2107: How Will We Be Judged?

In 1991, futurist and noted author Peter Schwartz framed a remarkable period of transformation, which he described as the “long boom”—spanning from 1980 to 2020—in The Art of the Long View. Schwartz sees a period of economic and societal transformation driven by a continuing stream of new technology and the relentless process of globalization. Today, well past the half-way point of the “long boom,” the entrepreneurs of this period have generated a wealth creation of near unimaginable levels, with great impact and implications—economically, politically, socially, and philanthropically.

In the midst of this period, comparisons are often made to the philanthropy of more than a hundred years ago that came from the wealth created with the Industrial Revolution at the turn of the 20th century led by industrialists like Vanderbilt, Rockefeller, Carnegie, Flager, and Morgan. More »

VPP Speaker Series Features Muhammad Yunus

Earlier this week, more than 30 VPP investors and donors gathered for a private dialogue with Grameen Bank Founder and 2006 Nobel Peace Prize Laureate Muhammad Yunus. Yunus spoke of how microcredit has proved to be an important liberating force in societies where women in particular have to struggle against repressive social and economic conditions. More»

2107: How Will We Be Judged?

Editor’s Note: Mario Morino was a keynote speaker for Legacy 2007, the first annual conference by the National Philanthropic Trust. The speech was, in large part, based on his Chairman’s Corner “Business Entrepreneurs & Philanthropy: Potential and Pitfalls,” but was presented within the context of the actions by the business entrepreneurs of 1980 to 2020 to make the world a better place. The full speech is available. This Chairman’s column poses provocative questions to challenge our thinking and adds additional suggestions.

In 1991, futurist and noted author Peter Schwartz framed a remarkable period of transformation, which he described as the “long boom”—spanning from 1980 to 2020—in The Art of the Long View. Schwartz sees a period of economic and societal transformation driven by a continuing stream of new technology and the relentless process of globalization. Today, well past the half-way point of the “long boom,” the entrepreneurs of this period have generated a wealth creation of near unimaginable levels, with great impact and implications—economically, politically, socially, and philanthropically.

In the midst of this period, comparisons are often made to the philanthropy of more than a hundred years ago that came from the wealth created with the Industrial Revolution at the turn of the 20th century led by industrialists like Vanderbilt, Rockefeller, Carnegie, Flager, and Morgan. There are countless examples of how these families created great value and changed the American landscape in positive and lasting ways. Yet, despite their accomplishments, critics termed them “robber barons,” and Mark Twain and Charles Dudley Warner wrote of the waste and ridiculous excess of the era in The Gilded Age: A Tale of Today.

Even now, more than a century later, it is not clear in some circles how history judges these industrialist leaders against the scale of “robber barons” to philanthropists. It is prudent to similarly consider the positives and negatives that this “long boom” cadre of new wealth will have on society. I am fortunate to have been an entrepreneur who benefited from this period and have focused the last 15 years on philanthropy and civic engagement. With this context, I pose several questions to myself and others who have created wealth and are turning their focus to benefit society.

• How will our actions to better the world be judged in 2107?

• Will history deem our actions as leading to lasting, meaningful, and positive change, or will they instead see us as narrow, greedy, arrogant, and ineffective? Or, even worse, as causing unintended consequences with adverse impact on society?

• Will history conclude that our generations of wealth helped unify an increasingly divided America and world? Or will it find that we created our own virtual and isolated world populated by those with great wealth that disconnected from society at large as social and economic gaps widened? This question has already been posed in Robert Frank’s Richistan.

I hope we will respond to the remarkable opportunity that lies before us, so aptly described by John Gardner:

“There occurs at breathtaking moments in history an exhilarating burst of energy and motivation, of hope and zest and imagination, and a severing of the bonds that normally hold in check the full release of human possibilities. A door is opened..."

I believe we are in the midst of one of those breathtaking moments. To seize this moment, it would serve us well to learn from those who have plowed these fields before us. As Carl Sagan said, “You have to know the past to understand the present.” And Winston Churchill emphasized, “The farther backward you can look, the farther forward you can see.”

I hope we will be thoughtful, willing to learn from history, respectful of the success and failures that preceded our efforts, while bringing energy, resources, and innovation to make the world a better place.

There is no assurance of how the new philanthropy emanating from the “long boom” will be viewed in 2107. In my relatively limited 15 years of observing the transition of business entrepreneurs to a broader philanthropic venue and having lived it myself, I suggest that the success from a social and civic standpoint—the real fruits of our labors—will be achieved or negated based on how well some of the challenges are encountered and handled. This has been conclusively demonstrated to me in our work with Venture Philanthropy Partners, where what we thought so simple, obvious, and ready for our “business-like approach” proved incredibly complex and involved—needing skills well beyond our business expertise. What we learned is that true impact comes not only from what we do but also is the result of the thoughtfulness, empathy, humility, and, yes, effectiveness of how we do it.

The “long boom” as characterized by Schwartz is alive and well. We indeed find ourselves in a truly remarkable period. Business entrepreneurs will have a stunning impact on philanthropy, global issues, and society. In many cases they already have, driving change through political engagement, civic involvement, and through their philanthropy.

Some additional suggestions to entrepreneurs from my own experiences include:

▪ Be meaningful. Satisfy your personal interests and needs, but move beyond your comfort zone to get engaged with the truly formidable challenges facing our society.

▪ Be willing to learn. Seek the advice of others who have gone before you for they can share valuable insights and lessons learned to increase your chance of success.

▪ Be transparent. Let people know what you are doing and the logic and criteria guiding your actions and decisions.

▪ Invite scrutiny. Make yourself and your efforts publicly accountable, and be open to criticism and provocation as a means to becoming more effective.

▪ Be collaborative with purpose. Pay heed to the African proverb, “If you wish to go quickly, go alone, but if you wish to go, far go together.”

▪ Be yourself. But do so with a large dose of empathy and humility. Don’t relegate or delegate away the conviction, energy, and resourcefulness that helped you succeed to others. They may bring a different value set to carrying out your philanthropic purpose.

▪ Have positive impact. Seek actions that lead to systemic change, reshape sectors, and strive for fundamental change to the status quo. Insist on ambitious (but realistic) goals, clarity of mission, raising the “talent bar” with excellent leadership, accountability, and building great institutions that can deliver truly, lasting, relevant change.

As Gardner said, “A door is opened..." The possibilities—and unintended consequences—are limitless. Our challenge is to ensure that the impact we have is positive and lasting. One way we can help ensure our civic and philanthropic endeavors have positive impact is to step back, learn, and adapt to the ways of the world beyond the private sector. The real magic happens when we blend our business expertise and entrepreneurial ways with the lessons of history and the learning of the social sector.

And as we take actions to better the world, always keep in mind a sobering premise: In this arena when we experiment and learn new ways to do things, there is often a direct intervening and influencing of people’s lives—children and families. The stakes become very personal, much higher than what we knew in the private sector.

Let’s hope that those who judge us a hundred years from now will say, “The entrepreneurs and their families of the 'long boom of 1980 to 2020' seized a remarkable time in history and were instrumental in making the world a better, safer place.”

- Mario Morino

VPP Speaker Series Features Muhammad Yunus

Jack Davies and Carol Thompson Cole greet Muhammad Yunus.

Earlier this week, more than 30 VPP investors and donors gathered for a private dialogue with Grameen Bank Founder and 2006 Nobel Peace Prize Laureate Muhammad Yunus. Yunus spoke of how microcredit has proved to be an important liberating force in societies where women in particular have to struggle against repressive social and economic conditions.The vast majority (97%) of the Bank’s customers are women, who use microloans to start their own profit-making enterprises, mainly in agriculture, crafts, or services.

Yunus shared the story of how he founded Grameen in 1976 after seeing how Bangladeshi villagers were paying loansharks exorbitant interest rates on loans. He repaid the loans of the villagers for a total of $37 out of his pocket, and the idea for Grameen was born. Yunus described his struggle to convince others that loans to poor people without any financial security could be a profitable business that opens up endless possibilities for the poor by creating self-employment opportunities. As he explained, “Poverty is not created by the poor, it is created by systems.”

Today, Grameen Bank has 2,422 branches, employs more than 20,000 people, and has loaned more than $6 billion since its founding. The Bank has a 99% repayment rate and has been profitable in all but three years since it was founded. It has created a system that empowers the poor by helping them become entrepreneurs—according to Yunus, 64% of Grameen borrowers have crossed above the poverty line.

He also shared with the group his current efforts to help develop and promote the idea of “social business,” businesses where investors recoup their investment, but don’t necessarily make a profit. For example, Grameen recently partnered with Dannon to create a social business making and selling yogurt with extra nutrients for poor children in Bangladesh.

Yunus also shared his vision for offering financial incentives for the poor to participate in the “university of life”—a program extending to healthcare and education, building a culture of savings and individual responsibility. Finally, Yunus announced the launch of Grameen America, a new venture built on the same microfinance principles that have helped millions of lives in developing countries, now for those in the United States.

VPP President and CEO Carol Thompson Cole said, “We were all greatly inspired by Professor Yunus’ story of how he founded Grameen Bank and his relentless focus on the eradication of poverty. He is a clear demonstration of the tremendous difference one person can make, as well as the importance of investing in social entrepreneurs. We were delighted to have the opportunity to share his remarkable work with the VPP investor community. A special thank you to VPP Investor Kathy Bushkin CalvinCalvin, COO and EVP of the UN Foundation, for helping make this event possible.”

VPP Stakeholders Part of Washingtonian's "Power 150"

Washingtonian magazine’s “Power 150” list of “the people who make things happen” in the arts, business, education, sports, real estate, and philanthropy, included a number of VPP investors, donors, and board members, as well as VPP President and CEO Carol Thompson Cole. The list includes:

VPP
▪ Carol Thompson Cole: “The longtime high-ranking DC official now runs the philanthropy begun by Mario Morino, Raul Fernandez, and Mark Warner.”

VPP Investors
▪ David Bradley: “The wonky publisher moved the Atlantic to Washington and is importing big-name talent.”
▪ Steve Case: “Will the AOL cofounder’s new healthcare venture be Washington’s next Fortune 500 company?”
▪ Donald Graham (Co-Investor Philip Graham Fund): “Guardian of one of America’s great newspapers, he’s smartly investing in the Washington Post Company’s education division and Web site.”
▪ Jim Kimsey: “The former AOL exec’s foundation is active in DC’s public schools and neighborhoods, and he’s a regular supporter of Georgetown University, the Kennedy Center, and the Washington National Opera.”
▪ Ted Leonsis: “Capitals hockey is slumping, but he helped bring two once-in-a-generation stars to Washington – Michael Jordan and Alex Ovechkin.”
▪ Milton Peterson: “Getting National Harbor off the drawing board took determination – and clout.”
▪ Joe Robert: “A real-estate entrepreneur whose annual Fight Night – where power brokers don tuxedos and smoke cigars – delivers millions for children’s education and healthcare.”
Mark Warner: “His wealth and connections keep the ex-governor in the game in Virginia.”

VPP Investors and Board
▪ Raul Fernandez: “CEO of ObjectVideo, he leads a generation of young tech moguls who cut their teeth in the 1990s boom.”
▪ Michele Hagans: “Daughter of late real-estate magnate Ted Hagans, she’s a big developer in Northeast DC.”

VPP Board Members
▪ Terri Lee Freeman: “President of the Community Foundation, which handed out more than $90 million in grants last year.”
▪ Artis Hampshire-Cowan: “A Howard University vice president and former Wayne Curry aide. ‘One of a handful of key go-to people in Prince George’s,’ says one observer.”

VPP Board Advisors
▪ Bob Templin: “His 64,000 student Northern Virginia Community College cranks out much-needed workers for area tech and healthcare companies.”

VPP Donors
▪ Sudhaker Shenoy: “Founder of Information Management Consultants and informal leader of the community of Indian tech execs.”

Honorary VPP Board Member Julie Rogers was also profiled as a "Hidden Power" in the same issue. "…..Rogers has turned the [Eugene and Agnes E. Meyer Foundation] into a quiet, innovative force for change."

VPP is indeed fortunate to have so many truly influential, and, more importantly, committed and caring individuals involved—from investors, to donors, to board members and advisors, to President and CEO Carol Thompson Cole.

Morino Speech Opens National Philanthropic Trust Event

VPP Chairman Mario Morino urged an audience of more than 100 to carefully consider the legacy new philanthropists are creating today in his opening keynote at National Philanthropy Trust's "Legacy 07" event. Held in Philadelphia on September 28, the event brought together individual philanthropists, wealth advisors, and leaders in the philanthropic and nonprofit fields for a provocative dialogue and exploration of some key issues in giving.

"Business Entrepreneurs & Philanthropy: Potential & Pitfalls" (excerpted in this month's Chairman's Corner) provocatively raised questions about new philanthropists, such as "Will history deem our actions as leading to lasting, meaningful, and positive change, or will they instead see us as narrow, greedy, arrogant, and ineffective? Or, even worse, as causing unintended consequences with adverse impact on society?" Morino went on to describe the characteristics entrepreneurs bring to philanthropy—for better or worse—and some of the things he wished he had known when he entered the field 15 years ago.

"I thought his talk was engaging and profound. I especially liked his acknowledgement that venture philanthropy, while engaging hundreds of new donors with its high impact style of giving, capacity building, and measurements of success, also carries with it the risk of hubris, of business types who think they know it all because they were successful in the corporate world, " shared Peter Hero, former President of the Community Foundation Silicon Valley who also spoke at the event.

Other speakers included Dr. Graham Davies, Director, Global Exchange for Social Investment and Trustee, China Children and Teenager’s Fund; and Dr. Claire Gaudiani, Professor, New York University Center for Philanthropy and Fundraising.

Management Changes

Leadership Transition at AALEAD
Thanks to Rosetta Lai, Interim Executive Director, for this update.

After 13 years, Sandy Dang, founder and Executive Director of AALEAD, stepped down on September 30. Rosetta Lai was named Interim Executive Director and Katherine Lum joined as Chief Operating Officer.

Dang said, “It is time for me to make a change and I look forward to the next chapter in my life. I leave AALEAD knowing that we have made a difference and with the full confidence that AALEAD will continue its work. We have wonderful families. We have an excellent Board of Directors who give so much of themselves to this organization. And we have a strong staff that will carry the work forward. Rosetta is no stranger to our organization—she has been in charge of External Affairs and Development for two years. She cares deeply about the organization and brings a wonderful combination of business and nonprofit experience to us.”

Dang continued, “Katherine is an outstanding addition to our team. In her role as COO, she will help us further refine and develop our management systems and procedures so that we can more effectively deliver our programs to Asian American children and families throughout the Washington, DC region. Katherine brings excellent management and financial expertise coupled with a sincere passion for our mission and the children and families we serve.”

“Rosetta brings a unique blend of experiences and talent honed throughout her career as a corporate executive, educator, and leader in Asian American nonprofit organizations. Her passion, vision and commitment to AALEAD will serve us well through this transition. She is a strong leader and will continue the work of our founder Sandy Dang,” said Teresa Lee, Board Chair.

A reception on October 9 will celebrate AALEAD’s achievements and thank Dang for her service.

LAYC Welcomes Advocacy Director
Thanks to Lori Kaplan, Executive Director, for this update.

Ricardo Flores has joined the Latin American Youth Center (LAYC) as the Director of Advocacy. Flores graduated from law school at the City University of New York in 1999. He began his legal career as a NAPIL (National Association of Public Interest Law) Fellow at the Public Justice Center (PJC), representing immigrant workers on Maryland’s Eastern Shore. After the fellowship ended in 2001, he continued with litigation and policy advocacy work until becoming the PJC’s Public Policy Director in 2005. As the Director of Public Policy, and drawing on his pre-law school experience as a community organizer, he orchestrated and participated in numerous successful legislative initiatives in the areas of child welfare, civil rights, education, health care, immigrant rights, prisoner rights, and tenant rights.

As a member of the LAYC Senior Team, Flores will lead the educational, youth development, juvenile justice, employment-related, immigration, and systems change advocacy work that the LAYC is involved in daily in the District of Columbia and Maryland. The LAYC’s advocacy work involves participation in local, regional and national coalitions; staff-led advocacy efforts; and, most importantly, youth-led advocacy work, insuring that the voices of young people themselves are heard on issues important to their daily lives.

Expansion Actions

SFF/MAPCS Soars in Growth Mode
Thanks to Ingrid Padgett, Director of Development, for this update.

The 2007-2008 school year has been a period of exciting growth and organizational development for the See Forever Foundation (SFF) and Maya Angelou Public Charter School (MAPCS). The school’s design has expanded from the original two high school campuses with a third campus serving middle school students in Ward 7 of the District. In addition, SFF now operates an extended-day educational program at the Oak Hill Academy, located in the long-term secure facility for DC youth who have been adjudicated delinquent. With this growth, SFF/MAPCS now serves nearly 500 youth.

Substantial new resources support SFF/MAPCS during this growth mode, including a major new grant/investment from the Edna McConnell Clark Foundation of $2 million over the next 22 months. SFF/MAPCS Executive Director Cynthia Robbins said, “Exceptional growth over the past year has allowed us to maintain and improve upon our high school campuses, open a middle school in a remarkably transformed DC Public Schools (DCPS) facility, and return to our roots of working with teens involved in the juvenile justice system. With all this growth comes the need to build new systems and identify new resources. We are thrilled to have the continued and deepened support of the Clark Foundation as we aim to sharpen our systems and refine our strategies to help even more 'at-promise' youth reach their potential.”

Key priorities for the 2007-2008 year are to develop the resources, systems, staffing, and infrastructure to support a larger learning community. In meeting these priorities, the See Forever Foundation is also in search of office space, ideally near one or more of its campuses. Please contact SFF/MAPCS’ executive director via email, Cynthia Robbins, or telephone at 202-797-8250 if you can assist the foundation’s search for 2,500 to 3,000 square feet, proximate to the Metro and reasonable parking.

Announcements of Note

All Alexandria Tip-Off Challenge Benefits CFNC
Thanks to Kate Lyng, Manager of Development, for this update.

Alexandria’s Mayor Bill Euille will officially announce the “All Alexandria Tip-Off Challenge” on October 19, at City Hall. The December 1 event will benefit the Child and Family Network Centers (CFNC) and Hopkins House Association, another organization in Alexandria serving children.

Former Governor and VPP cofounder Mark Warner will serve as Honorary Chair. The T.C. Williams new gymnasium will be dedicated to Alexandria native Earl Lloyd, the NBA’s first African American player. Other event highlights include a “shot-at-a-car” contest and two basketball games featuring teams from the T.C. Williams, St. Stephen's, Bishop Ireton and Episcopal High Schools.

A capacity crowd of 3,000 is expected. Tickets will be sold at the door for $5. For more info, visit All Alexandria Tip-Off Challenge.

Mary’s Center Launches New Website
Thanks to Yesenia Sarabia-Peiker, Director of Advocacy and Communications, for this update.

Mary’s Center for Maternal and Child Care launched its new website on September 30, adding a photo gallery, more job opportunity listings, and a press room. Users can access additional information about the Center, including senior staff bios and current news releases. Supporters can now make secure online donations. A video showcasing Mary’s Center programs and services is also part of the new look.

SEED Program To Participate in NCAN Conference
Thanks to Elizabeth Frazier, Director of Communications, for this update.

SEED’s Alumni Relations program has been selected to participate in the Best Practices Gallery at the upcoming NCAN (National College Access Network) Conference in Los Angeles, CA. The gallery serves as an excellent opportunity for college access and success programs to share best practices (tools, lessons learned, etc.) with colleagues from across the country.

SEED, along with four other College Prep and Public Charter Schools, was specifically chosen to participate in the gallery because of its program tools that support college transition and success efforts. Although there is growing interest in alumni and college support models, structured postsecondary transitional support and monitoring programs are still unique to the college access and retention world.

The NCAN conference attracts more than 500 practitioners, researchers, and policymakers with expertise in secondary and postsecondary education. Erin Gruwell, author of The Freedom Writers Diary - How a Teacher and 150 Teens Used Writing to Change Themselves and the World Around Them, will be a keynote speaker at the conference.

Investment Partner Opportunities

Friendship Public Charter School seeks a General Counsel to join its senior administrative staff.
The General Counsel oversees all legal issues that arise in the daily operations of Friendship Public Charter School and represents Friendship and its Governing Board in all legal concerns. Seasoned legal professionals with a minimum of five years successful experience practicing law are invited to send a cover letter and resume to careers@friendshipschools.org.

Mary’s Center seeks a Chief Development Officer (CDO). The CDO is responsible for the overall leadership and management of the development function of the organization and for dramatically increasing the organization’s revenue from fundraising. He/she will work closely with the CEO and the Board of Directors and other key advisory boards and appropriate senior staff to develop and execute a comprehensive fundraising plan that supports the organization’s mission and fulfills the support requirements of a rapid growth plan. Please send resume or CV and salary requirements to hr@maryscenter.org or 202-332-0541. EEO/AA/M/F/D/V

Still recruiting for:
Heads Up Executive Director
Mary’s Center Vice President of Medicine

New Book Examines Practices of High-Impact Nonprofits

Forces for Good: The Six Practices of High-Impact Nonprofits will be released later this month. Authored by Leslie Crutchfield and Heather McLeod Grant, the book reveals the six powerful practices of 12 high-impact nonprofits and tells their stories. A number of events are scheduled across the country to introduce the book.

VPP Investor Steve Case wrote the book's Foreword, and Chairman Mario Morino and Board Member Ed Skloot provided advance reviews of the book. Share Our Strength, founded by VPP Board Member Billy Shore, is one of the organizations profiled.

Morino said, “We strongly agree with the book’s central premise that high-impact nonprofits work with and through other organizations and systems to deliver even more impact than they could have ever achieved alone. Based on our experiences with VPP, the key lies in truly exemplary leadership that understands and can act on the six practices, building great institutions for lasting, high impact.”