Hands On Philanthropy Thrives
The Wall Street Journal, 3/2/07
Dissatisfied with traditional check writing, more donors are looking for ways to be more hands-on with their philanthropy. One increasingly popular tactic: forming an “operating” foundation that doesn’t just fund good deeds but carries them out.
Traditionally, philanthropists have started foundations that have functioned mainly as funding mechanisms for their charities. These charities carry out the actual mission, such as feeding the poor. The downside: Charities often must scramble for funds. An operating foundation marries the two functions.
While these foundations aren’t new - Bill Gates was an early proponent, committing $250 million starting in 1997 through an operating foundation to wire libraries for the digital age - they’re newly popular, particularly among younger donors. “People are becoming major donors at a younger age and are therefore looking at it as something that is a significant part of their day-to-day daily life, rather than something they plan for at the end of their life,” says Melissa Berman, chief executive of Rockefeller Philanthropy Advisors, of New York.