Even for a seasoned book publisher who gambles on the success of new titles every day, the past decade has brought more than the usual share of risks and rewards for Geraldo Jordão Pereira.
In 2003, Jordão underwent a liver transplant, after languishing for four years on the national waiting list for a donor. During this time, he also played a hunch and purchased, at a bargain price, the Brazilian publication rights for the Da Vincie before it shot to the top of the best-seller list for several years running.
Thanks in part to the success in Brazil of the Da Vinci Code, Jordão, 67, decided to follow his intuition once again and invest in quite a different type of venture, the country's first community foundation, Instituto Rio. A community foundation is a nonprofit organization endowed by members of a community that uses its assets in local grantmaking and other activities. For Jordão, success will be measured not in book sales for his Rio-based publishing house, Editora Sextante, but in the future prospects for some of the most disadvantaged residents of Rio de Janeiro.
Launched in 1995 with the support of The Synergos Institute and the Ford, Avina and Inter-American Foundations, Instituto Rio concentrates its work in the Zona Oeste (West Zone) of the city, where human development rankings are some of the lowest in Rio de Janeiro, despite a vibrant and growing commercial and industrial sector.
Creating an endowment to ensure sustainable growth
Instituto Rio fulfills its mission both through grantmaking to local organizations and by providing skills and expertise to help them build capacity. While the number of organizations assisted by Instituto Rio has continued to grow, without an endowment the long-term sustainability of its operations remained in doubt.
In August 2005, a $700,000 ($1.5 million reais) gift from Jordão, unprecedented in the history of Instituto Rio, made the long-awaited dream of an endowment fund a reality.
"I had thought for some time of creating such a fund for Instituto Rio, but the success of the Da Vinci Code helped a lot," said Jordão.
"It is my hope that the endowment will be used to leverage other donations," Jordão added. "It's a way of giving back to my community -- I believe in the people who are involved in Instituto Rio."
Jordão's commitment to social change in the West Zone is not a new one. An active philanthropist for several decades, he serves on the board of Instituto Rio and has supported, individually and through his business, numerous projects that benefit residents of the West Zone.
Charting a new path for individual philanthropy
"Geraldo is changing the practice of philanthropy in Brazil," said Cindy Lessa, the president of the board of Instituto Rio and director of Synergos' programs in Brazil. "While there is certainly charitable giving in Brazil, most individuals give through their businesses, not out of their own pockets."
"Giving such an amount in the form of an endowment, for a new type of organization, is quite extraordinary in this country. It will leave a lasting legacy, for Instituto Rio and the people of the West Zone," said Lessa.
The fund will be invested in the financial market and managed by a blue-ribbon panel of experts in finance and business nominated by Jordão. The advisory committee, which has already begun work, includes Armínio Fraga, former president of the Central Bank of Brazil during the administration of President Fernando Enrique Cardoso. Each year, part of the proceeds of the endowment fund will be used to support local organizations selected by Instituto Rio's grant program.
According to Instituto Rio board member Angela Danneman, it is still too soon to gauge the broader impact of the organization's innovative community foundation approach, but there is no doubt it is showing results in the short term.
Building capacity in local organizations
From its original six grantees, Instituto Rio is now supporting 24 community-based organizations. Over the past year, Instituto Rio's board members have stepped up their involvement in key areas and the organization has hired an executive director, Elio Raymundo Moreira.
To build capacity and increase the impact of nongovernmental organizations (NGOs) in the West Zone, Instituto Rio offers training in areas such as management and finance. Danneman said that more than 35 local NGOs have gone through the organization's capacity building workshops. Instituto Rio is also bringing in local businesses to educate them about opportunities to fulfill their social responsibility by contributing money or expertise to Instituto Rio and its grantees.
For his part, Jordão acknowledges that if Instituto Rio is to have lasting impact in the West Zone, the endowment is just a first -- though vital -- step in broadening needed support. "We have to continue to strengthen Instituto Rio. The endowment alone will not be sufficient, we will have to seek other funders." As a next step, Jordão is quietly working with experts inside and outside of government to promote new legal and fiscal incentives to encourage private philanthropy in Brazil.
Asked about his vision for Instituto Rio, Jordão replies, "I have not been doing much visioning -- I'm too busy looking into the here and now! However, if we do the 'now' properly, with all the energy and love we can put into it, I am sure that Instituto Rio will have a very bright future."
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