New Approach to Foundation Giving

DRAFT If you read my previous entry, you will see I put forth a way in determining your volunteer and philanthropic activity. This is a different way to give.

I have served on a few boards in my time and served as staff on a non-profit board. It occurs to me we give funds because we are asked to and/or we believe in the mission of the organization. Most non-profits are staff driven. A new board chair can change the mission and activities of an organization quickly. When this type of change occurs, and next is the resources (staff and fund).

In my experience, I see the staff leadership as key. My thoughts are to set up a foundation that would administer a series of funds that an individual in the non-profit sector could apply for. The successful applicant would be eligible for the interest of the funds generated annually. The length of the grant is 5 years. The annual amount available would be an estimate. The successful applicant would be issued a credit card that could be used to purchase goods and services directly related to the efforts of the organization. The foundation would receive a monthly bill so expenditures could be tracked.

What is unique about this method is the following:

• It would go to an individual as opposed to an organization.
• The organization would not be aware of a successful grant. The reason is sometimes other donors look at is as this non-profit just received a nice size grant, so I can decrease my commitment for this organization and give more to another.
• The individual that receives the grant is under no obligation to share it with the non-profit board or others.
• The individual that receives the grant would be able to transfer it to a new job, if it is in the private sector.
• The individual that receives the grant would have considerable discretion on how the funds are spent.

Think of it as a worthy individual working in a non-profit has a fund he can tap into for special needs. I think an example is in order. It will focus on education, but this approach can apply to a multitude of non-profits.

If you have seen the movie "The Freedom Writers" you know what happens. For those of you that have not, let me summarize it. A caveat, I am not sure how much of it is true. The movie centers on an idealistic teacher fighting to educate "lost" kids that the education system has written off. She takes two-part time jobs to pay for supplies and activities she thinks will connect to her students and help her better teach her subject matter (English). An example, she buys her students new books with funds from her own pocket. The book is The Diary of Anne Frank. The kids in her class never got new books in school. It sent a strong message to her students. Like most of the other students, they finally get new books too. The class chatter and excitement is quite remarkable. A comment from one of the teacher's student was it is the first time she could remember getting a new book as opposed to a much used and recycled text book.

Now, my foundation would allow the teacher to buy her kids new books so perhaps the teacher would not have to work two additional part-time jobs. It would be the same for an art teacher that wants to buy her students art supplies or take them to a museum. 

Notice how I focus on the individual providing the service and not the organization. Organizations can be cumbersome and not receptive to change or new ideas. In some cases the board of a non-profit thinks it knows better how to spend the grant than the donor or the individual I would grant to funds to. Just consider this; an individual can make a tremendous difference because they are in essence the boots on the ground. They see and experience more and they must be innovative if they want to reach their students.

Yes, I know this is simplistic, much like my last post. It would take far more work and oversight, but in the end I think it is worth it. Back to the education example.  One good teacher can positively impact dozens of students. It is not always about the organization, it is more about the people in the organization. It is not about helping the privileged, it is about connecting with the kids that have little or nothing and struggle every day. Match the people who can connect with these kids and offer to make it easier for these teachers to focus on helping the kids.

A Formula for Determining Your Philanthropic Efforts

Lately, I have given a lot of thought about how one can personally determine philanthropic efforts. As Jack Welch said in his autobiography, I "noodled" the concept after reading about Warren Buffet and Bill Gates effort to get billionaires to donate a substantial portion of their wealth to charity before they die.

As I thought about this, I think philanthropic efforts consist of two parts: donation of time and donation of money. I developed this six factor formula to help people decide how to allocate time and money. Score each one on a scale from 1 to 5. Five is the highest score.

1.      Do I have any investment in the community? By this I mean do you own any property in the area.

2.      Do I have any personal ties to the community? By this I mean is it your hometown or do you have a strong emotional tie to the area.

3.      Is it an activity you feel strongly about? Examples include education, art, music, etc.

4.      Do I have the time to give? Double weight this score. ___ (score) x 2 = ___ actual score.

5.      Can I make a difference? Double weight this score. ___ (score) x 2 = ___ actual score.

6.      Will I be allowed to make a difference? Triple weight this score. ___ (score) x 3 = ___ actual score

Note the difference between questions 5 and 6. Question 5 is a reflection on the skills, knowledge, and experience you bring to an organization. Question 6 reflects on the organization's board and staff on accepting new ideas and methods. I have been on a few boards and the attitude is "do not rock the boat" and "we have tried that." You know what I mean.

Granted this is very simplistic. You can do this for every opportunity, and then you may have an idea on what makes the most sense. Your time and funds is a valuable commodity.  So, consider how you decide your choices. If you have any comments, I look forwarding to hearing them. Please feel free to comment on my blog.

Can We LIve Without Smart Phones?

This is an article I read in Forbes. The link is at the end of the post. It is about what happen when the author, Haydn Shaughnessy, gave up his smart phone. I will not try to summarize his article. My suggestion is that you read it.

My comments assume that you will read it. I must admit, I love my smart phone. Unlike my kids, I do not play games. Rather, my phone is a tool. I use it to read news. In addition, it allows me to check Twitter accounts (two serve as news feeds), LinkedIn, Facebook, and text my family. Yes, I do update various social network accounts and email photos to my family.

In a couple of respects I think Mr. Shaughnessy is correct. I do use my phone to fill my down time or when I am bored. When I get a text message or an email, I want to check it immediately. On that point, I would agree, that is not good. Sometimes I feel like an old Star Trek TV series character (the series shot in the 1960s). I have my communicator and waiting for Mr. Scot to tell me the transporter is now working and I will be beamed up. Yes, just like the TV series character (and I am wearing a red uniform which means I will die, Trekkies will understand this) I hold my communicator waiting for Mr. Scot's signal.

He is also right that it distorts time. Time stops being a precious commodity and becomes an endless series of deadlines and calls, etc. I can see a difference since I got a smart phone. It breaks concentration. As an avid reader of business and current event books, magazines and journals, I find my time cut up more. Indiana Senator Richard Lugar reserves one hour a day to read and his staff does not interrupt him. That is admirable and impressive. It is a practice I hope to start and encourage others to do so too.

My possible addiction to my smart phone reminds me of the great book The Screwtape Letters by C. S. Lewis. The premise of the book is a demon, Screwtape, coaches his nephew, Wormwood, on how to get an Englishman to damnation. The key advice offered by Screwtape is you must move the Englishman in small steps of temptation. After hundreds of small steps, Wormwood will have the Englishman exactly where he wants him. A strong reliance to a smart phone is the same path, hundreds of small steps or in this case adding games, applications, texting, news feeds and social networks. Pretty soon you are charging your phone every 2-3 hours and seldom "talk" to anyone.

The first wireless phones I saw were in bags and cost something like $0.33 per minute. So you used your phone carefully. This was in the late 1980s.

Like most people, I went from a simple cell phone that was nothing more than a wireless hard line phone with an almost unlimited range to a smart phone. It was quite a leap. Suddenly, more apps than you can shake a stick at. More news and reference material than I thought could ever be on a phone. That must be why it is called a “smart” phone. It offers the instant ability to effortlessly check news, emails, and social networks. Best of all, a touch screen that makes it easy to send and receive texts and emails. How much better can it get? For the answer to that question, I must ask my kids.

The solution? First, I do not want to get rid of my smart phone. On that point I disagree with Mr. Shaughnessy. A smart phone does give a person a sense of security. It can be beneficial when you need a phone number or directions to a location. It is very helpful at an airport, and then again, so is my Kindle. I think it takes more of an effort to stop all notifications of messages, news feeds, for an hour or two. Perhaps I could even put the phone in another room for an hour or two. It is not that I am necessarily addicted to my smart phone (perhaps I am) but it is more a question of managing it. Just like an exercise or diet program. One day at a time.

For those of us that were introduced to emails and the internet after we graduated from college and well on our way to a satisfying career, it actually reminds me of the addiction to email years ago. Email replaced the fax machine. You also had people communicate via email as opposed to face to face interactions. In this sense I have seen people use email as a crutch. It was so bad you saw numerous self-help articles and advice in leading business magazines and journals. As with the email addiction of decades ago, this too shall pass and we will be wiser. Of course today we have texting.

The link to the article follows. I suggest you read it. http://blogs.forbes.com/haydnshaughnessy/2011/05/27/dumping-my-mobile-3-rediscovering-timeless-moments/

Learning Every Day

I was reading Forbes on my Kindle last week and ran across this fascinating interview with Vint Cerf, co-inventor of the Internet and now with Google. It was amazing to me for several reasons. First is how much credit Vint Cerf gives to others and that it was somewhat of a collaborative project. Second, the phenomenal growth of Google. Third, his definition of the internet. And Fourth, the reason for inventing the internet, which follows.

The reason cited by Vint Cerf is "...when the burning question was: How do you devise a voice and data network that can survive a nuclear first strike?" That is surprising. Often overlooked is the commitment by the U.S. Department of Defense to ensure that the president has communication ability no matter what the circumstances.

Vint Cerf readily admits that no one saw the demand and use for the internet. The intellect and creativity of people never ceases to amaze me. As you read the article, note the history of the internet and why it was created. Now look at internet and all the uses/apps. More become available every day. Generally forgotten is that it took major advances in hardware, software, infrastructure, training, etc. Right now I am on a lap top outside editing this post. Approximately 15 years before I would be sitting at a desk in front of a small screen and large box unable to even contemplate that I would have my own blog.

The link is: http://www.forbes.com/forbes/2011/0606/opinions-rich-karlgaard-innovation-rules-internet-guru.html

Project Graduation

In our high school we have a program called Project Graduation.  The high school is open from post-graduation to 5 AM. Graduating seniors and invited friends can come and take part in a multitude of activities like basketball, cards, dancing, etc. I am not sure if this is a widely accepted or copied program, if it is not, it sure should be.  It is an excellent idea. It sure does take alot of volunteers and local business support. From what I saw, it was well worth it.

Just in case you are wondering, ample food is available. From 2 AM to 3:30 AM the kids can go bowling courtesy of the school buses. 

We worked the 9 PM to Midnight shift at the food court.  It was slow at first, kids started coming in around 10:30 PM.  At 11:40 PM we had a swarm of kids chowing down. Several of the volunteer parents made frequent trips to bring pizza, stuffed bread, cookies, chicken nuggets, and other tidbits.  Kids would sit at tables, talk and eat. As with any gathering of kids, the tables and chairs were rearranged.  At one point the a number of the kids got on the dance floor.  The school had a good DJ. 

It was so enjoyable to watch. Lots of conversations and laughter. Each kid was polite.  The more I think about it, the more I am convinced I did not see kids on smart phones. They were enjoying each other's company.  It was loud, so I did wonder if they heard any conversation.  It did not seem to matter.

I must admit, it made me fondly recall my senior year in high school.  You hope they will be friends for decades and will keep in contact. That is probably easier now with social media.