EDHE 6780

Feb. 18th Notes

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presentations due next week: room 126

Worth text, Part V (Corporate and Foundation Support)

• corporations and foundations differ from individual donors in making less emotional decisions
• based more on business goals, commercial relationships

Ch. 12 (New Patterns of Corporate Support)

• three reasons corporations make contributions:

1. improve reputation/image
2. political interests

• funding research in specific areas that can promote political stances in subtle ways (like stem-cell research and the beginnings of human life affecting pro-life / pro-abortion arguments)
• Hershey funded research that ended up showing health benefits of chocolate (later legitimized by replicated research)

1. altruism

• to the point of "denial of self?"
• there's always a benefit back to you
• most corporate altruism is marketing money
  • "cause-related marketing," p. 159 - 160
  • marketing contracts
    • sales of merchandise that donates to research/causes
    • UNT's vending contract with Coca-Cola
• have to justify all giving to their stockholders
• JFK donated his presidential salary because he couldn't afford to keep it, due to his personal wealth (tax reasons)
  • but he got a lot of good press from it
• "shift" in giving in the 2000's
  • K-12 now a major emphasis in corporate giving
    • more impressionable audience = later benefits for corporation when they become consumers
    • K-12 been in the media spotlight
    • audience that's easier to reach, at a crucial stage in development (catch and alleviate problems earlier)
    • also, current consumers pay attention to socially-active corporations (Target, etc.)
• matching employee contributions (less common than it used to be)
• Wal-mart had a great community reputation until Sam Walton died
  • the person who took over didn't continue the same employee benefits or community programs/giving
  • it's negatively affected Wal-mart's overall reputation
• sponsorships and naming opportunities
  • not common yet in higher ed., but common in professional sports venues/tournaments and concert venues
• in-kind giving
  • giving products or services that the corporation already provides
  • usually surplus: not always useful, like dated computers
  • also giving time (through volunteers)
    • time is more valuable the more fame/clout that person has (Terry Bradshaw as auctioneer means a better outcome for that auction)

Ch. 13 (New Patterns of Foundation Support)

• Types of foundations:
  • corporate foundations
  • community foundations
    • see handout on community foundations (Dallas Foundation)
  • private foundations
    • handout on Pew / Ford / Rockefeller Foundations
      • they give less and less to higher ed.
      • seeing that long-range differences are made by influencing public policy
• accountability, data (assessment), institutional effectiveness
• undergrad education is less favored, p. 169
  • large volume of undergrads
  • less impressive next to in-depth graduate programs (new research)
  • not as emotionally connective and impact-ful as K-12
  • bachelor's degree is taking on the "assumed," "mass education" sense of a high school diploma
• geographical shift South and West
  • population and wealth moved West and South

"Philanthropy's New Math" (article)

• back to concept of "altruism:"
  • "pleasurable sensations" obtained from giving
• "...staggering number of $100-million-plus gifts to university endowment drives... donations that once seemed princely are now routine."
• changing policy (or participating in philanthropy) is more effective than a single scientist's discovery (p. B6, bottom)
• Ford Found. is second-largest, but it's still a third the size of the Gates Foundation
• what will be done with the mega-foundations' money?
  • accountability: Golden Fleece awards
  • Top Ten Golden Fleece awards
• foundations themselves create a new job market (foundation staff)
• people who make money and don't know where/how to spend it
  • like Warren Buffet giving to Gates Foundation, instead of funding his own ideas/foundation
• funds vs. foundations
  • funds have a more targeted, specific purpose
  • more loosely structured than a foundation (easier to set up; generally no accountability)
  • more short-term (not multi-generational)