.”
“UNICEF has good relationships with governments—at both a national and local level—so we can learn directly about the issues.”
Working with UNICEF enables the Findels to gain access to global infrastructure and to engage. They get close to the beneficiaries, talk with local staff about the challenges, see infrastructure needs and meet local officials. “UNICEF has good relationships with governments—
regularly,” says Mr. Findel. “It was probably 10 years before I went on a field trip with UNICEF—to North Korea, no less.” It was during that trip when he gained invaluable insight into the impact large
at both a national and local level—so we can learn directly about the issues,” says Mr. Findel. “Watching videos or reading reports while sitting comfortably and safely at home just isn’t the same.”
NGOs can have.
HOW THEY ENGAGE The partnership with UNICEF has grown over 20 years, and the Findels’ donations to UNICEF (made through their foundation, The Child and Tree Fund) now total about $36 million. They have supported an array of programs. The most substantial commitment (approximately $26.5 million) has been to a new educational initiative called “Let Us Learn,” which seeks to
LOOKING AHEAD There are two items on the couple’s philanthropic agenda. Perhaps the most striking is the Findels’ decision to give away their entire fortune during their lifetimes. “We don’t have children, so we asked ourselves, ‘Why do we need to have all this money left when we are gone?’” Now in his 60s, Mr. Findel estimates that he has 30 years to live, so he and his wife are giving with that time limit in mind. Before the German law was reformed in 2014, the country did not permit a
LET US LEARN, AN EDUCATIONAL INITIATIVE, HAS HELPED OVER
895,000 CHILDREN TO DATE
with their work. But Mr. Findel believes that wealthy people, particularly those in Northern Europe, would be willing to give more if they understood the conditions and challenges faced by children, families and whole communities in © Sebastian Rich/Corbis
less wealthy economies. And he feels he has an obligation to share what he has seen and learned. “If you go to the ghettos in Liberia and meet a family of 10 people who live in a hut of 10-square meters with no electricity or water, you start to realize that all of us who have wealth should give foundation to spend down as the Findels had envisioned, so the couple set up another foundation in the United States, where they live now.
away sizeable chunks of money,” he says. “It is our debt because we have the greatest perk of all—which is that we live in a developed, stable and rich economy. Our lives, in a material sense, are the best in the world.”
The second momentous decision for the Findels has been to go public about their philanthropy in the hopes of encouraging others who are wealthy, particularly in Mr. Findel’s native Germany, to give more. The Findels are featured in various UNICEF publicity campaigns and give interviews to the German press. This is a big step for the low-profile pair, who prefer not to attend fundraising events and won’t have the Findel name on buildings associated
• Partner with non-governmental organizations, which can provide access, knowledge and experience that a philanthropist cannot achieve working alone • Individuals who benefit from living in stable economies should consider giving more to people who are struggling in developing countries
STEFAN FINDEL 59
There are many ways to effect change, but
passion is always the best driver JESSE AND BETSY FINK Betsy and Jesse Fink Foundation and MissionPoint Partners
Betsy and Jesse Fink have always been interested in the
UNITED STAT E S
environment. They met while undergraduates studying
• J esse Fink co-founds Priceline.com with Jay Walker (1997) •P riceline.com is one of the hottest Internet IPOs of 1999
environmental science and forestry. Their big questions have been less about “what” and more about “how?” How could they define their agenda? And how could they be effective?
• T he Finks establish the Betsy and Jesse Fink Foundation (2001) • J esse Fink co-founds MissionPoint
To help answer these questions, the Finks have employed catalytic philanthropy, social impact investing and a strategic
Capital Partners to capitalize “on
process they call “pathfinder” that combines both nonprofit
high-growth investment opportunities
and for-profit investments. At the core is a desire to innovate
created by the accelerating demand for
and to spur entrepreneurship to effect systemic change.
clean, secure energy and large-scale transition to a low-carbon economy” (2006) • T he Finks seed fund Wholesome Wave (2008)
This approach is not surprising. After all, Mr. Fink co-founded Priceline.com, and Ms. Fink established Millstone Farm in Wilton, Connecticut, to incubate solutions for community-based food systems.
• MissionPoint Capital Partners enables Hannon Armstrong to become the first
Less obvious but equally inspiring is how much the Finks’ work
listed REIT (Real Estate Investment
has evolved, and continues to evolve, from the time they had
Trust) investing in environmental infrastructure projects (2013) •M issionPoint Partners is formed to combine the couple’s philanthropic and social investing (2014)
what they refer to as their “wealth event,” Priceline’s IPO in 1999.
The couple has continuously iterated to
Then, in 1999, at the height of the dotcom
discover what works, both in the marketplace
boom, Priceline went public, and the Finks were
and for them, because for the Finks, “giving
able to more actively pursue their passion for
back” is a very personal investment of time,
environmental causes. Still, it would take them
resources and hope.
almost two years to find their way. “All of a sudden you have this money, everybody is
MISSION: EARTH Both Finks grew up with a passion for the outdoors. Mr. Fink spent some of his teenage summers volunteering with a conservation group in national parks. The couple also not only attended the State University of New York’s College of Environmental Science and Forestry, but also intended to have careers in these fields.
coming after you, and it is hard to say no,” recalls Mr. Fink. “Early on, we were funding other people’s agendas.” This despite the fact that they had assembled what they called a “wisdom council”: a variety of individuals to advise them on wealth and family issues, including philanthropy. Then the Finks began to apply what they knew— finance and entrepreneurship—to their social
Ms. Fink’s graduate studies were in Land
mission, and their approach took shape.
Reclamation; Mr. Fink went for an M.B.A. and felt he could not effectively combine business and environmental work at that time. Both wound up working in corporate ventures.
CATALYTIC APPROACH The Finks use whatever lever helps them achieve their goals. “Financial resources are the smallest part of it,” says Ms. Fink. “You also have to put your heart and soul into it.” They therefore combine traditional grant making, use of their balance sheet, and advice to help social entrepreneurs succeed.
© Bernd Vogel/Offset.com
ETURNING TO THEIR ROOTS—The Finks’ philanthropy focuses on the environment, which is not surprising, given that R they met as undergrads studying Environmental Science and Forestry. JESSE AND BETSY FINK 61
THE FINKS’ SEED FUNDING HELPED
MAKE FOOD STAMPS WORTH DOUBLE AT
300 FARMERS’ MARKETS © sunlover/Shutterstock
IN 24 STATES
HANDS ON—Betsy Fink at her Millstone Farm shows a baby chick to students from Harlem Grown.
This catalytic approach under the strategic
One mentee has been Michel Nischan, a chef and
leadership of Mark Cirilli, co-founder and
restaurateur who became the co-founder and CEO
managing director of MissionPoint Partners,
of the Wholesome Wave Foundation.
involves: One of Wholesome Wave’s programs is based on •M entoring to help these individuals to identify
the idea that if people are incentivized to spend
the best of their ideas and to facilitate their
their food stamps at farmers’ markets, it could
approach, process and/or organization
encourage healthier lifestyles in underprivileged urban communities, cut food miles and improve
•P roviding first and critical capital or helping the
income for farming communities.
organization lower the cost of obtaining capital In 2008, Wholesome Wave’s Double Value Coupon • S taying involved over the long haul • L ooking for ways to encourage other donors and/or investors to participate in enterprises •A cting as a vocal advocate for the cause in the larger political and social arenas There are usually about five CEOs at a time with whom the Finks have this intense relationship.
Program launched in 12 farmers’ markets across three states. The incentive was simple: Government food stamps would have double their face value at these farmers’ markets. In addition to providing a $50,000 grant to test the concept in five markets, the Finks spent considerable time advising Mr. Nischan on how to allocate his time and energy. “Like many entrepreneurs, he had a lot of things going on,”
says Ms. Fink. Their support paid off: In the last six years, Wholesome Wave has rolled out the program with government support in 24 states to more than 300 farmers’ markets. Another example of the Finks’ catalytic approach
In their “Pathfinder” exercise, they ask: “What is the problem we’re trying to solve?” Then they look at all the paths to reach the desired goal.
is the help that their team provided to Hannon Armstrong, a leading sustainable energy financing company. The team helped the company become a
The first issue their Pathfinder addressed was
REIT (which has great tax advantages for investors),
food waste, an issue that Ms. Fink has been
go public in 2013 and raise $167 million.
focused on for 10 years. “If you are interested in climate change or food justice, you should
Hannon Armstrong was then able to tap into a pool
be interested in food waste,” explains Ms. Fink,
of relatively low-cost capital from small investors,
noting that the United States wastes about
and to arrange financing for additional projects.
40% of all food it produces, depleting natural
One year after the IPO, the company had
resources, exacerbating global climate change
completed nearly $1 billion in transactions.
and squandering opportunities to address food insecurity.
PATHFINDER The Finks’ latest innovation is taking them beyond what they see as their “opportunistic” phase of social entrepreneurship to a more strategic level.
And yet, Mr. Fink adds, “few people are actually funding food waste” programs. Of course, if the Finks’ track record is any predictor, that is about to change.
They have removed barriers among their foundation, family office, investing arm and Millstone Farm. Now, says Mr. Fink, they all sit around one table—their foundation’s grant-making expert, the family office CFO responsible for structuring the couple’s socially responsible investing, and the research analysts and commercial investors from their investing arm. Together, they go through a six-month “pathfinder” exercise: first, asking, “What is the problem we’re trying to solve?” and then looking at all the paths possible to reach the desired goal.
• Ask: “What is the problem I am trying to solve?” Then explore and deploy the many tools with which your goal can be achieved, from traditional grants to social impact investing • Your vocal advocacy, knowledge and advice, along with your patient, long-term attention, are extremely valuable to causes, organizations and social entrepreneurs
JESSE AND BETSY FINK 63
Commit to a cause—
and identify ways to create impact JON AND MINDY GRAY The Basser Center for BRCA at the University of Pennsylvania Harlem Village Academies in New York UNITED STAT E S • The Grays graduate from the
When Mindy Gray lost her older sister, Faith Basser, to ovarian cancer in 2002, she became actively involved in the fight against cancer and joined the board of the Ovarian Cancer Research Fund.
University of Pennsylvania. Mr. Gray
“It was an unthinkable loss,” says Ms. Gray, who became
joins Blackstone (1992)
determined to spare others.
• The couple marries (1995) • Ms. Gray is 32 when her sister, Faith Basser, dies of ovarian cancer at age 44 (2002)
Once she gained experience in the field, Ms. Gray—with her husband, Jon Gray, global head of real estate and a board director at Blackstone—set the ambitious goal of eliminating cancers linked to mutations of the BRCA1 and BRCA2 genes.
• Ms. Gray joins the board of the Ovarian Cancer Research Fund (2004) • Mr. Gray joins the board of Harlem Village Academies (2007), becomes
Research suggests that women with these mutations have up to a 45% lifetime risk of developing ovarian cancer and up to an 80% risk of developing breast cancer.
chairman (2012) • Basser Center for BRCA is launched at
“The mutations are cruel,” says Ms. Gray. “They allow you to
the University of Pennsylvania with a
survive into your 40s. They let you have children. Then they
$25 million gift from Mr. and Ms. Gray
click in.” When Ms. Gray’s sister, Faith, passed away, she was
(2012) and $5 million added for
44 years old and the mother of a four-year-old.
external BRCA-related grants (2013)
After almost a decade of giving under the radar, the Grays in 2012 chose to significantly augment their giving and become more public about their areas of interest: cancer and education. And they looked for ways they could move the needle most.
CREATING A MEDICAL HUB In the fight against cancer, the Grays’ approach has been unusual in that they helped build a new paradigm for research.
In addition to research, the Basser Center facilitates ongoing learning and networking opportunities for experts through seminars, conferences and an annual symposium. As part of a medical facility, it offers patient care, access
“There were different places doing different
to clinical trials, genetic counseling, information
kinds of research, but there wasn’t a central hub,”
Ms. Gray explains. As links between BRCA genetic mutations and cancer became better understood,
To date, the Grays have contributed $30 million
Ms. Gray felt it was time for coordinated research.
to the Basser Center’s work. This includes a $5 million gift the Grays gave in 2013 to fund
The Grays turned to the University of Pennsylvania
external grants around the globe. The Grays
and proposed what ultimately became the Basser
want the Basser Center to act as a beacon,
Center for BRCA, named after Ms. Gray’s sister
attracting the best talent to the best facilities,
and focused exclusively on BRCA1- and BRCA2-
where research can be extended and findings
can be put directly into clinical practice. This
RESEARCH SUGGESTS THAT
UP TO 45% OF WOMEN
WITH BRCA1 AND BRCA2 MUTATIONS MAY DEVELOP
UP TO 80% MAY DEVELOP
” HOMOLOGOUS HOPE”—A 15-foot sculpture by artist Mara G. Haseltine hangs outside the Basser Center and shows how a healthy cell repairs DNA.
JON AND MINDY GRAY 65
approach, Mr. Gray believes, reflects new patterns in both philanthropy and the fight against cancer: •C ancer—“Genetic science is providing insights
“You really want to be smart and strategic about your partners, your goals and your mission.”
into the causes of cancer and requiring increased research specialization,” he says. “Because specialist facilities are expensive, large donations by individual philanthropists are critical” •P hilanthropy—Donors are increasingly hands-on
Their own commitment will surely be tested. One challenge faced by those investing in scientific research is that results can be hard to measure, and a major breakthrough can take years to achieve. But, say the Grays,
with the organizations they fund. The Grays
a breakthrough in the fight against cancer is
helped select Dr. Susan Domchek to lead the
a prize worth waiting for.
Basser Center. She is an expert in the field of genetic cancers affecting women, a breast cancer oncologist, and the Basser Professor in Oncology at Penn Medicine’s Abramson Cancer Center. “You really want to be smart and strategic about your partners, your goals and your mission,” says Ms. Gray, who chairs the Basser Center’s Leadership Council and has launched a new capital campaign The Grays’ two key learnings from their work with the Basser Center are that philanthropists should: 1. Identify a clear mission 2. Find partners who share their vision and can deliver it day-to-day “We want to be engaged, but we don’t want to micromanage,” says Mr. Gray. “Dr. Domchek is the leader, and she has absolute commitment to the mission.”
EDUCATION—The Grays help support a network of five charter schools in New York City.
In 2012, the Grays donated $10 million to buy a building on West 124th Street to house a new HVA elementary school for 515 pupils. They helped raise another $15 million to refurbish the property. The Grays’ passion for education stems from their parents and is something they want to pass on to their children. “My father would have sold the shirt off his back to get his kids a great education. There is no better gift in life; it brings employment opportunities, independence and
OLUNTEERING—A woman gives her time to the Harlem Village V Academies.
health,” Ms. Gray says. Time spent volunteering with their daughters has been valuable family time, Mr. Gray adds,
INVESTING IN EDUCATION “It is arguably easier to monitor the impact of philanthropic dollars in education, where the number of students, test scores and college enrollment are all good indicators of progress,” says Mr. Gray.
especially as his career has been so demanding. “In our lives and as a family, our highest return on investment has been in charitable activities,” says Mr. Gray. “The more you can be engaged as a couple and get your children engaged, the more rewarding your giving is. We want to make
Mr. Gray is chairman of the board of Harlem
a difference, and it is a huge part of our lives.”
Village Academies (HVA), a network of five charter schools, where Ms. Gray mentors high school students. The Grays became involved because they wanted all children growing up in Manhattan to have similar opportunities to their own children.
• Having a clear mission helps you to identify partners and work together toward a shared goal
“You find things you really believe in and then
• Hands-on giving and volunteering are personally rewarding and create valuable family experiences
you dig deeply, you dive in really deeply where you’re not just a financial contributor, but you’re also actively involved in helping to shape the mission,” says Mr. Gray.
• Impact can be hard to measure in some fields, but that shouldn’t detract from working toward achieving your goal
JON AND MINDY GRAY 67
A foundation isn’t always needed to
pursue common philanthropic goals KUEHNER FAMILY UNITED STAT E S • Carl Kuehner, Sr., founds Building and Land Technology in Connecticut (1982) • Carl Kuehner, Jr., and Paul Kuehner start
Many families strive to work together toward philanthropic goals. The Kuehners have a unique twist on family philanthropy. They believe having independent philanthropic outlets strengthens their core.
working for their father’s business while still in college (1983) • Carl Sr. and his wife, JoAnne, visit Haiti with AmeriCares (1989) • Carl Sr. and JoAnne move to Florida and found Hope for Haiti (1989) • Opening of the Carl J. Kuehner Community Center for the Immokalee Housing and Family Services organization in Florida (2008) • Carl Jr. donates $5 million of real estate to relocate the Waterside School in Connecticut (2010)
“We tried to set up a family structure,” says patriarch Carl Kuehner, Sr. “But what we have found is that individual involvement is more efficient.” The actively philanthropic Kuehners now span three generations, with seven adults: In addition to Carl Sr., there is his wife, JoAnne; their four children, Carl Jr., Paul, Kurt and Kimberly; and the younger Carl’s daughter, Tiffany. Each sits on different boards and works with different nonprofits. But what they learn, they share. And when they pull together, the Kuehners are a force.
• Paul joins the board of AmeriCares (2010) • The Kuehner family mobilizes $30 million of aid to Haiti (2010) • Tiffany Kuehner takes over as president and CEO of Hope for Haiti (2011)
ALL FOR HAITI When an earthquake devastated Haiti in January 2010, for example, the Kuehners sprang into action. The family has strong ties to Haiti. In 1989, matriarch JoAnne Kuehner founded Hope for Haiti after she and her husband, Carl Sr., first visited the country on a trip organized by AmeriCares (a global health organization for which she was serving as a board member).
RAPID RESPONSE TO EARTHQUAKE DEVASTATION: WITHIN
THE KUEHNERS SHIPPED ABOUT
$30 MILLION OF EMERGENCY AID TO HAITI
OPE FOR HAITI— H Tiffany Kuehner with a young Haitian girl.
Immediately after the earthquake, Carl Jr. secured
founded Building and Land Technology in
access to two Boeing 757 jets, the family filled the
Stamford, Connecticut, just 12 years earlier
planes with emergency supplies, and the jets flew
into Haiti with Carl Jr. and his daughter, Tiffany, on board. Tiffany’s husband, Mike, was already on the
The family came together again more recently
ground in Haiti organizing trucks to move the
when hurricanes threatened one of the Hope
supplies where needed. In six months, they shipped
for Haiti communities as a river bank eroded.
over $30 million of emergency aid to the island.
Tiffany Kuehner, now president and CEO of the organization, tried to relocate the school and other local buildings. However, with quotes
“We are independent in business, in life and in philanthropy, but we can also come together to leverage our different skills.”
coming in at more than $500,000, the project was untenable. Tiffany’s uncles stepped in with a plan to divert the river at a cost of just $25,000. “We have a problem-solving mentality,” explains Carl Jr. “Everyone is a strong entrepreneur. We are independent in business, in life and in
It was also in 1990 that the elder Kuehners’
philanthropy, but we can also come together
sons Carl Jr. and Paul took over the family’s
to leverage our different skills.”
real estate development business. Carl Sr. had
KUEHNER FAMILY 69
SEPARATELY TOGETHER When the Kuehners are not working together on a specific project, their philanthropic interests span a variety of areas.
At the heart of the neighborhood is the Carl J. Kuehner Community Center, which opened its doors in 2008. Paul sits on the board of AmeriCares. His
Under JoAnne’s leadership, Hope for Haiti
brother, Carl Jr., has been involved in a
grew to serve 500,000 children and their
number of community building projects in
families each year, providing education, basic
Connecticut, notably donating $5 million to
healthcare and nutrition. Tiffany has now
provide the Waterside School with a permanent
taken over that work and is driving a range
of sustainable development initiatives. “Our parents raised us to understand that Meanwhile, Carl Sr. actively supports the
to those to whom much is given, much is
Immokalee Housing and Family Services
expected,” says Paul. “Mother has the passion
organization, providing affordable housing
and father is the engineer. It is a very powerful
to farm families in Immokalee, Florida.
F ATHER’S FOCUS—After moving to Florida, Carl Kuehner, Sr., became very involved in providing affordable housing to farm families in Immokalee, which means “my home” in Seminole.
IN 2011, THE KUEHNERS HELD A
“BIG GIVE” FAMILY EVENT, DIVIDING 20 FAMILY MEMBERS IN TWO TEAMS, EACH WITH
$5,000 TO GIVE AWAY IN A SINGLE DAY IN SCRANTON, PENNSYLVANIA
“BIG GIVE” FAMILY EVENT Passing on that passion and capacity for philanthropy to the next generation—as well as to the extended family—has also become something of a Kuehner family mission. For this challenge, they may not have a formal structure, but they certainly have fun.
“It was goofy, but it got everybody engaged,” Paul says. “You have to lead by example; you cannot just philosophize,” adds his father. “Go and do the work and make the family aware of it. Seeing that you are doing it is more important than any philosophy.”
In 2011, they organized a “Big Give” family event. Twenty family members divided into two teams, each with a minibus and $5,000 to give away in a single day in the community of Scranton, Pennsylvania, where JoAnne and Carl Sr. grew up. The race took family members into the heart of the community, where they gave small gifts to those who looked in need of a helping hand, or where there was some family significance to the gift. The event brightened the day for senior
• If families share a passion for philanthropy, they don’t necessarily need a formal structure to enable them to give together • Families can learn from different organizations and share their experiences • Leading by example—and having fun—helps to get each generation engaged
citizens, volunteer fundraisers, golfers and shoppers alike.
KUEHNER FAMILY 71
Supporting young leaders
to make the world a better place
LAURA LAUDER Laura and Gary Lauder Family Venture Philanthropy Fund
In 1986, a young executive named Laura Heller made her first gift
UNITED STAT E S
of $5,000 to the UJA-Federation, a Jewish relief organization. It
•M ade her first gift of $5,000 to the UJA-Federation, an organization that cares for Jewish people in need (1986) • E stablished her own donor-advised fund at the Jewish Community Endowment Fund (1991) • J oined Lauder Partners, the Lauder family venture capital firm (1992)
was 10% of her net earnings as a software sales representative and marked the start of her philanthropic career. Ms. Heller had grown up with the Jewish tradition of tzedakah, the Jewish law requiring individuals to dedicate one-tenth of their incomes to promoting social justice. Her grandfather, Paul Heller, was president of the Jewish Welfare Society in their hometown in Ohio, and had petitioned American Jews to support the creation of a Jewish state during World War II.
• Married Gary Lauder (1994) • C o-founded the Laura and Gary Lauder Philanthropic Fund (1995) • C o-founded the Socrates Society at the Aspen Institute (1996)
In 1991, she met Gary Lauder, a grandson of Estée Lauder, the famous American businesswoman. A year later, Ms. Heller joined Gary at Lauder Partners, a venture capital operation focused on technology investing in Silicon Valley. In 1994, she and Gary married.
• Co-founded DeLeT, a Jewish teacher-training program (2002) •H ired an organizational consultant to
Gary Lauder’s family was also steeped in the Jewish philanthropic tradition. His father, Leonard Lauder, ran the family’s company for
review previous 10 years of giving,
nearly 55 years, and is now chairman emeritus. Leonard Lauder
which resulted in an increased focus
also chairs the Alzheimer’s Drug Discovery Foundation and serves
on high-impact activities (2005) • S erves on 13 boards, including the Aspen Institute and the National Constitution Center in Philadelphia, and is vice chair of the $2 billion Jewish Community Endowment Fund of San Francisco
as trustee of the Aspen Institute, a Washington, D.C.–based policy and research organization. Gary’s late mother, Evelyn Lauder, co-founded the Breast Cancer Research Foundation.
A year after marrying, the Lauders established the
“To catalyze progress, start with networking young
Laura and Gary Lauder Philanthropic Fund and
leaders who are determined to change the world,”
embarked on their own mission of tikkun olam.
says Ms. Lauder. That’s the purpose of the Socrates
This Hebrew phrase describes the Jewish belief
Program—over 5,000 young leaders aged 25–45
that it is humanity’s shared responsibility to
have participated in these seminars that focus on
heal, repair and transform the world.
the most compelling issues of the day.
“Our faith encourages us to repair the world
Over time, Ms. Lauder has refined her philanthropy,
by helping others,” explains Ms. Lauder,
using more venture capital techniques.
adding: “Bringing innovative, transformative philanthropy to intractable problems demands
In 2001, Ms. Lauder saw that Teach For America
great leadership. Jewish values provide fertile
was growing and attracting bright college
soil for great leaders to grow.”
graduates. The Lauders’ children attended Jewish schools in California’s Palo Alto area, and Ms. Lauder saw a significant shortage of great
VENTURE CAPITALISTS, VENTURE PHILANTHROPISTS The couple aimed to strengthen the fabric of society by initiating projects that developed strong leaders in the Jewish and general communities. The Lauders' first project together was the Socrates Program at the Aspen Institute, which they founded in 1996 to develop young minds.
teacher-leaders in the U.S. Jewish day schools.
“To catalyze progress, start with networking young leaders who are determined to change the world.”
THE SOCRATES PROGRAM HAS PROVIDED A FORUM FOR OVER
5,000 YOUNG LEADERS (AGED 25–45)
TO EXPLORE CONTEMPORARY ISSUES © Matej Kastelic/Shutterstock
LAURA LAUDER 73
“Our mistake was that we were giving small amounts to many; the total was millions of dollars, but those grants weren’t having an impact.” This strategy of seed funding a program, engaging like-minded philanthropists to bring it to scale and ensuring an “exit strategy” so she can move on to develop other programs, has been key to Ms. Lauder’s work. She is currently using this model to expand two programs: • The Jewish Teen Foundation Board Incubator, based on giving circles, is a national initiative
T O BE EFFECTIVE—Laura Lauder has refined her strategies and the number of initiatives/organizations she supports.
where Ms. Lauder has partnered with the Maimonides Fund to roll out the program in major cities in the United States and Australia.
Having funded initial research to determine how
• The Franklin Project of the Aspen Institute
to develop a successful teacher-training program,
envisions a future in which a year of full-time
she engaged 12 other philanthropists to establish
national service is a cultural expectation,
DeLeT, a Jewish “Teach For America”–type program
common opportunity and civic rite of passage
at two universities.
for every young American.
As in traditional “seed” and “A” rounds, the funding was offered in two, three-year cycles. The first round created, tested and launched the curriculum; the second supported the program while the universities found independent sources to continue the courses.
FOCUSED GIVING In 2005, Ms. Lauder sought to further increase her philanthropic impact with another important refinement: She dramatically reduced the number of organizations she supported from 400 to just 40.
This shift was particularly challenging for a
When their children became bar/bat mitzvah at
philanthropist whose giving was so community
age 13, the Lauders requested that, in lieu of
driven. But in 2005, an accounting showed of the
gifts, friends and family consider making a small
1,100 grants the Lauders had made since their
donation to help nonprofits that the children
fund’s inception, 70% were in amounts less than
would select through their own philanthropic
$1,000. “Our mistake was that we were giving
funds; then, over the ensuing five years, the
small amounts to many; the total was millions
family would match the children’s contributions
of dollars, but those grants weren’t having an
to a family pool. Using a “venture philanthropy
impact,” says Ms. Lauder.
process,” the children would then make the decisions to allocate the funds to four to six
Instead, Ms. Lauder initiated an extensive
nonprofits focused on a specific issue-area.
strategic planning process that resulted in defining a clear theory of change and a specific mission
The aim, Ms. Lauder says, was to help their
statement to focus her giving. Today, 70% of her
children find their own philanthropic passions,
philanthropy goes to the five key initiatives she
and that everyone must find their unique approach.
started or to the seven organizations on whose
For some, this will be a full-time commitment to
boards she serves. For special occasions and to
innovate and create new ventures; others will be
respond to friends’ requests, she also created a
supporters and funders. Ms. Lauder’s approach is
“relationship bucket” to continue making smaller
a combination of the two.
gifts, representing 10% of her total annual giving. “I applaud all approaches,” says Ms. Lauder. “To make the world a better place, we each have to find
CONTINUING THE TRADITION For all the application of modern business practices to their philanthropy, the Lauders are raising their two children, Josh and Eliana, in the tradition of tzedakah, or charitable giving. Ms. Lauder, a working mother, devotes half her time to philanthropic activities, setting an important example for her children of tikkun olam in action. “We cannot just write checks, because we also need to teach our children that the responsibility of our good fortune is to actively help others,” she says.
a way to make philanthropy part of our daily lives.”
• The pressing issues of today require leadership and social cohesion • Everyone should find a way to fit philanthropy into their lives—every amount makes a difference • Giving strengthens the values of communities, which in turn strengthen wider society
LAURA LAUDER 75
To achieve change, all engines—
LAURENCE LIEN Lien Foundation SIN GAPO R E
NGOs, government and the private sector—need to be firing
• Started his 14-year career in the Singapore Administrative Service, including roles as director of both Economic Programmes and
Laurence Lien is a philosopher, practitioner and promoter of
Governance & Investment at the
what he calls “radical philanthropy”—tackling social problems
Ministry of Finance, and the director
by empowering NGOs and encouraging governments to adopt
of Family Policy and Strategic Policy
new ways to change the status quo.
and Research at the Ministry of Community Development (1994–2008) •A ppointed to the board of the Lien Foundation (2002). Appointed as chairman of the Lien Foundation (2009) • C EO of the National Volunteer &
His ideas developed during years spent in senior policy positions with the Singapore Administrative Service. Exposed there to new thinking about social entrepreneurship and venture philanthropy, Mr. Lien says he was “excited” about how to apply these innovations in Singapore.
Philanthropy Centre (2008–2014) •A warded an Eisenhower Fellowship, a
One challenge, he felt, is that the Singaporean government
program in support of young leaders
is the main change agent for social issues, and, he notes,
promoting global dialogue and
“No matter how forward-looking any government may be, it
often does not take the risks necessary to find new, more
•A ppointed as nominated member of
parliament in Singapore (2012–2014)
Moreover, the government’s dominance as a funder meant NGOs were accustomed to simply carrying out orders. “If you are a vendor, you are simply delivering services; you are not devising better ways to tackle the underlying problem,” Mr. Lien says.
CAMPAIGN APPROACH TO SPOTLIGHT
TO RALLY SUPPORT, ATTENTION, FUNDING AND ACTION
© View Stock/Offset.com (left) © avarand/Shutterstock (middle)
LAURENCE LIEN HAS DEVELOPED A
Asia’s giving culture presented yet another
Lien Ying Chow made this request one year after
challenge, he says. “There is a view that your
his Overseas Union Bank merged with another
role as a philanthropist is to write checks,
major Chinese bank in a $7.8 billion deal. Lien
that asking too many questions would not
Ying Chow also was the co-founder of Nanyang
be appreciated by charities.”
University in Singapore and a civic leader with close government ties.
Singapore needed a new model, Mr. Lien concluded, one in which private philanthropists
“When your grandfather asks you to do something,
piloted social innovations, thereby providing
you don’t say ‘no,’” jokes the younger Mr. Lien.1
government with new solutions and different ways to tackle longstanding challenges. So, when
The first step Mr. Lien took to implement radical
the opportunity presented itself, Mr. Lien put
philanthropy was to convince fellow board
what he calls his foundation’s theory of “radical
members to concentrate the foundation’s giving
philanthropy” into practice.
in key areas: education, care of the elderly, and the environment—all areas of specific need in Singapore and in the region.
TAKING THE REINS In 2002, at age 32, Mr. Lien was asked to join the board of his family’s foundation by its founder—his grandfather and the family patriarch, Lien Ying Chow.
Next, he looked for local NGOs with whom to partner. His foundation wrote to 40, asking for grant applications. Only 15 responded, and several said they didn’t need funding.
In 2004, Mr. Lien’s grandfather passed away. In 2009, Mr. Lien became chairman of the family foundation. LAURENCE LIEN 77
“If you really want results, you should bet heavily on the initiatives about which you feel convinced. Work on a larger scale and think about how best to be a change maker.”
CAMPAIGNING In 2006, the foundation launched the “Life before Death Campaign” to create public awareness about elderly care issues in Singapore. By 2010, the campaign had become a global multimedia effort, complete with art, photography and social media. More than 730 international artists created designer “Happy Coffins,” which were put
“Something is very wrong when NGOs have no
on display in public places to challenge
interest in money being offered, for today or the
social taboos surrounding death.
future,” says Mr. Lien. The response reinforced his view that NGOs in Singapore were lacking in
The foundation also funded the Economist
ambition and mission-orientation, or had neither
Intelligence Unit to produce a global Quality
the time nor the capacity to receive strategic gifts.
of Death Index, examining the quality of care for the elderly in 40 countries.
In 2005, Mr. Lien took another major step: “We were the first grantmaking foundation in
This campaigning strategy has since been
Singapore to hire professional program staff.
repeated for pre-school education, water and
This made a world of difference, particularly
sanitation, helping to make the foundation a
as we were fortunate to have a very talented
point of contact for NGOs seeking a strategic
partner and advocate in these areas.
He had his foundation take the lead by spotlighting issues he wanted to support. The results have been dramatic. TO FILL A GAP, MR. LIEN HELPED FUND SINGAPORE’S FIRST RESEARCH AND EDUCATION
CENTER FOR SPECIALIZED CARE IN 2008
To help pre-schoolers, the Lien Foundation has partnered with such groups as the Young Women's Christian Association (YWCA), the Young Women's Muslim Association (YWMA), KK Women’s and Children’s Hospital, PAP Community Foundation and the Ngee Ann Polytechnic. Projects have
SPREADING THE WORD “If you really want results,” says Mr. Lien, “you should bet heavily on the initiatives about which you feel convinced. Work on a larger scale, collaborate intensively and think about how best to be a change maker.”
included funding programs to: Mr. Lien’s message is getting out. He was • Provide tools that help teachers engage children with technology
rewarded with a presidential appointment to become a nominated member of parliament in 2012. The 2.5-year appointment provided him
• Identify and support children with developmental needs • Help children with learning disabilities enter the mainstream • Encourage teachers to collaborate and learn from each other Where there are gaps in the services local NGOs provide, the foundation looks to create new ventures—not as an operational foundation, but as a funding partner.
with a public platform, and he feels there is now “an appreciation that things need to change in Singapore.” Still, there is much more work to do. He has started the Asia Philanthropy Circle to mobilize philanthropists from around the region to learn, exchange and work together. To fully achieve change, “we need all our engines firing,” says Mr. Lien. “The government needs to be prompted to try new solutions. NGOs need to invest in innovation, and philanthropists should become agents of change.”
For example, the first research and education center in Singapore that focused on specialized medical care was the Lien Centre for Palliative Care, founded in 2008 with the Duke-NUS Graduate Medical School. To generate greater momentum for its radical philanthropy agenda, the foundation in 2006 created the Lien Centre for Social Innovation with the Singapore Management School to undertake research and promote collaboration among the public, people and private sectors.
• Focus your resources on empowering those with the capacity to make change happen • E ffective philanthropy requires you to focus on fewer areas, dialing up your support as you become convinced of the power of certain projects to change lives • To create that focus, you need to find the intersection between what you are passionate about and what society needs
LAURENCE LIEN 79
Focus where you have knowledge, and
your voice carries weight
KATHERINE LORENZ Cynthia and George Mitchell Foundation
Katherine Lorenz has one of the most challenging—and
UNITED STAT E S
exciting—jobs in philanthropy.
• Began volunteering in Latin America
The 36-year-old’s extended family elected her to head their
foundation in 2011. That has meant she is tasked with:
• Co-founded Puente a la Salud Comunitaria in Oaxaca, an organization
• Harmonizing the voices of many family members
focused on food sovereignty to advance the health of rural communities in Mexico (2003) • George Mitchell began to formally involve his 10 children and growing number of grandchildren (2004) in the foundation he established with his wife (1978) • Joined the Institute for Philanthropy as deputy director (2009) • Became president and treasurer of the Cynthia and George Mitchell Foundation (2011)
• Ramping up the foundation, which currently has about $110 million in assets and will soon receive an additional $750 million •A djusting the foundation to meet the challenges of the 21st century Ms. Lorenz heads the Cynthia and George Mitchell Foundation, established in 1978 by her grandparents. Funding for the Mitchell foundation—long involved in promoting sustainability— comes from the “father of fracking,” George P. Mitchell. In 2011, when Mr. Mitchell died at age 94, The Economist magazine eulogized him as “the unlikely environmental warrior.” “We find ourselves in the middle of debates about the environment, given my grandfather’s history of both funding sustainability issues for 40-plus years and pioneering the technology that is transforming the energy landscape,” says Ms. Lorenz.
Photo credit: Benjamin Norman/ The New York Times/Redux
© Peter Adams/Offset.com
LONG-TERM VISION—The Cynthia and George Mitchell Foundation is seeking innovative, sustainable solutions to environmental issues.
But that is exactly where the Mitchell family has
Mr. Mitchell did not shy away from the
decided their foundation should concentrate its
controversy surrounding fracking and the
efforts and the nearly $1 billion Mr. Mitchell’s
challenge of humans and nature coexisting
bequest recently added to it.
in a market-driven economy. The oilman was an early advocate of environmentally
The environment in general and energy in
friendly growth, campaigned for tight
particular, says Ms. Lorenz, “are where we
government regulation of fracking, criticized
have specialized knowledge, our voice carries
the environmental movement for not going
the most weight, and we have the potential
far enough, and deployed his philanthropic
to have the greatest impact.”
dollars to promote science and sustainability.
OILMAN AND ENVIRONMENTALIST Ms. Lorenz’s grandfather, credited as the pioneer of commercial fracking, started Mitchell Energy & Development, an oil and gas company that was sold to Devon Energy in 2002 for $3.5 billion.
Since Cynthia and George Mitchell began giving, both individually and through their foundation, more than $400 million of the Mitchell fortune has gone to charitable causes, including significant gifts to the National Academy of Sciences in 1996 and 2001, both to fund the academic study of sustainability science.
KATHERINE LORENZ 81
quickly as possible.”
SECOND AND THIRD GENERATIONS GET INVOLVED Although Ms. Lorenz is only a few years into her tenure as head of the Mitchell Foundation, she already is helping to prove that a new generation can effectively take over and lead a large private foundation.
Like her grandfather, Ms. Lorenz believes that
In 2004, her grandparents first allowed their
innovation combined with effective regulation
10 children and any grandchildren 25 years or older
is the best way to transition to cleaner energy
to participate in the foundation’s strategic planning
sources. Like him, she also believes that to
process. In 2009, Cynthia Mitchell passed away.
create lasting change, you must focus on the
Four years later, Mr. Mitchell passed as well.
“We feel very strongly that moving from coal to gas is the right move for the world—but that it is only a first step,” says Ms. Lorenz. “We also feel very strongly that we should not get stuck there, that we should use this time to continue to move toward more renewable sources of energy as
system. And, as he did, she promotes initiatives aimed at increasing the scientific understanding
Now the second generation occupies eight
of underlying issues and advocacy.
of the 12 board seats; the third generation, 25 members strong, has four board seats.
But, unlike her grandfather, Ms. Lorenz is talking about climate change. “My grandfather didn’t
The family brought in advisors to help them
think in terms of climate change” because that
refine the foundation’s objectives, which helped
is a relatively new understanding and focus, she
the board decide to increase its focus on
explains. “But he did believe that if you throw
off an environmental system, then it will not be able to support people and lives.”
Now, Ms. Lorenz has the gravitas to lead this effort, in part due to her years of strong experience in the social sector.
Indeed, she describes her career as coming
Katherine Lorenz is also deeply involved in the greater nonprofit community. She is:
full circle. Ms. Lorenz began in international
•A board member of the Environmental Defense Fund, the Philanthropy Workshop (chair), National Center for Family Philanthropy, Puente a la Salud Comunitaria, Exponent Philanthropy and the Endowment for Regional Sustainability Science
she co-founded Puente a la Salud Comunitaria,
• A member of the Global Philanthropists Circle of the Synergos Institute
development working in Latin America, where an organization focused on food security, nutrition and health issues in Mexico.
“For most of the world’s population, the diet is directly connected to the land—what you can grow is what you can eat. So, if you don’t address climate problems, then people’s lives are at risk.” Her active exploration of the role of philanthropists and philanthropy has continued. Before joining the family foundation, Ms. Lorenz served as deputy
L ONG-TERM VISION—Katherine Lorenz is committed to learning how to make lasting, positive change through field visits, research, peer discussions and skills-building sessions around the world.
director of the Institute for Philanthropy, which focuses on educating and networking philanthropists in strategic, purpose-driven change. “As a donor, if you focus on a few things and
There, she came to believe that poverty, rural development and climate change are interrelated problems that require a holistic solution. “For most of the world’s population,” she says, “the diet is directly connected to the land—what you can grow is what you can eat.
give it your all—your time, your connections and your financial resources—you learn more and it becomes exciting to feel change happening,” says Ms. Lorenz. “I have seen the power of strategic philanthropy—targeted focus and strategic investment can really change the world.”
So, if you don’t address climate problems, then people’s lives are at risk.” Ms. Lorenz’s work in Mexico also began her investigation into what makes for effective strategic philanthropy. Seeking to solve the larger issues of children’s malnutrition and sustainability, Puente a la Salud Comunitaria started by focusing on the seemingly narrow task of helping rural communities cultivate the highly nutritious grain amaranth.
• The world’s most critical challenges—international development and climate change—are interconnected. Philanthropic efforts need to focus on creating systemic change • As an individual, you need to identify where and how your voice carries the most weight, and focus on those issues • Working in dialogue with other philanthropists helps to connect each focused activity into a system KATHERINE LORENZ 83
A young philanthropist
engages his peers to fight poverty in the Bay Area
Tipping Point Community UNITED STAT E S •O n graduating from Duke University, Mr. Lurie went to work for Senator Bill Bradley’s presidential campaign ( 2000) •M r. Lurie began work at the Robin Hood Foundation in New York City (2001)
Daniel Lurie passionately believes that San Francisco has a proud culture of philanthropy, and he is hard at work helping the Bay Area’s new generation of entrepreneurs to not only perpetuate this tradition of giving, but to reinvent it, as well.
• F ounded Tipping Point Community (2005), where he serves as CEO •W on the California Prize for Service and
As the stepson of Peter Haas, former CEO and chairman of the iconic jeans brand Levi Strauss & Co.,
the Common Good from the University of
Mr. Lurie grew up with a family that actively practiced
San Francisco (2011)
social responsibility. When the San Francisco earthquake of 1906 devastated the city, Mr. Lurie’s step-great-grandfather and his family kept staff on full pay while the factory was rebuilt. Since then, Mr. Lurie’s step-grandfather, father and uncle have championed civil rights, gay rights and the rights of international factory workers.
IN THE BAY AREA,
1.3 MILLION INDIVIDUALS
ARE UNABLE TO MEET THEIR BASIC NEEDS WITHOUT GOVERNMENT SUBSIDIES
His stepfather was also involved with multiple
One in five people in the Bay Area—1.3 million
civic and charitable organizations in and around
individuals—are unable to meet their basic
San Francisco. Meanwhile, his father, Brian Lurie,
needs without government subsidies.1
ran the Jewish Community Federation for 17 years. Since 2005, Tipping Point has raised more A product of this upbringing, Mr. Lurie says
than $80 million to help nearly 465,000 people
he wants to help a new generation engage in
graduate from high school, enter the workforce
solving social problems. Business leaders have
with new jobs, receive emergency and transitional
an obligation to give back, the Bay Area is in
housing, and visit health clinics.
the midst of a tech “gold rush,” and “if we don’t get these young technology leaders involved in their community, it would be a missed opportunity,” he says. In 2005, when Mr. Lurie was 28 years old, he founded Tipping Point Community—a fundraising organization with a straightforward mission: to eradicate poverty in the Bay Area.
Business leaders have an obligation to give back, the Bay Area is in the midst of a tech “gold rush,” and “if we don’t get these young technology leaders involved in their community, it would be a missed opportunity.”
http://www.selfsufficiencystandard.org/standard.html#whatis. DANIEL LURIE 85
To achieve these benefits, Mr. Lurie, CEO of Tipping Point, employs four key strategies.
Tipping Point is specifically structured so that it faces the same pressure for accountability as other NGOs, despite some very high-powered backing. Its founding board members include Katie Schwab Paige, trustee of the Schwab Family Foundation and daughter of Charles and Helen Schwab; Chris James, founder of the Partner Fund Management hedge fund; and National Football League Hall of Famer Ronnie Lott. The board now counts 23 senior business leaders, including Tony Bates, former CEO of Microsoft. Mr. Lurie and the board fund the operating and fundraising costs of Tipping Point so that 100% of the donations it receives can go directly to frontline organizations. Each year, Mr. Lurie sets a fundraising goal, and each year, the money is spent. “We don’t have an endowment,” Mr. Lurie explains. “Every year, we have to go back to our funders and present the work we have done. We don’t get to rest on our laurels.” With accountability running through the core of Tipping Point and its grantee organizations, it is little wonder that funders are a Who’s Who of the local tech and finance heavyweights.
PARTNERING FOR IMPACT
Tipping Point acts as a fundraiser and grantmaker. The organization carefully identifies NGOs that are having the greatest impact on poverty in the Bay Area. “Tipping Point’s funders—entrepreneurs, tech leaders, etc.—need to know their dollars are well spent,” says Mr. Lurie. Its portfolio covers four areas: education and youth, employment, family wellness and housing. Across these areas, Tipping Point funded 46 organizations in 2013 with a total budget of $13.7 million. For 2014, Mr. Lurie’s target was $21 million. Funds are raised in one-on-one meetings, group meetings and events. In May 2014, Tipping Point Community’s eighth annual benefit was hosted by Bay Area glitterati on Pier 48 for 1,200 guests. It featured a four-ton robot projecting a light show of the running total of funds pledged, and got the organization well on its way to the year’s goal by raising $12 million.
TIPPING POINT COMMUNITY’S
8TH ANNUAL BENEFIT RAISED
TO HELP BAY AREA PEOPLE IN NEED
© Nina Mingioni/Offset.com
RALLYING HIS PEERS—Daniel Lurie addresses attendees at the Tipping Point benefit.
PUTTING OUR CAPABILITIES TO WORK
Tipping Point focuses on what NGOs need to make them as efficient and accountable as possible. For example, says Mr. Lurie, many organizations lack the know-how to access cutting-edge technology. That is why Tipping Point mobilizes the local business community’s technology and skills. In 2013, that amounted to more than $2.4 million in technology, infrastructure and professional services. “We are committed to building a data-driven culture at our [recipient] organizations,” Mr. Lurie says. Effective data and client management tools are key for enabling these groups to track people post-intervention. To see whether people are actually being lifted out of poverty, he says, it is critical to know how much they earn in new jobs and whether they keep these jobs.
Tipping Point supports unrestricted funding so organizations can spend on what they see as essential infrastructure. “Obviously, you need to do your due diligence and make sure there is oversight and accountability,” says Mr. Lurie, “but there also has to be a partnership.” If you have found a great organization with a great leader, you need to trust his or her judgment to use your dollars wisely, he says, adding: “You wouldn’t invest in Google and say they could only use your money on the search function.”
• There must be a partnership between funders and the organizations they support. Nonprofits need to demonstrate accountability, and funders need to help them maximize their potential • Business leadership and success come with the responsibility to support the wider community. Inequality of income and opportunity is the responsibility of all DANIEL LURIE 87
Enterprises that achieve
a social good can be self-sustaining LETIZIA MORATTI San Patrignano Community I TALY • Co-founder of the San Patrignano
When she served as Italy’s Minister of Education and again as Milan’s mayor, Letizia Moratti was able to see firsthand the gap between sharp social needs and the public purse.
Foundation • Businesswoman who worked in
In the three years since leaving public office, Ms. Moratti
insurance and telecommunications,
has increased the time she devotes to developing new models
becoming president of the Italian state
of social enterprise and innovative ways to channel funding
television company, RAI (1994–1996), and chairwoman of News Corp Europe (1998)
to social causes. On the international and national stage, this has meant:
• Minister of Education, Universities and Research for Italy (2001–2006) • Mayor of Milan (2006–2011) • President of the Ethics Committee of the Guarantors—Microfinance National Institution and San Patrignano Foundation (2012) • Member of the Italian Advisory Board—G8 Social Impact Investment Task Force • Married to Gianmarco Moratti, the Italian oil magnate, and mother of two
• S erving as a member of the Italian Advisory Board for the G8 Social Impact Investment Task Force •W orking with the Italian government to modify the law on social enterprise •P artnering with Bocconi University School of Economics in Milan, Accenture and Banca Prossima to organize a training program for microcredit providers on how to manage relationships with microcredit beneficiaries
But the particular cause to which Ms. Moratti
Vincenzo Muccioli was bringing drug addicts
has dedicated herself for nearly 40 years is
into his home to help them kick their habits.
San Patrignano—a drug rehabilitation program she and her husband co-founded with Vincenzo
The couple worked with Mr. Muccioli to create
Muccioli in 1978.
a rehabilitation shelter and self-sustaining community situated just outside the Adriatic
This program has become a global beacon of best
seaside town of Rimini. In the early days, this
practices in the treatment of addiction. It takes
meant the Morattis spent most weekends on the
guests who have failed in all other programs and
site in a caravan with their two small children.
reports a success rate of close to 75%. The San Patrignano Community today is home to about 1,300 young men and women
CREATING A SELF-SUSTAINING COMMUNITY Ms. Moratti and her husband, oil magnate Gianmarco Moratti, met Mr. Muccioli in the late 1970s and, Ms. Moratti says, her eyes were opened. “He was a great man with a big heart.”
and, to date, has helped more than 25,000 free of charge. Private donors in Italy tend to shy away from drug rehabilitation, says Ms. Moratti. The Morattis fight this social taboo by trying to deepen the public’s understanding of those who
THE REHABILITATION FOCUSES ON AN EDUCATION PROGRAM TEACHING A RANGE OF SKILLS IN:
TECHNOLOGY CRAFT AGRICULTURE ENVIRONMENT
SAN PATRIGNANO—The rehabilitation community is about an hour inland from the coastal town of Rimini, on the Adriatic Sea.
LETIZIA MORATTI 89
become addicted to drugs. A typical, rhetorical
Ms. Moratti estimates that the four-year
question she asks: “Do you think drug-addicted
rehabilitation program, by also giving the state
12-year-olds really understand drugs?”
an alternative to incarceration, provided Italy’s taxpayers with direct savings of €32 million
Her current financial strategy for the
in 2013 alone. The community offers, without
community is multifaceted:
charge, accommodations and food for both adults and minors. It has a fully equipped medical
• Prove that rehabilitation saves money
center. Rehabilitation focuses on an education program teaching a range of skills in technology,
• Help all San Patrignano guests to find a
craft, agriculture and the environment.
job, and selectively assist with microfinance those who want to start their enterprises,
As 96% of the rehabilitees go on to find jobs,
thereby helping them stay rehabilitated
Ms. Moratti believes there may be a further €1 million tax boost from these individuals each year.
SAN PATRIGNANO COMMUNITY IS
HOME TO ABOUT 1,300
YOUNG MEN & WOMEN AND
© Lora Sutyagina/Shutterstock
© Maria Uspenskaya/Shutterstock
HAS HELPED 25,000+
Future solutions for social problems, Ms. Moratti
96% of the rehabilitees go on to find jobs each year.
says, lie in this kind of approach. When donors invest rather than simply give money away, she says, they become much more
To run the community and its graduates, San Patrignano uses a variety of financing mechanisms, including charity loans, charity bonds, crowdfunding, social entrepreneurship and microfinance—not to mention all the volunteers. While these financial instruments are employed elsewhere in Italy, Ms. Moratti believes that San Patrignano is the only project that deploys them all simultaneously.
involved in achieving results. Their focus then encourages the third sector to become far more efficient. In this way, says Ms. Moratti, society might finally be able to fill the gap between government spending and social need—especially when it comes to the less popular causes. Over 30 years, the needs of the San Patrignano Community have evolved and so too has the
INVESTING IN THE FUTURE Still, Ms. Moratti has even bigger plans: “We want to showcase that it is possible to become self-sustaining.” As part of their therapy, community members
Morattis’ approach to philanthropy. The key ingredient, however, has always been the same: the Morattis’ determination to stand with the vulnerable and dispossessed, and to help them gain the confidence and tools needed to rebuild their lives.
harvest, make and sell a range of products that support roughly 50% of the costs of the community. Ms. Moratti is also studying the viability of a social impact bond and social funds to enhance contributions to the San Patrignano Community.
• Social projects can become self-sustaining • Social finance may serve to bridge the funding gap between government coffers and challenging social issues
LETIZIA MORATTI 91
Embracing tikkun olam—
JUDITH YOVEL RECANATI
the human responsibility to heal the world
NATAL and the Gandyr Foundation I SRAEL •B orn in Tel Aviv into the Recanati banking family (1951) • T rained in Psychotherapy, Art Therapy and Archaeology. She received an honorary Doctorate of Philosophy from Tel Aviv University (2013) and the IDC Herzliya (2014) in recognition of her dedication to social action in Israel • S erved in the military during the Yom Kippur War • F ounded NATAL with Dr. Yossi Hadar (1998) and the Gandyr Foundation (2004) with her late husband, Dr. Israel Yovel, and their three daughters •H elped found Sheatufim—The Israel Center for Civil Society •A ctive member of the Jewish Funders Network, Committed to Give, Lion of Judah Israel, and the Israel Museum board •H onored with numerous awards, including the President’s Volunteer Award (2008)
“I remember the feeling of helplessness,” says Judith Yovel Recanati, recalling what it was like to be a young woman living in Israel through the Yom Kippur War in 1973. The sudden attack shocked and terrified Israelis. When the war hit, Ms. Yovel Recanati was 21 and attending university. She returned as an Israel Defense Force volunteer officer and served in a team responsible for hospitalized and injured soldiers. After the war, she studied Archaeology, Art, Art Therapy and Psychotherapy, got her master’s degree, and worked as a therapist in various rehabilitation centers. In 1998, Ms. Yovel Recanati and Dr. Yossi Hadar, the psychiatrist who had been her thesis advisor at Bar-Ilan University, co-founded the non-governmental organization NATAL, Israel’s Trauma Center for Victims of Terror and War. Dr. Hadar had suffered from post-traumatic stress disorder (PTSD) resulting from his service as a young physician during the Yom Kippur War. He died of leukemia in July 1998, very close to NATAL’s opening. Ms. Yovel Recanati decided to continue and realize their dream.
TO DATE, NATAL
HAS TREATED MORE THAN
(JEWS, MUSLIMS AND CHRISTIANS)
SUFFERING FROM PTSD
Two years later, September 2000, when the
NATAL is supported by “Friends of NATAL”
Second Intifada began, Ms. Yovel Recanati
in the United States, Switzerland and the United
describes her satisfaction that the Center was
Kingdom. NATAL also currently partners with
fully functioning and ready to support victims
international organizations to help increase the
of the conflict: “It was like magic,” she says.
resilience of veterans suffering from post-trauma.
© Sarawut Aiemsinsuk/Shutterstock
“We started it just on time to be ready when Since NATAL’s inception, Ms. Yovel Recanati has
it was so needed.”
worked as a full-time volunteer. She also personally To date, NATAL has treated more than 170,000
finances 25% of the organization’s ILS14.5 million
Israelis (Jews, Muslims and Christians) who suffer
(about US$3.8 million) annual budget.
from PTSD. Ms. Yovel Recanati firmly believes that anyone who is in need of therapy should have access to it. In fact, part of NATAL’s mission has been to help change Israeli culture so that victims feel free to seek help.
C O-FOUNDER OF NATAL— The late Dr. Yossi Hadar himself experienced PTSD and was dedicated to helping other sufferers.
CONTINUING A FAMILY TRADITION Ms. Yovel Recanati’s grandfather, Leon Recanati, was a leader of the Jewish community in Salonika, Greece, in the early 1930s. Seeing the rise of the Nazis, he led a large group of Jews to Palestine. Once there, Mr. Recanati realized that not one of the existing banks in Israel was run by Sephardim (Jews of Middle Eastern, rather than European, origin). He founded the Palestine Discount Bank.
JUDITH YOVEL RECANATI 93
When the Recanati family sold the IDB investment
This focus, Ms. Yovel Recanati explains, was
company in 2003, Ms. Yovel Recanati and her
chosen with her (now late) husband and their
husband, Dr. Israel Yovel, set up the Gandyr
three daughters, who were in their 20s when the
Foundation to make a positive impact on the
foundation was established. Involving the children
Israeli social arena. This decision was natural,
as equal partners on the board was a way to
says Ms. Yovel Recanati, as the Recanati family
connect them with their parents’ philanthropic
had always integrated philanthropy with business
work and family legacy. Gandyr is an acronym for
and was always involved in Israeli society.
the names of the family members: Gili, Noa, Daria, Judith and Rolly (Israel).
The mission of the Gandyr Foundation is to help young adults (aged 18 to 30) transition more
“If you want your children to join you in
smoothly to adulthood. Gandyr supports a range
philanthropy, you have to convince them you
of projects, including leadership and civil service
really mean it!” Ms. Yovel Recanati says. The
programs. It also funds academic research,
next generation must feel they can bring their
position papers and advocacy.
own ideas and their agenda to the endeavor. Of course, she notes, “it means you will have to share some of your power and influence,”
THE GANDYR FOUNDATION—Promoting young adults aged 18–30 toward their integration into society as contributing beneficial citizens.
but it also builds a new kind of relationship
The Gandyr Foundation supports Sheatufim
between the generations. The family not only
(the Israel Center for Civil Society), which aims to
discusses the foundation’s issues at monthly
promote an active Israeli philanthropic community
board meetings, but also at their family
by improving professional management, providing
access to relevant information and fostering inter-sector collaboration.
“You have to talk about what really matters to you, and about what you expect to change and improve around you.”
Ms. Yovel Recanati is also a founding member of Committed to Give, a network of Israeli philanthropists and social investors. The best bottom line, she says, is to make a positive difference in the world. “No matter whether you are a technology innovator or
“You have to talk about what really matters to
someone in the social field, you have to look
you, and about what you expect to change and
inside yourself, find what matters, and activate
improve around you,” says Ms. Yovel Recanati.
it to change and improve people’s lives.”
“This life-changing experience forces you to come out of your comfort zone.”
WIDENING THE CIRCLE This is also the model that Ms. Yovel Recanati believes can be used for a wider collaboration to enhance civil society. Ms. Yovel Recanati and her family are now in the third phase of their philanthropy, seeking to encourage further co-operation between philanthropists and across the third sector.
• It is important to find out what matters to you and to work to make a positive difference • Philanthropy can be learned through the family experience. Parents can involve their children in philanthropy—but only if the parents are willing to share and give up some control • Collaboration among philanthropists is essential to enhance an active civil society
JUDITH YOVEL RECANATI 95
It is about
what we can do for others
BERNARD SABRIER Children Action SIN GAPO R E • Mr. Sabrier took control of Unigestion, a privately owned investment manager (1976), and is now Group chairman and chief executive officer of the firm’s
Bernard Sabrier was initially reluctant to accept donations from friends to support the surgical missions and psychosocial projects he was running via his private Swiss foundation, Children Action. It is easy to see why his friends were keen to help. Children
Singapore operations. Unigestion
Action’s work includes flying leading surgeons and medical
has $18 billion in assets under
experts into Vietnam, Cameroon and Myanmar to operate on
children who would not otherwise be treated for conditions
• He took control of Banca della Svizzera Italiana (1988), which
such as orthopaedic and urological malformations, burn injuries and heart defects.
he later sold (1991) • He established Children Action (1994) • He sold the banking arm of Unigestion to Republic National
It is also plain to see why they would trust Mr. Sabrier to handle their donations. Currently chair of a specialist investment group in Geneva, London, Montreal, New York, Paris, Toronto, Zurich and Singapore, Mr. Sabrier has long
Bank (1996), where he served as
been highly regarded in international financial circles, mainly
a director until Republic National
due to his role in closing not one, but two international
Bank was sold to HSBC (1999)
banking deals in the late 1980s and 1990s.
Still, deploying other people’s money for
In 2012, a dozen French and African actors,
philanthropic purposes was not what Mr. Sabrier
comedians and singers—led by film star Catherine
had planned when he set up Children Action in
Deneuve—raised $8 million for the foundation and
1994. “If you deploy your own money alongside
its work. In 2013, those funds notably supported
other people’s, you have a fiduciary duty to
38 medical experts who worked with Children
run it like a corporation,” he notes.
Action to conduct 17 surgical missions to Vietnam and Cameroon. They donated 320 days of their
He soon realized that having other financial
time and provided $150,000 worth of medical
stakeholders could benefit his private foundation’s
efforts by eliminating the temptation to cut administrative corners as a way to direct more
The cause is compelling. Children Action has
resources to charitable projects. He promised his
a simple mission: to provide practical and
donors that 100% of their contributions would
direct help to children around the world, with
benefit programs and projects on the ground,
the philosophy that “the first human right is
while he alone would fund the foundation’s
the right to a childhood.” The ways in which
administrative costs and some specific projects.
Mr. Sabrier interprets that mission vary, but he generally focuses the foundation’s work
Net result: Mr. Sabrier’s philanthropic work has
in two principal areas: surgical interventions
since attracted the support of many others—
and psychosocial support.
donors, surgeons, doctors and physiotherapists, academics and international celebrities.
MEDICAL CONSULTATIONS AND
11,000 OPERATIONS COMPLETED IN VIETNAM HAVE BEEN
© Ann Summa/Corbis
BERNARD SABRIER 97
© Mike Tauber/Blend Images/Corbis
HANDS ON Also compelling is the thoughtful way Mr. Sabrier goes about supplying this pragmatic aid. He pays close attention to Children Action’s structure and practices—using a traffic-light system of financial, technical and ethical feasibility to assess each project.
A GOOD CHILDHOOD—Bernard Sabrier’s foundation provides practical and direct assistance to help make this possible for children around the world.
flights, accommodations and visas for the medical teams. The surgeons donate their time, expertise and equipment. More than 45,000 medical consultations and 11,000 operations have been completed in Vietnam since 1996. A week-long mission allows operations on 12 to 25 children, with
“Good philanthropy is about efficiency, humility
each surgery costing $250 to $1,700.
and responding to need,” says Mr. Sabrier. “The actual practice requires focus, which is
The way he has structured his organization
difficult to achieve and do well.” His goal, he
creates “huge leverage,” says Mr. Sabrier, who
says, is to be “ethical, compliant and with the
identifies himself as the money man on the
foundation’s board; the other board members are principally leading medical practitioners.
With surgical missions, each life-changing
“First, we found the medical professionals,
decision goes before an ethics committee
and they found others.”
composed of leading academics and practitioners. The foundation takes responsibility for liaising
Mr. Sabrier applies a competency-based approach
with in-country hospitals and for organizing
to all of Children Action’s efforts—even those that fall outside of Children Action’s core mission.
For example, he hired SGS Consulting Ltd., a global firm, to set the specifications for homes Children Action built for families who were victims of the tsunami in Sri Lanka. This attention to professional
“We are a very small foundation, so we have to be very focused.”
standards meant 374 homes could be built without wasting any material. “We are a very small foundation, so we have to be very focused,” says Mr. Sabrier. In fact, the foundation’s project expenditure was $3 million in 2014, split across 13 projects in eight different countries: Argentina, Cameroon, Myanmar, Peru, Romania, Sri Lanka, Switzerland and Vietnam. However—with all the volunteered services—that $3 million had the impact of about $9 million, says Mr. Sabrier.
FOCUSING ON OTHERS’ NEEDS Monitoring the results of Children Action’s work, says Mr. Sabrier, is relatively easy in the surgical field. It’s more complex in the field of psychiatry. Since 1996, Children Action, in partnership with the University Hospitals of Geneva, has spent more than $13.7 million on an extensive teenage suicide prevention program. Last year, there were no reported teen fatalities in Geneva for the first time in 16 years. However, Mr. Sabrier observes that it is hard to judge how much this is due to the work of the foundation. “For every project, we try to understand what are the markers of success,” says Mr. Sabrier.
“Sometimes it feels like you are putting water into a sponge: You can see the money going in, but you can’t see anything coming out,” he says. In these circumstances, he advises not to be overly judgmental or lose resolve, but instead to be pragmatic. “We all have dreams in philanthropy, but this is not about our dreams. It is about something much simpler: It is about what we can do for others.”
• Successful philanthropy requires good governance and the right competencies. The goal is to ensure the best possible outcomes for beneficiaries and donors, and that those outcomes are delivered efficiently • Private philanthropists should respond to needs on the ground and should avoid trying to impose solutions • Responding to need requires humility and pragmatism in order to recognize what can be achieved in the field, using the resources that are available
But he also cautions other philanthropists not to become too obsessed with targets and measurable results. BERNARD SABRIER 99
It is essential to pay attention to
what makes people truly happy YOUSRIYA LOZA SAWIRIS Sawiris Foundation for Social Development
Now in her 80s, Yousriya Loza Sawiris is a philanthropist,
a businesswoman, an environmental advocate, a one-time
•M ember of the Egyptian Parliament (1995–2000) • E stablished the Sawiris Foundation (2001)
parliamentarian, and an influential wife and mother. A modest woman, she claims to be neither an academic nor an intellectual. “I have tried many practical recipes for helping the poor and disadvantaged,” she says of herself. “I consider myself mainly a doer and an advocate for those without voice.”
•M ember of the Consultative Council for Legislative Affairs in the transitional Egyptian government (2011) •A warded an honorary doctorate in Philosophy by the American University in Cairo in recognition of her dedication to social development in Egypt (2014) •B oard member of: National Council for Childhood and Motherhood, National Council of Women, Social Fund for
Her achievements are impressive. Character, determination, passion and drive to make a difference can be seen in so much of her work and are the driving force behind her success. When she describes her first foray into philanthropy in 1979, she laughs at the naiveté of her younger self. Having qualified as an accountant after her three sons were born, she decided to help slum families get jobs by teaching them accountancy skills. Visiting the site of her
Development, Egyptian Water and
proposed generosity, she jumped out of a jeep and landed
Waste Water Regulatory Agency
in a heap of garbage, and quickly learned that accountancy
•W ife of Onsi Sawiris, founder of the Orascom conglomerate
was not a skill the families living on the garbage heaps of Cairo needed. “I was literally baptized in garbage,” she jokes.
IMPROVING LIVING STANDARDS THERE IS NOW ZERO WASTE AT A NUMBER OF COLLECTION POINTS
© Louie Psihoyos/Corbis
IN CAIRO’S GARBAGE COLLECTOR DISTRICTS
Ms. Sawiris would go on to become one of Egypt’s
microcredit. The expansion of interest reflects
most prolific private philanthropists, for which she
Ms. Sawiris’s belief that Egypt’s development
earned an honorary doctorate from the American
will succeed only if it is a coordinated response
University in Cairo in 2014.
to human needs. For example, she says, boys and girls who
AMBITIOUS GOALS Married to Onsi Sawiris, who founded the Orascom Group in 1976, Ms. Sawiris set up the Sawiris Foundation for Social Development in 2001 and is the foundation’s secretary general. In the early days, the foundation focused on creating jobs to help lift young people from Egypt’s poorest communities out of poverty. Increasingly, the foundation has become involved in wider social and economic development activities. Today, the foundation runs 27 different projects and initiatives across community development, health, education, employment training and scholarships, and
attend the Sawiris Foundation’s “I the Egyptian” Institute for Children at Risk often return to the slums and the streets because these are the places they are most familiar with. Clearly, providing shelter, relief and education cannot, alone, solve the problem, as it is addressing only one component of a broader development need.
“I consider myself mainly a doer and an advocate for those without voice.”
YOUSRIYA LOZA SAWIRIS 101
“The measure of success for any social initiative is the ability to generate income for the beneficiaries and by the beneficiaries. Gainful and consistent employment is the key to leveraging the poor out of poverty” she says. This highly practical goal has been the hallmark of all her projects. As an example, Ms. Sawiris has long supported the Zabaleen, who reside in the garbage collector
“The measure of success for any social initiative is the ability to generate income for the beneficiaries and by the beneficiaries. Gainful and consistent employment is the key to leveraging the poor out of poverty.”
districts of Cairo, and whose plight is particularly close to her heart. Starting in the 1980s, she took their case to the local government and to the courts to introduce basic services. Funds were raised to install adequate income-generating recycling methods. Today, garbage collection has reached zero waste at a number of collection points. This is now considered best practice and ready for replication throughout the country.
© Richard Splash/Alamy
IT’S PERSONAL—Yousriya Loza Sawiris (cutting ribbon) takes an intense interest in improving the lives of those who live in Cairo’s garbage districts. The Association for the Protection of the Environment, of which she is founding president, teaches people to recycle cardboard into souvenirs (top).
Thousands of families living in Zabaleen quarters
the government aims to create 5,000 jobs in
now have vastly improved standards of living.
five slum areas and poor urban neighborhoods through training and microcredit. The government
FORGING AHEAD Other associations of which Ms. Sawiris is a founding and board member have had similar impact and success. For example, the Gouna Nursing Institute is a nursing school designed to motivate poor, young, unemployed women to gain status and skills for this highly employable profession. Along the way, the prejudices of poor families in allowing daughters to work in the public sphere had to be overcome.
has committed to providing basic public services in these areas through cooperation with the ministries of housing and local development.
SIMPLE TEST The most important thing, Ms. Sawiris says, is to find out what makes people truly happy. That is the way to identify genuine needs that need to be addressed. That is also the way philanthropists themselves can find the causes they may best serve.
Ms. Sawiris has also been working with government to improve opportunities for
“If something touches your heart and mind, then
communities to thrive. She believes that if you
do it,” she urges, adding that, if it is a good project,
provide infrastructure, along with education
others will join you and create momentum.
and job creation, these communities have the strength to haul themselves out of poverty. “There are squatter areas that need to be removed because they are hazardous,” she says. “But to the others, we should give water, sewage, electricity and roads.” At the start of 2014, the Sawiris Foundation signed a protocol with Egypt’s Ministry of Social Solidarity marking a step in this direction. At a high level,
• To be successful, philanthropy must respond to a genuine human need and deliver a coordinated response • Don’t be afraid to engage your emotions— particularly happiness—to identify your cause
the joint venture between the foundation and
YOUSRIYA LOZA SAWIRIS 103
Philanthropy is a vocation that can change your life
ANANT SHAH Meghraj Group UNITED K I NGD OM
When Anant Shah was 50 years old, he found his calling—one
•M r. Shah’s father, M. P. Shah, retired from
based bank he had founded with his brother, Vipin, so that
business to devote himself to building institutions in health and education in Gujarat, India and Kenya (1954). Three years later, the family moved to the
that would ultimately lead him to wind down the Londonhe could focus full-time on philanthropy. “I didn’t realize until then that I had another side,” Mr. Shah says.
United Kingdom •M r. Shah and his brother, Vipin, set up Meghraj Group, offering private banking, fiduciary and investment services (1973) • T he brothers restructured the Group, shutting the private banking operations, which allowed Mr. Shah to focus full time on philanthropy (1999)
Mr. Shah’s inspiration was his father, Meghji Pethraj Shah. His father’s commitment to the service of humanity was embedded in the family’s values and their faith, Mr. Shah explains. As Jains, his family follows five religious tenets, one of which is aparigraha—often translated as “non-accumulation.” “The idea is that everyone needs enough for a comfortable life, but anything surplus should be used for the community,” Mr. Shah says. “We have a saying: If you have two chappatis on the table, that is enough.”
FAMILY SUPPORT It is easy to see why Mr. Shah would want to follow in his father’s footsteps. M. P. Shah left India for Kenya in 1919, when he was 15 years old, in search of new opportunities. He built a manufacturing, distribution and financial empire before retiring in 1954 and moving to the United Kingdom in 1957.1
Paul Marrett, Meghji Pethraj Shah: His life and achievements (Bharatiya Vidya Bhavan, Bombay: 2004), www.herenow4u.net/index.php?id=cd4715.
In M. P. Shah’s later, philanthropy-oriented
When Mr. Shah decided to focus on philanthropy
years, he built more than 120 schools, colleges,
in 1999, he and his brother restructured their
hostels, hospitals and clinics in the family’s
operations to accommodate his new role. He
home state of Gujarat in India, as well as in
says the change has brought him and his family
Kenya and the United Kingdom.
great personal happiness—and he feels he has continued to serve his community as a donor,
Mr. Shah was nine years old, and his brother,
social investor, mentor and connector.
Vipin, was 13, when the family moved to the United Kingdom. They were in their 20s when they started Meghraj Group, a financial services firm named after their father and the first private business of Indian origin to receive a banking license in the United Kingdom. “We started the business by talking to friends and relations,” explains Mr. Shah. Trust and referrals in the expat Indian community were a strong basis for building banking relationships. Meghraj Group now manages more than
STARTING “SMALL” Initially, Mr. Shah and his brother continued their father’s philanthropic focus on healthcare and education. They have expanded their range of activities over time. Many of the buildings that M. P. Shah helped construct were aging and needed repair, so the family has recently rebuilt them. The current value of the donations, land and buildings held by the institutions is in excess of $250 million.
$15 billion in client assets.2
EMPOWERING THE DISABLED—Mr. Shah provides guidance and funding to organizations such as Scope.
www.meghraj.com/group_home.asp. ANANT SHAH 105
For example, when Mr. Shah was introduced
Philanthropy should help liberate the most vulnerable and voiceless— and that includes animals. From his father, Mr. Shah inherited some important lessons about philanthropy: •A lign your philanthropy with your knowledge and expertise. First, one should contribute time, skills, relationships, credibility and experience in addition to money so as to achieve
to Sense International, a charity for the deaf and blind, he provided both funding and guidance to help the organization extend its reach into East Africa. At Scope, a charity supporting disabled people, Mr. Shah is tasked with helping to expand the programs that serve the United Kingdom’s Indian and East African ethnic communities. Mr. Shah was also an early investor in the £20 million Scope Bond, which was one of the first charity bonds in the United Kingdom.
greater impact. Second, where needed, one should partner with expertise. When M. P. Shah negotiated with the state authorities in Gujarat, he asked the government to take responsibility for delivering the education and healthcare services • S takeholder engagement is critical. M. P. Shah provided half the funding to kick-start each institution. However, he insisted that the rest of the funds should come from both the government and the communities served by the schools and hospitals so that all involved were committed to achieving the best possible results. He believed in the adage that “you only value what you pay for” As a result, Mr. Shah says he asked himself, “How can I put my contacts, skills and time to good use?” He decided he liked “being in touch with people,” and the style of philanthropy he developed was “a natural extension of that.”
AKING IT REAL—Sense International helps the disabled in M a variety of ways. Here, a vision-impaired young boy is learning through touch.
These include Aavishkaar, Bharatiya Vidya Bhavan, The Brooke, CRY India, Faraja Cancer Support Trust, Global Giving, iPartner India, Scope, Sense International, Shishukunj, Soko and Tamasha.
FAMILY MATTERS—Mr. Shah’s daughter, Meghna, holds Pablo, the cat who sparked Mr. Shah’s empathy for animals—which has led him to help groups supporting working animals.
Their friendship taught Mr. Shah the importance of the relationship between animals and humans. In the developing world, he notes, animals support the livelihoods of whole families. But Mr. Shah also believes that philanthropy should help liberate the most vulnerable and voiceless—
ENGAGING FULLY Today, at 66 years old, Mr. Shah is actively involved with more than a dozen organizations operating in the United Kingdom, India, Kenya and South Africa.3 On this formidable roster are three animal welfare charities. Mr. Shah is a trustee of The Brooke, an international welfare organization for
and that includes animals. “I have become something of a serial philanthropist and really enjoy it,” says Mr. Shah, characteristically downplaying his purposeful support of the wider community. “I would encourage anyone to consider both time and money for the greater good.”
working horses, donkeys and mules. He is also a patron of the Animal Interfaith Alliance and the founder of the Animal Helpline in Gujarat. Characteristically, Mr. Shah’s passion for animal welfare began simply. It was prompted by the insistent reappearance of a stray cat at his home in 1992. At the time, Mr. Shah was building Meghraj Group with his brother. The cat, whom the family named Pablo, kept Mr. Shah company while he worked late. “My giving to animals is straight from the heart; partly because I am a Jain, but really it is because
•P hilanthropy is a calling; have the courage to let it change your life •G iving back to those less fortunate can not only benefit your community and society, but also enrich your life •P hilanthropists who are willing to share their talent and expertise often find deeper engagement and enjoyment in their giving, and can achieve a greater impact •Y ou can leave a lasting philanthropic legacy by starting simply and building from there
of Pablo,” Mr. Shah confesses. ANANT SHAH 107
Promoting a professional and
dynamic culture of philanthropy in China
Yintai Foundation CHINA •B orn in Ningbo, Zhejiang Province (1962)
Shen Guojun believes in the power of giving for those who
• Graduated with an M.A. in Economics from Zhongnan University of Economics and Law (1986)
receive and for those who donate.
•H eld various positions at China Construction Bank (1986–1996); appointed general manager of China Construction Bank’s Hainan Yintai Real Estate (1996–1997)
are enriching yourself—because giving back makes you
• F ounded China Yintai Holdings; appointed chairman of China Yintai Holdings Co., Ltd. (1997)
more involved Mr. Shen became, the more passionate he
•A ppointed chair of Intime Department Store (Group) Company (2006) •A warded Ernst & Young Entrepreneur of the Year, partly in recognition for his philanthropy (2007) • L isted Intime Department Store (Group) Company on the Hong Kong Stock Exchange (2007) •D onated CNY5 million to the Ministry of Civil Affairs for repairs in Wenchuan following the devastating earthquake (2008) • Established the Yintai Foundation (2014) • L aunched China’s first master’s degree program for Social Enterprise Management with Peking University and its Guanghua School of Management (2014) 108
“While charity helps those in need, at the same time you deeply happy,” says Mr. Shen. As Mr. Shen explains, “when I found myself with the capacity and time for charity, I decided to do more of it.” And the was about building a strong culture of philanthropy in China, founded on solid business principles. “Charity in contemporary China has a very short history,” says Mr. Shen. Today, although there are more than 330,000 non-governmental organizations in the country, Mr. Shen believes not all of them are successful, sustainable, transparent and credible. Mr. Shen wants a change in China’s philanthropy culture, so he has committed his time and substantial resources to making it happen.
In 1997, Mr. Shen established China Yintai, a diversified national conglomerate. The success of his business has helped fuel his philanthropy. Through his company’s Yintai Foundation, he recently launched a groundbreaking initiative: China’s first-ever master’s degree program for Social Enterprise Management—designed to attract, train and launch a new generation of professional, nonprofit management executives in his home country.
INSPIRATION Mr. Shen’s current, outsized success contrasts dramatically with his humble beginnings. He grew up poor in Ningbo in China’s Zhejiang
ELPING DISABLED CHILDREN—Two centers collaborate H with doctors and surgeons to provide heart surgery and post-operative care.
Province. He excelled in academics and received a master’s degree in Economics at Zhongnan University of Economics and Law. Throughout his formative years, Mr. Shen was painfully aware that he was given special advantages as the eldest son in a traditional Chinese family. He watched as his two younger brothers, who got better grades, were forced to leave school when his family could no longer afford the few dollars it took to pay their school fees. “I felt helpless,” he says. “I knew that if others who had the capacity could help, my brothers would have had a better chance at success.” After Mr. Shen graduated from university in 1986, he worked at the state-owned China
bank’s real estate division. Only a decade later, he started his company. And almost immediately, he began funding schools and public works projects, such as road repairs, in Zhejiang. His involvement in charitable ventures grew along with his business success. He partnered with the Ai You Foundation to provide heart operations to poor children, and with the Chinese branch of The Nature Conservancy. In all philanthropic endeavors, Mr. Shen believes an entrepreneurial approach is essential to success. “An entrepreneur,” he says, “considers the matter thoroughly from a business perspective, asking: ‘How can I make it good?’ and ensuring that every penny counts.”
Construction Bank, where he rose to head the
SHEN GUOJUN 109
Supporting the Disabled Children Rescue
“China needs to update its laws for charitable organizations regarding review, approval, registration and management, particularly taxation.”
Project—With the Ai You Foundation (of which Mr. Shen is a founding director), the Yintai Foundation supports two care centers in Beijing and Kaifeng. Collaborating with doctors and surgeons, the centers provide congenital heart surgery and post-operative care. To date, more than 20,000 children have been helped. Almost as important, Mr. Shen says, this
THREE FRONTS To organize his philanthropy, in 2013, Mr. Shen created the Yintai Foundation, which now focuses on three areas: Promoting philanthropy in China—Mr. Shen hopes to overhaul China’s approach to philanthropy with the nation’s first Social Enterprise Management master’s degree.
work is helping to spread a culture of caring for people beyond the family circle. By way of an example, he recalls how a young girl in a remote village in China pressed RMB10 (equivalent to $1.50) into his hands, saying: “You helped my brother with heart surgery. Please take my savings from my summer job to help another child.”
He worked directly with Peking University to
Collaborating with The Nature Conservancy
create a two-year program that will recruit
(China)—The Yintai Foundation is working with
students from China and train them to manage
The Nature Conservancy to support the Sichuan
charitable organizations. Classes will begin in
Nature Conservation Foundation, a sanctuary for
September 2015, with scholarships offered to
wild pandas in China’s only privately owned land
help cover the cost per student.
trust reserve. The reserve has hired local people
Mr. Shen also intends to create a circle of philanthropists to collaborate and mobilize in an effort to create positive changes in China. Indeed, he has begun this effort by
who previously hunted and logged in the region to instead protect and patrol the land, and to grow agricultural products that are then sold back to the community.
winning support for his M.B.A. program
Mr. Shen says he hopes to replicate this model
from prominent business figures.
and develop other private land trust reserves under The Nature Conservancy’s leadership to help overcome barriers to conservation.
S ICHUAN SANCTUARY—The Nature Conservancy in Sichuan serves as a model for the rest of China by effectively sheltering many bird species, golden snub-nosed monkeys, giant pandas, Asian black bears and other animals.
CALL TO ACTION Philanthropy in China must change, from both the top down and the bottom up, says Mr. Shen.
Mr. Shen also encourages his compatriots— potential donors, policymakers and advocates— to seek out and engage with other countries’ media, philanthropists and nonprofit organizations. Long-term “communication and
“China needs to update its laws for charitable
exchange,” he says, are essential to the success
organizations regarding review, approval,
of philanthropy in China.
registration and management, particularly taxation,” says Mr. Shen. Charitable organizations also need to demonstrate better performance to gain more credibility with donors. At the same time, he believes, wealthy families in China should take a more active role. Many Chinese families still tend to focus on passing wealth to male heirs, he says.
• A more rigorous, credible philanthropic industry in China will require changes in legislation, professionalism and cultural attitudes • In China, entrepreneurial approaches to philanthropy are the most likely to succeed
SHEN GUOJUN 111
It is our responsibility
to leave the earth a better place
SHANNON B. AND THEODORE “TED” C. SKOKOS Ted and Shannon Skokos Foundation
Ted Skokos and his wife, Shannon, moved to Dallas from
UNITED STAT E S
spearheading the effort to create the AT&T Performing Arts
• T ed Skokos served as a Lieutenant
Arkansas in 2004. Less than four years later, they were Center and transform Dallas’s downtown.
Colonel in the U.S. Army Reserve (1971–1992) and practiced law (1973–1994) • S hannon Skokos won the title of Miss
“I had never given a dime to the arts before,” says Mr. Skokos. But he felt that Dallas’s lack of a performing arts center meant it was
Arkansas (1992), then went on to receive
missing opportunities for economic growth, as big businesses are
her Juris Doctorate from the University
typically attracted to areas with the widest appeal for employees.
of Arkansas at Little Rock School of Law,
This perspective was rooted in Mr. Skokos’s experiences as an
and, after retiring from the practice of law, she became a published author •M r. Skokos has been involved in many businesses, including The Flight Department, Aloha Partners, ATS Medical and 3F Therapeutics, plus several cellular telephone companies (since 1988) • T hey established the Ted and Shannon Skokos Foundation (2008) • T he Skokoses were heavily involved in a campaign to build a multivenue performing arts center in Dallas; the center was later named the AT&T Performing Arts Center (2009) • T hey currently sponsor an educational learning lab through the Dallas Theater Center at Booker T. Washington High School for the Visual & Performing Arts, which was recognized with an award from First Lady Michelle Obama and the President’s Committee on the Arts and the Humanities (2014) 112
attorney turned businessman. Ms. Skokos had a more personal understanding of the impact of the arts, having performed ballet for 13 years and been a flutist for 34 years. The Skokoses ultimately committed $12 million to the center through their foundation, and helped draw AT&T to the project through Mr. Skokos’s relationship with the company. The AT&T Performing Arts Center opened in 2009 and was a very public achievement. It cost $374 million to build—93% of the funding came from private sources, many with $1 million gifts. Moreover, other philanthropists looking to improve their communities were encouraged because the center may have
THE DALLAS URBAN ARTS DISTRICT SPANS
69 ACRES IN THE HEART OF DOWNTOWN
helped lure AT&T to Dallas. By 2015, Dallas
Then Pat Riley, owner of an athletic club where
had the largest urban arts district in the
she played tennis, found out about her dilemma
United States, spanning 69 acres in the heart
and not only bought the condo, but also reduced
her rent and said she could buy it from him at the same price when she had the money. All he
But even as the Skokoses see large civic projects
asked in return was that she would help
as the glue that helps bond a community, they also
someone else one day.
engage in more intimate forms of philanthropy. They believe that individuals should help other
“The Riley Rule,” says Ms. Skokos, “means to
individuals directly. “To whom much is given, much
first empower others to achieve their goals, and
is expected,” says Ms. Skokos, who even has a
second, to ask in return that those individuals
name for it: “The Riley Rule”—after someone who
one day help someone else to achieve their
once helped her.
goals. It is a domino effect—and it is how you make a difference.”
CLOSE TO HOME In the middle of studying for law finals, Ms. Skokos learned her landlord was selling her condo and, if she didn’t buy the place, she’d have to move in two weeks. She didn’t have the funds.
Today, the couple pays college tuition for select young people who need financial assistance and who have “great potential for leadership and academic success.” The Skokoses also empower others by funding and/or volunteering in 20 different projects: 18 in Dallas, two in Arkansas.
SHANNON B. AND THEODORE “TED” C. SKOKOS 113
As an example, she describes taking underprivileged
“If there are problems in your community, you can’t criticize if you are not prepared to go in there, understand and make a difference.”
children to meet Dallas’s mayor to learn about city government and voice their concerns about their community. On one occasion, an eight-year-old boy in a group of 8-to-12-year-olds told the mayor he “was tired of seeing dead people on his doorstep in the morning.” Ms. Skokos believes this experience has had a lasting effect not only on the boy, but also the mayor.
This focus on local community has become more pronounced over the years. The Skokoses funded
“I am always telling young people that if you
international projects before they discovered
want to be successful, you must dream big,
that many of the same issues were on their
set realistic goals, work hard and don’t make
excuses,” says Ms. Skokos. “A brick wall is nothing more than an opportunity to prove
It also reflects the fact that the couple likes
how badly you want something.”
to be hands-on. The Skokoses sit on multiple boards and volunteer on projects they fund. Recent projects include coaching basketball to children in poverty-stricken neighborhoods, rehabilitating girls rescued from sex trafficking, working with disabled orphans and building Habitat for Humanity homes. They also fund a program that enables top theater students at a local performing arts high school to work with the resident acting company of the Dallas Theater Center. “If there are problems in your community, you can’t criticize if you are not prepared to go in there, understand and make a difference,” says Ms. Skokos, adding “Judge not, as you know not the valleys through which another has tread.”
DRIVE AND DEDICATION This can-do attitude is how the Skokoses approach not only their philanthropy, but also their lives. After practicing law for 21 years, Mr. Skokos retired in 1994 and became involved in a variety of enterprises, including Aloha Partners L.P., which held the largest number of 700 MHz wireless spectrum licenses in the United States and was acquired by AT&T Mobility in February 2008. For her part, Ms. Skokos was a motivational speaker for nine years. She won the Miss Arkansas Scholarship Pageant in 1992 and used the funds
ETTING INVOLVED—The Skokoses’ many community efforts G include sports coaching for children in transitional homes and volunteering for Habitat for Humanity.
awarded to pay for law school. After practicing law for eight years, she is now a partner in her husband’s business ventures and an active philanthropist. She has also published a book entitled Ask God’s Creatures and They Will Teach You.1 “We don’t wear our faith on our sleeves,” Both Skokoses warn that it is easy to spread
says Mr. Skokos, “but we do believe it is our
oneself too thin. At one time, Ms. Skokos served
responsibility to leave this earth better than
on 13 different boards and 21 different committees.
we found it—whether that is through a small
“I was exhausted!” she says, laughing, yet making
act of kindness or a big change.”
it clear neither she nor her husband is prepared to slow down anytime soon. Little wonder. They are greatly motivated by their Christian faith, seeing both their professional success and their philanthropy as expressions of their religious beliefs and their hope for others to have better lives.
• Philanthropy comes in many forms; practice both civic and personal philanthropy to empower others to realize their dreams • Use your time and financial resources wisely
www.askgodscreatures.com/bookstore. SHANNON B. AND THEODORE “TED” C. SKOKOS 115
Nobody can do everything, but
everybody can do something GUNHILD ANKER STORDALEN Stordalen Foundation
It is hard not to be impressed by Gunhild A. Stordalen.
There is the obvious: a medical degree as well as a
•M edical doctor and Ph.D.; married to Petter A. Stordalen, Norwegian hotel and property tycoon • C hair of the Stordalen Foundation, co-founded in 2011 with her husband • S erved on the supervisory board of the European Climate Foundation (spring 2014) • Founder and director of the EAT Initiative, founder and chair of GreeNudge, and director of the boards of Nordic Choice Hospitality Group and Home Invest • S erves on the Norwegian Medical Association’s Council for Climate Change, Human Rights and Global Health, as well as on the Norwegian government’s Council on Sustainable City Planning •R eceived Environmental Hero Award from WWF Sweden in 2014, and selected in 2014 as one of global renewables magazine and news service Recharge’s “Recharge 4040,” a network of energy pioneers under the age of 40 • S erves on the boards of the Zero Emission Resource Organisation and the ECOHZ Renewable Energy Foundation, and on the Stockholm Resilience Centre International Advisory Board •A ppointed Young Global Leader by the World Economic Forum (2015) Photo credit: Isabel Watson
Ph.D. in Pathology and Orthopaedics. And, at just 35 years old, she already has a long track record as a philanthropic entrepreneur and environmental activist. She co-founded two cutting-edge foundations with her husband, Norway hotel and property tycoon Petter A. Stordalen. She also holds key roles in a number of high-powered third-sector and governmental organizations. Yet what may be most impressive about Dr. Stordalen is how instrumental she has been in reshaping the world’s conversation, understanding and actions around climate change. “Gloomy scenarios of increasing CO2 in the atmosphere, drowning polar bears and melting ice do not mobilize engagement and enthusiasm. Hell doesn’t sell. Climate change hasn’t been made real to most people, and even when it is, people don’t know what they might actually do about it,” Dr. Stordalen says.
That is why she is demonstrating that climate change also is a global health crisis and that some of the simplest choices we each make can change our lives—and the planet’s fate. Dr. Stordalen’s holistic solution-seeking does not stop there. She also argues that “responding to global environmental
REAL SOLUTIONS As a physician, Dr. Stordalen understands climate change as a systemic condition affecting every part of the global organism. She stresses that prevention and mitigation save lives and money. She sees great opportunities, particularly in the energy, transportation and food sectors.
challenges is good business. There are cost savings for those who manage to make more with less.” In other words, Dr. Stordalen is working to help both individuals and businesses see that they each have strong reasons, as well as the ability, to make a difference
© Vladimir Melnik/Shutterstock
© Michael Hanson/Aurora Photos/Corbis
in climate change.
“Climate change hasn’t been made real to most people, and even when it is, people don’t know what they might actually do about it.”
r. Stordalen’s EAT Initiative sends this D empowering message: Each person’s food choices can help save the polar bears— and our planet.
GUNHILD ANKER STORDALEN 117
This is the thinking behind what the doctor describes as her private foundation’s most
ambitious project to date: the EAT Initiative. The EAT message is simple: Our food choices are killing us and the planet. Obesity, chronic lifestyle-related diseases (e.g., heart disease and diabetes), hunger, malnutrition and environmental challenges (e.g., climate change and loss of biodiversity) all can be traced back to what we eat and how we produce it. With the Stockholm Resilience Centre at Stockholm
AkWh/annum 280 KILOWATT HOURS PER YEAR
University, the initiative aims to have academics, NGOs, politicians and businesses from around the world develop strategies that promote healthy, sustainable diets and production practices for climate mitigation, environmental protection and public health benefits.
CREATING TRIPLE WINS Dr. Stordalen is also a strong advocate for the triple-bottom-line philosophy asserting that “wins” can be created simultaneously for people, planet and profit. And she demonstrates how triple wins work. For example, her foundation, GreeNudge, funded a pilot project in six Norway stores, proving that clear labeling about total lifetime costs of appliances encouraged more consumers to purchase tumble dryers with a higher price tag but greater efficiency.
GREEN LABELING FOR DRYERS Dr. Stordalen’s GreeNudge foundation showed how to harness purchasing power: It demonstrated that consumers will make energy-smart choices when labels clearly explain their choices.
It was not long before the electronics retailer rolled out the labeling system across Norway. Another study at buffet restaurants in the Nordic Choice Hospitality Group showed that reducing plate size cut food waste by 20%. The idea is that research can generate pilot programs demonstrating how small but cost-efficient behavioral measures would make a significant environmental impact when implemented at scale.
“If you are a philanthropist going for your big
“Your role is to think about the overall objective, to map each sector’s potential concerns and input, then find strategies and initiatives that might make a difference.”
hairy goal,” she says, “your role is to think about the overall objective, to map each sector’s potential concerns and input, then find strategies and initiatives that might make a difference.” Still, it is important to know one’s limits. As a philanthropist, she says, “you can open doors and make connections. You can create the environment for collaboration and aligning resources.” But, she adds, “you can’t do it all.”
ENTICING THE BUSINESS SECTOR Business involvement is critical, says Dr. Stordalen. “If we can identify and highlight corporate opportunities—perhaps instead of corporate and social responsibility—business will come up with the right innovations.” So, for example, her husband’s hotel group aims to reduce the environmental impact through running more sustainable core operations, reducing food waste and investing in energy efficiency. She also is inspired by other companies’ efforts. “Look at what Elon Musk is doing at Tesla,” she says. “He doesn’t sell cars with environmental arguments. Instead, he is showing the world that the solution to our transport problem can be done with exciting, faster, smarter cars.”
• T he goal for philanthropists is to create momentum
and start a domino effect •A bstract problems need to be reframed and made
relevant to people’s lives to help motivate them to act, and co-benefits need to be identified and quantified •B ehavioral economics and behavioral psychology
represent a supplementary but potent tool for mitigating climate change. Small, cost-efficient behavioral measures can enable better decision making in consumers’ self-interest in everyday choices such as household energy and diets. Applied at scale, these small changes can add up to substantial, positive changes for the world •G lobal challenges create opportunities for business,
which can be a positive force for finding good solutions
CATALYTIC PHILANTHROPY “Philanthropists can act as catalysts and facilitators, identifying common objectives that bring together business, government, academia and civil society,” Dr. Stordalen says.
• Philanthropists can open doors, make connections and
identify common objectives that bring business, government, academia and the third sector together
GUNHILD ANKER STORDALEN 119
Creating a post-business career
promoting the art of Catalonia ANTONI VILA CASAS Fundació Vila Casas BARC E LONA , S PAI N
When pharmaceutical entrepreneur Antoni Vila Casas started his philanthropic journey, his motivation was
• F ounded Prodesfarma (1960), which he sold to Laboratorios Almirall (1997) • E stablished his foundation, Fundació
rational and commercially inspired. Over the years, his heart took the lead, and he put his passion for art and his pride in the Catalonian people on display.
Vila Casas (1986) • Diagnosed with lymphoma and chose to
In the 1980s, when Mr. Vila Casas set up his foundation,
dedicate all his time to his foundation
Fundació Vila Casas, he was the founder and owner of
Prodesfarma, a fast-growing business that needed to
•H onored with numerous awards,
establish credibility among physicians amid Spain’s
including high civil honors from both
crowded pharmaceutical industry. “I wanted to give my
the Spanish government (the Gran
business a pedigree,” he says. So his foundation funded
Creu de l’Ordre del Mèrit Civil, 1996)
medical research and projects to improve the public
and the Catalonian government (the Creu de Sant Jordi, 1999)
understanding of health issues. It continues that support to this day. Meanwhile, Mr. Vila Casas privately became one of the world’s most prolific collectors of contemporary Catalan art. Today, through his foundation, Mr. Vila Casas’s art collection—more than 3,000 works—is displayed in five museums and galleries. Each exhibition space is housed
CATALONIA HAS BARCELONA AS ITS CAPITAL, AND IS
HOME TO ABOUT
7.5 MILLION PEOPLE,
ROUGHLY 20% OF SPAIN’S POPULATION © anshar/Shutterstock
in historic buildings across Catalonia. All are dedicated to promoting Catalonian art created since the 1960s. This time period coincides with a resurgence of Catalonian identity. In 1979, Catalonia became an autonomous region within the
A PROUD HERITAGE Mr. Vila Casas’s lifelong love of art began as a child. His father, who admired modernist Spanish art, took the young Antoni to exhibitions. Catalonia has continuously produced world-renowned artists, including such 20th-century notables as Salvador Dalí, Antoni Tàpies and Joan Miró.
country. Today, there are approximately 7.5 million Catalans, roughly 20% of Spain’s population. The capital is Barcelona, where 25% of the Catalan population resides, and where Mr. Vila Casas was born and has made his life, his company and the home base for
Mr. Vila Casas privately became one of the world’s most prolific collectors of contemporary Catalan art.
ANTONI VILA CASAS 121
sculptures at the foundation.
LESSONS LEARNED Now, based on three decades of experience, Mr. Vila Casas has two pieces of advice for other philanthropists.
When Mr. Vila Casas sold Prodesfarma in 2005,
First, he advocates the benefits of upfront
his hobby turned into his life’s work. Fundació
planning. “Little by little is not necessarily the
Vila Casas not only runs the exhibition spaces,
best way,” he observes. If he had the chance
it also promotes young Catalan artists to help
again, he says, he would plan ahead and look
raise their profiles on the world stage, offers
for economies of scale, in a joint project.
As Mr. Vila Casas’s business became more successful, he was able to develop an art collection, displaying his pictures and
educational programs to connect children to art, and hosts conferences and events aimed
Second, he believes philanthropists benefit
at promoting Catalan culture.
from thinking carefully about the niche they want to fill. Mr. Vila Casas’s focus on Catalan
ART SPACES MAINTAINED BY
FUNDACIÓ VILA CASAS INCLUDE:
P H OTO GRA P H Y Palau Solterra Museum, opened in 2000, is located in the town of Torroella de Montgrí and showcases contemporary photography by both national and international artists.
H EA D QU ART ER S Casa Felip, a modernist building located in Barcelona, has been home to Fundació Vila Casas since 1998.
SC U LP TU RE
Can Mario Museum in Palafrugell, the foundation’s museum of contemporary sculpture, opened in 2004. Sculpture (left) by Jaume Plensa.
T E M P O R ARY EXHI BI T I ONS Espai Volart 1, the foundation’s first gallery to open to the public in Barcelona, houses temporary exhibitions of artists featured in the collection. Espai Volart 2 holds temporary exhibitions by well-known artists whose work falls into the disciplines of contemporary painting, photography or sculpture.
PA INTING Can Framis Museum in Barcelona opened in 2009 and is dedicated to contemporary painting. Painting (left) by Lita Cabellut.
© age fotostock/Alamy
ARCELONA BOUND—You may want to visit B Mr. Vila Casas’s Can Framis Museum (right). Painting by Lita Cabellut (above).
art and culture has enabled him to have a greater
Now in his 80s, Mr. Vila Casas is preparing the
impact than might have otherwise been possible.
foundation for its future. He has no children,
Through Fundació Vila Casas, he has been able
so his goal is to give the foundation a sustainable
to support up-and-coming artists who, without
legacy through income-generating assets and a
his help, would have not received recognition
management structure that will ensure it continues
from the mainstream Spanish art market. Over
as a vital force, helping to shape the continuing
the years, it has also given him the opportunity
story of the culture of Catalonia.
to build one of the leading collections of Catalan art that spans multiple artists and disciplines.
“Little by little is not necessarily the best way,” he observes. If he had the chance again, he says, he would plan ahead and look for economies of scale.
• Plan ahead, if possible, so that you can look for economies of scale • Focusing on less crowded niches will allow you to have greater scope and impact
ANTONI VILA CASAS 123
Transformational philanthropy can start with simple volunteering NANCY YANG Asian Charity Services CHINA
When the business she helped build with her brother, Norbert Chang, sold to Disney in 2007, Nancy Yang knew she
•R eceived her undergraduate degree from The Wharton School of the University of Pennsylvania (1992)
wanted to apply herself to the social sector. Her motivation, Ms. Yang explains, is her Christian faith and the fact that
and her M.B.A. from the J.L. Kellogg
“I have been loved so thoroughly, I want to give back, and
Graduate School of Management at
philanthropy is a wonderful opportunity.”1
Northwestern University (1997) •W orked as a management consultant at A.T. Kearney (1993–2000) • C o-founded Enorbus Technologies, which sold to Disney (2000–2007)
At first, Ms. Yang was unsure of how best to contribute her time, resources and the skills honed through years as a management consultant and entrepreneur to the not-for-profit world.
• C o-founded Asian Charity Services (2007)
In this respect, Ms. Yang, now in her 40s, came to realize
•B ecame a board member of Mother’s
that she was like many of her peers in Hong Kong. Those who
Choice (2009) •A merican Chamber of Commerce 2014 Master in Charity Award
want to give or volunteer are often unaware of their options. Some also may be hesitant to support small organizations that lack the scale to have widespread impact. The social sector is highly fragmented and consists primarily of small NGOs. Indeed, 82% of Hong Kong’s HK$8.77 billion of funding went to just 5% of the region’s 7,000 registered charities in 2013.
Disney bought the Beijing-based Enorbus for around $20 million; https://gigaom.com/2007/03/19/419-disney-buys-chinese-mobile-contentprovider-enorbus-for-around-20-milli/.
ASIAN CHARITY SERVICES’ INNOVATION TO DEVELOP THE SOCIAL SECTOR IN HONG KONG:
500 CONSULTANTS HAVE VOLUNTEERED AND
© Jasper James/Offset.com
330 NGOs HAVE BEEN HELPED TO DATE
And smaller organizations often get caught in a cycle of under-resourcing: If they do not have the wherewithal to write funding proposals, they cannot access resources that would allow them to grow and achieve scale.
“There is a disconnect between the social sector’s overwhelming needs and the business sector’s talents and resources.”
“There is a disconnect between the social sector’s overwhelming needs and the business sector’s talents and resources,” Ms. Yang realized. And having identified this gap, she formed an organization to bridge it. Together with David Sutherland, former Morgan Stanley Chief Financial Officer in Asia-Pacific, Ms. Yang founded the not-for-profit Asian Charity Services (ACS) in 2007 to help develop Hong Kong’s social sector by offering NGOs management training and consulting services. Ms. Yang now serves as the organization’s chief executive; Mr. Sutherland, as its chair.
MAKING CONNECTIONS The ACS model is simple and already proving effective. The registered charity connects volunteers from the business world with NGOs that are serving Hong Kong’s neediest citizens and communities. To date, 1,100 volunteer consultants from top-tier multinational corporations and investment banks have signed up. Volunteers have an average of 12 years of business experience. In teams of four, they devote 25 hours over a six-week period to a specific project.
NANCY YANG 125
TRAINING SESSION—Volunteer consultants help NGOs learn and adopt best practices.
governance, strategic planning, financial
“We are helping NGOs to do more in the community and are raising a generation of social leaders.”
management, fundraising and human resources functions. In this way, Ms. Yang says, the volunteers are helping build a layer of sustainable nonprofits in
“We often find among our volunteers—who have wonderful careers and have been to wonderful
Hong Kong. This is a critical step in creating lasting social change for Hong Kong, she believes.
universities—that they feel they have been given
To date, ACS has trained more than 1,000 leaders
something and they would like to give back.
from 330 Hong Kong NGOs, representing a broad
There is a strong sense of accountability,”
range of missions, from the arts to the environment
and from education to human rights.
The volunteers provide business consulting
With ACS’s help, such groups as Friends of
services, training and solutions to high-impact
the Earth, Hong Kong Sheng Kung Hui Welfare
local charities to help them operate more
Council, Hong Kong Society for Rehabilitation, and
effectively, better serve their communities and
Helpers for Domestic Helpers have been able to
become more sustainable. Capacity-building
strengthen their resource base, establish new
interventions include providing analysis, research
strategic directions and new governance practices,
and solutions to help with leadership and
and put in place leadership succession plans.
“The work we are doing is truly transformational,”
In his white paper, “Vocation: Discerning Your
says Ms. Yang. “We are helping NGOs to do more
Calling,”2 Reverend Keller explains that,
in the community and are raising a generation of social leaders.”
•B y “affinity,” he means the desire and maturity to help others. “Look at the concrete needs in the community…around you” and ask
VOLUNTEERING Despite Ms. Yang’s impressive achievements in both the business and philanthropic worlds, she insists that her experience shows you do not need a specific calling or even expertise to become a philanthropist and make a difference.
“What needs do you ‘vibrate’ to?” • “Abilities” here refers to the resources or skills one might contribute, as well as a realistic assessment of one’s deficiencies. Ask: “What should you be doing, and what do you need someone else to be doing?”
“Philanthropy is often like dating,” she jokes. “You may not know what you are looking for at the outset, but you do want to get involved.”
• “ Opportunity” is seeing which real needs are not being adequately addressed. “There may be opportunities for us to serve that we have
Ms. Yang’s own philanthropic journey began
never considered, but for which we are
modestly. Sixteen years ago, she began
perfect,” he notes
volunteering at Mother’s Choice, a Hong Kong nonprofit that supports women facing unwanted
Ms. Yang’s own experience in the social sector has
pregnancies or domestic violence, and that cares
shown her that “all are equally wonderful ways to
for children in need of a permanent home. Over
enter into philanthropy.” But, she adds, “You do
time, her involvement grew. Today, Ms. Yang is a
not need to have all three to make a difference.”
board member of this organization. It takes three simple qualities to find one’s way as a philanthropist—affinity, opportunity and abilities, says Ms. Yang, paraphrasing Reverend Tim Keller, founding pastor of the Redeemer Presbyterian Church in New York City and chairman of Redeemer City to City, an organization that starts new churches
• If you have affinity, availability and a skill or resource to offer, you can support social change • Volunteering your skills can be transformational for smaller organizations that lack the resources to grow
around the world and publishes resources for faith in urban culture.
www.gospelinlife.com/vocation-discerning-your-calling.html. NANCY YANG 127
Fully engage by becoming
visible and actively involved NIKLAS AND CATHERINE ZENNSTRÖM Zennström Philanthropies UNITED K I NGD OM • S ince 2000, Niklas Zennström has founded multiple technology businesses,
Niklas Zennström heard Al Gore speak about global warming and made a commitment: He would not be part of the generation that caused irreversible damage to the planet.
the most famous of which is Skype •M r. Zennström currently runs
A few years later, Mr. Zennström sailed through thick,
Atomico, an international high-tech
dark algae in the Baltic and became deeply concerned at
the slow pace of change toward finding and implementing
• C atherine Zennström was in the
European telecommunications industry until the couple moved to London,
Since then, he and his wife, Catherine, have been getting
where she started volunteering full-time.
more involved in supporting causes linked to both climate
She worked as a full-time volunteer for Médecins Sans Frontières and Amnesty International in its London office from 2002 to 2006 • T ogether, the Zennströms set up their foundation in 2007 to consolidate and increase their philanthropic activity • C atherine Zennström has long been actively involved in major world philanthropic organizations • In 2013, Niklas Zennström was awarded H.M. The King’s Medal for contributions to Swedish industry and society
change and human rights. Mr. Zennström—best known as a co-founder of Skype— grew up in Sweden, a sparsely populated land that is wildly beautiful and where, he says, “one can’t help having a visceral connection to nature.” Ms. Zennström, who built her own career in telecommunications, has been deeply committed to promoting human rights since high school, when she was first inspired by the work of Amnesty International and other campaigning organizations.
to allocate their time, energy, experience, identity,
“A donation is a one-off support moment. An investment means you are engaging.”
influence and money. “When we first started, we were perhaps a little too eager to support any cause or organization we felt was doing well,” says Catherine Zennström.
When Skype was sold to eBay in 2005 for $2.6 billion, the Zennströms realized they had
“We needed to clarify in our heads what sort of changes we wanted to make in the world.”
the opportunity to ramp up their philanthropy.
Now in their 40s, through Zennström
They set up their foundation, Zennström
Philanthropies, they hope to make sustainable
Philanthropies, in 2007 with the goal of making
improvements to “move the needle,” in
their donations count in the areas about which
Ms. Zennström’s words.
they were most passionate. “A donation is a one-off support moment.
SHARPENING FOCUS Both husband and wife were raised in altruistic households, he in Sweden, and she in France. Both have made donations and volunteered throughout their professional careers. But creating Zennström Philanthropies pushed them to a new level by sharpening their focus on how
An investment means you are engaging,” she explains. By “engagement,” she does not simply mean having a clear goal and focus—although both are important. For the Zennströms, it also means being visibly and actively involved.
THE BALTIC SEA IS THREATENED BY
ALGAL BLOOMS CAUSED BY
AGRICULTURAL AND URBAN PRACTICES1
http://www.zennstrom.org/race-for-the-baltic. NIKLAS AND CATHERINE ZENNSTRÖM 129
© 2012 Kyle Knight/Human Rights Watch
“If you add your name to the cause you stand up for, you show support to those who work hard to make change happen; you invest in the organization as a real partner in doing good, backing them, helping them excel in their mission—and yours,” says Ms. Zennström. Ms. Zennström not only runs the couple’s foundation, but also is an active member of the Human Rights Watch board of directors, where she either chairs or takes part in a number of committees. At the same time, she serves as member or as trustee of the International Human Rights Funders Group and Ariadne.
S UPPORTING BASIC RIGHTS—Zennström Philanthropies has a strong focus on human rights work in Europe and Central Asia.
BUILD A STRONG FOUNDATION Mr. Zennström describes the creation of their foundation as a “catalytic” moment in their philanthropy. It helped them clarify what was important to them and what sort of changes they wanted to see in the world. It focused their thoughts on the resources they could bring to the challenge. It also helped them realize they wanted experts on their team to help them remain “on the cutting edge of the issues we work on,” says Mr. Zennström. This enabled the couple to forge networks and tap into the expertise of others working in the same fields. Mr. Zennström also makes the parallel between business and philanthropic investments. He explains that, when investing in businesses,
“Start small; make donations until you gain the experience to know how you want to invest your resources.”
START SMALL In addition to her other activities, Ms. Zennström works to encourage and connect to other philanthropists. She is on the steering group of the Global Philanthropy Forum, which seeks to build a community of donors and social investors committed to international causes.
he does the homework on the potential markets.
Yet the Zennströms’ advice to others is: Start small;
He is hands-on, and he backs smart management
make donations until you gain the experience to
teams. He applies these same principles to
know how you want to invest your resources.
philanthropy. They add, however, that it is also important to “Philanthropists, like investors, need to believe
engage your emotions.
in the organizations they support and back them 100%,” he says.
“It’s okay to wake up angry in the morning about why the world is sometimes so badly run today,”
To date, the Zennströms’ foundation has
says Ms. Zennström. “Without feeling ‘angry,’
supported 55 different organizations, of which
annoyed, outraged or passionate, your investment
24 are active grantees. In 2013, they launched
will be minimum.”
the “Race for the Baltic” campaign with their grantees. They brought together stakeholders
She adds that, even if you start small, as you get
affected by Baltic Sea pollution to create a
more deeply engaged with issues and causes, that
multidisciplinary leadership group of NGOs,
motivating “angry feeling” will come.
businesses, politicians and citizens. This group has designed proposals to “Revive, Recover and Restore” the marine area and has delivered them to the environmental ministers in the regions’ capital cities. The group hopes to make this project a pilot for other marine conservation projects.
• It takes experience in giving to better understand the causes that ignite your passion • Once you engage, bring all your resources to bear: time and money, but also networks, influence and identity • Treat your grants as investments: do your homework, back smart management teams and stay involved
NIKLAS AND CATHERINE ZENNSTRÖM 131
INDEX AR E A S OF FOCUS Animal welfare, 105, 108–109 Arts and culture — AT&T Performing Arts Center, Dallas, 110–111 — Building cross-cultural relationships, 26, 34–37 — Catalonian art, 118–121 — Chicago-area, 44 — Chinese heritage, 26–27 — Dallas arts district, 110–111 Children, see also Education, Healthcare
• Influencing governmental policy, 10–12
Environment — Baltic Sea, 127, 129
• Nursing and medicine, 11, 13
— Chicago-area, 44
• Scholarships and internships, 8, 11, 12, 27–28, 34–37, 99, 108, 112
— Climate change, 114–117, 126–129
• School lunch program, 48–49 • Teacher training and support, 20, 23, 25, 70, 72 • Vocational, 8, 10, 11–12, 51–53 — By Location
— Conservation, 59, 108–109, 114–117 — Disaster relief • Haiti earthquake, 66–67 • Sri Lanka tsunami, 97 • Typhoon Yolanda, 8–9
• Afghanistan, 20–21, 56
— Early warning for weather, 9
• Bangladesh, 56
— Food waste, 61, 116
• Chicago-area, 44
— Recycling, 100
— Childcare, 7
• China, 26–27, 29, 75–77, 124
— Musicians, 26
• Egypt, 99, 101
— Sustainable energy, 61, 78–81, 114–117
— Psychosocial support, 94–95, 99
• Ethiopia, 16, 17
— School lunch program, 48–49
• Haiti, 68
— Transition to adulthood, 92
• India, 103–104
Corporate social responsibility
• Italy, 86–88
— Caring Capitalism, 31–33
• Kenya, 103–104
— Generally, 6–9
• Liberia, 56
Education — By Focus • Charter schools, 22-25, 64–65 • College tuition assistance, 111 • Early childhood, 22, 23, 76–77 • Elementary school, 8 • For the hearing and vision impaired, 104
• Mexico, 50–51 • Nepal, 56
Healthcare — Avoidable blindness eradication, 30–33 — BRCA-related cancers, 62–65 — Chicago-area, 44 — Connecting people with caregivers, 49 — Drug rehabilitation, 87–89
• New York City, 64–65
— Education in nursing and medicine, 11, 13
• Pan-Asian, 34–37
— Elder care, 49, 76
• Philippines, 8
— Ethiopia, 16
• San Francisco Bay Area, 84
— Nigeria, 30–33
• Singapore, 75–77
— Post-traumatic stress disorder, 90–91
• Girls, 19, 20–21
• Turkey, 10–13
• Grade K-12 reform, United States, 22–25
• United Kingdom, 103–104
• High school, 8, 11–12, 65, 83, 110, 112
• Madagascar, 56
— Water, 16, 30–32, 47, 76, 101
• Washington, D.C., 22–25
— Surgery and post-operative care, 31–32, 94–97, 107–108 — Teen suicide prevention, 97 — Victims of terror and war, 90–91
— Farm families, 68
— Gender justice, 18–21
Breast Cancer Research Foundation, 70
— Homeless, 8, 31, 68
— Rescue from sex trafficking, 112
The Brooke, 104, 105
— Transitional, 83–84
— Unwanted pregnancies and domestic violence, 125
Carter Center, 54
— Tsunami victims, 97 Human rights — Europe and Central Asia, 128 Poverty — Dallas, 111–112 — Egypt, 98–101
Center for Social Entrepreneurship, 48
CHARITABLE ORGA NI ZAT I O NS
The Child and Tree Fund, 54, 56
Aboitiz Foundation, 6–9
Children Action, 94–97
— #BangonVisayas campaign, 8–9 Ai You Foundation, 107–108
CityBridge Foundation, 22–25 — Breakthrough Schools: D.C., 23, 25 — Education Innovation Fellowship, 25
— Ethiopia, 14–17
Alzheimer’s Drug Discovery Foundation, 70
— India, 30–32, 48–49
Committed to Give, 90, 93
— Mexico, 50–53, 80–81
Amnesty International, 126
— San Francisco Bay Area, 82–85
Animal Helpline, 105
Council for Climate Change, Human Rights and Global Health, 114
— Washington, D.C., 22–25
Animal Interfaith Alliance, 105
Crown Family Philanthropies, 42, 45
Cynthia and George Mitchell Foundation, 78–81
Public health — Climate change related, 114–116 — Drug rehabilitation, 87–89 — Medical research and public understanding, 118 — Quality of Death Index, 76 — Safe water, 30–32 Social impact investing, 38-41, 42-45, 58–61 Social responsibility, creating awareness, 52–53, 56–57, 76–77, 82-85, 117 Third sector development
Arie and Ida Crown Memorial Foundation, 42-43 Ashoka Support Network, 18 Asia Philanthropy Circle, 77 Asian Charity Services (ACS), 122–125 Aspen Institute, 44, 70, 71, 72 — Franklin Project, 72 — Socrates Society, 70, 71 Bai Xian Asia Institute, 34, 37 — Asian Future Leaders Scholarship Program (AFLSP), 34, 36–37 Bai Xian Education Foundation, 34–37
— Tools to 100 Schools, 24, 25
Dallas Theater Center, 110, 112 Deshpande Center for Technological Innovation at the Massachusetts Institute of Technology, 46, 47 Deshpande Foundation, 46–49 — Hubli Social Entrepreneurship Sandbox, 46, 48–49 ECOHZ Renewable Energy Foundation, 114 Economic Development and Disadvantaged Kids Network, 18 Education Reform Initiative, 12
— Connecting NGOs with business-world volunteers, 123–125
Basser Center for BRCA at the University of Pennsylvania, 62–64
— S taffing improvements of charitable organizations, 76, 93, 106–108, 123
Betsy and Jesse Fink Foundation, 58–61
— Promoting collaboration among philanthropists, 13, 16, 37, 60, 72, 77, 81, 84, 93, 95, 108–109, 117, 129
Bill & Melinda Gates Foundation, 25
Endowment for Regional Sustainability Science, 80
Birthright Israel, 44
Environmental Defense Fund, 80
— Partnership for Quality in Vocational Education Project, 12 EforAll, 46
European Climate Foundation, 114
C H A RI TAB L E ORG AN IZATIONS CO NT IN UE D
Jewish Welfare Society, 70
Ovarian Cancer Research Fund, 62, 63
KIPP Foundation, 22
PAP Community Foundation, 77
Exponent Philanthropy, 80
KK Women’s and Children’s Hospital, 77
Puente a la Salud Comunitaria, 78, 80-81
Laura and Gary Lauder Family Venture Philanthropy Fund, 70-73
Redeemer City to City, 125
Lien Centre for Palliative Care, 77
San Patrignano Foundation, 86–89
Lien Centre for Social Innovation, 77
Sawiris Foundation for Social Development, 98–101
Friends of the Earth, 124 Fundació Vila Casas, 118–121 Gandyr Foundation, 90, 92–93 A Glimmer of Hope Foundation, 14–17 Global Philanthropy Forum, 129 GreeNudge, 114, 116 Habitat for Humanity, 112, 113
Lien Foundation, 74–77 — Life before Death Campaign, 76
Robin Hood Foundation, 82
Schwab Family Foundation, 84 Scope, 104
Harlem Children’s Zone (HCZ), 22
Harlem Village Academies (HVA), 62, 65
Médicins Sans Frontières, 126 Meetcaregivers, 49
Sense International, 104
Helpers for Domestic Helpers, 124
Meghraj Group, 102–105
Shanti Daan homeless shelter, 31
Hong Kong Sheng Kung Hui Welfare Council, 124
Sheatufim (The Israel Center for Civil Society), 90, 93
Hong Kong Society for Rehabilitation, 124
Merrimack Valley Sandbox in the Center of Innovation and Entrepreneurship at the University of Massachusetts (Lowell), 49
Hope for Haiti, 66–68
Microfinance National Institution, 86
Social Fund for Development, 98
Human Rights Watch, 54, 128
Miss Arkansas Scholarship Pageant, 112–113
Stockholm Resilience Centre at Stockholm University, 116
Mission for Vision (MFV), 30–33
Stordalen Foundation, 114
Immokalee Housing and Family Services, 66, 68 — Carl J. Kuehner Community Center, 66, 68
Missionaries of Charity, 31
Institute for Philanthropy, 78, 81
Mother’s Choice, 122, 125
Integral Training Center (Centro de Capacitación Integral), 52
NATAL, Israel’s Trauma Center for Victims of Terror and War, 90–91
International Human Rights Funders Group, 128
National Academy of Sciences, 79
Jaslok Hospital and Research Center in Mumbai, 30 Jewish Community Endowment Fund, 70 Jewish Community Federation, 83 Jewish Funders Network, 90 Jewish Teen Foundation Board Incubator, 72
Morningside Foundation, 26
National Center for Family Philanthropy, 80
— Scope Bond, 104
Sichuan Nature Conservation Foundation, 108, 109
— EAT Initiative, 114, 115, 116 Synergos Institute, 80 Teach For America, 22, 71 Ted and Shannon Skokos Foundation, 110–113 Tipping Point Community, 82–85 Tulsi Chanrai Foundation (TCF), 30–33
National Volunteer & Philanthropy Centre, 74
Tulsi Trust, 30
The Nature Conservancy, 107, 108, 109
United Nations Children’s Fund (UNICEF), 54–57
Norwegian Medical Association’s Council for Climate Change, Human Rights and Global Health, 114
— Let Us Learn, 56, 57
Vehbi Koç Foundation, 10–13 — Vocational Education: A Crucial Matter for the Nation Project (MLMM–Meslek Lisesi Memleket Meselesi), 12 Vicente Ferrara Foundation (Fundación Vicente Ferrara), 50–53 — En Nuestras Manos (In Our Hands), 52–53 Weather Philippines Foundation, 9 Wholesome Wave Foundation, 58, 60–61 — Double Value Coupon Program, 60–61 Womanity Foundation, 18–21 — Radio NISAA, 20
Altran Technologies, 18
A.T. Kearney, 122
IDB investment company, 92
AT&T Mobility, 112 Apax Partners, 38
Intime Department Store (Group) Company, 106
Atlantic Media Company, 22
Koç Holding, 10, 11, 12
Laboratorios Almirall, 118
ATS Medical, 110
Lauder Partners, 70
Banca della Svizzera Italiana, 94
Levi Strauss & Co., 82
Banca Prossima, 86
Mast-Jägermeister SE, 54
Big Society Capital, 38, 39
Material Service Corporation (MSC), 42, 43
Blackstone, 62 Bridges Ventures, 38 Building and Land Technology, 66, 67 Campañía Fundidora de Fierro y Acero de Monterrey, 51
Meteogroup, 9 Microsoft, 84 MissionPoint Capital Partners, 58, 60 Mitchell Energy & Development, 79
Cascade Communications, 46
Morningside Group, 26, 27
Yintai Foundation, 106–108
Chanrai Summit Group, 30
Young Presidents’ Organization, 18
Charles Schwab, 14, 15
News Corp Europe, 86
Young Women’s Christian Association (YWCA), 77
China Construction Bank, 106, 107
Nordic Choice Hospitality Group, 114, 116
Young Women’s Muslim Association (YWMA), 77
Zennström Philanthropies, 126–129 — Race for the Baltic campaign, 129 Zero Emission Resource Organisation, 114 CO M PAN IES 3F Therapeutics, 110 A123Systems, 46 Aboitiz Equity Ventures, Inc. (AEV), 6–8
China Yintai Holdings, 106, 107 Coral Networks, 46 Corporate Executive Board Company, 22, 24
Novel Enterprises Limited (NEL), 34 Orascom Group, 98, 99 Palestine Discount Bank, 91 Partner Fund Management, 84
The Portland Trust, 38, 39
Devon Energy, 79
Priceline.com, 58, 59
Prodesfarma, 118, 120
eBay, 127 Edible Land Design, 49 Enorbus Technologies, 122 The Flight Department, 110
General Dynamics, 42, 44
Advisory Board Company, 22, 24
Hang Lung Group, 26, 27, 28
Hannon Armstrong, 58, 61
Aloha Partners L.P., 110, 112
Henry Crown & Co., 42, 44 Home Invest, 114
RAI television, 86 Republic National Bank, 94 SGS Consulting Ltd., 97 Skype, 126, 127 Social Finance, 38 Sycamore Networks, 46 Tejas Networks, 46 Tesla, 117 Unigestion, 94
E D U C ATION AL IN ST IT UTIONS
Mumbai University, 30
University of Pennsylvania, 62, 63
American University in Cairo, 98, 99
Nanyang University, 75
— Basser Center for BRCA, 62–65
Bar-Ilan University, 90
Ngee Ann Polytechnic, 77
— The Wharton School, 122
Bocconi University School of Economics, 86
Northwestern University, 44, 122
Booker T. Washington High School for the Visual & Performing Arts, 110 Can Framis Museum, 120, 121 Can Mario Museum, 120 Chinese University of Hong Kong, Morningside College, 26 Duke University, 82 — Duke-NUS Graduate Medical School, 77 Gouna Nursing Institute, 101 Harvard University, 26, 28, 38 — Business School, 38 — T.H. Chan School of Public Health, 26, 28 Hebrew University, 44
— J.L. Kellogg Graduate School of Management, 122 Palau Solterra Museum, 120 Peking University, 35, 36, 106, 108 — Guanghua School of Management, 106
University of San Francisco, 82 University of Southern California, 26, 27 — Mrs. T.H. Chan Division of Occupational Science and Occupational Therapy, 26 University of Tokyo, 34, 35
Princeton University, 22
Waseda University, 35, 36
Semahat Arsel Nursing Education and Research Center, 10, 11
Zhejiang University, 35, 36
Singapore Management School, 77 State University of New York — College of Environmental Science and Forestry, 59 Stockholm University — Stockholm Resilience Centre, 116
Zhongnan University of Economics and Law, 106, 107 I ND I V I D U A LS Featured philanthropists — By country China • Chan, Ronnie C., 26–29
Hitotsubashi University, 35, 36
Tel Aviv University, 42, 44, 90
• Shen, Guojun, 106–109
Hong Kong University of Science and Technology, 35, 36
U.S. Holocaust Memorial Museum, 44
• Yang, Nancy, 122–125
IDC Herzliya, 90 Indian Institute of Technology (IIT), 47 Israel Museum, 90 Koç University, 11, 13 — School of Medicine, 13 — School of Nursing, 11, 13 Kyoto University, 35, 36 Massachusetts Institute of Technology — Deshpande Center for Technological Innovation, 46, 47
University of Arkansas — Little Rock School of Law, 110 University of Illinois, 34 University of Massachusetts (Lowell) — Center of Innovation and Entrepreneurship, Merrimack Valley Sandbox, 49 University of New Brunswick —P ond-Deshpande Centre for Innovation and Entrepreneurship, 46 University of Oxford, 36, 38 — Exeter College, 38
Egypt • Sawiris, Yousriya Loza, 98–101 Germany • Findel, Stefan, 54–57 Hong Kong • Chao, Ronald Kee-Young, 34–37 India • Chanrai, Jagdish Mithu, 30–33 Israel • Recanati, Judith Yovel, 90–93
• Lauder, Laura, 70–73
• Kuehner, Carl, Sr., 66–69
• Moratti, Letizia, 86–89
• Lurie, Daniel, 82–85
• Kuehner, JoAnne, 66, 68, 69
• Fink, Betsy, 58–61
• Kuehner, Paul, 66–69
• Fink, Jesse, 58–61
• Kuehner, Tiffany, 66–68
Mexico • Ferrara, Marco, 50–53
• Kuehner, Carl, Jr., 66, 67, 68
• Lauder, Laura, 70–73
• Kuehner, Carl, Sr., 66, 67, 68, 69
• Lien, Laurence, 74–77
• Stordalen, Gunhild A., 114–117
• Kuehner, JoAnne, 66, 68, 69
• Lorenz, Katherine, 78–81
Republic of the Philippines
• Kuehner, Paul, 66, 67, 68, 69
• Lurie, Daniel, 82–85
• Aboitiz, Erramon I., 6–9
• Kuehner, Tiffany, 66, 67, 68
• Moratti, Letizia, 86–89
• Lorenz, Katherine, 78–81
• Recanati, Judith Yovel, 90–93
• Skokos, Shannon B., 110–113
• Sabrier, Bernard, 94–97
• Skokos, Theodore “Ted” C., 110–113
• Sawiris, Yousriya Loza, 98–101
Singapore • Lien, Laurence, 74–77 • Sabrier, Bernard, 94–97 Spain, Barcelona
— By name
• Shah, Anant, 102–105 • Shen, Guojun, 106–109
• Vila Casas, Antoni, 118–121
• Aboitiz, Erramon I., 6–9
• Skokos, Shannon B., 110–113
• Arsel, Semahat Sevim, 10–13
• Borgstedt, Yann, 18–21
• Berber, Donna, 14–17
• Skokos, Theodore “Ted” C., 110–113
Turkey • Arsel, Semahat Sevim, 10–13
• Berber, Philip, 14–17 • Borgstedt, Yann, 18–21
• Stordalen, Gunhild A., 114–117 • Vila Casas, Antoni, 118–121 • Yang, Nancy, 122–125
• Bradley, Katherine Brittain, 22–25
• Cohen, Sir Ronald, 38–41
• Chan, Ronnie C., 26–29
• Shah, Anant, 102–105
• Chanrai, Jagdish Mithu, 30–33
• Zennström, Catherine, 126–129
• Chao, Ronald Kee–Young, 34–37
— Aboitiz, Jon Ramon, 6
• Zennström, Niklas, 126–129
• Cohen, Sir Ronald, 38–41
— Basser, Faith, 62
• Crown, Lester, 42–45
— Bates, Tony, 84
• Deshpande, Gururaj “Desh,” 46–49
— Blair, Cherie, 21
United States • Berber, Donna, 14–17 • Berber, Philip, 14–17 • Bradley, Katherine Brittain, 22–25 • Crown, Lester, 42–45 • Deshpande, Gururaj “Desh,” 46–49
• Ferrara, Marco, 50–53 • Findel, Stefan, 54–57 • Fink, Betsy, 58–61 • Fink, Jesse, 58–61 • Gray, Jon, 62–65
• Gray, Jon, 62–65
• Gray, Mindy, 62–65
• Gray, Mindy, 62–65
• Kuehner, Carl, Jr., 66–68
• Zennström, Catherine, 126–129 • Zennström, Niklas, 126–129 Others
— Bradley, Bill, 82 — Bradley, David G., 22 — Canada, Geoffrey, 22 — Carter, Jimmy, 54 — Carter, Rosalynn, 54 — Chan, Barbara, 26 — Chan, Gerald L., 26–28
I N D I V I DUALS CO NT IN UE D
— Gray, Vincent, 22
— Moratti, Gianmarco, 86
— Haas, Peter, 82
— Mother Teresa, 30–31, 33
— Hadar, Yossi, 90, 91
— Muccioli, Vincenzo, 87
— Chan, Tseng-Hsi, 28
— Harel, Sharon, 38
— Musk, Elon, 117
— Chang, Norbert, 122
— Haseltine, Mara G., 63
— Nischan, Michel, 60
— Chanrai, Mithu Tulsidas, 30, 31
— Heller, Paul, 70
— Obama, Michelle, 110
— Chanrai, Subodh, 30
— James, Chris, 84
— Paige, Katie Schwab, 84
— Chanrai, Sunder, 30
— Keller, Tim, 125
— Recanati, Daria, 92
— Chanrai, Uttamchand, 30
— Ki-moon, Ban, 41
— Recanati, Gili, 92
— Cirilli, Mark, 60
— Koç, Vehbi, 10, 11
— Recanati, Leon, 91
— Crown, Arie, 43
— Kuehner, Kimberly, 66
— Recanati, Noa, 92
— Crown, Henry, 42, 43
— Kuehner, Kurt, 66
— Recanati, Rolly, 92
— Crown, Ida, 43
— Lauder, Estée, 70
— Riley, Pat, 111
— Crown, Irving, 42, 43
— Lauder, Evelyn, 70
— Sawiris, Onsi, 98, 99
— Crown, James, 42, 44
— Lauder, Gary, 70
— Schwab, Charles, 84
— Crown, Sol, 42, 43
— Lauder, Leonard, 70
— Schwab, Helen, 84
— Cummings-Findel, Susan, 54–57
— Lien, Ying Chow, 75
— Shah, M. P., 102–103, 104
— Deneuve, Catherine, 95
— Lott, Ronnie, 84
— Shah, Meghna, 105
— Deshpande, Jashiree, 47
— Lurie, Brian, 83
— Shah, Vipin, 102, 103
— Domchek, Susan, 64
— Mitchell, Cynthia, 79, 80
— Stordalen, Petter A., 114
— Faust, Drew Gilpin, 28
— Mitchell, George P., 78, 79, 80
— Sutherland, David, 123
— Ferrigno, Vicente Ferrara, 51 — Gore, Al, 126
— Yovel, Israel, 90, 92
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