President's Perspective

So What About the Children?

The new administration faces daunting challenges like no other. With economic volatility comes agonizing choices for how to deploy ever scarcer resources. The health and well-being of children and youth must be a national priority. We have yet to adequately respond to the social disaster that has plagued children, young people, and families in low-income communities for years and which, as our economy continues to weaken, will only get worse. More »

 

Investor Update

Bill Gates, Sr. Launches Fall Investor Speaker Series

VPP Investors, board members, and special guests gathered at the Kennedy Center on October 20 to enjoy a stimulating discussion with Bill Gates, Sr. over lunch. The event, sponsored by JP Morgan, allowed attendees to participate in an active dialogue with the co-chair of the Bill & Melinda Gates Foundation. More »

From the President

So What About the Children?

Carol Thompson ColeThe new administration faces daunting challenges like no other. With economic volatility comes agonizing choices for how to deploy ever scarcer resources. The health and well-being of children and youth must be a national priority. We have yet to adequately respond to the social disaster that has plagued children, young people, and families in low-income communities for years and which, as our economy continues to weaken, will only get worse.

In the world’s richest country, why do 13.3 million children live in poverty and 5.5 million of those in what is considered extreme poverty? Why are more than 12.6 million children at risk of hunger each day? Why are 9 million children uninsured and unable to get health care? Why have more than 28,000 American children been killed since the start of the wars in Afghanistan and Iraq as a result of suicide, homicide, or child abuse? Where is the rescue plan for children and families trapped in a continuous cycle of poverty? Where is the outcry to address this grave insecurity within our homeland?

The issues of these children and families don’t get heard because they don’t have powerful lobbyists to keep them front and center. Unfortunately, we ignore these children at our peril. These children can and should be tomorrow’s innovators, tomorrow’s workers, tomorrow’s voters, tomorrow’s leaders. If we don’t support them, they more likely will become tomorrow’s school dropouts, tomorrow’s criminals, tomorrow’s victims of violent crime, tomorrow’s homeless, tomorrow’s promises unrealized. In a competitive, global economy, everybody matters. And everyone has to be equipped and ready to deal with an increasingly complex world with daunting challenges from global warming to energy to food production as well as challenges that we cannot yet imagine.

The election of a new administration offers a fresh opportunity to begin to address and identify solutions to what have been intractable issues. I asked the leaders of our investment partners for some of their thoughts about how the government can and should support children, youth, and their families. Here are some suggestions for how the next administration can make children’s issues a priority:

• Set A National Agenda for Children
Children’s issues have to be an important focus along with the economy, defense, and climate change. At present, funding for children’s programs comes from multiple agencies that are uncoordinated and sometimes work at odds with each other. In the United Kingdom, Prime Minister Gordon Brown actually created a Cabinet Position—Secretary of State for Schools, Children and Families—to focus specifically on these issues. While we do not need to create a new agency or Cabinet post, we need to ensure that there is better coordination in terms of funding and programs among the multiple federal agencies responsible for children’s issues and that those issues are in the forefront of national conversations.

According to an April 2008 report of the bi-partisan children’s advocacy group, First Focus, only one penny of every new non-defense dollar spent by the federal government has gone to children and children’s programs in the last five years. Furthermore, the overall share of federal non-defense spending going to children’s programs dropped 10 percent over the past five years. This is not making children a priority and it must change.

• Realize the Promise of No Child Left Behind (NCLB)
In the same way we need more synchronization among federal agencies serving children, we also need better coordination among federal, state, and local entities, particularly in regards to NCLB. We must strengthen and improve NCLB by providing federal dollars to support local school improvement efforts and, as with all federal mandates, ensure that all funds authorized are actually appropriated.

• Let’s Not See Children in a Vacuum
When addressing critical issues affecting our country such as health, education, environment, transportation, job creation, welfare, and homeland security, let’s not forget the unique needs and concerns of our youngest citizens. What we do in each of these areas impacts the lives and futures of children. No single factor leads to a healthy, well–educated, and productive adult. We have to look at multiple factors across the continuum of development from birth to adulthood.

• Use Tax Policy To Encourage More Giving to Children and Families
Think creatively about tax policy and how it affects giving. Policies designed to more aggressively reward charitable giving toward children’s programs and services would go a long way. And in reworking tax policy, consider raising the minimums on the amount of money foundations, which are among the largest private supporters of children’s programs, are required to spend each year. Currently, they are required to spend 5% of their endowments annually and included in that 5% are expenses. These policies should be reconsidered to reward foundations and private individual donors alike for increasing grantmaking that goes directly to support children’s programs.

• Support Nonprofits
The federal government will not be able to address all the social issues affecting its citizens. Nonprofit organizations fill a gap in providing social services, especially in providing services to specific populations. The new administration should recognize the important role of nonprofits in the US in providing solutions to specific needs that are not addressed by local, state, or federal governments. The new administration should find ways to support the work of nonprofits. Government agencies should treat nonprofits as true partners and join with the private and nonprofit sectors to work together, such as facilitating capital investments to support on-the-ground nonprofits serving children and families, as well as advocate on their behalf. And government should look at ways to make compliance among nonprofits with federal grants less burdensome, striking a balance between accountability and bureaucracy.

We all know that children are our future. Yet, unfortunately, we have a hard time thinking beyond the present. We are in very challenging times that are likely to become even more difficult in the coming months, even years. While we all are hurting, it is our children, especially those living in poverty, who hurt the most. We, as a nation, must make the health, education, and well-being of our children a national priority. This is a matter of national security. Let’s make sure that the next administration is committed to supporting children and families. If we do, we will be a much stronger, more competitive country.

- Carol Thompson Cole

InvestorUpdates

Bill Gates, Sr. Launches Fall Investor Speaker Series

GatesEvent
Don Graham, Carol Thompson Cole, Bill Gates, Sr. and
Jack Davies were featured at the October 20 event.
(Photo by Anne Lord, Anne Lord Photography)

VPP investors, board members, and special guests gathered at the Kennedy Center on October 20 to enjoy a stimulating discussion with Bill Gates, Sr. over lunch. The event, sponsored by JP Morgan, allowed attendees to participate in an active dialogue with the co-chair of the Bill & Melinda Gates Foundation. Jack Davies, VPP board member and development committee chair, moderated the conversation, soliciting Mr. Gates’s perspectives on topics ranging from the impact of the economy on the nonprofit sector to how philanthropists should determine priorities in a time of constrained resources.

When asked what the Gates Foundation has learned, Mr. Gates shared three key lessons:


Bill Gates, Sr. and Jack Davies discuss topics of interest to VPP investors, board members, and special guests. (Photo by Anne Lord, Anne Lord Photography)

1. Understanding the scope and depth of challenges, particularly regarding the delivery of medical solutions in developing countries;
2. The benefit of researching and applying models and programs that have been successful elsewhere; specifically services that address the problem of homelessness in the United States; and, above all,
3. The role of advocacy. “It didn’t occur to us how important it would be to influence others with resources, particularly the United States government…As large as we are, we are miniscule compared to others.”

Mr. Gates also discussed how Warren Buffet’s gift of $31 billion to the Gates Foundation created a surge of interest in giving to intermediaries and said, “It’s a project that deserves specific attention. We may put some weight behind it.”

Doing Well and Doing Good

On October 16, VPP investors and founders shared the lessons they’ve learned through their philanthropy with the DC Chapters of the Young Presidents’ Organization (YPO) and the World Presidents’ Organization (WPO). In a rare and candid conversation, the four friends and panelists discussed giving back from their various perspectives. Steve Case spoke about giving through business, as a CEO who created a triple bottom-line company in Revolution. Raul Fernandez shared what motivated him to get so deeply involved in philanthropy early in his career, while building his first company Proxicom. Mario Morino talked about his experience making strategic philanthropy a full-time pursuit that started with a two-year journey learning about the needs and challenges of the sector. And US Senator-elect Mark Warner discussed his transition from business to public service and the change one can effect through policy.

Fred Schaufeld, VPP Investor, described the session this way: "The VPPers gave a fascinating insight into their private philanthropy, blazing a trail for the YPOers and WPOers to follow. I think they tapped into an enormous collective desire of these successful entrepreneurs to give back to their community. They were like trusted friends who didn't have to preach about 'what's right,' but, more importantly, showed us how to get 'what's right' done."

Investment Partner Updates

Expansion Actions

AALEADAALEAD Adds High School Program in Montgomery County
Thanks to Rick Chen, Manager of Development & Communications, for this update.

In 2006, AALEAD began expanding its after-school programs to Montgomery County, MD, to serve low-income Asian American families who had moved there from the District, due to rising housing costs associated with gentrification. AALEAD first implemented its Tutoring, Mentoring, and Family Strengthening services to the Silver Spring and Wheaton areas to provide culturally and linguistically appropriate activities for children and families. In 2007, the After-School Academic Enrichment (ASAE) Program added opportunities for middle school youth in these same geographic areas with great success.

This year, AALEAD celebrates the opening of its first high school site and the creation of the Maryland Secondary School Program (SSP) at Albert Einstein High School, Kensington, MD. AALEAD chose Einstein because of its large Asian population (11.7% of the student body) and the strong support the school has provided, including resources and time during the school day to recruit students. Currently, 13 students participate in the three days per week after-school program which includes activities such as SAT preparation, skills instruction, and Youth Council, which focuses on community service and service learning.

Awards & Recognition

LAYCLAYC Receives Department of Education Award
Thanks to Lori Kaplan, Executive Director, for this update.

The Latin American Youth Center has been awarded a multi-year grant to implement a US Department of Education High-Quality Supplemental Educational Services (SES) and After-School Partnerships Demonstration Program. LAYC is one only five organizations and school district partnerships in the nation to be awarded this prestigious and competitive grant opportunity. The demonstration award will expand and enhance LAYC’s work in the area of Supplementary Educational Services and 21st Century Community Learning Centers over the past few years.

The new national demonstration model, “Road Map to Educational Excellence / Mapa al Exito Escolar,” will be based at McFarland Middle School in the District of Columbia. Through academic and personalized individual enrichment, community service, family strengthening, and counseling, LAYC will insure that all eighth grade students at McFarland successfully transition to high school prepared to graduate and pursue post-secondary education.

As a national partnership demonstration grant, LAYC will be participating in an external evaluation of its model. If successful, LAYC anticipates that one day its “Road Map to Educational Excellence” will be replicated at public middle schools across the country. For more information, contact Gerry Schaffer, LAYC Director of Educational Enrichment at gerry@layc-dc.org.

HeadsUpHeads Up Honors Outgoing Board Member Jack Davies, Forms Founders Council
Thanks to Neeta Shah, Director of Development, for this update.

Jack Davies, retired America Online executive, was honored on September 30 for his commitment to Heads Up. Over the past six years, through his dedication and support, Davies has helped Heads Up grow and channel the talent and leadership of more than 3,000 college tutors to provide academic support and caring adult connections to more than 10,000 public school students throughout the District of Columbia.

Through the Heads Up program, students are paired with a college student who takes an interest in them, feeds them a snack, helps them with their homework, reads stories with them, and takes them on field trips. These college students serve as role models who inspire students to attend college and dream of a life beyond what they may have imagined. In turn, the college students learn their own capacity to make a difference and are inspired to continue to work in the public interest. Through its program, Heads Up has built a cycle of leadership and learning in two generations.

To continue this work, Heads Up has created its Founders Council with Jack Davies as its first member. The Council will help Heads Up increase its impact in the lives of underserved children.

Announcements of Note

CentroNiaCentronía Hosts Policy Makers to Discuss Universal Preschool Initiative
Thanks to Brenna Casey, Communications Manager, for this update.

Area policy makers met at CentroNía in Takoma Park, MD, on October 16 to discuss the benefits of the State’s Preschool for All business plan. Attendees included Lieutenant Governor Anthony Brown, Montgomery County Councilmember Valerie Ervin, Assistant State Superintendent in the Division of Early Childhood Development of the Maryland State Department of Education Rolf Grafwallner, and President of the Montgomery County Board of Education Nancy Navarro.

“This was a monumental meeting,” BB Otero, CentroNía’s President and CEO, said. “In the wake of a changing economy and disproportionate access to quality education, this is one of Maryland’s most pressing and important issues.”

Centronia Takoma Park
Lt. Governor Anthony Brown and BB Otero visit students at Centronia's Takoma Park location.

In December 2007, the Maryland Task Force on Universal Preschool Education released a report to the Governor and General Assembly with a recommendation to develop an overall plan to create a universal preschool program for all four-year-olds in Maryland by 2014.

“It’s all about creating opportunities for our youngest and most vulnerable children to get off to the right start,” said Councilmember Ervin. Universal preschool education is a proven strategy for offsetting the challenges of poverty, language, and learning disabilities.

CentroNía has been at the forefront of providing this type of educational opportunity. In fiscal year 2008, the Montgomery County Council provided funding for CentroNía to facilitate a community-based, year-round prekindergarten program for three- and four-year-olds. This program, located at 1345 University Boulevard in Takoma Park, is the first full-day, full-year, bilingual preschool program with support services for children and families in Montgomery County.

Navarro reported that Montgomery County Public Schools have seen a tremendous increase in enrollment of low-income and minority students. “This is the kind of program we need to support,” she said of CentroNía.

“I’m optimistic,” said Lieutenant Governor Brown, who warned of tough economic times ahead for Maryland. “Tough times don’t last, tough people do, and we’ll weather this. We like these programs; we want them, but we need funding.”

From the Field

NewSchools Venture Fund Celebrates 10th Anniversary

NewSchools Venture Fund, a VPP co-investor, has released a report on its ninth annual NewSchools Summit, held May 20, 2008. “From Innovation to Transformation: Connecting Education Entrepreneurs to Systems Change” recaps the plenary and panel sessions designed to recognize the work that education entrepreneurs have done to transform educational opportunities for underserved children across the country. The Summit also marked NewSchools’ 10th anniversary. DC Mayor Adrian Fenty welcomed participants, and Carol Thompson Cole, VPP President and CEO, participated in one of the panel discussions. VPP investment partners, Friendship Public Charter School, SEED Foundation, and the See Forever Foundation were celebrated with the Persistent Pioneers award.

Sixth Annual Catalogue for Philanthropy: Greater Washington Now Available

On November 17, more than 450 nonprofit donors, leaders, board members, and foundation and corporate giving executives will kick off the 2008-2009 Giving Season with the launch of the sixth annual Catalogue for Philanthropy: Greater Washington.

The Catalogue shines a light on smaller, community-based nonprofits where individual contributions really make a difference. Born of the realization that it’s hard to identify the best nonprofits working at the local level, the Catalogue leverages the region’s knowledge about philanthropy for the benefit of the entire community. Sixty expert reviewers from the region’s foundations, corporations, corporate giving programs, giving circles, larger nonprofits, and the DC government evaluate applications to be featured in the Catalogue. The reviewers look for distinction, merit, and impact, resulting in a carefully vetted list of trustworthy nonprofit organizations. A CPA scrutinizes all finalists: cost-effectiveness and financial transparency are essential. This year, every featured nonprofit has been site-visited, and 31 of the organizations are re-featured from previous years.

In November, 30,000 Catalogues and 100,000 postcards with a “Give Where You Live Message” will be mailed to households throughout the region, offering individuals the invitation to connect with local organizations working in their own backyard. The Catalogue features nonprofits in the fields of education, health, the arts, community service, and the environment, all with budgets of $3 million or less. Through stories of each organization’s power and impact, the Catalogue helps to re-weave the fabric of trust between individuals and nonprofit organizations. In the past five years, the Catalogue has helped its nonprofits raise more than $6.5 million from new donors.

Featured nonprofits receive 100 percent of donations, thanks to support from local investors: the Harman Family Foundation, Meyer Foundation, Morris and Gwendolyn Cafritz Foundation, Philip L. Graham Fund, J. Willard and Alice S. Marriott Foundation, Booz Allen Hamilton, CGI, and TTR Sotheby’s International Realty, among others.

Busy Washingtonians may be interested in the Catalogue’s Donate Now/Decide Later Fund. Donors can send a single check to the Catalogue in December, and inform them in January who the recipients will be. Donate Now/Decide Later allows donors to receive year-end tax deductions and, when the holiday rush has settled down, make thoughtful decisions on supporting the charities that mean the most to them.

For more information or to attend the kickoff, November 17,  from 2 to 4 p.m., at the Harman Center for the Arts, please contact Barbara Harman (bharman@cfp-dc.org). A copy of the new Catalogue for Philanthropy: Greater Washington may also be requested online.

 

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