Connecticut’s nonprofit sector is hailing the Giving Pledge — a recent agreement among 40 of the wealthiest Americans to give away much of their fortunes to charity — as an exciting call to action for both donors and the nonprofit community itself.
Melissa Morriss-Olson, provost and professor of nonprofit management and philanthropy at Bay Path College, describes this news as “transformational philanthropy.”
“This is a wonderful initiative and I applaud these individuals for their foresight and passion. By stepping up in such a public way in committing significant portions of their wealth to charity, these individuals are putting into practice the notion of ‘transformational philanthropy.’ Our nation’s charities are working harder than ever before with limited resources to solve some of our most pressing social problems. In Connecticut alone, the challenges facing the nonprofit sector are well documented. The potential impact of this commitment of wealth for transforming the business of doing good is enormous,” said Morriss-Olson.
Trevor Neilson, president, of Global Philanthropy, notes that the Giving Pledge is a historic development in American philanthropy history.
“Never before has a group of billionaires joined together in this way, and I think will create a new set of cultural norms around wealth and how it is used. The world of billionaires is a small one, and these people stepping forward will create significant pressure on those who haven’t yet decided how to use the wealth they have built,” Neilson said.
According to Forbes, the 40 who have taken the pledge have a combined net worth of over $230 billion, and many of them have said they intend to give away much more than 50 percent of their total wealth. Warren Buffett, who helped launch the Giving Pledge, has said he plans to give away 99 percent of his wealth.
In addition to Buffett and Bill Gates, the country’s two wealthiest individuals with a combined net worth of $90 billion, according to Forbes, the 38 other billionaires who have signed on to the pledge include Oracle co-founder Larry Ellison, David Rockefeller, New York Mayor Michael Bloomberg and Sanford Weill who ran Travelers from 1993 to 1998 when the insurance giant merged with Citicorp to form Citigroup.
Weill’s charitable connections include forming the National Academy Foundation (NAF) in 1980, which operates 11 academies in Connecticut, including Hartford, East Hartford, New Haven, Windsor, New London and Stamford.
“Ninety percent of NAF’s students graduate, with most going on to post-secondary education — often as the first in their families to attend college,” said Michael Conway, who runs public relations for the Weills.
Nancy Roberts of the Connecticut Council for Philanthrophy said the pledge “can be transferred to all of us in Connecticut from the wealthy to those of us who are less wealthy to give more within what we can afford. Many nonprofit organizations in Connecticut that entertain, heal, educate and support the citizens of our state can use all gifts, even small ones.
“We at the Connecticut Council for Philanthropy are encouraged by the national discussion on charitable giving and applaud everyone in the state who is committed to intentional and informed giving. Connecticut residents who want to educate themselves about opportunities for giving can reach out to their local community foundations and the United Ways or visit our website www.CTphilanthrpy.org or www.Guidestar.org.“
According to Forbes, the U.S. has approximately 400 billionaires, about 40 percent of the world’s total, with a combined net worth of $1.2 trillion.
Foundation’s Grants Key To Federal Aid
A federal government stimulus program could potentially award more than $1.7 million in matching funds to 16 Greater Hartford nonprofit agencies, thanks to initial grants of more than $400,000 from the Hartford Foundation for Public Giving. The funding is part of a public-private partnership that will bring $34 million in leveraged federal stimulus aid specifically to help Connecticut families in need with housing, utility payments, job assistance and other basic needs. Nationally, up to $5 billion was allotted for the program.
The funds will be distributed through Temporary Assistance to Needy Families (TANF), a federally-financed, state-operated program that provides cash assistance to families with children whose income is under 75 percent of the state median. The 16 agencies receiving funding from the Hartford Foundation will use the funding in 21 programs targeting TANF-eligible clients in the 29 towns in Greater Hartford. These programs address basic human needs, including food, clothing, emergency assistance, and related case management; job readiness or vocational training; access to summer programs and other supports; back-to-school preparation; financial services; utility arrearages support; as well as a media campaign to expand public information on the TANF program.
