America's leading black philanthropists: giving back is one of the major tenets of the Black Enterprise Declaration of Financial Empowerment. In doing so, we advocate using money to develop our community and build wealth. On the following pages meet America's largest, and most strategic, black philanthropists.
From education to health, African Americans pump billions into charities and causes, fueling their clout and mission to change the world
PAYING IT FORWARD IS DARRYL LESTER'S PHILOSOPHY on giving back. "I am trying to get people to understand that someone invested in them to help them be where they are today. Now, they can pay something forward for someone who comes behind them," explains Lester, principal of Hindsight Consulting, a firm that mentors African American philanthropists through a grant from the Ford Foundation.
Lester practices what he preaches: He has launched giving circles Giving Circles are a form of philanthropy consisting of groups of individuals who pool their funds and other resources to donate to their communities and seek to increase their awareness and engagement in the process of giving. in Birmingham, Alabama Birmingham (pronounced [ˈbɝmɪŋˌhæm]) is the largest city in the U.S. state of Alabama and is the county seat of Jefferson County. , and the Research Triangle Park Research Triangle Park, research, business, medical, and educational complex situated in central North Carolina. It has an area of 6,900 acres (2,795 hectares) and is 8 × 2 mi (13 × 3 km) in size. Named for the triangle formed by Duke Univ. in Raleigh, Durham, and Chapel Hill, North Carolina Chapel Hill is a town in North Carolina and the home of the University of North Carolina at Chapel Hill (UNC-CH), the oldest state-supported university in the United States. As of the 2000 census, it had a population of 48,715. As of 2004 its estimated population was 52,440. .
Regardless of your financial standing, you can make charitable donations. In fact, you should make it a habit to earmark earmark
taking a piece out of the edge or center of the ear with a punch as an identification mark. The shape of the mark may be registerable under local legislation. a portion of your annual income for nonprofit organizations or charities. One of the precepts of wealth building is our Declaration of Financial Empowerment principle No. 9: to use a portion of my wealth to strengthen my community.
BLACK ENTERPRISE spent eight months compiling a list of America's leading black philanthropists. We contacted approximately 300 people from our Top 50 African Americans on Wall Street, America's Top Black Lawyers, Top 75 Most Powerful Blacks in Corporate America, and Most Powerful Blacks in Sports lists. To find those among the most generous individuals and private foundations, we sent out hundreds of surveys and pored over tax records, press materials, and other information. We also received leads from organizations such as Associated Black Charities and the Twenty-First Century Foundation (see our methodology).
The editors of BLACK ENTERPRISE recognize that philanthropy is the giving of money, time, and talent. Numerous people are giving back and leveraging their clout by serving on community boards Community Boards is a community based mediation program, established in 1976, in San Francisco, California, USA. The program utilizes volunteers from from the neighbourhoods of the city, who work with people involved in disagreements toward the end of resolving the dispute, or encouraging their companies to invest in black causes. But for the purposes of this list, we chose to focus on philanthropy in terms of actual dollars. Philanthropy is one of the true cornerstones of economic advancement. If we are to tackle the social ills of black America, then strategic giving must continue to be a big part of that prescription.
Studies show nearly 75% of charitable gifts in the U.S. come from individual benefactors. Traditionally, when people think of a philanthropist the image of a white male comes to mind. But the ranks of African American philanthropists date back to those of historical significance such as Harriet Tubman. Others include contemporary tappers and sports figures such as Chris "Ludacris" Bridges and Tiger Woods Editing of this page by unregistered or newly registered users is currently disabled. . Black philanthropists range from those of modest means, like the late laundress Oseola McCarty Oseola McCarty (March 7, 1908 - September 26, 1999) was a local washerwoman in Hattiesburg, Mississippi who became The University of Southern Mississippi’s (USM) most famous benefactor. who bequeathed a portion of her life savings to provide $150,000 in scholarships for minority students, to billionaire talk show host Oprah Winfrey “Oprah” redirects here. For the show, see The Oprah Winfrey Show.
Oprah Gail Winfrey (born January 29, 1954) is the American multiple-Emmy Award winning host of The Oprah Winfrey Show, the highest-rated talk show in television history. , who has donated more than $130 million since 2002 to fund myriad causes.
Truth be told, African Americans give more than any other group, donating 25% more of their discretionary income Discretionary Income
The amount of an individual's income available for spending after the essentials have been taken care of.
Essentials are things like food, clothing, and shelter. to charities than whites, reports the Chronicle of Philanthropy. On average, black house-holds give $1,614 to their favorite causes. In addition, many black families embrace the practice of tithing--contributing 10% of their incomes to the church.
ROOTS OF BLACK BENEVOLENCE BENEVOLENCE, duty. The doing a kind action to another, from mere good will, without any legal obligation. It is a moral duty only, and it cannot be enforced by law. A good wan is benevolent to the poor, but no law can compel him to be so.
BENEVOLENCE, English law.
From abolition and the Underground Railroad Underground Railroad, in U.S. history, loosely organized system for helping fugitive slaves escape to Canada or to areas of safety in free states. It was run by local groups of Northern abolitionists, both white and free blacks. to anti-lynching and the civil rights movement, most causes were funded covertly by black dollars. "We can begin to trace organized black philanthropy to the 18th century with the development of mutual aid societies," says Rodney Jackson Rodney K Jackson [aka R.K. Jackson] (born March 4, 1967 in Chicago, Illinois) is the publisher and founder of The People's Urban Beat Report (The PUB Report) and music producer/ keyboardist for Urban Tracks Productions. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the National Center for Black Philanthropy Inc. in Washington, D.C. "These were early efforts out of our communities to take care of social, educational, and economic needs that were not being taken care of by the general society."
Throughout the 19th century, institutionalized in·sti·tu·tion·al·ize
tr.v. in·sti·tu·tion·al·ized, in·sti·tu·tion·al·iz·ing, in·sti·tu·tion·al·iz·es
a. To make into, treat as, or give the character of an institution to.
b. black philanthropy was expressed primarily through black churches, which were among the earliest grant makers, raising funds to build schools and provide scholarships. "It was philanthropy for and by African Americans that helped establish historical black colleges and universities," adds Jackson. "Black fraternities and sororities
The terms "fraternity" and "sorority" (from the Latin words frater and soror are also a part of this heritage."
The traditions of African Americans giving to churches, social organizations, and educational institutions are very much alive today. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. data from the U.S. Department of Commerce, Chicago-based research firm Target Market News found that in 2004, African Americans made $11.4 billion in contributions. Of that amount, $7.2 billion went to churches and faith-based organizations and $4.2 billion went to charities, education, politics, and other causes.
GIVING AS PART OF A STRATEGIC PLAN
African American households no doubt are generous givers. But they tend to "give small amounts of money to various charities in cash or checks, usually in reaction to friends, relatives, and neighbors with the best sales pitch," explains Erica Hunt, president of the Twenty-First Century Foundation. "We do so much social and reactive giving that we have very little left from our discretionary income for intentional or planned giving Planned Giving is an area of fundraising that refers to several specific gift types that can be funded with cash or property. These gift vehicles are based on United States tax law. ." The New York-based foundation was created in 1971. It now raises money from black donors to support community change.
Planned giving is done in a way that maximizes financial and tax benefits for both the donor and the charity (e.g., bequests through wills, charitable trusts, and donor-advised funds), says Kharmia DeLemos Powell, a financial adviser and partner with The Barth/Wolf Wealth Management Group at Merrill Lynch's Global Private Client Group. "It also helps create community self-sufficiency by reducing the reliance many organizations have on receiving government and corporate grants, and it enables you to leave a legacy for future generations."
Lester's Birmingham Change Fund has about 22 members, many of them twentysomething engineers and corporate professionals, while the IS-member Next Generation of African American Philanthropists Fund in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures
Area, 52,586 sq mi (136,198 sq km). Pop. primarily comprises entrepreneurs in their mid- to late 30s. NGAAP completed its first grant cycle in January, awarding $11,500 to seven local grass-roots organizations. The Birmingham group
The Birmingham Group were an important school of artists, one of the last outposts of late Romanticism in the visual arts, and an important link between the last of the , which has $30,000 in funds, awarded its first grant in July. Similar in structure to investment clubs, members of giving circles pool their money, meet on a regular basis, and vote on what to do with their funds. But instead of investing in securities, they make charitable donations and sponsor grants and scholarships for institutions or individuals.
From coast to coast, giving circles have become all the rage General Public's All the Rage was released in 1984 by I.R.S. Records. Track listing
African American philanthropists typically give to educational programs with which they have direct experience or offer enrichment and scholarships to high school and college students. Black civic and professional groups, including 100 Black Men and the Links, raise funds for scholarship programs. Individuals such as Matel Dawson Jr., a retired forklift operator at Ford Motor Co., donated more than $1 million to educational institutions and charities before he died in 2002 at the age of 81.
Emerson U. Fullwood, on the other hand, is building on a family legacy of giving. He recalls how his grandfather gave land in Cedar Grove Cedar Grove can refer to: Locations
KFC Kenya Flower Council
KFC Kitchen Fresh Chicken (Kentucky Fried Chicken motto)
KFC Kung Fu Cult (Cinema)
KFC Kitchen Fixed Charge franchises, has given, raised, and generated hundreds of thousands for scholarships during his lifetime. In that same vain, Emerson Fullwood created a scholarship fund in 1995. What began as a golf outing between colleagues has grown into an annual fundraising tournament garnering sponsorship from companies such as Nike, Kodak, and Pepsi. Raising $15,000 to $20,000 per event, the Fullwood Johnson Scholarship Fund awards three to five scholarships between $1,500 and $2,000 each.
Fullwood, one of BE'S Top 75 Most Powerful African Americans in Corporate America, is a corporate vice president and executive at Xerox North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . In the last three years he has given more than $80,000 to various charitable and community organizations and educational and religious institutions. His deep conviction is to not just be a giver but also an active participant, which includes serving on the boards of the Urban League of Rochester and the Rochester United Way, where he also chairs a leadership initiative intended to increase African American participation. "I believe that supporting charitable causes that have a significant impact on the community is very important," he says.
Arts, technology, and health are other areas of concentrated black donor support. For example, St. Louis Rams
a physician who specializes in neurosurgery.
neurosurgeon A surgeon specialized in managing diseases of the brain, spine and peripheral nerves Meat & potatoes diseases Brain tumors, spinal cord disease Salary $245K + 15% bonus. Dr. Benjamin S. Carson is helping to create an endowment to provide grants to the uninsured and those with limited insurance.
Jada Pinkett Smith Jada Koren Pinkett Smith (born September 18, 1971) is an American actress and singer. She is married to actor/rapper Will Smith. Biography
Jada was born September 18 Jada Koren Pinkett in Baltimore, Maryland to Robsol Pinkett, Jr. and other celebrity alum of the Baltimore School for the Arts Baltimore School for the Arts (BSA) is a public high school located in Baltimore, Maryland and is a part of its public school system. BSFA offers concentrations in classical music, theater, dance, theater production and visual art. owe a world of gratitude to its visionary, Margaret D. Armstrong. Celebrating its 25th anniversary, BSA 1. BSA - Business Software Alliance.
2. BSA - Bidouilleurs Sans Argent. is a public city school that supplements its curriculum through its endowment and annual fund drives. Each year a graduating student receives The Margaret Armstrong Award There are several Armstrong awards, named after different people called Armstrong.
Reginald Van Lee is a patron of the arts and an avid collector. "I want others to be able to experience quality African American art African American art is a broad term describing the visual arts of the American black community. Influenced by various cultural traditions, including those of Africa, Europe and the Americas, traditional African American art forms include the range of plastic arts, from . I also want evolving and emerging artists to have a place to show their work," says the senior vice president with New York-based Booz Allen Hamilton Booz Allen Hamilton, Inc., referred to as Booz Allen is one of the oldest strategy consulting firms in the world. The firm formerly had two consulting divisions: WCB (Worldwide Commercial Business, also known as “The Commercial Side”) and WTB . Van Lee is also treasurer of the board of directors for The Studio Museum in Harlem The Studio Museum in Harlem is an American fine arts museum in the Harlem neighborhood of New York City, New York. It was founded in 1968 as the first such museum in the U.S. . Early on in his career, Van Lee helped stuff envelopes for the Dance Theatre of Harlem Dance Theatre of Harlem, the first black classical ballet company. The group was founded in Harlem, New York City, by Arthur Mitchell, then of the New York City Ballet, the first black principal dancer of a classical company of international standing. . But as his status grew, "I stepped up to writing checks to hosting events to doing fund raising to sitting on the boards of nonprofits." Today, he supports the museum and various performing arts venues through charitable donations, which add up to about 10% of his annual income.
A charitable gift can be cash; real estate; stocks; income from trust funds; and personal belongings personal belongings npl → efectos mpl personales , including artwork, jewelry, or a used car. Powell says some giving strategies depend upon what the organization has in place--for instance a charitable gift annuity A Charitable Gift Annuity is a gift vehicle that falls in the category of Planned Giving. It involves a contract between a donor and a charity, whereby the donor transfers cash or property to the charity in exchange for a partial tax deduction and a lifetime stream of annual income program--or whether it has policies for accepting non-cash gifts, such as real estate and appreciated securities. The United Negro College Fund The United Negro College Fund (UNCF) is a Fairfax, Virginia-based American philanthropic organization that fundraises college tuition money for African-American students and general scholarship funds for 39 historically black colleges and universities. is a national organization with systematic giving programs. Another is Associated Black Charities, which organizes donor funds and workplace giving through payroll deduction.
Other giving strategies include making a bequest bequest: see legacy. , leaving a stated amount of assets to a charity in your will; making the organization the beneficiary of a life insurance policy; and/or setting up a charitable trust. It is important that you work with professionals-financial, tax, and legal advisers--to help make an informed decision about what strategy is best for you, "in that it not only incorporates your values and your motivations for giving, but also so that you understand any relevant investment, tax, and estate planning Estate Planning
The overall planning of a person's wealth, including the preparation of a will and the planning of taxes after the individual's death.
Contrary to popular belief, estate planning involves much more than preparing a will, and it is not only for the considerations," adds Powell, who sits on the board of the Gift Planning Council of New Jersey and is a member of the National Center for Black Philanthropy (see sidebar for other giving strategies).
BLACK PHILANTHROPY BEARS MANY FRUITS
The new millennium has borne witness to a greater number of celebrities and professionals creating private foundations and pledging large sums to their favorite charities. It's clear that as African Americans are coming into more wealth. Their gifts are getting larger, says Emmett Carson, president and CEO of The Minneapolis Foundation. Black celebrities and private citizens are also becoming more global by associating their names and dollars with education, AIDS, and genocide in Africa.
Carson believes black donors are more closely tying their volunteerism to their charitable interests by creating donor-advised funds through community foundations. Not to mention many black churches have moved beyond the collection-plate mentality and are using sophisticated giving vehicles such as endowments.
Too many people of means don't have wills or trusts that provide support to the causes they love, says Carson, who is also chairman of the National Council on Foundations The Council on Foundations is a membership organization of more than 2,000 grant-making foundations and giving programs worldwide. They provide leadership expertise, legal services and networking opportunities and other services to participating members and the general public. , a trade association for private, community, corporate, and operating foundations. "We spend a lifetime accumulating things; we ought to spend a day trying to figure out what we want to happen to those things when we are no longer here."
Historically, the full impact of the generosity of wealthy individuals was not felt until they bequeathed their estates. "We have the first generation of truly megawealthy African Americans who are just hitting their peak earnings years," Carson says. "They have a long time before they depart this earth, but when they do, there is every expectation that they will be charitable in their estates and that we will see a new renaissance of African American giving the likes of which the world has never seen before."
Leading Foundations & Charities NAME(S) Occupation ORGANIZATION(S) Oprah Winfrey TV Talk show host The Oprah Winfrey Foundation; Oprah's Angel Network; Oprah Winfrey Operating Foundation Eileen Harris Executive Peter Norton Family Norton Foundation Inc. Tom Joyner Radio talk show host Tom Joyner Foundation Inc. David & Valerie Former NBA player/ The David Robinson Robinson philanthropist Foundation Tiger Woods Professional golfer The Tiger Woods Foundation Sean "P. Diddy" Hip-hop artist, actor Daddy's House Social Combs Programs Inc. Rachel Robinson Philanthropist The Jackie Robinson Foundation Eddie & Sylvia Money manager/ The Eddie C. & C. Sylvia Brown philanthropists Brown Family Foundation Alonzo Mourning NBA player Alonzo Mourning Charities Inc.; Zo's Fund for Life Earvin "Magic" Former NBA player/ The Magic Johnson Johnson philanthropist Foundation Ben & Candy Pediatric neurosurgeon/ Carson Scholars Fund Carson philanthropist Russell Simmons Recording executive/ Rush Philanthropic Arts philanthropist Foundation Charles Barkley Former NBA player The Charles Barkley Foundation Hank & Billye Former MLB player/ Hank Aaron Chasing the Aaron philanthropist Dream Foundation William & Actor/philanthropist William Henry Cosby Jr. Camille Cosby and Camille Olivia Cosby Foundation; Hello Friend/Ennis William Cosby Foundation Marshall Faulk NFL player Marshall Faulk Foundation Chris "Ludacris" Hip-hop artist, actor The Ludacris Foundation Bridges Montel Williams TV Talk show host The Montel Williams MS Foundation Warrick Dunn NFL player Warrick Dunn Foundation Inc. Alphonse Fletcher Money manager The Fletcher Foundation NAME(S) CAUSES 2003 GIFTS Oprah Winfrey Education, the arts, $10,537,131 public health, women Eileen Harris The arts, education, 4,595,260 Norton community health Tom Joyner HBCUs 3,064,119 David & Valerie Education, 1,727,629 Robinson feeding the hungry Tiger Woods Education, sports 1,519,099 Sean "P. Diddy" Youth, education 1,333,333 Combs Rachel Robinson Education 1,220,104 Eddie & Sylvia Education 1,142,493 Brown Alonzo Mourning Underprivileged 1,015,864 children; Kidney disorder research Earvin "Magic" Health, urban 430,206 Johnson education Ben & Candy Youth, education 518,351 Carson Russell Simmons Art, education, 388,798 youth Charles Barkley Education 319,200 Hank & Billye Education, youth, 220,362 Aaron William & Education, dyslexia 215,500 Camille Cosby awareness Marshall Faulk Inner-city youth/ 133,027 children Chris "Ludacris" Abused/homeless 121,830 Bridges children Montel Williams Multiple Sclerosis 120,000 research Warrick Dunn Single-mother 108,091 families Alphonse Fletcher Art, youth 101,450 SOURCE: B.E. RESEARCH Leading Individual Donors NAME(S) TITLE Oprah Winfrey TV Talk show host, The Oprah Winfrey Show Sheila C. Johnson Partner, Lincoln Holdings John H. Johnson Publisher, Ebony magazine Robert L. Johnson Founder, BET Carl & Mary Ware Philanthropists Dennis W. Archer Chairman, Dickinson Wright P.L.L.C. Edward A. Blackmon Attorney, Blackmon & Blackmon Eunice Walker Johnson Secretary-Treasurer, Producer-Director, Ebony Fashion Fair Willie Gary Attorney, Gary, Willliams, Parenti, Finney, Lewis, McManus, Watson & Sperando Bishop William A. Hilliard Retired bishop Calvin & Tina Tyler Jr. Philanthropists Eddie & Sylvia Brown Investment manager, Brown Capital Management Jalen Rose NBA player/Founder, Jalen Rose Foundation Jonas T. Kennedy Owner, Kennedy Turkey Farms Louise Tarver Jackson Former teacher, alumni NAME(S) RECIPIENT(s) Oprah Winfrey The Oprah Winfrey Foundation, The Oprah Winfrey Operating Foundation Sheila C. Johnson Parsons School of Design, Jamestown-Yorktown Foundation John H. Johnson Howard University Robert L. Johnson National Underground Railroad Freedom Center Carl & Mary Ware Clark Atlanta University Dennis W. Archer Wayne State University, Dennis W. Archer Community Development Fund, et al Edward A. Blackmon Tougaloo College Eunice Walker Johnson Talladega College Willie Gary Shaw University, Florida Atlantic University Foundation, Edward Waters College, Gertrude Walden Day Care, Virginia University Lynchburg, Alonzo Mourning Charities, et al Bishop William A. Hilliard Livingstone College Calvin & Tina Tyler Jr. Morgan State University Eddie & Sylvia Brown Howard University, African American Museum of History & Culture Jalen Rose Detroit College Scholarships, Assist Donations, Celebrity Charity Weekend, Chicago Children's Fund Jonas T. Kennedy Claflin University, Africa University Louise Tarver Jackson Paine College NAME(S) AMOUNT YEAR(s) Oprah Winfrey $132,580,000 2002-2004 Sheila C. Johnson 7,350,000 2003-2004 John H. Johnson 4,000,000 2003 Robert L. Johnson 3,000,000 2002-2004 Carl & Mary Ware 1,500,000 2004 Dennis W. Archer 1,217,665 2002-2004 Edward A. Blackmon 1,149,300 2003 Eunice Walker Johnson 1,000,000 2003 Willie Gary 950,000 2002-2004 Bishop William A. Hilliard 500,000 2003 Calvin & Tina Tyler Jr. 500,000 2004 Eddie & Sylvia Brown 400,000 2003 Jalen Rose 261,200 2003 Jonas T. Kennedy 254,000 2003 Louise Tarver Jackson 250,000 2003
Making The Cut The methodology behind our selection process
Emmett Carson, president of The Minneapolis Foundation, described it best: "Philanthropy is the giving of money, time, talent, or goods." And we agree with him. For the purposes of this article, however, we chose to focus on philanthropy in terms of dollar amount. Our staff spent the last eight months in search of philanthropists from within our community. Some prospective candidates, however, didn't want to reveal their charitable giving. Others had made pledges but not actual donations. Here's how these philanthropists made the cut for our inaugural list:
For our list of individual philanthropists, we reached out to more than 300 entrepreneurs, professionals, executives, and lawyers who appeared on our top lists: Top 50 African Americans on Wall Street, America's Top Black Lawyers, Top 75 Most Powerful Blacks in Corporate America, and the Most Powerful Blacks in Sports. We then reached out to a number of well-known black philanthropists. Each candidate received a survey that requested information about donations from fiscal year 2002 to 2004 because, unlike foundations, individuals do not necessarily give every year. We followed up by directly contacting every individual who received a survey.
On our survey, we asked each participant to provide their top five pledges made to charities--including faith-based organizations, foundations, and colleges and universities. We then asked each participant to list the top five donations made to charities. For the purposes of this article, we chose to rank individuals only according to donations--actual money paid. Many candidates, naturally, chose not to complete the survey because of fear of publicity and/or unwanted solicitation for money. In cases where donations had been reported in the past, we confirmed dollar amounts, the date of the gift, and the type of gift with either the philanthropist or a senior-level executive at the organization receiving the gift. The minimum donation for individuals considered for this list was $250,000.
Charities & Foundations
We collected financial information from Internal Revenue Service 990 forms provided by GuideStar, a national nonprofit database company. Qualifying foundations and charities must file a 990 each year by the 15th day of the fifth month after the end of their fiscal year. Each non-profit has a different fiscal year-end Fiscal Year-End
The completion of a one-year, or 12-month, accounting period.
The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. date, therefore filing dates for the 990 vary. The most complete forms report donations from 2003. In addition, not all foundations are required to file a 990. We did not include those organizations. We also did not include foundations that do not donate money.
Because foundations devote a large portion of their grant money to operating costs operating costs npl → gastos mpl operacionales , they often give less than individuals. On our list, we only identified donations--actual money paid to organizations, charities, and causes--and excluded administrative costs administrative costs,
n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . The minimum donation for charities and foundations to be considered for this list was $100,000.
Seven Ways to Give to Your Favorite Causes
Many of today's philanthropists are everyday citizens attempting to give money to worthy causes. Philanthropic efforts can be a random act of kindness This article or section may contain original research or unverified claims.
Please help Wikipedia by adding references. See the for details.
This article has been tagged since September 2007. such as giving loose change to a homeless person An individual who lacks housing, including one whose primary residence during the night is a supervised public or private facility that provides temporary living accommodations; an individual who is a resident in transitional housing; or an individual who has as a primary residence a , or something as sophisticated as setting up a trust or foundation, complete with a board of trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. and an executive director. There are options, and each with its own tax implication. For this reason, we offer you seven ways of giving. You don't have to be rich and famous to set up a foundation, just willing to give to charitable causes that you believe are worth keeping around. In addition to working with your financial planner Financial Planner
A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. to develop your philanthropic strategies, explains Dwight Raiford, a financial planner for nearly 30 years, it is important to consult with a tax adviser.--C.M.B.
1 Make Annual Gifts to an Established Charity This contribution can be to a church, an educational institution, a fraternity or sorority sorority: see fraternity. , or other nonprofit organization. Make sure that the organization has a 501(c) 3 legal status. This means you can claim the appropriate federal tax deduction Tax deduction
An expense that a taxpayer is allowed to deduct from taxable income.
See deduction. , up to 50% of your adjusted gross income for the year for cash and 30% for stock or property. Understand that tax-exempt means the organization doesn't have to pay taxes and tax deductible means you can write off your contribution.
2 Create a Trust. A Charitable Remainder Trust charitable remainder trust (Charitable Remainder Irrevocable Unitrust) n. a form of trust in which the donor (trustor or settlor) places substantial funds or assets into an irrevocable trust (a trust in which the basic terms cannot be changed or the gift withdrawn) allows you to take a charitable deduction for your gift in the year in which the trust is formed. You then receive income from the trust for life, after which the assets pass to a philanthropic fund or charity that you designate. A Charitable Lead Trust Charitable Lead Trust
A trust designed to reduce beneficiaries' taxable income by first donating a portion of the trust's income to charities and then, after a specified period of time, transferring the remainder of the trust to the beneficiaries. fund provides for a regular, fixed amount to be paid to a fund or charities of your choosing for a specific number of years, after which, the remainder of the trust passes to your designated heirs or other beneficiaries.
3 Establish a Giving Circle. Find like-minded people with whom you can pool funds and then distribute the income and/or principal in the form of grants. Members may chip in anywhere from $100 to $2,500 or more, The funds may be held at a public foundation or at some other nonprofit or commercial entity that will invest the funds to earn income. This setup also saves individual donors the cost of setting up their own private foundations.
4 Create a Family or Private Foundation, This allows your family to retain control and flexibility in its giving to specific organizations. The foundation can be organized as a nonprofit or charitable trust. The tax benefit is that you can deduct up to 30% of your annual adjusted gross income for cash donations and 20% for gifts of stock or property. By law, private foundations must pay out in annual grant funds totaling 5% of their assets and 1% to 2% excise tax Excise Tax
1. An indirect tax charged on the sale of a particular good.
2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS.
1. on net investment income.
5 Develop a Corporate Giving Program. Many companies have an annual giving Annual giving is one of the most important areas in an organization’s fundraising efforts. Annual giving consists of many separate solicitation vehicles. When these vehicles are assembled together with skill, they can form the foundation of the institution’s program to make grants (funded as part of their annual operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements
budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. ) and to match employees' cash gifts and volunteer time to nonprofits. Companies often make in-kind gifts of products to charities. Tax deduction is 10% of pretax profits. If you have a family-owned business, you can establish a giving program or corporate foundation, which usually starts with a single donation that can become an endowment. The owners are usually the governing board Noun 1. governing board - a board that manages the affairs of an institution
board - a committee having supervisory powers; "the board has seven members" , and the foundation is subject to the excise tax and minimum payout requirement.
6 Develop a Donor-Advised Fund Through a Public Charity. Donor funds allow you to make simple tax-deductible contributions, These funds are set up through a public foundation and are considered an alternative to establishing a private foundation since there are no fees or complex paperwork. You can designate one or more charities to benefit from your donation, The financial decision on grant distributions rests with the board of trustees of the community foundation managing your tax-exempt donor funds.
7 Establish a Supporting Organization. This entity lies between a private foundation and a donor-advised fund. Essentially, your organization supports and funds a public charity with a mission compatible with your values. Family members can sit on the governing board and participate in the grant-making decisions. There is no excise tax or payout requirement as with a private foundation.
Before you give to a nonprofit organization, make sure it is registered with the proper state or local government office. To learn more, check out these resources:
Associated Black Charities; www.abc-md.org Council of Better Business Bureaus; 703-276-0100 Council on Foundations; 888-239-5221 National Committee on Planned Giving; www.ncpg.org National Center for Family Philanthropy; 202-293-3424 The Giving Forum; 202-467-0383; www.givingforum.org The Foundation Center; www.fdncenter.org The National Black United Fund; www.nbuf.org
TOM JOYNER Thomas "Tom" Joyner (born November 23, 1949) is an American radio host. His daily program, The Tom Joyner Morning Show, is syndicated across the United States and heard by over ten million radio listeners. He is married to fitness guru Donna Richardson. A Passion for Education
Tom Joyner is passionate about making sure students attending historically black colleges and universities Historically black colleges and universities (HBCUs) are institutions of higher education in the United States that were established before 1964 with the intention of serving the African American community. They are often liberal arts colleges or universities. actually graduate--and he puts his money where his fervor is. In fact, the host of the nationally syndicated Tom Joyner Morning Show and founder of REACH Media Inc. may well be best remembered for his philanthropic work through the Tom Joyner Foundation.
The foundation's mission is to help students with financial problems. Each month, the foundation sends support money to a designated HBCU HBCU Historically Black Colleges and Universities , which the schools' financial aid department will award to individual students based on financial need.
Since its inception in 1997, the foundation has raised and distributed more than $20 million in scholarships. It recently donated $205,000 to Huston-Tillotson College in Austin, Texas, and $155,000 to Prairie View Prairie View may refer to:
LeMoyne-Owen College was formed through the 1968 merger of LeMoyne College and Owen College, both private, historically black church-related colleges. , $600,000 to North Carolina Central University History
NCCU was chartered in 1909 and opened in 1910 as the National Religious Training School and Chautauqua under the leadership of President James E. Shepard. , and $400,000 to Virginia State University Virginia State University, at Petersburg; land-grant and state supported; coeducational; chartered 1882 as a normal and collegiate institute, opened 1883, became a normal and industrial institute in 1902. . In 2003, the foundation donated a little more than $3 million, enough to make it one of America's leading philanthropic organizations. Various corporations, such as ExxonMobil, Anheuser-Busch, Allstate, Kraft Foods Kraft Foods Inc. (NYSE: KFT) is the largest food and beverage company headquartered in North America and the second largest in the world after Nestlé SA.
The Philip Morris Company (now known as Altria Group), a company that produces tobacco products, acquired Kraft for , and Daimler Chrysler, have partnered with Joyner. Over the last five years, for example, ExxonMobil and Anheuser-Busch have each donated $1 million.
"A majority of the scholarships don't go to 4.0 or 3.0 students," explains Thomas Joyner Jr., 31, the eldest son of Joyner and the foundations' president and chief executive officer. "A lot of the scholarships go to students with 2.0 and 3.0 GPA GPA
grade point average
Noun 1. GPA - a measure of a student's academic achievement at a college or university; calculated by dividing the total number of grade points received by the total number attempted and within 30 credits of graduation. As my pop would say, 'we're looking out for the C students.'"
SHEILA C. JOHNSON A Rich Tradition of Giving
Little is known about Sheila C. Johnson, other than that she is the former wife of BET founder Robert L. Johnson Robert L. Johnson (born April 8, 1946) is an American businessman and the founder of Black Entertainment Television (BET), and was its chairman and chief executive officer. . But for many people within the world of philanthropy, Johnson is a well-established benefactor who provided a variety of philanthropic gifts in the areas of arts, education, and services for children and young adults.
"I was in charge of all of the philanthropic ventures that BET was involved in. I was the one who made all of those decisions. So as BET went into Viacom and I was out on my own, [being a philanthropist] was always a part of me."
Today, Johnson, 56, now resides in Middleburg, Virginia Middleburg is a town in Loudoun County, Virginia, United States. There are approximately 640 people currently residing in the town established in 1787 by Revolutionary War Lieutenant Colonel and Virginia statesman, Levin Powell. He purchased the land for Middleburg at $2. . She's using her business skills to build Salamander salamander, an amphibian of the order Urodela, or Caudata. Salamanders have tails and small, weak limbs; superficially they resemble the unrelated lizards (which are reptiles), but they are easily distinguished by their lack of scales and claws, and by their moist, Hospitality and to expand the Washington International Horse Show. She recently made history as the first black woman to be an owner in three professional sports The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. franchises (see Newspoints, this issue).
But none of this trumps Johnson's philanthropic endeavors. She has contributed $7 million to New York's Parsons School of Design; $2 million to the United Negro College Fund; $1 million to Bennett College Oprah Winfrey and Maya Angelou have recently offered public support to Bennett College. History
Bennett's founding and coeducational years
Bennett College was founded by Albion Tourgee an activist in the second half of the 19th century who championed the cause of for Women; and $7 million to build a performing arts center A performing arts center, often abbreviated PAC, is a multi-use performance space that can be adapted for use by various types of the performing arts, including dance, music and theatre. at the Hill School, where her son attends grade school in Middleburg. And while these are her larger philanthropic contributions, she says that she has made smaller contributions such as giving $50,000 to the local community children's choir. In 2004, Johnson and Microsoft joined together to donate $1 million to help the International Centre for Missing & Exploited Children launch a global campaign against child pornography Child pornography is the visual representation of minors under the age of 18 engaged in sexual activity or the visual representation of minors engaging in lewd or erotic behavior designed to arouse the viewer's sexual interest. .
So what does Johnson find challenging about being one of America's top black philanthropists? "Being able to say no," she says. "There are so many people, and once you start to give to an organization, the network passes on and then everybody and their brother has their hand out."
EDDIE EDDIE Environmental Data Dynamic Information Exchange (Rocky Flats Environmental Technology Site, Colorado) & SYLVIA BROWN The Power of Service
Eddie C. Brown, president of Brown Capital Management Inc. (No. 4 on the 2005 BE ASSET MANAGERS list with $5.2 billion under management), is a prominent businessman in Baltimore. He's also one of the most renowned stock pickers in the world. His firm has amassed its billions mainly from large institutional clients and pension funds. The 64-year-old asset manager has also earned a reputation as a "good citizen." He and his wife, Sylvia, have given more than $15 million to various educational and charitable causes, including $1 million to the Enoch Pratt Library in Baltimore and $6 million to the Maryland Institute College of Art Maryland Institute College of Art (MICA) is an art university in Baltimore, Maryland. It was founded in 1826, making it the oldest accredited art college in the United States. for the Brown Center.
The benevolent couple started the Eddie C. & C. Sylvia Brown Family Foundation back in 1994 with about $200,000. Their two daughters, Tonya Ingersol, who is president, and Jennifer Brown, who serves as vice president, run the foundation. The siblings sit on the five-member board of directors while their parents serve on the grant-making committee.
Brown explains that their main motivation "was to have our daughters think beyond themselves ... about others in the African American community who were less fortunate, and to have a vehicle to be able to channel monies to causes they were passionate about." The Browns chose a charter foundation instead of a charitable remainder trust or other after-death estate vehicles primarily because they wanted to see the results of their giving during their lifetime.
"The biggest problem is not being able to give to more groups. And then there's the frustration of not being able to give more money," says Sylvia, noting that hundreds of requests are screened and narrowed down to roughly 35 for consideration. She holds dear a quote from the late Shirley Chisholm Shirley Anita St. Hill Chisholm (November 30, 1924 – January 1, 2005) was an American politician, educator and author. She was a Congresswoman, representing New York's 12th District for seven terms from 1968 to 1983. , "that service is the rent we pay for our space on this Earth."--Carolyn M. Brown
CHRIS "LUDACRIS" BRIDGES A Good Rap on Charities
People love rapper Chris "Ludacris" Bridges for his hits. such as Get Back and Stand Up. What they may not realize is that Bridges' love for rap is only the tip of the iceberg tip of the iceberg
n. pl. tips of the iceberg
A small evident part or aspect of something largely hidden: afraid that these few reported cases of the disease might only be the tip of the iceberg. . As a young DJ for Atlanta's Hot 97.5. he began to take part in local community service projects. When Bridges noticed black children in his neighborhood without a sense of direction, he decided to concentrate on youth development. In December 2001, Bridges began The Ludacris Foundation (www.theludacrisfoundation.org) with partners William Engram en·gram
A physical alteration thought to occur in living neural tissue in response to stimuli, posited as an explanation for memory. Also called neurogram. and Chaka Zulu. "I wanted to give back. I wanted to help my community." says Bridges. The foundation's mission statement is "Helping youth help themselves."
To date, the organization--run by his mother, Roberta Shields-has donated more than $500.000 to nonprofit organizations, focusing on educational programs for music and the arts. The foundation also targets the needs of abused, neglected, or homeless children and supports I'ndigo, an organization that awards two annual four-year scholarships of $10,000 to high school seniors.
Bridges does not just shell out cash and walk away. He takes a vested interest Vested Interest
A financial or personal stake one entity has in an asset, security, or transaction.
For example, if you have a mortgage, your bank has a vested interest on the sale of your house.
See also: Right in every recipient of his foundation's grants and scholarships. "My most memorable moment would have to be the time that I took this girl to her prom," says Bridges, who made headlines when he escorted a wheelchair-bound teen living with cerebral palsy cerebral palsy (sərē`brəl pôl`zē), disability caused by brain damage before or during birth or in the first years, resulting in a loss of voluntary muscular control and coordination. to the prom. For his tireless efforts, Bridges received the key to the city of Atlanta and a declaration proclaiming June 7 as Ludacris Foundation Day. Bridges is determined to make an impact in the lives of young people who have no hope or opportunity. "The youth are our future," he says.