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Tag: Philanthropic foundations

  • Q&A: Jacob Harold creates philanthropist ‘toolbox,’ guide

    Q&A: Jacob Harold creates philanthropist ‘toolbox,’ guide

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    Jacob Harold believes philanthropy needs more “strategic promiscuity” – battling the world’s problems using a variety of approaches.

    It’s an idea that mirrors his wide-ranging career. Harold was president and CEO of GuideStar before it merged with Foundation Center to form the even larger nonprofit information source Candid, which he co-founded. He worked with the William and Flora Hewlett Foundation to make its giving more effective and with The Bridgespan Group, he helped philanthropists and foundations donate more intentionally. As a strategist for Greenpeace USA and Rainforest Action Network, he deployed those donations.

    “We can’t afford as a field and as a species to leave great ideas on the table right now,” Harold said. “If that great idea is born in some small organization, we have to figure out what is its pathway into government policy. What is its pathway into the marketplace? We can’t predict that, but we can equip people to have a better chance of getting there.”

    To boost those chances, Harold wrote “The Toolbox: Strategies for Crafting Social Impact,” which hit bookshelves Thursday. “The Toolbox” offers nine strategies, or tools, philanthropists can use on a problem – from storytelling to behavioral economics to community organizing.

    “I hope people who have only one lens — all they have is a hammer, so the whole world looks like a nail – read this and just sort of pause and see that there’s other stuff out there,” Harold said. “And I want people feeling discouraged and hopeless in this strange moment to be reminded of the abundance of options and the abundance of learning and resources that are out there.”

    Harold, 45, recently spoke with The Associated Press about his new book and how he hopes it helps nonprofits reach more donors. The interview was edited for clarity and length.

    Q: Why did you want to write this book?

    A: It goes back to my time at the Hewlett Foundation a decade ago where I’m sitting there in the fancy office of a $10 billion dollar foundation and the smartest social entrepreneurs in the world are coming to us pitching big ideas. Then, for lunch, we’ll have a great philosopher or a brilliant psychologist come in and give a talk. Or we’ll go across the street to Stanford and hang out at the design school. We were just so privileged to see all these different ways of thinking about social change. And I realized no one else had that level of privilege. So the first point of the book is “Let’s just share that abundance of ways of thinking about social good.” Over the centuries, people have put so much thought and time into figuring out how to do it and we’ve actually learned a lot.

    Q: You said that’s your hopeful reason. What’s the less hopeful reason?

    A: Part of me was kind of angry because so many people are so convinced that their one approach was the only way to succeed. So many of the failures we’ve seen in the social sector over the last 20 years come from people so obsessed with a particular framework that they don’t acknowledge the complexity of the world.

    Q: How do you want readers to use this book?

    A: I think most everyone is going to come to this with one of these tools as a framework that they’re already using. Maybe they come from the business world and use a market mindset. Or they come from journalism and they bring a storytelling mindset. I hope first they would see some affirmation in what they already have, but then seed their mind with these other ways of thinking… I would also expect that someone will read this book and say, “Seven of these tools make sense to me and two of them made no sense at all.” That is OK. It’s not that everyone has to master every way of thinking. It’s just that we have to recognize that the world’s too complicated for any one way to be enough.

    Q: Why is it important for this book to come out now?

    A: Right now, so many of us feel emotionally overwhelmed. There’s a lot of anxiety. We need to act in the face of all these challenges, but we also need to have confidence that we actually can succeed.

    Q: To what extent can philanthropy get things done when compared to governments, especially in a global issue like climate change?

    A: That’s one thing that I struggled with in this book that the classic reader of this book would be a nonprofit manager or a foundation staffer. But there are lots of people in the business world and in government working full time to make a better world. And they need tools too. The people in government trying to figure out the right policies to address climate change need to have frameworks in their minds as well. And we actually need every sector applying every lesson to address a question like climate change. Climate change, to me, is the perfect example of a problem that can’t be solved with a single solution.

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    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • Fidelity Charitable: New grants to surpass deposits in 2022

    Fidelity Charitable: New grants to surpass deposits in 2022

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    Fidelity Charitable, the nation’s largest grantmaker, expects 2022 will be the first year since 2018 that the value of grants from its donor advised funds exceeds the value of investments going into the funds.

    Jacob Pruitt, Fidelity Charitable’s president, told The Associated Press that donations this year are on track to set a record, even before counting gifts from GivingTuesday, which has grown into a major fundraising day for charities since its launch 10 years ago. In 2021, Fidelity Charitable donated more than $10.3 billion in donor-recommended grants to more than 187,000 organizations.

    “It’s kind of amazing when you think about the generosity,” Pruitt said. “Even in spite of inflation and all kinds of noise in the marketplace, our donors are truly engaging and getting money to the right places.”

    Pruitt cautioned that December generally brings plenty of investments into donor advised funds — or DAFs — as people move money around for tax purposes. However, he also expects strong end-of-the-year donations as well.

    “With the situation in Ukraine and all these natural disasters, our donors are ready,” Pruitt said. “That’s what these accounts are designed for. Individuals put money in and they grow. Then, when there’s a scenario where it’s needed, it can flow out in a thoughtful way. And so I think that the platform is doing what it is there to do.”

    The strength of Fidelity Charitable grants comes at a time when donor advised funds are under fire for what critics call loopholes that allow donors to receive tax benefits immediately, while grants can be delayed indefinitely. The bipartisan Accelerating Charitable Efforts Act to require funds invested in donor advised funds to be granted to nonprofits within 15 years is under consideration in Congress.

    Chuck Collins, director of the Program on Inequality and the Common Good at the Institute for Policy Studies, said the growth of donor advised funds remains troubling because loopholes in their oversight allow billions of dollars to be parked in the funds instead of going to communities in taxes or directly to charities.

    “It’s great that more money is flowing out,” Collins said. “But we want to know more. We want to know that it’s reaching charities instead of being shuffled around from DAF to DAF.”

    In “ Gilded Giving 2022,” a study Collins co-authored, he found that the popularity of DAFs is speeding a shift in philanthropic donations from community-building to legacy-building gifts to universities and museums.

    However, Pruitt said donor advised funds can help reverse the ongoing drop in the number of individual donors in America. He said Fidelity Charitable removed the $10,000 minimum requirement to open a donor advised fund, making it available to everyone.

    “It’s simple, effective and it allowed individuals from all walks of life to have an opportunity to participate in this amazing product,” he said. “What we’re focusing on next is expanding the education and awareness in the marketplace.”

    Fidelity Charitable recently began offering NFTs in an effort to reach younger investors. And Pruitt said it is also working on improving its smartphone apps.

    “We want to make sure that these tools are where the next generation of investors are,” he said. “We want to continue to make this simple and effective from a digital perspective so people can engage in a comfortable way.”

    However, Collins said the issue with the declining number of individual donors isn’t due to a lack of technology. It’s due to a lack of money.

    “Fewer middle class and lower middle class people are donating and it has nothing to do with tax laws,” he said. “It has to do with economic insecurity. They have less money and less of a cushion for donations.”

    Rather than opening more donor advised funds, Collins suggests that people simply donate directly to charities in their communities, much like many nonprofits on GivingTuesday suggest.

    GivingTuesday CEO Asha Curran said the day raised $2.7 billion in 2021 and offers people many ways to show their generosity.

    “The relatively small act of giving something invests a person in their community in ways that have powerful knock on effects,” she said. “Once a person is a giver and really feels like ‘I have the capacity to make a difference in the world,’ there are many, many wonderful things that happen in terms of their place in their community as a result.”

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    Associated Press reporter Thalia Beaty contributed to this report from New York.

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    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • Hong Kong court convicts Cardinal Zen, 5 others over fund

    Hong Kong court convicts Cardinal Zen, 5 others over fund

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    HONG KONG — A 90-year-old Catholic cardinal and five others in Hong Kong were fined after being found guilty Friday of failing to register a now-defunct fund that aimed to help people arrested in the widespread protests three years ago.

    Cardinal Joseph Zen, a retired bishop and a vocal democracy advocate of the city, arrived at court in a black outfit and used a walking stick. He was first arrested in May on suspicion of colluding with foreign forces under a Beijing-imposed National Security Law. His arrest sent shockwaves through the Catholic community, although the Vatican only stated it was monitoring the development of the situation closely.

    While Zen and other activists at the trial have not yet been charged with national security-related charges, they were charged with failing to properly register the 612 Humanitarian Relief Fund, which helped pay medical and legal fees for arrested protesters beginning in 2019. It ceased operations in October 2021.

    Zen, alongside singer Denise Ho, scholar Hui Po Keung, former pro-democracy lawmakers Margaret Ng and Cyd Ho, were trustees of the fund. They were each fined 4,000 Hong Kong dollars ($512). A sixth defendant, Sze Ching-wee, was the fund’s secretary and was fined HK$2500 ($320).

    The Societies Ordinance requires local organizations to register or apply for an exemption within a month of their establishment. Those who failed to do so face a fine of up to HK$10,000 ($1,273), with no jail time, upon first conviction.

    Handing down the verdict, Principal Magistrate Ada Yim ruled that the fund is considered an organization that is obliged to register as it was not purely for charity purposes.

    The National Security Law has crippled Hong Kong’s pro-democracy movement since its enactment in 2020, with many activists being arrested or jailed in the semi-autonomous Chinese city. Hong Kong, a former British colony, returned to China’s rule in 1997.

    The impact of the law has also damaged faith in the future of the international financial hub, with a growing number of young professionals responding to the shrinking freedoms by emigrating overseas.

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  • Buffett donates over $750 million to his family charities

    Buffett donates over $750 million to his family charities

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    OMAHA, Neb. — Billionaire investor Warren Buffett donated more than $750 million in Berkshire Hathaway stock to the four foundations run by his family Wednesday, but unlike his annual gifts to charity each summer, the recipients didn’t include the Bill & Melinda Gates Foundation.

    Buffett has been making annual donations to the same five charities every year since 2006 when he unveiled a plan to give away his fortune over time, with the Gates Foundation receiving the biggest donations. Wednesday’s donations mark the first time the 92-year-old has made a second major gift within the same year.

    A filing with the Securities and Exchange Commission showed Buffett gave 1.5 million Class B shares in the Omaha, Nebraska-based conglomerate he leads to the Susan Thompson Buffett Foundation, named for his first wife. He also gave 300,000 Class B shares apiece to the three foundations run by his children: the Sherwood Foundation, the Howard G. Buffett Foundation and the NoVo Foundation.

    In June, he gave 11 million Class B shares to the Gates Foundation, 1.1 million B shares to the Susan Thompson Buffett Foundation and 770,218 shares apiece to his children’s three foundations.

    It wasn’t immediately clear what prompted the new donations this week, and Buffett didn’t immediately respond Wednesday to questions about them. The Gates Foundation and the Buffett family foundations that received the gifts also didn’t immediately respond to questions.

    The only other major change Buffett has made to his giving plans over the years came a decade ago when he significantly increased the amount pledged to the foundations his children run because he was pleased with what they had done with his money.

    The Susan Thompson Buffett Foundation keeps a low profile, but over the years it has been a major supporter of abortion rights, making large gifts to Planned Parenthood and other groups. Buffett hasn’t announced any changes in his giving plans since the U.S. Supreme Court overturned Roe v. Wade earlier this year.

    Susie Buffett, 69, uses her Sherwood Foundation to strengthen early childhood education and support a number of projects around Buffett’s hometown of Omaha where she also lives. Howard Buffett, 67, is helping farmers in impoverished nations produce more and working to end world hunger with his namesake foundation. Peter Buffett, 64, has dedicated his NoVo Foundation to empowering women and girls worldwide through education, collaboration and economic development to end violence against women.

    Even after these latest gifts, Buffett still controls more than 31% of Berkshire’s voting power.

    Berkshire Hathaway is an eclectic conglomerate that owns more than 90 companies including BNSF railroad, Geico insurance, several major utilities and an assortment of manufacturing and retail firms including Precision Castparts, Dairy Queen and Helzberg Diamonds. In addition to the companies it owns outright, Berkshire owns major investments in Apple, Bank of America, Coca-Cola and other companies.

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  • Pope ousts leadership of Caritas Internationalis charity

    Pope ousts leadership of Caritas Internationalis charity

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    ROME — Pope Francis on Tuesday ousted the management of the Vatican’s international charitable organization Caritas Internationalis and appointed temporary leadership after an external review found management and morale problems at its head office.

    A Vatican statement said the review found no evidence of financial mismanagement or sexual impropriety. But it said other issues did emerge, with “real deficiencies” found in management, “seriously prejudicing team spirit and staff morale.”

    Ousted was the secretary general of Caritas Internationalis, Aloysius John, who was elected in a contested vote in 2019, as well as the leadership and governance team. The changes do not affect the leadership of any of the 162 national development and relief organizations that make up the Caritas global confederation.

    Caritas Internationalis is one of the Holy See’s main charity organizations and acts as the global umbrella for national and regional federations that operate in more than 200 countries. The Rome-based secretariat reported income of some 5.1 million euros ($5.2 million) in 2020 and expenditures of 4.4 million euros, according to the annual statement.

    John, an Indian native, had been brought into the Caritas Internationalis’ management structure as head of development in 2013 by its previous secretary general, Michele Roy, from the French Caritas federation, known as Secours Catholique. When Roy’s term ended, John ran for the position of secretary general and won after other initial candidates dropped out, and after initially failing to win a majority of votes.

    A former Caritas employee who cooperated with the external reviewers said he recounted instances of bullying and incompetence under John, especially in the handling of the fallout of a sex abuse scandal in the Caritas’ operations in Central African Republic. The former employee spoke on condition of anonymity, citing a fear of retaliation.

    In late 2019, in response to a CNN investigation, Roy admitted he had learned in 2017 of pedophilia concerns about the director of the Bangui Caritas operations, but left it to the priest’s immediate superiors to investigate. They did not, and CNN identified at least two child victims while the priest was in the country.

    John didn’t respond to an email seeking comment.

    Francis named as temporary administrator of Caritas Internationalis Pier Francesco Pinelli, an organizational consultant who had participated in the external review and will lead the organization until new elections for a secretary general are held in 2023. The current head of advocacy, Maria Amparo Alonso Escobar, stays on and Francis appointed a Jesuit priest to help with the “personal and spiritual accompaniment of the staff.”

    Caritas’ current president, Cardinal Luis Antonio Tagle, who heads the Vatican’s evangelization department, will remain on to work under the new temporary administrators, the statement said.

    Pinelli had taken part in a 2021 evaluation of the Vatican’s development office, which resulted in a shakeup of the leadership team there and the appointment of Cardinal Michael Czerny, a top Francis ally, as prefect. Caritas Internationalis is part of the development office.

    In a statement Tuesday, the development office said the review of Caritas was undertaken to asses the secretariat office’s “alignment with Catholic values of human dignity and respect for each person.”

    Czerny said the changes should enable Caritas to meet the challenges of serving the “least and the suffering” but also to make sure that it does so making sure the organization “proves equal to its mission.”

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  • World Population hits 8 billion, creating many challenges

    World Population hits 8 billion, creating many challenges

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    LAGOS, Nigeria — The world’s population is projected to hit an estimated 8 billion people on Tuesday, according to a United Nations projection, with much of the growth coming from developing nations in Africa.

    Among them is Nigeria, where resources are already stretched to the limit. More than 15 million people in Lagos compete for everything from electricity to light their homes to spots on crowded buses, often for two-hour commutes each way in this sprawling megacity. Some Nigerian children set off for school as early as 5 a.m.

    And over the next three decades, the West African nation’s population is expected to soar even more: from 216 million this year to 375 million, the U.N. says. That will make Nigeria the fourth-most populous country in the world after India, China and the United States.

    “We are already overstretching what we have — the housing, roads, the hospitals, schools. Everything is overstretched,” said Gyang Dalyop, an urban planning and development consultant in Nigeria.

    The U.N.’s Day of 8 Billion milestone Tuesday is more symbolic than precise, officials are careful to note in a wide-ranging report released over the summer that makes some staggering projections.

    The upward trend threatens to leave even more people in developing countries further behind, as governments struggle to provide enough classrooms and jobs for a rapidly growing number of youth, and food insecurity becomes an even more urgent problem.

    Nigeria is among eight countries the U.N says will account for more than half the world’s population growth between now and 2050 — along with fellow African nations Congo, Ethiopia and Tanzania.

    “The population in many countries in sub-Saharan Africa is projected to double between 2022 and 2050, putting additional pressure on already strained resources and challenging policies aimed to reduce poverty and inequalities,” the U.N. report said.

    It projected the world’s population will reach around 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100.

    Other countries rounding out the list with the fastest growing populations are Egypt, Pakistan, the Philippines and India, which is set to overtake China as the world’s most populous nation next year.

    In Congo’s capital, Kinshasa, where more than 12 million people live, many families struggle to find affordable housing and pay school fees. While elementary pupils attend for free, older children’s chances depend on their parents’ incomes.

    “My children took turns” going to school, said Luc Kyungu, a Kinshasa truck driver who has six children. “Two studied while others waited because of money. If I didn’t have so many children, they would have finished their studies on time.”

    Rapid population growth also means more people vying for scarce water resources and leaves more families facing hunger as climate change increasingly impacts crop production in many parts of the world.

    “There is also a greater pressure on the environment, increasing the challenges to food security that is also compounded by climate change,” said Dr. Srinath Reddy, president of the Public Health Foundation of India. “Reducing inequality while focusing on adapting and mitigating climate change should be where our policy makers’ focus should be.”

    Still, experts say the bigger threat to the environment is consumption, which is highest in developed countries not undergoing big population increases.

    “Global evidence shows that a small portion of the world’s people use most of the Earth’s resources and produce most of its greenhouse gas emissions,” said Poonam Muttreja, executive director of the Population Foundation of India. “Over the past 25 years, the richest 10% of the global population has been responsible for more than half of all carbon emissions.”

    According to the U.N., the population in sub-Saharan Africa is growing at 2.5% per year — more than three times the global average. Some of that can be attributed to people living longer, but family size remains the driving factor. Women in sub-Saharan Africa on average have 4.6 births, twice the current global average of 2.3.

    Families become larger when women start having children early, and 4 out of 10 girls in Africa marry before they turn 18, according to U.N. figures. The rate of teen pregnancy on the continent is the highest in the world — about half of the children born last year to mothers under 20 worldwide were in sub-Saharan Africa.

    Still, any effort to reduce family size now would come too late to significantly slow the 2050 growth projections, the U.N. said. About two-thirds of it “will be driven by the momentum of past growth.”

    “Such growth would occur even if childbearing in today’s high-fertility countries were to fall immediately to around two births per woman,” the report found.

    There are also important cultural reasons for large families. In sub-Saharan Africa, children are seen as a blessing and as a source of support for their elders — the more sons and daughters, the greater comfort in retirement.

    Still, some large families “may not have what it takes to actually feed them,” says Eunice Azimi, an insurance broker in Lagos and mother of three.

    “In Nigeria, we believe that it is God that gives children,” she said. “They see it as the more children you have, the more benefits. And you are actually overtaking your peers who cannot have as many children. It looks like a competition in villages.”

    Politics also have played a role in Tanzania, where former President John Magufuli, who ruled the East African country from 2015 until his death in 2021, discouraged birth control, saying that a large population was good for the economy.

    He opposed family planning programs promoted by outside groups, and in a 2019 speech urged women not to “block ovaries.” He even described users of contraceptives as “lazy” in a country he said was awash with cheap food. Under Magufuli, pregnant schoolgirls were even banned from returning to classrooms.

    But his successor, Samia Suluhu Hassan, appeared to reverse government policy in comments last month when she said birth control was necessary in order not to overwhelm the country’s public infrastructure.

    Even as populations soar in some countries, the U.N. says rates are expected to drop by 1% or more in 61 nations.

    The U.S. population is now around 333 million, according to U.S. Census Bureau data. The population growth rate in 2021 was just 0.1%, the lowest since the country was founded.

    “Going forward, we’re going to have slower growth — the question is, how slow?” said William Frey, a demographer at the Brookings Institution. “The real wild card for the U.S. and many other developed countries is immigration.”

    Charles Kenny, a senior fellow at the Center for Global Development in Washington, says environmental concerns surrounding the 8 billion mark should focus on consumption, particularly in developed countries.

    “Population is not the problem, the way we consume is the problem — let’s change our consumption patterns,” he said.

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    Asadu reported from Abuja, Nigeria. Associated Press writers Krista Larson in Dakar, Senegal; Sibi Arasu in Bengaluru, India; Wanjohi Kabukuru in Sharm El Sheikh, Egypt; Christina Larson in Washington; Rodney Muhumuza in Kampala, Uganda, and Jean-Yves Kamale in Kinshasa, Congo, contributed.

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • FTX bankruptcy also endangers founder’s philanthropic gifts

    FTX bankruptcy also endangers founder’s philanthropic gifts

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    NEW YORK — The rapid collapse of cryptocurrency exchange FTX into bankruptcy last week has also shaken the world of philanthropy, due to the donations and influence of FTX founder Sam Bankman-Fried in the “effective altruism” movement.

    The FTX Foundation — and other related nonprofits mostly funded by Bankman-Fried and other top FTX executives – says it has donated $190 million to numerous causes. Earlier this year, the foundation’s Future Fund announced plans to donate an additional $100 million, with hopes of donating up to $1 billion in 2022. Because of the bankruptcy, that won’t be happening now.

    And donations to numerous nonprofits, even those that have already received money from groups related to Bankman-Fried, are now in doubt.

    FTX, the hedge fund Alameda Research, and dozens of other affiliated companies sought bankruptcy protection in Delaware Friday after the exchange experienced the crypto equivalent of a bank run. Customers tried to remove billions of dollars from the exchange after becoming concerned about whether FTX had sufficient capital.

    Bankman-Fried has resigned from the company. His net worth, estimated earlier this year at $24 billion, has all but evaporated, according to Forbes and Bloomberg, which closely track the net worth of the world’s richest people.

    On Thursday night, FTX Future Fund’s leadership team resigned, warning grantees that they were unlikely to pay out promised funds.

    “We are devastated to say that it looks likely that there are many committed grants that the Future Fund will be unable to honor,” the team wrote in a joint post in the Effective Altruism Forum. “We are so sorry that it has come to this.”

    ProPublica, the investigative journalism nonprofit, said it has been told by Building a Stronger Future, a foundation funded by Bankman-Fried, that the remaining two-thirds of its $5 million grant to report on pandemic preparedness and biothreats is now on hold.

    ProPublica received one-third of the grant in February and expected one-third annually until 2024. The nonprofit said Building a Stronger Future is assessing its finances and that it was talking to other funders about taking on some of its grant portfolio.

    “Regardless of what happens with the remainder of the grant, we are deeply committed to this important work and the team we have assembled to pursue it,” the nonprofit said in a statement. “We will use other resources to make sure that work continues.”

    Bankman-Fried, 30, is the best-known proponent of the “effective altruism” social movement which believes in prioritizing donations to projects that will have the largest impact on the most number of people. Dustin Moskovitz, co-founder of Facebook and current Asana CEO and co-founder, and his wife Cari Tuna, are also major funders and backers of the movement, which also emphasizes that the lives of all people should be weighted equally, regardless of where they live now or if they will inhabit the earth generations in the future.

    “I wanted to get rich, not because I like money but because I wanted to give that money to charity,” Bankman-Fried told an interviewer in a YouTube video called “ The Most Generous Billionaire,” published in January last year.

    His ability to promote himself and FTX gave the exchange a higher profile than larger companies. FTX purchase the naming rights to the Miami Heat’s home arena last year, though Miami-Dade County decided Friday to terminate its relationship with the company and rename the arena. It purchased a buzzed-about ad during this year’s Super Bowl.

    Bankman-Fried did set up a philanthropic infrastructure through his exchange, FTX, which promised that 1% of its crypto exchange fees would be donated to charities. It also matched user donations made through its platform up to $10,000 a day. In total, the company said more than $24 million was donated through user fees, donations and its matching program before it suspended its services.

    Some “effective altruism” proponents advance the idea that making a lot of money is ethical as long as your goal is ultimately to give it away — sometimes shortened to “earning to give.” Bankman-Fried believed in this, signing The Giving Pledge in June as a promise that he would give away the majority of his wealth.

    However, some now blame Bankman-Fried’s “effective altruism” mindset for FTX’s troubles.

    “Either (‘effective altruism’) encouraged Sam’s unethical behavior, or provided a convenient rationalization for such actions,” tweeted Moskovitz, who has also signed The Giving Pledge. “Either is bad.”

    William MacAskill, a philosophy professor at Oxford University and a co-founder of the “effective altruism” movement, condemned Bankman-Fried for allegedly misusing customer funds.

    “Sam and FTX had a lot of goodwill,” MacAskill, who was also an unpaid advisor to the FTX Future Fund, wrote in a thread on Twitter. “And some of that goodwill was the result of association with ideas I have spent my career promoting. If that goodwill laundered fraud, I am ashamed.”

    MacAskill’s book, “What We Owe The Future,” prompted a wave of media coverage of the “effective altruism” movement this summer.

    Requests for comment were sent to the largest grantees listed on the FTX Future Fund’s website, including other “effective altruism” advocates like the Long-Term Future Fund and the Centre for Effective Altruism and Longview.

    In an interview with The Associated Press in May, Nick Beckstead, the CEO of FTX Foundation until he resigned Thursday, said there were about five people working at the foundation and that they were still working out how the various philanthropic projects started by Bankman-Fried would be structured.

    “It’s a bit shoestring,” he said.

    The community grew out of the work of philosophers at Oxford, including MacAskill, and debates of the merits of approaches and proposals on forums reflect the high-flying thinking of its origins.

    Beckstead acknowledged the community can be “strange and intense,” but also that its emphasis on quantifying impact helps decide where to direct donations. Beckstead did not immediately respond to a request for comment.

    “What is the cost per life saved or what is the cost per quality adjusted life year from this kind of activity?,” he previously said were some of the questions he likes to try to answer, drawing on input from subject matter experts.

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    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • Insider Q&A: Kind Founder Lubetzky on entrepreneurship

    Insider Q&A: Kind Founder Lubetzky on entrepreneurship

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    To entrepreneur Daniel Lubetzky, the founder of Kind snacks, kindness means more than just being nice.

    “If somebody is nice, they’re not going to bully. But if they’re kind, they’re going to stand up to the bully,” he said. “Kindness requires the strength of action.”

    It’s a lesson Lubetzky learned from his father, a Latvian Jew who survived the Holocaust. Lubetzky’s father was deeply touched by small acts of kindness, like the German soldier who snuck him a potato or the care shown by the Japanese-American soldiers who liberated him.

    Lubetzky, who was born in Mexico and is fluent in Spanish, French, Hebrew and English, also has a passion for bridging cultures. One of his first ventures, PeaceWorks, sold products made jointly by Israelis and Palestinians; this year, he helped fund scholarships for Ukrainian students to study in the U.S.

    Lubetzky launched Kind in 2004, honoring his father with the name. The health-conscious brand helped transform the snack category; Lubetzky sold it to Mars in 2020 for an estimated $5 billion.

    Lubetzky has invested that into new food brands like Somos Foods, which aims to bring authentic Mexican products to U.S. groceries. He’s also launched charitable foundations and nonprofits like Starts with Us, which tries to overcome political and cultural division.

    Lubetzky discussed his career, and what motivates him, with The Associated Press. His comments have been edited for length.

    Q. How do you describe yourself?

    A. I think of myself as a serial social entrepreneur, meaning someone that loves noticing opportunities for how to create stuff in society that doesn’t already exist that will be both economically sustainable and socially impactful. I think that tends to be one common thread in a lot of the ventures that I do: ventures that use business as a force for having a social impact and doing it in a way that the products can defend themselves and win on the merits of that. First and foremost, this is a business. But there’s an added reason for being. It’s not just to make money. It’s also to try to have a positive impact in society, however small that may be.

    Q. What makes a successful entrepreneur? Is it a certain personality type?

    A. You have to have the creative vision to identify a problem that has not been solved and come up with a creative idea for how to solve it. That’s No. 1. And then the execution, wherewithal, guts and chutzpah to just go out and do it. And that’s a very hard combination. If you have the first but not the second, you can be an inventor. Inventors are great at coming up with ideas, but they don’t execute on them as well. If you have the second, to execute but not the creativity to invent, you could be a good business manager. If you have both, you can be an entrepreneur.

    Q. You tend to tackle really intractable issues, like the U.S. culture wars or the Israeli-Palestinian conflict. Why?

    A. The way we’re educated, we’re taught to process and to become factory line workers and to become professionals. But we’re not encouraged to dream about what’s possible and to recognize our power to do things that people thought were not possible. We’re not taught enough about Gandhi, about bring the change you want to see in the world. We’re not smart enough about all these approaches that are essential in society. What’s happening in our country today affects every single person, and it’s going to require every single one of us to be part of the solution.

    Q. You’ve worked with a lot of entrepreneurs through your incubator, Equilibra, and elsewhere. What is your advice to them?

    A. I do recommend they think about how they see the world from their vantage point, what’s missing, whether it’s a social element that they want to fix if they’re social entrepreneurs or whether there’s a business opportunity or product or service. What doesn’t satisfy them? What’s missing? What’s not being done well enough? And that’s only the beginning of the journey. If you identify what’s not working, then you need to look at the underlying reason why that’s not working. And then you need to target that and say, “Can I do it better?” It’s an incredible ride, but it’s a roller coaster ride. The highs are higher, the lows are lower, and you need to be comfortable with that. You need to have a temperament where you’re not going to easily give up.

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  • Gates Foundation boosts GivingTuesday with $10M donation

    Gates Foundation boosts GivingTuesday with $10M donation

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    NEW YORK — The Bill & Melinda Gates Foundation donated $10 million to the organization that grew out of the hashtag #GivingTuesday in part to fund a database of charitable giving and other acts of generosity.

    GivingTuesday, the organization, has helped people realize there is a lot they can give, said foundation co-founder Melinda French Gates in an interview.

    “Whether people are giving their voice, their time, their expertise or their money, and given that it was the ten year anniversary of GivingTuesday, it seemed like the right time to step up with another commitment,” French Gates said.

    Asha Curran, GivingTuesday’s CEO, described the foundation as a thought partner in addition to being a funder.

    “It’s a really wonderful thing to see the partnering of big philanthropy and grassroots generosity, that those things don’t have to live in separate worlds and be viewed as totally separate things,” Curran said.

    The new gift announced Tuesday also represents the Gates Foundation’s ongoing efforts encouraging people to give. The Giving Pledge, which the Gates’ founded with Berkshire Hathaway CEO Warren Buffett, asks billionaires to donate more than half of their wealth to charitable causes within their lifetimes, while GivingTuesday seeks to mobilize everyone else.

    “We believe philanthropy is the right thing to do and that anybody can do it,” said French Gates in an interview. “And so, it’s more making it a societal norm, quite frankly, that you give something back.”

    GivingTuesday started in 2012 as a project of the 92nd Street Y and became an independent nonprofit in 2020. It now convenes a network of people who run campaigns for communities around the world, adapted to relevant holidays and giving traditions.

    Most people still associate the organization with the now-familiar flood of emails and other solicitations for charitable donations that pour in on the Tuesday after Thanksgiving in the U.S., which Curran said she doesn’t mind.

    “I just wish they also associated it with grassroots leadership and young people leading the way in philanthropy,” she said.

    Last year, the organization said donors gave more than $2.7 billion on Giving Tuesday, despite many fundraisers and organizations professing exhaustion with trying to design campaigns that breakthrough.

    The Gates Foundation has previously given the organization $10.5 million since its founding. GivingTuesday also received $7 million from novelist and philanthropist MacKenzie Scott in 2021.

    Curran said the gift will accelerate the organization’s plans to expand a database that includes information about giving from a range of sources including the payment processor PayPal, Charity Navigator, crowdfunding sites GoFundMe, DonorsChoose and Tiltify as well as major institutions that offer donor-advised funds like Fidelity Charitable and the Silicon Valley Community Foundation.

    GivingTuesday said they aim to raise $26 million over five years to fund the data project and already have 40% of that amount committed.

    The software company Blackbaud, which works with nonprofits, universities and foundations, said they do not share their raw donation data with third parties. though they do provide GivingTuesday the total amount of donations they process on the Tuesday after Thanksgiving.

    Other organizations also track philanthropic giving — including Candid, which collects giving data from philanthropic foundations, governments and nonprofits, as well as major academic studies like one at the Indiana University Lilly Family School of Philanthropy that has surveyed the giving behavior of the same American households for decades. The Giving USA Foundation also releases an annual analysis of giving trends, that includes many datasets but doesn’t capture person to person giving or mutual aid.

    GivingTuesday aims to collect data about individual donations, which Jake Garcia, vice president of data at Candid, said could complement these other projects and help answer questions about giving trends.

    “The stock market’s down, do donations go up or down?” Garcia said. “Number of donations, amount for donations, the type of donations they make. . . Those trends, I think, are the kinds of things that could be really revelatory if they can get a good enough body of data.”

    ———

    Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

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  • Gates Foundation pledges $1.2B to eradicate polio globally

    Gates Foundation pledges $1.2B to eradicate polio globally

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    BERLIN — The Bill and Melinda Gates Foundation says it will commit $1.2 billion to the effort to end polio worldwide.

    The money will be used to help implement the Global Polio Eradication Initiative’s strategy through 2026. The initiative is trying to end the polio virus in Pakistan and Afghanistan, the last two endemic countries, the foundation said in a statement Sunday.

    The money also will be used to stop outbreaks of new variants of the virus. The announcement was made Sunday at the World Health Summit in Berlin.

    The foundation says in a statement on its website that it has contributed nearly $5 billion to the polio eradication initiative. The initiative is trying to integrate polio campaigns into broader health services, while it scales up use of the novel oral polio vaccine type 2.

    The group also is working to make national health systems stronger so countries are better prepared for future health threats, the statement said.

    “The last steps to eradication are by far the toughest. But our foundation remains dedicated to a polio-free future, and we’re optimistic that we will see it soon,” said foundation CEO Mark Suzman.

    Pakistan has reported 20 polio cases so far this year, all in the north-western Khyber Pakhtunkhwa province.

    Afghanistan, which has registered two cases this year, previously lacked access to vaccines because of violence and the Taliban banning polio teams in areas under its control. However last year, a few months after they took over Afghanistan, the Taliban agreed to allow United Nations health workers to begin a national campaign.

    Pakistan has long struggled with Islamic militants targeting polio workers and the police protecting them, falsely claiming that vaccinations are a Western campaign to sterilize children. This year, it has the added challenge of unprecedented rainfall destroying road networks and health facilities, limiting vaccination drives, and displacing communities.

    Despite the billions of dollars that have gone into the effort to eradicate polio since 1988 — the program costs about $1 billion every year — the World Health Organization and partners have missed repeated deadlines to wipe out the disease and have come under sustained criticism for failing to adapt to challenges. In recent years, for example, there have been more cases of polio linked to the oral vaccine used in eradication efforts than those caused by the wild virus.

    Numerous experts have also questioned whether more money is what’s needed to eradicate polio, as the initiative is already one of the best funded in global public health and has rarely faced any funding gaps. Although WHO and partners have reduced the incidence of polio by more than 99%, that progress was largely made in the first 10 years. The disease remains stubbornly entrenched in war-torn regions of Afghanistan and Pakistan and there have been dozens of vaccine-triggered outbreaks in Africa and elsewhere in recent years, including the U.S. and Israel.

    An independent panel formed to evaluate the eradication effort’s progress has repeatedly identified significant strategic mistakes made by countries, WHO and their donors, warning that their reluctance to change course, among other issues, may ultimately allow polio to resurge.

    The eradication initiative is a public-private partnership led by a group of national governments that includes the Gates Foundation, Rotary International, the World Health Organization and the U.S. Centers for Disease Control and Prevention.

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  • Alexis Ohanian gets sports award, calls for reforms in NWSL

    Alexis Ohanian gets sports award, calls for reforms in NWSL

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    NEW YORK — Alexis Ohanian called out the need for a safe work environment in the National Women’s Soccer League while receiving the Champions for Equality Award at the annual Salute to Women in Sports event on Wednesday night.

    The former executive chairman of Reddit is a founding investor of the newest women’s professional soccer team, Angel City FC in Los Angeles. He was accompanied by his wife Serena Williams and daughter Olympia.

    “As a club owner, as a husband and as a father, I have been disgusted by what’s been brought to light as part of this ongoing investigation,” he said. “I’m hopeful it will lead to necessary reform.”

    He praised the players in the NWSL who are demanding accountability and changes after last week’s report from an independent investigation highlighted systemic sexual misconduct and emotional abuse. The investigation detailed administrative reporting failures in the sport, impacting several teams, coaches and executives in the league.

    “It’s to their strength, their bravery and their courage that we’re going to get a better NWSL,” Ohanian said to cheers at the Women’s Sports Foundation’s event in Manhattan.

    Five of the 10 head coaches in the NWSL either were fired or stepped down last season amid allegations of misconduct. Two owners have recently stepped away from their teams.

    Ohanian said he watched the U.S. women win the 2019 World Cup and mused about how Olympia might someday play in a World Cup: “Serena said, without missing a beat, ‘Not until they pay her what she’s worth.’”

    Ohanian is part of the majority-female Angel City FC ownership group that includes Williams, Natalie Portman, Mia Hamm, Abby Wambach, Julie Foudy, America Ferrera, Uzo Aduba, Candace Parker and Billie Jean King, among others.

    Foudy, a two-time U.S. World Cup champion, said rigorous guidelines are needed to combat sexual misconduct and it would “absolutely” help to have more female owners and female coaches in the NWSL.

    “The change of mindset in Angel City and that ownership group … is remarkable to see,” she said. “You don’t have to spend so much time expending energy about why you should support these women. They get it. The Angel City refrain I always get it is: ’What’s possible?’”

    Olympic gold medalists Sunisa Lee in gymnastics and Maggie Steffens in water polo were also honored as Sportswomen of the Year at the awards dinner, which commemorated the 50th anniversary of Title IX.

    South Carolina women’s basketball coach Dawn Staley received the Billie Jean King Leadership Award. Staley not only led the U.S. women’s basketball team to the gold medal at the 2021 Tokyo Olympics but also guided South Carolina to its second NCAA title in five years in April. Staley is the first Black coach to win two NCAA Division I basketball championships.

    Bobsledder Elena Meyers Taylor, the most decorated Black athlete at the winter Olympics with five medals, was given the Wilma Rudolph Courage Award. She accepted the award with her young son, Nico, at her side. Meyers Taylor won her most recent medal despite having COVID-19 at the Beijing Olympics.

    “I’m inspired by this remarkable group of honorees, who are breaking records, eliminating barriers and blazing a path for a brighter future in and out of sports for girls and women,” said King, who in 1974 created the Women’s Sports Foundation, which provides community sports programs and training grants.

    ———

    More AP soccer: https://apnews.com/hub/soccer and https://twitter.com/AP—Sports

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  • As suicides rise, US military seeks to address mental health

    As suicides rise, US military seeks to address mental health

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    WASHINGTON — After finishing a tour in Afghanistan in 2013, Dionne Williamson felt emotionally numb. More warning signs appeared during several years of subsequent overseas postings.

    “It’s like I lost me somewhere,” said Williamson, a Navy lieutenant commander who experienced disorientation, depression, memory loss and chronic exhaustion. “I went to my captain and said, ‘Sir, I need help. Something’s wrong.’”

    As the Pentagon seeks to confront spiraling suicide rates in the military ranks, Williamson’s experiences shine a light on the realities for service members seeking mental health help. For most, simply acknowledging their difficulties can be intimidating. And what comes next can be frustrating and dispiriting.

    Williamson, 46, eventually found stability through a monthlong hospitalization and a therapeutic program that incorporates horseback riding. But she had to fight for years to get the help she needed. “It’s a wonder how I made it through,” she said.

    In March, Defense Secretary Lloyd Austin announced the creation of an independent committee to review the military’s mental health and suicide prevention programs.

    According to Defense Department data, suicides among active-duty service members increased by more than 40% between 2015 and 2020. The numbers jumped by 15% in 2020 alone. In longtime suicide hotspot postings such as Alaska – service members and their families contend with extreme isolation and a harsh climate – the rate has doubled.

    A 2021 study by the Cost of War Project concluded that since 9/11, four times as many service members and veterans have died by suicide as have perished in combat. The study detailed stress factors particular to military life: “high exposure to trauma — mental, physical, moral, and sexual — stress and burnout, the influence of the military’s hegemonic masculine culture, continued access to guns, and the difficulty of reintegrating into civilian life.”

    The Pentagon did not respond to repeated requests for comment. But Austin has publicly acknowledged that the Pentagon’s current mental health offerings — including a Defense Suicide Prevention Office established in 2011 — have proven insufficient.

    “It is imperative that we take care of all our teammates and continue to reinforce that mental health and suicide prevention remain a key priority,” Austin wrote in March. “Clearly we have more work to do.”

    Last year the Army issued fresh guidelines to its commanders on how to handle mental health issues in the ranks, complete with briefing slides and a script. But daunting long-term challenges remain. Many soldiers fear the stigma of admitting to mental health issues within the internal military culture of self-sufficiency. And those who seek help often find that stigma is not only real, but compounded by bureaucratic obstacles.

    Much like the issue of food insecurity in military families, a network of military-adjacent charitable organizations has tried to fill the gaps with a variety of programs and outreach efforts.

    Some are purely recreational, such as an annual fishing tournament in Alaska designed to provide fresh air and socialization for service members. Others are more focused on self-care, like an Armed Services YMCA program that offers free childcare so that military parents can attend therapy sessions.

    The situation in Alaska is particularly dire. In January, after a string of suicides, Command Sgt. Maj. Phil Blaisdell addressed his soldiers in an emotional Instagram post. “When did suicide become the answer,” he asked. “Please send me a DM if you need something. Please …”

    U.S. Sen. Lisa Murkowski, R-Alaska, said that while posting to Alaska can be a dream for some service members, it’s a solitary nightmare for others that needs to be addressed.

    “You’ve got to be paying attention to this when you see the statistics jump as they are,” Murkowski said. “Right now, you’ve got everybody. You’ve got the Joint Chiefs looking at Alaska and saying, ‘Holy smokes, what’s going on up there?’”

    The stresses of an Alaska posting are compounded by a shortage of on-the-ground therapists. During a visit to Joint Base Elmendorf-Richardson in Alaska earlier this year, Army Secretary Christine Wormuth heard from base health care workers who say they are understaffed, burned out and can’t see patients on a timely basis. If a soldier seeks help, they often have to wait weeks for an appointment.

    “We have people who need our services and we can’t get to them,” one longtime counselor told Wormuth during a meeting. “We need staff and until we get them, we will continue to have soldiers die.”

    The annual Combat Fishing Tournament in Seward, Alaska, was formed to “get the kids out of the barracks, get them off the base for the day and get them out of their heads,” said co-founder Keith Manternach.

    The tournament, which was begun in 2007 and now involves more than 300 service members, includes a day of deep-water fishing followed by a celebratory banquet with prizes for the largest catch, smallest catch and the person who gets the sickest.

    “I think there’s a huge element of mental health to it,” Manternach said.

    It’s not just in Alaska.

    Sgt. Antonio Rivera, an 18-year veteran who completed three tours in Iraq and a year at Guantanamo Bay in Cuba, freely acknowledges that he has serious PTSD.

    “I know that I need help. There’s signs and I’ve waited long enough,” said Rivera, 48, who is assigned to Fort Hood in Texas. “I don’t want my children to suffer because of me not going to get help.”

    He’s doing yoga, but says he needs more. He’s reluctant to seek help inside the military.

    “Personally I’d feel more comfortable being able to talk to someone outside,” he said. “It would allow me to open up a lot more without having to be worried about how it’s going to affect my career.”

    Others who speak up say it’s a struggle to get assistance.

    Despite the on-base presence of “tons of briefings and brochures on suicide and PTSD,” Williamson said she found herself fighting for years to get time off and therapy.

    Eventually, she entered a monthlong in-patient program in Arizona. When she returned, a therapist recommended equine-assisted therapy, which proved to be a breakthrough.

    Now Williamson is a regular at the Cloverleaf Equine Center in Clifton, Virginia, where riding sessions can be combined with a variety of therapeutic practices and exercises. Working with horses has long been used as a form for therapy for people with physical or mental disabilities and children diagnosed with autism. But in recent years, it has been embraced for helping service members with anxiety and PTSD.

    “In order to be able to work with horses, you need to be able to regulate your emotions. They communicate through body language and energy,” said Shelby Morrison, Cloverleaf’s communications director. “They respond to energies around them. They respond to negativity, positivity, anxiety, excitement.”

    Military clients, Morrison said, come with “a lot of anxiety, depression, PTSD. … We use the horse to get them out of their triggers.”

    For Williamson, the regular riding sessions have helped stabilize her. She still struggles, and she said her long campaign for treatment has damaged her relationship with multiple superior officers. She’s currently on limited duty and isn’t sure if she’ll retire when she hits her 20-year anniversary in March.

    Nevertheless, she says, the equine therapy has helped her feel optimistic for the first time in recent memory.

    “Now even if I can’t get out of bed, I make sure to come here,” she said. “If I didn’t come here, I don’t know where I would even be.”

    ———

    Associated Press writer Lolita C. Baldor contributed to this report.

    ———

    The national suicide and crisis lifeline is available by calling or texting 988. There is also an online chat at 988lifeline.org.

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