Google Finds It Hard to Reinvent Philanthropy

The NY Times featured a recent article on Google and their philanthropy efforts and predictions that they were going to change the game:

JUST before Google first sold its shares to the public in 2004, Larry Page, one of its founders, excited the nonprofit world with a bold commitment to philanthropy.

He vowed to dedicate about 1 percent of Google’s profits, 1 percent of its equity and a significant amount of its employees’ time to the effort, which became known as Google.org, or simply DotOrg. “We hope someday this institution may eclipse Google itself in terms of overall world impact by ambitiously applying innovation and significant resources to the largest of the world’s problems,” Mr. Page wrote in a letter to potential investors.

Although Google intended to tackle major problems like climate change, global poverty and the spread of pandemic diseases, it declared that DotOrg would not be “conventional” — a four-letter word in Google-speak. For starters, the organization would operate in part as a business, thus freeing itself from various constraints placed on nonprofit groups.

Google hired Larry Brilliant, a public health expert and Silicon Valley entrepreneur with no experience running a major philanthropy, to lead DotOrg, which was set up as a business unit within the company. It then poached prominent experts in development, energy and public health from prestigious institutions like the Aga Khan Foundation, Goldman Sachs and the International Water Management Institute.

“Google.org can play the entire keyboard,” Dr. Brilliant said in an interview with The New York Times shortly after his appointment. “It can start companies, build industries, pay consultants, lobby, give money to individuals and make a profit.”

Nearly five years later, however, the hyperbole looks more like hubris. DotOrg has narrowed to just one octave on the piano: engineering-related projects that often are the outgrowth of existing Google products. Dr. Brilliant was sidelined in early 2009 after his loose management style created much disenchantment in DotOrg’s ranks.

The company’s top executives rarely mention DotOrg, which is now run by Megan Smith, a business development executive who devotes only part of her time to the organization.

Although Google gives tens of millions of dollars to charity each year and says the overall company is meeting its 1 percent giving goal, DotOrg itself is no longer making grants to nonprofit groups or financing new companies. Instead, it focuses on projects like using Google Earth to track environmental changes and monitoring Web searches to detect flu outbreaks. Most of the experts it initially hired have left, and Google, a company obsessed with numbers and metrics, struggles to measure DotOrg’s accomplishments.

Google says it has changed its approach to philanthropy, but not its scope or ambition. Ms. Smith readily acknowledges that the organization has yet to prove itself, but she says it has already had a positive impact in various areas, such as public health and the environment.

“We are a start-up,” Ms. Smith said in a recent interview. “The aspirational goals in the founding of DotOrg are long term. Our hope is to get to that point where we could have the impact that our founders hoped.”

In the philanthropy world, many people have a more skeptical view of Google’s experiment.

“I think there were from the beginning two competing ideas about what DotOrg would be,” said Joshua Cohen, a professor of law, politics and philosophy at Stanford who, after DotOrg was formed, was hired to create seminars to educate Googlers on issues bedeviling developing countries. “The first was a Googley idea that DotOrg would completely reinvent philanthropy and, in doing so, reinvent the world and address a hugely important set of problems with solutions only Google with its immense intellectual talent and resources could find.”

The second idea, Professor Cohen said, was more modest: “that DotOrg could make some headway, maybe a little, maybe a lot, in addressing these really big problems by doing what Google as a company is really good at doing, which is to say, aggregating information.”

“The second idea,” he continued, “won out.”

NOTHING illustrates DotOrg’s approach better than Google Flu Trends, an innovative tool that uses data collected from searches about flu symptoms to predict the location of flu outbreaks. In April 2009, Dr. Brilliant said it epitomized the power of Google’s vaunted engineering prowess to make the world a better place, and he predicted that it would save untold numbers of lives.

Public health officials say the tool is undoubtedly useful.

But “on an individual basis, does Flu Trends save lives? No,” said Ashley LaMonte-Fowlkes, an epidemiologist at the Centers for Disease Control and Prevention, which helped Google test and develop it.

Instead, she described it as “a really nice adjunct” to other tools that the agency uses to understand the spread of flu. One major shortcoming of Flu Trends is that in poor regions of the developing world, where devastating pandemics are most likely to start, computers are not widely available, so Google has little data to feed into the tool. Even in the United States, during the swine flu outbreak of 2009, Flu Trends had difficulty detecting the relatively small number of H1N1 infections.

Some veterans of DotOrg say Flu Trends is an example of how Google’s engineering-centric approach frustrated and limited them.

Read more here.

How to Donate like a Pro

In a Time of Tighter Budgets—For Benefactors and Charities Alike—It's More Important Than Ever to Make Your Gifts Count. Here's How

Investors demand a good return from their assets. Now donors are increasingly seeking the same for their charitable dollars.

Many philanthropists, large and small, are anxious about writing checks—and many endowments have yet to recover fully from the bruising they took during the financial crisis. Finding the worthiest, most-efficient organizations to maximize the impact of your donations couldn't be more pressing.

Yet identifying the best charity can be as difficult as picking a good money manager, with philanthropists left to navigate a world of tax forms, ratings systems and often misleading jargon. It's easy just to write a check and hope for the best—but you stand the risk of getting a poor return on your charitable investments.

Making matters more complicated: Many long-cherished tax breaks are coming under fire. Next year could bring the return of limits on itemized deductions, including those for donations, if Congress doesn't extend the Bush-era tax cuts for couples earning more than $250,000 ($200,000 for individuals). Even if Congress extends the cuts for all, the idea of cutting back charitable tax breaks is still in play: President Obama's deficit commission this week proposed limiting the deductions for large gifts to amounts above 2% of adjusted gross income.

All this is making donors rethink their giving strategies, says Patrick Rooney, executive director of the Center on Philanthropy at Indiana University. "They want to make sure now more than ever that they're using their money wisely."

Overall giving is down sharply from its recent highs. Among high-net-worth households—who account for the bulk of individual charitable dollars—average giving dropped 34.9% to $54,016 in 2009, from $83,034 in 2007, according to a survey conducted by the center and sponsored by Bank of America Merrill Lynch.

The downward trend appears to be continuing. One in five people say they are giving to fewer organizations than in the past, according to a November poll from Harris Interactive. A third are giving in smaller amounts this year than last. And the percentage of people not giving at all has doubled to 12% in 2010 from last year.

There are a host of charity-rating agencies to consult, but to get a more-accurate picture, consider volunteering your time before giving money. Do your own research: Talk to beneficiaries, visit work sites and study a group's finances yourself to judge the effectiveness of its programs.

That's what Denise Winston did. The former business banker "always just wrote a check," she says. But after leaving her job and starting her own financial-education business in 2009, the Bakersfield, Calif., resident became more frustrated over how little of her donations were going to beneficiaries. She decided she would spend time volunteering with different organizations before giving, partly to get a better sense of her time and money's impact.

"I'm closer to the person receiving support," she says. "Anyone can write a check. But I like to give things you can't buy."

Here's how to navigate the system and make sure the dollars you donate are making the biggest impact possible.

Article continued at Wall Street Journal.com, includes ways of gauging donor's impact and red flags that donors should watch out for.

Foundations Likely to Increase Giving in 2011, According to Foundation Center Survey

Foundation Operations Have Stabilized in the Wake of Widespread Disruption

Giving by U.S. foundations is poised for modest overall growth in 2011, after remaining flat in 2010. But it may take several years for giving to match the peak level recorded in 2008, according to estimates reported by the Foundation Center in Moving Beyond the Economic Crisis: Foundations Assess the Impact and Their Response.

Foundation operations appear to have stabilized following cuts in staffing, travel, or other operating expenses by a majority of grantmakers. In a sign that foundations may be turning the corner, only 12 percent of respondents to the Center's September 2010 "Foundation Giving Forecast Survey" expect these operational changes to remain in place over the longer term. Among the changes that could persist: funders making fewer site visits to grantees, attending fewer conferences, eliminating print copies of annual reports, and moving to electronic grant applications.

"The foundation community is adapting in our dramatically changed environment," said Steven Lawrence, director of research at the Foundation Center and author of the advisory. "Even though the 2010 economy has been anything but predictable, foundations are working with greater efficiency, holding their giving steady, and a number are planning for growth."

Findings from the new report also indicate that about 40 percent of respondents have made some type of modification to their grantmaking priorities as a result of the economic crisis. However, less than 8 percent expect these to be long-term changes. The priority changes described by respondents range from providing greater support for safety net activities to tightening their grantmaking focus to eliminate funding that falls outside of their existing priority areas.

This Foundation Center research advisory is the latest in a series that has explored the impact of the economic downturn on the nonprofit sector. The advisories are available at the Center's Focus on the Economic Crisis web page, which offers a variety of resources to help nonprofits and foundations deal with the challenging economy. Also available on this page is the Center's interactive map that displays the most recent data available on U.S. foundation support for the crisis, totaling $440 million to date. Moving Beyond the Economic Crisis: Foundations Assess the Impact and Their Response (PDF) can also be downloaded at no charge from the Gain Knowledge area of the Foundation Center's web site.

About the Survey
In September 2010, the Foundation Center launched a special online update of its annual "Foundation Giving Forecast Survey" and made it available to approximately 5,000 large and mid-size U.S. independent, corporate, and community foundations. The survey included questions on the outlook for foundation giving in 2010 and 2011, changes in their grantmaking priorities and operations, and their response to specific needs created by the economic crisis. A total of 719 foundations provided useable responses as of mid-October 2010. The Center's next Foundation Giving Forecast Survey will be conducted in January 2011, with results released in the April 2011 edition of Foundation Growth and Giving Estimates.

This study was made possible in part by support from The Wallace Foundation. The Foundation Center's Research Institute is funded in part by The Wallace Foundation, which supports and shares effective ideas and practices to help institutions expand learning and enrichment opportunities. To learn more, visit the Knowledge Center at www.wallacefoundation.org.

About the Foundation Center
Established in 1956 and today supported by close to 550 foundations, the Foundation Center is the leading source of information about philanthropy worldwide. Through data, analysis, and training, it connects people who want to change the world to the resources they need to succeed. The Center maintains the most comprehensive database on U.S. and, increasingly, global grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of 450 funding information centers located in public libraries, community foundations, and educational institutions nationwide and beyond. For more information, please visit foundationcenter.org or call (212) 620-4230.

Deadline is Dec 1 for Knight News Challenge media innovation contest

If you have an innovative media technology idea, you might be able to get funding from the Knight News Challenge contest.

Run by the Knight Foundation, the grant competition awards up to $5 million annually for innovative projects that use digital technology to transform the way communities send, receive and make use of news and information.

More info can be found here: http://newschallenge.org. The site includes application information, as well as details about past winners.

This year's application deadline is December 1. The News Challenge is looking for applications in four categories: mobile, authenticity, sustainability and community. All projects must make use of digital technology to distribute news in the public interest.

The contest is open to anyone in the world.

A simple description of the project is all you need to apply. Submit a brief pitch to http://newschallenge.org. If the reviewers like it, you'll be asked to submit a full proposal later.

New Tools For Measuring Impact!

The Foundation Center, the nation's leading authority on philanthropy, has launched an online database of proven approaches to measuring and analyzing the impact of social investments. As philanthropists and the nonprofit community shift towards more strategic approaches to get a "social return," evaluation activities must also operate at a higher level. TRASI ("Tools and Resources for Assessing Social Impact") addresses these growing needs by offering tools and methodologies that place a premium on evidence and metrics in tracking progress.

"Measuring the effectiveness of social programs has always been a challenge because it's not just about the numbers. TRASI helps organizations meet that challenge and go beyond simply determining whether projected outcomes were achieved," said Lawrence T. McGill, the Foundation Center's vice president for research. "The organizations that have generously shared their own strategic methods for measuring impact will greatly help others to find a solution that is a good fit for them."

Developed in partnership with McKinsey & Co., the assessment approaches in TRASI were authored by a range of organizations, including social investors, foundations, NGOs, and microfinance institutions. The Better Business Bureau, USAID, Annie E. Casey Foundation, and the Center for Effective Philanthropy are among them. The resources in the database range from off-the-shelf tools and concrete methodologies to generalized best practices and are complemented by multimedia features and social networking tools.

Each approach has been carefully indexed against a common set of key elements and presented in a way that makes it easy to compare their relative merits. The key elements include: who the approach applies to, what kind of organization or evaluation the approach is best suited for, and the costs and techniques involved in its implementation. Each approach was thoroughly reviewed by an Expert Review Panel convened by the New York University Stern School of Business.

Online Kick-off Event
The Center is hosting an online event to kick-off the TRASI launch. Beginning at 2:00 pm EDT on Wednesday, September 22, 2010, a live chat with some of the individuals from the Expert Review Panel will be held. Anyone interested in learning more about impact assessment and the TRASI platform is invited to attend by visiting http://trasicommunity.ning.com/.


About the Foundation Center
Established in 1956 and today supported by close to 550 foundations, the Foundation Center is the nation's leading authority on philanthropy, connecting nonprofits and the grantmakers supporting them to tools they can use and information they can trust. The Center maintains the most comprehensive database on U.S. and, increasingly, global grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of 450 funding information centers located in public libraries, community foundations, and educational institutions nationwide and beyond. For more information, please visit http://www.foundationcenter.org/ or call (212) 620-4230.

Special Event: "A Conversation with NYS Comptroller Thomas P. Di Napoli and Panel Discusscion on Strategic Alliances & Partnerships

Presented by The Community Foundation for the Greater Capital Region and the New York Council of Nonprofits.

May 10, 2010
8:30am - 11:30am
NYSUT Headquarters
800 Troy Schenectady Rd
Latham, NY

Welcoming remarks from Secretary of State Lorraine Cortés-Vázquez
Panelists:
Doug Sauer, CEO: New York Council of Nonprofits, Inc.
Cristine Cioffi, Partner: Cioffi, Slezak, Wildgrube; Chair: Ellis Medicine Board of Trustees
David W. Palmquist, Head: Museum Chartering, NY State Museum
Jason R. Lilien, Bureau Chief: Charities Bureau (invited)

Potential Topics of Discussion:

• Ways in which state agencies can work to assist the not-for-profit sector as it faces today's complex challenges
• Aspects of the current economic environment that may compel not-for-profit organizations to consider strategic affiliations, shared services, and possible mergers
• Trends, models, and best practices for strategic alliances & partnerships
• How funders and regulatory agencies can encourage and support responsible affiliations

Continental Breakfast Sponsored by NYSUT
SPACE IS LIMITED

Please respond to jcuilla@cfgcr.org to reserve your seat.

Stewart’s Shops’ Dakes donate $3.9M to Community Foundation

The Business Review reported that local philanthropists William Dake and Susan Dake have donated $3.9 million to the Community Foundation for the Greater Capital Region in Albany, N.Y., to establish a donor-advised fund.

The donation creates the Susan and Bill Dake Fund, from which the Dakes can direct money to the causes of their choice. Read more here.

Foundation Center survey finds two-thirds will reduce grants in 2009

A new research advisory from Foundation Center shows foundation giving is expected to decrease in 2009, in a range of high single digits to low double digits; nearly two-thirds of respondents predict reductions in the number and/or size of their grants in 2009. Still, about 80% of respondents expect to maintain their current program areas, while a small handful (3%) anticipate increasing the number of areas they support.

Only 14% of all respondents report launching special initiatives in direct response to the current economic climate. However, community foundations are particularly focused on responding to the downturn; 35% say they are engaging in special initiatives to help communities cope with the fallout from a deteriorating economy.

As funders’ resources have diminished, many plan to participate in non-grantmaking activities. Two-thirds of funders expect to engage in more collaborations and partnerships, while one-third anticipate initiating more convenings. Other non-grantmaking responses include providing for more technical assistance, offering more bridge/emergency financing, and engaging in more advocacy.

While most funders plan to use investment income to meet their grantmaking budgets (88%), about 39% expect to use their endowment principal to make grants. This is particularly notable given the asset declines most funders experienced in 2008 and continue to experience in 2009.

The Foundation Center surveyed 5,000 large and mid-size foundations in January 2009 about their outlook for giving in 2009 and 2010, and about how they plan to respond to the economic downturn. Approximately 1,200 foundations responded.

Post provided by the Minnesota Council of Foundations.