Vol. 5, Issue 46
   November 16, 1999

Sale of UPS Stock Doubles Foundation's Assets

Before the public offering, the Casey Foundation's 41.6 million shares of UPS stock — valued at $26 per share — accounted for roughly 56 percent of the value of the 51-year-old philanthropy's $1.8 billion in assets. After the market's close on Wednesday, November 10, the foundation's UPS stock was worth $2.8 billion and comprised nearly 80 percent of the value of the foundation's holdings.

Casey Foundation CFO Rama Ramanathan emphasized that the gain in the value of the foundation's assets was on paper only.

The foundation will wait several months to see where the price of UPS stock settles before deciding how to use its windfall, said foundation president Douglas W. Nelson. "We are hoping it builds a bigger base underneath the work we want to do in the next 10 years," Nelson added.

The Annie E. Casey Foundation was created in 1948 by UPS founder James Casey, who left most of his estate to the foundation when he died in 1983. Named for Casey's mother, a single parent, the organization focuses on helping needy children and families nationwide.

The foundation expects to give out $120 million this year. Its budget for next year, which has not yet been approved, projects about $146 million in grants.

FCnote: The Annie E. Casey Foundation (MD) had assets of $1,569,181,105 and made grants totaling $91,718,780 in the fiscal year ending 12/31/98.

Associated Press. Baltimore Sun 11/10/99.

Ambrose, Eileen. "Maryland Charity Gets $1.75 Billion Delivery; Casey Foundation Rides on UPS Stock." Baltimore Sun 11/11/99.

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BP Amoco Pledges $100 Million to California as Part of Merger Deal

BP Amoco announced on April 1 that it would buy ARCO in a deal valued at approximately $27 billion.

California Governor Gray Davis and state Attorney General Bill Lockyer praised BP Amoco's pledges, but Lockyer said the state is continuing to investigate how the proposed merger would affect California consumers. Lockyer maintains that state law gives him the authority to block a merger if he concludes that it would result in the creation of a monopoly.

According to Davis and BP Amoco CEO John Browne, the 10-year, $100-million commitment from the company represents a 25-percent increase over the approximately $8 million it contributed annually during the past decade. ARCO had budgeted $12 million in 1999 for its corporate giving. Lockyer said he intends to seek a legally binding agreement from the merged company that it would maintain ARCO's tradition of charitable giving.

FCnote: The BP Amoco Foundation (IL) had assets of $69,303,317 and made grants totaling $69,303,317 in the year ending 12/31/98.

FCnote: The ARCO Foundation (CA) had assets of $2,100,000 and made grants totaling $6,895,849 in the year ending 12/31/97.

Brooks, Nancy Rivera. "BP Amoco Makes Pledge of $100 Million in Charity." Los Angeles Times, 11/12/99.

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Goldman Sachs Lifts Restrictions on Stock for Charitable Donations

The 130-year-old firm went public in May in one of the largest initial public stock offerings in U.S. history. In the IPO, Goldman Sach 's 350 current and retired partners received roughly 256 million shares of stock collectively valued at some $19 billion.

Under Securities and Exchange Commission regulations, executives are forbidden from selling or transferring their stock for at least three years after an IPO. However, the firm has filed a registration statement with the SEC asking that charitable organizations be permitted to sell shares they receive from former Goldman partners. The waiver applies solely to shares donated for charitable purposes up to a value of $500 million.

"Goldman Sachs and its partners have a long tradition of charitable support and active community involvement," said Henry M. Paulson, Jr., chairman and CEO of the firm. "Since the public offering, the former partners have sought to direct a portion of the stock they received to educational and other charitable institutions. This transaction will accomplish exactly that."

Goldman Sachs also established a $200 million foundation with stock from its IPO. The company is expected to release details on the foundation's mission before the end of the month.

"Goldman Sachs To Facilitate Gifts To Charity." Goldman Sachs Press Release 11/10/99.

"Goldman Sachs Lifts Restrictions, Allows Executives to Donate Company Stock to Charity." Associated Press 11/11/99.

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Wal-Mart Chairman Stock Sale to Benefit Charity

In documents filed last week with the Securities and Exchange Commission, Walton, the eldest son of Wal-Mart founder Sam Walton, indicated he would sell the shares, currently worth about $112.3 million.

Wal-Mart officials declined to comment on the reason for the sale, but pointed to a 1998 announcement that the Walton family, through its partnership and individually, would over time sell as many as 25 million shares to raise money for "philanthropic purposes."

Since that announcement, the stock has split, bringing the total to be sold to 50 million. According to documents on file with the SEC, most of those shares have not yet been sold.

FCnote: S. Robson Walton is a director of the Walton Family Foundation, Inc. (AR), which had assets of $273,158,085 and made grants totaling $23,480,979 in the year ending 12/31/97.

Kuykendall, Kristal L. "1.9 Million Shares of Stock to Be Sold by Wal-Mart Heir."> Arkansas Democrat-Gazette 11/16/99.

"Wal-Mart Chairman To Sell Shares." Associated Press 10/16/99.

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Public-Private Partnership Aims to Provide Affordable Drugs for Malaria

Over 300 million new cases of clinical malaria are reported and more than 1 million people die from the disease every year. Affordable new drugs need to be distributed to communities in which the rate of transmission is high if the disease, which is beginning to show resistance to existing medications, is to be contained. The enormous cost of bringing new drugs to market, however, makes medications aimed at poor populations unattractive to most for-profit pharmaceutical companies.

Designed as an entrepreneurial venture, the nonprofit MMV will negotiate licensing agreements with its partners that make possible the commercialization of products for low-income populations at affordable prices. If royalty income accrues to MMV on products that earn significant returns for its partners, the resulting income will be set aside to help offset the need for future donations.

"We cannot face a mother whose child has just died of malaria and tell her: 'I am sorry; your child has died as a result of market failure' or, 'your child has died because the public sector is not able to take action.' We must do better than that," said Dr. Gro Harlem Brundtland, director-general of the World Health Organization.

For more information on WHO's public-private ventures aimed at eradicating infectious disease, see WHO Fact Sheet 235. To read the "WHO Report on Infectious Diseases," visit: http://www.who.org/infectious-disease-report/.

FCnote: The Rockefeller Foundation (NY) had assets of $3,094,733,452 and made grants totaling $99,262,759 in the fiscal year ending 12/31/97.

"Rockefeller Foundation, WHO, others establish Medicines for Malaria; Venture a Public-Private Partnership to Develop New Anti-Malaria Drugs Affordable to Countries Worst Hit by the Disease." Rockefeller Foundation Press Release 11/3/99.

"Dr. Gro Harlem Brundtland, Director-General World Health Organization, Statement at MVV Launch." WHO News Release 11/3/99.

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Disney Learning Partnership Names Teacher of the Year

As Outstanding Teacher of the Year, Lindner will receive $25,000. Linder's school will also receive $25,000, and her school district will receive $10,000. In addition, Lindner will participate in a professional development program that will allow her to share her methods and knowledge with teachers around the country.

Over the summer, Lindner was named a Disney's American Teacher Award Honoree, one of 39 teachers selected from among the 75,000 nominations submitted nationwide by students, parents, and colleagues. All 39 honorees spent a portion of the week of November 8 in Los Angeles as part of the final selection process. The teachers made presentations to a committee of education experts, who also watched taped footage of each teacher in the classroom and reviewed their applications and recommendation letters.

The American Teacher Awards are the foundation of the Disney Learning Partnership, the company's flagship philanthropic initiative. In addition to teacher recognition and support programs, the Learning Partnership is providing $6 million in grants to 32 schools, primarily from underserved areas, that have developed creative approaches to the specific learning challenges faced by their student populations.

FCnote: The Walt Disney Company Foundation (CA) had assets of $1,705,076 and made grants totaling $4,151,513 in the fiscal year ending 9/30/97.

"Teri Lindner Named Outstanding Teacher of the Year at Disney's American Teacher Awards State College, PA Teacher Receives $25,000, State College Area High School Receives $25,000 and Lindner's School District Receives $10,000." Disney Company Press Release 11/14/99.

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BellSouth Foundation Wraps Up Second Phase of Education Technology Program

"Teachers who engage in high-quality training will effectively integrate online technologies into the curriculum, so investing in teacher learning is investing in student learning," said BellSouth Foundation president Pat Willis, in announcing the initiative.

The edu.pwr3 project was launched in March 1999 with a pledge of $10 million from the Atlanta-based telco. The first phase of the project, called Power to Lead, focused on improving public school superintendents planning and budgeting skills for technology-related projects.

Announcement of the Power to Teach grant awards concludes the second phase of the edu.pwr3 project. Designed to provide high-quality technology training for teachers, the program has awarded grants averaging more than $100,000 to 36 school districts and teacher organizations in the Southeast.

The final phase of the edu.pwr3 project, Power to Learn, will award three to five schools in the region grants, services, and technology consultations designed to help them sustain a demonstrated excellence in technology well into the 21st century.

FCnote: The BellSouth Foundation (GA) had assets of $62,192,125 and made grants totaling $3,015,440 in the fiscal year ending 12/31/97.

"BellSouth Foundation Gives $5.5 Million in Teacher Technology Grants; Teaching Teachers is Next Step of $10-Million Grant Program." BellSouth Foundation Press Release 11/15/99.

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Entrepreneurs' Foundation Makes First Investment

The foundation's decision to invest in Partners was strongly influenced by the track record of its executive director, Julien Phillips, a former McKinsey & Company partner who also co-founded Ashoka: Innovators for the Public, the Arlington, Virginia-based nonprofit that pioneered recognition of and support for social entrepreneurs in developing countries around the world.

"Julien's broad business experience, vision, and commitment to improving the quality of education in low-performing schools made our decision an easy one," said EF founder and chairman Gib Myers. "Our goal is to help build a high performance organization delivering quality service to many Bay Area schools."

EF focuses on getting start-up high-tech companies involved in the community and on implementing new philanthropic models in the areas of education and youth development. When young companies join EF as members, they donate a small amount of their stock to the foundation. After they are acquired or go public, the capital from the sale of the stock is invested in selected community organizations. To date, 55 companies have signed on with the foundation.

"Entrepreneurs' Foundation Announces First Investment to Partners in School Innovation." Entrepreneurs' Foundation News Release 11/11/99.

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National School Boards and AOL Foundation Team Up to Promote Parental Involvement in Local Schools

The two-year pilot project was announced at the annual Technology Learning Conference in Dallas by America Online chairman and CEO Steve Case, who termed the project "an important tool in creating a new kind of community for schools and parents for the benefit of their kids."

The project is designed to make possible round-the-clock discussions about school issues while actively involving parents in the school decision-making process. School board members will serve as catalysts for online discussion by seeking out and listening to parents' concerns, facilitating public deliberation on school priorities, and communicating plans of action.

"Our ultimate goal is to raise student achievement," said Mike Fernandez, chairman of the NSBF and a vice president of U S WEST. "Studies show that the most accurate predictor of student success is the extent to which the student's family encourages learning, creates high expectations, and becomes involved in the school and the community."

Upon completion of the two-year pilot project, the participating programs will be evaluated and, following a final review, will serve as models to be replicated in school districts around the country.

FCnote: The AOL Foundation (VA) had assets of $1,601,842 and made grants totaling $398,158 in the year ending 12/31/98.

"National School Boards Foundation, AOL Foundation Partner to Improve Student Achievement." U.S. Newswire 11/11/99.

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Lucent Technologies Foundation Announces Grants to Science Centers

The foundation will provide funding through its outreach program to science centers in ten U.S. locations. In addition, three science centers outside the U.S. — in Beijing, Paris, and Toronto — will also receive grants.

"We believe that through strong partnerships with the schools and their surrounding communities, science centers can create valuable opportunities for young people to explore their interests in science, mathematics and technology," said Lucent Foundation president David Ford.

The grants range from one-year planning grants of up to $50,000 to multi-year grants of more than $300,000, renewable on successful completion of annual project objectives. For information about applying for Lucent Science Center Grants, contact Informal Learning Experiences, Inc. at (202) 362-3596.

FCnote: The Lucent Technologies Foundation had assets of $40,060,217 and made grants totaling $7,794,648 in the fiscal year ending 9/30/97.

"Lucent Technologies Foundation awards $1 Million to 13 Science Centers Worldwide." Lucent Technologies Press Release 11/8/99.

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Patty Stonesifer, Gates Foundation Co-Chair, Profile

With no previous professional philanthropic experience beyond her own million-dollar donation in 1998 to the Multi-Service Centers, a Redmond, Washington-based family crisis program to which she had volunteered a considerable amount of time, Stonesifer has become a central figure in the Gateses' philanthropic work.

Currently, Stonesifer serves with William H. Gates, Sr. as co-chair of the Bill and Melinda Gates Foundation, the $17.1 billion philanthropy formed by the recent merger of the William H. Gates and Gates Learning foundations. (See http://fdncenter.org/pnd/990824/002870.html for more on the merger.) In order to maximize the impact of the new foundation's giving, Stonesifer has helped narrow its focus to issues related to global health and education.

Stonesifer points out that although Gates's assets are vast, a gift of just $350 each to every American would extinguish his fortune. "You can do a lot with the money," Stonesifer says, "or you can dribble it away. One reason why Bill and Melinda are committed to giving it back is that it makes most sense when you divide it into what it can do. As a giant bucket, it's kind of an irrelevant number."

Brief biographies of the leaders of the Bill and Melinda Gates Foundation are available here.

Trish Deitch Rohrer. "Meet MS. Moneybags." Elle Magazine, December 1999. (Volume XV Number 4 NO. 172.)

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Study Reveals Business Women Are Substantial Givers

The study, funded by Merrill Lynch, surveyed members of the Committee of 200, an organization comprised of business women who own companies with revenues over $15 million or who manage divisions of U.S. corporations that generate a minimum of $100 million in revenue annually.

Survey respondents reported participation in a wide array of philanthropic activities. More than half (56 percent) said educational reform was among the top three causes they supported; 42 percent mentioned women-related causes; and 41 percent listed arts-related groups as among their favorite philanthropies.

"As the NFWBO research has found, business women of achievement have very clear intentions about how much and to whom they are giving," said Doris Meister, chairman and CEO of Merrill Lynch Trust Company.

"The research also has some interesting lessons for philanthropic organizations," added Meister. "[F]or example, many of these women say they are put off by the way they are asked to give."

The survey results were announced November 12 at "Philanthropy Transformed: The Powerful New Voice of Women," a Boston conference sponsored by Merrill Lynch and co-hosted by the Committee of 200 and the Simmons Graduate School of Management.

FCnote: The Merrill Lynch & Co., Inc. Corporate Giving Program (NY) made grants totaling $18,968,112 in the year ending 12/31/98.

FCnote: The Merrill Lynch & Company Foundation, Inc. (NJ) had assets of $44,214,372 and made grants totaling $14,609,957 in the year ending 12/31/98.

"Business Women of Achievement Are Independent Philanthropists." The National Foundation for Women Business Owners Press Release. 11/12/99

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Arts & Business Council and American Express Announces Arts Marketing Grants

The National Arts Marketing Project is a $1.5 million program devoted to helping small and moderate-sized arts organizations increase their earned income by learning and adapting the successful marketing techniques used by small businesses. Through the program, the Arts & Business Council hopes to help solve the problems these groups have historically faced in their marketing efforts — lack of upfront capital and the risk aversion that accompanies it.

Sixteen of the grant recipients will receive between $7,500 and $25,000 to implement marketing plans they submitted last April and May after participating in a training retreat. The remaining sixteen groups will each receive a grant for $1,500 to underwrite their participation in the training program.

"These organizations have the opportunity to break new ground in audience development for themselves, as well as for others working in their art form," said Gary Steur, president and CEO of the Arts & Business Council. "The grants allow them to explore new ways to increase earned income that they would be unable to try otherwise."

FCnote: The American Express Company Contributions Program (NY) made grants totaling $8,720,155 in the year ending 12/31/98.

FCnote: The American Express Foundation (NY) had assets of $46,952,445 and made grants totaling $14,259,007 in the year ending 12/31/97.

"The Arts & Business Council and American Express Announce $300,000 in Grants for New Audience Development." Arts & Business Council Press Release 11/10/99.

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The Foundation Center