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LEADERSHIP AND PHILANTHROPY

LEADERSHIP AND PHILANTHROPY. Challenges for CVOs and CPOs. Outline . American Jewish Philanthropy: Private and Public American Philanthropy Israeli Philanthropy Future Projections. Definitional Issues: What is a Jewish Foundation? . Founders Jewish? Trustees Jewish?

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LEADERSHIP AND PHILANTHROPY

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  1. LEADERSHIP AND PHILANTHROPY Challenges for CVOs and CPOs

  2. Outline • American Jewish Philanthropy: Private and Public • American Philanthropy • Israeli Philanthropy • Future Projections

  3. Definitional Issues: What is a Jewish Foundation? • Founders Jewish? Trustees Jewish? Jewish purpose in charter and operating documents? Jewish beneficiaries? • Kresge Foundation/Ford Foundation • Fohs Foundation • Dan Rose Philanthropy

  4. Jewish Foundations • 60,000 of which >10,000 are Jewish (1:6 vs.1:50) • Huge growth in field (Doubling in 90’s-both #s and $) • Family foundation growth:1999-2003: 32.8% • Dollar growth in family foundations: 24.8% • More than half of family foundations gave less than $50,000 in 2003; 2/3s have assets under $1 million

  5. Jewish Foundations Study (Tobin, et. al) • Three identified needs: • Information Collection and Dissemination • Networking and Partnership Building • Professional Development Generational Issues Staffing Issues

  6. Mega Gifts in American Philanthropy (Tobin, Solomon and Karp) • All gifts (865) >$10,000,000 between 1995 and 2000 totaling $29.3 billion • 22% of the gifts and 18% of the funds came from Jews • 9.6% (18) of the Jewish gifts and 6% of the Jewish money ($318.25 million) went to Jewish causes • Virtually all (86%) went to education, health care or arts/culture

  7. Jewish Federations

  8. Analysis-Federations • Annual campaign as core strategy is failing • Ideology and marketplace issues-Kol Yisroael Arevim Zeh Ba Zeh • Every decade-20% loss in number of donors; 15% loss in purchasing power • Last 5 years: 14.3% inflation- 3.2% campaign increase; 13% decline in donors • Supply side vs. Demand side Issues

  9. Attributes of Success • AFFLUENCE OF JEWISH COMMUNITY • JEWS SELF-IDENTIFIED AS JEWS • FEELINGS OF INSECURITY • ORGANIC CONNECTION TO ISRAEL • CONCEPT OF A SINGLE GIFT AND KEHILLA • NO COMPETITION

  10. Consequences • Long established…..but denied • Only 2 cities in largest 40 have experienced population growth • Donors tend to be older and largest gifts are flat • Only 35 gifts > $1 Million in 2002 • Role of special campaigns • Israel Getting 1/3 of what it received in 1948 from Federations—constant dollars

  11. Private Philanthropic Growth in Public Sphere • 1990 164 Supporting Foundations • 2000 900 Supporting Foundations • 1990 <2500 Donor advised funds • 2000 11,000 Donor advised funds

  12. Differences between Public and Private Jewish Philanthropy • Democracy? • Vanity? • Patience? • Performance? • Balance between Sustainability and Innovation?

  13. Private Philanthropy: Israel • Private donors provide Israeli NGO’s with $1,630,000,000: • World Jewry 88.2%-92.1% • Israelis 7.9%-11.8%

  14. American Philanthropic Trends • Doubling of overseas giving in last threeyears • Doubling of American philanthropy in last 10 years • Increasing Congressional scrutiny of Sector with significant risks (e.g. Elimination of Estate Taxes) • Ethical lapses making headlines • Gates and Buffet (now 10% of all foundation giving) • Impact of high tech entrepreneurs

  15. Foundation Distribution by Cause • Arts and Culture 12.5% • Education 24.0 • Environment 6.3 • Health 20.8 • Human Services 14.8 • International affairs 3.6 • Public affairs 11.2 • Religion 2.5 • Science 3.1 • Other 1.3

  16. Implications for Practice • Money and Good Works • Kehilla is dying (pleasures of being kept) • Everyone is a Development Officer • Emergence of Transparency • Performance based Development • Role of Research • Inspiration and Perspiration • Branding Issues: JFS/JVS

  17. Implications within Agencies • Chasing mission or chasing money • Impact philanthropy • Internal pressures: program vs. admin • Structure of board meeting • Selection of board members: foundations • 70% foundation giving-local • 95+% checkbooks • Give or get policies

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