Transparency Talk

Category: "Economic Opportunities" (5 posts)

Glasspockets Find: “Dear Warren” Accounts for Impact of His $30 Billion Gift to the Gates Foundation
March 3, 2017

Buffet Bill MelindaBill & Melinda Gates recently posted their foundation’s annual letter, sharing progress from their work.  This year's letter had a personal twist, revealing how the world's largest private foundation accounts for its progress to a key stakeholder.  The letter, a great example of donor stewardship at the highest levels, details the impact of Warren Buffett’s historic gift to the Gates Foundation. 

In 2006, Buffett’s $30 billion gift to the Gates Foundation was the largest single gift ever made, and it was intended to fight disease and reduce inequity.  Buffett’s gift doubled the foundation’s resources, and helped expand its work in U.S. education, support smallholder farmers and create financial services for the poor.

In “Dear Warren,” Bill and Melinda Gates personally let the Berkshire Hathaway Inc. Chairman know how the Gates Foundation was using his money. 

“To make sure your investment keeps paying higher returns, the world has to save more lives in the future than we’ve saved in the past.”

The couple jokingly reminded Buffett of his penchant for wise spending, such as the time Buffett treated Bill Gates to a Hong Kong McDonald’s meal and used coupons.  With handwritten notes, photos and infographics, the couple showed Buffett that they too were wisely investing Buffet’s money to make an impact on global health and improve childhood mortality rates, which contributes to healthy families and stronger economies.  

The letter shows how data and metrics can be used to tell a powerful narrative.  The Gates are careful to say that they are not doing this work alone, and that most of the numbers reflect how many global organizations, including the Gates Foundation, are contributing to saving and improving lives.

“If we could show you only one number that proves how life has changed for the poorest, it would be 122 million—the number of children’s lives saved since 1990,” Bill Gates said in his letter.

Economist1
Source: The Economist via the Bill and Melinda Gates Foundation

Over a 20 year-period since 1990, the rate of childhood mortality has been cut in half, Melinda Gates said.  The Gates Foundation has helped contribute to improved global health through its investment of increasing access to vaccines in poor and developing countries. 

“For every dollar spent on childhood immunizations, you get $44 in economic benefits. That includes saving the money that families lose when a child is sick and a parent can’t work,” Bill Gates said.  

The foundation’s other global health initiatives include reducing newborn mortality, ending malnutrition, family planning and ending poverty.

Bill and Melinda Gates shared how they felt both inspired and compelled by Buffet to wisely and strategically make a philanthropic impact of Buffett’s life earnings.  They affectionately called him the most generous person they know, as well as one of the most competitive people.

Melinda Gates said the Gates are not using Buffet's money for “a grant here and a grant there.”  Rather, the Gates are using Buffett’s gift to build “an ecosystem of partners that shares its genius to improve lives and end disease."

"[You are] counting on us to make good decisions.  That responsibility weighs on us,” Melinda Gates said.  “To make sure your investment keeps paying higher returns, the world has to save more lives in the future than we’ve saved in the past.”

--Melissa Moy

Eye on Golden Philanthropy: Neymar Nets Philanthropic Goals
August 25, 2016

(Melissa Moy is special projects associate for Glasspockets. For more information about Olympians and their philanthropy, visit Glasspockets’ Going for Gold).

Neymar Gold Medal PhotoIn the midst of Olympic fever – when Brazil advanced in the quarterfinals – soccer phenom Neymar posted updates on Facebook and Twitter. 

He paused to promote his treasured Insituto Neymar Jr., which provides free education and health services for children in his impoverished hometown.

“One of my greatest achievements in life, to have the joy of creating the Instituto Neymar Jr. and see those smiles,” Neymar wrote on his personal Facebook page.  “Thank you God for making me able to give joy to the lives of these children and their families!”  

As one of the world’s best athletes and a Spanish FC Barcelona player, Neymar has earned comparisons to former Brazil and Santos forward Pele.  He’s racked up four consecutive Player of the Year awards, the 2011 FIFA Goal of the Year and league titles for Barcelona and Santos. In July, Neymar inked a 5-year contract extension with Barcelona, with an annual $16.9 million salary.

New York Times Soccer Kids
Source: New York Times

On the flip side, Neymar has also gained notoriety for partying with celebrities and repaying $51.7 million in fines and back taxes for tax fraud related to endorsement deals.  His temper has led to multiple penalties; and critics have questioned his conduct and sportsmanship.  Following Brazil’s first gold medal win in Rio, Neymar famously resigned as Brazil’s team captain.  However, the national team has not yet ruled out his return.

Neymar is a gifted athlete with an impressive online presence: more than 58.7 million Facebook likes; 57 million Instagram followers; and 24 million Twitter followers.  Earlier this year, ESPN dubbed him the world’s fourth most famous athlete, and Neymar topped U.K. media analysis firm SportsPro’s list as the most marketable athlete in 2012 and 2013. 

What’s interesting is how Neymar leverages his fame and global platform to draw attention to the causes he cares about. 

Neymar & KIdsPassionate Philanthropy

Neymar has targeted his philanthropy efforts toward impoverished communities in Brazil with a focus on clean water and sanitation, as well as education and health services for children.

The fiery and energetic Neymar has regularly partnered with Waves for Water to bring clean water ccto impoverished areas in Brazil.  In 2011, only 48% of rural Brazilian residents had adequate sanitation and 87% had access to improved water, according to WASHFunders.org, a Foundation Center collaborative project that tracks funding and data related to water, sanitation and hygiene.  Additionally, 3.53 deaths per 100,000 Brazilians were attributed to diarrheal disease.

“It makes me really happy to do something for these kids and their families.”

In 2014, Neymar leveraged his celebrity to new heights in a partnership with PayPal and Waves for Water through a global campaign tied to the 2014 World Cup held in Brazil. 

Since more than 3.2 billion people watched at least one live minute of the 2010 tournament in South Africa, this global water campaign banked on the World Cup’s popularity and PayPal’s global platform. 

The strategic campaign cleverly allowed fans to buy water filters for Brazilian cities with the bonus of an homage to the donors’ home countries.  For example, donations from the United States were used to buy water filters for Sao Paulo, where the U.S. soccer team stayed during the tournament.  And PayPal partner eBay auctioned off autographed Neymar memorabilia to boost the campaign proceeds.

Neymar KIDS INSTITUTEHowever, Neymar’s heart remains with his hometown.  In December 2014, Neymar launched the Instituto Neymar Jr. in Praia Grande, a coastal city outside of Sao Paulo.

The facility, which provides education and health services for children, is just a few blocks from where Neymar grew up on B Street in an impoverished community plagued with crime, drugs and unemployment.  It was in this neighborhood that Neymar played street games and futsol, an indoor version of soccer.

The soccer star values the opportunity to give back to his community, and he said it spurs him to excel professionally.  “It makes me really happy to do something for these kids and their families,” Neymar said in an in an ESPN story.

Neymar donated $6 million to the facility and also attracted additional sponsorship contributions to support the effort.  About 2,400 children, ages 7 to 14, attend the facility for two hours before or after school.  The children have free access to computers, dental and medical services, and can study English, Spanish and Portuguese.  Additionally, adults attend vocational classes in the evenings.

The institute is a family affair.  Neymar’s mother serves as the chief executive of the institute, and Neymar and his father spend time with the children. 

“I could not come to Brazil and not visit (the institute),” Neymar said.  “It’s my family’s dream, and I am always happy every time I visit.  It makes me want to keep growing this and doing this the right way.”

What’s Next?

With Neymar’s huge success and talent in sports, marketing, social media, endorsements and philanthropy at age 24, Neymar knows no limits. 

The next few years will be an exciting time for Neymar and soccer fans.  He will no doubt seamlessly continue to navigate player contracts and lucrative endorsement deals – $23 million in 2016 – with global brands like Nike, Red Bull, Gillette and Panasonic. 

With his tremendous fan appeal, social media and online presence, one can only imagine the awareness and improvements Neymar can bring to social justice issues in Brazil as well as the impact and influence he can wield in the philanthropic sector, from local to global levels.  All that to say… More, please.

--Melissa Moy

Why the Olympics and Other Major Sporting Events Usually Increase Inequality in the Host City
August 16, 2016

(Stefan Norgaard is Stanford University Tom Ford Fellow in Philanthropy at Ford Foundation. This post first ran in Ford Foundation’s Equals Change blog.)

Stefannorgaard_linkedinAll eyes are on Rio de Janeiro as it hosts the 2016 Summer Olympic Games. While everyone watches and roots for the athletes from their countries to win gold, few will realize that the ones really losing out are residents of Rio from low-income and working class communities.

This is because the development model for major international sporting events—like the Olympics and the World Cup as well as countless national sporting leagues like the NFL—rarely benefits all residents of the cities where the games are held. For example, even though the city of Rio promoted the Olympics to residents by arguing that hosting the games would increase tourism and lead to major urban infrastructure improvements, the likely result will be billons in losses.

In fact, thousands of low-income Brazilians have already been displaced in order to build infrastructure for the games that will largely only benefit wealthy communities. In addition, several contracting companies for the Olympics now face corruption allegations. What was seen as an opportunity to democratize development in Rio has instead become an opportunity for city officials to justify actions that would otherwise never be tolerated—like human rights abuses, forced evictions, and hiding poor people and neighborhoods away from view.

Olympic Rio Police Salary Protest

Sporting Events and Inequality

These challenges are not unique to Rio or the Olympics. During the preparations for the 2010 World Cup in South Africa, FIFA—the governing body for international soccer—discouraged local authorities from upgrading an existing soccer stadium in a working-class neighborhood of Cape Town. The local government had wanted to modernize this stadium and invest in infrastructure in its surrounding neighborhood because it would help reduce inequality in the city. Instead, FIFA forcibly urged and got local authorities to agree to build a new World Cup stadium in a wealthier section of the city.

“The Olympics in Rio...human rights abuses, forced evictions, and hiding poor people and neighborhoods away from view.”

In Cleveland, owners of the Quicken Loans Arena—home of the NBA’s Cavaliers—requested a 50/50 public-private funding split for the arena’s construction amid critical financing concerns for the healthcare system, justice system, and other government agencies in the country surrounding Cleveland.

And across the United States, the Federal Communications Commission’s “Nixon Rule” allows NFL franchise owners to black out games from being locally televised if high-priced tickets do not sell out even though the stadiums where these football games are played are often built with taxpayer money. As a result, it can sometimes be nearly impossible for city residents to watch their home teams play in person or on TV.

Public spending for large sporting events is often justified through an economic development model that says investing in the infrastructure, marketing, and preparations for these events will benefit everyone. But time and time again, we see that with large sporting events, only a select few—usually wealthier and more privileged members of the community—benefit at the expense of everyone else.

An Equitable Development Model for Sporting Events

Cities and communities do not have to displace their working class residents to build sports stadiums and venues. They don’t have to funnel public funding away from public goods or only build infrastructure in wealthy areas in the name of economic development. Instead, cities can adopt an equitable development model for urban planning, which ensures that all city residents have a chance to benefit from major sporting events.

Olympic Rio ProtestWhat would such an approach look like? For starters, there should be a push for the Olympics and other major sporting event bids to more centrally take into consideration the impact of these events on low-income communities and the general public. These international bodies should allow and empower civil society groups to comment on Olympic development plans at an early stage.

It is important to note that major sporting event planning and the Olympic bidding process often start years before construction even occurs. So in theory there should be plenty of opportunities to engage with civil society and broader communities on proposed development plans. However, the Olympics has a compressed and frenzied bidding process that prevents broad citizen involvement and long-term planning. And once a bid is awarded to a host city, planners rarely want any input that would derail their already-approved plans.

While the Olympic host cities have generally not had a strong track record of creating long-term social and economic benefits for everyone, there are some instances where host cities have intended to do good for the broader community. For example, the 2012 London Olympic Games included a proposal to turn the Olympic Village into 6,000 units of affordable housing. Unfortunately, development for the games also led to widespread evictions. Urban regeneration schemes for Canary Wharf and elsewhere in East London—where the games were mostly centered—have led to intense gentrification post-Olympics. And while the London Olympic Planning Committee had good intentions, the results have been quite uneven.

In hosting the 1992 Olympic Games, the city of Barcelona leveraged the opportunity to develop a comprehensive urban renewal plan that helped create new jobs and transform the city’s deteriorating infrastructure by building a new airport and telecommunications network and improving the sewage system.

Philanthropy’s Role in Promoting Equitable Development

What can philanthropy do to ensure to equitable development models for major large sporting events and arenas benefit everyone? Here are some possible courses of action:

  • Lift up untold stories of injustice. For example, Ford’s investigative journalism grantees, such as Agencia Publica, are working to find cases of injustice related to the Rio Olympics and tell them to a broader public. They recently launched a project on the recent militarization of the Rio police in advance of the games.
  • Convene organizations and make civil society connections. What is happening in Brazil is far from unique and philanthropy can connect grassroots and civil society organizations in Rio with organizations in Cape Town, Athens, Qatar, the United States, and elsewhere. Groups can share common stories, brainstorm potential solutions, and consider new global development models for the Olympics, World Cup, other major sporting events, and domestic sporting leagues. 
  • Build community capacity to engage in urban development policies and debates. Community organizations such as the Observatório de Favelas in Brazil and the Sports Fan Coalition in the United States need critical capacity to build local power and to counter prevailing assertions that major sporting events always leave lasting social and economic benefits for everyone. The Ford Foundation’s commitment to building institutions and networks seeks to support and grow social justice institutions—which often outlive any one battle or campaign—to do just this.

Major sporting events can ignite a city’s spirit and civic capacity, can lead to a sense of citywide pride, and can certainly help to increase tourism and economic stimulus. But major sporting events and projects only benefit everyone when they are deliberately designed to do so. If we change the approach to development, large sporting events like the Olympics can reduce, rather than drive, inequality.

--Stefan Norgaard

Eye On: Sara Blakely
September 24, 2015

(Melissa Moy is the special projects associate for Glasspockets. For more information about Sara Blakely and the other Giving Pledgers, visit Foundation Center's Eye on the Giving Pledge.)

Sara_Blakely YellowSara Blakely’s desire to help female entrepreneurs and empower women and girls is rooted in her belief of “paying it forward.”

Through her philanthropic endeavors via the Sara Blakely Foundation, the Spanx Inc. founder is positively shaping the lives of women.  Bill Gates personally invited Blakely to join the Giving Pledge, whereby wealthy individuals have pledged to give away most of their wealth during their lifetime. 

Blakely’s mentor and friend, Virgin Group tycoon Richard Branson – the first British Giving Pledger – made his pledge in February 2013, and Blakely followed suit in May 2013, demonstrating the multiplier effect that being open about one’s philanthropy can have.

In her Giving Pledge letter, Blakely described her gratitude for being a woman in America when millions of women around the world are “not dealt the same deck of cards upon their birth.” She added, “Simply because of their gender, they are not given the same chance I had to create my own success and follow my dreams. It is for those women that I make this pledge.”

Sara Blakely:

  • Successful entrepreneur and owner of Atlanta-based Spanx Inc.
  • In 2012, Forbes Magazine named her the youngest self-made female billionaire
  • TIME Magazine’s The World’s 100 Most Influential People 2012 list
  • Clearwater, Fla., native
  • Minority owner of the Atlanta Hawks
  • Personal net worth is over $1 billion

At 44, Blakely has a number of “firsts” under her belt – including the youngest woman in the world to become a self-made billionaire and the first self-made female billionaire Giving Pledger.

I pledge to invest in women because I believe it offers one of the greatest returns on investment.

Through her Atlanta-based foundation, Blakely invests her woman’s shapewear fortune into philanthropic initiatives that focus on women and girls, from entrepreneurship and education to addressing homelessness.

The foundation gave $613,520 to 30 organizations in 2013. Significant grant awards made through the foundation in that year show a variety of philanthropic interests including: $100,000 to V-Day to stop violence against women; $100,000 to the Focus Foundation to help children and families with X & Y Variations, Dyslexia, and/or Developmental Dyspraxia reach their potential; $65,520 to help women survivors of war, poverty and injustice; $50,000 to the Clearwater Marine Aquarium to help preserve marine life in her hometown of Clearwater, Fla.; and $40,000 to Girls on the Run of Atlanta to empower young girls, grades 3 to 8, through a youth development and running program.

“I pledge to invest in women because I believe it offers one of the greatest returns on investment,” Blakely said in her Giving Pledge letter. “While many of the world's natural resources are being depleted, one is waiting to be unleashed — women.” Using her fortune to invest in start-up female entrepreneurs must be very satisfying for Blakely, having been one herself not that long ago.

The Florida State University graduate developed the idea for Spanx while getting ready for a party. Blakely didn’t have the right undergarment to wear under her slacks. She cut the feet off of her control top pantyhose and liked the slimming effect.

With great tenacity, the Florida saleswoman researched the undergarment business and even wrote her own patent to save money. Facing skeptical hosiery mill owners in a male-dominated field, Blakely eventually convinced one mill owner to manufacture her products.

Blakely credits her big break to Oprah Winfrey, who named Spanx one of her “favorite things” in 2000. The next year, she sold 8,000 units on home shopping network QVC in the first six minutes.

Blakely’s commitment to “paying it forward” informs Spanx corporate philanthropy, which prioritizes giving female entrepreneurs assistance through its Leg Up program. Blakely notes that every woman can benefit from a “leg up,” or assistance from other women. The unique program offers female business owners the opportunity to promote their products to Spanx customers via the catalog, website and Social Media.

In 2015, Spanx selected two innovative Leg Up businesses, the Akola Project and Sseko Designs.

The Akola Project empowers Ugandan women in extreme poverty by providing a livelihood developing handcrafted jewelry; 100% of the profits are reinvested into the community.

Sseko Designs is a fashion company that employs impoverished Ugandan women and supports their education; 100% of the company’s employees are currently pursuing their university degrees or are graduates.

The entrepreneur’s passion around women’s issues is also expressed in the Spanx company mission, “to help women feel great about themselves and their potential.”

“Since I was a little girl I have always known I would help women,” Blakely said. “I have been setting aside profits since the start of Spanx with the goal that when the time comes I will have an amazing opportunity to help women in an even bigger way.”

--Melissa Moy

Eye on: Dr. Mohammed Ibrahim
July 30, 2015

(Caroline Broadhurst is deputy chief executive officer at The Rank Foundation and through the Clore Social Leadership Programme was a visiting fellow at the Foundation Center. This is part of her series about the motivations of U.K. donors who have signed the Giving Pledge. For more about Dr. Ibrahim and the other Giving Pledgers, visit Foundation Center's Eye on the Giving Pledge.)

Mohammed Ibrahim“Lucky” is how Dr. Mohammed Ibrahim describes himself when recounting his journey from his Nubian upbringing in Sudan to his work as an international philanthropist and entrepreneur.  Dr. Ibrahim grew up in an African community, but has lived most of his adult life in Britain with his wife Hania, a retired radiologist for the National Health Service.  Always one to work hard, Dr. Ibrahim attributes his good fortune to being in the right place at the right time, and the encouragement he received from his parents to excel academically.  Dr. Ibrahim received a Ph.D. in Mobile Communications from Birmingham University in the north of England and worked within the telecommunications sector for several years before leading the telecommunications company, Cellnet (now O2).  The business had gone where others had feared to tread, and by bringing the mobile phone industry to the African continent, made its 100 shareholders millionaires overnight.

When Dr. Ibrahim sold the business in 2005 he shifted his focus to philanthropy.  Proudly African, he wanted to influence transparency in governance.  He set up the Mo Ibrahim Foundation in 2006 “to focus on the critical importance of leadership and governance in Africa.” The foundation has two key projects: the Ibrahim Index of African Governance, which ranks the performance of individual governments in terms of safety, rule of law, economic opportunity and human development (Mauritius  currently holds the top spot with 81.7%); the second is the Ibrahim Prize, which celebrates and awards strong leadership among former African presidents and heads of state. The Prize is expected to exceed the value of the Nobel Prize, with an initial award of $5 million, plus $200,000 annually for life to the former president or head of state who demonstrates outstanding leadership qualities. In 2014, Namibia’s president, Hifikepunye Pohamba, won the prize.

In addition to the Index and the Prize, the Mo Ibraham Foundation hosts the Ibrahim Forum, a space to share the thought leadership agenda on African issues; the Forum also offers fellowships to the younger generation. The Mo Ibrahim Foundation is not a grantmaking body. Dr. Ibrahim’s daughter, Hadeel Ibrahim, is the founding Executive Director, and works alongside an impressive advisory board, which includes former President of Ireland, Mary Robinson

Known to the media as “Africa’s Bill Gates,” Dr. Ibrahim is now focusing on the transformation of Africa’s fortunes, based on good governance and leadership, rather than good luck.

--Caroline Broadhurst

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