Waldemar A. Nielsen - Golden Donors: A New Anatomy of the Great Foundations
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The world of the golden donors - the rich and influential philanthropic foundations - is quite likely the least known and yet most pervasive of all the invisible money and power networks in America. Nielsen explores the 36 largest of the 22,000 currently active foundations. He takes the reader inside each of the giants to analyze its people, policies, and performance. From the most famous, Ford and MacArthur, to the most obscure, Mabee and Moody, the author lets in daylight and lets out the bats as well as the butterflies. Golden Donors is a journey through 36 flefdoms, each of which controls upwards of $250 million dollars, beyond the reach of the IRS, in order to encourage medical research, support cultural and artistic endeavors, and not least, to buttress immensely expensive educational institutions. Which of the great foundations in recent years have been spectacular successes and which are failures? Is todays leadership in the third-stream economy equal to the task? Are foundations, seedbeds or killing grounds of new social and political ideas? And what is the federal government, and a variety of administrations, doing to help or harm this new economy? Nielsen provides many surprising and some quite startling answers for the millions of Americans whose lives the golden donors directly or indirectly affect. When Golden Donors first appeared, A. Bartlett Giamatti praised it as an historical guide, a shrewd critique, and an impassioned warning. This remarkable book on the nations largest foundations must be ready by anyone concerned with Americas unique not-for-profit sector and the quality of our national life. Kingman Brewster saw the book as a revealing mirror held up to the faces of big philanthropy...a must book for foundation creators and leaders. Thornton F. Bradsahw said, Golden Donors describes the large American foundations, what they are how they got that way, and wherein lies their strength and their potential. The book is wise, witty, and perceptive - indispensable reading.
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GOLDEN DONORS
GOLDEN DONORS
A New Anatomy of the Great Foundations
Waldemar A. Nielsen
With a new introduction by the author
Originally published in 1985 by Truman Talley Books/E. P. Dutton
Published 2002 by Transaction Publishers
Published 2017 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017, USA
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017, USA
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright 2002 by Taylor & Francis.
Grateful acknowledgment is made for permission to reprint copyright material:
From The Log from the Sea of Cortez by John Steinbeck. Copyright 1951 by John Steinbeck. Copyright renewed 1979 by Elaine Steinbeck, Thom Steinbeck, and John Steinbeck IV. Reprinted by permission of Viking Penguin Inc.
From The Waste Land in Collected Poems 1909-1962 by T. S. Eliot. Copyright 1936 by Harcourt Brace Jovanovich, Inc. Copyright 1963, 1964 by T. S. Eliot. Reprinted by permission of the publisher.
From Chicago in Chicago Poems by Carl Sandburg. Copyright 1916 by Holt, Rinehart & Winston, Inc. Copyright renewed 1944 by Carl Sandburg. Reprinted by permission of Harcourt Brace Jovanovich, Inc.
From John R. Coleman, Diary of a Homeless Man, New York (February 21, 1983). Copyright 1983 by John R. Coleman. Reprinted by permission of New York magazine.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.
Library of Congress Catalog Number: 2001047646
Nielsen, Waldemar A.
Library of Congress Cataloging-in-Publication Data
Golden donors : a new anatomy of the great foundations / Waldemar A. Nielsen ; with
a new introduction by the author.
p. cm.
Originally published: New York : Truman Talley Books : E. P. Dutton,
c1985.
Includes bibliographical references and index.
ISBN 0-7658-0912-5 (pbk. : alk. paper)
1. PhilanthropistsUnited StatesBiography. 2. EndowmentsUnited States
History. 3. Charitable uses, trusts, and foundationsUnited StatesHistory. I. Title.
HV27 .N53 2001
361.76320973dc21
a new introduction by the author.
p. cm.
Originally published: New York : Truman Talley Books : E. P. Dutton,
c1985.
Includes bibliographical references and index.
ISBN 0-7658-0912-5 (pbk. : alk. paper)
1. PhilanthropistsUnited StatesBiography. 2. EndowmentsUnited States
History. 3. Charitable uses, trusts, and foundationsUnited StatesHistory. I. Title.
HV27 .N53 2001
361.76320973dc21
2001047646
ISBN 13: 978-0-7658-0912-4 (pbk)
To Signe and MarinaContents
When The Golden Donors was published in 1985, my preface spoke to the profound and complex changes affecting American philanthropy that had taken place since the publication of my 1972 study, The Big Foundations. In fact, what I imagined would be a six-month update of the first book turned out to be a three-year project. Today, as I look back over the past decade and a half, I realize that equally profound changes affecting American philanthropy occurred in those years.
For example, national prosperity assured that philanthropy entered the twenty-first century with the establishment of several new mega-foundations and unprecedented growth in the assets of many others. It is estimated that $41 trillion to $136 trillion dollars will change hands in the intergenerational transfer of wealth over the next fifty years, and more and more of the estimated 276 deca-millionaires and 350,000 millionaires will formalize their giving. The ranking of the big foundations has and will continue to change as will the number and kinds of vehicles wealthy donors choose to use. The trends are already visible.
IRS records report that 54,000 private family foundations filed 990 forms in 1997an increase from 37,000 in 1989. Community Foundations have grown by leaps and bounds across the nation. In addition, for-profit financial institutions have entered the field. Over the last ten years, commercial donor-advised funds have become an extremely successful giving model. The first of its kind, The Fidelity Charitable Gift Fund, has grown to 22,000 donors and holds assets of $2.3 billion. The new young millionaires, most of whom succeeded as entrepreneurs in the high tech industries, have developed a new form of grant making they call venture philanthropy, while philanthropy as a whole has embraced the concept that its initiatives should be strategic and outcomes-based. The best philanthropy always was based on achieving specific goals, but wider acceptance of these principles is to be applauded.
In the middle of all this change, it is important to note one that stands out above all others. In 1972, philanthropy was as much a mans world as professional baseball. Few women played significant roles, and the vast majority of these were widows and the daughters of the foundation founders. Even then, with some notable exceptions, it was male lawyers and advisors who controlled foundation direction. By 1985, that was beginning to change. Today, women are a powerful force in the field. They lead major foundations and overall they share board seats and staff positions equally with men. It can truly be said that there has been a feminization of philanthropy, and it remains to be seen if or how this will change patterns of giving.
Charitable giving at the turn of the century deserves the serious research and study that critics and scholars younger than I can bring to it. I leave it to them to update The Golden Donors, and I urge them to write the new books that will illuminate this most remarkable American phenomenon: institutional philanthropy.
Waldemar A. Nielsen
February 2001
February 2001
Some books are the fruit of deep inspiration. This one is more the result of a miscalculation. By the early 1980s I had come to feel that my earlier study of the big American foundations published in 1972 was in need of updating. At that vulnerable moment the new Mac-Arthur Foundation of Chicago, in a revealing demonstration of its inexperience, offered me a grant for that very purpose. Astonished by this unprecedented act of support for my work by a foundation under study, I, in a revealing demonstration of my inexperience, accepted the offer. Shortly thereafter I began what I thought would be about a six-month task.
Now, three years of hard work later, this entirely new study is the outcome. The delay has not been due to uncooperativeness on the part of the foundations under examination. Indeed, this time around they have with only a few exceptions been quite helpful, and I should like to acknowledge the efforts of James Joseph, president of the Council on Foundations, in bringing this about.
Rather, the problem has been simply that far more changes, and more profound and complex changes, affecting American philanthropy have taken place over the past few years than I had realized. Not only is the list and the ranking of the largest foundations greatly different from what it was in the early 1970s but the non profit sector as a whole and the environment in which it functions have gone through a historic shift. In the intervening years, the hundreds of thousands of private educational institutions, hospitals, and cultural and charitable agencies have suffered a punishing ordeal of inflation. Public support for the expansion of governmental social programs of various kinds passed its high-water mark and has begun to recede. A mood of conservatism has spread over the country, and a new administration in Washington reflecting that mood has swept into power.
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