Week 10

I wasn't sure if last week was supposed to be our last blog post but since there was week 10 readings posted on blackboard here is week 10's blog post:

This weeks readings were on a broad range of topics all dealing with foundations from tax breaks to artist-endowed foundations to what one foundation looks for when giving out grants. From the O’Neill book I was surprised to find out that only 3% of the nonprofit revenue comes from foundations and that in the past these foundations were centralized predominately in the northeast. This makes sense though, when looking at the history of nonprofits and foundations, the northeast was really where it all started and where the first large foundations were established. I also thought it was interesting in looking at the list of the nonprofit sectors that receive the most funds from foundations that international issues and affairs was so low on the list. I wonder if since this book was written and now that the Bill and Melinda Gates Foundation is the largest in the world, if this has changed.

The reading on changes to tax incentives was also interesting. We talked about this before in class about whether the wealthy would continue to give to charities without the incentive of lower taxes and it will interesting to see if these changes actually happens and then what will happen to the different foundations and charities. However, since as the next reading stated that even through the recession philanthropy was raising more than $300 billion each year of the recession, I think that many people would continue to give to nonprofits. This reading also mentioned the “social impact bonds” that the UK is trying to implement, I wasn’t quite sure how this worked, if it was tax breaks to investors who financed these programs because they lowered government costs or what, I was a little confused at this part.

I really liked the reading about artist-endowed foundations and what happened at the Smithsonian. Its one thing for the public to protest the removal of the video by artist and AIDS activist, but something else entirely when its an artist’s foundations that give grants to the museum to help it run. These foundations finance exhibitions and donate artwork to museums and its only right that they have the voice to protest a museum of other organization removing artwork because it might be controversial. I was also surprised about the variety of organizations that these foundations fund, from HIV/AIDS, animal welfare, environmental conservation, and mental health.

In the last article, they talk about only funding organizations that can prove that they are effective and beneficial and how only these groups should grow and expand. This is a good idea, however I think it is really difficult to fully measure how effective a group can be without letting it work for awhile which requires funding and if funders are only looking to fund groups that are effective, it will be extremely difficult for any new organization to arise.