March 20, 2001
Volume 7, Issue 12

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::::::::::::::: QUOTATION OF THE WEEK ::::::::::::::::

"We now know quality teaching is the hallmark of successful
schools, but efforts to recruit quality teachers and improve
their training have not kept pace with other aspects of
the school reform movement."

-- Daniel Fallon, chair of the Carnegie Corporation of
New York's education division, commenting on a new
Corporation initiative to improve teacher quality.

::::::::::::::: IN THE NEWS ::::::::::::::::

-- Foundation Center Study Shows Jump in Grant Dollars
Overall in 1999
-- Bill Gates, Sr. Defends Estate Tax Before Senate
Finance Committee
-- New Survey Shows Growth in Faith-Based Outreach
Programs
-- Tithing by Congregants Difficult to Measure
-- Three Foundations Partner to Promote Religious
Pluralism in Israel
-- Carnegie Corporation of New York Announces New Grants
to Promote Teacher Quality
-- Packard Foundation Donates $11 Million for UC, Merced
Campus Site
-- Queens College Returns $3 Million Gift

Foundation Center Study Shows Jump in Grant Dollars
Overall in 1999

At the end of the 20th century, the nation's nonprofit
community continued to benefit from an unprecedented boom
in foundation giving, according to a new study from the
Foundation Center (http://www.fdncenter.org). Overall, the
more than 1,000 larger U.S. private and community founda-
tions included in the 1999 Foundation Center grants sample
awarded more than 108,000 grants totaling $11.6 billion to
over 44,500 organizations -- a 19.2 percent increase in
giving and an 11.3 percent rise in number of grants over
the prior year. In addition, the number of the very
largest grants -- those of $5 million or more -- jumped
15 percent, to a record 169.

"The growth in giving seen in the 1999 sample did not
quite match the record gains reported for 1998," noted
Loren Renz, vice president for research at the Foundation
Center. "Yet in terms of actual grant dollars, foundations
showed a slightly bigger increase in the latest year."
This increase benefited nearly every field, with "the
environment, human services, and health all realizing
above-average growth in foundation support."

The analysis of 1999 giving is based on a sample of
108,169 grants of $10,000 or more reported by 1,016
foundations, including approximately 800 of the 1,000
largest by total giving. These foundations, while
representing only 2.1 percent of the total number of
active grantmaking foundations, awarded approximately
half of all foundation grant dollars reported in the latest
year.

To download highlights of Foundation Giving Trends, visit:
http://fdncenter.org/research/trends_analysis/pdf/01fgthl.pdf

"Environment, Human Services, and Health Realize Fastest
Growth in Giving by Top-Ranked U.S. Foundations in 1999."
Foundation Center Press Release 03/19/01.
http://fdncenter.org/about/news/pr_0012e.html

http://fdncenter.org/pnd/current/004042.html

Bill Gates, Sr. Defends Estate Tax Before Senate Finance
Committee

Bill Gates, Sr., the father of Microsoft chairman Bill
Gates and president of the Seattle-based Bill & Melinda
Gates Foundation (http://www.gatesfoundation.org/), the
country's largest private foundation, appeared before the
Senate Finance Committee last week to defend the estate
tax in its current form, the Washington Post reports.

Gates, who appeared before a committee panel, told his
audience that without the tax the U.S. would eventually
see "an aristocracy of wealth that has nothing to do with
merit." Gates, who figured his own estate tax bill to be
about $6.8 million, also argued that it is "appropriate
that a special tax be imposed on those who have so fully
enjoyed the benefit of the things this country provides."
Under current law, the first $675,000 ($1.3 million for
couples) of an estate is exempt from taxation.

Democrats have pointed to data showing that only two
percent of estates are affected by the tax -- and that
half the revenue from the tax comes from 3,000 estates
worth more than $5 million.

The leader of the movement to repeal the tax, Republican
Senator Jon Kyl of Arizona, disagreed with Gates'
suggestion that elimination of the tax would cause a
decline in charitable donations.

Kessler, Glenn. "Gates Sr. Spars With GOP Over Estate
Tax." Washington Post 3/16/2001.
http://www.washingtonpost.com/wp-dyn/articles/A12171-2001Mar15.html

http://fdncenter.org/pnd/current/004041.html

New Survey Shows Growth in Faith-Based Outreach Programs

According to a survey funded by the Indianapolis-based
Lilly Endowment, community outreach programs are operated
by an overwhelming majority of the country's 325,000
religious congregations.

The study by the Hartford Institute for Religion Research
study found that 85 percent of U.S. congregations already
offer community service programs -- making such programs
more common than prayer groups or choir practice. The most
common programs offered by churches provide some combi-
nation of cash, food, clothing, and shelter to needy families.
In addition, more than a third of the congregations surveyed
offer day care, substance-abuse counseling, or health
education.

"Their contribution to the welfare of communities is far
greater than many estimates suggest," said Hartford
Seminary researchers Carl Dudley and David Roozen.
Contrary to some published reports, Dudley and Roozen add,
"congregations with a strong commitment to social justice
and with direct participation in community outreach
ministries are more likely to be growing than other
congregations."

Lattin, Don. "Community Services Abound in Churches;
Study Shows Possibilities of 'Faith-Based' Charity."
San Francisco Chronicle 03/15/01.

http://fdncenter.org/pnd/current/004037.html

Tithing by Congregants Difficult to Measure

According to a new survey released by the Atlanta-based
Interdenominational Theological Center
(http://www.itc.edu/home.html), approximately forty-five
percent of African American church members tithe.

"There is more and more data that black churches are more
involved [in tithing] than white churches because the
laity is more theological," ITC spokesperson Stephen Rasor
told the Philadelphia Inquirer. "One does not separate
the secular from the religious."

Other statistics on tithing practices are difficult to come by,
however, and many experts are skeptical about how
generous Americans really are when it comes to giving to
their congregations.

"The gloves come off when people talk about money and
churches," notes Sylvia Ronsvalle, vice president of
Chicago-based Empty Tomb (http://www.emptytomb.org/),
a Christian research organization. "There is an unwritten
rule that pastors don't want to know how much people give
because they don't want it to affect their ministry. And
as we become a more affluent culture, we found church
members formed their attitudes toward money based on
advertising. Churches are keeping people happy rather than
transforming them."

Carlson, Edward. "Do Worshipers Give God His 10 Percent?"
Philadelphia Inquirer 3/11/2001.
http://inq.philly.com/content/inquirer/2001/03/11/city/tithe11.htm

http://fdncenter.org/pnd/current/004040.html

Three Foundations Partner to Promote Religious Pluralism
in Israel

Three major Jewish philanthropies, the D.C.-based New
Israel Fund (http://www.nif.org/), the New York City-based
Nathan Cummings Foundation (http://www.ncf.org/), and the
Dorot Foundation (http://www.dorot.org/) in Providence,
Rhode Island, have announced a partnership to promote the
development of a pluralistic, tolerant Israeli culture
that is inclusive of diverse approaches to Judaism and
Jewish identity through a new program called Joint Venture:
Religious Pluralism.

"This partnership will create a synergy," said Dorot
Foundation executive director Ernest S. Frerichs. "By
pooling our knowledge, years of experience in Israel, and
differing strategies, we'll not only bring more resources
to the issue, but provide an incentive for other funders
to join our collaboration."

The new initiative's goals include fostering diverse
expressions of Jewish identity and practice; providing a
non-Orthodox venue for Israelis to mark important
lifestyle events; creating conditions in Israel so that
every couple can marry according to his/her personal
choice, among others.

"One of the great ironies of contemporary Israel is that
non-Orthodox Jews lack the right of full religious
expression and worship," said Rachel Cowan, director of
the Jewish Life program at New York City-based Nathan
Cummings Foundation. "Israeli Jews should be able to
choose how they worship, study, and come together in
community, as do Jews throughout the world."

"Foundations Join Forces to Promote Religious Pluralism in
Israel; Aim is Tolerant, Inclusive Approach to Judaism."
AScribe News Press Release 3/19/2001.

http://fdncenter.org/pnd/current/004038.html

-

Carnegie Corporation of New York Announces New Grants to
Promote Teacher Quality

The Carnegie Corporation of New York
(http://www.carnegie.org/) has approved grants totaling
$2.8 million to five nonprofit organizations that will
focus attention on the critical role teachers play in the
school reform movement. The grants recognize teachers'
contributions and the critical need to provide them with
the training, support, and rewards required to perform one
of society's most demanding and important jobs.

"We now know quality teaching is the hallmark of
successful schools," said Daniel Fallon, chair of
Carnegie's education division, "but efforts to recruit
quality teachers and improve their training have not kept
pace with other aspects of the school reform movement. As
it stands, only about 500 of the nation's 1,300 education
schools are nationally accredited and, in a recent federal
survey, a majority of teachers said they felt ill-prepared
to meet many of the instructional challenges they face in
the classroom."

Many education professionals fear that school districts
facing a shortage of teachers will lower teacher
qualifications in order to staff their classrooms. The
problem is aggravated by the fact that more than 30
percent of all teachers, and up to 50 percent of teachers
in large urban districts, quit within five years.

"These numbers suggest that in order to both to recruit
and retain excellent teachers, we need to do a better job
of honoring the profession, preparing teachers, and
helping them cope with the challenges of the classroom
early in their career," added Fallon.

"A New Focus for Education Division of Carnegie Corpor-
ation of New York: Teacher Quality in School Reform."
Carnegie Corporation of New York Press Release 3/5/2001.

http://www.carnegie.org/sub/news/teachered.html

http://fdncenter.org/pnd/current/004044.html

Packard Foundation Donates $11 Million for UC, Merced
Campus Site

The University of California, Merced has received a grant
of more than $11 million from the David and Lucile Packard
Foundation in Los Altos, California. The grant will enable
UC Merced to acquire the 7,030-acre Virginia Smith Trust
parcel northeast of the city of Merced and provide the
means to achieve several important goals, including
securing the proposed site for the new 2,000-acre UC Mer-
ced campus, creating a 5,030-acre conservation preserve,
providing a direct contribution to the Trust's educational
endowment, and triggering the release of $15 million in
state-approved habitat acquisition funds from the Wildlife
Conservation Board.

"David Packard was known for his vision in technology, in
conservation, and in building a global enterprise," noted
UC Merced chancellor Carol Tomlinson-Keasey. "This
marvelous support from the foundation's trustees is
similarly visionary. We are deeply appreciative of this
gift from the Packard Foundation, which has a special
commitment to the environment and to preserving
California's natural heritage. The funds from this grant
will allow us to create a world-class research university
in Merced at the same time that we protect unique natural
habitats of eastern Merced County."

The planned development and natural preserve created by
the foundation's gift will augment the efforts taken last
year by Gov. Gray Davis and the state legislature to
create a $30 million fund for purchase of conservation
easements in eastern Merced County.

"Packard Foundation Donates More Than $11 Million to UC
System for Acquisition of Proposed Merced Campus Site."
University of California, Merced Press Release 03/20/01.
http://www.ucmerced.edu/

http://fdncenter.org/pnd/current/004043.html

Queens College Returns $3 Million Gift

Queens College, in Flushing, New York, has returned $3
million to an alumnus who donated money to the school to
help build an AIDS research center, the New York Times
reports.

Dr. Bernard Salick, a 1960 graduate of Queens College, and
his wife Gloria donated $4.5 million to the school -- one
of 19 colleges in the City University of New York system
-- in 1997 as seed money toward construction of the $30
million center. The Salicks' gift also was intended to endow
a chair in cellular and molecular biology for Dr. Luc Mon-
tagnier, the discoverer of the AIDS virus. When matching
funds promised by the school's then-president, Dr. Allen L.
Sessoms, failed to materialize, however, the Salicks asked
that their gift be returned.

"It's a great school with a great faculty and great
students," commented Dr. Salick. "Obviously I'm very
saddened that a project that looked like a spectacular
project for Queens didn't develop as we wanted."

The college will keep $1.5 million of the gift that was
used for development plans and a temporary research
center. It will also use $291,000 in interest earned by
the gift to endow the Bernard and Gloria Salick
scholarship fund for students in biological or biomedical
sciences. Dr. Montagnier, who currently has a tenured
position as a distinguished professor at the college, is
still in negotiations with the college regarding his
position.

Arenson, Karen W. "College Returns $3 Million Gift for
AIDS Lab." New York Times 3/17/2001.
http://www.nytimes.com/2001/03/17/nyregion/17QUEE.html?searchpv=site02

http://fdncenter.org/pnd/current/004039.html

***************** ANNOUNCEMENT ****************

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2.0, contains current profiles of the top 10,000 U.S.
foundations. Our CD-ROM technology offers high speed
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formats!

For more details, visit:
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:::::::::::: DAILY UPDATES (March 14-19) ::::::::::::::

-- Council on Foundations Urges Repeal of Excise Tax on
Foundation Investment Income
-- Massachusetts Couple Donates $3 Million to Yellowstone
Park Foundation
-- New York Center for Arts and Education Receives $12
Million from Annenberg Foundation
-- Gates Foundation Gives Over $100 Million to Washington
High Schools
-- Children's National Medical Center Launches $250
Million Fundraising Campaign
-- AT&T Foundation Awards Grant to National Council of
La Raza

Council on Foundations Urges Repeal of Excise Tax on
Foundation Investment Income

In an appearance before the Senate Finance Committee,
Dorothy S. Ridings, president and CEO of the Council on
Foundations, told committee members that private
foundation giving would actually increase by hundreds of
millions of dollars a year if the excise tax on private
foundations was repealed.

The tax, generally two percent of a foundation's annual
net investment income, was enacted in 1969 to cover the
costs of IRS oversight of private foundations. The tax
counts as a credit against the annual minimum
distribution, or "payout" -- currently five percent of
a foundation's assets -- that private foundations are
required to make under federal law.

"It is important to emphasize that repeal would have no
financial benefit for foundations," Ridings said in a
statement for the hearing record. "Every dollar not paid
in taxes would go directly into the charitable stream."

Under a provision enacted in 1984, foundations may pay one
percent of the net investment income, rather than two
percent, if their payout in a given year is greater than
the average of the preceding five years. Congress intended
the rule to spur more giving, but in practice the rule has
acted as a disincentive to higher distributions.

"Council Urges Repeal of Excise Tax on Private Foundation
Investment Income, Support for Other Charitable Proposals."
Council on Foundations Press Release 3/14/2001.
http://www.cof.org/newsroom/cofpress/pr031401.htm

http://fdncenter.org/pnd/20010313/004031.html

Massachusetts Couple Donates $3 Million to Yellowstone
Park Foundation

Cheng and Shalin Wu, founders of network services company
Arrowpoint Communications, a provider of Internet
switches and network services software, have donated $3
million to the Yellowstone Park Foundation
(http://www.ypf.org/), the Boston Herald reports.

The money, almost half of the $6.7 million the Montana-
based nonprofit has raised for the park to date, will go
toward creating a new visitor center, to be built next to
Old Faithful, the park's famous geyser. According to
foundation officials, the existing visitor center is
"poorly located, poorly designed, has no interpretive
exhibits, and does little to enhance the visitor
experience."

The new center is expected to cost approximately $15
million. When completed, it will feature an exhibit
space, a high-tech library, and a 300-seat theater.

The Wus first visited Yellowstone, the first and oldest
national park in the world, in 1999 and made their
commitment last summer, after their Acton-based company
was purchased by networking giant Cisco Systems for $5.7
billion.

"We had never seen so many animals," Shalin Wu noted.
"It's their home. It's not ours. We should save it for
them."

Sweet, Laurel J. "Couple from Carlisle Donate $3 Million
to Yellowstone Park." Boston Herald 3/12/2001.

http://www.bostonherald.com/news/local_regional/yell03122001.htm

http://fdncenter.org/pnd/20010313/004032.html

-------------------------->-------------------------

New York Center for Arts and Education Receives $12
Million from Annenberg Foundation

The New York City-based Center for Arts and Education
(http://www.cae-nyc.org/) has received a $12 million grant
from the Annenberg Foundation (http://www.whannenberg.org/)
and a $2.5 million commitment from the New York City Board
of Education to bring arts education to all of the city's
public school children.

The two grants will form the nucleus of a $21.5 million
campaign to identify and disseminate model programs;
expand internships in the arts for students and profes-
sional development for teachers and administrators;
foster greater parent involvement; and promote
partnerships among schools, cultural organizations, and
the city's businesses.

"We are grateful to the Annenberg Foundation and to the
City of New York for their steadfast commitment to the
revival of arts education in our city's public schools,"
said CAE board chair Laurie Tisch Sussman. "The Annen-
berg Challenge catalyzed a coalition of public and private
organizations and businesses in support of arts education
for our great city's children."

This is the second grant CAE has received from the
Annenberg Foundation. The first, for $12 million in 1996,
was matched with $24 million by the Center and currently
helps fund arts education partnerships between 80 public
schools and 135 cultural organizations, colleges, and
universities.

"The Center for Arts Education Wins Announces Phase
Two Initiatives and Major Funding for Arts Education."
Center for Arts and Education Press Release 03/15/2001.
http://www.cae-nyc.org/press24.htm

http://fdncenter.org/pnd/20010313/004033.html

Gates Foundation Gives Over $100 Million to Washington
High Schools

The Bill & Melinda Gates Foundation
(http://www.gatesfoundation.org/) has chosen sixteen
public high schools to participate in the Washington State
Achievers Program. The schools chosen will share more than
$9 million to support improvement and redesign efforts;
another $100 million will be earmarked for scholarships
for students. Launched two months ago, the Washington State
Achievement Program is geared to helping more students in
the state prepare for, attend, and complete college.

"It needs to start in middle school," said Tom Vander Ark,
the foundation's executive director for education. "This
program will work with students beginning in middle school,
through high school, and even into college. It's a compre-
hensive approach to addressing issues of access to higher
education."

The selected schools, representing a cross-section of the
state's public high schools, will move toward learning
environments of no more than 100 students per grade level.
The average size of the high schools selected is about
1,000 students. Schools will also redesign how they
approach teaching and learning, personalized instruction,
and the use of technology as a tool.

"The research on small schools is conclusive," said Rick
Lear, director of the Small Schools Project at the
University of Washington. "Kids thrive when teachers know
their names and can follow their progress. Redesigning
schools is hard work, but the results are worth every
effort invested."

The scholarship component of the program will be
administered by the Washington Education Foundation. Under
the program, 500 scholarships will be awarded every year
to low-income, high achieving students to attend
Washington public and independent colleges and
universities. Additional information on the scholarship
program is available at the Washington Education
Foundation Web site (http://www.waedfoundation.org).

"High Schools in Washington State Chosen for Washington
State Achievers Program."
Bill & Melinda Gates Foudation Press Release 03/13/01.
http://www.gatesfoundation.org/

http://fdncenter.org/pnd/20010313/004034.html

-------------------------->-------------------------

Children's National Medical Center Launches $250 Million
Fundraising Campaign

Children's National Medical Center
(http://www.dcchildrens.com/), a leader in the development
of innovative treatments for childhood illnesses, has
announced the launch of Giant Steps: Great Strides for
Children's Health, the largest fundraising campaign in the
history of American pediatric hospitals.

"The campaign will have a significant impact on children
everywhere in terms of the major breakthroughs in research
and medical treatment that will be made possible," said
Edwin K. Zechman, Jr., president and CEO of CNMC. "It
significantly raises the bar for what will be possible in
children's health care, as well as what will be achievable
in philanthropic support for pediatric hospitals across
the country. This increase in funding will drive
advancements that can be moved from the research bench to
bedside more quickly than ever before."

The five-year campaign has already raised $155 million of
its $250 million goal, thanks in part to two $25 million
gifts. The gifts, from Mr. and Mrs. Joseph E. Robert, Jr.
of McLean, Virginia, and Mr. and Mrs. Stephen A. Goldberg
of Washington, D.C., are the largest single gifts ever
received by a pediatric hospital in the U.S. Mr. Robert is
co-chair of CNMC's Leadership Gifts Committee and CEO of
McLean-based J.E. Robert Companies. Mr. Goldberg is
president of the D.C.-based Stephen A. Goldberg Company
and, with his wife Diana, a founder of the Children's
Hospital Foundation, a major contributor to CNMC.

"Philanthropy is an investment -- an investment in a way
of life, a future, and a cause," said Mrs. Goldberg.
"There is no cause greater than the health of our
children, and no hospital better positioned than
Children's to hasten medical advancements to benefit
children worldwide."

Funds raised by the campaign will help CNMC recruit
additional world-class scientists to accelerate the
discovery of medical advances, including new treatments
and cures for complex diseases such as cancer, AIDS,
epilepsy, and muscular dystrophy. Funds also will be used
to bolster hospital-based surgical services, update
medical technologies, and refurbish and expand facilities
to accommodate CNMC's rapid growth.

"Children's National Medical Center Launches $250 Million
Fund Raising Campaign By Announcing More Than $155 Million
in Major Gifts Already Received." P.R. Newswire 03/19/01.

"Children's National Medical Center to Launch $250 Million
Fund Raising Campaign to Shape Future of Pediatric Care."
Children's National Medical Center Press Release 03/12/01.
http://www.dcchildrens.com/press/prs3.htm

http://fdncenter.org/pnd/20010313/004035.html

------------------------->-------------------------

AT&T Foundation Awards Grant to National Council of
La Raza

The AT&T Foundation (http://www.att.com/foundation/) has
awarded a $250,000 grant to the National Council of La
Raza (http://www.nclr.org/) to support its Latino
Education Reform Project, an effort to ensure that the
educational needs of Hispanic students are met.

The project will focus on increasing the educational
achievement of Hispanic students through policy formation
at the federal, state, and local levels as well as
identification and replication of best practices to be
used in community-based educational settings. Policy
activities will include increasing the access of Latino
students to effective program interventions and shaping
public school reforms to assure their responsiveness to
Hispanic students.

According to research by the U.S. Department of
Education, between 1986 and 1997 the percentage of
Hispanic students in elementary and secondary schools
increased at a faster rate than that of white and
African American students. A 1998 report issued by the
NCLR found that Hispanic students are more likely to
begin their education with high poverty rates, low levels
of parental education, and limited English proficiency.

"This latest grant from the AT&T Foundation is extremely
helpful to us in providing better educational
opportunities to Hispanic students," said NCLR president
and CEO Raul Yzaquirre. "I am very grateful to AT&T for
their many years of support to the National Council of
La Raza."

"AT&T and National Council of La Raza Help Close Gap
Faced by Hispanic Students." AT&T Foundation Press
Release 3/16/2001.
http://www.att.com/foundation/news/010301_2.html

http://fdncenter.org/pnd/20010313/004036.html

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