Something's gotta give
Charities struggle to boost a culture of philanthropy in
the Valley.
By Guy Keeler / The Fresno Bee
(Updated Sunday, June 26, 2005, 6:11 AM)
Money may appear to grow on trees
in the fertile central San Joaquin
Valley. But the world's richest
agricultural region is reaping a
meager harvest when it comes to
philanthropy.
"Per capita charitable giving is $450
in San Francisco and $45 in Los
Daniel DeSantis, left, runs the
Angeles" per year, says Kurt
Fresno Regional Foundation, which
Madden, chief executive officer of
has aided Break the Barriers,
One by One Leadership of Fresno, a where Maria McCracken helps
nonprofit organization dedicated to gymnastics student Toryn Triplett.
DIANA BALDRICA/THE FRESNO BEE
producing community
transformation by getting area
citizens involved in urban
leadership. "In Fresno, it's under $10."
It's a situation that often looks hopeless to those overwhelmed
with the task of helping the Valley's poor — and can easily be
overlooked by people surrounded by fine homes and sparkling
shopping centers. Yet philanthropy, the desire to help others
through giving, ultimately affects all people as it impacts a
community's quality of life.
What's the problem?
If the Valley were leveled by an earthquake, immediate
assistance would flow in from throughout the state and nation.
But philanthropy goes beyond emergency relief: It involves
planning and raising funds for major projects, all aimed at
producing long-term benefits.
This may be part of the reason the Valley struggles to attract
philanthropic funds from outside sources, says Daniel DeSantis,
chief executive officer of the Fresno Regional Foundation, a
nonprofit community foundation established in 1966 to improve
the quality of life in the Valley through philanthropy.
According to a study by the University of Southern California's
Center of Philanthropy and Public Policy, the central San Joaquin
Valley received $11.20 per person from outside foundations in
2002, compared to $47.17 per person for California as a whole.
Fresno County also trails other comparable areas in the country
in the United Way's Alexis de Tocqueville Society donor
recognition program, which tracks individuals who give more
than $10,000 annually to United Way.
Fresno County, with a population of 854,622 and per capita
income of $18,050, had 10 people contribute more than $10,000
last year, down from 17 the year before. By contrast, the Tulsa,
Okla., United Way, with a population base of 784,344 and per
capita income of $19,774, had 192 persons who gave in excess
of $10,000 last year, up from 177 the year before. But in the
Valley, Fresno exceeded Bakersfield (711,936 population and
$18,022 per capita income) and Modesto (493,383 and
$19,485), both of which had no donors of more than $10,000
last year. Stockton, with a population of 630,357 and per capita
income of $20,241, had 16 individuals who gave in excess of
$10,000.
Despite these discouraging statistics, DeSantis and Madden
believe there are ways to boost philanthropy in the Valley.
Wealthy people are moving into the region, they say, but their
wealth must be tapped and, most importantly, used effectively to
encourage more giving.
"Many people in the Valley have a victim mentality," says
Madden. "They look at our high unemployment problem and say,
'How can we give?' But that's not the right thinking."
Instead, says Madden, community leaders need to focus on
developing a culture of philanthropy in the Valley. In the Bay
Area, he says, people who are interested in bettering their
communities through philanthropy meet regularly to talk about
how to use their financial resources. This practice builds
enthusiasm and attracts more donors.
Fresno lacks that kind of philanthropic culture, Madden says. In
the Valley, generous donors frequently get "tagged" by area
nonprofits and find themselves besieged with requests for funds.
Some area residents choose to send their philanthropic donations
to organizations and causes outside the Valley.
It's going to take new thinking to break existing attitudes and
patterns, says Madden.
"The community has got to want to do things differently," he
says. "And it will only happen when we're convinced that Fresno
and the Valley are worthy of our investment."
Seeding the money garden
Madden advocates a two-pronged approach for turning the Valley
into a garden of philanthropy. First, area residents must become
aware of the situation and be motivated to invest in their
communities. Second, there must be vehicles in place to
transform philanthropic vision into reality.
The Fresno Regional Foundation is one such vehicle that is poised
to carry the Valley to a higher level of giving. However, most
Valley residents are not familiar with the foundation and how it
works.
Last year, the foundation's board of directors hired Public Policy
Associates of Lansing, Mich., to assess the organization's
effectiveness. The researchers interviewed more than 150
representatives from Valley nonprofit organizations, the business
community and local government. They also spoke with local
philanthropists and professional advisers. The team concluded
that the foundation:
Is not well known or well understood in the community.
Is perceived as an organization that has a good purpose but has
not achieved its potential.
Is viewed as an important community asset that can and should
play a greater role.
DeSantis is working hard to raise the foundation's profile. He
says it's important for Valley residents to know how the
foundation is funneling money to nonprofit organizations. Last
year, the foundation made 443 grants totaling more than $4.3
million to nonprofits in fields ranging from education and the arts
to health services and faith-based ministries.
Foundation grants benefited countless Valley residents, young
and old. Money went to Storyland in Fresno's Roeding Park and
the California Armenian Home for the elderly. The Fresno
Metropolitan Museum received funds from the foundation, as did
the San Joaquin River and Parkway Trust; California State
University, Fresno; and Break the Barriers, a program that helps
people with disabilities participate with the able-bodied in sports
and the arts.
DeSantis says it's also important for potential donors to know
about the tax advantages of making gifts to the foundation.
Unlike private foundations, the Fresno Regional Foundation is a
public charity, and donations of appreciated assets such as
stocks and real estate are income-tax deductible at full market
value.
"The best way to promote giving is to showcase the grantmaking," says Chuck Slosser, chairman of the League of
California Foundations and chief executive officer of the Santa
Barbara Foundation. "If you can get peoples' attention on the
good that is done by foundations, it raises everyone's sights."
The Santa Barbara Foundation, with $234 million in assets, made
2,888 grants last year, totaling nearly $18.2 million. The Fresno
Foundation, with $13.4 million in assets, has come a long way in
its 39 years, but should be much larger; that's according to
board member O. James Woodward III, whose father, O. J.
Woodward II, chaired the committee that organized the
foundation in 1966.
"We have not done a good enough job of getting the message
out to make the foundation more visible," says Woodward.
"People need to know the foundation is here to distribute money
in a meaningful way."
William M. Lyles, president and chief executive officer of Lyles
Diversified Inc., of Fresno, is a former board member who now
serves on the foundation's investment committee.
"The foundation is a way for people to make endowments," says
Lyles. "Our family has used it to fit the guidelines of our
charitable giving."
Endowed funds earn investment income, which can be used to
continue making grants over long periods of time.
One of the foundation's immediate goals is to double its
endowment, board president Morton Rosenstein says. This
strategy fits the foundation's long-term goal of providing a more
stable source of funding for area nonprofits, he says.
Think locally, act locally
Lyles says it's rewarding to put something back into the Valley
through charitable giving.
"The foundation allows donors to be involved in how the money
is used," he says. "All the decisions are made locally. It's better
for everyone in the long run because you're doing something that
serves the public interest."
C. J. Peter Bennett of Clovis has made several donations to
Valley nonprofits through the foundation.
"We give annually to a whole laundry list of charities," says
Bennett. "The foundation is good for families who want to give
but don't know or have the time to evaluate the needs of various
organizations."
Bennett says the foundation serves as a helpful intermediary
between donors and nonprofits. Donors with questions about
particular nonprofit groups can get answers through the
foundation.
"One of the hardest things to do is to give intelligently," says
Bennett. "You want your money to go where it will do the most
good."
Many donors refuse to let third parties, such as the foundation,
decide where their funds should go. Last year, all but $55,500 of
the foundation's grants went to donor- designated organizations.
The misuse of funds by a few nonprofits in years past has made
donors wary, Madden says. Donors also are better informed
about the organizations they choose to support.
"It's a trend all across the country that designated giving is up
and general giving is down," he says.
Even though the Valley lacks a culture of philanthropy and most
donors prefer to support their own projects, Madden is
encouraged at the number of people working behind the scenes
to change this mind-set.
As area nonprofits become more effective at getting results, he
says, people will be more interested in providing financial
support. And as leaders promote philanthropy as a way to make
the Valley a better place to live, more donors will emerge.
"'Never doubt that a small group of thoughtful, committed
citizens can change the world,'" says Madden, quoting Margaret
Mead. "'Indeed, it is the only thing that ever has.'"
A long-term investment
Madden says the San Joaquin River and Parkway Trust is a good
example of what Mead was talking about.
Coke Hallowell, for whom the parkway trust's center for river
studies is named, was part of the small group that developed a
vision for preserving the river in the 1980s. She and her
husband, James, are longtime supporters of the project.
"It was something that captured my imagination," Coke Hallowell
says, describing how she got involved 17 years ago. "But I didn't
know it would demand such patience."
Although getting others to support the River Parkway dream
didn't happen overnight, Hallowell says the effort was well worth
the commitment of time and money.
"It makes us feel so good to have contributed in any way," she
says. "When I see people taking canoe trips on the river or see
the faces of the children when they get off the bus at the river
center, it's such a delight."
The San Joaquin River Parkway is one successful model of what
philanthropy can accomplish, Madden says. Others include the
Fresno Metropolitan Museum and the Green V Association,
formed to raise funds for athletics at Fresno State.
"We need to focus on our jewels," says Madden. "Fresno State
and Fresno Pacific universities, the River Parkway, the museum.
Look at what's right and build it up. Fresno is a good city, but it
can be a great city if it learns to invest in itself."
The reporter can be reached at gkeeler@fresnobee.com or (559)
441-6383.