Transparency Talk

Category: "Giving Pledge" (32 posts)

Giving Pledge Announces the Class of 2017
May 30, 2017

Eye on the Giving Pledge

The Giving Pledge, in a press release made public today, announced that 14 new participants have joined the effort launched by Warren Buffett and Bill and Melinda Gates in 2010 to encourage the world's wealthiest to commit the majority of their assets to philanthropic causes. This number includes the four previously unannounced pledges by Leonard H. Ainsworth, Mohammed Dewji, Dean and Marianne Metropoulos, and Terry and Susan Ragon -- bringing the total number of pledgers to 168. The class of 2017 includes Americans as well as pledgers from Norway, Slovenia, Monaco, and China. This year's pledgers include an agri-business titan, one of the earliest investors in Amazon.com, an airline entrepreneur, and the heirs to the Dolby Surround Sound fortune.

Profiles for all signatories are now available as part of our Glasspockets feature Eye on the Giving Pledge.

 

Since its inception in 2010, the Giving Pledge, Warren Buffett and Bill and Melinda Gates' effort to encourage the world's wealthiest to commit the majority of their assets to philanthropic causes, has garnered 168 signatories in 21 countries with a combined net worth of more than $800 billion.

Learn more about all the pledgers in our Glasspockets feature Eye on the Giving Pledge.

-- Daniel Matz

The Givers: Wealth, Power, and Philanthropy in a New Gilded Age
May 10, 2017

(Daniel Matz is manager and content developer for Foundation Center’s Glasspockets.org portal. This review was first published in Philanthropy News Digest.)

Daniel X MatzThe mega-wealthy have long been celebrated in American culture. Even in the first Gilded Age, when the likes of Carnegie, Mellon, Rockefeller, and Sage were scorned as robber barons, their wealth — and power — were much admired. In their time, these titans of America's burgeoning industrial might determined the economic destiny of millions and set the course of the nation. And their philanthropy — more than a century on — continues to echo with all the force that money can buy.

Today, as we celebrate the dynamos of a new gilded age — their fortunes, in many cases, made younger, growing faster, moving at the speed of light — we're witnessing a second philanthropic boom. And that seemingly inexhaustible river of "private wealth for public good" brings with it the ideas and voices of those who, having made vast fortunes, are now determined to put that money to use. How society responds to and channels that torrent of money while making sure the ideas it funds best serve the interests of the American people is of broad concern.

“Giving by the mega-wealthy is going to be bigger, more sophisticated, and more focused on influencing public policy debates.”

In The Givers: Wealth, Power, and Philanthropy in a New Gilded Age, David Callahan gives us a grand tour of the philanthropic landscape in the opening decades of the twenty-first century while opening a window on how today's economic winners — having proved themselves in business — are eyeing philanthropy as the ultimate opportunity to convert wealth into power. But where a Matthew Josephson might have distrusted such a development, in Callahan's telling, these masters of the universe are thoughtful, broad-minded, and, yes, even likable. He's not interested in taking them down, criticizing their often rapacious business practices, or pointing out the role played by fiscal and tax policy in cementing their status as the .01 percent. Instead, his is a book about the giving away, not the getting, of great wealth.

Founding editor of the Inside Philanthropy website, a founder of public policy think tank Demos, and a former fellow at the Century Foundation, Callahan has a reputation as a keen observer of philanthropy and civil society and it serves him well here. Not only does he know his subject, he's also interviewed many of the people in his book — Priscilla Chan, Eli Broad, Melinda Gates, and John Arnold, to name a few — and is able to support his own judgments with their words. And what both he and they see is a future in which giving by the mega-wealthy is going to be bigger, more sophisticated, and more focused on influencing public policy debates.

David CallahanDavid Callahan

Of course, many of today's mega-wealthy, people like Warren Buffett and Michael Bloomberg, have indicated they have little interest in leaving much of their wealth behind. (In a recent 60 Minutes interview, Bloomberg joked with correspondent Steve Croft about "a guy on his death bed in a hospital with the rails around and his family looking down like vultures. And he looks up and says, 'I know I can't take it with me, but I can take the access code'.") Indeed, in the next decade alone, some $740 billion is likely to be distributed in the form of private philanthropy. And if the Giving Pledge — the Buffett and Gates effort to encourage the uber-rich to commit the majority of their wealth to philanthropic causes — is any gauge, we could see another trillion dollars in private wealth making its way to nonprofit organizations and causes over the lifetimes of the 158 current "pledgers" who have signed on. (Learn more about that campaign and its signatories at the Foundation Center's Eye on the Giving Pledge feature.) How all that money will be used over the coming decades is what former Secretary of Defense Donald Rumsfeld might call a known unknown, but it undoubtedly will have important and lasting effects, and that — as well as who will decide what its impact might be — is at the center of Callahan's inquiry.

In the book, Callahan examines the collision of two fundamental American values — freedom and equality — and how the wealthiest Americans have been able to leverage their money (for better or worse) to gain advantage in the marketplace of ideas. Sure, money in politics is as American as apple pie: for proof, look no further than the Supreme Court's ruling in Citizens United, the flood of cash swirling around political campaigns, and K Street lobbyists and super PACs. But much less is heard about the ways in which the mega-wealthy are using their philanthropy to influence public policy and (intentionally or not) drown out the voices of average Americans. We're not talking about eight-figure gifts for museums and the like; we're talking about philanthropy that shapes national agendas and priorities and promotes policies that affect Americans where they live — from promoting school vouchers, to hobbling the Johnson Amendment, to pushing for repeal of the Affordable Care Act.

It's one thing, for instance, for the average American to make a $100 donation to a cause she believes in, and it's certainly noteworthy when a wealthy donor trumps that with a gift a hundred thousand times larger; it's something else entirely when a donor puts up the money for a think tank to develop a public policy recommendation, hire researchers to provide intellectual cover for the policy, and disseminate the results through a report and a media campaign. The Brookings Institute has been around since the 1910s, the American Enterprise Institute since the 1930s, the Heritage Foundation since the 1970s. All are tax exempt, and all have been the beneficiaries of substantial philanthropic largesse over the years. What's different in 2017 is the full-throttled way in which such bounty has become another weapon in the ideological clash that defines our time: Left vs. Right, liberal vs. conservative, cosmopolitan vs. populist. What we are seeing, Callahan notes, is the mega-wealthy using their philanthropic dollars to define the terms of the debate and dominate the public square in areas and on issues that a generation ago were the purview of academics, technocrats, and policy makers.

The Givers - Book JacketSome might argue that this isn't necessarily a bad thing, and Callahan is quick to note that the mega-wealthy have no agreed-to set of interests and, as a group, are as ideologically and politically pluralistic as the country itself. If at times they can seem like gods throwing thunderbolts at one another, the diversity of ideas and approaches they represent seems to balance out: for every wealthy advocate of school vouchers and charter schools, there's an equally wealthy and committed advocate eager to double down on public education.

In a perfect world where government is more or less trusted to do the right thing, that might be okay, argues Callahan. But in an era of widening inequality and growing political polarization (exacerbated by our addiction to social media), government and traditional institutions are losing their ability to absorb those thunderbolts and forge compromises that satisfy the majority of Americans. It's not that the public square is empty; it's that the platforms from which the plural voices of American democracy typically are heard have been roped off and posted with "Do Not Enter" signs. For Callahan, it's no coincidence that the outsized influence on public policy of the mega-wealthy comes just at the moment when both institutional and government effectiveness appear to be in terminal decline.

With a nod to French economist Thomas Piketty, Callahan sees this decline as a by-product of mounting economic anxiety, driving broad disaffection with both major political parties and a loss of faith in the ability of government to materially affect the lives of those who have lost their livelihoods to globalization, automation, and de-industrialization. Into that vacuum has stepped the wealthy, with states and local governments increasingly looking to foundations and nonprofits to join forces in public/private partnership, and fund everything from education initiatives to homeless services to public parks. Every time a philanthropist gives $100 million to bankroll a new reform effort in a struggling school district, or convinces a city to spend a portion of its parks budget on a whimsical project, or provides millions for a campaign to convince the public to support/oppose an international climate agreement, writes Callahan, we are seeing a new kind of philanthropy in action. And there's no reason to believe the trend won't continue, or that it won't happen in ways largely beyond the ability of the public to control.

As much as The Givers pulls back the curtain on this reality, it's also a call to change how philanthropy in America is regulated. Readers of Callahan's posts on Inside Philanthropy will not be surprised by his prescriptions — chief among them a call for greater transparency and accountability in the sector (principles Foundation Center has long championed through our Glasspockets initiative). Here, though, Callahan has something more specific in mind: changing the rules to require wealthy individual donors, donor-advised funds, private foundations, and nonprofits to disclose more information about their giving, more quickly. He also calls for the creation of an independent Federal Reserve-style commission to oversee the nonprofit and philanthropic sectors; the establishment of formal metrics to assess charities' effectiveness; and for the IRS to be given more resources — and greater latitude — to audit more than the tiny fraction of nonprofits and foundations it currently reviews. Callahan also favors limiting the tax-deductibility of contributions to nonprofits that are not working to alleviate poverty or address other urgent social problems, and he wants to see foundation boards be more independent and representative of the communities they are charged with serving.

For Callahan, these are small changes — a somewhat Pollyannaish take that seems to ignore our current political climate and the treasured prerogatives of many large, important foundations and nonprofits. Yes, philanthropy needs more transparency and accountability, it probably needs new rules, and the public needs more and better information about how foundations and individual donors are spending their tax-advantaged resources.

But we also need to find the will, and a way, to restore the public square to something like its imagined heyday so that the voices of the rich and powerful are not the only ones heard in statehouses and the halls of Congress. As Callahan puts it, Alexis de Tocqueville didn't esteem America for its robust nonprofit sector; he admired it for its egalitarian ideals. Nurturing and sustaining those ideas over the coming decades should be something we can all agree on.

-- Daniel Matz

Eye On: Airbnb Co-Founders Joe Gebbia, Nathan Blecharczyk, and Brian Chesky
April 26, 2017

(Melissa Moy is special projects associate for Glasspockets.)

Two friends were struggling to pay their rent when they realized they could earn much-needed funds from travelers.  In 2007, they charged their first three customers $80 a night to sleep on an air mattress in their San Francisco apartment when local hotels sold out during a conference.

And the rest is history.

Joe Gebbia and Brian Chesky, friends and former Rhode Island School of Design classmates, expanded their enterprising idea.  With Gebbia’s former roommate, Nathan Blecharczyk, the trio founded Airbnb in 2008 and revolutionized the art of renting home space.  As Gebbia explained in a TED talk, Airbnb designs for trust to create a “culture of sharing… that brings us community and connection instead of isolation and separation.”

Within 10 years, the trio has groomed Airbnb into a $30 billion tech giant, a disruptive and controversial force that has transformed the travel and tech industry and popularized the idea of the “sharing economy.”  As Airbnb has grown, so have controversies and debates over its impact in already tight rental markets.  Criticism that the company has contributed to community displacement and a reduction in available long-term rentals have led to ongoing legal battles. Yet, despite the regulatory struggles, even hotels are rallying to find ways to imitate the trendsetting Airbnb.

 

Entrepreneur - Airbnb Trio
The Airbnb co-founders are among the youngest to join Warren Buffett and Bill and Melinda Gates in the Giving Pledge. It also marked the first time all of a company’s co-founders committed at the same time. Credit: Entrepreneur


Now the entrepreneurial trio – who are each worth an estimated $3.3 billion and among the youngest on the 2016 Forbes 400 billionaires list – have started making visible strides in the original sharing economy by engaging in philanthropy. 

The Airbnb co-founders are among the youngest to join Warren Buffett and Bill and Melinda Gates in the Giving Pledge, whereby wealthy individuals pledge to give away the majority of their wealth within their lifetime.  When they joined the Giving Pledge last year, it also marked the first time all of a company’s co-founders committed at the same time.

In a Fortune interview, the entrepreneurs credit Warren Buffett and Bill Gates with their decision to join the Giving Pledge.  Gebbia touted Buffett as a “Jedi master of philanthropy.”  And Chesky said Buffett’s argument resonated with him – wealth beyond a certain point has zero utility, and such wealth could have a greater social impact.

Still relatively new to philanthropy, the trio acknowledge they are taking their time to give away their wealth.  However, openness is at the heart of the sharing economy, and the Airbnb co-founders understand a public expectation of openness in philanthropy exists.

“I’ve always believed that you should [be public about giving], such that you can be very public about your values and what you stand for,” Chesky said in a Fortune interview.

Corporate Philanthropy

As the Airbnb co-founders design their philanthropic strategy, the company is experimenting with different ways to use its platform for good. 

The San Francisco-based company has created a disaster response platform that brings together hosts and community groups to provide free temporary housing for individuals and families displaced by disasters, as well as relief workers.  When a disaster occurs, Airbnb contacts local hosts who may volunteer to provide free housing; if no hosts are available, Airbnb will subsidize the housing cost.

“I’ve always believed that you should [be public about giving], such that you can be very public about your values and what you stand for.”

Airbnb connects hosts to help support local and national disaster relief efforts, and arranges disaster preparedness training.  Airbnb also contributes travel vouchers to support advance teams and large groups of relief workers for major national and international disasters.

More recently, the company has pledged to use its disaster response platform to aid refugees affected by President Donald Trump’s executive order. Over the next five years, Airbnb has committed to provide short-term housing for 100,000 refugees and those barred from entering the United States.  Airbnb also pledged $4 million to the International Rescue Committee over the next four years to support the most critical needs of displaced people worldwide.

Airbnb also recently announced a scheduled launch of a humanitarian division next month focusing on global issues such as displaced populations, rural flight and bias against strangers.

Given that building community is one Airbnb’s central philosophies, the company’s platform supports a number of opportunities for Airbnb hosts to make a positive social impact via global volunteerism and “Open Homes,” which provides housing at free or reduced costs for medical treatments, college visits, or family gatherings.

Through a “social impact experiences” program, Airbnb guests enjoy culture and learn about local causes in the cities they are visiting.  Local community leaders and volunteers are invited to create an opportunity that brings people closer to their work.  Nonprofit leaders and Airbnb hosts lead the experience, and the nonprofits receive 100% of the social impact experience fees. 

Airbnb hopes this will connect guests to issues they care about or introduce them to new causes.  The social impact experiences run the gamut, from visiting a local artist or animal shelter to attending a dinner and theater event, or spending a day with an urban gardener to create green space in Los Angeles. 

Airbnb has committed to fighting homelessness in New York City, where the company recently settled a lawsuit involving legislation that would fine Airbnb hosts up to $7,500 for renting out certain types of apartments and homes for less than 30 days.  Last year, the company donated $100,000 to WIN (formerly Women In Need), a group that helps homeless women and their children.  Additionally, Airbnb pledged to recruit volunteer hosts and guests to assist WIN clients with professional skills training, such as resume building and interviewing for jobs, and increasing children’s literacy.

Personal Giving 

The trio’s individual giving appears to be driven by a spirit of entrepreneurship; they want to give others the opportunity to achieve their dreams and support “future creatives and entrepreneurs.” 

Joe Gebbia

Joe GebbiaIn Joe Gebbia’s Giving Pledge letter, he described his hope to help other entrepreneurs: “I want to enable as many people as possible, especially in underprivileged communities, to experience this magic firsthand… and achieve their dreams.”

The 35-year-old Georgia native added, “I want to devote my resources to bring the moment of instantiation, when someone who has an idea sees it become real, to as many people as I can.  It can unlock the understanding that they can make things happen, that they can shape the world around them.”

Gebbia serves on the Board of Trustees at his alma mater, the Rhode Island School of Design (RISD).  In 2014, he pledged $300,000 to RISD for a $50,000 term scholarship and an endowed fund for talented students in need of financial aid.

Nathan and Elizabeth Blecharczyk

Nathan and Elizabeth BlecharczykIn Nathan and Elizabeth Blecharczyk’s Giving Pledge letter, the couple said they are in a “unique position to have significant positive impact” by giving away their wealth.  “We feel a responsibility to share our good fortune, and we pledge to dedicate the majority of our wealth over time to philanthropy,” the Blecharczyks said.

Nathan Blecharczyk, 33, who developed Airbnb’s website, demonstrated his entrepreneurial spirit early on.  When he was 12 years old, Blecharczyk learned how to code and wrote customized programs for clients; he developed popular programs for e-mail marketing.  By age 14, he founded an Internet software business and funded his Harvard University tuition with the sale of his business. 

The San Francisco residents cited their upbringing – his parents taught him to be inquisitive, confident and motivated, and her parents and teachers taught her to be self-aware and use her strengths to help others – as the reason to direct their philanthropy toward the “potential of children” and “transformative ideas.”

“Airbnb went from an off-the-wall idea to a transformative company as a result of assembling the right team – cofounders, mentors, investors, and later employees – and now we want to help others pursue unconventional ideas that can make the world a better place,” the Blecharczyks said in their letter.

The couple said their interests are in the areas of education, scientific research, medicine, space exploration, environment and effective governance.  “Our philanthropic approach will be reflected through the lens of our own passions and experiences but rooted in analysis to ensure we are choosing wisely,” the couple said.

Brian Chesky

Brian CheskyBrian Chesky, 35, wants his philanthropy to spur youth entrepreneurship.  “We all live with unknown potential.  The younger you are, the more unknown it is,” Chesky said in his Giving Pledge letter.  “But the clock ticks by each day of your life.  And each day someone young isn’t exposed to what is possible, their potential slowly dims.”

The New York native credited a high school teacher and RISD professors for helping him to dream and see that he could “design the kind of world I want to live in.”

“You can have a lot of impact on someone just by showing them what is possible,” Chesky said.  “With this pledge, I want to help more kids realize the kind of journey I have had.  I want to show them that their dreams are not bounded by what they can see in front of them.  Their limits are not so limited.  Walt Disney once said, ‘If you can dream it, you can do it.’  I would like to help them dream.”

To learn more, visit Foundation Center's Eye on the Giving Pledge feature and check out individual profiles for Joe Gebbia, Nathan and Elizabeth Blecharczyk, and Brian Chesky.

-- Melissa Moy

Eye On: Giving Pledger Mohammed Dewji
October 20, 2016

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

Mohammed-dewji photoA Tanzanian businessman and philanthropist hopes a family legacy of giving will continue in future generations.

Spurred by his parents’ philanthropic example and his Muslim faith, Mohammed Dewji is one of the latest to join the Giving Pledge, whereby wealthy individuals have pledged to give away most of their wealth during their lifetime.

“I hope that my children and grandchildren inherit this ethos and lead by example in years to come,” Dewji said in his Giving Pledge letter. He described his “deep responsibility” to give back to his community and called it a “moral obligation” to help the less fortunate.

 Mohammed Dewji:

  • Richest man in Tanzania (Forbes #21 in Africa)
  • Businesses: manufacturing, finance, real estate, beverages and edible oils
  • Founder of Mo Cola soft drink
  • B.S. in Business Administration, Georgetown University
  • Former member of Tanzania’s National Assembly
  • Net worth: $1.1 billion

Big Business

Dewji is CEO of MeTL, a Tanzanian conglomerate that includes manufacturing, financial services, real estate, and beverages and edible oils. His father started the business in the 1970s.

“Dewji’s strategic giving is designed to stimulate socio-economic development.”

After graduating from Georgetown in 1998 - and a brief, unsatisfying turn on Wall Street - Dewji's father urged the 23-year-old to join the family business and give up "chasing pennies in New York when there was a fortune to be made in Tanzania."

Within 10 years, the skillful Dewji grew a $30 million business into a pan-African conglomerate with revenues of $1.5 billion. Under his leadership, the company now has 31 industries in 11 countries, and also includes cellular phones, finance and real estate. In 2014, Dewji launched Mo Cola, a soft drink beverage brand that Dewji hopes will one day rival the popularity of Coca-Cola, which has dominated the market for decades.

Dewji, 41, is a key influencer in African philanthropy and politics. A former member of Tanzania's National Assembly, Dewji is the nation’s wealthiest man, and among the 50 richest in Africa.

Strategic Giving

Motivated to address the severe poverty in Tanzania, Dewji not only focused on philanthropic efforts but also served as Member of Parliament in his home region of Singida to effect change. From setting up Singida Yetu in 2005, a charity that focused on sustainable socio-economic development to establishing his family foundation, Dewji has passionately sought philanthropic opportunities to improve lives in Tanzania.

Dewji’s strategic giving is designed to stimulate socio-economic development. In 2014, he established the Mo Dewji Foundation to align with his “philanthropic vision of facilitating the development of a poverty-free Tanzania.  A future where the possibilities, opportunities and dreams of Tanzanians are limitless.” In a statement, Dewji noted: “I have been blessed and I am very proud of the success of my company, MeTL, but with this success and the subsequent wealth comes responsibility…it is the duty… to redistribute this wealth to less fortunate people.”

Childrens-Cancer-Unit-hostel-and-school
National Children’s Oncology Center at Muhimbili National Hospital

His foundation focuses on health, education and community development. The foundation targets increased access to education and supporting existing health care facilities and contributing to healthcare infrastructure that includes better nutrition, drilling water wells, adaptive hygienic practices such as building latrines in schools and providing mosquito nets.

Dewji is also seeking tangible opportunities to help and invest in Tanzanians, from personal mentoring and interest-free start-up loans to four-year university scholarships to high-achieving high school students. Through the Mo Entrepreneurs Competition, Dewji offers personal mentoring, support and training, and a $4,584 interest-free loan for entrepreneurs who have “high-potential start-ups but lack further support in the form of growth capital, networks and mentoring.”

“When God blesses you financially, don’t raise your standard of living. Raise your standard of GIVING.”

In collaboration with the University of Dar Es Salaam, the Mo Scholars program selects outstanding high school students and provides four years of undergraduate college to “create a community of passionate students and provide them with the capacity to achieve their greatest potential.”

The businessman has received multiple recognition and awards for his philanthropy from African magazines and business leadership organizations.

He recently Tweeted, “Success shouldn’t be solely defined by your wealth. It should be about the positive impact and influence you have on your community.”

What’s Next?

Dewji remains committed to philanthropy and the betterment of his country. By signing the Giving Pledge, Dewji wants to motivate his fellow Africans and global citizens to consider “the funds they truly need to maintain their families versus their ability to give.”

“We all have a moral obligation as the more affluent in society to give back as best we know how,” Dewji said in his Giving Pledge letter. “When God blesses you financially, don’t raise your standard of living. Raise your standard of GIVING.”

-- Melissa Moy

Eye On: Marc and Lynne Benioff
July 7, 2016

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

Benioff_photoTech billionaire Marc Benioff has a long track record as a philanthropist and as a thought leader who advocates for his corporate philanthropy peers to step up their giving.  Despite playing this kind of leadership role in philanthropy circles, it was unexpected to learn that Benioff and his wife Lynne Benioff had recently signed the Giving Pledge, a philanthropy movement started by Bill and Melinda Gates and Warren Buffet.

From Critic to Converted

Prior to signing the Giving Pledge, Benioff publicly expressed skepticism about the Giving Pledge and also whether fellow Pledger Mark Zuckerberg’s $1 billion gift to the Silicon Valley Community Foundation (SVCF) amounted to little more than a tax write-off.

Benioff, founder, chairman and CEO of Salesforce, pointed out that grants made from donor-advised funds, such as Zuckerberg’s SVCF donation, are hidden from view. He expressed concerns that the Facebook founder’s gift, however generous, might lack philanthropic impact due to a lack of transparency and accountability in how the money is used.

Regarding his initial skepticism of the Giving Pledge, Benioff had previously said, “But with no outline for immediate philanthropic work or any references to specific actionable projects, we all will have to wait to see what’s achieved—and the donors themselves may never see it.”

So why did the tech leader change his tune and support the Giving Pledge?  Perhaps it was the collaborative philanthropy effort and the time the Benioffs spent personally with Bill and Melinda Gates that swayed him. 

In the couple’s Giving Pledge letter, the Benioffs said they worked with the Bill & Melinda Gates Foundation to launch University of California San Francisco’s California Preterm Birth Initiative. The Benioffs said they were “thrilled to see the impact of the Giving Pledge through the leadership of Bill & Melinda Gates” over the last six years.

Joining the Giving Pledge was also the Benioffs’ opportunity to “reaffirm our commitment to the health and education of our children, pledging to dedicate the majority of our wealth to philanthropy.”  Perhaps Benioff, who in recent years had been actively building philanthropy movements of his own, grew to recognize the potential for scale such movements bring.

Marc Benioff:

  • Founder of Salesforce
  • Forbes’ Most Innovative Companies: #2 in 2015 (#1, 2011-2014)
  • Fortune’s World’s 50 Greatest Leaders: #37 in 2016
  • 13% owner of Fitbit
  • Personal net worth: $4.2 bilion

Architect of 1/1/1: “Pay as You Go” Model

Salesforce is a leading enterprise cloud computing company, which allows clients to access their software and data over the Internet instead of installing it on computers.  Since Salesforce’s establishment in 1999, Benioff has pioneered an innovative way to build the Salesforce empire while also supporting local communities.

Benioff is a fan of strategic giving and a “pay as you go” model.  He urges his wealthy peers to give away money as they make it and not “pay at the end,” which had been one of his reservations about the Giving Pledge.  In his Salesforce blog, he noted how Buffet will give 99% of his wealth in the last 10 years of his life.

“There’s no reason why your business, your personal philanthropy and your corporate philanthropy can’t be integrated,” Benioff said in his blog.

The Salesforce approach to philanthropy, which Benioff pioneered, is referred to as the 1/1/1 model that facilitates the “pay as you go” approach, in which a company gives to the communities it serves 1% of its equity, 1% of its employee hours and 1% donated product.  The 1/1/1 model has influenced how Google and hundreds of corporations give to the community.

Building His Fortune

At 15, Benioff founded Liberty Software, and created games for Atari.  Epyx published several of his computer games.  By the age of 16, he began earning royalties of $1,500 a month.

Benioff went on to get his Bachelor of Science in Business Administration from the University of Southern California in 1986.  While at USC, Benioff interned at apple. Benioff later described how Apple and its co-founder Steve Jobs inspired him, writing in “Beyond the Cloud,” his bestselling memoir: "That summer, I discovered it was possible for an entrepreneur to encourage revolutionary ideas.”

Before creating Salesforce, Benioff worked under Larry Ellison at Oracle Corporation, another Bay Area-based tech giant.

During his 13 years at Oracle, Benioff held numerous executive positions in sales, marketing and product development.  At age 23, Oracle named him Rookie of the Year, and three years later, he became the company’s youngest vice-president.

Benioff would eventually launch his multi-billion company from small, start-up roots in a San Francisco apartment in 1999.

In 2016, Benioff made Fortune Magazine’s 50 World’s Greatest Leaders list.  Salesforce has regularly topped many of Forbes Magazine’s lists, including Best Place to Work, World’s Most Innovative Company and World’s Most Admired Company.

Power Couple Philanthropy

The Benioffs have been longtime donors to the UCSF Medical Center.

Marc Benioff has also used his influence to catalyze local giving by rallying Bay Area corporations to fight local poverty with SF Gives. The group urges pioneering and influential Bay Area companies to give locally because one in five Bay Area residents lives in poverty.

At the time SF Gives launched, Benioff made personal calls to ask local CEOs to join SF Gives.  Participating companies include Google, Levi’s, LinkedIn, Zynga, Box, Jawbone, PopSugar and Dropbox.

Lynne Benioff, a marketing professional, is also a passionate philanthropist.  In 2011, the San Francisco Business Times honored her as a fundraising Health Care Hero. 

She serves on numerous boards as a trustee for the Presidio Trust; University of California San Francisco Foundation, where she chairs the marketing committee; UCSF Benioff Children’s Hospital Oakland; Children’s Hospital & Research Center Foundation; and Common Sense Media.

Lynne Benioff’s motivation partially stems from her own hospitalization when she experienced late-stage complications in her pregnancy in 2009.  During her month-long stay at UCSF Medical Center, Benioff witnessed the challenges of other patients and families.  Since then, Lynne Benioff has been an advocate for higher health care standards, especially for children.

Following this experience, the Benioffs changed their philanthropic focus to health care for children.  Most of their personal philanthropy is for UCSF with a $250 million gift to build UCSF Benioff Children’s Hospitals in San Francisco and Oakland. 

Salesforce Foundation

In addition to the Benioffs’ personal giving, the Salesforce Foundation has a large philanthropic footprint. 

With Benioff’s 1/1/1 model, the foundation focuses giving on 1) technology – offering donated and discounted technologies to nonprofits and higher education; 2) people – encouraging employee engagement, whereby employees have up to seven days off per year to volunteer and can participate in company volunteer efforts; and 3) resources – provide grants in education and Science Technology Engineering Mathematics (STEM) programs.

The foundation has given $14 million to the San Francisco Unified School District to advance STEM education.

In 2014, the San Francisco-based Salesforce Foundation gave $19.5 million in grants and scholarships to organizations and individuals in the United States and overseas, according to federal tax returns

Significant grant awards that year included: $5 million to the San Francisco Foundation for public and societal benefit; $1.6 million to the UCSF Foundation for higher education; $1 million to Tipping Point, which supports SF Gives; $988,000 to Code.Org, a Seattle-based group that promotes education; $750,000 to Catholic Charities in San Francisco for human services.  

The foundation also gave numerous awards, from $100,000 to $300,000, to organizations that supported health, higher education and K-12 education.

Social Justice Supporter

Given Marc Benioff’s passion for philanthropy and his comfort level in using his influence to change the status quo, it’s no surprise that he has taken stands for social justice on a national front.  For example, Benioff urged South Carolina to remove the Confederate flag from its state capitol.  He supported President Obama’s Equal Pay Measure, which would require large companies to disclose employee compensation broken down by gender, ethnicity, and race.  At Salesforce he conducted a compensation analysis and then budgeted $3 million in 2015 to increase wages for 1,000 female Salesforce employees to close the wage gap between men and women.  

Benioff has also leveraged the economic power of his company to impact social justice issues. For example, Benioff threatened to pull Salesforce.com business from Indiana and Georgia related to legislation that could potentially discriminate against LGBT people.

In 2015, Benioff led a business-world boycott against Indiana’s religious freedom law, which would have allowed businesses to potentially refuse service to LGBT customers for religious reasons.  He also protested Georgia legislation that would give faith-based organizations the option to deny people services based on a “sincerely held religious belief” relating to marriage.  

In a relatively short time, the Benioffs have established quite a robust public track record as both philanthropists and philanthropy influencers.  And unlike many of their tech peers, much of their giving and activism is done in the public eye, which makes it easier for us all to understand their philanthropic point of view and see what’s next for one of the newest Giving Pledgers. 

--Melissa Moy

Giving Pledge Announces the Class of 2016
June 1, 2016

Eye on the Giving Pledge

The Giving Pledge, in a press release made public today, announced that 17 new participants have joined the effort launched by Warren Buffett and Bill and Melinda Gates in 2010 to encourage the world's wealthiest to commit the majority of their assets to philanthropic causes. This number includes the six previously unannounced pledges by Sir Tom and Lady Marion Hunter, Margaret and Sylvan Adams, Dr. Herbert and Nicole Wertheim, Kiran Mazumdar-Shaw, and Robert and Arlene Kogod, and Gary K. Michelson -- bringing the total number of pledgers to 154. The class of 2016 includes a Saudi prince and a Chinese dairy magnate, as well as computer developers and technologists, including the co-founders of Airbnb -- a path followed by many partner-entrepreneurs already committed to the Giving Pledge.

Profiles for all signatories are now available as part of our Glasspockets feature Eye on the Giving Pledge.

 

Since its inception in 2010, the Giving Pledge, Warren Buffett and Bill and Melinda Gates' effort to encourage the world's wealthiest to commit the majority of their assets to philanthropic causes, has garnered 154 signatories in 18 countries with a combined net worth of more than $750 billion.

Learn more about all the pledgers in our Glasspockets feature Eye on the Giving Pledge.

-- Daniel Matz

Gary K. Michelson Joins the Giving Pledge
March 15, 2016

Egp-icon-typepadLos-Angeles based surgeon and inventor Gary Michelson has joined the Giving Pledge. Born in Philadelphia and trained at Drexel University's Hahnemann Medical College, Michelson made his fortune developing and marketing medical devices that revolutionized spinal and orthopedic surgery.

In 2005 Michelson's company, Karlin Technology, sold its patents and patents pending to Medtronic, the medical device company, for $1.35 billion. His company is now held in trust to benefit Michelson's philanthropic work which includes supporting innovations in medicine, incentivizing research into animal population control and increasing access to vocational education.

Gary Michelson
Gary K. Michelson

Los Angeles, CA

In 2014, Michelson and his wife Alya donated $50 million to the University of Southern California to fund the Michelson Center for Convergent Bioscience. His Found Animal Foundation's Michelson Prize for Reproductive Biology has provided more than $15 million in grants toward eliminating animal shelter euthanasia - part of a pledge of $75 million made in 2008. In 2010 Michelson launched the 20 Million Minds Foundation to improve post-secondary and vocational education access and affordability. Learn more.

Since its inception in 2010, the Giving Pledge, Warren Buffett and Bill and Melinda Gates' effort to encourage the world's wealthiest to commit the majority of their assets to philanthropic causes, has garnered 143 signatories in 16 countries with a combined net worth of more than $710 billion.

Learn more about all the pledgers in our Glasspockets feature Eye on the Giving Pledge.

-- Daniel Matz

Eye On: Giving Pledger & Facebook COO Sheryl Sandberg
February 9, 2016

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

Sheryl Sandberg photoThis Bay Area philanthropist is passionate about gender equity and continues to “lean in” for women.

Sheryl Sandberg’s education and professional experience have helped cultivate her philanthropic interest in empowering women, global health and poverty, and the environment.

Through a recent public filing, we learned that the Facebook Chief Operating Officer, 43, has donated $31 million worth of Facebook shares to the Sheryl Sandberg Philanthropy Fund, a donor-advised fund at Fidelity Charitable.

Based on Sandberg’s giving interests, the majority of this latest gift will likely support women’s empowerment, particularly Sandberg’s own initiative, Lean In, and the Lean In Foundation, which are both committed to “empower[ing] all women to achieve their ambitions.” 

Spurred by the success of Sandberg’s bestselling, Lean In: Women, Work, and the Will to Lead, the Lean In Foundation seeks to inspire and support women through its online community, free expert lectures, and local peers groups called Lean In Circles.

Sheryl Sandberg:

  • Facebook Chief Operating Officer since 2008
  • Became first female board member at Facebook in 2012
  • Author of Lean In: Women, Work, and the Will to Lead
  • Founder of Leanin.org
  • 2015 Forbes Magazine rankings: #16 America’s Richest Self-Made Woman; #8 The World’s 100 Most Powerful Women; #1741 Billionaires
  • TIME Magazine’s 100 Most Influential People in the World in 2013 and 2012
  • Board member: Walt Disney Company, Women for Women International, the Center for Global Development, and V-Day
  • Resides in Menlo Park, California
  • Personal net worth is $1.3 billion

Professional Path to Philanthropy

While studying economics as an undergraduate at Harvard University, she met her mentor and thesis adviser Larry Summers.  She graduated with honors in 1991, the same year that Summers became chief economist at the World Bank.  As Summers’ research assistant for two years at the World Bank, Sandberg worked on various health projects in India, including Hansen’s Disease, AIDS and blindness.  

After earning her MBA at Harvard, Sandberg again teamed up with Summers, who was now Deputy Treasury Secretary under President Clinton.  As Summer’s chief of staff, Sandberg focused on debt forgiveness in developing countries; she continued in her role when he became Treasury Secretary. 

In 2001, Sandberg joined Google, where she helped develop the tech company’s philanthropic work, while heading its advertising and sales operations. 

“We wanted to do things that matter, not that were easy…We wanted to innovate, and we wanted to be disruptive,” Sandberg said of Google’s business and philanthropic principles during an annual gathering of philanthropists. 

Sandberg expanded Google’s giving principles so that it extended outside typical philanthropic boundaries, where charity generally stays within communities.  By focusing on worldwide issues – such as global health and poverty and climate change – Google’s philanthropic work could have a greater impact.

“We wanted to do things that matter, not that were easy…”

Since 2008, Sandberg has been a tremendous force at Facebook, where she helped the tech company scale its operations and expand globally.  By 2012, Facebook made its initial public stock offering, and Sandberg became the first woman on the company’s board of directors.

In addition to overseeing sales and business development, marketing and communications, Sandberg also expanded Facebook’s philanthropy.  Under her leadership, Facebook also highlighted organ donation; the addition of the status button helped spike the number of organ donor registrations.

Philanthropic Work

With her strong background in global issues, economics and philanthropy, it’s not surprising to see the evolution of Sandberg’s philanthropic philosophy.

Sandberg and her late husband, David Goldberg, founder and CEO of SurveyMonkey, joined the Giving Pledge in 2014.  Like Giving Pledge movement leaders Bill Gates and Warren Buffet, the couple pledged to donate the majority of their wealth during their lifetime.

The couple frequently advocated for gender equity and openly spoke about their support for shared earning/shared parenting marriage, whereby spouses equally share financial, family and parenting responsibilities.

Goldberg passed away in an accident in 2015.  In a heartfelt letter, Sandberg shared the importance of men leaning into their families.  Even in her grief, her passion for gender equity is evident, and she points to the benefits of gender equity for both men and women.

Sandberg has regularly leveraged her passion and influence to support causes she cares about.  In the Bay Area, Sandberg is co-chair of the Stand Up for Kids campaign, which supports the Second Harvest Food Bank of Santa Clara and San Mateo Counties.

The Menlo Park resident sits on the board of directors for Women for Women International, which helps women survivors of war become self-sufficient through microloans and job training; Center for Global Development, a Washington, D.C.-based nonprofit thinktank focused on international development; and V-Day, a global movement dedicated to ending violence against women and girls.  Sandberg is also on the board of the Walt Disney Company.

In 2013, Sandberg’s Lean In Foundation gave $415,000, according to tax returns. The gifts included $250,000 to Women for Women International; $80,000 to Stanford University for the Michelle R. Clayman Institute for Gender Research; $50,000 to V-Day; $25,000 to support the Open Field Foundation’s publication of “The Truth About a Woman’s Nation: Powerful, but Powerless”; and $10,000 seed money for the Wellesley Centers for Women at Wellesley College, a gender-focused research-and-action organization.

Empowering Women

Sandberg’s engagement in gender equity issues dates back to her Harvard days when she co-founded Women in Economics and Government.  Today, she regularly speaks on gender inequities, from TED talks to the World Economic Forum in Switzerland.  In 2015, Sandberg addressed U.S. Air Force Academy cadets on gender bias in the military.

In 2014, Sandberg and Lean In sponsored the Ban Bossy, a TV and social media advocacy campaign dedicated to banning the word “bossy” due to its perceived negative impact on young girls.  Celebrities including Beyonce, actress Jennifer Garner and former U.S. Secretary of State Condoleezza Rice contributed to the campaign’s video spots.

With her growing portfolio of philanthropic interests, from Lean In to her Fidelity fund, Sandberg is well positioned to be a major voice on gender and economic equality and the environment for years to come.

In the spirit of openness and transparency, it will be interesting to see if Sandberg, like her boss Mark Zuckerberg, will open up about the how and why of her philanthropy.  Zuckerberg and his wife Priscilla Chan recently launched the Chan Zuckerberg Initiative detailing the couple’s philanthropic plans.

Given Sandberg’s passion for global change and empowering women, we look forward to seeing her next philanthropic milestones and how she continues to inspire others.  

--Melissa Moy

Robert and Arlene Kogod Join the Giving Pledge
February 2, 2016

Egp-icon-typepadReal estate developer Robert Kogod and his wife, Arlene, have joined the Giving Pledge.

For decades Kogod served with his brother-in-law, Robert Smith, as co-CEO of Charles E. Smith Company - the firm founded by Arlene's father - developers of Crystal City, VA, the expansive commercial and residential complex across the Potomac River from Washington, DC.

The Kogods are known for their support of Jewish causes including the Shalom Hartman Institute in Israel and the Jewish Federation of Greater Washington. The couple is equally known as a major contributor to public life in the Washington, DC area, including support for the arts center at Sidwell Friends School, the Kogod School of Business at American University (where Mr. Kogod received his BA in 1962) and the Kogod Courtyard at the Old Post Office, for which their $25 million donation was, at the time, the fourth largest gift ever received by the Smithsonian Institution.

Since its inception in 2010, the Giving Pledge, Warren Buffett and Bill and Melinda Gates' effort to encourage the world's wealthiest to commit the majority of their assets to philanthropic causes, has garnered 142 signatories in 16 countries with a combined net worth of more than $708 billion.

Learn more about all the pledgers in our Glasspockets feature Eye on the Giving Pledge.

-- Daniel Matz

Just in Time for Christmas - Two More for the Giving Pledge
January 4, 2016

Egp-icon-typepadIn case you missed it - and just in time for Christmas - the Giving Pledge added two more signatories; both making their fortunes in health-related fields, but with widely different interests and approaches to philanthropy.

Kiran Mazumdar-Shaw established herself as one of the wealthiest women in India at the helm of biotechnology and pharmaceutical giant Biocon India, and now works to improve access to healthcare for India's rural poor.

Dr. Herbert Wertheim, founder of Brain Power Incorporated, the world's largest manufacturer of ophthalmic instruments, and his wife, Nicole, focus their philanthropy on building and sustaining major institutions in South Florida including medical and nursing schools.

Since its inception in 2010, the Giving Pledge, Warren Buffett and Bill and Melinda Gates' effort to encourage the world's wealthiest to commit the majority of their assets to philanthropic causes, has garnered 141 signatories in 16 countries with a combined net worth of more than $707 billion.

Learn more about all the pledgers in our Glasspockets feature Eye on the Giving Pledge.

-- Daniel Matz

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  • Transparency Talk, the Glasspockets blog, is a platform for candid and constructive conversation about foundation transparency and accountability. In this space, Foundation Center highlights strategies, findings, and best practices on the web and in foundations–illuminating the importance of having "glass pockets."

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