Written 2007
Global Giving Matters invited five young people of wealth who believe in social change to describe their personal approach to giving. The stories of Philipp Engelhorn, Ben Goldhirsh, Kim Kreiling, Katherine Lorenz and Rebecca Winsor reflect the diverse face of today's "next generation" of philanthropists.
While each generation of philanthropists is shaped by the distinct societal forces of its time, today's 20- and 30-somethings have come of age in an era of unprecedented challenges and opportunities.
More than ever before, the problems and issues that confront today's young donors -- poverty, environmental degradation, conflict -- are global in scope and impact. In recent years, giving for international purposes has reached record levels, thanks to a heightened focus on global peace and security, climate change and initiatives such as the Millennium Development Goals. Yet global giving still represents a small percentage of all philanthropic dollars.
Today's philanthropists are in a unique position to help fill that resource gap in thoughtful and sustainable ways. With the coming massive intergenerational transfer of wealth in the US, Baby Boomers will pass on an estimated $40 trillion to their children over the next 50 years.
These young people will inherit unparalleled amounts of money, along with the responsibility to manage these philanthropic funds wisely. They will also be presented with a wealth of opportunities to apply their resources and talents in creative and effective ways to address global challenges.
Our interviews with five young agents of social change -- all of whom are members of Synergos' Global Philanthropists Circle -- illustrate a variety of strategies for addressing the complex global realities of their times. In their stories, you will see a fair sampling of the characteristics attributed to next generation members as a whole.
They are global in outlook and adept at using media and technology as a platform for connection, communication, entertainment and empowerment. Their engagement in the world is linked to pursuing a passion, not fulfilling an obligation. They are creating new models of entrepreneurship. Their aim is to make a difference, not to be considered a philanthropist. They are avid social networkers but not socialites. And they are seriously concerned about climate change and the global environment.
Also in this issue, Global Giving Matters shares the insights of Alison Goldberg, co-author of a new book aimed at young people interested in social change philanthropy. Drawing on research she conducted in the preparation of the book, Goldberg said this generation is already transforming the field of philanthropy by providing new models of engagement.
Katherine Lorenz: Nutrition as a bridge to community wellbeing
"I don't consider myself a philanthropist, because I don't give away very much money. What I give is time," said Katherine Lorenz, a self-described "workaholic" and co-founder of a nonprofit organization that partners with rural communities in Mexico to promote better nutrition and health. Puente a la Salud Comunitaria, the organization Lorenz established and now directs, centers on an unusual entry point to community empowerment: the re-introduction of an ancient and highly nutritious grain, amaranth, into the diet of the largely indigenous, rural poor population of Oaxaca.
Lorenz first came to Oaxaca to explore sustainable solutions to rural poverty in Latin America as a volunteer after college. Initially interested in women's reproductive health, she came across research on the nutritional value of amaranth and decided in 2004 to launch a nonprofit using the reintegration of amaranth in the diet as a portal for addressing a range of community needs.
"Getting them to try it is not hard. It's getting them to build it into their lifestyle that's the challenge," said Lorenz, who now serves as executive director of Puente. The organization's work usually begins with the women of the community, who do most of the cooking. They are encouraged to add amaranth to tortillas and start family gardens. Puente also partners with health department doctors and nurses to build trust and credibility.
Sustainable development is also a major focus of her family's philanthropy, and at 28, Lorenz is the first member of her generation to serve as a board member on the Cynthia and George Mitchell Foundation, established by her grandparents. Lorenz is trying to establish a next generation committee to bring the interests of younger family members to the board.
As a next generation member of Synergos' Global Philanthropists Circle, Lorenz has had the opportunity to explore the issue of rural poverty with other young people of wealth interested in working for social change. She recently hosted a trip to Oaxaca that gave younger Circle members an opportunity to visit the villages where Puente works. Participants purchased and distributed materials for greenhouses to help Puente's rural constituents extend the growing season for their amaranth crop.
Meanwhile, Puente is one of the few organizations working on the community education aspects of amaranth in the diet, and Lorenz is looking at ways to replicate her organization's model.
While fundraising to sustain Puente's operations continues to be one of Lorenz's biggest challenges, the organization recently received a large and unexpected grant from an anonymous donor. Her vision for Puente includes "having involved donors, people who give their time as well as their money."
As she moves into a position to take a more active role with her own philanthropic resources, Lorenz says, "I'd love to be a more involved donor myself."
Kim Kreiling: Putting faith into action through small-farmer finance
"Through being involved in civil society and nonprofits, I've realized how empowering a loan can be," said Kim Kreiling, whose efforts are helping identify and fill the gaps in funding for sustainable rural development.
Kreiling's interest in land access for the poor began on a school trip to Central America where, as a teenager, she witnessed the struggle of peasants to achieve a sustainable quality of life. As an adult, her work as a fundraiser for Agros International, a faith-based nonprofit that promotes land ownership for the rural poor in Latin America, helped hone her thinking about empowering the poor through land tenure initiatives.
To determine how to help, Kreiling mapped what organizations around the world were doing to enable land access for the poor. She discovered that, apart from Agros International, few, if any, nonprofit organizations were lending to the poor for the purpose of purchasing land.
To expand access to rural development financing, Kreiling went to work for Boston-based Ecologic Finance (soon to be called Root Capital) and helped launch the organization's "Loans for Land Initiative." One of the few organizations making loans to low-income farm cooperatives around the world, Ecologic Finance was named a winner of Fast Company magazine's 2007 Social Capitalist awards honoring leading social entrepreneurs.
Kreiling is now sharpening the organization's focus on sustainable energy loans for small-to-medium sized enterprises in the developing world. One potential project involves a solar-powered coffee dryer fueled by biowaste from a coffee plant. Kreiling met with representatives of a leading US foundation in March to discuss a possible role for Ecologic Finance in funding the technology.
Still, Kreiling wanted to do more. Sparked by a conversation with her mother, Helen L. Hunt, Kreiling decided to research ways to leverage the family's philanthropic resources to serve the rural poor.
What emerged was a $1 million, donor-advised fund established last August with Calvert Foundation. Calvert Giving Funds allows individuals and families to easily start a "personal foundation," and then recommend socially responsible ways for their funds to be invested.
Through her donor-advised fund, Kreiling is providing low-cost loans and grants to poor communities in the developing world, including a $135,000 guarantee for an Ecologic Finance loan for land to a cooperative of farmers in Nicaragua.
Wishing to share her knowledge of how to invest creatively to make a difference, Kreiling and her family have documented the process in a report they hope can serve as a guide for others interested in creating their own donor-advised funds.
Kreiling is quick to acknowledge the role that her "community of practice" has played in her activities. During her research, Kreiling cultivated a network of peer practitioners-her mother and other family members, friends, work colleagues, advisors and others who provided invaluable insights, encouragement and collaboration.
Her faith has been an important inspiration as well. Kreiling, a divinity school graduate, is now working with graduate students at Harvard through Intervarsity Christian Fellowship. In March, she joined a mission in New Orleans to help with clean-up and construction work, and in May she will travel with a team to visit prisoners in Ecuador.
Kreiling's personal blend of passion and pragmatism defies easy labeling. "I like the term social entrepreneur that Bill Drayton popularized. We're being entrepreneurial in how we want to generate social change through giving and investing. I'm a small part of a global movement to create hope and opportunity, and along the road all of our lives are being changed."
Ben Goldhirsh: Doing well by doing GOOD
"I feel like I'm part of a generation engaged in the effort to move our world forward," says Ben Goldhirsh. And with a bold multi-media experiment called GOOD, Goldhirsh is already turning heads-and a profit-while promoting this sensibility among like-minded 18-40 year olds.
Based in Los Angeles, the GOOD venture is reaching out to its media-savvy target audience via a film company, magazine, events division and website. Goldhirsh funded the start-up himself, and recruited GOOD's staff of 25 largely from a group of school friends from Phillips Academy and Brown University.
In his decision to launch a media venture, Goldhirsh, 26, was both inspired and challenged by the legacy of his late father, Bernie Goldhirsh, founder of Inc., the pioneering magazine for entrepreneurs.
"I was impressed by the role he was able to play in entrepreneurship," said the younger Goldhirsh. From his father's example, Goldhirsh said he came to recognize that "media was limitless in the sense that it was a platform. It didn't preclude, in fact, it demanded engagement."
One of the ways Goldhirsh is promoting engagement is through a "Choose GOOD" campaign. Subscribers to GOOD Magazine, now in its third issue, get to designate which of 12 partner organizations receive their $20 subscription fee.
The campaign seeks to net 50,000 subscribers and $1 million for partners such as Teach for America, Millennium Promise and UNICEF. Simultaneously, it is designed to build the GOOD brand, generate buzz, and stimulate demand. To date, more than 15,000 subscribers have generated around $300,000 in donations for GOOD's nonprofit partners.
To appeal to a generation of avid social networkers, GOOD is also hosting a series of events-parties, concerts and speakers-in cities across the country. "We're creating a really interesting crowd tied together by a shared sensibility. If we can provide content, virtual space and physical spaces in which to meet, we're adding value to this community," said Goldhirsh.
With his film division, Reason Pictures, Goldhirsh is demonstrating the financial potential of the GOOD model. Goldhirsh hit the jackpot at the 2007 Sundance Film Festival, with his sale of Son of Ranbow, a British coming-of-age feature, to Paramount Vantage. The film sale was the biggest deal of the year at Sundance, and the second largest in the festival's history.
Reason Pictures, which is expecting revenues of more than $5 million this year, currently has four films in production and another 10 in development, a mixture of features and documentaries that set out to entertain as well as provide socially relevant content.
"Hollywood is a hard business, but we didn't hire professionals, we hired friends and others with a sensibility of good and learned the business as we went along," said Goldhirsh.
While GOOD's film projects are earning acclaim and financial rewards, the other divisions are finding success as well, by making altruism fashionable and supporting a range of nonprofit partners. One of the biggest payoffs may come from making GOOD succeed on its own terms. "We get to make what we want and we're doing it for ourselves," said Goldhirsh.
Philipp Engelhorn: Creating media that matters
Fresh out of film school, Philipp Engelhorn is wasting no time in translating his passion for cinema into a vehicle for social change.
Although his New York-based nonprofit organization, Cinereach, has been active for less than a year, it has already funded more than a half dozen media projects by independent filmmakers and other organizations. And he's working on his first in-house production, a feature film aimed at bringing a human face to the issue of global warming.
Originally from Germany, Engelhorn's global orientation is evident in the range of projects he has chosen to support. These include Film Aid's participatory video project, which is putting cameras into the hands of refugees in Kenya, so they can tell their own stories.
Chat the Planet's web-based video series centers on four young residents of Baghdad as they decide whether to stay or flee a city under siege. And Project Kashmir, one of four documentaries chosen for the Sundance Lab, chronicles two American women, one Indian, one Pakistani, who travel to Kashmir to understand the human impact of the region's conflict.
Another of Cinereach's major focus areas is global warming. "I've had this long concern with the environment, and Al Gore's film, An Inconvenient Truth, further fueled my desire to do something," Engelhorn said. Working with Caroline Baron, producer of Capote, Cinereach is currently developing its first in-house feature, yet unnamed, that will "tackle global warming from a non-scientific perspective that people can actually connect with."
While there has always been an expectation that he will use his family's wealth for entrepreneurial purposes, Engelhorn said his first introduction to the possibilities of strategic giving came when he joined Synergos' Global Philanthropists Circle.
Synergos helped in the creation of a mission and vision for Cinereach, and Engelhorn said he has benefited from opportunities to network with other young GPC members, particularly those involved in their own media projects.
Engelhorn said he avoids labels such as "filmanthropist," which have come into use recently to describe cause-oriented filmmakers. "I'm not comfortable calling myself a philanthropist, either, because I don't yet have the experience and knowledge it takes to be a full-hearted philanthropist, but I'm trying!" he added.
Concerned by the lack of social activism on the part of US youth, Cinereach is starting a new web-based campaign that Engelhorn hopes will stimulate young people to action. "Worldwide, you still see people taking to the streets. We want to foster that activism here, to get young people to do something, even if it's something small."
Rebecca Winsor: Organizing communities for change
For Rebecca Winsor, a decision to pursue her calling in India during college proved to be transformative in ways she had never imagined.
What began with a year abroad studying art and music near Calcutta evolved into a commitment to giving in India, and a deepening of her involvement with social change philanthropy.
In India, Winsor encountered a young girl begging in a train station. The child had been seriously injured and required a skin graft. Winsor took the girl in to help her find medical care. In the process, she developed a close relationship with an extraordinary local doctor, and spent time in the rural hospital he ran.
This experience ignited a desire to get more involved. Winsor, who was born with a cleft palate that was corrected after birth, had noticed a high incidence of cleft lip and other facial deformities in India. She decided to reach out to Operation Smile (www.operationsmile.org), a nonprofit organiztion that provides medical training and free corrective surgery to individuals with cleft lip, palate and other facial deformities.
Operation Smile was eager to have a greater presence in India. Winsor established a linkage between the organization and the doctor she knew, making it possible for Operation Smile India to set up operations on a larger scale.
"It was the happiest moment of my life," said Winsor, about launching the multi-year medical initiative. The program trains local health care workers, provides hygiene education and incorporates the healing power of music and art. "It's exciting because the community has taken ownership, and is leveraging its own networks of support. Pretty soon, they're not going to need outside help."
Winsor, 27, an artist, has since become active in the young donor organizing movement, encouraging other young people to give around the world.
She serves on the board of Resource Generation, a social change organization for young people of wealth, and is active in Leverage Alliance, a new organization aimed at young donors who are already in positions of leadership.
"I feel vested in this young donor organizing movement. There's so much potential," said Winsor. "It's such a new field, but this constituency of people is very hard to organize. It's like herding cats! I would like to create a unified movement around the world."
Alison Goldberg: Tools for transforming giving for good
A new book, Creating Change Through Family Philanthropy: the Next Generation, aims to give young people of wealth the tools they need not just to participate in giving, but to help transform the field itself.
The book, by Alison Goldberg, Karen Pittelman and Resource Generation -- a social change organization by and for young people of wealth -- draws on interviews with more than 40 next generation members. It includes personal stories, exercises, and an extensive resource guide.
The authors leave no doubt about the need for change, arguing that many institutional practices of family philanthropy actually perpetuate, rather than ameliorate inequalities in society.
Goldberg, 32, has served as a board member of her family foundation for the past 10 years. She joined the program staff of Resource Generation after the organization she created and directed, Foundations for Change, merged with Resource Generation.
In an interview with Global Giving Matters, Goldberg outlined some of the trends that emerged from her research for the book and her work with Resource Generation's young constituents.
Although Resource Generation is focused on family philanthropy in the United States, Goldberg noted that "young people who are concerned about change are concerned about how little is being given internationally. It's all happening against a backdrop of a highly unequal society. The top 10 percent of wealth holders in the US have 70 percent of the wealth," she said and the disparity is "even more staggering when looked at through a global lens."
Goldberg said she's "hopeful about changing the paradigm in the face of inequity in family philanthropy. It's really exciting seeing many young people creating a whole new range of models."
"It's not just about where the money is going, but how it's being given, from opening up to include activists in grants decision-making...to proactively supporting issues through shareholder activism and creating new partnership models with the organizations they're funding."
"So far, I've been very excited about the response to the book," Goldberg said. "We're finding more young people involved. As a conversation starter, it's serving the purpose."
Some young donor programs and organizations
The Global Philanthropists Circle (www.synergos.org/philanthropistscircle/) supports its next generation members with activities and services that include meetings with peers on topics of interest in philanthropy and multiple occasions for interaction and learning from other generations of philanthropists within the network. The Circle offers opportunities for members to engage first-hand with poverty-related issues and explore innovative solutions through visits to countries in the Global South including India, Brazil and South Africa. Synergos staffs the Circle and also provides access to a wider network of individuals with deep experience in various aspects of international development. We also provide members with expert advice on developing their philanthropic strategy to increase the effectiveness and impact of their work.
Resource Generation (www.resourcegeneration.org) works with young people with financial wealth to effect progressive social change through the creative, responsible and strategic use of financial and other resources. It promotes innovative ways for young people with wealth to align their personal values and political vision with their financial resources, and strives to strengthen cross-class alliances with people and organizations working for social and economic justice.
The Leverage Alliance (www.leval.org) is a recently established community of global young leaders with substantial financial resources who are seeking to support each other and learn together through strategic life and career decision-making.
Emerging Practitioners in Philanthropy (www.epip.org) is a national network of young professionals involved in organized philanthropy. Its mission is to support and strengthen the next generation of grantmakers in order to advance social justice philanthropy.
Next Generation Philanthropy, a new program to help young inheritors of family businesses to increase the impact of their charitable giving, was launched by the UK-based Institute for Philanthropy (www.instituteforphilanthropy.org.uk) and the Institute for Family Business. A two-year program that gives young people based in the UK and internationally tools for more effective grantmaking.
A pilot of the young funder learning opportunity GENerous explorATIONS was launched in New York in March 2007. Offered by Rockefeller Philanthropy Advisors (www.rockpa.org) in collaboration with Resource Generation, 21/64 and the North Star Fund. Participants in this invitation-only program receive an overview of social change philanthropy and visit top nonprofit organizations in New York City to better understand opportunities for strategic grantmaking.