Posts tagged with: philanthropy

King Solomon, the original 1%

King Solomon, the original “1%”

Last Thursday, NPR ran an interesting piece by Alan Greenblat that featured the perspective of several of the nation’s rich (read: annual household income over $250,000) in relation to President Obama’s determination that the Bush era tax increases end for the nation’s rich as part of any deal related to the looming “fiscal cliff.” The article features a variety of perspectives, but I would like to reflect upon one particular section of that article here. Greenblat writes,

[Mark] Anderson recognizes that the kind of tax increases Obama proposes aren’t going to impinge on his life materially, and he supports them philosophically. But he adds that he thinks Obama and other Democrats make being rich “sound like a bad thing,” which he says is a mistake.

The top 2 percent of earners already pay 35 percent of all federal taxes, according to the Tax Policy Center. In terms of personal income taxes, the top 1 percent alone pay 37.4 percent of total receipts, according to the Tax Foundation — double the share they paid back in 1979. [Edward] Kfoury, who is president of a land trust in Maine, points out that there are years when his personal tax bill has run into seven figures.

“What would make me feel a lot better is if I heard the president say, ‘I want to thank the rich people who, because of our progressive tax system, pay the most — but we don’t have enough money, so we’re asking the wealthy people to help the country out by paying more than their fair share,’ ” says Martin Krall, a 71-year-old “semi-retired” attorney and media executive who lives in Palm Beach Gardens, Fla.

“Instead, you’re made to feel like you’re a bad guy,” Krall says. “People resent the notion that somehow they’ve done something wrong by becoming successful.”

Joe Carter recently examined why soaking the rich won’t fix the deficit, so I will not explore that question here. Instead, I would like to focus on the issue of human dignity, political rhetoric, and an ancient Christian perspective on wealth. (more…)

Bill Gates, easily one of the richest men in the world, recently talked about his wealth and his children’s inheritance, philanthropy and taxes in an article in the the UK’s The Telegraph.

He acknowledged that “[c]apitalism has worked phenomenally” and one need only look at North Korea vs. South Korea to see evidence of that. He also noted, “Capitalism has shortfalls. It doesn’t necessarily take care of the poor, and it underfunds innovation.”

Gates made several remarks to the British audience about the American tax system:

Just raising taxes on the rich won’t solve the crisis, but it seems reasonable to people – and there’s plenty of room to do that without creating disincentives or distortions.”

The news that the mega-rich Republican candidate, Mitt Romney, pays 15 per cent tax “wasn’t shocking at all. That’s the US system. If people want capital gains taxed more like the highest rate on income, that’s a good discussion. Maybe that’s the way to help close the deficit.”

What Gates failed to note is that the American government’s deficit problem is largely due to government over-spending, not under-taxing its citizens.

He announced at the time the article appeared that the Bill and Melinda Gates Foundation was making a $750 million donation to fight AIDS, malaria and TB in Africa, and was also focusing on helping subsistence farmers on that continent. (In July of this year, Melinda Gates announced a “family planning summit”, hoping to raise $4 billion to give more women access to artificial birth control, largely focusing on Africa and Asia.)

Interestingly, Gates said he didn’t expect the Foundation to continue very long after he and his wife were dead.

“Our foundation won’t last long beyond Melinda’s and my lifetime. The resources will last about 20 years after whichever is the last of us to go. There is no family business, and my kids will make their own careers.”

While Gates doesn’t downplay his role in technological innovation, he says the personal passion he once spent on entrepreneurship is now focused on ending disease and starvation for the world’s poor. The Telegraph article also focuses on some fascinating aspects of Gates’ relationship with long-time business rival Steve Jobs, especially in the months leading up to Jobs’ death.

Forbes recently ran a profile of Christian billionaire and Hobby Lobby CEO David Green. According to Forbes, Green is “the largest evangelical benefactor in the world,” giving “at upwards of $500 million” over the course of his life, primarily to Christian ministries.

Yet, for Green, his strong Christian beliefs don’t just apply to how he spends his wealth; they’re integral to how it’s createdin the first place:

Hobby Lobby remains a Christian company in every sense. It runs ads on Christmas and Easter in the local paper of each town where there’s a store, often asserting the religious foundation of America. Stores are closed on Sundays, forgoing revenue to give employees time to worship. The company keeps four chaplains on the payroll and offers a free health clinic for staff at the headquarters–although not for everything; it’s suing the federal government to stop the mandate to cover emergency contraception through health insurance. Green has raised the minimum wage for full-time employees a dollar each year since 2009–bringing it up to $13 an hour–and doesn’t expect to slow down. From his perspective, it’s only natural: “God tells us to go forth into the world and teach the Gospel to every creature. He doesn’t say skim from your employees to do that.”

Economists have increasingly recognized the ways in which healthy stewardship and property rights are linked—how increased ownership leads individuals to weigh costs and benefits more thoughtfully and effectively. Green’s comments add a slight twist to this approach, calling Christians in particular to reconsider who the “owner” actually is and how we might weigh particular costs/benefits and subsequent action accordingly:
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For Christians giving is not about equations and intensives, says Peter Heslam, it’s about a spontaneous response to the grace of a lavishly generous God:
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Peter Cook (center) with fellowship recipients Bo Helmlich (right) and Adam Co at Acton’s 1999 Annual Dinner.

In the main hallway of the Acton Institute hangs a large plaque. The plaque carries the names of the most exceptional students to grace Acton’s Toward a Free and Virtuous Society conferences from 1994 forward. These students, named as Cook Fellows for their outstanding promise and engaged participation, share a connection to the great businessman and philanthropist, Peter Cook. Over the 20 years of the Acton Institute, Mr. Cook sponsored more than 200 students to attend Acton programs, equipping them to articulate and defend the value of a free and virtuous society.

Peter Cook passed away on Sunday evening at the age of 96. His contributions to Acton’s home region of West Michigan are well recognized, but his impact throughout the country and around the world is beyond measure.

This morning, I spent some time reading through files upon files of student testimonials and thank you letters in Acton’s office. The gratitude and admiration felt by complete strangers for Mr. Cook’s life and legacy are in overwhelming evidence. In honor of his passing, I’d like to take a moment to share just a handful of the sentiments expressed.

In 2001, Crossroads of Life pastor and Cook Fellow Lance Scherer wrote:

Even though we have never met, your legacy has been imprinted upon my heart through your generosity. We have such a faithful God, and some of the most thrilling moments in my life have been when I could tangibly see God’s smile upon my life through support like you have demonstrated to me.

2002 participant and professor at Criswell College, Joe Wooddell continued:

Thank you so much for allowing God to use you to help build His kingdom in this unique way. I am better for it, as are my present students and future ministry.

Catholic seminarian Francesco Giordano expressed his admiration differently:

Thoughts and ideas become words; words become actions; actions become habits; and habits become second nature. Thank you for caring about ideas, especially about ideas which our society cannot afford to abandon.

Anglican seminarian and Cook Fellow Christopher Brown most closely expressed our feelings at Acton, writing in 2007:

Thank you so very much… My prayers will be with you continually for the blessing of you and yours. And may you always be comforted by the knowledge that your patronage is raising up generations of energized Christians.

Acton Institute Honors Richard M. DeVos with Faith and Freedom Award

GRAND RAPIDS, Mich. (Sept. 2, 2010) – Richard M. DeVos will receive Acton Institute’s Faith and Freedom Award in October for his remarkable accomplishments in business, American cultural life and philanthropy.

Rev. Robert A. Sirico, president and co-founder of the Acton Institute, cited DeVos for his “decades-long exemplary leadership in business, his dedication to the promotion of liberty, his courage in maintaining and defending the free and virtuous society, and his conviction that the roots of liberty and the morally-charged life are to be found in the eternal truths of the Judeo-Christian tradition.”

DeVos will receive the award on October 21 at Acton’s 20th Anniversary dinner in Grand Rapids. For more on the event, please visit: www.acton.org/dinner

Richard M. DeVos

Few American stories better encapsulate the value of hard work and free enterprise than that of Richard M. “Rich” DeVos. In the late 1940s, DeVos and friend Jay Van Andel became independent distributors for Nutrilite. The California manufacturer of vitamins used a person-to-person direct-selling approach that DeVos and Van Andel adopted when starting Amway from their Ada, Mich., homes in 1959. Together, they refined the direct-selling method of offering individuals the opportunity to build businesses of their own that became the model for scores of direct-selling companies and marked the start of a major worldwide direct-selling industry. Amway, a subsidiary of Alticor, now operates in more than 80 countries and territories around the world and enables more than 3 million people to own independent businesses.

DeVos and his wife, Helen, generously support hospitals, colleges and universities, arts organizations and Christian causes in their hometown of Grand Rapids, and they support numerous organizations in Central Florida. Among the many institutions they have helped create are DeVos Children’s Hospital, the Cook-DeVos Center for Health Sciences, the DeVos Communications Center at Calvin College, the DeVos Campus of Grand Valley State University, and the DeVos Place convention center. Florida contributions include the DeVos Sport Business Management Program at the University of Central Florida, and the Orlando Magic Youth Foundation. DeVos owns the Orland Magic NBA franchise.

DeVos is also an accomplished author. In his books, DeVos presents his most poignant stories and important principles. Compassionate Capitalism (1994) outlines 16 principles for integrating compassion with free enterprise. A later work inspired by DeVos’ heart transplant, Hope from My Heart (1997), imparts ten lessons for life on subjects including persistence, confidence, optimism, respect, and faith. President Gerald R. Ford hailed the book as “exciting, inspiring, and down-to-earth with God-given advice for everyone.” Ten Powerful Phrases for Positive People (2008) continues DeVos’ mission of sharing wisdom from his remarkable life experience and his philosophy.

DeVos is a graduate of Grand Rapids Christian High School and attended Calvin College in Grand Rapids. He served in the United States Air Force from 1944 to 1946. Rich and Helen DeVos, who have been married more than 60 years, have four children and 16 grandchildren.

The Faith and Freedom Award was established as part of the Acton Institute’s tenth anniversary celebration in 2000. The award recognizes an individual who exemplifies commitment to faith and freedom through outstanding leadership in civic, business, or religious life. For this award, the Institute commissioned a sculpture of Lord Acton, the Institute’s namesake, who held firmly to the two pillars of faith and freedom.

Past recipients include, with date of award: John Marks Templeton (2000); Cardinal Van Thuan (2002); Rocco Buttiglione (2004); Charles W. Colson (2006); Mart Laar (2007); and William F. Buckley (2008).

Link to news release on Acton Press page here.

This week’s Acton commentary looks at the trend by many in the charitable sector to become increasingly reliant on government support. Sign up for the free, weekly Acton News & Commentary newsletter in the form here (right hand sidebar).
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The independence of American charities has steadily eroded in recent years as more philanthropic institutions have come to see their mission as one of partnership or collaboration with the government. That’s a nice way of saying, “seeking government dough.” Now, in the throes of a severe economic crisis and budget cutbacks at state and local levels, many charities are in a panic about reduced levels of funding. Anyone with eyes to see could have seen this coming.

A recent report in The Chronicle of Philanthropy spoke of a California budget crisis where “charities there are braced for steep cuts to social services and health care.” In Chicago, one manager of a children’s home said, “We’ve never seen the likes of this.”

The growing dependence of many charities on government support has been accelerated by the federal government’s funding, over several recent administrations, of charitable organizations for managing various social service programs. This funding, its supporters argue, gives private initiative the resources it needs to accomplish good works — with a little extra help from the government. But at what cost? (more…)

Blog author: ken.larson
Friday, July 31, 2009
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In a Wall Street Journal article titled “The Great Philanthropy Takeover” Arkansas based writer David Sanders reports on a recent conference of the nationwide Council of Foundations in his home state. Sanders’ article aligns with Michael Miller’s blog of July 30 “Healthcare – Don’t Forget The Morality Of It” and deserves your attention because of the author’s conclusion that the Obama administration “is beginning to nationalize another sector of the American economy.”

How could that happen? Well it would happen because many of those folks who head up non-profit groups that rely on OPM — other people’s money — have a tough time identifying and convincing donors to give them some. Obama is offering an alternative: Bundled packages of tax payer’s money for “shovel ready” community help projects. If you’re a struggling non-profit with an iffy mission, it’s the greatest grant available.

And Obama knows about grants because when he was a community organizer in Chicago he and his associates, including William Ayres, were able to get over $120 million including matching funds from the Annenberg Foundation to spread around to their constituents. Eventually the Annenberg people cut off their funds because no good could be attributed to the use of all the money they’d supplied, but you get the picture.

Notwithstanding the deceitfulness of that Ayres-Obama Chicago enterprise, we generally should be wary of Greeks bearing gifts.

At the NCEA convention earlier this year I introduced and listened to a former lobbyist give advice to a room full of Catholic educators on how to get a piece of the stimulus money Obama had just announced would be available for schools. Just like Larry Arnn at Hillsdale College in Michigan and the American Council of Trustees and Alumni, I’m distrustful of the influence government has on curriculum and the mission of our schools and worry about the federal government’s intrusion into any enterprise. But at the NCEA event, the room was all ears to the application tricks being offered them.

That’s also what happened at the Foundation meeting in Arkansas, where as Sanders writes:

Carlos Monje, policy director of the White House’s Office of Social Innovation and Civic Participation, briefed the conference on how President Obama, who came up through the ranks of community organizing, wants to “change the ethic of service” for the country. Key to the administration achieving its desired results? Rewarding model nonprofits with federal dollars—seed capital—from the new $50 million “Social Innovation Fund.”

That phrase “ethic of service” calls to mind many things that hang on the tenets of faith to which Christians pay mind. But as we are consistently reminded by the scholars at Acton Institute, our charity is best left to the individual.

As Acton’s core principles state: “The government’s primary responsibility is to promote the common good, that is, to maintain the rule of law, and to preserve basic duties and rights. The government’s role is not to usurp free actions, but to minimize those conflicts that may arise when the free actions of persons and social institutions result in competing interests.” You might ask in this context who would declare a non-profit a proper “model” for funding or determine appropriate “social innovation?” If you said Mr. Monje you’re probably right.

Making the case to individuals for your “good deed” request is not an easy task, but it’s the only way we should be promoting the kind of Charity explicit in the ministry of Jesus Christ.

As I tell my friends in education, “Watch out for the serpent in your tent. Watch out for that Trojan Horse.”

Zenit news service provides extensive coverage of two recent Acton-sponsored conferences in Rome. The first of half of Edward Pentin’s report focuses on Arthur Brooks‘ address at the “Philanthropy and Human Rights” gathering. A sample:

His friend had found that when people gave, they became happier, and when they were happier they became richer. Brooks was subsequently converted, and the discovery changed his life. Moreover, now he realizes that people have as much need to give as they have to receive, he believes those institutions that act as a conduit between the giver and the receiver, such as the Church, must be helped and encouraged.

The second half treats Carlos Hoevel‘s presentation on Antonio Rosmini, part of a symposium on “Finance, Globalization, and Morality.” Pentin writes,

So what would be Rosimini’s solution to the current crisis? Hoevel said that, according to the philosopher’s vision, what we most need now is not so much “the endless injection of billions of dollars and euros” into the economy and heavy government interference, but “the urgent recovery of moral balance and moral content.”

The Catholic News Service has published a report on “Philanthropy and Human Rights: Creating Space for Caritas in Civil Society,” a conference held Dec. 3 in Rome by the Acton Institute.

ROME (CNS) — Even at a time of global financial crisis, human beings need to give charity in order to be happy, said several speakers at a Rome conference on philanthropy and human rights.

Expecting a government to provide all social services and assistance robs those who are economically stable of the opportunity to help others and risks being inefficient, cold and even immoral, said the speakers at the Dec. 3 conference sponsored by the Michigan-based Acton Institute and the U.S. Embassy to the Holy See.

Father Robert A. Sirico, co-founder of the Acton Institute, said, “The market economy is not only the most efficient system to produce and distribute goods and services; it is also the system most respectful of our God-given creative freedom and which allows us to meet the basic needs of our brothers and sisters.”

Father Sirico was the only speaker at the conference — which included Catholic thinkers who have long praised the potential of the free-market economy — to speak directly about the current crisis.

Read the full story on the CNS site.