huridocs-tech Fundraising via the WWW

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DATE=4/25/2000
TYPE=ENGLISH PROGRAMS FEATURE
TITLE=PHILANTHROPY AND INTERNET MONEY
NUMBER=7-33642
BYLINE=MAX RUSTON
DATELINE=WASHINGTON
EDITOR=SWANEY
TELEPHONE=415 876-2230

INTRO:   The practice of charitable giving, or philanthropy,
in the United States is changing.  It is doing so along with
the flow of billions of dollars into the pockets of
relatively young technology entrepreneurs. Not only do these
individuals have more money, than traditional
philanthropists; they also have different goals and
objectives in their giving.  From San Francisco, V-O-A's
technology correspondent Max Ruston reports on the impact
these changes are having. TEXT: Fundraisers know the money
is there but they are not certain how best to get at it.
Tens of billions of dollars are now concentrated in a new
class of wealthy, young entrepreneurs who have profited from
the technology boom. Les White is president of United Way of
Silicon Valley, a fundraising leader in California.

 TAPE:   CUT ONE  White (00:14)

   "There are allegedly 64 new millionaires created every
   day in the Silicon Valley. Well, I can assure that giving
   to charity is not the first thing on their minds." TEXT:
   According to Mr. White, fundraising once took place in a
   carefree, non-competitive environment.  It is now highly
   competitive and closely tied to the technology that is
   the foundation of many new fortunes.  The tools used for
   soliciting money have also changed. Personal contact is
   often replaced by email and World Wide Web sites. One of
   the most successful and competitive fundraising
   organizations in the area is the Community Foundation of
   Silicon Valley, headed by Peter Hero.

 TAPE:   CUT TWO  Hero (00:36)

   "We are making significantly more effort to attract and
   engage these young entrepreneurs in their 20s and 30s and
   40s who have made a great deal of money through
   entrepreneurship and we have been engaging them through
   the process of researching their charitable attitudes,
   motivations and behavior of this new young wealth in
   Silicon Valley, finding out what motivates them, what
   kind of things they give to, designing projects that they
   find interesting and which serve the community."

TEXT:     There are notable success stories.  The new rich
in the technology sector have given hundreds of millions of
dollars to educational institutions.  Some are also giving
their time and expertise to help raise money.  Mr. Hero:

 TAPE:   (optional) CUT THREE  Hero (00:18)

   "These people want to be engaged in their philanthropy.
   They want to know who the leaders are of the charitable
   projects they are funding, how they are going to measure
   results, how they can be involved personally. These are
   not people simply sending their money off to some
   well-known charity in the hope that it will be used
   wisely."

TEXT: Forty-one year old Steve Belomy found himself with
millions of dollars after the technology firm he worked for
went public.  Although he has no background in charity work,
Mr. Belomy decided late last year to take a year off and
devote himself to giving.  He is now volunteering full-time
as a fund-raiser at a small non-profit organization
dedicated to homeless people. This is part of an overall
trend of increased involvement among money-givers, led in
part by Microsoft founder Bill Gates, who has created the
richest foundation in the world.  Trevor Nielson is director
of public affairs for the Gates Foundation.

 TAPE:   CUT FOUR  Nielson (00:10)

   "Most of the other large foundations in the world were
   created with old money and their benefactors are long
   since gone.  So one tremendous asset we have is Bill's
   involvement.  He cares passionately about these issues."

TEXT: The Gates Foundation has assets of about 20 billion
dollars.  Its grants so far include projects covering global
vaccinations and literacy. For the thousands of existing
foundations that survive on tighter budgets, the Gates
Foundation is little help.  Instead, smaller foundations
must search for new methods and strategies for raising
money. The Entrepreneurs Foundation, based in California, is
doing just that.  The foundation's director, Patty Burness,
is pursuing a strategy she calls "start-up philanthropy."

TAPE: CUT FIVE  Burness (00:20)

   "We target high-tech startups, help them develop a
   culture that is oriented towards communities so it is an
   integral part of their business as they become bigger and
   more successful.  And to implement that with the
   companies we ask them to give us a small equity stake in
   the company." TEXT: This has proven a smart strategy,
   with the rapid increase in the valuation of many
   technology companies. Ms. Burness says the foundation was
   started by an entrepreneur and was established
   specifically to tap the resources in Silicon Valley.  She
   says it does not only seek money, but also searches out
   leaders who will ensure the success of charitable
   ventures.  The people who give money through the
   Entrepreneurs Foundation, she says, view it as an
   investment and want to see tangible returns for the
   community.  (Signed)

   NEB/SF/MPR/vo'hs



25-Apr-2000 08:51 AM EDT (25-Apr-2000 1251 UTC) NNNN

Source: Voice of America ..



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