Corporate Philanthropy

General Atlantic CEO Topic: Corporate Philanthropy

Though many executives dedicate a significant part of their free time and wealth to philanthropic causes, the social roles and responsibilities of the corporation outside of the four-walls of the business are a source of ongoing debate. The definition and implementation of “Corporate Social Responsibility” (CSR), and, in particular, corporate philanthropy as but one facet of CSR, remains challenging for many companies. However, in most cases correlating business objectives with philanthropic causes provides increased business motivation, community benefits and intrinsic rewards when implemented through thoughtful and successful programs. CSR is a comprehensive area encompassing not only how one acts as a corporate citizen but how the corporation treats and should treat all its constituencies: employees, clients and the broader community in which it operates. Corporate philanthropy is one important aspect of CSR reflecting the culture of an organization. One of the strongest arguments in favor of corporate philanthropy is that, through a focused charitable program, a corporation can do more good than could be accomplished by distributing the same capital to individual stakeholders. Corporations have greater resources than an individual for identifying the most effective grantees, drawing in additional sponsors, assisting the grantees in execution and advancing the knowledge and practice of the grantee through innovation within and around the designated cause(1).

The most extreme view against corporate philanthropy dates back to Milton Friedman’s principle, published in the NY Times Magazine in 1970—“the only social responsibility of business is to increase its profits.” Most companies take a less severe stance and acknowledge the importance of their corporate philanthropy to attracting and retaining employees, and in many cases attracting and retaining customers. However, it also is the case that corporate donations as a percentage of profit are down 50 percent in the last 15 years (2). Moreover, businesses feel increasing pressure to tie any charitable contributions back to their corporate strategy and to somehow produce measurable ROI for any charitable programs.

The benefits of sound corporate philanthropy programs are multi-fold. There are clearly gains to be made through marketing around philanthropic efforts that are incorporated into corporate business strategy. Corporate sponsorships of the Olympic Games associate a company’s brand with hard work and achievement while targeting a global audience. Lenovo’s sponsorship of the 2006 Olympics tied an element of its CSR initiatives with its strategic imperative to extend global brand awareness. The Avon Breast Cancer campaign appealed well to their target market, as did the Nike “LiveStrong” bracelets campaign for cancer research, while raising funds for very worthy causes.

Aside from external image-building, much corporate philanthropy is tied back to employee morale, retention, motivation, or even leadership skills development. Most corporate matching programs are well-received by employees, as General Atlantic has determined with our own long-standing program.

Volunteerism provides employees with the ability to extend their skill set and make an impact within an area of interest. The Committee to Encourage Corporate Philanthropy, an international forum of over 120 CEOs and chairpersons focused on advocating and promoting corporate philanthropy, published a Best Practices Study in January 2006, which revealed that a more effective strategy for employee involvement in corporate philanthropy was encouraging volunteerism(3). At General Atlantic where a pillar of our business strategy is our value added approach, we have found that this same desire to make a significant difference extends to the nonprofit arena.

There are several organizations in which we have had an early role as a financial contributor but even more importantly as an involved and active partner. Notably these organizations effectively reflect our corporate philosophies and extend our business strategies to the nonprofit sector. One example is our involvement with Venture Philanthropy Partners, an organization founded by Mario Morino (the founder and CEO of one of GA’s earliest investments). Venture Philanthropy Partners (VPP) is a philanthropic investment organization focused on improving the lives of children from low-income communities. Not only does VPP provide funding, but most importantly significant strategic assistance in the form of management expertise and other non-financial resources that are too rarely available to nonprofits. Moreover, VPP works closely with others in the field of philanthropy to inspire philanthropists, corporate and nonprofit leaders, and public policymakers to help increase the effectiveness and the flow of capital, talent, and other resources to nonprofit organizations meeting the core needs of children.

Another organization which extends GA’s philosophy of identifying and funding outstanding management teams to the social sector is Echoing Green (EG). EG identifies funds and supports the world’s most exceptional emerging leaders and the organizations they launch. Through a two-year fellowship program, EG helps passionate social entrepreneurs develop new solutions to some of society’s most difficult problems in the US and globally.

As globally focused investors with a diverse employee base, our philanthropic interests reach well beyond the US. Reflecting our interest in education and developing global leaders, we are active with Stanford University and are on the Advisory Board of the School of Economics and Management at Tsinghua University in China. On the humanitarian front, as a firm and with widespread employee participation, we have organized and provided financial support of several disaster relief efforts (i.e. earthquakes in India and Pakistan and the tsunami in Southeast Asia).

There are many examples of successful corporate philanthropy programs. Research suggests that the most successful programs are clearly defined and centrally managed as an integral part of the business. Defining the goals of corporate philanthropy helps employees understand how they can be more involved in the appropriate programs and helps shareholders understand the long term benefits of such programs across constituencies. In addition, by tying the effort to business objectives, a company can gain alignment across the organization to maximize the community and strategic impact of the program.

Notes:
(1)Porter, Michael and Mark Kramer. “Philanthropy’s New Agenda: Creating Value,” Harvard Business Review, November 1, 1999.
(2)Porter, Michael and Mark Kramer. “The Competitive Advantage of Corporate Philanthropy,” Harvard Business Review, December 1, 2002.
(3)Steger, Cai. “Exploring Corporate Philanthropy: A Member Survey,” CECP, January 2006.

Reprinted with permission from General Atlantic. All rights reserved.

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The field of venture philanthropy received attention in a July 3 Wall Street Journal article that mentioned the work of VPP and two of our nonprofit partners, the See Forever Foundation and Heads Up.

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Water-related diseases are the leading cause of death worldwide. Clean drinking water is critical for human survival and economic well being; yet, two of every five Africans lack access to an improved water supply. Throughout Africa, rural water services lag far behind urban services.

Last year, while visiting Botshabelo, South Africa, Jean and Steve Case (who are VPP Founding Investors) were introduced to an innovative solution—the PlayPump water system, a child’s merry-go-round attached to a water pump and storage tank that provides safe, clean drinking water and powerful educational messages to children and families in schools and communities in rural Africa. They knew immediately that they wanted to help bring more PlayPumps and the benefits of easy access to clean water to millions more Africans.

PlayPumps operate much like a windmill on its side; as children spin on the merry-go-round, clean water pumps into a storage tank—a unique feature that other pump technologies don't have. The PlayPump can generate up to 370 gallons of water per hour, producing a larger volume of water than other manual pumps with considerably less effort. Four billboards surround the PlayPump storage tank, providing a rare opportunity for companies and public health organizations to reach rural populations. Two sides carry consumer product messages, and the other two carry public service messages, including messages about HIV/AIDS prevention. The revenue generated from the advertising pays for maintenance and ensures each installation's sustainability.

PlayPumps join together an entrepreneurial business with an international, cross-sector coalition of governments, NGOs, companies, foundations, and individual donors, including the International Finance Corporation and UNICEF. The Case Foundation joined this partnership in 2005, attracted by the initiative’s leadership, cross-sector tapestry of partners, and entrepreneurial business model, as well as the opportunity to bring more joy into the lives of underserved children.

As Jean explains, "PlayPumps represents an innovative solution that harnesses the power of children's play to bring clean water to rural schools and villages throughout sub-Saharan Africa. We have been so pleased to see the early support and momentum with this initiative as we march toward the goal of bringing clean water to 10 million people by 2010." Jean, Steve, and their children have traveled together in Africa, where they support several other organizations and individuals that reflect the mission of the Case Foundation.

The foundation, like VPP and other high-engagement funders, is hands-on in its work and offers not just financial assistance, but strategic assistance as well. In the case of PlayPumps, the Case Foundation has funded a business plan through Accenture in South Africa and a separate monitoring and evaluation effort to track success over time. Stateside, the Foundation has created a 501(c)3 and marketing tools to support an aggressive fundraising campaign that will launch later this summer.

Both the business plan and the additional funding will be critical to scaling from 700 PlayPumps serving one million people in South Africa to providing clean, safe, drinking water, educational messages, and a place to play to more than ten million people throughout Sub-Saharan Africa by 2010.

To learn more about this collaborative partnership, visit The Case Foundation or PlayPumps websites.

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Jean Case Named as Chair of Presidential Council

Jean Case was named by President George W. Bush as Chair of the President’s Council on Service and Civic Participation earlier this week. The Council, established by President Bush in January 2003 and renewed last year, works to promote and recognize the contributions of Americans to their communities through volunteer service. According to a press release, "President Bush strongly believes that every individual can have a positive, lasting impact on their community. We welcome the leadership of Jean Case as the Council's new Chair and are confident in her ability to mobilize the Council to advance and strengthen volunteer service among Americans," said Desiree T. Sayle, Deputy Assistant to President George W. Bush and Director of USA Freedom Corps. "Together with the newest members of the Council, we look forward to advancing the President's call to service."

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Investment Partner Updates

Human Capital Development and Leadership

See Forever Foundation Leadership Transitions
Thanks to Stacy Miller, Director of Development, for this update.

Effective July 17, 2006, Cynthia Robbins, will assume the role of Executive Director of See Forever Foundation and Maya Angelou Public Charter School (MAPCS), after serving as Managing Director of the linked organizations for the past two years. Founding Executive Director, David Domenici, plans to remain closely involved and will assume the Chairmanship of See Forever Foundation on that same date. Domenici said, “We are really thrilled to have Cynthia already an integral part of the organization and more than ready to move into the role of executive director. She has a long track record of success in the nonprofit and education sectors. We're confident that she'll also do great in this new position here at See Forever."

Robbins returned to DC from a stint in Los Angeles and among other positions served as senior program officer, managing the general grant program at the Eugene and Agnes E. Meyer Foundation. She worked on school reform in Learn Now and then Edison Schools before joining See Forever. She has previously served as a civil rights and criminal defense attorney, adjunct professor of law, consultant, and as a manager in nonprofits dedicated to advocacy, leadership support, and organizational development.

She has consistently been a committed civic participant who currently chairs the Board of Trustees for the DC Public Defender Service and serves on the boards of the historic Lincoln Theatre on U Street and DC Vote—seeking voting representation in Congress for DC residents. She will join the board of Maya Angelou Public Charter School.

As Managing Director at See Forever and President of Maya Angelou Public Charter School, Robbins played a central role in leading the school through the process of securing its accreditation with Middle States Association of Colleges and Secondary Schools awarded in May 2006. She has a BA from Harvard University and a JD from Stanford Law School.

Funding

Friendship Receives Walton Family Foundation Grant
Thanks to Candice Tolliver, Director of Communications, for this update.

The Walton Family Foundation has awarded Friendship Public Charter School (Friendship) a $234,000 grant to support reading initiatives at its Southeast Elementary Academy campus. The grant will be used to launch a comprehensive reading program for grades kindergarten to three and to enhance professional development opportunities for teachers.

“It is imperative that students develop strong, fundamental reading skills in the first three years of school. The Walton Family Foundation grant will help to ensure that Southeast Elementary students are reading at or above grade level,” said Donald L. Hense, chairman, Friendship Public Charter School.

Southeast Elementary Academy, located at 645 Milwaukee Place, SE, occupies the site of the former Southeast Academy of Scholastic Excellence. In June 2005, when the DC Public Charter School Board was faced with the school’s closure, Friendship expanded its charter to acquire the school facility. In less than 40 days, Friendship hired 20 new teachers and completed over $500,000 in necessary renovations to open the new Southeast Elementary Academy on time for the 2005 academic year. This Walton Family Foundation Grant will further enhance Friendship’s capacity to bring the highest quality educational services to Southeast students and community.


Programs/Services

AALEAD’s Summer Programs Have Record Enrollment
Thanks to Rosetta Lai, VP for Development and External Affairs, for this update.

About 180 children and youth are enrolled in AALEAD’s four summer programs at Bancroft, Sacred Heart, Asbury Church, and the AALEAD Center. Each program carries a theme, e.g. politics and government, with music, dance, art, writing and field trips incorporated into each theme. The youth in the Asbury Church program demonstrate strong math skills, so a club has been formed to make math fun and exciting. At Bancroft, the children look forward to their weekly trip to the pool. The summer programs will culminate in a Talent Show on August 3 at All Souls’ Church.

CMHS Publication Documents Model
Thanks to Executive Director Dennis Hunt for this update.

The Center for Multicultural Human Services (CMHS) is well on its way to becoming a recognized technical assistance provider for communities nationwide that are seeking guidance in developing mental health and social service systems that are more responsive to the needs of immigrant and refugee populations. Through funding from the Robert Wood Johnson Foundation, CMHS has been identifying lessons learned while validating and codifying elements of its practice model that have made the organization effective in serving culturally diverse children and families. One of the products of the Robert Wood Johnson project is a new publication, Pioneering Multicultural Mental Health and Human Services: A Case History of the Center for Multicultural Human Services, which documents the evolution of the CMHS model over the last 25 years. The manual will be available for purchase on the CMHS website in late July or early August.

As a direct result of their work with CMHS over the last year, the Robert Wood Johnson Foundation has allocated $7 million for a new national initiative entitled Caring Across Communities. This new program will award grants to organizations to address the mental health needs of refugee and immigrant children.

Heads Up Summer Program Kicks Off
Thanks to Michelle deBaroncelli, Development Manager, for this update.

On Monday, June 26, Heads Up launched its tenth summer of learning. With 800 kids enrolled and a record 143 college student tutors teaching them, it looks to be another exceptional summer experience for everyone in Heads Up. During the five-week summer session, elementary students will attend the program each afternoon (after DC Public Schools’ morning summer school) and work on building skills in literacy and conflict resolution. Another key part of the program is a focus on project-based learning with each class choosing a theme and producing a project. In past summers, tutors have led their young charges to discover the worlds beneath the ocean, the history of African American art, the importance of proper nutrition, and the history of DC neighborhoods.

The project-based learning curriculum culminates in the Heads Up Project Fair—an event that showcases the projects that classes will have worked on during the summer. The fair displays the talents and abilities of students; recognizes Heads Up’s community supporters and partners; and celebrates undergraduate, parent, and neighborhood volunteers. This year’s fair will be held at McKinley High School on July 29.

The Project Fair will also be an event to celebrate Heads Up’s tenth anniversary and honor several people who have supported the organization since its founding. Heads Up Executive Director Darin McKeever said, “Heads Up would not be as successful as it is today without the help and support of some key individuals. We wanted to use the Project Fair—which is already an annual celebration for us—to laud not only our kids and tutors but also some true Heads Up heroes.”

LAYC Offers First LAYC Youth Tennis Camp for Students in Ward 4
Thanks to Jim Whitney, Director of Communications, for this update.

This summer, middle school students in Washington, DC’s Ward 4 have a new way to learn how to play tennis.

The Latin American Youth Center (LAYC), in partnership with the Washington district of the United States Tennis Association and the DC Department of Parks and Recreation (DPR), is offering the first-ever LAYC Youth Tennis Camp for boys and girls aged 12 to 14.

The three-week camp, at Fort Stevens Recreation Center on 14th and Van Buren Street, NW, teaches young people how to play tennis and provides valuable education about the importance of good nutrition and fitness. There are two three-week sessions. The first session began on June 26, and the second session begins July 17.

Participants in the camp receive high-quality instruction that will equip them with the skills, knowledge, and equipment to play tennis for fun and to get good exercise. The camp includes four hours of tennis and 30 minutes of fitness classes daily. Participants also benefit from coaching and mentoring.

Mike Leon, LAYC’s Ward 4 program coordinator, saw the need to reach at-risk middle school youth in the ward with high-quality summer programs and worked with Denise Skinner, Executive Director of USTA/Washington Tennis Association, and DPR to create the camp.

Leon said, “The camp is a great way for kids to learn a new sport and have fun, while also getting valuable information about the importance of exercise and fitness. It’s been terrific to partner with the USTA/Washington Tennis Association and DPR to offer the camp and to introduce tennis to these young people in our community.”

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Impact/Outcomes

CentroNía Family Literacy Program Shows Tutoring Works
Thanks to Isabel Barranzuela, Communications Associate, for this update.

CentroNía’s Family Book Clubs program is making progress towards its goal of strengthening child development and partnerships with parents. Twenty-three parent coaches have committed to begin neighborhood book clubs which focus on increasing parents’ understanding of how children learn and children’s early language and literacy development through parent-child reading. The three training sessions were well attended, and parents have begun securing their book club sites, recruiting other parents, and retrieving books and materials from CentroNía. Ten book clubs will be operational by the end of September 2006.

During the 2005-2006 school year, 167 students successfully participated and completed CentroNía’s one-on-one math and reading tutoring program. The review of the end-of-year data indicates an average gain of two grade levels in reading and one grade level in mathematics. On July 3, the summer tutoring and enrichment programming began with 21 students participating.

CentroNía continues to expand enrichment support for all students receiving tutoring within the Center. One external site, San Miguel Middle School and 12 of their students, received reading tutoring last year, and their tutoring was complemented with a enrichment component titled, "Creative Writing and Photography as a Tool for Literacy." This new component integrates the Family Literacy Program with the School Age Program. Students who only last year were struggling with reading held an exhibition, attended by parents and community members, to showcase their creative writing and photography work.

The Family Literacy Program's goal of exporting the program model is progressing as planned. CentroNía will continue to support the Family Literacy Tutoring Model in two elementary schools and one middle school. Additional schools will be added to the roster at the start of the 2006-2007 school year.

Mary’s Center for Maternal and Child Care
Thanks to Vanessa DeCarbo, Director of Advocacy and Communications, for this update.

Mary’s Center for Maternal and Child Care recently presented success outcomes of its Healthy Families Program at two events, the first hosted by the Board on Children, Youth, and Families of the National Research Council and the Institute of Medicine, and the second, Project THRIVE Policy Roundtable, hosted by the National Centers for Children and Poverty. Of 162 participating at-risk families who received comprehensive prenatal intervention and support services after screening pregnant mothers for depression, compared to 56 non-participating homes, families who received consistent services for a minimum of a six-month period, prior to the birth of their child, saw the following long-term outcomes:

• Reduction in mental health problems among families;
  
• Improved detection of developmental/school readiness issues in young children; and
  
• Children who enter school better prepared to learn (physically, cognitively, socially, and emotionally).

Mary’s Center’s Healthy Families Program model is based upon standards for best practices that incorporate training, monitoring outcomes, and proven curriculum. The implication of these findings indicates that the earlier the intervention and ability to reduce family risk factors that increase situational depression (such as housing, job placement, education), the greater the ability to prevent post partum depression. Decreasing depression leads directly to healthier families and increasing opportunities for success among the youth in our communities.

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Awards and Recognition

College Summit Recognized by Princeton Review
Thanks to Omar Garriott, Senior Coordinator of Marketing Strategy and Public Policy, for this update.

College Summit was recently selected by The Princeton Review as one of the 112 "premier organizations offering college grads the best entry-level job opportunities on the market," and was profiled extensively in its Best Entry Level Jobs, 2007 Edition. The publication is updated annually and has been newly revised for 2007. According to The Princeton Review, it is "the essential guide for job-seeking recent college grads." In generating the company profiles featured in the guide, The Princeton Review conducted hundreds of interviews with current and former entry-level employees as well as company officials. The book informs recent grads not only where the best entry-level opportunities are, but also how to apply and start climbing the corporate (or nonprofit) ladder. Check out the chapter on College Summit.

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2006 KIDS COUNT Data Book Released

The Annie E. Casey Foundation's 2006 KIDS COUNT Data Book is now available. The 17th annual national and state-by-state study profiles the well-being of America's children, and seeks to enrich discussions concerning ways to secure better futures for all kids.

Overall the Foundation found that nationwide, fewer teenagers are having babies or dropping out of high school since the start of the decade, but slightly more live in poverty with parents who don't work year round. The results for the National Capital Region were somewhat of a mixed bag--for example, Maryland has been successful in reducing the number of children living in poverty, but is still struggling with high teen death and infant mortality rates. And in Washington DC, the percentage of children living in poverty decreased slightly, but is still almost twice the national average. Virginia saw improvements in educational indicators but experienced slight increases in certain poverty indicators, although the number of children living in poverty in Virginia is lower than the national average.

The annual Data Book ranks states on 10 key measures and provides data on child health, education, and the economic condition of families. This year, the Casey Foundation also looks at the critical role that early childhood development plays in preparing millions of American children for success in school and life. Casey also discusses ways to support family-based child-care providers.

According to Annie E. Casey Foundation Vice President Ralph Smith, who is also a VPP Board Member, “The KIDS COUNT Data Book is a critical resource for understanding the needs and conditions of disadvantaged children in each state and across the country as a whole. We’re grateful to our partners for sharing this information with policymakers, practitioners, advocates, and citizens to enrich discussions about how to secure better futures for all children." The 2006 KIDS COUNT Data Book materials can be downloaded online.

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