Transparency Talk

Category: "Silicon Valley" (4 posts)

Giving and Telling for Good: Creating a Culture of Corporate Philanthropy
May 31, 2018

Debbie Johnson is author of Give for Good: A How-to-Guide for Business Giving.

2x3Debbie IMG 008Establishing and promoting a corporate giving program or charitable program within a small business may seem like a daunting task that you worry may be a distraction from the day-to-day demands of growing your business. However, it turns out that giving and talking about it can actually help your business. For example, the youngest generations now entering the workforce especially love giving back so now is a great time to focus on creating a culture of philanthropy in your business. Generation Y and Generation Z workers aren’t likely to let their employers NOT have a culture of philanthropy so why not be proactive and integrate it into the fabric of your business now? These five steps will support you in building the culture you want:

1. Engage employees

Actively create opportunities for your staff to participate in philanthropy.

  • Devise group projects where staff can volunteer together
  • Match-make employees to board positions that coincide with their interests and career goals while also benefiting the company
  • Encourage employees to volunteer according to their personal passions, offering a certain amount of paid time off for them to give back
  • Give each employee ‘philanthropy dollars’ for them to donate to an organization or organizations of their choosing.

Austin-based signage company BuildASign’s philanthropic mission is to positively impact the communities of their customers, so they strongly encourage their employees to get involved in giving back. After receiving a signage donation request from the Leukemia/Lymphoma Society for their walk named “Light the Night,” instead of just answering the request right away, both organizations took the time to get to know one another’s culture and to understand what it would take to build a successful, long-term relationship. That simple request became a full-fledged effort including not only discounted product (signage) but also employee engagement through matching donations. A total of 50 employees personally volunteered in the walk itself and BuildASign additionally held employee poker tournaments to raise money for the walk. The experience provided the ability for fun and team-building among participating employees while also advancing the goal of making a positive difference in the community—a classic win-win. The employees now look forward to doing it every year.

2. Make it personal

Inspiring your employees to serve is a great place to start. If they do it once, they will likely come back for more.

  • Create opportunities for employees to tell their stories about their volunteer and philanthropy experiences to others and the impact it had on their lives. This inspiration can then serve to encourage other employees and make it easier for others to see themselves as a potential volunteer.
  • Given how motivational these stories can be, encourage employees to share these stories at town hall meetings, in company newsletters, during group meetings and best yet, by posting photos and videos.

Silicon Labs does a great job of encouraging their employees to give back including offering paid time off (PTO) to make it really easy, and the employees enjoy sharing about the difference they are making. See these examples of how their employees share their adventures in giving back on their internal social media platform.

1

1

3. Talk about it

Your company should regularly communicate what it is doing to support the community. It lets your employees know that it’s a priority and your customers and community know it is integral to the company’s brand.

  • Send media releases
  • Provide updates at staff meetings
  • Post stories and videos on your website
  • Share your areas of focus with your customers and vendors and encourage them to participate.

Red Fan Communications provides a good model for sharing its stories across multiple platforms, including social media, e-newsletters, and during speaking engagements. One particularly good example is when president and founder, Kathleen Lucente was invited to appear on We Are Austin, a local CBS’ TV program, to talk about Red Fan’s philanthropy in Austin because of the growing awareness around the company’s community support and she reflected about how giving back is “baked into their DNA,” reinforcing that philanthropy is core to the company’s values and culture.

4. Model it

As with most initiatives, they are most successful when supported from the top of the organization.

  • Share the leadership vision for the company’s philanthropy
  • Have company leaders model philanthropic behavior
  • Have leaders share why philanthropy and community engagement are important to them.

2Bobby Jenkins, president of ABC Home and Commercial Services, epitomizes philanthropic leadership. Not only does he participate in the many events and philanthropy-oriented activities his company sponsors but he and his two brothers created “Brothers Bike”, a 3,500 mile cross country ride from Seattle to New York City to raise funds and awareness for two charities near and dear to the family. As notable as the bike ride became, perhaps even more important is Bobby’s visibility in the local community where he is out front leading his team’s participation in myriad community and philanthropic efforts.

5. Celebrate it

Celebrating giving back lets your staff know that the organization is serious about its philanthropy.

  • Provide acknowledgement and awards to employees who exemplify giving back
  • Hold parties or happy hours at the end of a group project
  • Provide company t-shirts that highlight a specific volunteer event for the employees who participate.

1Salesforce, the San Francisco-based cloud computing company, is a great example of a corporation that gives back while also lifting up employees as positive examples for others to emulate. Its hub offices have large framed photos of employees volunteering all around the world.  These pictures are obtained from “Aloha Ambassadors,” employees who are passionate about their culture. These ambassadors plan volunteer events and then get points for taking pictures and posting them in Chatter, Salesforce’s internal collaboration tool. The points can be used for prizes such as Salesforce t-shirts and hoodies. What a great way to visually show the company’s culture of giving back!

Integrating philanthropy into your company culture will not only foster momentum for giving back but will also attract and retain employees who share the value of generosity. Tom Kochan of MIT’s Sloan School of Management says that taking the time and energy to foster a culture of philanthropy in your business will pay off financially and strategically resulting in employees whose values align with your company’s, making them ultimately happier and more loyal. What a great win-win for the company, your employees and the community!

--Debbie Johnson

Glasspockets Find – Can the Silicon Valley Giving Code Be Cracked?
December 21, 2016

The fast and furious pace of Silicon Valley’s tech innovation culture has also given rise to burgeoning new wealth, and yes, new philanthropy.  From 2008 to 2013, total Silicon Valley-based individual giving increased 150%, from $1.9 billion to $4.8 billion, according to a new report. But how do established nonprofit groups make contact with the new philanthropic powerhouses in the neighborhood?

“Just blocks away from the region’s booming tech companies but (local nonprofits) aren’t sure how to attract Silicon Valley’s philanthropy to their causes.”

This question is at the heart of the new report, “The Giving Code: Silicon Valley Nonprofits and Philanthropy,” documenting the rising challenge local Silicon Valley nonprofits face in attracting funding from some of the world’s most generous funders – right in their own backyard.  Despite this wealth of local resources, about 30% of the community-based organizations focused on providing local safety net support – such as homelessness, poverty, troubled public schools – reported higher deficits than the national average.

The authors noted the region is developing an “emerging giving code – an implicit set of strategies and approaches shared by Silicon Valley’s individual, corporate, and institutional philanthropists alike.”  This approach to giving is “widely shared among the region’s new philanthropists” and heavily influenced by technology and business. 

Giving Code Report CoverWith support from The David and Lucile Packard Foundation, Open Impact gathered data from more than 300 Silicon Valley stakeholders, such as wealthy residents and their advisors, nonprofit executives, corporate and private foundation giving officers, and thought partners across all sectors. 

A key issue raised in the report: Although Silicon Valley philanthropists give funds to local issues and causes, most but most are earmarked for private schools, universities and hospitals rather than for community-based organizations. 

The report stated, “These nonprofits are struggling to keep pace with exponential increases in demand for their services, lack the capacity and the funding to gain real traction, or are themselves in financial distress.  Some have offices just blocks away from the region’s booming tech companies—but they aren’t sure how to attract Silicon Valley’s philanthropy to their causes.  The support they need to have more systemic impact is often right next door, but it is not a door they know how to open.”

Silicon Valley Demographics

Although the Silicon Valley boasts a growing number of millionaires and billionaires, many of its 2.6 million residents are facing financial distress due to the high cost of living. About 29.5% or 800,000 people rely on public or private assistance.  The median sale price of a home in 2015 was $830,361, and in some neighborhoods, homes are two or three times that price.  Since 2011, rents have increased 27%, which is 227% higher than the national average.

Many of Silicon Valley’s community-based organizations operate on a small scale and are doing their best to meet the needs of a growing displaced and vulnerable population.  These organizations have little time, capacity or resources to advocate for systemic change – which appeals to many philanthropists seeking strategic impact.

Barriers to Local Giving

The report identified barriers to local giving:

  • The small size of community-based nonprofits, which have minimal capacity to partner with foundations, corporations and individual donors in the ways philanthropists expect or meet requirements that come with large grants.
  • The cultural divide between the new Silicon Valley donor and traditional nonprofits. Many Silicon Valley donors have business backgrounds and prefer a “return on investment”; they believe they will have more impact in a developing country, where costs and barriers are often low.
  • Knowledge and information gaps – local nonprofits do not know how to make contact with the new donors on the philanthropic scene; and new philanthropists lack awareness of local nonprofits and local needs.
  • Social network and experience gap – community-based nonprofit leaders and new philanthropists “don’t move in the same social circles.”
  • Mindsets and language gap – nonprofit leaders speak a kind of “moral language that emphasizes social responsibility, social justice, equity and the common good” and they use jargon like “empower,” “transformation,” and “theory of change.” Meanwhile, new philanthropists and donors speak in the language of “business, efficiency, and bottom-line profits… they talk about the ‘biggest bang for the buck’ not just in business but in their philanthropy.”

The authors noted that the combination of these gaps – knowledge and information gap, social network and experience – contribute to and reinforce an empathy gap that is felt by both sides.  Therefore, wealthy tech entrepreneurs don’t understand nonprofit leaders, and vice versa, which may lead to judgment and ultimately make it more difficult to “recognize how their work, their passions, their skills, and insights might align for the betterment of their shared local community.”

This report also captures hope amidst struggle.  This hope may be best manifested by the funder of the report, the David and Lucile Packard Foundation, which was one of the very first Silicon Valley philanthropies to emerge in the region.  The foundation was established in 1964 following the birth of the Hewlett-Packard Company, which was ahead of the curve, i.e. the now familiar trajectory of moving from garage shop tinkering to tech powerhouse. Today, despite being a large, global foundation, the Packard Foundation maintains an active grantmaking program that supports local communities.

The report concluded that potential opportunities to develop a more effective and collaborative Giving Code will “spark the creation of an even more powerful Silicon Valley giving code: one that works on behalf of all the region’s residents.”

--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

Glasspockets Find: Laura Arrillaga-Andreessen Talks About Philanthropic Transparency
March 24, 2015

(Eliza Smith is the Special Projects Associate for Glasspockets at Foundation Center-San Francisco.)

6a00e54efc2f80883301a511bd210d970c-150wi“Giving away money is easy — doing so effectively is much harder,” says Silicon Valley philanthropist Laura Arrillaga-Andreessen in a recent article from the Washington Post. So often, transparency focuses on where foundations are making gifts. But Arrillaga-Andreessen argues foundations and individual donors should also be open about why they give: knowledge sharing boosts impact and effectiveness of foundations sector-wide.

“By sharing why we’re making those decisions, we’re enabling other people to direct their resources in a more informed way as well. By having glass skulls, we’re breaking down the intellectual silos in which philanthropy has traditionally operated.”

Arrillaga-Andreessen believes foundations and donors shouldn’t just have glass pockets, but glass skulls as well. “Every time we make a gift to one organization, we’re simultaneously deciding not to give, indirectly, to countless other organizations,” Arrillaga-Andreessen says. “By sharing why we’re making those decisions, we’re enabling other people to direct their resources in a more informed way as well. By having glass skulls, we’re breaking down the intellectual silos in which philanthropy has traditionally operated.”

Arrillaga-Andreessen helps the up-and-coming crop of philanthropists—like Mark Zuckerberg and Priscilla Chan, Meg Whitman, and Brian Chesky—make smart social investments. She’s observed that transparency around giving is not only appealing to wealthy millennials, but it also comes naturally. “It’s a generation that has grown up with a sense of global community and awareness that transcends traditional geographic boundaries and also a group that has become grown-ups with data as a key driver of decision-making,” she says. “Those two external influences naturally lead many individuals to sharing that particular philanthropic approach.” With millennials at the helm of philanthropy, the future for foundation transparency looks bright.

You can read the full article and interview with Arrillaga-Andreessen here

--Eliza Smith

Share This Blog

  • Share This

About Transparency Talk

  • 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."

    The views expressed in this blog do not necessarily reflect the views of the Foundation Center.

    Questions and comments may be
    directed to:

    Janet Camarena
    Director, Transparency Initiatives
    Foundation Center

    If you are interested in being a
    guest contributor, contact:
    glasspockets@foundationcenter.org

Subscribe to Transparency Talk

Categories