1 24 294 https://digitalcollections.library.gvsu.edu/files/original/4b7b631c511eeb2032248d5f0498f011.pdf 58871506ff384009487f70b9f14c3221 PDF Text Text ,. PEP PER, HAM I L TON 2\, S C H r::: ET Z A TTO R NEYS A T LA W ....A MES .. . MOO R E .JOH N B . HU F" F"~ K ER AON A t 0 M . OI E TRIC H H . L A W R E N CE F-"CX R ICHAR D M . R I I"4D L E.R ALL EN K . H AL P E RI N ER NE ST Q . W I L,SON P E"'i'E R C . W I L Ll AM ~ 12 3 SO UT H B RO AD S TREET / 776 F STREET , N . W . 4 WASH/N GTON , D. C. PHl LAD ELP H IA , F A . 19 10 9 (2 15 ) 545 -1234 20006 S U ITE 40 0 10 SO U 1'H M Ail " ET SC; L; A Rt: . HA R R I S B U R G , PA . 17 10 8 (71 7) 23 3 - e 4 8 3 ( 2 0 2) 46 7-6 5 00 BARB A RA ~ . W A S H S URN DRAFT S. 2475, A BILL TO A11E ND THE INTERNAL REVENUE CODE OF 1954 TO r-10DIFY 7 H:G CHARITAB LE DIS TRIBUTION REQUIREME NTS I MP OSED UPON P RIV ATE FOUNDATIONS (TE L ~n NH1U M DI STRIB UTI ON RULE OF SECTION 49 42) Written Statement and Oral Testimony Presented to The Senate Cummitt e e on Finance on Thursday, April 8, 1976 By the Ad Hoc Cor.unittee on Famil y Found ations: The HOITilel Foundat ion The Kellogg Found ation The Kresge Foundation The Lilly Endo~nent, Inc. The Mac lellan Foundation The Pew Memori a l Trust The Jo s eph B. Wh itehea d Foundation PLEASE REPLY TO WASH IN GTON O FFICE �- 15 ( " A staff established to p:::-occss applications for $1,500,000 will be inadequate for $2,100,000; likewise, the expectations of charity built on"a year when $2,100,000 not be met when a lower year follows. lS distributed will One of the frequent challenges to the foundation is to engage in new and innovative activities. This means fuller exploration of the nontraditional applications and probably grant. a longer time between application and At any rate, the fluctuating minimums -- particularly at an unrealistic level -- will obviously be counter-productive to any d esize to get into fields requiring greater attention per application. This serves to prevent foundation managers from being efficient and frustrates the objectives of foundation grants. The final member of our panel presenting testimony is Drc Russell Mawby, Creek. Mi ch i g a n . President of the Kellogg Foundation, Battle �- 16 I amR u s s e l lG . M awby , P r e s i d e n to fTh eK e l l o g g F o u n d a t i o n , ·B a t t l eC r e e k , M i c h i g a n . Ii n t e n dt oi l l u s t r a t ea n ds umm a r i z e t h ec o n c l u s i o n so ft h i sg r o u p . F o rt h i sp u r p o s e , Iw i l lu s e t h ee x p e r i e n c eo ft h eK e l l o g g F o u n d a t i o ns i n c ei t i si l l u s t r a t i v eo ft h eg r o u po ff o u n d a t i o n ss u b s c r i b i n gt ot h i ss t a t em e n t . I t sf o u n d e rr e a l i z e da t o t a lt a xb e n e f i t( i n c om e ,g i f ta n d e s t a t e )o fa p p r o x im a t e l y$ 5 0 0 , 0 0 0o ng i f t sw h i c ht o d a yh a v ea t o t a lf a i rm a r k e t.v a l u eo fa p p r o x im a t e l y$ 5 9 0m i l l i o n . Th e t o t a lo ft h e s ea s s e t sa r em a i n t a i ne do nb e h a l fo ft h eF o u n d a t i o ni nw h a tm ay b es a i dt ob eD IO s e p a rR t ep o r t f o l i o s ,w h i c h Is h a l lr e f e rt oa s "K e l l o g g "a n d "D i v e r s i f i e d .11- KE ' l l o g g c o n .s i s t se n t i r e l yo fK e l l o g g - Comp any s t o c x'1 ,"1t ha v a l ue o f $543 m i l l i o n . D i v e r s i f i e dc o n s i s t so fs t o c k s , _b o n d sa n do t her in ter e s t b e a r i n go b l i g a t i o n sa n dp a sa na p p r o xim a t ev a l u eo f$ 4 8m i llion . K e l l o g gh a sc o n s i s t . e n t l you t .v -p erf 'oxm ed D i v e r s i f i e dw hi . chw as e s t a b l i s h e dt om e a s u r e t h ef r u i t so fd i v e r s i f i c a t i o n . Ap r i n c i pQ lc o n t e n t i o nr e f l e c t e di nt h eP e t e r s o n R ep o r t w a s t h a tt h ep o r t f o l i o so fp r i v a t e o ndt ~ on h a dn o tp r o d u c e d t h er a t eo fr e t u r nwhic hi t v i a st h o u g h tt oha v eb e e nprod uced b ym u t u a l f u n d s . By a n ym e a s u r e o fr e t u r n ,t h eg r o up h a so u t - .p r o d u c e dm u t u a l f u n d sf o r · t h ep e r i o dcovered b yt h eP e t e r s o n �- ~"I - R e p o r ta n dh a sc o n t i n u e dt odo s os i n c e . F o re x am p l e ,I nt h e l a s ts i xy e a r st h eK e l l o g gF o u n d a t i o n ' si n c om e , e ~ o ft h e ' F o u n d a t i o nT r u s t ' sh o l d i n g si nt h eK e l l o g g Comp any , ha sc o n t i n u e d t ob es u b s t a n t i a l l yg r e a t e rt h a ni t w o u l d h a v eb ee n ha di t sn b e e nd e r i v e de n t i r e l y w a s ~ p e r c e n tf o r o~ d i v e r s i f i e d n o~e n e t~ent . r e c e i v e df r omt ~ o~e Th ei n c r e a s e K e l l o g g h o l d i n g s a sc o n p a r e dt oa ni n c r e a s eo f4 . 7p e r c e n to nt h eF o u n d a t i o n ' s d i v e r s i f i e dp o r t f o l i o . I ti so u ro p i n i o nt h a tt h es a l eo f K e l l o g ga n dt h ed i v e r s i f i c a t i o no ff u n d sw o u l d r e s u J ti na g r e a t e rh a n d i c a pt om e e t i n g t h ep a y o u t e e~ ent o ft h eT ax R e fo rm Act ,o f. 1969a n dr e s u l ti na l ow e rr e t u r nt oc h a r i t yo v e r t h ey e a r s . N o to n l yw a s t h eP e t e r s o nR e p o r ti n c o r r e c t p e r f o r m an ce ,b u t ~ p r e@ i s eo fa ~ ~ re g ard t o p a y o u tb e i n gg o o d.fo r c h a r it yi sw ro n c , E 'o re x am p l e ,h a dt h emi .ni . rn um di . . st J i bl l t : i o n r u l eb e e ni ne f f e c t ,a t6 p e r c e n t ,f r om1934 whe nt h eFo n~ t n t h e c o n t a i n e d2 2 1 , 0 0 0s h a r e so o ~ n , f a i rm a r k e t v a l u e .$ 3 / , 5 7 0 , 0 0 0I t h ef o 1 1m ' l i n gw o u l dh a v eo cc u z e de (1 ) F rom S e p t em b e r1 ,1 9 3 4 ,t h r o u g hAug u st 3 1 , 1972 , t h eF o u n d a t i o nm ad e a na c t u a ld i s tL i b u t i o no f$ 2 0 3 , 0 9 2 , 1 9 6a n d i f t h em in imum d i s t r i b u t i o nr u l eh a db e e na p p l i c a b l e ,d i s t r i b u t i o n so f$ 2 4 2 , 7 0 6 , 8 1 1 o~ a ni n c r e a s eo f$ 3 9 , 6 1 4 , 6 1 5 )w o u l d h a v e b e e nm ad e ; (2 ) Th eF o u n d a t i o nw o u l dh a v eh a dt os e l lt h ee q u i v a l e n to f8 , 8 1 3 , 9 2 8s h a r e sw i . t .h.«ma r k et ;v a l u eo f $214 ,8 : :>9 ,495" h u s , 't h eP o u n d a t i o n ' s ' h o l d i n gw o u l d h a v eb e e nr e d u c e dt o . and ,t �-18 am a i k c tv a l u eo f$ 2 2 6 ,OG l , 3 5 5 ; a n d (3 ) Th eh i g h e r~et n t oc h a r i t yo f$ 3 9 , 6 1 4 , 6 1 5 wou ld h a v ec o s t$ 2 1 4 . 8m i l l i o n t h e r e b yr e d u c i n gt h ec u r r e n ts i z e o ft h eP o u n d a t i o n by l~o t 5 0p e r c e n ta n di n1973 t h ed i s t r i b u - t i o nu n d e rt h er e d u c e da s s e t sw ou ld b e$ 1 0 , 0 16 , 2 5 7r a t h e rt h a n $ 1 9 , 5 3 5 , 3 9 9w h i c h i t w i l ld i s t r i b u t e . A f t e rt h r e ey e a r st h e r eh a sb e e nt im et oe x am i n e how s e c t i o n4942 w i l lo p e r a t et ou n d e rD i n eo v e r a l lf o u n d a t i o ng r a n t s a n dt h e r eh a sb e e nt h eo p p o r t u n i t yt of u r t h e re x aM i n et h e t i o n so ft h eP e t e r s o nR e p o r t . s u b s cY i b i n gt ot h i s t te~ent ~ F o rt h i sp u r p o se ,t h ef o u n d a t i o n s h a v eh a ca ni n d e pe n d e n ts t u d y p r e p a r e dby D r . t to rm anB . T u r e . ·Th ef i n d i n g sa n dc o n c l u s i o n : ;o f t h a tr e p o r t ,a sb r i e f l ysu rmnar i . z e di ni t sow nJ cmgu2 . g e ,a . r e: " F i r s t ,a n ym in iEmn d i s t r i b u t i o nr u l ew h i c h i g n o r e st h ef o u n d a t i o n ' s ra te o fr e t u r nw i l l h a v ea h ig h l yd i f f e r e n t i a l ,d isc rim in at o r y a n dp o s s i b l y ~ o in p a c t on f o u n d a t i o n s a n d on t h e i rl o n g t e r nc a p a c i t yt os u p p o r t c h a r i t i e s . S e c o n d ,t h ec o n t e n t i o ntha tt h ei n v e s t s e n t p e r f o rm a n c eo f t~ nd t on i sre la ti v e ly p o o r i sb a s e d on i n a d e q u a t ei n f o rma ti o nan d in a p p r o p r i a t es t a t i s t i c a l~ e e t h er e c o r d s o ff o u n d a t i o n sfo rw h i c hd a t aw a s a v a i l a ble i nt h ep r e p a r a t i o no ft h i sr e p o r tc e r t a i n l y d on o ts u p p o r tt h i s ont~nt on, T h i r d , no s o u nd e v i d e n c e~ d ~ ed t os u p p o r tt h ev i eH t h a tt h ea l l e g e d l yp o o ri n v e s t r : 1 e n t p e r f o rm a n c eo ff o u n c a t i o n si sr e l a t e dt ot h e c o n c e n t r a t i o no ft h e i rin v e s tm e n ta s s e t s . F o u r t h ,i t i sn e i t h e rrea l i s t i cn o rr e as o n a h l et oaSSUD et h a ta m ini . r n umdis c r i buti .o r i r u l ew i l lr e s u l ti n . s i g n i f i c a n ti n c r e a s e si n t h er a t eo fr e t u r non f o u n d a t i o ni n v c s t 7 l e n c s . �• F i n a l l y ,t h e( t h i s )r e p o r t ' c o n c l u d c , , 't ~t t h e t a xs a v i n g sa l l e g e d l yre a l i z e dby t h o s ee s c a b l i s h i n gfou n da c i .on s are, i na l lL ikeL ihood, v e r y sm a l l . F o u n d a t i o nd i s t r i b u t i o n st oc h a r i t y h a v er e p r e s e n t e da s i z e a b l e ~o nt o fb e n e f i t s r e l a t i v et ot h ef o r e g o n er e v e n u e s . " F i n a l l y ,t h eP e t e r s o nR e p o r ta s s um e dt h a tt h ec h a r i t a b l e s e r v i c e sw h i c h af o u n d a t i o nn o r n a l l ys u p p o r t sw i l ln o tr i s ei n ~o t a n yf a s t e rt h a nt h eg e n e r a lr a t eo fi n f l a t i o na n df o rt h a t p u r p o s e ~ed ar a t eo fi n f l a t i o no f2 p e r c e n t . Th eR e p o r t ' s .a s su I ! ' . p t i o ni sw ro r i c, f o ri t c om p l e t e l yd i s r e g a r c 3 . st h ef a c tt h a t t h eo r g a n i z a t i o n ss u p p o r t e db yf o u n d a t i o n sh a v el i t t l e p o s s i b i l i t y o fs im i l a rg a i n si np r o d u c t i v i t y . F rom t h ef o r e g o i n g , tw ot h i n g sa r ea p p a r e n t : On eI t h e u n d e r l y i n sp r e n i s eo ft h e6 p e r c e n tm i .n i . rnum d i s t r i b u t i o nr u l e i sp r e d i c a t e du p o nf a l s eassu rnpt . i .on si a n dt .wo, t h i sr u l emus tb e c h a n g e di fp r i v a t ef o u n d a t i o n sa r et o ont n ~ t ob e pe rm i tL e& t o s e r v et h e i rf u n c t i o ni nt h es u p p o r to fc h a r i t a b l eu n de r t ak i n g s , I ft h i si sn o td o n e ,{ ti sc l e a rt h a tt h ep r i n c i p l e ss e t f o r t hi nt h eP e t e r s o n Re o , ~ a n di n c o r p o r a t e di nS e c t i o n4942 . w i l l im p a i rt h ee f f e c t i v e n e s so fa l lf o u n d a t i o n sa n de l im i n at e m any o ft h emt ot h ed e t r i n e n to fc h a r i t y . T h i sp o s i t i o ni sn o t o n l ys u p p o r t e db yt h eg r o u p s' a c c om p l i s h I : ' .e n t sa n de x p e r i e n c eI h u t b yt h eT u r es tU d yw h i c h i n d i c a t e st h a tp r i v a t ef o u n d a t i o n sc a n g i v eab e t t e rr e t u r np e rd o l l a rt oc h a r i t yt h e nt h eF e d e r a l Goverme nt. N oo n eh a ss u g g e s t e di n c r e a s i n gt h eG o v e r nm e n t ' s T o l ei n ' a d v a n c i n gp h i l a n t h r o p y ,w h i c h i sp r e c i s e l yw h a tw i l lh a p p e n i ft h e6 p e r c e n tr u l eo fS e c t i o n 4942 i sn o tr e v i s e dd ow nw a r d . �. .'~, L~ ~ ~ . ~. " . --- r- __ ~. Ap r i l 1 ~ 1976 .~ , , .~ . . . . . - ,~ . , , . ~~. ' :' , ' : . . ~l . ~ . . . . . . -. .. . _ .7 ' - . ._ _ - _~ }::. ~ " 1~ ~ , ~~ H on .R u sse1 B . Long U n ited S ta t e sS en a t e 2 17 O l dS en a te O ff ice B u i l d i ng t on ,D .C. 20510 W a sh ing ~ . c ", - ."---. - -· · ! ; ; t,.: ~ " j . ~~~~~ ~ ~~ ~~ .~ • • ~ ",,,, , ---- - . - .~ -.- . - ., " . ~ , ~ ~ ~ "" _ _ ~. . .,~ .. . __ r.1>-_ 1 - .~ \ ::-":"," =-,. , . J --;. - ~ .. ~" ~ ': -; D ea rS ena t o r Lo ng : A s on eo fth ep r i v a t efound a t i o n srep r es en t e dinthe A dH oc C omm ittee onF am i ly Found a ti o n s ,w eapp rc i a t ed t h eop p o r tu n i t y o fte s tify ingb e for et h eS en a te C onmittec onF in an c e on A p ri l8 . W e w e r ep l e a sed t h a tyouat t en d ed th e o~t t e e s e s s i o n st h a t d ay wh en s t a t e me n t sreg a rd ingp ri v a t eph i l an t h ro py ~~ d p u b l i c ch a r i tie sw e r ep r e s e n ted. I ff u r t h e rd e ta i led i n f o rm a t i o n ou1db eh e l p f ultoyou and you r Comm i t t e e int h o s ede l i be ra t i o n s, p l e a sele tme know. T h es i tu a ti o n nowcon fron tingp r iv a t efoun d a tion sis ev en mor eu rg e n ti ul i gh to fth r e cen t n o~~ e en t by t h eT r e as u r J tha tt h er a t eimpo s edfo rt h ec u r r e n ty e a rv i l lb e 63 /4 pe r cen t . l { yb e st p e rson a lr eg a rd s . S in ce re ly, . • RGM : l g r .. 1 •.,.1-' . . /P " � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1976-04-08_RMawby_SPE Title A name given to the resource Russell Mawby testimony on the bill to amend Internal Revenue Code of 1954 Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Testimony given for the W. K. Kellogg Foundation on the effects of modifying the charitable distribution requirements imposed upon private foundations, April 8, 1976. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Legislation Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1976-04-08 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/1d95be1b5c97a0f7cd525a2a050f9164.pdf 091f6f4ebc1f241ad13495591965b010 PDF Text Text ... ORAL STATEHENT BY RUSSELL G. MAWBY I. INTRODUCTION ~M..- ~~~~~~ s Russell Mawby, President of the W.K. Kellogg Foundation of Battle Creek, Michigan. I am appearing this morning as Chairman of the Legislation and Regulations Committee of the Council on FouJdations, a nonprofit, membership organization whose membe D' some ~ Af o un d a t i o n s from across the country. include ~h ~n W--<- appreciate s the opportunity to testify this morning on S. 464, a bill of vital importance to foundations and their charitable beneficiaries. Wi t h ~he-5tibeGmm4 t~ee~~ermi s sio I will focus on the income payout issue; the bill also ~~ includes three useful technical changes. - These are addressed in my prepared statement. The Importance of Foundations As the members of the panel have already ges e~ ,,;.,....~c_ ' - foundations playa special and vital role in re- sponding to the needs of our society"-.f e . /q u e react quicKly to emerging social concerns; they forefront of adva ncing medical and scientific research; they nurture important new institutions; and y bar after year they also meet basic needs of the American L--:-- . t he i peop I e 1n e1r commun1. t'1es. �- 2 Safeguards on Foundation Performance To insure that foundations faithfully discharge their public trust, Congress has ~ enacted a compre- hensive and detailed set of rules regulating every aspect of foundation operations. In setting up this system of regulations, Congress explicitly and decisively rejected proposals to require foundations to go out of existence after a fixed period. In particular, the income payout requirement was specifically not designed either to erode the purchasing power of foundations or to restrict foundation investment policy. Impact of Present Law on Foundations Unfortunately, the long-term ability of foundations to continue to support the vast array of charitable activities to which they are committed is in serious doubt. Why? Because as a result of the high inflation and high interest rates of recent years, the requirement of present law that foundations distribute their entire current income is contributing to rapid erosion of foundation assets and is distorting foundations' investment policies. Present law requires foundations to distribute annually the greater of 5% of the value of their investment assets or their entire current income. The basic objective of this payout rule -- to insure that every foundation makes �- 3 - a substantial current distribution to charity -- is sound. On the other hand, under current economic conditions the requirement that foundations distribute their entire current ~ -k income ~~~ -~~ -~~~ delayed death sentence. ~ When Congress enacted the income payout rule, current yields on a well-managed, balanced portfolio were significantly below 5%; inflation had averaged bet e~n 2% ~ a 3% over the preceding decade; and stocks were growing in value much more rapidly than inflation. Today interest rates on debt securities like Treasury bills and certificates of deposit range from ~~~~~ 13% to ~most 17%; inflation persists at 10% to 12%; and real stock values have declined sharply over the last decade. Under these radically different economic conditions, the income payout requirement makes it virtually impossible for a foundation to preserve its future grant capability. While colleges, universities, and every other class of charitable organization can take advantage of the high yields available on bonds and other debt investments to help preserve their charitable purchasing power, foundations cannot. If a foundation continues to invest in a diversified {po r t f o liO including substantial debt holdings, it can expect �- 4 to earn high current yields, but will be required to distribute the entire yield and consequently can do nothing to offset inflation. If inflation persists, a foundation with such holdings will find itself shrunk to 1/3 of its present -already diminished -- size in 30 years. On the other hand, a foundation which wishes to preserve its future capacity to serve its charitable beneficiaries must skew its investment decisions to select its holdings largely from those which have low current yields. Unfortunately such investment strategies also carry significantly greater risk than traditional, more conservative and more balanced foundation investments. For example, many investment advisors are urging foundations to buy "growth" ".- stocks, real estate, commodities, and stock of foreign .", corporations, or at least to invest in securities with (./ /" nominal yields well below 5%. In a recent study (attached to my full statement) Professor Peter Williamson of the Tuck School of Business at Dartmouth concluded that this investment strategy was simply too risky for most foundations. Consequently, the income payout rule presents foundations with a genuine dilemma. Traditional investment strategies result in rapid erosion of grant capability while alternative strategies involve inappropriate risks. As a result of these factors, foundation assets in real dollars have fallen dramatically ~~ widespread termination of foundations ~ there has been Meanwh "ie, the rate of creation of new foundations has fallen dramatically __ +- �- S. 464: 5 - The Solution S. 464 is designed to cope squarely with these problems by amending the law to remove the requirement that foundations distribute their entire current income, while leaving in effect the requirement that they distribute at least 5% of their assets' value each year for charitable / uses. The maintenance of the 5% distribution rule represents an appropriate balance between foundations' immediate support of current charitable enterprises and the very real need to maintain the ability of foundations to continue that support in the future. reasonable one. n ee ~ .,~ ~ ~ ro esso~ i The 5 % level is a 1 ~~~ i mson~ ~ indicates that, over the period 1926 to 1979, the real return on a balanced portfolio s u eh a s h os e s e~ e c t e c o l l e ges and univers j,t ::i:e-s was approximately 4.5%. t by In more recent years the real return has been significantly below that figure. Consequently, a payout requirement of 5% fixes foundation distributions to charity somewhat above the full real return on their assets. On the other hand, by eliminating the income payout rule, S. 464 eliminates an artificial constraint imposed on foundation investment decisions by the tax law, and removes unintended by Congress in Foundations 464 as a way of protecting the lon g ability of foundations to serve society. t~ �S t a t em e n tb y MAR 25198 1 RUSSELL G . MAWBY C h a i rm a n , L e g i s l a t i o na n dR e g u l a t i o n sC omm i t t e e C o u n c i lo nF o u n d a t i o n s b e f o r e S u b c omm i t t e eo nT a x a t i o na n dD e b tM a n a g em e n t C omm i t t e eo nF i n a n c e U n i t e dS t a t e sS e n a t e 1 0 : 0 0 a .m . ,M a r c h 3 1 ,1 9 8 1 ~ shin ton, D .C . �SUMMARY Foundations playa special and vital role in responding to the needs of our society. Unfortunately, the ability of foundations to continue to support charitable activities is in serious doubt. From 1972 to 1979 the real value of foundation assets fell by nearly 40%, and from 1970 to 1979 foundation grants fell from 9.2% to 5.2% of all charitable contributions. As a result of high interest rates and high inflation, the requirement of current law that foundations distribute their entire current income has contributed significantly to this erosion of foundations" ability to serve the public. While all other classes of charitable organizations can use the high yields available on certificates of deposit and other debt securities to try to preserve their charitable purchasing power against the inroads of inflation, foundations cannot. Consequently, foundations must either accept the rapid erosion of their grant capability or skew their investment decisions in favor of more risky investment strategies offering the chance o .c i~ appreciation. . I Neither of these damaging results was intended by Congress when it enacted the payout rule in 1969. In :fact, in 1969 Congress specifically rejected a proposal to limpose a fixed duration on foundations' period of e istence~ S. 464 would amend the payout requirement . to eliminate the damaging effects of current law. Specifically, S. 464 would eliminate the requirement that foundations distribute their entire current income while leaving in effect the requirement that they distribute annually 5% of the value of their investment assets. By maintaining the 5% payout requirement the bill would insure that all foundations continue to make substantial current charitable distributions. Indeed, 5% is more than historical real returns on a balanced investment portfolio. At the same time, by eliminating the requirement that foundations distribute their entire current income, S. 464 would give foundations the investment flexibility which they need if they are to preserve their long-term ability to serve the public. �Statement by RUSSELL G. MAWBY before Subcommittee on Taxation and Debt Management of the U.S. Senate Finance Committee 10:00 a.m., March 31, 1981 Washington, D.C. S. 464: I. THE FOUNDATION PAYOUT REQUIREMENT INTRODUCTION My name is Russell Mawby. I am Chairman of the Legislation and Regulations Committee of the Council on Foundations (the "Council")., The Council on Foundations is a nonprofit, membership organization whose members include some 900 private foundations from across the country. The Council appreciates the Subcommittee's invitation to testify on S. 464, a bill of vital importance to foundations and their charitable beneficiaries. Current law requires that private foundations annually distribute to operating charities the greater of 5% of the value of their investment assets or their total current income, that is, total income less long-term capital gains. Because of persistent high interest rates �- 2 - and high rates of inflation, the requirement that foundations pay income above 5% of asset value seriously distorts their investment decisions and reduces the long-term capacity of foundations to support charitable work. s. 464 would eliminate the requirement that all income be paid out, but would not alter the present rule that foundations must each year distribute for charitable purposes at least 5% of their asset value. Because S. 464 preserves this 5% distribution requirement of present law, it insures that foundations will continue substantial current support of charitable activities. At the same time, it would give foundations the investment flexibility which they so desperately need if they are to preserve their continued ability to respond to human needs. II. WHY WE WILL NEED FOUNDATIONS IN THE FUTURE Foundations contributed 9.2% of all charitable gifts from private sources in 1970; by 1979 they accounted for only 5.2% of such gifts. This diminution in the capacity of foundations affects the entire charitable sector. Foundations give charitable, educational, cultural and scientific service organizations an alternative source of funds to government support. Foundations provide venture capital to the philanthropic sector by funding new ideas and new enterprises and by helping new agencies and new groups �- to gain a toe-hold. 3 - Foundations fund many of the sector's research and development efforts, and use their relatively flexible resources to meet society's emergencies and its newly perceived needs. Accordingly, in the measure that foundation grant capacity is less in the future than it is now, operating agencies and philanthropy as a whole will be more vulnerable, less able to react to emergency, less able to take advantage of opportunity, and less able to plan for the future. The early years of foundation giving in the United States offer dramatic testimony to the service foundations render. "I In those years, foundation funds helped free the South of hookworm, virtually eliminated malaria and yellow fever from l the United States, and reformed medical education to rank American health care wi th the world's best. I In later years foundation funding of science supported Goddard's early research in rocket engineering, the construction of the first nuclear accelerator, the development of the electron microscope and the oscilloscope, and research leading to our current knowledge of DNA which some observers term the single most significant advance in biology in this century. When television emerged, private foundations recognized its educational potential and gave massive �- 4 support. All 282 public TV stations received foundation funds for equipment, operation and other services, and one foundation alone committed $293 million to public TV in the 25 years beginning in 1952. Following World War II, foundations mirrored the society in responding to the aspirations of Blacks and other minorities to achieve full status as citizens and participants in the bounty of our society. There was a trend from research toward action in housing, education, employment and inner-city problems. As the decade of the 80's begins, foundations seem to be emphasizing regional approaches, working toward cooperation among themselves and with government. growing emphasis on comm ni~ There is a development and the preserva- tion and furtherance of neighborhoods and communities. At the same time, foundations have continued to support research at private universities and have sought to strengthen traditional institutions in their role as private alternatives to government-funded institutions. Foundations provide technical assistance and financial support to community groups of every kind; they grant funds for the special needs of the local hospital and the local school; they provide services for the preschooler and for the elderly. Foundations continue to support art and cultural activities as well as traditional social service organizations serving youths, the aged and all other groups in our society. �- 5 - The need for foundations to support innovative charitable activities will be as great tomorrow as it is today. It would, therefore, be shortsighted to apply so many foundation resources to current problems at the sacrifice of the capability of foundations to respond in the future as they have in the past. What foundations have done in the past suggests what foundations can do in the future -- if they have sufficient resources. III. FOUNDATION GRANT CAPABILITY IS RAPIDLY ERODING However, the rapid erosion of foundation grant capability in recent years threatens to eliminate foundations as a vital part of American philanthropy. This decline in the real value of foundation assets, and thus foundation grant capability, is documented by data presented in the most recent edition of The Foundation Directory and summarized in the chart on page 6. The chart shows the changes, for all foundations with assets of over $1 million, in both the nominal and real value of assets over the period from 1965 through 1977. These foundations account for 93% of all foundation assets and 92% of all foundation grants. As the chart indicates, foundations enjoyed a significant increase in both the nominal and real value of their assets from 1965 through 1972. However, from 1972 to 1977 the nominal value of foundation assets increased only slightly and the real value fell by 29.2%. �6 �- 7 While comprehensive data such as that contained in The Foundation Directory are not available for the period since 1977, data collected by the Council on Foundations in a recent survey of its members indicate that the decline in the real value of foundation assets has continued. From 1977 through 1979 the real value of the assets of the foundations surveyed declined by approximately 11%. Thus over the eight year period from 1972 through 1979 the real value of foundation assets fell by almost 40%. If the erosion continues at this rate, in twenty years the ability of foundations to support charitable activities will be only a quarter of what it is today. As these figures suggest, what is at stake is not the continued existence of ~ particular foundation, but rather the continued ability of foundations as a whole to support important charitable works. Because these figures take into account gifts of additional assets to both existing and newly created foundations, they demonstrate dramatically that the flow of new capital into the foundation sector has been insufficient to offset the erosion of the existing assets of foundations. In fact, as a result of the restrictions imposed on private foundations by the Tax Reform Act of 1969, there has been very widespread termination of foundations while the rate of creation of new foundations has fallen dramatically. This trend has been clearly documented in a study prepared for the National Commission on Private �- 8 Philanthropy and Public Needs, the results of which are summarized in the chart on page 9. The study examined the rate of creation and dissolution of foundations during the period from 1968 through 1972 in twelve key states, which together account for over 50% of all foundations. It demonstrated a sharp decline in the rate of creation of new foundations from 1968 through 1970. Over the same period, dissolutions of private foundations increased dramatically, to a level far in excess of the "birth rate" of new foundations. This data on foundation "birth" and "death" rates, as well as the sharp decline in the real value of total foundation assets, clearly show that new money flowing into the foundation sector is insufficient to offset the rapid decline of existing foundation assets. IV. CONGRESS NEVER INTENDED TO REDUCE FOUNDATION CAPABILITY The experience of foundations throughout the country indicates that the present requirement that foundations distribute annually all of their income is a major factor contributing to this alarming erosion of foundation grant capability. Indeed, foundations are being forced to spend themselves out of existence by their inability to reinvest any of the income they earn in excess of the 5% minimum payout amount. It is absolutely clear that Congress never intended that the payout requirement have this effect. During the decade preceding enactment of the payout requirement in 1969, inflation averaged only 1.9%. �- 9 - Fo u nda t ions Esta bl ishe d/T erm inated, 1968· 1972 . Cumu lativ e of 12 States - - - - - New Foundations Est ab lished 1,300 1.200 1,100 - - - - Existing Foundations Terminated ,, \ \ \ ,, , \ \ 1.000 900 \ , \ \ \ \ , \ 800 700 \ \ \ \ \ \ \ 600 , \, \ \ \ \ 500 \ \ 400 \ \ 300 200 100 '68 \ '69 \ \ \ \ ,-------- ......... -- \ '70 '71 - ........ ' 72 Year F rom "Anal ysis of F ou nd at ion Ce nter Da ta o n Crea tion, Di!<.<olution an d Recl assifIca tion of Prrvare F ounda tions, " Washingto n, D.C. , Oct ober 25. 1974. p rep are d by Cap lin &. Dry sdale and The F ou nda ti on Center in Washington, D.C. �- 10 It is not surprising, therefore, that in formulating the payout rule neither Treasury nor the Congress devoted significant attention to the effect which the required distribution of all current income would have in a highly inflationary environment. The Congressional debate makes it clear, however, that the Congress did not intend the payout rule to require that foundations distribute at so fast a rate as to erode the real value of foundation assets. Senator Percy, the leading sponsor of the minimum payout provision finally adopted, made this clear in the following statement: The percentage should not be so high as to amount to a delayed death sentence. A foundation with a well-managed investment portfolio should be able to maintain its size and to stay abreast of changes in the value of the dollar. However, the current needs of our society for philanthropic funds are so great that I consider it inappropriate to permit foundations to grow, in size, without making an adequate current contribution to philanthropy. A payout percentage which will permit a well-managed foundation portfolio to maintain its size while making a productive contribution to charity, represents an equitable balance between the pressure of society's current needs and the interest of future generations. Congo Rec., Nov. 24, 1969, S.15950 (Emphasis added.) Congress has demonstrated a continuing commitment to reevaluate the payout requirement to preserve this principle of nan equitable balance." For example, in 1976 Congress concluded that the 6% minimum distribution requirement, coupled with the requirement that this minimum distribution percentage be adjusted annually to reflect any increases in prevailing interest rates, "could have damaging effects on the continuing viability of many foundations." In response, �-1 1- C o n g r e s sr e d u c e d . t h er a t et o5% a n de l im i n a t e dt h ep r e v i o u s l y r e q u i r e da n n u a la d j u s tm e n t . I n c r e a s e si ni n f l a t i o nu r g et h en e e df o ra f u r t h e r r e e v a l u a t i o no ft h ep a y o u tr u l e ,f o ru n d e ri n f l a t i o n a r y c o n d i t i o n st h et o t a li n c om ep a y o u tr u l enow m ak e s i t v i r t u a l l yim p o s s i b l ef o r" af o u n d a t i o nw i t h aw e l l -m a n a g e d i n v e s tm e n tp o r t f o l i o . . . t om a i n t a i n i t ss i z ea n ds t a y a b r e a s to fc h a n g e si nt h ev a l u eo ft h ed o l l a r . " C u r r e n t i n f l a t i o nr a t e so f 10% o rmo r e m ak e n e c e s s a r ya r e v i s i o no f t h er u l et oe l im i n a t et h er e q u i r em e n tt h a ta l li n c om eb e p a i do u t . V . THE EFFECT OF THE PAYOUT REQU IREMENT INAN INFLAT IONARY ENV IRONMENT I ti sc l e a rt h a tC o n g r e s sd i dn o ti n t e n db yt h e i n c om ep a y o u tr u l et oim p o s et h e" d e l a y e dd e a t hs e n t e n c e "i t s p e c i f i c a l l yr e n o u n c e di ns e t t i n gt h ep e r c e n t a g ep a y o u t . Wh en C o n g r e s se n a c t e dt h ei n c om ep a y o u tr u l e ,c u r r e n ty i e l d s o na w e l l -m a n a g e d , b a l a n c e dp o r t f o l i ow e r e s i g n i f i c a n t l y b e l ow 5% ;i n f l a t i o nh a da v e r a g e db e tw e e n 2% a n d 3% o v e rt h e p r e c e d i n gd e c a d e ;a n ds t o c k sw e r e g r ow i n gi nv a l u e mu ch mo r e r a p i d l yt h a ni n f l a t i o n . T o d a yi n t e r e s tr a t e so nd e b ts e c u r i t i e s l i k eT r e a s u r yb i l l sa n dc e r t i f i c a t e so fd e p o s i tr a n g ef r om w e l lo v e r 13% t oa lm o s t17% ;i n f l a t i o np e r s i s t sa t10% t o12% ; a n dr e a ls t o c kv a l u e sh a v ed e c l i n e ds h a r p l yo v e rt h el a s td e c a d e . Th ee f f e c to ft h ei n c om ep a y o u tr e q u i r em e n th a sc h a n g e d �- 12 radically as the rate of inflation has risen from the 2% level prevailing in the 1960's to the 10% or higher level of today. This change is attributable to the fact that in a period of high inflation the nominal return on all investments increases. In the case of bonds and other debt securities, this increased nominal return takes the form of higher interest rates. However, only a fraction of this higher nominal return represents real income to the bondholder. The remainder is in fact merely a replacement of that part of the bondholder's capital consumed by inflation. Yet the total income payout rule requires that all this nominal income must be distributed. When examined in this perspective, it is clear that a payout rule that requires foundations during a period of inflation to distribute the entire nominal return on their assets is the practical equivalent of a requirement that they annually distribute a portion of their corpus. The inevitable effect of such a rule is to reduce their future grant capability and, continued over time, to reduce them to virtual incapacity. To the extent that foundations hold securities that reflect current high interest rates such as certificates of deposit, the present requirement that they distribute all current income has precisely this effect. The entire nominal return on such debt investments generally comes in the form of current income. Foundations must distribute the entire nominal return and can do nothing to offset the inflationary erosion of their assets and their future grant capabilities. �- 13 The manner in which rising inflation rates fundamentally alter the effect of the income payout requirement has been clearly demonstrated in a study prepared by the Charles Stewart Mott Foundation of Flint, Michigan. The Mott Foundation analyzed the effect of the current income payout requirement on the performance of a typical foundation portfolio with initial assets of $1,000,000 under conditions of 2% inflation and 10% inflation. For purposes of the analysis it was assumed that the foundation's assets would be invested 60% in common stock and 40% in bonds -- a portfolio mix reflecting the traditional investment strategy of foundations and other endowed charities -- and that the rates of return on these investments would be comparable to historic rates of return over the period from 1926 through 1978. The results of this analysis are presented in the chart on page 14. (Figures supporting the chart are included as Appendix 1). Example I assumes a 2% rate of inflation and depicts the changes in both the purchasing power of the foundation's grants and the real value of the foundation's assets over a 30 year period. This example corresponds roughly to the conditions that prevailed in the period before Congress enacted the 1969 payout re ~rement. Given this low rate of inflation, under present payout rules the real value of the foundation's grants falls by only $3,000 over 30 years -- from $50,000 to $47,000 -- and �EXAMPLE I T\\·o Pe rrcn r Inflation with Current Payout. 51 .0 00.000 1!l ilO If II I 199 0 S 48 .00 0 200 0 ~ ,~ n 1.r ll) l \ ::;')fj:.!.l HIlI :54 7 .0 0 0 20 10 - 14 - , ir ~ tnt Value of the Securities Portfolio" Purchasing Power of Income Distributed" ~ t~ . n 19 HO 19 80 s' ln.ooo ~ ~ (See Table III· Portfolio II) EXAMPLE II Ten Percent Inflation with Current Payout Requirement Value of the Securities Portfolio Purchasing Power of Income Distributed :;;88.0 00 S 1.0 00.000 .% 1.000 :3G90.000 542.0 0 0 D 1~ 19 90 20 0 0 :W lO D $477, 000 529. 0 0 0 1!)90 19 80 (See Table IV· Portfolio I) 20 0 0 D 5:l29.000 2010 EXAMPLE III Ten Percent Inflation with Five Percent Straight Payout Requirement Purchasing Power of Income Distributed Value of the Securities Portfolio S 1.000,000 "' ;iO .OOO 1980 S49.00 0 548.000 1!190 2000 "Porr Iolio Compositi on : fiO'7. stocks. 40'7(. bonds In itial Portfolio: :31 million :598 2 .0 0 0 $%4 .000 S!)4 7 .0 0 0 2000 2010 547.000 2010 1980 (See Table IV· Portfolio II) 1990 �- 15 the real value of the foundation's assets declines from $1,000,000 to $943,000. However, as shown by Example II -- which more nearly corresponds to today's conditions -- this picture changes drastically when the rate of inflation rises to 10%. The purchasing power of the foundation's grants is somewhat higher in the early years of the 30 year period precisely because the foundation is forced by the current income payout rule to distribute part of its corpus. However, because of this erosion of corpus the purchasing power of the foundation's grants falls rapidly. By the end of the 30 year period the real value of these grants is only $29,000. Over the same period, the real value of the foundation'Os assets has fallen from $1,000,000 to $329,000. Finally, Example III shows that the proposed modification of the payout requirement would significantly reduce this erosion of foundation grant capability . in an inflationary economy. Under the proposed payout requirement the foundation would be required to distribute an amount equal to 5% of the value of its investment assets and could use income in excess of 5% to preserve the charitable purchasing power of its grants. Under this rule the foundation would be able largely to offset the effect of continued 10% inflation. Indeed, the purchasing power of the foundation's grants would be only $3,000 less at the end of the 30 year period than at the beginning, having fallen from $50,000 to $47,000. �- 16 I ti sa l s oim p o r t a n tt op o i n to u tt h a ti f , a sw e a l lh o p e ,t h er a t eo fi n f l a t i o nf a l l ss h a r p l yi n c om i n gy e a r s ,t h em o d i f i e dp a y o u tr u l eem b o d i e di nS . 464 w i l lc o n t i n u et oi n s u r et h a tf o u n d a t i o n sm ak e s u b s t a n t i a l c u r r e n td i s t r i b u t i o n st oc h a r i t y . I fi n f l a t i o nf a l l s ,d a t a o nh i s t o r i ci n v e s tm e n tr e t u r n sm ak e s c l e a rt h a tt h en om i n a l r e t u r no nf o u n d a t i o ni n v e s tm e n t sw i l la l s of a l l . F o re x am p l e , i f i n f l a t i o nf a l l sb a c kt o2% p e ry e a r ,t h en om i n a lr e t u r no n t h ef o u n d a t i o n ' si n v e s tm e n t sw i l lf a l lt or o u g h l y6 .5% ,o f w h i c ha p p r o x im a t e l y3 .5% w o u l db ei nt h ef o rmo fc u r r e n t i n c om e . B e c a u s et h ef o u n d a t i o n ' sc u r r e n ti n c om ew o u l db e w e l lb e l ow 5% ,e l im i n a t i o no ft h er e q u i r em e n tt h a tf o u n d a t i o n s d i s t r i b u t ec u r r e n ti n c om ei ne x c e s so f 5% w o u l dh a v ea b s o l u t e l y. no e f f e c to nt h ef o u n d a t i o n ' sr e q u i r e dp a y o u t . Th ef o u n d a t i o n w o u l d s t i l lb er e q u i r e dt od i s t r i b u t e 5% p e ry e a r-p r e c i s e l y t h es am er e s u l tt h a tw o u l do b t a i nu n d e rc u r r e n tl aw . V I . THE INCOME PAYOUT RULE D ISTORTS FOUNDAT ION INVESTMENT DEC IS IONS I ni n f l a t i o n a r yp e r i o d s ,t h e .r e q u i r em e n tt h a t f o u n d a t i o n sp a y o u tt h e i re n t i r ec u r r e n ti n c om eh a sa n o t h e r h a rm f u le f f e c tn o ti n t e n d e dby C o n g r e s s-i t d i s t o r t s f o u n d a t i o ni n v e s tm e n td e c i s i o n sa n de n c o u r a g e sf o u n d a t i o n s t oa b a n d o nt r a d i t i o n a l ,p r u d e n ti n v e s tm e n ts t r a t e g i e si n f a v o ro fmo r e r i s k yi n v e s tm e n t s . Th em e c h a n i sm t h r o u g h w h i c h t h i so c c u r si sq u i t es im p l e . U n d e rc u r r e n tl awa f o u n d a t i o nt h a tw i s h e s t op r e s e r v ei t sf u t u r eg r a n tc a p a b i l i t y h a sa s t r o n gi n c e n t i v et ol im i ti t sc u r r e n ti n c om et oa n �- 17 amount equal to the 5% minimum distribution requirement, and to seek to realize the remainder of its total return in the form of long-term capital appreciation. To accomplish this goal, the foundation must invest a greater portion of its total assets in stocks and other assets offering the possibility of capital appreciation. However, it is well established that the risk associated with such equity investments is significantly greater than that associated with bonds and other debt securities. Indeed, a frequently, cited historical study of investments compares standard indices and concludes that common stock investments have involved risk four times as great as bond investments.* -I Moreover, there are risks in anY"lOng tterm investment strategy which forces foundations toward an unbalanced approach. It is better if foundations are free to adQpt a prudent balanced strategy combining some fixed income investments and some equity investments. Statistical data are not available to suggest the extent to which foundations have adopted such higher risk investment strategies. However, it is known that investment advisors are recommending such strategies to their foundation clients; suggesting, for example, such nontraditional investments as call options, deep discount bonds, commodities, timber holdings and foreign equity investments. It is also clear that the present payout rule provides a strong incentive for foundations to accept this advice. By thus encouraging foundations to assume greater * Ibbotson and Sinquefield, "Stocks, Bonds, Bills, and Inflation (1926-1978)," p. 23. �- 18 risk, the present payout rule is further jeopardizing their future grant capability. Commenting on this dilemma, Professor of Business Administration, J. Peter Williamson of Dartmouth College and the University of Virginia writes, "Long-term bonds, and from time to time short-term instruments, offer high current income coupled with declining real capital value. Common stocks offer significantly lower current income coupled with a reduced likelihood of loss of real capital value. The foundation seeking the greatest chance of maintaining the purchasing power of its investments will be driven to the lowest yielding cornmon stocks, which generally constitute the most risky securities available. The foundation choosing a prudent balance between risk and return has been forced in recent years to accept a higher current income and a substantial deterioration in real capital value. What the distribution requirement in Section 4942 has aone is to create a situation in which the only chance a private foundation has of minimizing capital depreciation is to pursue an extraordinarily high risk investment strategy. Any reasonable balance between risk and return must lead inevitably to erosion of the real value of the portfolio. There is no logic in a distribution rule that forces this choice upon a private foundation. If the purpose of the legislation is to prevent this imbalance between growth and distribution, then the minimum investment return rule alone would serve that purpose without the perverse results of the requirement that current income be distributed," A copy of a recent study by Professor Williamson of the impact of the payout requirement on foundations is attached as Exhibit II. �- 19 W h i l e c o l l e g e s ,u n i v e r s i t i e sa n da l lo t h e rt a x e x em p ti n s t i t u t i o n sc a nt a k ea d v a n t a g eo ft h eh i g hy i e l d s a v a i l a b l eon b o n d sa n do t h e rs im i l a ri n v e s tm e n t st od e f e n d t h e i rc h a r i t a b l ep u r c h a s i n gp ow e ra g a i n s ti n f l a t i o nw h i l e s t i l lm a i n t a i n i n g a na d e q u a t ec u r r e n tc h a r i t a b l ep r o g r am , f o u n d a t i o n sc a n n o t . Th er e q u i r em e n tt h a ta l li n c om eb e d i s t r i b u t e dh a sb r o u g h ta b o u t ,t h e r e f o r e ,a na r t i f i c i a l a n dw h o l l yu n i n t e n d e d-i n v e s tm e n tc o n s t r a i n tw h i c hi s d i s t o r t i n gf o u n d a t i o ni n v e s tm e n td e c i s i o n sa n dw h i c hs h o u l d b ee l im i n a t e d . V I I . EFFECT OF THE PROPOSED PAYOUT RULE ON FOUNDAT ION GRANTS U n d e rt h ep a y o u tr u l eem b o d i e di nS . 464 f o u n d a t i o n sw o u l dc o n t i n u et ob er e q u i r e dt od i s t r i b u t ea n am o u n t e q u a lt o5% o ft h ev a l u eo ft h e i ri n v e s tm e n ta s s e t s . How ev e r , t h e yw o u l d n o tb er e q u i r e dt od i s t r i b u t et h e i re n t i r e c u r r e n ti n c om e . Th e 5% d i s t r i b u t i o nr e q u i r em e n tw o u l d e n s u r et h a tf o u n d a t i o n sc o n t i n u et om ak e s u b s t a n t i a lc u r r e n t d i s t r i b u t i o n st oc h a r i t y . I n d e e d ,h i s t o r i c a l l yt h i s5% d i s t r i b u t i o nr e q u i r em e n te x c e e d st h ea v e r a g er e a li n c om ew h i c h af o u n d a t i o nc o u l dh a v ee a r n e do v e rt h ep a s t 50 y e a r so na b a l a n c e dw e l l -m a n a g e dp o r t f o l i oo fs t o c k sa n db o n d s . P r o f e s s o r W i l l i am s o n ' s r e c e n ts t u d y ,r e f e r r e dt oa b o v e ,i n d i c a t e st h a t o v e rt h ep e r i o df r om1926 t h r o u g h1978 t h er e a lt o t a lr e t u r n ( c o n s i d e r i n gb o t hi n c om ea n dc a p i t a la p p r e c i a t i o n ) on a b a l a n c e d i n v e s tm e n tp o r t f o l i oi n c l u d i n gb o t he q u i t ya n dd e b ti n v e s tm e n t s w a s b e tw e e n4 . 0a n d4 .5% . W h e t h e r m e a s u r e d o v e rt h ep a s t5 4 �- 20 - years, 30 years or 5 years the average real return on a well balanced portfolio has been less than 5%. Thus, a payout requirement of 5% will ensure that foundations distribute to charity the entire real return they can expect from their invested assets -- and probably a little more. The extent to which the proposed payout rate would result in a short-term decline in foundation grants is difficult to predict. Certainly there will be some decline. But the scale of this decline should be seen in perspective. It is clear that certain classes of foundation grants would be unaffected by the change in the payout requirement. Grants by company-sponsored foundations, for example, would be unaffected. These foundations normally hold small endowments and pay grants primarily out of current contributions received from the sponsoring company. There are also substantial amounts distributed by other foundations that are essentially mechanisms for current charitable distributions of individual donations. These will be unaffected. Some endowed independent foundations may well choose to continue to pay amounts somewhat in excess of 5% of the value of their investment assets, either as a matter of program choice or because they are required by their charters to payout all of their income and/or to payout principal amounts, as well. In the aggregate, all independent foundations pay out now about 5.7% of asset value each year. If all independent �- 21 foundation giving was reduced to the 5% minimum investment return -- and, for the reasons stated above, the decline would not be the full amount -- the result would be a decrease in immediate contributions to the philanthropic sector of about one-half percent of total charitable giving, since all foundation grants account for only about 5% of all private giving for charitable purposes. This short-term reduction in distributions is clearly justified as a way of insuring that foundations can continue support in the future. Indeed, as we have noted earlier, the philanthropic sector would over time recoup the immediate reductions as payout increased as a result of foundations preserving their endowment value instead of quickly distributing corpus at VIII. cc~ er te rates. TECHNICAL AND ADMINISTRATIVE AMENDMENTS In addition to its principal provision amending the foundation payout requirement, S. 464 contains three technical amendments which will eliminate unnecessary administrative burdens imposed on foundations by current law. The Council on Foundations strongly supports the enactment of each of these amendments. Exception to Foundation Record-keeping Requirement For Small Grants Current law requires that a foundation making grants to organizations not recognized as public charities comply with detailed record-keeping and reporting require- �- 22 ments. These so-called "expenditure responsibility" require- ments are particularly burdensome for small foundations which often lack the administrative resources to comply with the requirements, and which as a result are simply unable to make many worthwhile grants. Larger foundations also frequently decide to forego small grants to nonpublic charities in order to avoid this burden on their administrative resources. As a result of this requirement, many small-scale but highly beneficial charitable activities cannot attract the foundation support they need to survive. In practical terms, the cost of this requirement must be measured in terms of the summer youth program, the community cleanup, the local drug abuse prevention effort which never happens because of a lack of foundation support. To eliminate this clearly unintended result, s. 464 would amend current law to provide a $10,000 de minimis exception under which a foundation would not be required to comply with the expenditure responsibility requirements if its grants, along with those of all related foundations, to a single grantee did not exceed $10,000 in a given year. This amendment would not in any way affect the substantive rules which require that every foundation grant, large or small, go to support a recognized charitable activity. Nor would it relax the expenditure responsibility requirements for large grants, where they are justified by the large amounts of money involved. Instead, this amendment �- 23 - would merely recognize that the record-keeping and reporting requirements which are appropriate for large grants are counterproductive when applied to small grants. A Workable Definition of "Family Member" The private foundation rules impose severe restrictions on the business relationships which may exist between a foundation and its "disqualified persons," and even inadvertent violations of these restrictions trigger substantial penalty taxes. Under current law, "disqualified persons" with respect to a foundation include substantial contributors to the foundation and all of their lineal descendants, regardless of how many generations separate these descendants from the original contributor. This rule can impose a great administrative burden on private foundations, the magnitude of which increases geometrically with each passing generation. For example, many of the country's largest foundations were established early in this century, and the managers of these foundations must keep track of hundreds of lineal descendants of substantial contributors in order to avoid inadvertent violations of the foundation rules. To eliminate this waste of foundation resources without undermining the effectiveness of the foundation rules, S. 464 would amend the definition of "family members," and thus of "disqualified persons," to include only children and grandchildren, rather than all lineal descendants, of �substantial contributors. 24 In those few cases in which more remote descendants continue to be actively involved in the operation of the foundation, they will still be treated as disqualified persons by virtue of being foundation managers or the children or grandchildren of such managers. Thus the proposed change will create no potential for abuse, and will increase the amount of foundation resources available to support charitable activities. Elimination of Unreasonable Administrative Requirement [TO FOLLOW] �- 25 IX. CONCLUSION Foundations strongly support the basic objective of the payout rule and they believe that the 5% minimum payout requirement should be maintained. In supporting S. 464, foundations seek only the elimination of the requirement that they payout such income as they receive above 5%. The ability of foundations to support vital charitable activities in the future as they have in the past is threatened by the present requirement that foundations distribute their entire current income. Elimination of this requirement would contribute significantly to the preservation of the future grant-making capability .of foundations. We must expect that the needs of the future will be as compelling as are the concerns of today. If we permit foundation endowments to erode, the charitable sector will be unable to calIon foundations as alternatives to government at special times of need. American charity then will have lost much of its flexibility and perhaps, over time, some of its freedom. Congress should enact S. 464 to forestall these consequences, which have resulted from inflation and which were completely unforeseen when the payout provision was enacted in 1969. �r I I APPEND IXI TABLEI TABLEI I To t a lAnnu a l Inv e s tm en tR e tu rn s ( 1 9 2 6-1 9 7 8 ) To t a lAnnu a l Inv e s tm en tR e tu rn s ( 1 9 6 9-1 9 7 8 ) Nom in a l Annu a l R e tu rn C lass (m e an l 8 .9% CommonS to ck s LongT ennCo rp .B ond s 4 .0% S e cu r i ty ennGov t . Bond s LongT U .S .T r e a su ryB i l l s 3 .20 /0 2 .5% Annu a l In f l a t ion (m e an l 2 .5 2 .5 2 .5 2 .5 R e a l Annu a l R e tu rn s (m e an ) 6 .4% 1 .5% 0 .7% 0 .0% = Nom in a l Annu a l R e tu rn C l a s s (m e an ) 3 .2% CommonS to ck s L o n gT ennCo rp .B o n d s 5 .8% ennG o v t .B o n d s L o n gT 5 .1% i l l s U .S .T r e a su ryB 5 .9% S e cu r i ty Annu a l In f l a t ion (m e an ) 6 .7 6 .7 6 .7 6 .7 R e a l Annu a l R e tu rn s (m e an ) · 3 . 5% -0 . 9% -1 . 6% · 0 .8% Sou r c e :S to ck s , Bond s .B i l l s . and In f l a t ion :H i s to r i c a lR e tu rn s (1926 -78 )I bbo t son& Sinqu e f i e ld .1979. TABLEI I I E f f e c to fa2%R a t eo fIn f l a t iono n6 0%S to ck 4 0%Bond Po r t fo l io sw i th ayou t s D i f f e r en t In com eP Th efo l low ingt ab l e si l lu s t r a t e th e e f f e c to fa2%r a t e o f econ s t an tdo l l a rpo r t fo l iov a lu eandth e in f l a t iono nth pu r ch a s ingpow e ro fin com ed ev e lop edf romth r e e6 0% s t o c k ·4 0%bondpo r t fo l io s .Th epo r t fo l io sa r einv e s t ed t op rov id eato t a lr e tu rno f6 . 8% ,w i thth e bond sr e tu rn ing 5%andth es to ck s8%p e ry e a r .Th e 8%r e tu rnf r om s to ck si sd e r iv ed5%f r omc ap i t a lapp r e c i a t ionand3% a shin com e .Inth ef i r s tpo r t fo l io ,th e c a shin com e f r omc r e tu rno f3 . 8%i sl e s sth anth em in imum 5%p ayou t r equ i r em en t .Th e r e fo r e,s om e en c ro a chm en to fth ep o r t f o l i o mu s to c cu randth e e f f e c to fth i sen c ro a chm en ti sshown inPo r t fo l ioI I .Po r t fo l ioIdo e sno tr e f l e c tth i sen c ro a ch m en t . I nth es e condpo r t fo l io,5%o fth ev a lu ei sd i s t r ibu t ed and1 .8%r e inv e s t ed6 0%s to ck s-4 0%bond se a rn inga t th es am er a t e so fr e tu rn ;andi nth e th i rd ,th e r e a lr e tu rn o f4 . 8%i sd i s t r ibu t edand2%i sr e inv e s t ed6 0%s t o c k s · 4 0%bond se a rn inga tth es am er a t e so fr e tu rn . A s sump t ion s : (1 )A l lpo r t fo l io sb eg inw i th$1 ,000 ,000inv e s t ed6 0% i n s to ck st or e tu rn8% ( 6%r e a lr e tu rnand2%in f l a t ion ) and4 0%bond st or e tu rn5%(3%r e a lr e tu rnand2% in f l a t ion ) . PORTFOL IOI A l l In com eD i s t r ibu t edI Yea r 19 80 1990 2000 2010 In com e $ 38 . 000 51 ,069 68 .632 92 .236 Pu r ch a s ingPow e ro f i s t r ibu t ed In com e In com eD D i s t r ibu t ed ( 1 9 8 0Do l l a r s ) S3 8 .000 $ 3 8 .00 0 51 ,069 41 , 8 9 4 68 .632 46 . 1 8 7 92 .236 5 0 .9 21 (1 )Th ec ap i t a lapp r e ci a t ionf romth es to ck so f5%p e ry ea ri sa s sum ed to b er e inv e s t ed :60% b a ck in tos to ck sand 40% in tobond s th e r ebym a in t a in ing th e60%-40% s to ckbondr a t io . PORTFOL IOI I 5%D i s t r ibu t ed ,1 . 8%R e inv e s t ed1 Y e a r 1980 1990 2000 2 01 0 Nom in a l V a lu ein V a lu e 1980Do l l a r s ,000 .000 $1 .000 .000 $1 9 80 .5 64 1 .195 .302 1 .428 .748 9 61 .5 06 1 . 707 .786 94 2 .81 9 In com e $38 .000 45 .421 54 .292 64 .896 Pu r ch a s ingPow e ro f To t a l In com eD i s t r ibu t ed D i s t r ibu t ed (1 980Do l l a r s ) $50 .000 $50 , 0 0 0 59 .765 4 9 . 0 2 8 71 ,437 4 8 . 0 7 5 85 .389 4 7 . 1 4 1 (1 )Th e to t a lr e tu rni s6 .8% f romt h epo r t fo l io in v e s t ed 60% in s to ck sa ta8% r e tu rnt2%in f l a t ion )and40%inbond sa ta5% r e tu rn .O fth eto t a lr e tu rno f6 .8% . 5% i sd i s t r ibu t ed .l e av ing 1 .8% t ob er e inv e s t ed . er a t eo fin f l a t ioni sa s sum edt ob e2%p e ry e a r . (2 )Th ( 3 )T h ed iv id end sf r oms to ck sp rov id eac a shi n c om e a rk e tv a lu eo f3%andth ein t e r e s t y i e ldb a s edo nm f r ombond sp rov id e sac a shin com ey i e ldb a s edo n m a rk e tv a lu eo f5%f o ra nov e r a l lc a shin com ey i e l d to ck s ·4 0%bond s ) . o f3 . 8%( 6 0%s ( 4 ) I t i sa s sum edth a t bond sw i l lp rov id ear e a lr e tu rno f an h i s to r i c a l 3% ,a l thoughth i si ssom ewh a th igh e rth r e tu rn s . V a lu ein Nom in a l V a lu e 1980 Do l l a r s S I ,OOO .OOO $1 ,000 .000 1 ,343 .916 1 .102 .480 1 ,806 .111 1 , 215 .461 2 .427 .263 1 ,340 .021 PORTFOL IOI I I R e a lR e tu rno f4 . 8%D i s t r ibu t ed\2% R e inv e s t ed Y e a r 1980 1990 2000 2010 Nom in a l V a lu ein V a lu e 1980Do l l a r s $1 .000 .000 $1 ,000.000 1 ,218 .994 1 ,000 .000 1 ,485 .947 1 ,000 .000 1 ,811 .362 1 ,000 .000 In com e $38 .000 46 .322 56 .466 68 .832 Pu r ch a s ingPow e ro f To t a l In com eD i s t r ibu t ed D i s t r ibu t ed ( 1 980Do l l a r s ) $48 .000 5 48 . 0 0 0 5 8 .51 2 4 8 . 0 0 0 71 .325 48 . 0 0 0 86 .945 4 8 . 0 0 0 t 1 )Th e po r t fo l io' sr e a lr e tu rni s4 .8% w h i ch i sth eto t a lr e tu rno f 6 .8% m inu s 2% in f l a t ion .O f th et o t a lr e tu rno f6 .8 % .4 .8% i s d i s t r ibu t edl e av ing2% tob er e inv e s t ed . �TABLEIV E f f e c to fa10%R a t eo fIn f l a t ionon60%S to ck - 40%BondPo r t fo l io sw i th ayou t s D i f f e r en t In com eP PORTFOL IOI Th efo l low ingt ab l e s i l lu s t r a t e th e e f f e c to fa10%r a t eo f in f l a t ionon th econ s t an tdo l l a rpo r t fo l iov a lu eandth e pu r ch a s ingpow e ro fin com ed ev e lop edf romth r e e60% s to ck-40%bondpo r t fo l io s .Th epo r t fo l io sa r einv e s t ed to p rov id eato t a lr e tu rno f14 .8% ,w i th th ebond sr e tu rn ing 13%andth es to ck s16%p e ry e a r .Inth e f i r s tpo r t fo l io ,a l l in com ei sd i s t r ibu t ed ;inth es e cond5%o fth ev a lu ei s d i s t r ibu t edand9 .8%r e inv e s t ed60%s to ck s-40%bond s e a rn inga tth es am er a t e so fr e tu rn ;andinth eth i rd .th e r e a lr e tu rno f4 .8%i sd i s t r ibu t edand10%i sr e inv e s t ed 60%s to ck s-40% bond se a rn inga tth e s am er a t e so fr e tu rn . A l l In com eD i s t r ibu t ed1 Y e a r V a lu e in Nom in a l V a lu e 1980Do l l a r s 1980 $ 1 . 0 0 0 . 0 0 0 5 1 . 0 0 0 . 0 0 0 1 9 9 0 690 . 449 1 . 790 . 848 2 0 0 0 3 . 207 .136 476 . 720 2 010 5 .743 .491 329 .151 P u r c h a s i n gPow e ro f In com eD i s t r i b u t e d ( 1 9 8 0D o l lB J 'S ) In com e D i s t r i b u t e d In com e s88 . 0 0 0 S8 8 . 0 0 0 157 .595 2 82 .228 505 .427 1 57 .595 282 .228 505 .427 588 .000 60 .760 4 2 . 9 5 1 28 .965 (1 ) Th ec ap i t a lapp r e c i a t ionf romth es t o c k so f 10% p e ry e a ri s a s sum edto b er e inv e s t ed :60%b a c kin tos to ck sand40% in to bond sth e r ebym a i n t a i n i n g th e60%-40%s to ckbondr a t io . A s sump t ion s : (1 )A l lpo r t fo l io sb eg inw i th$1 .000 ,000inv e s t ed60%in s to ck stor e tu rn16% (6%r e a lr e tu rnand10% in f l a t ion ) and40%inbond stor e tu rn13%(3%r e a lr e tu rnand 10%in f l a t ion ) . PORTFOL IOI I 5%D i s t r ibu t ed ,9 .8%R e inv e s t ed1 (2 )Th er a t eo fin f l a t ioni sa s sum edtob e10%p e ry e a r . Y e lU ' 1980 1 990 2000 2 01 0 (3 )Th ed iv id end sf roms to ck sp rov id eac a shin com e a s edonm a rk e tv a lu eo f6%andth ein t e r e s t y i e ldb f rombond sp rov id e sac a shin com ey i e ldb a s edon m a rk e tv a lu eo f13% fo ranov e r a l lc a shin com e y i e ld to ck s-40%bond s ) . o f8 .8%(60%s Nom in a l V a lu e in V a lu e 1 980Do l l a r s s1 .000 .000 5 1 .000 .000 2 .546 .967 981 .966 6 . 487 . 043 9 64 .258 9 46 . i l 68 1 6 . 522 . 289 In com e . D i s t r ibu t ed $5 0 .000 127 .348 324 .352 826 .114 In com e 8 .0 00 5 8 224 .133 5 70 . 860 1 .453 .961 Pu r ch a s ingPow e ro f In com eD i s t r ibu t ed 1 1 9 8 0Do l l a r s ) $ 5 0 . 0 0 0 4 9 . 0 9 8 I . 4 8 . 2 1 3 4 7 . 3 4 3 (1 )Th e to t a lr e tu rni s 14 .8%fomt h epo r t fo l ioinv e s t ed60%in s to ck sa ta16%r e tu rn110%in f l a t ion ) a n d40%inbond sa : ta13% r e tu rn .O fth eto t a lr e tu rno f14 .8% . 5%i sd i s t r ibu t ed .l e av ing 9 .8%tob er e inv e s t ed . I~ (4 )I t i sa s sum edth a t bond sw i l lp rov id ear e a lr e tu rno f l thoughth i si ssom ewh a th igh e rth anh i s to r i c a l 3% ,a r e tu rn s . I , I PORTFOL IOI I I R e a lR e tu rno f4 .8% D i s t r ibu t ed\ 10% R e inv e s t ed Y e a r 1980 1 990 2000 2 010 V a lu e in Nom in a l V a lu e 1980Do l l a r s $1 .000 .000 5 1 .000 . 000 .000 .000 2 .593 .743 1 6 . 727 . 500 1 . 000 .000 .000 .000 1 7 .449 .402 1 In com e 8 8 .000 2 28 .249 5 92 .020 1 . 535 .547 s In com e D i s t r ibu t ed s48 .000 124 .500 322 .920 8 37 .571 Pu r ch a s ingPow e ro f In com eD i s t r ibu t ed 1 1 9 8 0Do l l a r s ) 5 4 8 . 0 0 0 4 8 . 0 0 0 4 8 . 0 0 0 4 8 . 0 0 0 (1 )Th e po r t fo l io ' sr e a lr e t u r ni s4 .8%wh i ch i sth eto t a lr e t u r no f inu s 10%in f l a t ion .O f th et o t a lr e t u r no f14 .8% .4 .8%i s 14 .8%m d i s t r ibu t edl e av ing10%tob er e inv e s t ed . b �APPENDIX II Inflation and The Foundation Payout Rate J. Peter Williamson In the Tax Reform Act of 1969 Congress for the first time required private foundations to distribute for charitable purposes what was considered to be an appropriate minimum measure of income. Specifically, Section 4942 of the Internal Revenue Code calls for annual distribution of the greater of the foundation's actual current investment income or its "minimum investment return:' Initially, the minimum investment return was set at 6 percent of the yearend market value of investments, with a provision for an annual adjustment to be made by the Treasury, The rate, in fact, was raised as high as 6.5 percent in subsequent years. In an article in the Januaryl February 1976 issue of Foundation News, the author suggested that a distribution rate between 4.5 percent and 5 percent was probably as much as a foundation could afford if (he purchasing power of its distributions was to keep pace with inflation in (he nation's economy. In order to keep up with the higher rate of inflation in activities of the kind generally supported by private foundations, tbe �payout would have to be held at 3 percent to 4 percent a year. Keeping up with inflation is clearly d desirable goal. It means maintaining the purchasing power of distributions and a constant level of programs and social benefits. And it appears from the history of Section 4942 that Congress supports this goal. However, it takes only 14 years for a 5 percent inflation rate to cut the purchasing power of a dollar in half. Seven and a half years will do it at 10 percent inflation. Since the time of that article, Congress has taken a somew hat more realistic view of the relation between inflation and what a portfolio of securities can reasonably be expected to produce, and the minimum investment return has been fixed, effective for 1976 and succeed ing years, at 5 percent. So under present law a private foundation must distribute each year the greater of its actual investment income or 5 percent of the market value of its portfolio. The purpose of this article is to review the reasonableness of this present rule. Ten years have passed since the first payout requirements became law, and five years have passed since preparation of the article referred to above. What the experience of these years suggests is that the conclusions of that article were, if anything, optimistic and that although the concept of a minimum investment return makes sense, the requirement that all current investment income be distributed does not. The range of investments available to private foundations has not changed much for many years. The previous article observed that private foundation assets are mostly investments in common stocks, fixedincome securities, and short-term instruments. It is true that institutional investors in the United States have shown increasing interest in foreign stock markets and in real estate in recent years . Foreign markets, chiefly because of the steady devaluation of the U.S. dollar against some foreign currencies, have proved to be attractive and some foundations have found it worthwhile to expend the time and money necessary to set up a mechanism for maintaining a portfolio of foreign stocks and to work out with foreign governments an exemption from the usual taxes imposed on United States investors. But most foundations, including the smaller ones, are still somewhat reluctant to venture abroad for investment opportunities. Real estate presents a different set of problems. Achieving a reasonably diversified portfolio of real-estate holdings demands either an enormous total portfolio or opportunities to participate in pooled funds holding real estate. Although pooled funds have been available for participation by pension funds for many years now, opportunities for private foundations to invest in realestate pools are still somewhat limited. So foundation portfolios are by and large limited to stocks, bonds, and money market instruments. There appear to be no readily available statistics on the composition of private foundation investment portfolios. But there are available statistics on the composition of the endowment funds of colleges and universities. Each year the Investment Committee of the National Association of College and University Business Officers (N ACUBO) collects information on the endowment funds of NACUBO member institutions, covering at least half of all college and university endowment funds in the nation. The previous article reported that on average these endowment funds were invested 60 percent in common stocks, 30 percent in bonds, and 10 percent in short-term securities. The most recent data available indicate little change. The proportion in common stocks generally falls within 58 percent to 62 percent and the proportion in bonds falls between 25 percent and 30 percent. This allocation of investment assets reflects a generally sensible balance between risk and expected return. History suggests, and most professional investors are inclined to agree, that common stocks are likely to produce greater rates of return than are bonds and short-term instruments. At the same time, there is more uncertainty associated with common stocks than with bonds or money-market instruments. Bonds, while less risky than common stocks, present more uncertainty than do short-term instruments. And the dismal performance of bonds for Foundt";o,, Neu», March I.ipril 1981 19 �Table I 54 Years: 1926 through 1979 Compound At/g. Compound Avg. Annual Ratf oj Return "Real" Annual Rate oj Return Standard Be Poor's Composite ("500) Common Stock Index 9.0% 6.1% long Term High Grade Bonds 3.8 1.1 Treasury Bills 2.7 0 Rate of Inflation (Cons. Price Index) 2.7 many years now has encouraged some shin toward short-term insrru- rate of total return on long-term high-grade corporate bonds was 3.8 menrs. percent, and the rate on Treasury It is impossible to produce a "best" Bills was 2.7 percent. Over the same compromise between risk and return 54 years the average annual rate of and a "best': portfolio for all private inflation, as represented by the Confoundations. But the intuitive com- sumer Price Index, was 2.7 percent. promise that has led colleges and Adjusted for inflation, the "real" anuniversities to an average 60-30-10 nual rate of return on common stocks alltj>cation of their assets is probably was 6.1 percent: the real rate on generally satisfactory (or private bonds was 1.1 percent; and the real foundations. In the absence. then. of rate on Treasury Bills was O. special constraint such as that conTables II and III present the same tained in Section 4942. one might ex- statistics as does Table I, but for more pect a prudently managed private recent periods. Table II covers the 30 foundation to hold an investment years through 1979, approximately portfolio consisting of approximately the period from the adjustment of 60 percent common stocks. 30 per- the economy after World War II up cent bonds and ) 0 percent short-term to the present. Table III covers 10 instruments. years through 1979, approximately Tables in the previous article the period following the stock market summarized some historical rates of boom of the 1950s and '60s. The sigreturn on common stocks. long-term nificant change over time revealed by high-grade corporate bonds, Treas- these tables is, of course, the increase ury Bills, and inflation, taken from in the rate of inflation and the impact the work of Ibbotson and Sinquefield of Inflation on the real rates of return who have for some years now been on investments. tabulating and publishing these rates. If one were to take the 54 years of Table I in this article updates those history represented in Table I as a earlier figures. It shows that for the reasonable guide to future real rates 54 years, 1926-1979, the compound of return, one might conclude that a average annual rate of total return foundation invested entirely in com(dividends plus appreciation) on mon stocks and able to avoid paying common stocks as represented by the commissions and management fees Standard Be POOl'S Composite Index could afford to distribute 6.1 percent was 9 percent. The average annual of market value without impairing %0 Foundation Neu», March 1.4pri11981 the purchasing power of its portfolio and its distributions. An all common stock portfolio is simply far too risky, however, for most foundations. Although there is evidence that some foundations are being pushed towards a heavier emphasis on stocks, because of the difficulty in meeting the payout requirements of Section 4942 and still keeping up with inflation, a prudent balance is probably around 60 percent in common stocks, 30 percent in bonds and 10 percent in Treasury Bills. For this combination, without commission and management costs, the average real annual rate of return was only 4 percent. That is, if Table I is taken as a reasonable representation of the future, a foundation with a 60-30-10 distribution of assets cannot afford to distribute annually more than 4 percent of the value of the portfolio without impairing the purchasing power of its distributions. (For a 70-20-10 combination, somewhat higher risk than 60-30-10, the annual distribution. could have been 4.5 percent.) While Table II suggests a better experience with common stocks, it suggests a worse experience with bonds and, in fact, the average real annual rate of return on a 60-30-10 portfolio over the 30 years would have been only 3.7 percent. So distributions beyond 3.7 percent of market value would have impaired the purchasing power of a foundation's portfolio and its distributions. (The 3.7 percent becomes 4.4 percent for a 70-20-10 portfolio.) Table III, which covers the ten years through 1979, paints a dismal prospect indeed. Without distributing anything at all, a foundation with a 60-30-10 portfolio would have lost 1.3 percent a year in purchasing power. About the most optimistic conclusion one can draw from the three scenarios represented by these tables is that a private foundation with a prudently invested portfolio might be able to distribute 4 percent a ~. .- . �• • I j f year of market value and still hope to higher education, and other activities course, for cornrrusston costs and preserve the purchasing power of its supported by private foundations management fees. Statistics are availdistributions, at least in terms of the that do not offer the opportunities able for the actual performances of Consumer Price Index. This conclu- for productivity improvement that college and university endowment sion is a little less optimistic than that , one finds in the industrial and com- funds, probably a reasonable reprereached in the preceding article, mercial sectors of the economy, is Y2 sentation of how well private founwhich concluded that a 4.5 percent percent to 1 percent above the rate of dation portfolios have done. Unforspending rate offered a fairly good inflation in the Consumer Price In- tunately, there do not appear to be prospect of keeping up with inflation dex. Very recent experience may any comprehensive statistics on the in the economy. However, inflation seem to belie this conclusion. performances of the foundations in the economy generally, as repreThe numbers in the three tables themselves. Over the ten years endsented by the Consumer Price Index, above represent the performances of ing June 30, 1980, the average anis not quite the same as inflation in indexes, rather than the perform- nual total rate of return for 68 college the sons of activities supported by ances of actual portfolios held by and university endowment funds private foundations. There is good foundations or other institutions. (representing about 54.5 billion) was reason to believe that inflation in And they make no allowance, of 7.64 percent. This was about a half percent below the total rate of return on a 60-30-10 index for the same time period. The average real total return for the 68 endowment funds Table II over the decade was -.40 percent, so 30 Years: 1950 through 1979 that even had they spent none of their income over the decade, the Compound ..It/g. Compound Aug. funds would on average have failed "Rtal'" Annual Annual Rate to keep pace with inflation as repreRate of Return of Return sented by the Consumer Price Index. Only 25 of the funds achieved a posi6.6% Standard & Poor's Composite 10.8% tive real total rate of return, and the -1.0 2.9 Long Term High Grade Bonds highest real total return rate was 3.8 percent a year. o 4.0 Treasury Bills For the five years ending June 30, 1980, endowment funds did a little 4.0 Rate of Inflation better compared to the averages. For 93 colleges and university endowment funds representing over 55 billion in assets the average annual rate of total return was 8.1 percent while the corresponding return for a fund invested in the indexes 60-30-10 Table III was a half percent less. For this five10 Years: 1970 through 1979 year period, the average real rate of return was -1.1 percent. Twenty-five Compound Aug, Compound Avg. funds achieved a positive real rate of "Rear' Annual Annual RaIl return and the largest of these was Rate ofRtturn of Return 4.4 percent. Few statistics are available for the Standard & Poor's Composite -1.4% 5.9% performance of endowment funds -1.1 6.2 Long Term High Grade Bonds over very long periods of time. But the 15-year record ending June 30. -1.0 6.3 Treasury Bills 1980 for 33 endowment funds aggregating over $2 billion in assets Rate of Inflation 7.4 shows an average annual real rate of return of -1.5 percent, with only two funds achieving a positive real return Foundt,l;on NtTIJ5, March I :fpri11981 %l �/ s t o c k s ,3 0p e r c en ti nbond s ,and 10 p e r c en ti nT r e a su ryB i l l swou ld h av e T ab l eIV p rodu c eda nav e r ag ein com ey i e ldo f 5 . 5 p e r c e n t p e r y e a r o v e r t h e d e c a d e 10Y e a r s : 1970th rough1979 w i t ha c ap i t a ld ep r e c i a t ion inpu r ch a s ing pow e ro f5 . 8p e r c en t .T h e • ' f v t ' rag e C CompoundAug . om p o u n dA ug .. b e s t ch an c eo fp r e s e rv ing th epu r l "Annua lRa t e I n c om e Annua lRaJ l 'o f "Rea y i t ld Ap t n ' t cw l i 0 1 I o fAP fW t cW l ion ch a s ing pow e ro fa n inv e s tm en t po r t fo l iowou ld h av eb e enfoundin S t and a rd& Poo r ' s commons to ck s .And , ind e ed ,ap r i 5 . 4% 4 . 1% 1 . 6% Compo s i t e a t ion m igh t h av e su c v a t e found c e e d e d i n a t t a i n i n g a p u r c h a s i n g LongT e rmH igh pow e rl o s sb e low5 .4p e r c en tbycon 8 . 6 1 . 8 7 . 9 G r ad e Bond s c en t r a t ing on h igh e rr i sk g row th s t o c k s and g a in ing app r e c i a t ion in 0 0 6 . 3 T r e a su ryB i l l s ex ch ang efo rin com e .B u t th er e su l t 5 . 8 5 . 5 . 4 2 60 -30 -10M i x eg r e eo fr i s kto l e r ab l efo rf ew i sad e r t a in lyin app rop found a t ion sandc ov e rth e1 5y e a r s .T h eh igh e ro fth e b e tw e en3 . 5p e r c en tand4p e r c en t . r i a t ef o r m o s t . So th efound a t ion Th e r ei sa tl e a s t al o g i ct oar e - m tw or a t e sw a s1 . 6p e r c en tp e ry e a r . rud en tm ix tu r e o f a in t a in ing a p Th er e co rd o fa c tu a l endowm en t qu i r ed d i s t r ibu t ion m e a su r ed b ya s t o c k sandbond sw a s cond emn edto in imum inv e s tm en tr e tu rn ,on e e p e r fo rm an c e si nh igh e r edu c a t ion m a rn ingandd i s t r ibu t ingas i z ab l ein a ti s l a ck ingi nth er equ i r em en tth a t com s e em sth ent ocon f i rmacon c lu s ion th eandw a t ch ing r e a lc ap i t a lv a lu e s e r c en tannu a lr e a lr a t eo f th ea c tu a lcu r r en t in com em u s tb e d th a ta5p e c l in e . s th eto t a lr e tu rnp e r i s t r ibu t ed.A r e tu rni smo r e th anon ec a ns en s ib ly d T h ef i v ey e a r s 1975 -1979 h av e fo rm an c eo fbo ths t o c k sand bond s p rov ed-m o r es a t i s f a c to ry ,a s -shownin an t i c ip a t e . I fa5p e r c en tr e a lr a t e 5p e r c en t h a sd e c l in ed i nr e c en ty e a r s ,t oth e T ab l eV ,l a rg e lyb e c au s e th i sf iv e in twh e r e th er e a lto t a lr e tu rnh a s y a f t e ra l low ing fo r th ee f f e c t so f po e a rp e r iodh app en ed 'tob eg ina ta rn ed n eg a t iv e ,c u r r e n t in com e v in f l a t ion i smo r e th anc a nb ee x - tu in ti nth es to ckm a rk e r . e r yl owpo i e l d sh av ea c tu a l lyr i s en .Wh a t h a s ( einv e s t edfund so fp r i - y In l a t e 1974 t h es to ck m a rk e t p e c t edf o rth a t ion s , th en a r equ i r ed h app en ed i sth a t bo th s t o c k s and r e a ch edi t sl ow e s tl e v e li nm any y e a r s , v a t e found sh av eb e en d e c l in ing i nr e a l anda p ayou tr a t ea sh igha s5p e r c en tc a n bond sacon s equ en c eth ef iv ey e a r s ein com et h e yg en e r a t e f a l u ew h i l eth a i rth er e a lc ap i t a l v b eexp e c t edt oimp eendo f1 9 7 4 th roughth e romth o fth e found a t ion s .I ti sn o t un - h a sb e enr i s ing .Tosp endth ef u l li n - endo f1 9 7 9p rodu c eda nav e r ag ein r e a son ab l eth a tCong r e s sshou ldpu t com ef r omapo r t fo l ioh a sb e com ea n com ey i e l do f4 . 7p e r c en t coup l ed som el im i tonth eex t en tt owh i ch a a r ew a yt od i s s ip a t er e a lc ap i - w lmo s tsu a lr a t eo fap i t ha po s i t iv er e a lannu a t ionm a yr e f r a inf rom t p r iv a t efound es am et im e ,how a lv a l u e . p r e c i a t ion . )A t th d i s t r ibu t ion s,r e inv e s t ingin com eand T ab l e IVs h ow sf o rth et e ny e a r s ev rpo r a t ebond so f f e r ed v e ry e r ,co bu i ld ing up th ev a lu eo fi t si n v e s t - 1970 ec ompon en t so fto t a l h -1979 th s t an t i a ld ep r e igh in com eand sub m en t po r t fo l io .I tapp e a r sth a twh a t r e tu rn in com ey i e l d andapp r e c i a - c i a t ioni nr e a lc ap i t a lv a lu e .A sar e adi nm ind i ni t sr equ i r e - t Cong r e s sh t o c k sd e l iv e r ed su ion .Wh i l e commons l t ,a60 -30 -10po r t fo l iowou ld h av e m en t th a tam in imum inv e s tm en tr e - a f4 . 1p e r - p nav e r ag ein com ey i e l do rodu c eda nav e r ag ein com ey i e ldo f tu rnb ed i s t r ibu t ed e a ch y e a r ,w a s c en tov e rth ed e c ad e ,th ec ap i t a lap - 6p e r c en t and r e a ld ep r e c i a t ion in a t ionb eab l et om a in t a in p th a tafound r e c i a t iono f1 . 6p e r c en tay e a rw a s c f2 . 2p e r c en tay e a r . ap i t a lv a lu eo r ch a s ingpow e ro fi t spo r t fo l io no th epu tn e a r lyenought ok e epupw i t h ab l eIVandV d emon s t r a t e ,a A sT andi t sd i s t r ibu t ion sw i th as en s ib l e in sar e su l tth er e a lc ap i - p f l a t ionanda a t iondo e sh av eac e r r iv a t e found tth a ti tn o tb e t inv e s tm en ts t r a t egy .Bu fs to ck sd e c l in ed b y5 . 4 t a lv a l u eo r e edomo fcho i c eamongd i f f e r a i nf a b l etodomu ch mo r e th ank e epp a c e p e r c en tay e a r .Co rpo r a t e bond s en tcu r r en tin com el e v e l s .Long t e rm e r i en c e sugg e s t s p w i t h in f l a t ion .Exp r e s en t ed a n ev en mo r e ex t r em e bond romt im etot im esho r t s ,andf r a th e rs t rong lyth a tth e5p e r c en tr a t e c a s e ,w i t ha nav e r ag ein com ey i e l do f t e rmin s t rum en t s ,o f f e rh ighcu r r en t inS e c t ion4 9 4 2i stooh igh .Ar e a son - 7 . 9p e r c en tanda nav e r ag ed ep r e c i a - in com ecoup l edw i th d e c l in ing r e a l eg iv ingp r iv a t efound a - t epu r ch a s ingpow e ro fc ap i - c a b l er a t e ,on i o ni nth to ck so f f e r ap i t a lv a lu e.Common s t i on saf a i rch an c ea ts imp lym a in t a in - t f8 . 6p e r c en tay e a r .A po r t fo l io s a lo ign i f i c an t ly low e rcu r r en t in com e r ch a s ingpow e r ,p rob ab lyl i e s inv e s t ed60 p e r c en ti n common P l tJ15eTumt o Pag e24 i ngpu Z% Foundn t ion ~.~, Ma r ch /Ap r i l1981 . J ' , " �c ~ A final check on the reasonableness of a minimum distribution rate of 5 Table ·V percent of market value was run for 5 Years: 1975 through 1979 the 30-year period ending with 1979. On the assumption that S1,000 was invested at the end of 1949, 60 pert r ~ Compound Avg. Compound Aug. "Real" Annual Rate Income Annual Rate of cent in common stocks, 30 percent in YiLM of Appreciation Appreciation corporate bonds, and 10 percent in Treasury Bills, with a 5 percent disStandard & Poor's "'[)3ribution rate, the market value of the 4.7% 9.5% Composite 1.3% rtfolio would have held its own ( with inflation in the economy Long Term High through 1973. But from 1974 Grade Bonds -2.6 8.3 -10.0 through 1979, the purchasing power Treasury Bills 6.7 o o would have dropped below that original S1,000, to less than $700 by the 60-30-10 Mix end of 1979. As already noted. keeping up with inflation in the economy coupled with a reduced likelihood of appreciation. So the s pend-all- generally may not be good enough loss of real capital value. The foun- income rule may not be successful. for a private foundation. On the asdation seeking the greatest chance of But the rule is not needed anyway, sumption that inflation in the kinds maintaining the purchasing power of since the "minimum investment re- of activities supported by private its investments will be driven to the turn" distribution rule is sufficient to foundations is 1 percent a year above lowest yielding common stocks, which accomplish the Congressional purarion represented by the Congenerally constitute the most risky se- pose . su er Price Index, the $1,000 incurities available. The foundation ..---------------4....-~stment at the end of 1949 'coupled choosing a prudent balance between with a 5 percent distribution rate risk and return has been forced in rewould have maintained its purchasing power through 1972, with the cent years to accept a high current income and a substantial deterioration real value of the portfolio dropping in real capital value. What the disin 1973 and subsequent years, to a tribution requirement in Section little over $500 at the end of 1979. 4942 has done is to create a situation A belief that investment experience in which the only chance a private through 1972 is a better guide to the foundation has of minimizing capital future than experience since 1972 depreciation is to pursue an extraorwould support a minimum distribudinarily high risk investment tion rate of 5 percent as consistent strategy. Any reasonable balance bewith the expectation that a private tween risk and return must lead infoundation could distribute this evitably to erosion of the real value of amount each year and still expect to the portfolio. hold its own with inflation. But an A distribution rule that forces this 'expectation that the )'ears since 1972 About the Author choice upon a private foundation is are also a guide to what we can ex pect harmful to foundations and to the J. Peter Williamson is professor in the future would suggest that a 5 public they serve. What, then, is the percent distribution rate is too high. of Business Administration at the purpose of the requirement that all In any case, the Congressional purAmos Tuck School of Business income be spent? Presumably assurpose of limiting growth of foundaAdministration at Dartmouth Colance that a foundation will not hoard tions at the expense of current dislege. He is the author of a number its assets, piling up capital while tributions is served best by the "minof books and articles on legal, doing little for the public benefit. But imum investment return" distribufinancial, and taxation subjects and a foundation could, if it were willing tion. The additional requirement that has conducted extensive research to take the risk, invest largely in assets current income be entirely distribuon the financing and the investproducing little income so as to ted is not necessary as we have seen, ments of nonprofit organizations. maximize the likelihood of capital and has only perverse results. fD 24 Foundation NroJJ, March I Apri{ 1981 • � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1981-03-30_RMawby_SPE Title A name given to the resource Russell Mawby testimony on Senate bill 464. Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Testimony given before the U.S. Senate Committee on Finance for the Legislation and Regulations Committee of the Council on Foundations on S. 464, March 30, 1981. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Legislation Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1981-03-30 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/87b2310c7aa1c00e04de9488061500c3.pdf 73f6071ae0992252a6750bb0b54a2ad1 PDF Text Text SENATE F INANCE COMM ITTEE SUBCO~MITTEE ON FOUNDAT ION S T e s t imony by D r . R u s s e l lG . M aw by a tO c tobe r2 ,1 9 7 3Subcom : r . J . itt e eH e a r i n g s SUMMARY OF PERTINENTPO INTS 1 . Th ea n a l y s e sby t h eComm i s s ion on Found a t ion s andP r i va t eP h i lan t h r o p y (Th e P e t e r s o n Co~~ssion) wh i ch l e dt ot h een a c tm en to ft h e6p e rc e n td i s t r i b u t i o nr u l ei nS e c t i o n4 9 4 2o ft h eI n t e r n a lR ev enu e Cod eo f1 9 5 4r e f l e c t e d i n a c c u r a t ei n f o rm a t i o nandm i s r e p r e s e n t a t i o no ft h ea c t u a ls i t u a t i o n . Th ep r i n c i p a lc o n t e n t i o nr e f l e c t e di nt h eP e t e r s o nR epo r t w a s t h a tp o r t f o l i o so fp r i v a t ef o u n d a t i o n sh adn o tp rodu c ed r a t e so fr e t u r n st h o u g h tt oh av eb e en p rodu c edbymu tu a l f u n d s . Th i sc o n c l u s i o nw a sb a s e dupon a on ey e a ra n a l y s i s and w a s e r ron eou si nt e rm so fc o n t i n u i n gp e r fo rm an c e . 2 . Th e 6p e rc e n tpa y o u tr e q u i r em e n tenac tedby a S e n a t eF l o o rAm e ndme n tand l a t e ra c c e p t e dby t h eCon f e r en c e Comm i t t e em and a t e s t h ec o n t i n u i n gi n v a s i o n o fco rpu sby p r i v a t ef o u n d a t i o n s ,an un sound p r a c t i c ei np r u d e n tf i s c a l m an ag em en t . S t u d i e s showt h a tt h e6p e rc e n tp a y o u tr u l er e s u l t si ns h o r t t e rmi n c r e a s e st oc h a r i t yb u tt h a tt h ed im i n u t i o no fa ss e t so f p r i v a t efound a t i o n st om e e t t h ep a y o u tr equ i r em en ti ss o d r a s t i ca st oc au s el o n gt e rmr e d u c t i o n si nt h e i rp h i l a n t h r o p i c d i s t r i b u t i o n sf o rc h a r i t a b l ep u r p o s e s . 3 . Th eP e t e r s o n Comm i s s ion R epo r ta l s oe r r e di na s sum ingt h a ta n n u a li n c r e a s e s i nc o s t si nt h ee d u c a t i o n a landh e a l t hs e c t o r so ft h ee conomy w e r e no d i f f e r e n tt h a ni nt h ee conomy g e n e r a l l y andi t ss t u d i e sw e r eb a s e dupon a p r e sump t ion o fan a n n u a lc o s ti n c r e a s eo f2 p e rc e n t . H igh e re d u c a t i o nandt h eh e a l t hs e c t o r sa r el a b o r i n t e n s i v e s e r v i c ei n d u s t r i e swh e r ei t i sd i f f i c u l tt oa c h i e v ega i n si n p r o d u c t i v i t ye x p e r i e n c e di ngood s -p rodu c ing i n d u s t r i e s . Co s t i n c r e a s e si nt h eh e a l t hande d u c a t i o n a ls e c t o r sg r e a t l yex c e edt h o s ei nt h ee conomy g e n e r a l l y ,t h u sp u t t i n gp r e s s u r e on t h ea b i l i t i e so ff o u n d a t i o n st oc o n t i n u et om a i n t a i nt h e i r r e l a t i v ec o n t r i b u t i o n st os o c i e t y . 4 . Un le s st h e6p e rc e n tm in imum d i s t r i b u t i o nr u l eo fSe c t i o n4 9 4 2i sr e d u c e d t h er u l ew i l lp r o g r e s s i v e l yim p a i rt h ee f f e c t i v e n e s so fa l lf o u n d a t i o n s andev en e l im i n a t em any o f th em ,t ot h ed e t r im en to f so c i e t y . I fp r i v a t eph i l an th ropyi st oc o n t i n u ei t sh i s t o r i cc o n t r i b u t i o nt oAm e r i c an l i f e ,ch ang e si nt h ec u r r e n tl e g i s l a t i o n -i n c l u d i n ga r e d u c t i o nint h ep a y o u tr e q u i r em en ta r en e c e s s a r y . �SENATE FINANCE COMMITTEE SUBCOMMITTEE ON FOUNDATIONS Testimony by Dr. Russell G. Mawby at October 2, 1973 Subcommittee Hearings My name is Russell G. Mawby, and I am President of the W. K. Kellogg Foundation in Battle Creek, Michigan. On April 10 of this year the W. K. Kellogg Foundation testified before the Committee on Ways and Means of the U. S. House of Representatives on the subject of the impact of the minimum distribution rule (Section 4942 of the Internal Revenue Code of 1954) on Foundations. Much of the brief testimony which I give today will parallel the testimony presented at those hearings. supported by a study entitled If My testimony is also The Impact of the Minimun Distribution Rule on Foundations" by Dr. Norman B. Ture. A copy of that study is submitted along with my testimony for incorporation into the record. Since my testimony is concerned with the minimum distribution rule as enacted by the Tax Reform Act of 1969, my remarks will be restricted to Section 4942 of the Internal Revenue Code. However, I would like it to be known for the record that we share the concern that the 4% excise tax levied under Section 4940 should be eliminated or, in the alternative, reduced to a rate which would equal the audit costs the tax is intended to defray. Similarly, the Kellogg Foundation joins other Foundations con- cerned over the substantial reductions in assets which have been occasioned by forced diversifications of Foundation holdings, both to meet the arbitrary percentage standard of the 4942 payout requirements and to satisfy the divestiture rules of Section 4943. �2 Before briefly setting fo rth the legislative hi s tory concerning sect ion 4942, I would remind you of the r equiremen t s of the provi sion; that is, private foundation s must make annual dis tributions in the amount of the gre ater of either their earned inc ome or a fixe d percent age of the current market value of their investment assets. The rationale behind this concept was to insure th at current distributions are sufficient to justify tax benefits dono rs might have received, and to prevent private foundations from investing in the stock of companies which retain most of their earnings and thereby delay .charitable expenditures commensurate with the value of their assets. avoid this delay of benefit to charity, section In order to 4942 requires private foundations to make annual distributions at a prescribed level, even if an invasion of capital may be necessary. Many find this approach objectionable, not only because it mandates an encroachment on capit al, but also b ecause many private foundations that are currently able to support ma j or charitable programs are able to do so only because their assets have been historically invested to provide a reasonable appreciation in value as well as a fair current return. To illustrate this point, the Kellogg Foundation historically has distributed all of its income. Over the years the Foundation's assets have doubled in val ue every ten years. Most importantly, because of this appreciation. the payout to charity has more than doubled each decade. As I will show lat er, an annual i nvas i on of principal would have made thi s re cor d of ch arit ab l e contributions i mpossible. �3 Iwou ld emph a s i z et h a tp h i l o s o p h i c a l l yI s u p p o r tt h econ c ep to fa m i n im um annu a lc h a r i t a b l ed i s t r i b u t i o n . How ev e rt I amcon c e rn edw i t ht h em e thod o fd e t e rm i n i n g su cha d i s t r i b u t i o na ss e tf o r t hi ns e c t i o n4942 ; andev en i f t h a tm e thod o fd e t e rm i n a t i o nw e r ea c c e p t a b l et t h e6 p e r c e n tr a t es h o u l d b er edu c edb e c au s ei t i sh i s t o r i c a l l yu n r e a s l i t i c . Mov ing nowt ot h el e g i s l a t i v eh i s t o r y ,t h em i n im um d i s t r i b u t i o nr u l eh a s i t so r i g i ni nt h e"1965T r e a su ry R epo r to nP r i v a t e Found a t ion s "s u bm i t t e d t ot h eHou s e Comm i t t e e on W a y s. andM e an s . Th a tr e p o r te spou s edt h et h e o r y t h a tt h e r es h o u l db eac o r r e l a t i o nb e tw e ent h ei i~ t a xb e n e f i tt o f o u n d a t i o ndono r s andt h et im eo ffound a t iong r a n t so rb e n e f i t st oc h a r i t y . How ev e r , i t a l s on o t e dt h a tt h ein com eo fa s s e t sh e l dby found a t ion ss h o u l d b e on a p a r i t yw i t ho t h e rt ax ex emp te n t i t i e ssu cha sc o l l e g e s andu n i v e r s i t i e s . A l s o ,i t s t a t e dt h a tt h er e t e n t i o no fc a p i t a lb y found a t ion si s j u s t i f i a b l e . Th er e p o r tcon c lud edt h a ta r e a s o n a b l ein com ee q u i v a l e n twou ld b ei nt h e r ang eo f3t o31 / 2p e r c e n t . Thu s ,i t i sobv iou st h a tt h er e p o r td i dn o t i n t e n dt or e q u i r efound a t ion st od i s t r i b u t et oc h a r i t ya n amoun tt h a twou ld r e q u i r ed im inu t ion o fco rpu sa ss e c t i o n4 9 4 2c l e a r l yr e q u i r e s . Th ef i r s th i n tt h a tt h em in imum r a t ep r o p o s a la s adop t edi n1969 m igh tb e abov et h e3 -t o31 / 2 p e r c e n tl e v e lapp e a r si nfo rm e rS e c r e t a r yo ft h e T r e a s u r yF ow l e r ' ss t a t em e n tt oCong r e s so nD e c emb e r1 1 , 1968 ,w h e nh eu s ed an ex amp l ewh i ch a s sum eda 5 p e r c e n t in com ee q u i v a l e n t . Th i s ex amp l ew a s a p p a r e n t l yt h eb a s i sf o rt h eComm i t t e eo nW a y s andM e a n s a d o p t i n ga 5 p e r c e n t m in imum p a y o u t . Th eS en a t eF in an c e Comm i t t e ea c c ep t edt h e5 p e r c e n tl e v e l r e comm end edby t h eHou s e comm i t t e e . �4 O nD ecembe r6 , 1969 ,S ena t o rPe r c yin af l o o ram e ndm en t w h i c hw a s pas s e d , r a i s edt h el e v e lf rom5 p er c e n tto 6 pe r c e n t,wh ich w a s ac ce p t e dby th e con f e r e n c e on t h e S en a to r Pe r c yexPl a in edh i s ac t ion w a sb a sedm a in ly o~~i o ~ n ion o fM r. P e te rG .P e te r s o n , Ch a i rm an o ft h eComm i s s ion on F o u n d a t ion s andP r i v a t e Ph ilan th ropy, who s u gg e stedth a t ap r o p e rr a t e o fr e t u r nf o rfoun d a t i o n swou ld a l lows u ch e n t i t i e st op a y o u tb e twe en 6 and 8p e r c e n ta n n u a l l y . Thu s ,t h e6 p e rc e n tp ayou tr equ i r em e n tr e p r e s e n t s a lO a p e r c e n ti n c r e a s ei nt h em in imum i n i t i a l l yp ropo s edbyt h eT r e a s u r y , and ,i na d d i t i o n ,i t i sp r em i s edupon andr e f l e c t st h ei n a c c u r a t ec o n c l u s i o n s o ft h eP e t e r s o nr e p o r t . I ti si n t e r e s t i n gt on o t et h a t ,i ni n t r o d u c i n gh i s f l o o ram endm en t , S e n a t o rP e r cy f u r t h e rst a t e dt h a t ,mo r e im p o r t a n tt h a n t h ep a r t i c u l a rp e r c e n t a g e s ,a r et h ea s sump t ion s on wh i ch t h ep e r c e n t a g e s h o u l db eb a s e d : "Th ep ayou tr equ i r em en ts h o u l db eh i g h enough t or e q u i r e th em( p r i v a t ef o u n d a t i o n s )t oi n v e s tt h e i rfund sp r o d u c t i v e l y . Th ep e r c e n t a g e s h o u l dn o tb es oh i g ha st oamoun tt oa d e l a y e dd e a t hs e n t e n c e . " To i l l u s t r a t eo u r conce rn sw i t ht h ep ayou tp r o v i s i o n , Iw i l lu s et h e e x p e r i e n c eo ft h eK e l logg Found a t ion a sar e p r e s e n t a t i v ec a s e . Ou r foun d e r ,W . K . K e l l o g g ,r e a l i z e da t o t a lt a xb e n e f i t( in com e ,g i f t , and e s t a t e )o fa p p r o x im a t e l y$364 ,000 on g i f t so f$45 m i l l i o n wh i ch h em ad et o andi nb e h a l fo ft h eFound a t ion . F rom t h a t$45 m i l l i o nt h eK e l logg Found a t ion h a sd i s t r i b u t e di ne x c e s so f$272 ~i ion f o rc h a r i t a b l epu rpo s e s andt h e t o t a lf a i rm a rk e t v a l u eo ft h ea s s e t st o d a yi sa p p r o x im a t e l y$576 m i l l i o n . Th e t o t a lo ft h e s ea s s e t sa re m a in ta ined onb e h a l fo ft h eF o u n d a t ion i ntwos e p a r a t e po r t f o l i o s ,wh i ch w er e f e rt oa s" K e l logg " and "D i v e r s i f i e d . " Th eK e l l ogg po r tfo lio c o n s i s t se n t i re l yo f K e l l o gg C o .s t o ckw i t h av a l u eo f$529 m i l l i o n . T he D ive r s i f i e d po r tf o l i ocon s is t so fs toc k s , bo n d s , andot h e ri n t e r e s t b e a r i n g �·. 5 investments and has an approximate value of $47 million. Through the years, Kellogg has consistently outperformed the Diversified portfolio which is used to measure the merits of diversification. A principal contention reflected in the Peterson report was that the portfolios of private foundations had not produced the rate of return thought to have been produced by mutual funds. By any measure of return, the Kellogg Foundation has outproduced mutual funds for the period covered by the Peterson report and has continued to do so since. For example, in the last 7 years the Kellogg Foundation's income, because of holdings in the Kellogg Co., has continued to be substantially greater than it would have been had its income been derived entirely from diversified investments, The increase in income for our 1972 tax year compared to 1966 was 66.5 percent for the Kellogg holding as compared to an increase of 12.8 percent on the foundation's diversified portfolio. It is evident that the sale of Kellogg stock and the di versi fication of funds would result in a lower return to charity over the years. Year Ended August 31 Kellogg Net Income From Kellogg Stock 1967 1968 1969 1970 1971 1972 1973 $11,272,650 12,177,062 14,438,092 14,890,298 17,606,034 17,349,265 18,775,544 %Increase Over 1967 8.0% 28.0 32.0 56.1 53.9 66.5 Diversified Foundation Income From Other Investments $1,852,705 1,954,008 1,834,420 1,831,344 1,711,651 1,941,018 2,090,946 %Increase Over 1967 5.4% (.9) (1.1) (7.6) 4.7 12.8 Not only was the Peterson report incorrect in regard to performance, but its premise that a pegged payout requirement would be good for charity is also wrong. For example, had the minimum distribution rule been in effect �6 at 6 percent from 1934, when the t r us t cons i s t ed of 221,000 shares of Kel l ogg stock, with a then mar ket value of $38 milli on, the foll owing would have occurred: 1. From 1934 through 1972, the trust made an actual distribution of $222 million. Had the minimum di s t rib ut i on rule been applicable, distributions of $259 million ( or an increas e of $37 million) would have been made; 2. To meet that payout requirement, the trust would have had to sell the equivalent of 18 million shares with a market value of $265 million; t he r e f or e , the trust's holding would have been reduced to a market value of $265 million; and thus 3. The short-term higher return to charity of $37 million would have cost $265 million in corpus value, thereby reducing the current size of the trust by 50 percent. Further, for 1973-74, the distribution from the reduced assets would have been only $10 million rather than the $20 million which will in fact be distributed . Wi th 3 years of experience under the 1969 law, there has been time to examine how section 4942 will operate to undermine overall foundation grants, and there has been the opportunity to further examine the assumptions of the Peterson report. For this purpose, seven Foundations* commissioned a s tudy by Dr. Norman B. Ture entit led "The Impact of the Mi ni mum Distribution Rule on Foundations" . This is the s tudy to which I referred in my introductory *The Hormel Foun dat i on , the Kel l og g Foundation, the Kres ge Foundation, the Lilly Foundation, the McClellan Foundation, the Pew Memorial Trust, and the Woodruff Foundat ion . / �7 r em a rk s . T h ef i n d i n g sand c o n c l u s i o n so ft h a ts t u d y ,a sb r i e f l ysumm a r i z ed i ni t sow nl angu ag ea r ea sf o l l ow s : i~s anym i n im um d i s t r i b u t i o nr u l ewh i ch i g n o r e st h ef o u n d a t i o n ' sr a t eo f r e t u r nw i l lh av e ah i g h l yd i f f e r e n t i a l ,d i s c r im i n a t o r yandp o s s i b l y c a p r i c i o u simp a c to n found a t ion sando nt h e i rl o n g t e rmc a p a c i t yt os u p p o r t c h a r i t i e s . S e cond ,t h e(P e t e r s o nComm i s s ion ) c o n t e n t i o nt h a tt h einv e s tm en tp e r fo rm an c e o ff o u n d a t i o n si sr e l a t i v e l ypoo ri sb a s e do ni n a d e q u a t ei n f o rm a t i o nand i n a p p r o p r i a t es t a t i s t i c a lm e a su r e ; t h er e c o r d so ffound a t ion sf o rwh i ch d a t aw a s a v a i l a b l ei nt h ep r e p a r a t i o no ft h i s(Tu r e )r e p o r tc e r t a i n l ydo n o ts u p p o r tt h i sc o n t e n t i o n . T h i r d ,n o soundev id en c ew a s adv an c ed (byt h eP e t e r s o n Comm i s s ion )t os u p p o r t t h ev i ewt h a tt h ea l l e g e d l ypoo ri n v e s tm e n tp e r fo rm an c eo ff o u n d a t i o n si s r e l a t e dt ot h ec o n c e n t r a t i o no ft h e i ri n v e s tm e n ta s s e t s . F o u r t h ,i t i sn e i t h e rr e a l i s t i cn o rr e a s o n a b l et oa s sum et h a ta m i n im um d i s t r i b u t i o nr u l ew i l lr e s u l ti ns i g n i f i c a n ti n c r e a s e si nt h er a t eo f r e t u r no nf o u n d a t i o ni n v e s tm e n t s . F i n a l l y ,t h e(Tu r e )r e p o r tcon c lud e st h a tt h et a xs a v i n g sa l l e g e d l yr e a l i z e d by t h o s ee s t a b l i s h i n gfound a t ion sa r e ,i na l ll i k e l i h o o d ,v e ry sm a l l . Found a t ion d i s t r i b u t i o n st oc h a r i t yh av er e p r e s e n t e da s i z e a b l eamoun to fb e n e f i t s r e l a t i v et ot h efo r egon et a xr e v e n u e s . F i n a l l y ,T h eP e t e r s o nR epo r ta s sum edt h a tt h ec h a r i t a b l es e r v i c e swh i ch af o u n d a t i o nno rm a l ly s u p p o r t sw i l ln o tr i s ei nc o s tany f a s t e rt h a nt h e / �8 general rate of inflation and for that purpose assumed a rate of inflation of 2 percent. The report's assumption is wrong, for it completely disregards the fact that the organizations supported by foundations have little possibility of significant gains in productivity. Let me cite a few quick examples. Higher education is a labor-intensive service sector of the economy in which it is difficult to achieve the gains in productivity that are experienced in goods-producing industries. Educational costs per credit hour consistently rose more rapidly than the consumer price index from 1953-54 to 1966-67. Over the period as a whole, educational costs rose at an annual average rate of 3.5%, as compared with a rate of 1.6% for the consumer price index--a difference of 1.9%.1 The most noticeable feature of the budgets of all institutions of higher education is how fast they have gone up in the years since World War II. Total educational and general expenditures on current account by all institutions of higher education went up from less than $1 billion in 1945-46 to more than $7 billion in 1963-64. Total educational and general expenditures less expenditures on organized research have gone up, on the average, more than 7% a year at all private universities. The direct instructional cost per student over the period 1955-56 works out to an average annual rate of increase of 8.3% for all private universities. 2 1 Source: "The More Effective Use of Resources--An Imperative for Higher Education," A Report and Recommendations by the Carnegie Commission on Higher Education, June 1972, pp. 33-38. 2 Source: "Economic Pressures on the Major Private Universities," vlilliam G. Bowen, Reprinted from "The Economics and Financing of Higher Education in the United States," a Compendium of Papers Submitted to the Joint Economic Committee, Congress of the U.S., Government Printing Office, 1969, pp.399-439. / �9 In the period 1958-71, the average operating budget for medical schools increased from $2,056,000 to $8,475,000, an increase of 412%. The mean salary for basic science faculty and for all ranks of clinical science faculty increased 59% and 66% respectively.3 A major program concern and site of W. K. Kellogg Foundation expenditures has been the hospital field. The Foundation has assisted a wide variety of programs in community hospitals such as in recent support for coronary care units and the improvement of burn patient care facilities and services. The increase of such support by the Foundation has substantially paralleled the general rise of medical care and hospital costs in the United States. Such costs have risen at an annual rate of 11.8% between the years 1950-1970 and the expenses per patient day during the same period rose at an annual rate of 8.6%. 4 In conclusion, from the foregoing these things are apparent: 1. The analysis which led to enactment of the 6% distribution rule reflected inaccurate information and misinterpretation of the actual si tuation. 2. The 6% payout requirement mandates the continuing invasion of corpus by private foundations, an unsound practice in prudent fiscal management. 3 Bradford, Malt and Oates, "The Rising Cost of Local Public Services," National Tax Journal. 4 Source: Hospitals, J.A.H.A. �1 0 3 . Co s ti n c r e a s e si nt h ec h a r i t a b l es e r v i c e ss u p p o r t e dby f o u n d a t i o n s ex c e edt h eg e n e r a li n f l a t i o n a r yr i s e ,t h u sp u t t i n gp r e s s u r e on f o u n d a t i o n a b i l i t yt oc o n t i n u et om a i n t a i nt h e i rr e l a t i v ec o n t r i b u t i o nt os o c i e t y . Un l e s st h e6% m in imum d i s t r i b u t i o nr u l ei sr e d u c e d ,i t i sc l e a rt h a t t h ep r i n c i p l e ss e tf o r t hi nt h eP e t e r s o nR epo r t and i n c o r p o r a t e di nS e c t i o n 4942w i l lp r o g r e s s i v e l yim p a i rt h ee f f e c t i v e n e s so f ev en e l im i n a t e~ n ~ f o u n d a t i o n sand o fth em ,t ot h ed e t r im e n to fs o c i e t y . I f p r i v a t ep h i l a n t h r o p yi st oc o n t i n u ei t sh i s t o r i cc o n t r i b u t i o nt o ~ i n l i f e ,ch ang e si nt h ec u r r e n tl e g i s l a t i o n i n c l u d i n ga r e d u c t i o n i nt h ep ayou tr e q u i r em e n t a r en e c e s s a r y . We u rg ey o u ra d o p t i o no fsu ch m o d i f i c a t i o n s t oi n s u r et h a to u rs o c i e t yw i l lc o n t i n u et ob e n e f i tf romt h e c o n s t r u c t i v ea c t i v i t i e so fp r i v a t ef o u n d a t i o n s . Th ank you . � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1973-10-02_RMawby_SPE Title A name given to the resource Russell Mawby testimony on the Internal Revenue Code of 1954. Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Testimony given before the Senate Finance Committee Subcommittee on Foundations hearings on the minimum distribution rule (Section 4942 of the Internal Revenue Code of 1954), October, 2, 1973. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan Charities W. K. Kellogg Foundation Speeches, addresses, etc. Legislation Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1973-10-02 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/f0a2aa261b29cf6c25de1a17120a1aea.pdf 04581bbaee2105c7d37f325cbc893786 PDF Text Text 1< (,...1 ( -rL.J.- ~ ) ~ . ~-. ,~ ~fJL v- 2- - I am Dr. Russell G. Mawby, President of the W. K. Kellogg Foundation of Battle Creek, Michigan and a Co-Trustee of the Kellogg Fotmdation Trust. / /' 2 ~ t&- manager of a foundatrion which actively participated in the legislative developnent of §4943 in 1969, specifically the "grandfather" provisions of §4943 (c) (4) • My reason for requesting the opporttmity to appear is to help insure that private fotmdations are pennitted to retain pre-1969 business holdings. Ten ears ago, on August 8, 1969, a panel representing many of the sane fourrlations which are here today successfully made the sane argurrents to the Finance Conmittee of the United States Senate. I stress the word "successfully" because the result of that corrbined testinony in 1969 was the statutory "grandfathering" of pre-1969 holdings contained in §4943 (c) (4) of the Code -- the statuto regulations would effectively attorney, ril, f r~~ ~ provision which the proposed ~ 1P- <-A! ~ a foundatii.on manager, not an .. ~ " I do ot; tmderstand why, having been adopted by Congress, A the argurrents must be made again. GMe ~} I do appreciate tho opportunity to testify to the wisdom of the Congressional decision in 1969 not to force wholesale· divestitu:te of existing foundation holdings. The W.K. Kellogg Foundation has, over the past 50 years, distributed nore than $500 million to charitable beneficiaries. That $500 million has been possible fran the initial gift of $45 million of Kellogg Company stock to the Foundation Trust of which the Kellogg Foundation is the sole �- 2- b e n e f i c i a r y . Bo th t h eK e l logg Found a t ion andFo tmd a t ionT r u s ta r ep r i v a t e found a t ion sand ,f o rpu rpo s e so f§4943 ,e a chi sa d i s q u a l i f i e dP e r s o nw i t h r e s p e c tt ot h eo t h e r . Tog e th e r ,t h eFound a t ionandFound a t ionT r u s tand d i s q u a l i f i e dp e r s o n stod ayCM I l ~ o ft h eK e l logg c a r p a n y . O ft h a ta r roun t , d i s q u a l i f i e dp e r s o n sw i t hr e s p e c tt o ,t h eFound a t ionandT r u s tCMI l 1 .4% . T en y e a r sago ,t h eFound a t ionandT r u s t andd i s q u a l i f i e dP e r son sh ad<X J I b in ed h o l d i n g so f5 4% . So ,a syous e e ,t h eh o l d i n g so ft h eFound a t ion ,T r u s t and d i s q u a l i f i e dp e r s o n sh av ebeen r edu c edt ocon fo : rmt ot h er equ i . r en en t so ft h e s e condp h a s eo f§4943( c )( 4 )wh i ch began f o rt h eK e l logg Found a t ionand T r u s t onM ay 26 , 1979 . T h er e d u c t i o n si n h o l d i n g so v e rt h ep a s tt e ny e a r sh av ebeen a c co r rp l i sh ed l a r g e l yt h r o u g hd i l u t i o no ft h ei n t e r e s to ft h eFound a t ionandT r u s ta st h e r e s u l to fi s s u a n c e so fa d d i t i o n a ls h a r e so fs t o c kb yt h ec o r p o r a t i o n ,t h u s a v o i d i n gt h en a r k e td i s r u p t i o nwh i ch wou ld h av ea cx : : a rp an i . eda s a l eo ft h e F o tm d a t i o n ' sh o l d i n g si na l i k ea r roun t . F o rex amp l e ,i n Nov e r rb e ro f1978 t h e r ew a s as a l ebyap r i v a t efound a t iono f2% o ft h econp anys t o c kth rougha p r i v a t ep l a c e n e n t . T h er e s u l to ft h i sd i s p o s i t i o nw a s ad e p r e s s i o no ft h em a r k e tp r i c e ,w i t h al o s so fr ro r ethan$ 4 0m i l l i o ni nt h en a r k e tv a l u eo ft h e h o l d i n g so ft h eK e l logg Found a t ionand Found a t ionT r u s t . O fc o u r s e ,t h e r ew a s as im i l a rl o s so finv e s t : r r en tv a l u et oo t h e rs h a r e h o l d e r s . \ . . . . . . . . . . . . ." ,con c e rnf ~~ h a r s handu n j u s t i f i a b l econ s equ en c e s l e dt h e Cong r e s st o" g r a n d f a t h e r "e x i s t i n gh o l d i n g swh en t h e yw r o t et h e1969A c t . I n 1965 ,t h eT r e a s u r yh a df i r s tp ropo s edl im i t sont h ep e rm i t t e dh o l d i n g so fa p r i v a t ef o u n d a t i o ni nab u s i n e s se n t e r p r i s e . Th e s ep r o p o s a l sd i dn o tr e c e i v e �- 3l e g i s l a t i v ea t t e n t i o nu n t i l1969 ,wh en ,a sa p a r to ft h eT ax Re fO Im A c t , t h eHou s ei n c l u d e da p r o v i s i o nwh ich wou ld h av ei n p o s e da 20% l im i tona p r i v a t efound a t ion Is h o . ld i r iq si na b u s i n e s se n t e r p r i s eandr e q u i r e dp r i v a t e f o u n d a t i o n sh av ingh o l d i n g si ne x c e s so f20% t or edu c et h o s eh o l d i n g s; t ;o A w i t h i nf i v ey e a r s . Con c e rn ed o v e rt h ei r rp a c to fther a p i dd i v e s t i t u r em and a t ed byt h eHou s e - p a s s e dp r o v i s i o nont h ev a l u eo ft h eh o l d i n g so fthefound a t ionands t o c k h o l d e r si ng e n e r a l ,t h ea f f e c t e df o u n d a t i o n sapp e a r e da saP a n e lb e f o r et h e S en a t eF in an c eC a rm i t t e e . , e t ' " " " e s s e n t l 1 t l l : ~re . J ~ ( 2 ) e £ o we r ecx : :x rp l e t e lyi n c o n s i s t e n t eHou s ew en tf u r t h e r r~ e twh a th adc an et ob e n e c e s s a r yi nane f f o r t a sa it u a t i o nsu s c ep. L e p i r i ta sw e1 a st h eI t t e r o ft h er aw ; and (4) es i l l wau l L i t h edono rt or e s u l ti n theph i .L an thn f o r c e ds a l eo fab u s i n e s sw i t h <pn s equ en . ta d v e r s i t yf o rt h ec em p / T h i t s e r rp loyees - - re ,~-------- con c e rn so v e rt h eHou s ev e r s i o no f' t h e 1969A c ta r et h es an econ c e rn s wh ich e x i s tw i t hr e s p e c ttoy o u rp ropo s edr~ . ~~e requirenentfor The S e n a t eF in an c eC a rm i t t e ea g r e e d r d d i v e s t i t u r eo fp r e l 9 6 9h o l d i n g s , and ,i n s t e a d ,impo s edd i f f e r e n tl im i t son su chh o l d i n g s . Und e r theS e n a t eb i l l ,a f o u n d a t i o nc o u l dr e t a i na l lo fi t s I. I �- 4p r e -1969h o l d i n g st oam a . x im um o f5 0% . W h e r et h ee x i s t i n gh o l d i n g s ex c e ed ed5 0% ,t h efound a t ionw a sp e n n i t t e d1 0· y e a r st om e e tt h e50% l e v e l . Th e Con f e r en c ec a rm i . t t e ea c c e p t e dt h eS en a t e app ro a ch ;h cM ev e r ,t h e 50% l e v e lo fp e n n i t t e dh o l d i n g sw a sr edu c edt oanu l t im a t e3 5% ,b u tana d d i t i o n a l1 5y e a r s( t o1994 )w a sp r o v i d e df o rt h a tr e d u c t i o n . Th er e s u l to ft h ep a n e l ' s· t e st i n o n yi n1969w a s ,t h e r e f o r e ,a s t a t u t e wh ich r e j e c t e dm and a to ry du r rp ingo fap r i v a t ef o u n d a t i o n ' ss t o c kont h e m a rk e t , C ! c t ion_W l l l c h :'WO u l dh av er e d u ce dt l ' i ' ev a l u eo ft h er em a in in gs h a r e s h e l dby t h ep r i v a t efoun d a t i o na sw e l la st h a to fa l i :o t h e rs h a r e h o l d e r s . Cong r e s s ag r e edt h a tf i v ey e a rd i v e s t i t u r ew a s toog r e a t n g r e s sn o ton l y .r e j e c t e d r e g u l a t i on sp ropo s e,b u tp e n n i t t e dap r i v a t efound a t i o nt or e t a i np r e -1969h o l d i n g sf o r e v e rt oar n a x im Jmo f3 5% . An e x amp l eo ft h ew i sO a no ft h a td e c i s i o ni sr e f l e c t e di nt h ei n c r e a s e i nv a l u eande a r n i n g so fo u rF o u n d a t i o n ' sh o l d i n g si nt h eK e l logg C anp any o v e rt h ep a s t1 0y e a r sa sca rpa redt oa ni n v e s t I r e n ti nad i v e r s i f i e dp o r t f o l i o . H a dt h eFound a t ionbeen f o r c e dt od i v e s to fi t s K e l logg C c x n p a n yh o l d i n g si n 1969 and v ei n v e s t e di na.p o r t f o l i or e p r e s e n t a t i v eo ft h eDow J on e s I n d u s t r i a lAv e r ag e ,f o re · $ 10 $ i n go n l y$90 .9 6 "~e byre~ ° ve~ e , t h e ~ ) ~ e rana i n - K e l iogg s t o c k ,f o rev e ry$ 1 0 0t h e h a s $124.7 wo rk ing f o rc h a r i t a b l ep u r p o s e s . A d d i t i o n a l l y ,t h ed i v i d e n d s onK e l logg C a rp any s t o c kh av ec o n s i s t e n t l yex c e ed edt h em a rk e t av e r ag e . F u r t h e r , thec o s to fa dm i n i s t e r i n gt h ep o r t f o l i oh a sbeen s u b s t a n t i a l l yl e s s thanYK ) u l dh av ebeen r e q u i r e dt om an ag e ad i v e r s i f i e dp o r t f o l i oo ft h eSa I IE -~ �- 5· . ,~ . ~ e r e f o r e ,t e tm v e s tm e n tr e t u r n• . . . . . a r roun t . Th h en J .. h a sb e e nf a rg r e a t e rthani £ d i v e r s i f i c a t i o nh adb e e nf o r c e d . Thu s , youc a ns e et b a tt h ep ropo s edr e g u l a t i o n sa r ec o n t r a r yt ot h e w i sd an o ft h eCong r e s s ion a ld e c i s i o ni n1969 . T h ep r o p o s a l sc o u l dr e q u i r e t h eF ound a t ionandFound a t ionT r u s tt od i s p o s eo f$ 4 0 0m i l l i o no fs t o c kw i t h i n 9 0d ay so fc o r p o r a t ea c t i o nt a k e nbyt h eK e l logg C anp any i nt h eno rn a l .c o u r s e o fi t s b u s i n e s s . A sa c o r p o r a t ed i r e c t o r ,w h e nc o n f r o n t e dw i t h ac o r p o r a t ea c q u i s i t i o n wh i ch v .D u l db ei nt h eb u s i n e s si n t e r e s to ft h ec anp any ,you rp ropo s edr e g u l a t i o n sv .D u l df o r c er o et ochoo s eb e tw e env o t i n ga g a i n s tt h er e o r g a n i z a t i o nw it h o u tr e g a r df o rt h ec o r p o r a t eb u s i n e s sanda l lo t h e rs h a r e h o l d e r s ,o rv o t i n g f o rt h ez e c rq an i . a a tdonand f o r c i n gt h ed i s p o s i t i o no f$400m i l l i o no ft h e F o u n d a t i o n ' si n v e s b r e n ta td i s t r e s sp r i c e s ,t h e r e b ye r o d i n gt h ev a l u eo ft h e F o u n d a t i o n ' s inv e s tm en tand t b a to ft lx>u s and so fo t h e rs h a r e h o l d e r sa sw e l l . A sa found a t ionm an ag e r and I b e l i e v eI speak f o ra l lfound a t ionm an ag e r s w h oa r ea f f e c t e dby t h e s ep ropo s edr e g u l a t i o n s Iwou ld n ev e ra t t a r p tt o m an ag et h ec anp anyf o rt h eb e n e f i to ft h eF ound a t ion ,o t h e rt b a nt oe x e r c i s e t h a tf i d u c i a r yo b l i g a t i o nwh i ch I ONe t h eF ound a t iont op r o t e c tandp r e s e r v e t h ev a l u eo fi t s I r rv e s tm en t . , A s ac o r p o r a t ed i r e c t o r ,Ih av et b a ts am e r e s p o n s i b i l i t yto ~ ~ re .. er Q J / t tbe te. o qX5 r -a t :± . \ How ev e r , you rp ropo s edr e g u l a t i o n s\>O . l l da t t a r p tt of o r c en et oa c t . I ~• r r r e s p o n sw y ,. t r f a n n i n gt h eF ound a t ion i n t oana g e n to ft h eT r e a su ry t o /1. e n f o r c es e l e c t i v er e s t r i c t i o n sonc o r p o r a t eb u s i n e s st r a n s a c t i o n s ' and\ \Qu ld s u p p l a n tt h einv e s tm en tn o t i o n so fT r e a su ry f o rt h o s eo ft h ef ound a t ionm an ag e r . �- 6Cong r e s sw a s awa r ei n1969 t h a ti t l a c k e dt h ee x p e r t i s et os e cond -gu e s st h e p a s tinv e s tm en t so ff o u n d a t i o nm an ag e r s andw i s e l y cho s et o" g r a n d f a t h e r " . . t h o s ee x i s t i n gh o l d i n g s . Th a t Cong r e s s ion a lw i sd an h a sb e e nr a t i f i e dby. t e ny e a r so fexp e r a en c e e t eny e a r so fp rov eni n v e s tm e n tp e r f o n n a n c e t e ny e a r s w it i x " J u tanex anp l eo fabu s e. ~ . ; amaw a r eo fnofound a t iont h a ta t . ~s i n c e1969h a si n c r e a s e d » : 'J i t s h o l d i n g si na b u s i n e s sen .r i s ei n ,wh i chi t owns a ( c )( 4 ) / i n t e r e s t . ~thatofthe P a r t i c u l a r l ywh e r et h ev a l u eo ft h e ...i n e s tm e n ti sa sg r e a t .... e ~Crnpany, i will be~ t od i s p o s e o ftheex c e s sO l l e r 35% ~ statutoryrateof1% ryearwithout having ap ro long eqadv e r s e. : j r o p a c tonthem a rk e tv ~f thes --anIrrpac Which K e l logg Found a t ion i nt h e byk a d v e r s e l y a f f e c t h :a r roun tr e a l i z e d / . Found a t iona s o ft h einv e s : t : t r en to fo t h e s h a r e h o l d • I t v . u u l d b ef a a ~ J r~ ~ reductions a foundn on ,w h e nf a c e d b a ti n p a c tby s h a r e . On o t h e rh and ,t h e w i s e r co e i st o u t i l i zo p p o r t u n i t i e sm a d e av a i 'a b l ebyc o r p o r a t ee x p a n s i ~ Foundation t ocoup l ed i l u t i o no f I S. i n t e r ef ' w i t ha c t l l : : ;-d i s p o s i t iO n . Th ep ropo s edr e g u l a t i o n swou ld e l im i n a t et h a tr e a s o n a b l eando r d e r l y r o e t h c d ' - f o rc a r r y i n go u tt h ei n t e n t _o f_ t h e _ s t a t u t e . . F i n a l l y , you rp ropo s edr e g u l a t i o n s wou ld i nf a c tr ew a rdabu s e . K e l l 0 J 9 Found a t ionwou ld b er e q u i r e dt od i s p o s eo f$ 4 0 0m i l l i o no fs t o c k b e c au s et h eF ound a t ionc o u l dn o tandwou ld n o te x e r c i s ec o n t r o lt op r e v e n t anaCX jU i s i t iono rn e r g e rt h a twas i nt h eb u s i n e s si n t e r e s to ft h eC c r n p a n y andi t s s h a r e h o l d e r s . On t h eo t h e rh a r r l ,i f a found a t iond i dc o n t r o la ' I t I �- 7b u s i n e s se n t e r p r i s es o l e l yf o rt h eFounda t .Lonvs b e n e f i t ,i t c o u l ds u r v i v e und e ryou rp r o p o s a l sandr e t a i ni t s s t a t u t o : r yr i g h t , Cong r e s sd i dn o t i n t e n dn o rw i l li t s a n c t i o nsu cha p e r v e r s er e s u l t . Th eT ax R e fonn A c to f1969 c o n t a i n e da c c r rp r eh en s . i v ep a ck ag eo fp r i v a t e found a t . ionr e f o n n s ,o fwh i ch·§4943 i s o n l yon e . T h ec o s to fc c rop l .L an c ehas b e enc o n s i d e r a b l e . Th eK e l logg Found a t ionandFound a t ionT r u s thas exp end ed a1 : r ro s t$ 1 0m i l l i o nd u r i n gthep a s t10y e a r si ne x c i s et a x e sandf o rc r n p l i a n c e , - 5Q -y e a r s dea . ; f-~ Th e -K e l log g - ~ .~ - rr - - ~. -.~ w i t ht h e~ f the1969A c t -I i e f e a l r ro s t ;2 0y e a r sp r i o r· t ot h e ~e- r. ~~ e. sedregu la t ions(, a , ~~ A f te r ; th0 t1gh t . : fu lo n s i ~) i n t ot h esoundm an aq em en t ;o fp h i l a n t h r o p i cr e s o u r c e s .~ A . h t , i . . .\ ' l l . / ~ 4 s t a t u t ei s t obe r e p e a l e d ,i t shou ldbe z ep e a l . ed b yCong r e s s ,n o tbyr . e g u l a t i o n . I ~ intrusion:5 .n . r : : - cf2.<> -~~- ~~ tk - ~- . . -- -~. / \ v- ~~e en a c t e d§4943c )( 4 )t o" g r a n d f a t h e r "t h ep r e l 9 6 9h o l d i n g so f p r i v a t ef o u n d a t i o n s , I f \ wh i ch W ) Founda t ionhad i . r rp l e r c en t ed � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1979-09-06_RMawby_SPE Title A name given to the resource Russell Mawby testimony on the proposed regulations on private foundations, Excess Business Holdings of Private Foundations Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Testimony given before the Internal Revenue Service for the W. K. Kellogg Foundation concerning the proposed regulations on private foundations, 1979. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1979-09-06 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/a6cca9b482dde88002f5dae6a683aac7.pdf effb39967984dd5973c455211738d699 PDF Text Text TESTIMONY OF RUSSELL G. MAWBY CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER W.K. KELLOGG FOUNDATION HOUSE TAXATION COMMITTEE STATE OF MONTANA APRIL 3,1995 Good morning . My name is Russ Mawby, and I am chairman of the Board and chief executive officer of the W .K. Kellogg Foundation, located in Battle Creek, Michigan. I am privileged to be here today and truly appreciate this opportunity to visit with you about a very important matter. As you may know, the Kellogg Foundation, one of the world's largest private foundations, has long been committed to supporting the development of systems to encourage philanthropy and volunteerism nationally - and at the community level. This interest has led to our support for developing and strengthening community foundations in the state of Michigan. �We at the Kellogg Foundation believe in the value of community foundations - the most exciting institutional development in philanthropy today. Community foundations bring permanence and flexibility to those organizations working to solve issues at the community level. Their ability to transfer working assets from one generation to another, their leadership , and their broad viewpoint make them critical components of what we acknowledge as a civil society. In so many ways , they are a major part of the solution for dealing with issues and concerns at the community level. Every citizen in the state of Michigan is indeed fortunate to be served by a community foundation in their local city, township, or village ... partly as a result of the Michigan Community Foundation Tax Credit, which was enacted in 1988. The Kellogg Foundation supports such a tax credit because it helps to build the assets of community foundations . We support the development of community foundations because the most exciting solutions to today's problems are those not coming from Washington , 2 �or even from Helena. They are coming from our local communities. Local leaders are the ones who are closest to problems and the ones best equipped to solve them. Local leaders cannot solve community problems all by themselves. They need arrows for their quivers, and perhaps the sharpest arrow is the community foundation. Community foundations are the most community-based of all philanthropic institutions. They are the most flexible, and they can support a wide range of initiatives to improve the community. Their activities can range from economic development to social services, from recreation to health care, from soup kitchens to neighborhood development. But community foundations are more than money-givers. They also serve as conveners for important community meetings, as "honest brokers" to help build teams of organizations to solve problems. In short, community foundations serve as a catalyst for change. Since 3 �they serve all the interests in the community, they can bring all of them together to make things happen. Because the trustees and staff of community foundations live in their communities, they can help new initiatives with their personal involvement. as well as with funds . We believe the credit helps to build the capacity of these organizations to fund and to lead. Today, I would like to encourage your enactment of a community foundation tax credit for the residents of Montana. This innovative legislation by the state of Montana would provide a strong incentive to encourage charitably-inclined individu als to give to their local communities. Such a tax credit would provide an incentive for other charities to talk . to community foundations regarding the establishment of permanent endowments that are restricted for the use of their organizations. 4 �Because community foundations have the capacity to manage restricted funds for other nonprofits, agencies such as United Way, Girl Scouts, Boy Scouts, Hospitals, Hospice, women's shelters, 4-H Clubs, museums, libraries, school systems, and others have established endowment funds within community foundations throughout Michigan. All of these endowment funds qualify for a tax credit. With such a tax credit, many of these organizations in Montana would, for the first time, be able to strategically plan for their longterm financial security through permanent assets. This is the best "win/win" strategy for everyone in the community. Without a tax credit for community foundations, these other organizations might be years away from having the organizational capacity to handle legally complex planned gifts . By having the community foundation manage the endowments, organizations will receive the benefits of long-term, stabilized funding. 5 �At the same time, the community foundation can grow through managing these assets more efficiently, thereby reducing the costs of managing these funds , while achieving greater growth and returns. In turn, these organizations could receive the tax credit for their permanently endowed funds. The tax credit would provide a tool and incentive to build this community trust between agencies. I see the leveraging opportunity in this small tax advantage as a way to build your communities. I would encourage you to take the long view: that is, if you make your community strong - the state will be strong. Should you pass up such a tax credit for community foundations, I believe that you will lose the opportunity for establishing some new philanthropists in Montana. You will lose one tool for building collaboration at the community level. You will lose an important outreach tool to new donors. And you will lose an incentive for your community nonprofits to establish permanent endowment funds . 6 �We also believe that such a tax credit could serve as a catalyst in the establishment of a network of strong community foundations to serve communities throughout the state of Montana. Such a group of local foundations would be positioned to tackle statewide problems through locally-designed programs. These issues might include water and air quality, youth development, support for the arts, and education reform. This credit would come at a time which is critical to the building of these local funds. Other foundations such as Ford, Lilly, Rockefeller, Mott, Packard, and MacArthur, as well as Kellogg, have provided funding for projects managed by community foundations. These programs can be new dollars coming into states to help solve local problems. The dollars can flow throuqhout the community because the community foundation is there to manage them. 7 �Finally, this tax credit would be an enormous help to the building of capital , both for the community foundations and for other nonprofit charities . I believe that this tax credit would stimulate new donors to start to give to community foundations, and if our experience in Michigan is any indication, they would not change their gifts to other charities. These are new, private monies in permanent endowments that are available to accomplish public good. We would strongly encourage you to support what we believe would be a very effective and beneficial tax policy. Thank you. S:\COMM\PUBLlC\TAXDOC 8 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1995-04-03_RMawby_SPE Title A name given to the resource Russell Mawby testimony before the House Taxation Committee Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Testimony given April 3, 1995 for the W. K. Kellogg Foundation at the State of Montana House Taxation Committee. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Legislation Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1995-04-03 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/8fdbad95d195464e76176712200b4bed.pdf b1c36e2d7d7a9064553746cc9322eb4c PDF Text Text THE ROLE OF THE COMMUNITY COLLEGE IN THE DECADE OF COMMUNITY DR. RUSSELL G. MAWBY Chairman and Chief Executive Offic er W.K. Kellogg Foundation Battle Creek, Michigan Sinc e the 1 9 9 0s seems destined to become the Decade of the Community, ther e will be boundless tremendous impact in opportunities the local for community colleges communi ties they serve by lea d e r s h i p initiatives in the areas of so cietal concern. to hav e developing I am pleased to be invited to comment on community and the role of community colleges in the 1990s. In thinking relates to conc erns. about the common is happening good, I in contemporary wa.s . tempted to society begin with a as it list of However, it would be presumptuous and inappropriate for me to propose such a f act, what long cafeteria list of issues, for each of us knowledgeable about the concerns of our world, is, our country, in our state, and particularly, our home communities. Instead, I have observations chosen about in societal a broad issues overview for which to briefly the share implications five for community colleges and their leadership are rather apparent. Observation 1: The seeming inability of our political processes and institutions to deal with significant issues in substantial ways This is most vivid at the national level. Today, Congress is struggling ineffectively with concerns such as fiscal and financial responsibility, �trade imbalance, the arts, farm programs, energy policy, foreign affairs, child care, and environmental quality. support of Most state politicians are equally ineffective on matters of school finance, state budget, worker's compensation, and a host of other concerns. Technology has politicians. the dramatically the nature of politics and New techniques of sophisticated, instantaneous polling and influence of mass media seem changed to have forced treatment on every issue and personality elected 'o f f i c i a l s to become society and more followers of the herd. only after consensus has been reached, less the leaders of There is a tendency to lead to wait and see which way parade is going, and then rush to its head. the Another change, which has influenced the political process to society's disadvantage, has been the increase in number, variety, groups. Collectively, and effectiveness of special through the concept of entitlement, interest they have handcuffed political responses to changing needs. Today, there are few elected officials who could be described statespersons with vision, commitment, and a concern for the whole. as For voters, patterns of political power also have changed dramatically, with greater diffusion and less loyalty t.o' 'pa r t y and purpose. The net effect of these changes has been the lessening of the government's ability, at all levels, to be a catalyst for social change. This, then, ini tiatives, suggests an enhanced potential which demonstrate new answers to for societal private-sector needs. ventures can provide the vision and comprehensive approach, These which the political process fails to provide. Observation 2: The seeming return (shift back) to local responsibility and control in addressing societal needs For a span of about six decades - from the progressive era at the turn of the century to the late 1960s, and, particularly, beginning with the 2 �New Deal in the 1930s - the federal government took an ever-increasing role in meeting 1970s, that the trend Increasingly, needs has of first the American people. slowed, and now Since seems the to early reverse. states and localities are being asked to deliver services and provide benefits to people at the community level. This situation poses problems for nearly all states and localities and puts pressure on the tax system, especially, to raise revenues to cover increased state and local expenditures. A desirable consequence is that more problems are being identified and dealt with closer to home. And, as we all know, the answers usually lie not in dollars alone, but in the increased commitment and involvement of people who care. are obvious: more Again, opportunities for private-sector initiatives There is a desperate need to become more efficient and effective in using limited resources and in mobilizing local leadership. Observation 3: The dichotomy between the nature of the problems that concern us and the solutions we devise The problems of concern to society tend to be multidisciplinary, overarching, penetrating, and permeating. complex, Each of us can make our own list - inflation, K-12 and higher education, home care for the peace. elderly, To groundwater, the contrary, environmental quality, job generation, the solutions most often devised to address such issues tend to be narrow, discipline- or profession-oriented, and biased, simplistic, and inadequate to the task. A major contribution of community colleges in addressing societal needs can be to encourage and demonstrate programs involve collaboration, and provide continuity. 3 that are comprehensive, �Observation 4: The persistent reluctance to face facts and to deal with reality Resistance to change is a human characteristic, comfortable with evidence is overwhelming, reluctant to things respond. most both individuals and their institutions are a truism that concern, we know better than we do." be of special interest to you: even feel the is Sometimes, of us when It familiar. and most "in most cases of human Think only of the areas that may substance abuse, K-12 education, health care, the environment, or any other. For example, if we think of child development in the early years, we know that age five is too late for societal concern and intervention. Yet, most communities lack comprehensive early-childhood and preschool programs of high quality. The evidence is clear that the elementary years are most important and that school drop-outs can be predicted by grades six or seven. Still, we persist in accrediting our high schools and starving the elementary schools -whenever resources are limited. Furthermore, many teachers will tell you that it takes the first three months of the new school year to catch up to where students were before summer vacation . learning during Yet, the we persist summer in having months a a three-month school-year model break in established nearly 200 years ago by an agrarian society. Another example of reluctance to react to reality and make change is in the area of corrections. Pennsylvania recently When discussing penal reform, commented, person in the state pen, "It costs $24, 000 a the governor of year to keep but only $8,000 a year at Penn State." a Yet, creative efforts to deal with this overwhelming problem are virtually nonexistent. 4 �We as a society, through our institutions and organizations, must put to better use that which is already known. Here community colleges can ·be a key catalyst. Observation 5: The persistence of "turfism" in addressing societal needs Usually programs continuity. human Battle service Creek, for are badly example, fragmented have lack identified voluntary, nonprofit groups directed to the needs of youth. Pluralism competition can also be healthy; we and 67 is good; In of but infighting, adversarial stances, and combative behavior are not! The clearest example in our hometown was hospitals, virtually across the street from each other, from less than 50 percent occupancy. host of in health care. other Department health of Public care In addition, organizations Health, American Cross, each suffering we have the usual Visiting Red We had two Nurse Hospice. Service, Meals on Wheels, voluntary ambulances services, and many more. Unhappily. while each is composed of intelligent, able. dedicated, and well-intentioned individuals, each also tends to address issues from the perspective of their organizational or institutional objectives. is concerned activities with of its others own niche, and too with often not insufficient sensitive attention comprehensive health needs of the people of the community. Each to to the the In Battle Creek, we finally succeeded in getting the two hospitals to merge. Now we are in the process of getting the other players to join the team. Again, colleges there to is· a be an challenge influence and in a great bringing comprehensive, collaborative, and continuous. 5 opportunity about for services community that are �Growing out of these observations are four thoughts -- two concerns and two challenges about community colleges and their role in the decade of community that I have briefly chosen to share. Caution 1: Don't succwnb to the temptation to become something other than what society desperately needs you to be. The role that community tremendously significant. growing, successful colleges But, playing in communities is there is increasing temptation for any institution bigger or more structured. is to change, to evolve into something Many community colleges have started down the path to become four-year institutions. In my opinion, this is a tragic mistake. Look at the numbers in my home state of Michigan. established colleges and universities. When There are 15 state- you examine budget it is clear that 15 is more than we can afford. the state Each of these 15 institutions does little to vary from the same, rather rigid approach to higher education -- teaching essentially in a highly structured pattern of courses, for credit, in classrooms, on campus. Michigan also has 29 with needs the concerned special with classroom to community colleges, teaching, of not the each unique, communities research, the people -- whether on and they are campus, each concerned serve. willing in a to local They are take the elementary school, or in a nearby mechanic's shop -- at times when people are able to participate. We, as a community and as a society, need community colleges to remain true to their original vision and mission. Caution 2: As institutions protocols, divisions, Fight the tendency to become institutionalized. grow procedures, departments, there is a tendency and to build walls catalogs, establish patterns, through the development calendars, 6 to contracts, etc. of In �institutions that have undergone this evolution something doesn't fit into a prescribed small box, to rigidity, if it simply cannot be done. John Gardner may have put it best in his book entitled, The Individual societies are and the young, Innovative they are Society: flexible, "When fluid, not Self-renewal: organizations and yet paralyzed by rigid specialization and a willingness to try anything once. As the organization or society ages, vitality diminishes, flexibility gives way to rigidity, creativity fades and there is a loss of capacity to meet challenges from unexpected directions." Community colleges have to avoid this type of institutionalization that can lead to a lack of sensitivity to the needs of the community. Community college leaders must work to keep their institutions flexible entities in a changing community. Challenge 1: To be even more responsive to the needs of the community. Community colleges are by tradition committed and experienced to be a leader in addressing community concerns. In this decade of community, community colleges will be challenged to be even more proactive and more of a catalyst in collaboration than they have in the past. think of your individual community's agenda, list of issues emerges. are endless and The possible roles distinctive to each When you I am sure a rather lengthy for the community college community. They have the opportunity to transform local communities through their resources and their ability to act as an agent of change. Challenge 2: To play an increasingly major role with nonprofit organizations in your community. When you look at life at the community level, much of its character, its quality, its organizations. caring is connected Imagine your with nonprofit community without 7 institutions the nonprofit and sector. �There would be no churches or religious organizations; activities would be youth education. severely damaged, as social service would efforts in adult and Without the nonprofit sector, the arts and health care would be virtually nonexistent. In this decade of community, where responsibility has been shifted but resources, for the most part, remain at the federal and state level, the need for development, training, and collaboration among organizations in the nonprofit sector is essential for their survival. Community colleges can play an increasingly important role in providing preservice and inservice training for nonprofits, their staff, and their boards. I am convinced that changes that will come in our society will be a result of the work of volunteer citizen boards. Those organizations that have become institutionalized cannot be changed from within, only the work of ci tizen boards archi tects and energizers -- of change will alter these organizations to meet the increasing needs of community. While all nonprofits are well-intentioned in the community, many efforts are fragmented and lack a common focus. In Battle Creek, for example, there are 87 agencies working with youth. Seldom does one know what the other of providing a is doing and there is never talk continuum of service and educational opportunities for young people in our community. Community colleges have the ability, organizations and to assist them through their resources, in developing these to focus comprehensive approaches to issues and concerns of the community. In conclusion, it is clear that most of the significant new directions imperative to our societal future will not be charted by government. In fact, many elected officials are almost desperate for better answers or proposed solutions to perplexing issues. their unique ability to react to local Community colleges, because of and regional needs must be responsive to changing societal circumstances and opportunity. Community creative, level. colleges have a rich collaborative approaches tradition of innovation, to human concerns nurturing at the community These traits will be needed more than ever before in the 1990s 8 �the decade of community. A decade that can be, should be, and will be the de cade of the community co llege, if you choose to make it so. 9 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1992-09_RMawby_SPE Title A name given to the resource Russell Mawby speech, The Role of the Community College in the Decade of Community Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September, 1992 for the W. K. Kellogg Foundation on the importance of community colleges in the community. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1992-09-01 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/6b3fa39b7b5155c2c68d0db3e7290e98.pdf dc058589b1bb0abffb4a9ef95513ea91 PDF Text Text THE UNIVERSE OF .QU\J"""TIO YOUTH W'by, Director Russ 11 G. Divi ion of icultur W. elio Fo tion To be vith you for thi ppreci ted privil ch in vi th to m t one provo tive . ch- l!01ioTC"oIrer, I my n urpos ten ion du b Foun t ion , tt 0 rtunities of ut 0 vorld vi . K 110 ro r Foun t ion . spen ibi 11tics in th ch uc ton . n to tho Th of Ext naion rci 1 a lpeo l , icult ur, nt . ce pted the i nvi t ion 0 part of t his pro Lloyd Rutle l e th e ture of t dift' rent than your , our interest i v to t , I vill not dv 11 on , youth deve10 lly t of t h Foun tion i in S B to curr nt reapensibiliti my tion r e very ti C is th th W. in s co or , I t n dir ctions i n co I 100 n you, individual ly fo dto ny col l ct i vely, on pro 1 illtere t . Th1 rni l i f'yi confid nCe I int n ut th s t you v i l l your own di eussion s ion . dir etly to e rt in nd t nts: t io vith inter i tin and uld ob of the Kelio Th rticular Conference pon ibil iti Un!versity nd ErtelLGion, lly velcome the OpPOrtunity es in 4-H . of thi r unexpect i spected nd coveted co ll i l l y, vile t ete cription of d r ' Conf erenc Of course , I pereo my the t h 1 4-H Le tio p eta of s. r obs rvations into proper turc pro essio Fir t - to r efl ct ttedly over- C experi 11 ttee ve on our discus ion of t I do t hi vith r spect i v on thro th specific nay nd Tue , • �n our C ." hip t lad v1 rn vi 1n nte t ebni 1n 1 1n 0 prof' t, e1 11 t10nj t pro tha be I I t ut prof 10 11 nt. tth t rs 1 1b111ty 1 11 lc 1n eo et10 et 0 ur eo p of yo • On to l1ve of our ly I I to h lp tb t poin I Dr. �- 3 • it to i ell ti ion of co ~ ''l!.T'ltl i • T1lll' I On robl I tio it i of 1n:t'1d 11ty to on ch ly 1n.teJ:"de:per.1.d1 e n t .............. i r 8hi e, f1 1r e2i!lPhi:~s1 of au thc)U,g;h't-proVOlUIllg d1 CU8 10n 0 r ity on 10n t rv D1r e 4- e. fort th in .1AIlCl~lirs.n·t UA.I~ Un1 r i ty BVI~'te!'m rei y of to rvi r 4. yout in t of 1 . n1 rahi to then , v 10 e1 1 c P. of view' in I v1ll ev 10 d thr re ultant d1 r1 te, c for to to hip, lat10 11 th1 Un1 1 erea.s1r.tg rr in 10 e rvat10ns ndorD~~ut nt ...n t• ., ... of c 1 rof ob trer::leJ1CIOUS OOil~rer. eon:f'id byt chaJ.le bett r job. 10 not c 1n both Be pr implie1t 11 sen~tion th discus 10 to f1 n um:msvclred t, tion of JAJlO.~liI"3l.Ut Un1v r 1 ty �- 4n ien i ndu t 1on ; i t 1b1 l1 t i 1 I 4 - o f t - co Coo I npus you d 10 n t ion t o t t Un1 r s i t I 1 A~'''''''''' '' t o c o n t r i ion U n ! ri t y ' C1'">n1n.." , . , : 1 u h . " ' f " . l " I f ' r t I o r tt h i n �- 5t 10 ot iv1 1. �-6th1 i n 1 con er no r r 1e t conv ie t10 , rp r c ) c edw : a l 1 . VO l l ILt p e c )p J . e . I n0 "e x l ; ,e n to f I n c j o r1n: 'l.u: ~no. l i n l y ' ,( b ) 1 ,U lo ' /A l ; :u t: ( ) , ch CO : : i : lCU l l1 ty I I. O \U ' " w i th Th u l t1m a t e b 1 ObO l f rV ' l' l . t1 . t t .:J. . . . 'OU "U ' w i l l t o o lthe :mne ~ 1~'~~ o r1 o r 1 o n , " t n o �1tnss1J%U , . ) • 1 ) , I d eV .U~l 1C!nt 0 rt. m~JAlut1 . . . . . . .1 . " ' \ .04 , Jvo . ; r : ! 1 '0 . 11 : .h e · r , YO l l th , I t )1 2 . o t l l e r1 1 m t 'A " " ' 1 1 n , ? ] , yd 1 f ' : t1 �3 . le~n1I .:: o r1 t . t .1ontomnr-nu l l ! t .h , v i 1 , r1 5 . , . . . . 1 J \ . .u . . . . c h m o t i , r a t o . 1 o,u t t o d: y yo v i C . , " e1 Y ' , co. ,Inc . , ��- 10 ri, t llty to 0 1 oJ -''-'''> I . viti nI to with th lly Thi r inc1 �- 11 - ily not • • in .;;:;x'WIlDie '... .... ''''............ 0 'W' COltlulm1.n.:.Ltion I Bu �o 1 , " ,I ' ' " "~"" " '..... . ,U f . .1" ' . . . . _ ,. . . . . ~~ ..." 11 1 1 . t no t 1 11 "o r t 1 1 �t ocon t t 1 1 ,0 t t a t r t . n r :L l y ......., " " ...r 1 pm : -po. c e ' l " C UJ 1~1 1 no -, th l re :J . , to IW l t l ,d i n pe4 ; )1 )JLe, 1 t t o o c lt yden r an c lB 1 b l, �-1 - 5 . 1.n t1"" ""·~r t r o l , � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1977-09-09_RMawby_SPE Title A name given to the resource Russell Mawby speech, Youth in the Universe of Education Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 9, 1977 for the W. K. Kellogg Foundation at the National 4-H Leader's Conference. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Youth Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1977-09-09 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/208a5173ff48e3604a5e91642573048d.pdf 83feced43505b89105857e25c29a5a78 PDF Text Text PAGE 1 HTHE GREATEST OPPORTUNITYH DELIVERED AT HTOWN AND GOWN H BREAKFAST UNIVERSITY OF NEBRASKA AT LINCOLN WEDNESDAY, SEPTEMBER 7, 1988 DR. RUSSELL G. MAWBY CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER W. K. KELLOGG FOUNDATION THE TOPIC ON WHICH I HAVE BEEN ASKED TO COMMENT THIS MORNING IS HYOUTH IN CRISIS. H I WILL TALK ABOUT SOME OF THE PROBLEMS THAT OUR YOUNG PEOPLE FACE AND DESCRIBE SOME POSSIBLE SOLUTIONS. THESE SHOULD NOT BE CONSIDERED, HOWEVER, TO BE THE HOFFICIAL AGENDA H OF THE W. K. KELLOGG FOUNDATION. THE KELLOGG FOUNDATION HAS FROM ITS VERY FOUNDING HELD THE PHILOSOPHY THAT THE FOUNDATION DOES NOT HAVE THE ANSWERS TO THE PROBLEMS OF PEOPLE. RATHER, WE ARE ISSUE-ORIENTED, IDENTIFYING CERTAIN PROBLEMS WHICH SEEM TO BE OF SIGNIFICANCE TO SOCIETY. BUT WE DO NOT ATTEMPT TO BE PRESCRIPTIVE, THAT IS WE DO NOT TELL PEOPLE HOW TO SOLVE THEIR PROBLEMS. WE ARE ANXIOUS TO BE INVOLVED WITH THOSE WHO SHARE OUR CONCERN AND ARE TRYING TO DO SOMETHING ABOUT IT. WE WILL WORK WITH THEM TO SHARPEN AND REFINE THEIR IDEAS, BUT ULTIMATELY, SINCE THEY ARE THE ONES WHO MUST DEAL WITH THEIR CONCERNS, THE ANSWERS MUST COME FROM THEM, NOT FROM US. RECENTLY IN MY READING, I CAME ACROSS A VERY STRONG COMPLAINT ABOUT YOUTH. THE YOUNG: THE WRITER HAD THIS TO SAY ABOUT �PAGE 2 "OUR YOUTH NOW LOVE LUXURY -- THEY HAVE BAD MANNERS AND CONTEMPT FOR AUTHORITY. . . . CHILDREN ARE NOW TYRANTS -- NOT THE SERVANTS OF THEIR HOUSEHOLDS. THEY CONTRADICT THEIR PARENTS . . . AND TYRANNIZE THEIR TEACHERS . . . " THIS STATEMENT SOUNDS VERY MUCH LIKE THE STUMP SPEECH OF SOMEONE RUNNING FOR OFFICE, OR THE CRY OF A DISTRESSED PARENT, OR PERHAPS THE COMPLAINT OF THE FRUSTRATED TEACHER OR SCHOOL ADMINISTRATOR. BUT THE QUOTATION IS ACTUALLY ATTRIBUTED TO SOCRATES WHO LIVED IN THE 5TH CENTURY, B.C. WE CAN SEE FROM THIS STATEMENT THAT THE CONCERN FOR YOUTH IS NOT A PHENOMENON NEW TO SOCIETY; IN FACT, VIRTUALLY EVERY GENERATION SINCE HISTORY HAS BEEN RECORDED HAS EXPRESSED GRAVE CONCERN ABOUT THE FUTURE OF THEIR YOUNG PEOPLE. BUT IT MIGHT SEEM TO US THAT WE HAVE MORE LEGITIMATE GROUNDS TO COMPLAIN THAN HAS ANY OTHER PREVIOUS GENERATION. ONE NEED ONLY POINT TO THE CONSTANT BOMBARDMENT OF ARTICLES IN THE MEDIA AND STORIES ON THE TELEVISION NEWS ABOUT SKY-ROCKETING DROPOUT RATES, DISCOURAGINGLY HIGH PERCENTAGES OF UNEMPLOYED YOUTH, A VIRTUAL EPIDEMIC OF TEEN PREGNANCY, THE FRIGHTENING AND GROWING INSTANCES OF SUBSTANCE ABUSE, THE UNPRECEDENTED LEVELS OF TEEN SUICIDE, THE INCREASING EVIDENCE OF �PAGE 3 ANTISOCIAL BEHAVIOR, THE APPALLINGLY HIGH RATES OF ILLITERACY, AND THE GENERAL LACK OF MOTIVATION AMONG OUR YOUNG PEOPLE. IT IS ESPECIALLY EASY TO BECOME DEPRESSED WHEN WE LOOK AT THE IMPACT A LACK OF OPPORTUNITY HAS HAD UPON THE YOUNG OF MINORITIES AND THE POOR. BUT THESE GRIM STATISTICS DO NOT TELL THE ENTIRE STORY. THESE SAME STATISTICS PAINT QUITE A DIFFERENT PICTURE: SIXTY PERCENT OF ALL TEENAGE GIRLS DO NOT BECOME PREGNANT. SEVENTY PERCENT OF ALL TEENAGERS DO NOT REGULARLY GET DRUNK. SIXTY PERCENT HAVE NOT REGULARLY USED MARIJUANA FOR AT LEAST A YEAR, AND 73 PERCENT OF EIGHTH GRADERS EVENTUALLY GRADUATE (AND, ACCORDING TO FIGURES RECENTLY RELEASED BY THE DEPARTMENT OF EDUCATION, THE PERCENTAGE OF STUDENTS WHO DROP OUT HAS BEEN SLOWLY FALLING OVER THE LAST 15 YEARS). LEAVING ASIDE STATISTICS FOR THE MOMENT, WE MIGHT CONSIDER OUR OWN PERSONAL EXPERIENCE. I WOULD WAGER THAT EVERYONE OF US KNOWS PERSONALLY OR COMES INTO CONTACT DAILY WITH DOZENS OF YOUNG PEOPLE WHO ARE ALERT, INTELLIGENT, PATRIOTIC, HONEST, HARD-WORKING, AND AMBITIOUS. ARE WE TO MAKE OF THE STATE OF TODAY'S YOUTH? SO WHAT MANY, TOO MANY, OF OUR YOUNG PEOPLE ARE HAVING SERIOUS PROBLEMS. THERE IS GROUNDS FOR CONCERN AND A NEED FOR ACTION. WE MUST NEVER FORGET THE POSITIVE ASPECTS AS WELL. BUT WE MUST NOT OVER-REACT BUT RATHER CALIBRATE OUR PROPOSED SOLUTIONS TO MEET THE TRUE DIMENSIONS OF THE PROBLEM. �PAGE 4 FROM MY VANTAGE POINT WORKING FOR A FOUNDATION THAT HAS BEEN HISTORICALLY INTERESTED IN YOUTH, I AM ABLE TO SEE LITERALLY SCORES OF SUCH PROPOSED SOLUTIONS EVERY YEAR. THE GREAT TENDENCY IN AN ERA OF SPECIALIZATION AND SPECIAL INTEREST, IS TO ADOPT A CRISIS MENTALITY TO DEAL WITH THE BITS AND PIECES OF PROBLEMS: WE HAVE ALL HEARD OF THE CRISIS OF THE ENVIRONMENT, THE CRISIS OF HEALTH CARE, THE CRISIS OF ECONOMIC DEVELOPMENT. GRANTED, THESE ARE ALL CRITICALLY IMPORTANT ISSUES ON SOCIETY'S AGENDA. BUT THEY ARE ALSO COMPLEX PROBLEMS WHICH HAVE EVOLVED OVER A LONG PERIOD. IT IS UNLIKELY THAT A SPECIFIC APPROACH OR A QUICK SOLUTION WILL BE SUFFICIENT TO SOLVE THEM. AS GRANTMAKERS, WE ARE CONFRONTED WITH MANY PROPOSALS THAT ARE VERY NARROW AND SPECIFIC. ON THE SUBJECT OF YOUTH, THESE PROPOSALS FREQUENTLY ZERO IN ON SUCH NARROW AREAS AS SUBSTANCE ABUSE, TEEN PREGNANCY, OR THE DROPOUT PROBLEM. THEY TEND NOT TO DEAL WITH THE LARGER AND MORE PERVASIVE ISSUES IN A YOUNG PERSON'S LIFE SUCH AS THE HOME AND FAMILY, THE NEIGHBORHOOD AND SOCIAL ENVIRONMENT, EDUCATIONAL AND LEISURE-TIME OPPORTUNITIES. I AM SIMPLY SUGGESTING THAT IT IS TIME THAT WE AS A NATION LOOK MORE COMPREHENSIVELY AT YOUTH IN CONTEMPORARY AMERICAN SOCIETY. FINE. DO WE LIKE WHAT WE SEE? IF SO, THAT IS IF NOT, WE NEED TO DO SOMETHING ABOUT IT. SURELY, �PAGE 5 EVERYONE WILL AGREE THAT THOSE YOUNG PEOPLE WHO ARE MOST AT RISK MUST BE HELPED. LESS OBVIOUSLY, WE NEED TO FIND WAYS TO HELP THOSE WHO ARE NOT TECHNICALLY AT RISK STAY OUT OF TROUBLE. WE NEED TO CHALLENGE THEM; WE NEED TO FIND WAYS TO MAKE SURE THAT THEIR LIVES ARE TOO FULL OF INTERESTING AND EXCITING THINGS TO DO TO FIND TIME TO GET INTO TROUBLE. BEFORE. THINGS ARE DIFFERENCT TODAY THAN EVER MANY OF THE CHANGES IN SOCIETY HAVE GREAT IMPACT ON THE PROCESS OF GROWING UP. LET ME ILLUSTRATE WITH JUST FOUR ISSUES . . . ONE NEED ONLY LOOK AT THE CHANGING DEMOGRAPHICS OF THE AMERICAN FAMILY TO UNDERSTAND WHY SO MANY YOUTH TODAY ARE IN 1955, 60 PERCENT OF ALL AMERICAN HAVING PROBLEMS. FAMILIES CONSISTED OF A WORKING fATHER, A MOTHER WHO WAS A HOMEMAKER, AND TWO SCHOOL-AGE CHILDREN. By 1985, LESS THAN TWO GENERATIONS LATER, THAT NUMBER HAD SHRUNK TO SEVEN PERCENT. THE DEMOGRAPHERS TELL US THAT OUT OF EVERY 100 CHILDREN BORN TODAY, 12 ARE BORN OUT OF WEDLOCK AND 40 ARE BORN TO PARENTS WHO WILL BE DIVORCED BY THE TIME THE CHILD REACHES 18. ONE-HALF OF THESE CHILDREN WILL LIVE IN A HOME WITH THE MOTHER WORKING OUT OF THE HOUSEHOLD. WHETHER WE LIKE IT OR NOT, THESE ENORMOUS DEMOGRAPHIC SHIFTS MAKE A DIFFERENCE IN THE LIVES OF CHILDREN. �PAGE 6 YET IN OUR SOCIETY, WE FACE THESE MASSIVE CHANGES WITH INSTITUTIONS THAT ARE ESSENTIALLY UNCHANGED. WE NEED TO BE MORE RESPONSIVE TO THE NEW NEEDS THAT THIS NEW SOCIETY HAS BROUGHT WITH IT. LET ME BE MORE SPECIFIC AND TALK FOR A MOMENT ABOUT THE AREAS WHERE CHANGES MUST COME: 1. EARLIEST CHILDHOOD -- RESEARCH HAS REPEATEDLY DEMONSTRATED THAT THE MOST IMPORTANT TWO YEARS IN A PERSON'S LIFE ARE THE FIRST TWO. WE MUST WORK TO ENSURE THAT THE BEST QUALITY OF CARE AND NURTURING IS ACHIEVED DURING THOSE TWO CRITICAL YEARS. 2. PARENTING -- ALL PARENTS ARE AMATEURS. WE NEED TO FIND NEW WAYS TO PREPARE PARENTS FOR THIS MOST IMPORTANT RESPONSIBILITY OF THEIR LIVES. THE PROBLEM BECOMES EVEN MORE ACUTE WHEN WE CONSIDER THAT WE HAVE THE PHENOMENON OF CHILDREN HAVING CHILDREN. I WAS RECENTLY AT A MEETING WHICH CONSISTED OF GRANDMOTHERS -- ALL OF WHOM WERE BETWEEN 25 AND 30 YEARS OF AGE. THIS IS A PARTICULARLY IMPORTANT NEED WHICH MUST BE ADDRESSED SOON. 3. PRESCHOOL EDUCATIOI~ -- AGAIN, ALL THE RESEARCH IN THIS AREA SHOWS THAT SYSTEMATIC SCHOOLING SHOULD START EARLIER THAN IT NOW DOES. YET PUBLIC SCHOOLS CONTINUE TO BE INTERESTED IN CHILDREN ONLY IF THEY TURN FIVE BY DECEMBER 1. 4. LATCHKEY CHILDREN -- INCREASINGLY, WITH TWO PARENTS WORKING, CHILDREN LEAVE FROM AND COME HOME TO AN EMPTY HOUSE. SURELY THERE MUST BE A BETTER WAY OF SCHEDULING THE SCHOOL DAY TO ACCOMMODATE CHANGING SOCIETAL NEEDS. 5. THE ROLE OF THE HOME AND FAMILY IN FORMAL EDUCATION -- IN THE PAST, WE HAVE BEEN CONTENT TO SEND OUR CHILDREN OFF TO SCHOOL TO BE EDUCATED AND NOT TO TAKE A VERY ACTIVE ROLE IN THAT PROCESS. BUT, IT IS BECOMING INCREASINGLY CLEAR THAT FOR EDUCATION TO TRULY HAVE IMPACT, WHAT GOES ON IN THE CLASSROOM MUST BE REINFORCED AT HOME AND VICE VERSA. WE CLEARLY NEED TO HAVE MUCH GREATER TEAMWORK IN THIS AREA THAN WE DO AT PRESENT. �PAGE 7 JUST AS THERE HAVE BEEN ENORMOUS CHANGES IN THE FAMILY, THERE HAVE ALSO BEEN TREMENDOUS CHANGES IN THE ECONOMY WHICH HAVE AFFECTED CHILDREN. WHEN I WAS A YOUNGSTER GROWING UP ON A FRUIT FARM IN SOUTHWESTERN MICHIGAN, I WAS GIVEN CHORES TO DO AT AN EARLY AGE -- NOT JUST BUSY WORK OR MAKE WORK. THESE CHORES WERE IMPORTANT TO THE LIVELIHOOD OF MY FAMILY. AT THAT TIME, CHILDREN WERE AN ECONOMIC ASSET FROM A VERY YOUNG AGE. TODAY, IN THE AFFLUENT WORLD IN WHICH WE LIVE, CHILDREN ARE AN ECONOMIC LIABILITY. THEY MAY HAVE CHORES, BUT REALLY DO NOT CONTRIBUTE THAT MUCH TO THE LIVELIHOOD OF THE FAMILY. TODAY'S YOUNG PEOPLE ARE CAUGHT IN A DOUBLE BIND. THE AGE OF PUBERTY CONTINUES TO DROP EVEN AS THE TIME OF PREPARATION NEEDED TO TAKE ONE'S PLACE IN SOCIETY CONTINUES TO LENGTHEN. THE RESULT IS A PROLONGED PERIOD OF DEPENDENCY, AN EXTENDED ADOLESCENCE, IF YOU WILL. DURING THIS TIME, IT IS EASY TO BECOME BORED AND DISILLUSIONED. WE NEED TO BE FAR MORE CREATIVE THAN WE HAVE BEEN IN FINDING USEFUL AND MEANINGFUL WORK FOR THESE YOUNG PEOPLE. WE ALSO SHOULD EXPLOIT TO A MUCH GREATER DEGREE THAN WE HAVE VOLUNTEER ROLES FOR YOUNG PEOPLE THE OPPORTUNITY TO DO TRULY MEANINGFUL AND IMPORTANT WORK, NOT FOR PAY, BUT FOR THE GOOD OF PEOPLE. CHILDREN NEED TO BE PRODUCTIVE . . . THEY NEED TO CONTRIBUTE. THEY DO NOT WISH TO ALWAYS BE THE BENEFICIARY ANYMORE THAN DO RESPONSIBLE ADULTS. �PAGE 8 I HAVE COMMENTED ON SOME OF THE SWEEPING CHANGES IN THE FAMILY AND IN SOCIETY. NOw LET'S TALK ABOUT THE CHANGES -- OR LACK THEREOF -- IN THE SCHOOLS. WE HAVE IN OUR NATION'S SCHOOLS AN ESSENTIALLY AGRARIAN MODEL THAT WAS PARTICULARLY USEFUL IN THE 19TH CENTURY, HAS BECOME INSTITUTIONALIZED IN THE 20TH, AND WILL PROBABLY ENDURE INTO THE 21ST. THE SCHOOL DAY WAS INITIALLY SET FROM 9:00 TO 4:00, WHICH MADE SENSE BECAUSE YOU HAD TO DO YOUR CHORES BEFORE YOU WENT TO SCHOOL, AND YOU HAD TO GET HOME IN TIME TO DO THEM AGAIN IN THE AFTERNOON. THE SCHOOL YEAR WAS SET TO RUN FROM LABOR DAY TO MEMORIAL DAY WHICH, OF COURSE, ALLOWED FOR THE CHILDREN TO BE HOME DURING THE BUSY SUMMER MONTHS. WHILE FEW LIVE ON FARMS TODAY, STILL HAVE PRECISELY THAT CALENDAR. WE THIS CALENDAR AND THIS TIME FRAME ASSUMED THAT THE PARENTS WERE AT HOME AS INDEED MOST OF THEM WERE AND, AS INDEED, THE MAJORITY ARE NOT TODAY. THIS ENTIRE MODEL WAS EVOLVED FOR THE NEEDS OF THE ONE-ROOM SCHOOL HOUSE. IF WE WERE TO DEVELOP THE CALENDARS AND SCHEDULES APPROPRIATE FOR TODAY, WE WOULD DEVELOP A QUITE DIFFERENT PATTERN. WE WOULD SURELY MAKE THE SCHOOL DAY LONGER TO ELIMINATE THE LATCH-KEY PROBLEM AND WORK OUT AN ARRANGEMENT WHEREBY SCHOOL WOULD BE PLANNED DIFFERENTLY THROUGH THE YEAR. THIS IS PARTICULARLY IMPORTANT SINCE STUDIES HAVE SHOWN AGAIN AND AGAIN THAT WHEN CHILDREN BEGIN SCHOOL AFTER A THREE-MONTH VACATION IT TYPICALLY TAKES THEM TWO TO THREE MONTHS TO CATCH UP TO WHERE THEY HAD BEEN. �PAGE 9 THE SCHOOL AS AN INSTITUTION NEEDS TO BECOME MUCH MORE RESPONSIVE IN VERY FUNDAMENTAL WAYS TO THE CHANGES IN THE WIDER SOCIETY. SPECIFICALLY: WE SHOULD CONSIDER A YEAR-ROUND SCHOOL YEAR. WE NEED UNIVERSAL PUBLIC PRESCHOOL EDUCATION BEGINNING AT LEAST AT AGE FOUR AND PREFERABLY AT AGE THREE. WE NEED PROVISION FOR DAY-CARE AND LATCH-KEY CHILDREN. AND WE SHOULD LOOK CAREFULLY AT THE PRIORITIES FOR ALLOCATION OF RESOURCES. AS AN ASIDE, I USED TO SERVE ON A SCHOOL BOARD, AND I ALWAYS ASKED THE ADMINISTRATORS WHY THEY FORCED US TO MAKE THE WRONG CHOICES. WHEN TIMES WERE TOUGH, WE WERE COMPELLED TO CUT RESOURCES FROM THE ELEMENTARY BUDGET TO PUT THEM INTO THE HIGH SCHOOL BUDGET SO THAT THE HIGH SCHOOL COULD RETAIN ITS ACCREDITATION. AND YET RESEARCH SHOWS CONVINCINGLY THAT THE EARLY YEARS ARE CRITICALLY IMPORTANT, MORE SO THAN THE LATER YEARS. WHY NOT ACCREDIT THE ELEMENTARY SCHOOLS -- AND LET HIGH SCHOOL GET THE RESIDUAL? SCHOOLS CANNOT DO EVERYTHING. TO ALL PEOPLE. THEY CANNOT BE ALL THINGS BUT SOCIETY'S NEEDS HAVE CHANGED SO DRASTICALLY THAT THEY MUST BECOME MORE RESPONSIVE. IT IS INSTRUCTIVE TO CONSIDER THE WAY THAT OTHER SOCIAL INSTITUTIONS HAVE CHANGED TO MEET THE DIFFERENT NEEDS OF THE POPULATION. I CAN REMEMBER A TIME WHEN BANKS WERE OPEN FROM 10:00 UNTIL 2:00. NOW, I CAN GO TO MY BANK THROUGH AUTOMATIC TELLER MACHINES AND COMPLETE TRANSACTIONS 24 HOURS A DAY, 365 DAYS A YEAR. NOW SURELY, IF BANKS CAN BECOME THAT RESPONSIVE TO THE NEEDS OF THE PUBLIC, SO CAN THE NATION'S SCHOOLS. �PAGE 10 THE FOURTH AREA OF CHANGE THAT HAS SUCH IMPACT UPON AMERICAN YOUTH, IS THE FRAGMENTATION OF THE INFLUENCE AND SERVICES THAT OUR SYSTEMS AND PROGRAMS HAVE DEVELOPED. THERE IS SIMPLY A MULTIPLICITY OF SOCIAL PROGRAMS AND ADMINISTRATIONS OUT THERE IN THE REAL WORLD, AND MANY OF THEM ARE AT WAR WITH EACH OTHER AND CERTAINLY ARE INCONSISTENT AMONG THEMSELVES. EXAMPLE. LET 'S TAKE A CONCRETE SUPPOSE THAT YOU ARE THE PREGNANT TEENAGE DAUGHTER OF AN ADC MOTHER, YOU ARE HAVING DIFFICULTY IN SCHOOL, AND GET PICKED UP FOR SHOP LIFTING. THINK OF THE NUMBERS OF ORGANIZATIONS WITH WHICH YOU WILL HAVE TO DEAL -- WITH THE SOCIAL WELFARE SYSTEM; WITH THE PUBLIC HEALTH SYSTEM; WITH OUR SYSTEM OF JUSTICE, AS DELIVERED THROUGH THE COURTS; WITH THE SCHOOLS; WITH THE STATE EMPLOYMENT OFFICES. IF YOU HAVE EVER DEALT WITH THE MEDICAID SYSTEM, YOU KNOW HOW DIFFICULT IT IS EVEN FOR WELL-EDUCATED PEOPLE WITH FEW CHALLENGES TO DEAL WITH BUREAUCRACY. IMAGINE THE BEWILDERMENT THIS YOUNG PERSON, LABORING UNDER MULTIPLE DIFFICULTIES, MUST FEEL. AT THE KELLOGG FOUNDATION WE ARE TRYING TO ENCOURAGE SOME EXPERIMENTAL EFFORTS TO FURTHER THE BEST INTERESTS OF ALL OF OUR YOUNGSTERS. WE ARE PERSUADED THAT MORE EFFORT SHOULD BE MADE TO DO THE FOLLOWING: �PAGE 11 1. COMMUNITY-BASED EFFORTS -- THE PROBLEMS OF PEOPLE ARE TOO IMPORTANT TO LEAVE THEM TO THE PROFESSIONALS. CITIZENS MUST BE INVOLVED IN EVERY PHASE -- DISCUSSION, PLANNING, EXECUTION, EVALUATION OF EVERY PROJECT THAT HAS TO DO WITH THEIR OWN WELL BEING. 2. COMPREHENSIVE -- ALL OF THE INFLUENCES DIRECTLY AFFECTING THE CHILD MUST BE CONSIDERED -- HOME, FAMILY; NEIGHBORHOOD; SCHOOL; CHURCH; AGENCIES AND AREAS OF GOVERNMENT; THE COURT; VOLUNTARY SERVICES AND PROGRAMS. 3. COLLABORATIVE -- THE SCHOOLS MUST WORK WITH VOLUNTEERS. YOUTH PROGRAMS MUST WORK WITH THE JUSTICE SYSTEM. THE PROBLEMS WITH WHICH WE GRAPPLE ARE TOO COMPLEX FOR ANY ONE PERSON OR ANY ONE ORGANIZATION TO SOLVE THEM ALONE. TEAMWORK IS ABSOLUTELY ESSENTIAL. 4. CONTINUITY -- THE PROBLEMS THAT WE FACE HAVE EVOLVED OVER MANY YEARS. IT IS SIMPLY IMPOSSIBLE THAT A QUICK FIX WILL SOLVE THEM. WE NEED TO COMMIT OURSELVES AND OUR RESOURCES TO STAY AS LONG AS IT TAKES TO FINISH THE JOB. AND THAT MAY WELL BE A GENERATION, OR EVEN MORE. WHAT GOAL SHOULD WE HAVE? SIMPLY THIS: TO MAKE OUR COMMUNITY THE BEST PLACE IN THE "WORLD IN WHICH TO BE BORN AND GROW UP. I AM HERE TODAY TO TALK WITH THE LEADERSHIP OF THE UNIVERSITY OF NEBRASKA SYSTEM TO SEE IF THERE ARE WAYS IN WHICH THE MAGNIFICENT KNOWLEDGE RESOURCES THAT THIS UNIVERSITY HAS CAN BE MOBILIZED MORE EFFECTIVELY TO DEAL WITH THE PROBLEMS FACED BY YOUTH AND BY SOCIETY. THIS, IN MY ESTIMATION, IS THE GREATEST OPPORTUNITY THAT WE AS PROFESSIONALS HAVE: FULLEST POTENTIAL. TO HELP OUR YOUNG PEOPLE REACH THEIR �PAGE 12 THE YEARS AHEAD SHOULD BE EXCITING FOR OUR YOUNG. THEY SHOULD BE CHALLENGING AND FUN, NOT THREATENING AND STRESSFUL. THEY SHOULD BE REWARDING AND ENRICHING, NOT INTIMIDATING AND BORING. OUR YOUNG PEOPLE SHOULD BE EXCITED BY LIFE; MANY OF THEM ALREADY ARE, BUT ALL SHOULD BE. DEMOGRAPHICALLY, WE NEED EVERY ONE OF OUR YOUNG PEOPLE TO BE MOTIVATED, CREATIVE, RESPONSIBLE, AND PRODUCTIVE. THE CHARGE IS TO RESPOND TO THE CHANGING CIRCUMSTANCES OF TODAY, TO ADOPT NEW AND EXCITING PROCEDURES, TO CHANGE OUR POLICIES AND OUR INSTITUTIONS TO A NEW DAY AND A NEW WAY. GIVEN THE LESSONS OF HISTORY, DO WE HAVE GROUNDS FOR OPTIMISM? WE SHOULD BE GRATEFUL TO REALIZE THAT, DESPITE UNPARALLELED TEMPTATIONS AND ALTERNATIVES, THE MAJORITY OF OUR YOUTH DO NOT FAIL, AND MOST OF THOSE WHO HAVE GONE ASTRAY ARE NOT BEYOND REDEEMING. AMERICAN HISTORY IS REPLETE WITH CRISES THAT HAVE BEEN MET BY THE YOUNG, AND WITH FEWER RESOURCES AND LESS KNOWLEDGE THAN WE NOW HAVE AT OUR DISPOSAL. OUR CREDO MIGHT PROPERLY COME FROM RALPH WALDO EMERSON, WHO WROTE HIS POEM, "VOLUNTARIES" DURING THE CIVIL WAR: so so NIGH IS GRANDEUR TO OUR DUST NEAR IS GOD TO MAN, THAT WHEN DUTY WHISPERS LOW, "THOU MUST" THE YOUTH REPLIES "I CAN." WPC0961N � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1988-09-07_RMawby_SPE Title A name given to the resource Russell Mawby speech, The Greatest Opportunity Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 7, 1988 for the W. K. Kellogg Foundation at the University of Nebraska during the Town and Gown breakfast. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Youth Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1988-09-07 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/97507b46a0ac405a11aaadce680a4e8d.pdf 3b94b4baff8cdf8c1dcbfc4b329688ab PDF Text Text RGM's Remarks (Welcome/Introduction, Panel, and Closing) for September 28, 1989, Michigan Educators,~~Qnfeye ce, "Education in Philanthropy and Volunteerism" ' ./ at Kellogg Center, MSU 111N • STATEWIDE EDUCATORS' CONFERENCE • ~ \. ~-&- .~ THANK YOU JOHN, AND WELCOME TO ALL OF YOU. liT IS APPROPRIATE THAT WE SHOULD BE MEETING TODAY IN THE NATION'S FIRST UNIVERSITY BUILDING CONSTRUCTED SPECIFICALLY FOR THE PURPOSE OF CONTINUING EDUCATION, FOR THAT IS ONE OF THE QUESTIONS WE WILL CONSIDER TODAY AS WE PLACE THE SPOTLIGHT ON PHILANTHROPY, VOLUNTEERISM, AND NONPROFIT INITIATI ~ I WANT TO THANK THE IMPROVING PHILANTHROPY COMMITTEE OF THE COUNCIL OF MICHIGAN FOUNDATIONS FOR THEIR HARD WORK IN PLANNING AND IMPLEMENTING THIS CONFERENCE. THE REPORT THAT YOU HAVE RECEIVED: "PHILANTHROPY AND VOLUNTEERISM: STATE AND NATIONAL TRENDS AND OPPORTUNITIES FOR MICHIGAN" DEFINES THE SCOPE OF THE NONPROFIT SECTOR AND ITS IMPORTANCE IN ALL OUR LIVES. I WON'T COMMENT FURTHER ON THE REPORT, BUT I WOULD LIKE TO REINFORCE ITS STRESS ON THE IMPORTANCE OF THE SECTOR BY SHARING WITH YOU A COUPLE OF STATISTICS UNCOVERED BY PETER DRUCKER, THE NOTED MANAGEMENT CONSULTANT, DURING HIS STUDY OF NONPROFIT ORGANIZATIONS. FIRST, ALL --.-. CITY PUBLIC SCHOOL SYSTEM HAD A BUDGET OF $5.9 BILLION IN 1988. THIS IS LARGER THAN THE BUDGET OF GENERAL MILLS, AND NEARLY TWICE THAT OF APPLE COMPUTER. ;r~ TIME PERMITTED, THERE ARE A NUMBER OF OTHER EXCELLENT EXAMPLE S IN THI S SEC TOR THAT DESERVE MENTION ... NOR IS THERE / ~ TIME TO FU LLY DI SCUSS THE SEC TOR'S IMPACT UPON THE CHARAC TER AND THE ' / . QUALITY jOF LIFE AT THE COMMUNITY LEV~ I TH 2.-~.~!0~ ..l".l.~~ _~~ ~ /; HAT THE SECTOR IS LARGER AND MORE SIGNIFICANT THAN MOST REALIZE. / IT WAS I }. I =':. \ v- ' ' ,..s>-~ ~-<.L, .~ _..1: _ J tf.-t. ~. ~~.~. j_~~ '1- ~ _~t.. ' ,,,;,9. 0 ~~ t..\ \',-",",. b'. . .. ~!\. . ~ ~ '¥" ~'(.... . .AA • : .iI. fi'. ""'<A.A;;'" ...... _.... \~- _.~~ I ... I 0...- ......\, . �, . ~ .\ ~ .~ . ~ c rr~~ 2 / /~ , ' I -~-\ W ITH TH IS CONV ICT ION THAT THE CMF BOARD ,)N1986 , REATED THE IMPROV ING PH ILANTHROPY COMM ITTEE . OUR ~ HAR E / WAS TO EXAM INE THE ~o . CURRENT STATUS OF PH ILANTHROPY IN THE/STATEOF M ICH IGAN ,v IDENT IFY / AREAS IN WH ICH WE COULD DO ETTER ~ AN TO RECOMMEND STEPS FOR IMPROVEMENT . WE QU ICKLY FOCUSED/ONTHE SUB JECT OF EDUCAT ION IN PH ILANTHROPY AND VOLU t \ ITEER ISM .j ; ;ANUMBER OF PEOPLE HAD OP IN IONS ABOUT THE STATUS OF EDUCAT ION IN THESE AREAS IN M ICH IGAN -BUT NO ONE HAD ANY HARD DATA . THEREFORE , THE COMM ITTEE CONDUCTED THREE SURVEYS IN ORDER TO SECURE THE INFORMAT ION THAT WAS LACK ING . - - -_ . -" . THE F IRST SURVEY WAS SENT TO EVERY-T~( j.l UN IVERS ITY IN M ICH IGAN . ~- ~ E r t - C;~ --~-~ fl2.~ ;~'E s R D ISCOVERED THAT THER ~ ' J__ • - .-------_.-' f·. COLLEGE AND ER~ NO FORMAL ~ ~ ~ . DEGREE PROGRAMS IN PH ILANTHROPY AND VOLUNTEERISM IN THE STATE , BUT THAT SEVERAL INST ITUT IONSOFFERED COURSES OR EXPER IENT IAL EDUCAT ION IN THESE AREAS . SEVERAL OF YOU IND ICATED TO US THAT YOU HAVE FACULTY AND STAFF THAT WERE INTERESTED IN THESE TOP ICS , AND IN MANY CASES YOUR STAFF HAVE ORGAN IZED VOLUNTEER ACT IV IT IES OUTS IDE OF THE SCHOOL 'S FORMAL CURR ICULUM . THE SECOND SURVEY WENT TO THE CMF MEMBERSH IP , WH ICH THEN STOOD AT 2 20 (WE NOW HAVE 2S ] ~ MEMBERS ) . ITSRESULTS CONF IRMED OUR BEL IEF THAT THERE WAS W IDESPREAD INTEREST IN PH ILANTHROPY AND VOLUNTEER ISM AMONG M ICH IGAN 'S FOUNDAT IONS AND CORPORATE G IV ING PROGRAMS . A SUBSTANT IAL NUMBER WERE ALREADY MAK ING GRANTS IN THESE AREAS,AND ASO L IDMA JOR ITY IND ICATED INTEREST IN LEARN ING MORE ON THESE SUB JECTS . �~ ~ I'- , ~~ A I ' p . . . / "'- ~ . (""~ . - ,Y / j / v THE TH IRD SURVEY TARGE1ED A SELECTED GROUP OF NONPROF ITS ACROSS THE I STATE . THEY TOLD US THAT EDUCAT ION IN PH ILANTHROPY AND VOLUNTEER ISM WAS A DEF IN ITE NEED/ANDTHEY WERE W ILL ING TO CONTR IBUTE SOME OF THE COSTS FOR THE IR EMPLOYEES . FURTHER , THE IR NEEDS RANGED OVER A W IDE VAR IETY OF TOP ICS , FROM BOARDSMANSH IP TO PERSONNEL TO VOLUNTEER MANAGEMENT TO STRATEG IC PLANN ING . G IVEN THE FACT THAT THE PROV IDERS NEED THE EDUCAT ION , AND THE COLLEGES AND UN IVERS IT IES ARE INDEED CAPABLE OF PROV ID ING IT , OUR MOST EFFECT IVE ROLE AS FUNDERS APPEARS TO BE THAT OF FAC IL ITATORS . IN THAT SP IR IT WE HAVE ORGAN IZED TH IS CONFERENCE . WE HAVE NO PRECONCE IVED AGENDA , ~ \j ~"PLAN ~ OF ACT " ~---. ON .I ' - .A-~ ~ l • - ~ \f-" ' .."" WE HAVE BROUGHT TOGETHER SOME OF THE LEAD ING NAT IONAL EXPERTS ON PH ILANTHROPY , VOLUNTEER ISM , AND NONPROF IT IN IT IAT IVETO LEAD OUR D ISCUSS IONS . WHETHER TH IS LEADS TO ANYTH ING ELSE ISENT IRELY UP TO v ;__ u y.~~ . _ ~ ~l. oc..-~""'~ ~ . .~~_ _ . 4 . OUR KEYNOTE SPEAKER IS AD IST INGU ISHED PROFESS IONAL WHO HAS SPENT H IS \ ,,~ ENT IRE L IFE WORK ING IN , A® F IGHT ING FOR , THE NONPROF IT SECTOR . HE BEGAN H IS CAREER AS ACOMMUN ITY ORGAN IZER FOR ASCHOOL AND REHAB IL ITAT ION CENTER FOR HAND ICAPPED CH ILDREN . FROM 1 954 TO 1966 , HE WORKED FOR THE AMER ICAN HEART ASSOC IAT ION , THEN SPENT THE NEXT 1 2 �4 YEARS AS THE NAT IONAL D IRECTOR OF THE MENTAL HEALTH ASSOC IAT ION . BR IAN THEN SPENT TWO YEARS AS THE CEO OF TWO ORGAN IZAT IONS : THE NAT IONAL COUNC IL ON PH ILANTHROPY AND THE COAL IT ION OF NAT IONAL IN 1 980 HE OVERSAW AMERGER OF THE TWO AS VOLUNTARY ORGAN IZAT IONS . INDEPENDENT SECTOR , AND HAS G IVEN ADECADE OF SERV ICE AS .r~ FOUND ING ~ PRES IDENT . UNDER BR IAN 'S HAS BECOME THE COUNTRY 'S LEAD ING ADVOCATE LEA ER HIP ~ FOR THE NAT IONAL TRAD IT IONS OF G IV ING AND VOLUNTEER ING . ,1 5 ) ISMADE UP OF 650 FOUNDAT IONS , CORPORAT IONS , AND NAT IONAL VOLUNTARY ORGAN IZAT IONS THAT WORK TOGETHER TO GENERATE NEW RESEARCH ON THE SECTOR , ENCOURAGE THE IMPROVEMENT OF NONPROF IT LEADERSH IP AND MANAGEMENT , CREATE MUTUALLY SUPPORT IVE RELAT IONSH IPS BETWEEN GOVERNMENT AND VOLUNTARY ORGAN IZAT IONS , AND EDUCATE PEOPLE ABOUT THE SECTOR . BR IAN ISTHE AUTHOR OF SEVERAL BOOKS , INCLUD INGAMER ICA 'S VOLUNTARY ~ SP IR IT , PH ILANTHROPY IN ACT ION , ~ VOLUNTEERS IN ACT ION . HE ISALSO A VOLUNTEER H IMSELF , SERV ING ON NUMEROUS BOARDS AND COMM ISS IONS . / LAD IES AND GENTLEMEN , IG IVE YOU BR IAN O 'CONNELL . / J JO /RG / ~ \ l~ r ~ V ~ . ~ N.. 1 '0. L2.....~_..-. ~ ~ . :~~ I I _ _ , W"weoo- ,..,..~ r • , . . . . . . ,I r ' _. . . . . ~ ' " f 1 ~ \ . . . I , , 4 . f " ' ..f1.,A . S t \ . ~l ~ . • ~~~' ~ - I ~cn- - . ' . _ ~ r . . -"_ . . ~- , . . . . . . . . . . . . . - �.: .~-'S/ I I ~ /"6' ~- ~; ~ c ' ~ / / J , I ' ., I / / J l ~ I Q f I f ( r ~ . , �SUB JECT : BR IEF INTRODUCT IONS FOR SEPTEMBER 28 PANEL ISTS DELWYN DYER ISPROFESSOR AND D IRECTOR , CENTER FOR VOLUNTEER DEVELOPMENT , EXTENS ION D IV IS ION , V IRG IN IA POLYTECHN IC INST ITUTEAND STATE UN IVERS ITY , IN BLACKSBURG , V IRG IN IA . tA- ~e- ~ EL ~EARNE A PH .D . IN SOC IOLOGY AND ANTHROPOLOGY FROM M ICH IGAN STATE UN IVERS ITY , AND WAS FORMERLY A PROGRAM LEADER , 4 -H PROGRAMS , HERE AT MSU ..DEL ISALSO THE PAST PRES IDENT OF THE ASSOC IAT ION OF VOLUNTARY ACT ION SCHOLARS . V IRG IN IA HODGK INSON ISV ICE PRES IDENT , RESEARCH , INDEPENDENT SECTOR , ~ . AND EXECUT IVE D IRECTOR OF THE NAT IONAL CENTER FOR CHAR ITABLE ~ STAT IST ICS . SHE EARNED APH .D . IN H IGHER EDUCAT ION FROM SOUTHERN ILL INO ISUN IVERS ITY . SHE HAS AUTHORED MORE THAN 2 0BOOKS AND ART ICLES ON PH ILANTHROPY , VOLUNTEER ISM , AND THE NONPROF IT SECTOR , INCLUD ING G IV ING AND VOLUNTEER ING IN THE UN ITED STATES : A NAT IONAL SURVEY AND D IMENS IONS OF THE INDEPENDENTSECTOR : ASTAT IST ICAL ~ V- ~ PROF ILE . HER LEADERSH IP IN THE STUDY OF NONPROF ITS HAS CAUSED MER ~ ~ ~ E 4. .-J AS THE "NONPROF IT P IED P IPER . " KATHLEEN MCCARTHY ISPROFESSOR AND D IRECTOR OF THE CENTER FOR THE STUDY OF PH ILANTHROPY AT THE C ITY UN IVERS ITY OF NEW YORK . SHE EARNED APH .D . IN H ISTORY FROM THE UN IVERS ITY OF CH ICAGO . SHE IS THE AUTHOR OF NUMEROUS BOOKS AND ART ICLES ON THE SUB JECT OF NAT IONAL AND INTERNAT IONAL PH ILANTHROPY . A FORMER EMPLOYEE OF THE ROCKEFELLER FOUNDAT ION , SHE ISTHE FOUNDER OF THE INTERNAT IONAL FELLOWS PROGRAM , WH ICH BR INGS YOUNG LEADERS FROM FORE IGN NAT IONS TO AMER ICA TO LEARN ABOUT AMER ICAN PH ILANTHROPY . ~ ~\; ~ . . . . . ~~~ t~~-.. ~~ ~ ~ .e ...Q.... ' I-~ ~ ~ Yt-<.. . . . : , . . ( ( . ...,J};. . . .PLu . ..~....-~. ~ t ~ ~ e . . . f 4 ¥+ £ ~~--- ..Qt"'~ t t -~cr- " " ~~ Q -J ). . . . . . . . . .~--...... ~.~~ ~ 2~ . ~_ . . ~ ~ ..o... .. l $ ' . �~~.~. E2.~-. .. ~ 4 ~;~ - - A -~" ~ . . .- ~~ ~ DUANE BEAUCHAMP ISTHE D IRECTOR OF H ILLSDALE COLLEGE 'S GREAT OPPORTUN IT IES FOR ASS ISTANCE AND LEADERSH IP (GOAL ) PRO JECT . TH IS IS A STUDENT VOLUNTEER ISM AND LEADERSH IP PROGRAM FUNDED BY THE W . K . KELLOGG FOUNDAT ION . ~N E AMASTERS IN D IV IN ITY FROM NASHOTAH HOUSE SEM INARY IN W ISCONS IN . ~ BEAUC I IA t i lP ~ SERVED THE EP ISCOPAL CHURCH OF THE U .S .A . IN ADM IN ISTRAT IVE CAPAC IT IES . HE THEN SERVED AS THE RES IDENT CONSULTANT FOR THE COMMUN ITY SERV ICE BUREAU OF DALLAS , TEXAS , SPEC IAL IZ ING IN FUND -RA IS ING FOR PROGRAMS FOR THE DEVELOPMENTALLY D ISABLED . ~ILL s ~ J JO /RG I I IN r~ '~ ~ ~-AH Et AM ,t9 38 . r5Sl:JMEB -I+ I -5 t tR "R'E N T C . ' . . e :a . . . " . . �2 GEORGE ROCHE HAS BEEN PRES IDENT OF H ILLSDALE COLLEGE S INCE 1 9 7 1 . MA~ APRINCIPLE OF REFUSING TO ORM~HU MAINTAINING COMPLETE / UNDER H IS LEADERSH IP ,H ILLSDALE HAS ACCEPT GOVERNMENf"MONEY IN ANY , INDEPENDENCE FROM GOVERNMENTA) /CONTROL . DR . ROCHE EARNED A PH .D . IN H ISTORY FROM THE UNIVER I ~ COLORADO . HE ISTHE AUTHOR OF TEN BOOKS , RANG ING FROM EDUeAT ION" INAMER ICA TO A NOVEL , COM ING HOME_. / HE IS ALSO THE FOUNDER OF TWO FORUMS FOR D IALOGUE ON THE SUB JECTS OF IND IV IDUAL LI / ER ~ , / L IM ITED GOVERNMENT , AND FREE ENTERPR ISE , THE CENTER FOR CONSTRUCT IVE ALTERNAT IVES , AND THE SHAVANO INST ITUTE FOR NAT IONAL LEADERSH IP . ~ IRECTOR OF THE COMMUN ITY SERV HENRY RUB IN ISTHE D ICE MANAGEMENT CERT IF ICATE PROGRAM AT ROOSEVELT UN IVERS ITY . HE EARNED A PH .D . IN ~ EDUCATIONAL ADMINISTRATION FROM NORTHWESTERN UNIVERSITY. DR . RUB IN ISTHE AUTHOR OF NUMEROUS BOOKS AND ART ICLES ON NONPROF IT ADM IN ISTRAT ION AND ETH ICS . HE CO -CHA IRS THE CLAR ION CONFERENCE FOR THE D ISC IPL INE OF NONPROF IT ADM IN ISTRAT ION . J JO /RG �:J- ~-l o~ o .~ _ i I t ...Q-~ _ .L ~ »' . - . _~ ,< : . �tv .J (;) .c: QUESTIONS FOR PANEL The first question is the "so what" question. Why is it important to study volunteerism and philanthropy? How do such studies fit into the traditional mission of the university -- teaching, research and public service? Does it make sense to teach philanthropy and volunteerism as a discrete course, or should its concepts be broadly integrated across the curriculum? How can we interest the faculty in these subjects, and get them involved in teaching these areas? Is it possible to gain the faculty's commitment without changing the university's reward system? What are the best examples of programs for the study of philanthropy and volunteerism? Should we attempt to build a standardized curriculum, or should we "let a thousand flowers bloom?" Is there a logical departmental home for the study of philanthropy and volunteerism? 9. .- Should training in philanthropy and volunteerism be vocational? To what extent should education in philanthropy and volunteerism employ experiential techniques? Is "required volunteerism" a contradiction in terms? What is the biggest impediment in the way of developing programs? What are the l;adin g professional organizati9ns in this field? Where are the gaps in the knowledge base? What are the opportunities for publication in these fields? Have you encountered any internal institutional resistance? (~ \V G Is there real demand for such a program among the students? If so, is it strongest among undergraduates, graduate§1/ students, or continuing education students? What are the future opportunities in these fields? JJO!rgl086N:45 �CLOS ING REMARKS STATEW IDE EDUCATORS ' CONFERENCE THE "EDUCAT ION IN PH ILANTHROPY AND VOLUNTEER ISM " CONFERENCE ISNOW DRAW ING TO A CLOSE , AND ITH INK ITHAS BEEN A VERY PRODUCT IVE DAY . WE OWE AGREAT DEBT OF THANKS TO BR IAN O 'CONNELL , WHO PROV IDED ACLEAR OVERV IEW OF THE IMPORTANCE AND THE STATE OF THE SECTOR , AND ABLY LAUNCHED US IN THE R IGHT D IRECT ION . OUR F IVE PANEL ISTS , DELWYN DYER , V IRG IN IA HODGK INSON , KATHLEEN MCCARTHY , ' "1 )" ' -. - E-eR~HE, AND HENRY RUB IN , GENEROUSLY SHARED THE IR STORE OF EXPER IENCE REGARD ING THEORY AND PRACT ICE IN THE F IELD . MOREOVER , THE IR PART IC IPAT ION IN THE D ISCUSS IONS TH IS AFTERNOON LED TO MANY PRODUCT IVE INTERCHANGES AND A H IGH LEVEL OF D IALOGUE . AND THANKS TO YOU FOR TAK ING THE T IME TO ATTEND , AND PUTT ING SO MUCH THOUGHT INTO YOUR QUEST IONS AND PART IC IPAT ION . NOW , THE NATURAL QUEST ION IS"WHAT ABOUT NEXT STEPS ? " AS ISA ID AT THE BEG INN ING OF THE CONFERENCE , THE MEMBERSH IP OF THE COUNC IL OF M ICH IGAN FOUNDAT IONS HAS NO PRECONCE IVED AGENDA OR A PLAN OF ACT ION . WE DO NOT INTEND T OI S S UEA REQUEST FOR PROPOSALS . TH IS DOES NOT MEAN _ . . _ ...~ . . _.~_. ---------,-- . THAT WE..-HAVE SU_ D E N Y_ _ LOSL INTEREST IN PH ILANTHROPY AND VOLUNTEER ISM. .D ,_ . . . .L ITDOES MEAN , HOWEVER , THAT THE BALL ISIN YOUR COURT . IFYOU TH INK THAT TH IS SUB JECT ISIMPORTANT , THAT ITMER ITS FURTHER REFLECT ION AND POSS IBLY ACT ION , THEN WE ARE W ILL ING TO L ISTEN TO YOUR IDEAS .~ UPO ~ -l R R.EELE- -"" -I-e YOU PLACE PH L THRO. f A lN D VOLUNTEERI~~ ON O f~-r-T ~ -IHEN WE CERTAINL ..R ~~ON. �2 AS FUNDERS, WE SEE OUR ROLE BEING THAT OF A FACILITATOR. IF YOU HAVE GOOD IDEAS ABOUT BETTER WAYS TO PROVIDE EDUCATION IN PHILANTHROPY AND VOLUNTEERISM, THEN WE WANT TO HEAR THEM. NATURALLY, YOU UNDERSTAND THAT FUNDERS CANNOT GIVE A nBLANK CHECK,n BUT WE CAN GUARANTEE A FAIR HEARING. AND, IF OUR PRIORITIES MATCH, WE CAN HELP YOU TO ACHIEVE YOUR GOALS FASTER -- AND PERHAPS BETTER IN ANY EVENT, NEXT STEPS ARE UP TO YOU. THAN YOU COULD ON YOUR OWN. THANK YOU AGAIN FOR MAKING THE TIME TO JOIN US, AND ADD TO OUR DELIBERATIONS. JOURNEY HOME. JJO/RG HAVE A SAFE � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1989-09-28_RMawby_SPE Title A name given to the resource Russell Mawby speech, Education in Philanthropy and Volunteerism Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 28, 1989 for the W. K. Kellogg Foundation at the Statewide Educator's Conference to discuss the importance of education in philanthropy and volunteerism. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1989-09-28 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/e423391a157305b62e00d26a974782bb.pdf 96b919da83ebd0aff2193d90f6b42fc9 PDF Text Text ac -1- Dedication Ceremony Wildlife Education Center Binder Park Zoo September 28, 1982 Russell G. Mawby, Chairman of the Board W. K. Kellogg Foundation I am delighted to be here as the Binder Park Zoo takes another major step in its development for our community. The Zoo has had a remarkable record of success in the past four years -- often ~n the face of adverse economic, general and weather conditions. operati~g, The Zoo is an impressive example of community self-initiative and achievement; whereby a group of citizens recognized a community need and then organized to plan, fund, and carry out zoo activities, and without reliance on tax or governmental money. Today volunteers from throughout the area serve as members of the Zoo's Board of Directors; are helping to physically build and maintain the Zoo; a n d are serving as docents -- or volunte~~ �a c2 - t e a c h e r s-t om ak e p o s s i b l ea g r e a t l ye x p a n d e d Zoo e d u c a t i o n a l o u t r e a c hp r o g r am . A s w e d e d i c a t et h i s ,t h eZ o o ' sf i r s tp e rm a n e n tb u i l d i n g ,i t i s im p o r t a n tt on o t et h a tn e a r l y3 0 0a r e af am i l i e sa r ea c t i v e c o n t r i b u t o r st o ,and p a r t i c i p a n t si n ,Zoo a c t i v i t i e st h r o u g h t h e i ra n n u a lm em b e r s h i p s ; t os a yn o t h i n go ft h et h o u s a n d so f o t h e ra r e ac i t i z e n swho r e g u l a r l yv i s i tt h eZoo . I th a sb e e n t h e s ei n d i v i d u a l s ,a l o n gw i t hc o n t r i b u t i o n sf romp r i v a t ef o u n d a t i o n s i no u rc omm u n i t y and s u c hc i v i cl e a d e r sa sB e u l a hK e n d a l l , Bob M i l l e r , a n dt h eK e l t hS c h r o d e rf am i l ywho h a v em ad e t h i sd a y p o s s i b l e . On e o ft h ep r im a r ys t r e n g t h so ft h eZoo ~ and r e a s o n sf o ri t s b r o a d b a s e d commun i ty s u p p o r t-h a sb e e ni t sem p h a s i so n e d u c a t i o n a lp r o g r am sf o rc h i l d r e n . W . K . K e l l o g g , t h ef o u n d e r o ft h eK e l l o g gF o u n d a t i o n ,w a s f o n do fs a y i n gt h a t" e d u c a t i o n o f f e r st h eg r e a t e s to p p o r t u n i t yf o rr e a l l yim p r o v i n go n e �ac -3- generation over another." Many of the Foundation's grantmaking efforts over the years have reflected that commitment and belief regarding the importance of education in our society. That has been the Foundation's goal in providing financial support for the Zoo. That has also been the Foundation's goal ln regard to a grant which I am pleased to announce this evening namely, a new $60,000 grant by the Kellogg Foundation to help the Binder Park Zoo construct a separate animal care facility immediately to the west of this education center. These Foundation funds will augment the already considerable financial support pledged by the General Foods Corporation for completion of the animal care center. The Center will feature special space and equipment needed to develop and serve major exotic animal exhibits -- which are key to the next phase of the Zoo's development. Yet, ln a more direct way, the Wildlife Education Center we dedicate this evening has been described as the true "heart" of all Zoo operations because it houses cl assrooms and meeting �ac -4- space, offices, kitchen, and animal care area. I take that to mean the heart of the Zoo in an educational sense. For the Center makes possible a further broadening of Zoo educational programs for area youth and citizens. The challenge for the Binder Park Zoo will be to use this Wildlife Education Center to enhance both outreach and in-zoo programs. More than 19,200 people were served by Zoo outreach activities last year, as well as by the Zoomobile field days and "Living Textbook" programs at schools throughout the community. More than 15,000 additional youngsters participated in the educational programs and festivals offered right here at the Zoo. I believe the key to Binder Park Zoo's promising future will be its continued emphasis on quality educational programs, and equally important, voluntary support and citizen involvement within its 25-mile, 800,000 population service area . �ac -5- The Kellogg Foundation has been pleased to be a partner in helping to launch the Binder Park Zoo. We are proud of the Zoo's growing reputation nationally for outstanding educational programs. We are equally proud, and confident, that the Zoo will build upon that record of service and achievement in the years ahead. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1982-09-28_RMawby_SPE Title A name given to the resource Russell Mawby speech at the Wildlife Education Center Dedication Ceremony Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 28, 1982 for the W. K. Kellogg Foundation at the dedication ceremony for the Wildlife Education Center. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1982-09-28 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/a462023aab33772a74a46b4e99beedd5.pdf d3d264fa4e11b624c1ddaeb5d8034505 PDF Text Text THE MI CHI GAN BI OTECHNOLOGY INSTI TUTE Remarks by Dr. Russell G. Mawby Cha i r man and Chief Executive Officer W. K. Kell ogg Foundation September 27, 1984/Lansing, MI Governor Blanchard, Mr. We i 1, Dr. Zeikus, memb e r s of the MBI Board of Direc t ors, media repres entatives, ladies and ge ntlemen Michigan, in recent years, has been sgre '¥- c ha 11e nge d by a series of difficult economic circumstances. Now we are emerging from those troubled time s and we see all around us the evidence of the human spirit's invincibility. People are addr essing the needs of our communities and our state with determination, skill" and ne~~~:C~ e sacrifice. The enthusiasm and commitment of people from Sault Ste. Marie to Battle Creek, from Muske gon to Port Huron, fr om Copper Harbor to Detroit to restore MichIgan as one of the nation's flagship states is, i n my e s t ima t i o n.-m &£-e ~an r emarkab l e ; is it awe - insp iring. ~ I f. yo e ~o can't keep a good state down! pa raphrase an old adage: You just John Gardner's words appropriately describ eA' such s p i r it when he w't"o t e : "We are not at our best perched at the summit; we are c l i mbers, at our best when the way is steep." ~~~~~ ~~~ r~~~~ ~a&~ ~~la t --. v a l uab l e lesson learned ~ is one that gives suffic i ent wisdom to avoid other pitfalls. Part of the new Michigan we a r e seeing is a mor e economically diversi fied �p r o f i l e . on e wh i ch c a p i t a l i z e son t h ev e r yb e s to fi t sn a t i v e r e s o u r c e s . And t h a ti st h efund am en t a lpoi n to f my r em a rk st h i s m o rn ing . i me l yexamp l ew i t h i nt h i sd i v e r s i f i e dp r o f i l ei st h e At ~~ b i o t e c h n o l o g yi n d u s t r y . I nt h i s A e n te r p r i s eM ich ig an i sr i c hi n r e s o u r c e se s s e n t i a lt os u c c e s s f u ld ev e lopm en t . Th e s er e s o u r c e s i n c l u d e : ~ a ~ v i b r a n t an dd i v ers ef a rm a g r i b u s i n e s ss e c t o r , e x c e l l e n ti n d u s t r i a lp r o d u c t i o nc a p a c i t y , _a g e n e r o u sw a t e rs u p p l y . - m o re t h a n1 7 . 5m i l l i o na c r e so f comm e r c i a lf o r e s t l a n d . - _an abund an t sk edwo rk f o r c e . and -aw e l ld e v e l o p e dt r a n s p o r t a t i o ns y s t em . O fe q u a l im p o r t a n c e .w eh av e an im p r e s s i v enumb e ro fs u p e r b c o l l e g e sand u n i v e r s i t i e s . in l in . ~i i an S t a t eU n i v e r s i t y and t h eU n i v e r s i t yo fM i ch ig an -twowo r ldc l a s si n s t i t u t i o n s .both w i t ho u t st a n d i n gr e s e a r c ht a l e n t . Ou r c o l l e g e sand u n i v e r s i t i e sc an i n deed h e l pt oe n s u r er e a lp r o g r e s si ns om any im p o r t a n tf i e l d so f dev e l o p m en t . A l lo ft h i si sM i c h i g a n ' s . a sw e l la sc r u c i a la c c e s s t ob i o t e c h n o l o g ym a r k e t s and v e n t u r ec a p i t a l . Th eM i ch ig an B i o t e c h n o l o g yI n s t i t u t e t h eM B I. l o c a t e di n E a s tL an s ing --w i l ll i n ku n i v e r si t yr e s e a r c hw i t ha p p l i c a t i o n so f b i o t e c h n o l o g yt oexp and ou rf o r e s tand a g r i c u l t u r a li n d u s t r i e s . c r e a t ej o b s .and f u r t h e rimp rov et h es t a t e ' se conom i cs i t u a t i o n . Tho s ep r o g r e s s i v es t e p sw i l l imp rov el i f ef o rM i c h i g a n ' s p e o p l e . 2 �Th e M B Ir e p r e s e n t sa p o o l i n go fr e s o u r c e s i n s t i t u t i o n a l n a t u r a l , hum an , and i tr e p r e s e n t so p p o r t uni t y . Fo rt h e s er e a s o n s , t ~~~~~ ~-~ ~ &eee -~ t h eW . K . K e llogg Found at i o nh a ss u p p o r t e dt h eI n s t i t u t eand i t sp o t e n t i a lf o rh e l p i n g t or e v i t a l i z eou rs t a t e . I n i t i a le~ ea gf l @ I ts s u p p o r tc am ei n Augu s t 1982 ,i nt h e fo rm & fa $150 ,000 g r a n tt ol a u n c hcomp r eh en s iv e p l a n n i n g and t oem p l o ys t a f fn e c e s s a r yt od e v e l o pt h eI n s t i t u t e ' s s p e c i a lr a n g eo ft e c h n o l o g i e s-t e c h n o l o g i e swh i ch c an l e a dt o p r a c t i c a land p r o f i t a b l ea p p l i c a t i o n si nt h efoodp r o c e s s i n g i n d u s t r y ,p h a rm a c e u t i c a l s , andb a s i ca g r i c u l t u r a lp r o d u c t i o n . I ti sa p p r o p r i a t et h a tt h eK e l logg F o u n d a t i o n cho s et ob e i n v o l v e di nt h i se x c i t i n gv e n t u r e . Th en am eK e l logg i sp r o u d l y l i n k e dw i t hM i ch ig an . C r e a t e di n1930 by t h em an who s en am ei s synonomou sw i t ht h er e a d y t o e a tc e re a li n d u s t r y ,t h eW . K . K e l logg F o u n d a t i o ni sM i ch ig anb o r nandM i ch ig anb a s e d . ~ Th es o l i d ,s t e ady g row thwh i ch h a s mov ed t h eF o u n d a t i o nf rom i t so r i g i n a l $45 m i l l i o n endowm en tt oi t sc u r r e n ta s s e t so f mo r e t h a n$1 b i l l i o ni st h er e s u l to ft h ee n t r e p re n e u r i a ls u c c e s so f p r i v a t eb u s i n e s s e s ,m a ny o f th emh e a d q u a r t e r e di nM i ch ig an . I nt h eF o u n d a t i o n ' s 54y e a rh i s t o r y ,i t h a sm ad e g r a n t s e x c e e d i n g $768 m i l l i o n t oh e l ps o l v es o c i e t a lp rob l em si nt h ea r e a s o fh e a l t h ,a g r i c u l t u r e , and e d u c a t i o n ;f u l l y$125 m i l l i o no ft h a t amoun th a ss u p p o r t e dp r o g ram s and p r o j e c t si nM i ch ig an . I nr e v i ew i n gt h o s ef i g u r e sI amr em ind edo fwh a tW . K . l l o g gw r o t e i nh i sj o u r n a li n1909 : " I fI ams u c c e s s f u li n Ke 3 �g e tt i n go u to fd e b t and b e com ep r o s p e r o u si nmy b u s i n e s sa f f a i r s ,I e x p e c tt om ak e good u s eo f anyw e a l t ht h a tm aycom e t om e . " Som e sl a t e rh e added : " I th a s beenmu ch e a s i e rt om ak e mon ey t h a n year t oknowhow t osp end i t w ise ly ." H i s t o r y vou ch e st h a tM r . K e l logg w a s s u c c e s s f u lb o t ha t making mon eyand a tm ak ing w i s eu s eo fi t . Th es t ew a r d so fh i s F o u n d a t i o n ' sa s s e t sh av eh ad , and c o n ti n u et oh a v e , ac o n s t a n tand \ ~ r ew a r d i n gc h a l l e n g et odo l i k ew i s e . - ---- Ov e r thep a st y e a r ,M B I h a sm ad e e x c e l l e n tp r o g r e s si n s t r u c t u r i n gan o r g a n i z at i o nand d e v e l o p i n g a fo cu sf o rr e s e a r c h , tr a i n i n g ,and e d u c a t i ona lp r o g ram s . I th a sc l a r i f i e dr e l a t i o n s h i p s b e tw e en i t s e l fand edu c at i o n a li n s t i t u t i o n son on eh and , and i n d u s t r yand u s e r s on t h eo t h e r. F u r t h e r ,i t e s t a b l i s h e dan ope ra t i o na lp o l i c yb ased on a l l o c a t i n g60 p e r c e n to fi t sr e s o u r c e s t or e s e a r c hand d e v e lopm en t , and 40 .pe rcen tt os t r e n g t h e n i n gt h e t r a i n i n gand e d u c a t i o n a lp r ogr am sw i t h i nu n i v e r s i t i e s . T h i si sa s o l i dc om b i n a t i o no fe f f o r t st h a tc ana c c r u el a s t i n gb e n e f i t sf o r o u rs t a t e . M B I's y e a r l o n gp r o g r e s si sh i g h l ya s s u r i n g . A sa r e s u l t , t h eK e l logg Founda tion 's Bo a rd r e a f f i rm si t scomm i tm en tt o d a yt ot h e v a l u e and p u r p o s eo ft h eB i o t e c h n o l o g yI n s t i t u t et h r o u g ha f o u r y e ar ,$10 m illion g r a n tt oMB l t oc a r r yfo rw a rdi t so b j e c t i v e s . ~~ l e e o fa d d i t i o n a lK e l logg Found a ti o nfund sf o rf u r t he r s t a g e so fM B l's p rog r am sw i l lb ed e c i d e da f t e rt h ec u r r e n two rk i s eva lua ted ,b u tw ea r eh i g h l yo p tim i s t i c . 4 �We believe that the fiscal support that the Foundation is giving to the Michigan Biotechnology Institute is evidence of wise stewardship of our financial resources. We trust that it will help. in its own way. Mi c h i ga n ' s leaders to be wise stewards of the abundant natural. human. and instit itional resources with which this state has been so generous lyeI+C:1 82li; c d ~ 5 t-eJ.:Je-d.....- � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1984-09-27_RMawby_SPE Title A name given to the resource Russell Mawby speech, The Michigan Biotechnology Institute Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 27, 1984 for the W. K. Kellogg Foundation on the Michigan Biotechnology Institute. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1984-09-27 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/d5b2b91d9c6780841c319b02e043dc75.pdf 74aede330e540e063f634e75c6bbba04 PDF Text Text Concluding Remarks by Russell G. Mawby, Chairman and CEO W. K. Kellogg Foundation Family Community Leadership Workshop September 26, 1986 Denver, Colorado I am glad to be with you for this concluding session of the Family Community Leadership Conference. My only regret is that I have not been here for the full time so that I could meet more of you, but I appreciate so much your warm welcome and the chance to visit with many of you in this short period of time. I feel right at home with this kind of group because, as indicated, I have a rural background. deal in my life. Extension and 4-H have meant a great I was a 4-H club member and my mother was very active in the Michigan Extension Homemakers. I really credit the Extension home demonstration agent, the county agricultural agent and the district 4-H agent, along with my mother and dad, for encouraging me to become the first of my family to go to college. My wife, Ruth, was a county home demonstration agent, and I was an Extension agent, specialist, administrator, and volunteer. So Extension has been very much a part of our lives for a long period of time. My career and my personal interests have been very much involved with a lot of the issues and activities that are of concern to you. It has been over 20 years since I left Michigan State University to join the W. K. Kellogg Foundation. As one of my colleagues said at that time, I "traded in my academic robe for a foundation garment." My heart, however, is still very close to your concerns, and fortunately a lot of the philosophy and activities of this Foundation are similar to those that you and I share. I have often �2 confessed to some of my friends in home economics that if I were to be reincarnated in an Extension career, I would wish, at this point in the life of society, to become a State Leader for Home Economics Extension. I say that simply because it seems to me that if we look at perplexing concerns of American society, the emphases and purposes to which you are committed have greater potential for addressing some of those needs constructively than any of the other programs with which I am familiar. I want to congratulate everyone who has been a part of bringing us together on this occasion. some years ago. I first heard about the concept which led to FCL It was in 1978 or 1979 that I had the pleasure of meeting with Charline Warren and other officers of the National Extension Homemakers Council at the National 4-H Center in Washington, D.C. The FCL idea was just beginning to take form and it materialized dramatically through the years of initial impetus from the Extension Homemakers, and shepherded along by others like Eleanor Whittemore who have been important in the process. It is a partnership effort. Many different folks have been involved, and the Extension and volunteer partnership and collaboration are extremely important. Orville Young was one of the early Extension leaders on the regional and the national level to give it real endorsement, encouragement, and support. That collaborative partnership is symbolized by these name badges that simply tell you that I am Russ from Michigan. because all of us serve a common purpose. That is great We have the same objectives in mind, and each of us makes a particular contribution; so whether the label is volunteer or professional doesn't make any difference as long as we recognize that we do share a mission. To the six states that have been the pioneers, the forerunners and the experimenters, we express our special gratitude and admiration. We are �3 grateful to all of the people involved in so many ways in bringing about the FCL success. I salute all of you who have been a part of this process. A special tribute goes to the planning committee. seen them, and tolerated them this week. You have met them, In my brief military career at Camp Chaffe in Arkansas, I whitewashed rocks and served in an artillery unit. In artillery terms, your co-chairs would be a "BB" team--Bassett and Barron. practice, however, they have had the impact of a howitzer. In To Lois and Jim, who co-chaired this activity, and the full committee, we are grateful for a tremendous conference. Speaking for the W. K. Kellogg Foundation, we have been privileged indeed to be helpful to you by providing a bit of assistance in this experiment -- the development, testing, and evaluation which leads us to this national dissemination conference. The support by the Foundation for the Family Community Leadership program is just a part of a long-term commitment to people, families, communities, and leadership. Sometimes there is confusion about the relationship between the Kellogg Company and the W. K. Kellogg Foundation. The tie is simply one man -- W. K. Kellogg. Mr. Kellogg, back in 1906, quit his job at age 46 as the administrator of a hospital and started the Kellogg Company. He very early determined that whatever fortune he accumulated he would somehow dedicate to human benefit. In 1930, at the age of 70, he established this Foundation, and there is the tie; only people are important and that one man made that difference. We started out as a very small Foundation working in just seven counties in southcentral Michigan. health, libraries, and families. international in stature. largest in the country. We worked on problems of education, public Now, of course, we have grown to be The Foundation is now among the two or three In our fiscal year just ended on August 31, we had �4 assets of $3.1 billion, revenues of $81 million, and we are projecting for the current year an increase of 18 percent to $96 million dollars in support of about 600 different projects around the world. As an old farm boy, those figures alwa ys overwhelm me. Historically, the Foundation has always been concerned with leadership of all sorts to enable people in various settings and circumstances to contribute constructively to societal progress. So we have worked for years, and still do, with school boards, hospital boards, the United Way, the Urban League, and fellowship programs of various kinds. One example you may be familiar with is the Farmer's Study Program or the Agricultural Leadership Program that started on a small basis in one, then two, then five states and now serves in at least 23 different states around the country. Our concern is with encouraging people to take a greater role in shaping today and tomorrow. It is very natural, then, that the Foundation was excited by the concept of Family Community Leadership. of these words is tremendous. You recognize it -- just remind yourself of their importance occ asionally as you move forward. social unit in our society. The importance of each Family -- it is the basic We are beginning to appreciate to a greater extent some of the values embodied in strong families; values like discipline and hard work and ambition and self-sacrifice and patience and caring and love. We are beginning to realize with all of the changes in traditional family structures that those values are still tremendously important; as human individuals we need close and caring and loving relationships. While the details of f amily structure may change (and they have been changing for centuries), the basic notion is still valid. We have found in our programs that many people like to be students of the family, we find many who would like to be critics of the family, but we find too few who are advocates of the family. I am delighted that you are advocates for families. �5 Second is community. That's where we live. There has been a tendency for the past half-century to transfer responsibilities for important concerns from the individual and the family to someone else. In similar fashion, we have transferred responsibility from the local community to ever-higher levels of government. I think we are now appreciating the fact that a lot of those efforts have been less successful than we would hope, and to some extent we are beginning to see a transition back to local responsibility. It will be tough because we have become dependent upon grants from federal sources for all sorts of things in our schools, in urban development and other areas. Nonetheless, we are beginning to recognize that some of the wisest decisions are made closest to the problem. Communities, whether you define them as your local neighborhood or a local unit of government, up to the State, are going to become increasingly important in shaping the future. This means that the individual citizen will have increasing opportunities to make a difference at the community level on significant concerns. Family plus community plus leadership. There are lots of definitions of a leader, but I always think of a leader as someone who recognizes a need and then does something about it. a doer. It is much easier to be a critic than to be It is much easier to sit back and say, "Why doesn't the school board do this thing or the other?" "Why don't they do something about the quality of the water in our local river?" to criticize. "Why don't they do something?" It is easy It is much more difficult to move forward in constructive action, but that is what leaders do. Leaders come in all kinds and varieties with all sorts of caps and titles, and different circumstances require differences in those who assume leadership responsibilities. Each of those words -- Family, Community, and Leadership -- are tremendously important. You know a lot about FCL now. We are delighted, �6 simply overwhelmed, that 48 states plus Guam elected to come to this national dissemination workshop. year ago. I remember when we first started talking about this a Lois was always optimistic that everybody was going to come; the realists said if we could get 30 states it would be great. It's marvelous that there has been such an enthusiastic response. I have been asked to comment on plans for the future. say much about the future because you will determine that. I really cannot You will decide and you will be the key factor as to whether anything happens in your home state -- Alabama or Maryland or wherever. One of the realities is that foundations cannot do anything by themselves. We can only be helpful to you in addressing issues that you think are important. I suggest that if you reflect thoughtfully in addressing any issue, or in pursuing any opportunity, money is usually not the constraint. It is a part of the solution but usually not the limiting factor in making really important things happen. Only people are important. vision, commitment, skills and energy to make things happen. many of you comment that FCL has great potential. except as it's vested in you. People who have I have heard It really has none at all, It will do nothing unless you make it so. Speaking again for the Kellogg Foundation, we hope we can be a continuing helpful partner in pursuing what we regard as an extraordinary idea. As Jim has indicated, the planning grants will be available to you as a team in going back to your respective states to develop plans for the future if you subscribe to the stanzas on page 4.12 of your hymnal (FCL Handbook). Read page 4.12 and you will know exactly how to get a planning grant. I would indicate further that the Kellogg Foundation is prepared to consider assistance to those states that wish to develop a program based on the FCL experience and model. developed. The detailed guidelines have not yet been Dr. Gary King will be working on that from our perspective �7 along with people like Dr. Dan Moore, from Penn State, who will be joining us at the Foundation shortly. And we certainly will work with the program committee to develop those plans. At this point, however, the following points seem appropriate: 1. We will be prepared to provide grants to single states, or, if you feel that a collaborative effort of two or three or more states would be preferable, we would certainly consider that as a desirable option. 2. We will be concerned that the program you envision be built on the basis of these FCL materials, modified as appropriate to your state, to your communities, to your organizational structure, to your personalities and other appropriate factors. Basically, however, you should draw upon this rich reservoir of material based upon the experiences of many people in these six-state experimental efforts. 3. We will be concerned that you incorporate the essential components of the Family Community Leadership program. Those are on page 4.8 of the FCL Handbook and remember there are eight of them. In your own state you might want to modify some of them, and we wouldn't be concerned about that because experiences and materials of this sort do need to be adapted as well as adopted. However, we would expect each component to be thoughtfully addressed because each of them deals with a very significant element of the FCL format. 4. In the judgment of the program committee, one of the major needs for funding is for the expenses of volunteers, so we would be looking at the details of the budget to see how you address that need. 5. The Foundation will consider grants of up to $50,000 per state, probably spread over a two- or three-year period, based again upon your own program planning. �8 6. All of the t eams that request planning grants will be provided information regarding the guid elines for requesting further support. If and when you and your st ate team, with the assistance of a planning grant, come up with plans that you wish to have us consider, we will be anxious to hear from you. 1ve think this experiment in six st ates has been exciting, and we hope you will have opportunity to adopt and adapt -- do something in your respective st ates. We will be anx i ous to be helpful in bringing that about. In closing, I remind you that in our judgment only people are important. Sometimes as we look at all of the issues confront ing society we are almost overwhelmed by the future, by uncertainties, complexities, and challenges. Whenever I let myself get into that frame of mind as we look at all the options a va i l a bl e to the Foundation, I like to remind myself of a few lines that I l earned way back when. You may be famili ar with them: "I am only one, but I am one; I can't do everything, but I can do something; \fuat I c an do, I ought to do; And what I ou ght t o do, by the grac e of God, I will do." With reference to FeL, the potential is great, the time is right, it's future is you : 874c 11/5/86 We wish you Gods peed. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1986-09-26_RMawby_SPE Title A name given to the resource Russell Mawby speech at the Family Community Leadership Workshop Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 26, 1986 for the W. K. Kellogg Foundation at the Family Community Leadership Workshop. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1986-09-26 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/9962964f58bc5e4b569efb8d2bc90ef0.pdf 81fda0d54a9247df8598186fa5fac968 PDF Text Text Remar ks by RGM at Confere nce of Counc i l o f Minnesota Foundations , Sept. 26, 1976 - Wayzata , Minn . --- { j �H · . ~. ~ .~ ~ . G- ~ f~C'" x-~ ~ ~ ~ , \\ ~. 1 - ·.. . - ~ ~ ~ ~''i ~ --..::i~~ ~~ \ ~ '\ ~ ~ - ~~~ ~ . ~-.J'o.._ �) , ...". -- ,~ I -;- u- '9.- �In fact, there is great temptation, for example, to give particular attention to the some 250 community foundations throughout our country, a group of foundations whose future seems particularly bright. I An efficient and effective means of mobilizing private resources to serve local needs, these foundations are serving very useful purposes in their respective communities. It seems safe to predict that community foundations -- for various reasons, including their favored position under current tax law -- will become increasingly important in the philanthropic scene. - I • �I na d d r e s s i n go u ra t t e n t i o nt ot o d a y ' sp r i v a t eg r a n t -m a k i n g ~ ~ fo u n d etLon sa n dt h ec h a l l e n g e so ft om o r r ow ,t h e r ei sa na lm o s t a u t om a t i ci n c l i n a t i o nt or e c i t ea g a i nt h eu n i q u ec h a r a c t e r i s t i c s o ft h e s ep h i l a n t h r o p i ce n t i t i e s ;t or e c o r do n c e mo r e t h e i r c o n t r i b u t i o n si nt h ep a s ta n da tp r e s e n t ;t oc h i d et h emy e t a g a i nt ob e mo r e r e s p o n s i v e ,c r e a t i v e ,i n n o v a t i v e ,r i s k t a k i n g , a c c o u n t a b l e , som ehow a c c omm o d a t i n gt oc r i t i c so fa l lp e r s u a s i o n s [ 1 who a dm o n i s ht h emf o rb e i n gb o t ht o oc o n s e r v a t i v ea n dt o o a c t i v i s t-a n d ,i nl o o k i n gt ot om o r r ow ,t or u no f fy e t l i s t o ft h ec r i t i c a li s s ues on t h ea g e n d ao fm a n k i n d . o ~ To d o s ow i t h t h i sg r o u p ,h ow e v e r ,w o u l ds e emt os e r v el i t t l e u s e f u l p u r p o s e. a l i z et h a tp r i v a t ef o u n d a t i o n s( a c t u a l l yp r i v a t er e s o u r c e s .e w h i c ha r ev o l u n t a r i l ya n di r r e v o c a b l yc omm i t t e dt op u b l i c b e n e f i t )a r eb u to n e sm a l lp a r to ft h ep r i v a t ev o l u n t a r ys e c t o r , s im p l ya l e g a lm e c h a n i sm by w h i c h t h ef r u i t so ft h ef r e ee n t e r p r i s es y s t emc a nb es y s t em a t i c a l l yd i r e c t e dt os o c i a lb e n e f i t t h r o u g hp r i v a t ev o l u n t a r yi n i t i a t i v e .A l lo fu sh e r ea r ec o n c e r n e dw i t h t h ec o n t i n u i n gv i t a l i t yo fp r i v a t ep h i l a n t h r o p ya n d r e c o g n i z et h a t ,v l h e t h e rd o n e eo rd o n o r ,o u rf u t u r e sa r ei n e x t r i c a b l y e n tw i n e d . I ti st ot h a tf u t u r ew h i c h Ip r o p o s et od i r e c to u r a t t e n t i o ni nt h em o s t c ap -d id a n dp r a gm a t i ct e rm s . �n om oI ; ':J:?ow ' s I nt h ef i r s tp l a c e , i t i ss o b e r i n gt or e a l i z et h a tt h eo n l yp r i v a t ef o u n d a t i o n s i nt om o r r ow ' sw o r l da l r e a d yex i s tt o d a y . U n d e r c u r r e n tt a xl aw , (3 ) theb i r t hr a t eo fn ew f o u n d a t i o n si sv i r t u a l l yz e r o ,t h ef ~ e x c e p t i o n sb e i n ge s s e n t i a l l yt h o s ef o rw h i c h i r r e v o c a b l ei n s t r u m e n t s h a db e e n drawn p r e -TR J ' I . -69 . �F u r t h e r ,t h en um b e r so ff o u n d a t i o n si nt h ef u t u r e-u n l e s st h e r ea r ec h a n g e si nt h el aw-w i l lb es l ow l yd e c l i n i n g , f o r c o u p l e dw i t h t h ez e r ob i r t hr a t e ,i sa na c c e l e r a t e dd e a t h r a t e . T h o s ep a s s i n gf r omt h es c e n et h u sf a ra r eg e n e r a l l yt h e sm a l l e rp r i v a t ef am i l yf o u n d a t i o n swho s e v i t a lc o n t r i b u t i o n sa r e t ol o c a lp h i l a n t h r o p y . T r a d i t i o n a l l y compo s ed o fe q u i t yh o l d i n g s i nt h ef am i l yb u s i n e s s ,t h e ya r eb e s e tby t h ec om p l e x i t i e so f c o n f o rm a n c ew i t h t h e1969 l awa n da r ep a r t i c u l a r l yb u r d e n e d by t h ep a y o u tr u l e so fS e c t i o n 4942 a n dt h ed i v e s t i t u r ep r o v i s i o n s o fS e c t i o n4 9 4 3 . F o rm any , t h eo n l yr e a s o n a b l ec o u r s es e em s e i t h e rd i s s o l u t i o no r ,o f som ewh a tl e s sn e g a t i v ec o n s e q u e n c et o p h i l a n t h r o p y ,t r a n s f e r e n c eo fa s s e t st oa commun i ty f o u n d a t i o n . N o n e t h e l e s s , t h e yp a s sf r omt h ep r i v a t ef o u n d a t i o ns c e n e . F i n a l l y ,p r i v a t ef o u n d a t i o n si nt om o r r ow ' sw o r l dw i l lh a v e ~ al e s s e n i n gs i g n i f i c a n c ei nt h et o t a ls o c i a ls c e n e . W h i l e o u r n a t i o n a le conomy w i l lc o n t i n u et og r ow ,t h er e s o u r c e so f p r i v a t ef o u n d a t i o n sw i l ln o tk e e pp a c ei ne i t h e rr e l a t i v eo r s p e c to ft h i sp r o b l em r e l a t e st oi n f l a t i o n . a b s o l u t et e rm s . 'nea Th ee d u c a t i o n a la n ds e r v i c ee n t e r p r i s e sw h i c ha r et h eu s u a lc o n c e r n so fp h i l a n t h r o p yt e n dt oe x p e r i e n c ei n f l a t i o n a r yp r e s s u r e b e y o n dt h a tf o rt h ee conomy i ng e n e r a l . M o s t d am a g i n gt ot h e c a p a c i t yo fp r i v a t ef o u n d a t i o n st os e r v et om o r r ow ' se x p a n d i n g n e e d s ,h ow e v e r ,a r et h o s ep r o v i s i o n so f TRA -69 w h i c ha r ed r y i n g ~ ~ t h ef l owo fn ew c a p i t a li n t oe x i s t i n gf o u n d a t i o n sa n dwh i ch m a n d a t e t h ec o n t i n u i n ge r o s i o no ft h e i rp r o d u c t i v ea s s e t s . 4 �M any o ft o d a y ' sf o u n d a t i o n s-t h eW . K . K e l l o g gF o u n d a t i o n b e i n gb u to n ee x am p l e-s t a r t e da s sm a l lf o u n d a t i o n sw h i c h l a t e rr e c e i v e ds u b s t a n t i a la s s e t sf r om~ d o n o ra n d / o rh i s e s t a t e . M any o ft h esm a l l e rf o u n d a t i o n so ft o d a yw e r e c r e a t e d w i t h t h es am ei n t e n t . How ev e r , b e c a u s eo ft h es e v e r a ld i s i n c e n t i v e so f TRA -69 , no s i g n i f i c a n tam o u n to fn ew c a p i t a lw i l l now f l owi n t ot h e s ef o u n d a t i o n s . B u tt h em o s t d e b i l i t a t i n gp r o v i s i o no ft h ec u r r e n tCod ei s S e c t i o n4 9 4 2 ,w h i c h r e q u i r e st h a tp r i v a t ef o u n d a t i o n sp a y o u t f o rt h e i rc h a r i t a b l ep u r p o s e se a c hy e a rt h eg r e a t e ro fn e ti n c om e o r6 p e r c e n to ft h em a r k e t v a l u eo ft h e i ra s s e t s . I n v e s b n e n t m a n a g e r s know t h a th i s t o r i c a l l yp o r t f o l i o sp r o d u c el e s st h a n 6p e r c e n t ,a c t u a l l yo v e rt h el o n gt e rmsom ewh e r ec l o s e rt o 3 . 5o r4p e r c e n t . T h u s , t om e e t t h i se x c e s s i v ep a y o u tr e q u i r e m e n t , f o u n d a t i o nm a n a g e r s m u s t c o n s i s t e n t l yi n v a d et h e i rc o r p u s , t h u sc o n t i n u a l l ye r o d i n gaw ay t h ep r o d u c t i v eb a s e on w h i c h t h e i r p h i l a n t h r o p i ca c t i v i t i e sd e p e n d . T h i si sa nu n s o u n dp r a c t i c e i nt h ep r u d e n tf i s c a lm an ag em en t o fp r i v a t ee n t i t i e sa n dw i l l p r o g r e s s i v e l y im p a i rt h ee f f e c t i v e n e s so fa l lf o u n d a t i o n s . L e tm e i l l u s t r a t et h eim p a c to ft h ep r e s e n tp a y o u tr e q u i r e m e n t u s i n gt h ef o u n d a t i o nw i t hw h i c h I ama s s o c i a t e d . F rom i t si n c e p t i o ni n1935 t h r o u g hi t s1976 f i s c a ly e a r ,t h eW . K . K e l l o g gF o u n d a t i o nT r u s tw i l lh a v em ad e a c t u a ld i s t r i b u t i o n o f $296 m i l l i o n f o rc h a r i t a b l ep u r p o s e s . I ft h ed i s t r i b u t i o n r e q u i r em e n t so f TRA -69 h a db e e ni ne f f e c td u r i n gt h o s e42 y e a r s 5 �and had the Trust been required to annually distribute the higher of income or 6 percent of the market value of its assets, the distribution over the period would have totaled $316 million, or an increase of only $20 million. However, to meet this mandatory payout requirement, the Trust would have had to sell Kellogg stock having a market value today of $440 million. Thus, to provide a 6 1/2 percent increase to charity, the Trust's curyent assets would have been reduced by 53% to a market value of $392 million, as opposed to its actual market value of $832 million. Furthermore, future distributions to charity would have been significantly reduced because of the depleted assets and 1 earnings of the Trust. This is evide nced by the fact that during 1976 the Trust will earn approximately $31 million which will be distributed for charitable purposes as opposed to earnings of only $15 million which would be available had its assets been depleted by the TRA-69 payout requirements. Such evidence as this convinces us that the best interests of society are not being served by existing legislation and that, while many provisions of TRA-69 are laudatory, certain others warrant modification on the basis of experience to date. In these observations, I have referred often to small foundations. The Foundation Center tells us that there are approximately 25,000 private grant-making foundations in this country. When the word "foundation" is mentioned, even to those 6 �k n ow l e d g e a b l ei nt h ef i e l d ,t h ei n s t a n tr e a c t i o ni st ot h i n k~ b i g : F o r d ,R o c k e f e l l e r , J o h n s o n ,M e l l o n , K r e s g e , L i l l y , p e r h a p se v e nK e l l o g g . N ~~ T h e s ea r eh i g h l yv i s i b l ef o u n d a t i o n sw i t h l a r g ea s s e t s ,s u b s t a n t i a la n n u a le x p e n d i t u r e s ,p r o f e s s i o n a l s t a f f ,a n da n a t i o n a lo ri n t e r n a t i o n a ls p h e r eo fa c t i v i t y . B u tw e n e e dt or em i n do u r s e l v e st h a t90% o ft h ef o u n d a t i o n s-o rsom e 2 2 , 5 0 0-h a v ea s s e t so fl e s st h a n$1 m i l l i o n . e n do ft h es i z es p e c t r um ,o n l y~ A tt h eo t h e r h a v ea s s e t so f $100 m i l l i o n o rm o r e . W h i l e t h eb i gf ewm ay b et h em o s t n ew sw o r t h yi nv i ew o ft h em e d i a , t h e" q u i e tm a j o r i t y " o ft h ep r i v a t ef o u n d a t i o n w o r l da r e o i io~ p u r s u i n gt h e i rr e s p e c t i v ea n dd i v e r s e a c t i v i t i e si nt h e i ri n d i v i d u a lc omm u n i t i e s . And t ot h ep e o p l e o ft h o s ec omm u n i t i e s-l a r g ea n d sm a l l ,i ne v e r ys t a t e-a n d t ot h ep r i v a t ev o l u n t a r yo r g a n i z a t i o n sa n di n s t i t u t i o n sw h i c h s e r v el o c a ln e e d s ,t h em o d e s t c o n t r i b u t i o n so ft h e s eq u i e t f o u n d a t i o n sa r ev i t a li n d e e d . B u ti nt h ep u b l i ca r e n a-e s p e c i a l l ya sp o l i c yd e c i s i o n s a r em ad e -t h eq u i e tm a j o r i t y a r en o th e a r d . I n d i v i d u a l l y t h e yh a v el i t t l e v o i c e ;e v e nc o l l e c t i v e l y ,i ncommon w i t h a l l f o u n d a t i o n s ,t h e yl a c kp o l i t i c a lc l o u t . U s u a l l y t h o s ewho a r el o o k e dt ot os p e a kf o rf o u n d a t i o n sa r ef r omt h ea t y p i c a l b i gf ew . Too o f t e nt h e ys p e a kf r omt h el im i t e dv a n t a g ep o i n t o ft h e i rp e r s o n a le x p e r i e n c eo rs i t u a t i o n ,w i t h o u tr e c o g n i z i n g o ra p p r e c i a t i n gt h a tt h e i rp o s i t i o nm ay n o tr e f l e c tt h ew i sdom 7 �o rb e s ti n t e r e s t so ft h ep r i v a t ef o u n d a t i o nf i e l da tl a r g e . 1 0l t sg r e a tc r e d i t ,t h eCoun ci {h is d i v e r s i t y among f o u n d a t i o n sa n di n ~ nd u p u b l i cs t a t em e n t / c ts t h ebrO a d s u c he x c e 1 1 e~ r e p o r tw h i c h t h eC o u n c i l u s ei n ~ ~ ~ / ~ i s t otn e F i l e rC omm i s s i o n ~ IV W h i l e t h i sa s s e s sm e n to ft o d a y ' sf o u n d a t i o ni nt om o r r ow ' s w o r l dm ay h a v ea g l o om yc om p l e x i o n ,i t i ss h a r p l yb r i g h t e n e d b y twor e a l i z a t i o n s : F i r s t ,t h ea g e n d ao fp r e s s i n g hum an i s s u e sd e s e r v i n gt h e b e s te f f o r t so fb o t hp r i v a t ea n dp u b l i cr e s o u r c e si sl o n ga n d u r g e n t . I nr e c e n ty e a r s ,a sg o v e r nm e n th a sg r ow ne v e rl a r g e r a n d mo r e e n c om p a s s i n ga ta l ll e v e l s ,som eh a v es e e nt h ep u b l i c t a x s u p p o r t e ds e c t o ra st h eu l t im a t ea r c h i t e c ta n de n g i n e e r i na l lp r o g r am so fs o c i a lp u r p o s e . T h i sc o n t r a s t sw i t h t h e t e s t e dt r a d i t i o no ft h eAm e r i c a ne x p e r i e n c e-t h em u t u a l l y b e n e f i c i a lr e l a t i o n s h i p so fp u b l i ca n dp r i v a t ee n t e r p r i s ei n s e r v i n gt h eb e s ti n t e r e s t so fo u rn a t i o na n di t sp e o p l e . B u tt h e r ei snow a g r ow i n g aw a r e n e s s among o u rc i t i z e n s t h a tb u r g e o n i n gg o v e r nm e n t a lp r o g r am sa n db u r e a u c r a c i e s ,e v e r g r e a t e ro u t p o u r i n g so fg o v e r nm e n t a lf u n d sa r en o tf u l f i l l i n g o u rn a t i o n ' sg o a l s . S im u l t a n e o u s l yi nt h ev o l u n t a r ys e c t o r , p r o g r am sa n dp r o f e s s i o n a l sa r eb e c om i n g mo r e s o p h i s t i c a t e d , 8 �responding in more adequate ways to the complex problems of society. The varied talents of volunteers are being effectively utilized in more sensitive and valuable services which meet human needs. Often working in concert, public and private efforts--in health care, education, libraries, services for the elderly and the handicapped, youth-serving organizations, church-related activities, special needs of minorities, cultural arts--are better meeting human needs than could either alone. Voluntary giving -- of time, talent, money -- will continue to be an important ingredient in the betterment of the human condition, enhancing recipient and giver alike. Common sense tells us that the future will be even more demanding of individuals and institutions than the past. In the spirit of this conference, the best of both the private and the public will be required. Hopefully private initiative and voluntary effort will be permitted and encouraged to play a major and appropriate role in the future as in the past. Second, though certain provisions of TRA-69 are proving counter-productive to the best interests of society by impacting negatively on philanthropy, the law can be modified. Experience over the past six years provides a basis for careful review and revision through the Congressional process. Unhappily, to date in the crowded agenda of priorities confronting Congress, the subject of tax reform has received scant attention. And when tax matters are addressed, the 9 �/ c o n c e r n so fp h i l a n t h r o p yh a v en o tr a n k e dh i g h . H o p e f u l l y , c o n c e r t e de f f o r tb ys u c ha st h eg r o u pa s s em b l e dh e r ew i l l r e s u l ti nf u r t h e rc o n s i d e r a t i o no ft h e s em a t t e r s b yC o n g r e s s . Iw o u l d em p h a s i z et h a tmy c o n c e r nY e s t s n o ta l o n ew i t hp r i v a t e f o u n d a t i o n s ,b u tw i t ha l lp o l i c yi s s u e sa n dl aw sw h i c hb e a ro n t h ep r i v a t en o n p r o f i ts e c t o r . F o re x am p l e ,w e m u s tb ev i g i l a n t t h a tf u r t h e rd am ag ei sn o td o n et h r o u g hc h a n g e sw h i c hc o u l d n e g a t i v e l ya f f e c tc h a r i t a b l eg i v i n g by a l t e r i n gt h ec h a r i t a b l e d e d u c t i o no rd i s c o u r a g i n gg i f t so fa p p r e c i a t e da s s e t s . On e h o p e d f o ro b j e c t i v eo ft h eComm i s s ion on P r i v a t e P h i l a n t h r o p ya n dP u b l i cN e ed s i st os t im u l a t ea s y s t em a t i c r e t h i n k i n gby t h eAm e r i c a np e o p l eo ft h er o l eo ft h ep r i v a t e n o n p r o f i ts e c t o r . Th ea n a l y s e sa n dr e c omm e n d a t i o n so ft h e C omm i s s i o np r o v i d eu s e f u la n ds t im u l a t i n gi n s i g h ta n dc a n s e r v ea st h eb a s i sf o rr e a p p r a i s a l ,n o to n l ya tt h en a t i o n a l l e v e lb u ta tt h eg r a s sr o o t s . Th ec h a l l e n g et ot h eg r o u ph e r e a s s em b l e di st oh e l pt h i sh a p p e na c r o s st h el a n d . L e t ' sn o t m i s s t h i so p p o r t u n i t y ! I nsumm a ry ,i f p r i v a t ef o u n d a t i o n sa r et ob ea n im p o r t a n t p a r to ft om o r r ow ' sw o r l d , s e r i o u st h o u g h ts h o u l db eg i v e nt o t h ef o l l ow i n g : 1 . T h ep r o v i s i o n so fTRA -69 w h i c h im p a c tn e g a t i v e l ya n d d i s c r im i n a t ea g a i n s tp r i v a t ef o u n d a t i o n ss h o u l db em o d i f i e d . B th eF i l e Co ~ ~~ - ~ - F o u n d a t ± o n .- i-- ~o t h e r e _ s h o u l db ear e d u c t i o no ft h e4% 10 �excise tax, which diverts money from donees; an adjustment of the required annual payout; removal of special limitations on gifts to foundations; adjustments in certain divestiture requirementsi and an easing of certain program restrictions. 2. Diversity among private foundations should be pre- served and encouraged. Fortunately, all do not have the same purposes, ar eas of interest, style of operation, or sphere of activity. Such variety, with responsible stewardship by conscientious trustees and managers and with appropriate supervision in the public interest, serves donees and society ert-a-:i:n-l-y-pri va Le foum:lat ions as well. us-t -be res p o n-sive to -"'-=!-''-U.J.. t toe panel on Wednesda he s e-a.r-El-a-S 0 f a,.;t;.t..e tl t j on Sb0 lJ 1d no-t b e. donee groups, described by some as traditional 'fyP ut Other eligible the United Way, the Boy Scouts, 4-H, the symphony, hospitals and homes for the elderly, colleges and universities, both public and private should not be denied continuing private sustenance. 3. Constr aints and regulation, whether by governmental edict or self-imposed by the field, should be kept to a minimum. Again assuming responsible stewardship and appropriate supervision, private foundations should not be further burdened with stifling regulations, bureaucratic procedures, unending caveats. 4. Finally, voluntary giving whether of time or talent or money and by whatever means -- is a fragile human action, 11 �subject to careful nurturing but easily turned off. The person of means who corrunits resources to a private foundation does so voluntarily, irrevocably and completely -- 100 percent, beyond any rate of taxation. Further, those funds can then be ex- pended only in accordance with the tax law, under IRS ] supervision, and only for purposes and to org Qnizations and institutions designated by Congress as being e ducational, charitable and in the public interest. To go far beyond this in prescribing issues to be addressed, clientele to be served, procedures and policies will be counter to the interests of a vital private sector. Centralized dictation will serve only to further deplete the philanthropic reservoir. ( �~ ~iJ--.- ~ ~ < 2 . . . v - ~ '-J~~ ...'~ I fp r i v a t ef o u n d a t i o n s ,l a r g eand sm a l l ,a r et oc o n t i n u et op l a y a v i t a lr o l ei ns h a p i n gt h eq u a l i t yo fl i f ei no~ c o u n t r y ,t h eg e n e r a l p u b l i c ,a sw e l la st h el e g i s l a t o r swho r e p r e s e n tth em ,mu s tb eb e t t e r in fo rm ed . Found a t ion sc anandmu s t imp rov eou r im ag ew i t ht h eg e n e r a l ~i , w i t hl e g i s l a t o r s ,andc e r t a i n l yw i t h YOU t h eg r a n t s e e k e r sby do ing f i v er e l a t i v e l ys im p l et h i n g s . We mu s t : 1 . C l e a r l yd e f i n eandp u b l i s hou r prog r amm a t i cand g eog r aph i c a r e a so fi n t e r e s tando b j e c t i v e s . u b l i s h andc i r c u l a t es imp l er e a d a b l ea n n u a lr e p o r t st oo u r 2 . P con sum e r s andt ot h eg e n e r a lp u b l i c . l edg e co r r e spond en c ef romg r a n t s e e k e r s ;g i v e th em 3 . Acknow t h ei n f o rm a t i o nt h ey n e ed t od e t e rm in et h et y p e so fp rog r am s w em ay b ea b l et os u p p o r t . s t a b l i s hr e g u l a rg ran tr ev i ewc r i t e r i aandp r o c e d u r e s . 4 . E M a k e o u r p r o g r am s k n o w n t o o u r l e g i s l a t o r s & l d t o t h o s ewho 5 . w i l li n f l u en ce t h ef o rm u l a t i o no ff u t u r ep o l i c y . Th et r a d i t i o n a lr e t i c e n c eon t h ep a r to fm any f o u n d a t i o n sh a s i n h i b i t e dt h ek i n do fp u b l i cunde r s t a n d i n gand c o n f i d e n c ef o u n d a t i o n s d e s e r v e . T h e r e f o r e ,f o u n d a t i o n smu s t t a k ea mo r e a c t i v er o l ei ni n fo rm ingt h ep u b l i cabou to u rm i s s i o n s , o u r un iqu ec o n t r i b u t i o n sand g e n e r a ld e s c r i p t i o n so ft h ewo rk w ea r edo ing . 6 �-J-a - - �v Th er e s o u r c e so fp r i v a t ef o u n d a t i o n sa r e sm a l li nr e l a t i o n t on e e d . B u tu t i l i z e dw i s e l y , t h e yp l a y ad i s t i n c t i v er o l e , o f t e nc r i t i c a la n dc a t a l y t i c ,i np r o v i d i n gf o re x p e r im e n t a t i o n , r e d i r e c t i o n ,e x p l o r a t i o n ,s e r v i c e. . . .a n dt h e r e b yc o n t r i b u t e t ob e t t e rm e n to ft h ehum an c o n d i t i o n . I nc o n c e r tw i t ht h ep u b l i cs e c t o r ,p r i v a t ei n i t i a t i v ei s v i t a lt of u r t h e rp r o g r e s si nf u l f i l lm e n to ft h e i ~ d r e am . P r i v a t ef o u n d a t i o n s ,o n c ea na p p a r e n t l ys e c u r ep a r to fp h i l a n t h r o p y , a r enow a ne n d a n g e r e ds p e c i e s . I ft h e ya r et ob ea v i t a lp a r t o fp r i v a t ee f f o r ti nt h ef u t u r ea si nt h ep a s t ,t h e ym u s t h a v e t h eu n d e r s t a n d i n g ,s u p p o r t ,a n dh e l po fo t h e r swho f e e la s do w e t h a tp r i v a t ev o l u n t a r ye f f o r ti sim p o r t a n t . O u r sm u s t b ea r e a f f i rm a t i o no ft h ei n d i v i d u a la n dt h ev o l u n t a r y ,t h a tt h e g r e a t e s tnumb e rm ay b e n e f i ta n dt h eh i g h e s tg o a l sb es e r v e d . 12 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1976-09-26_RMawby_SPE Title A name given to the resource Russell Mawby speech at the Council of Minnesota Foundations Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 26, 1976 for the W. K. Kellogg Foundation at the Council of Minnesota Foundations to discuss the importance of foundations in the community. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1976-09-26 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/398e8debd596e681aec565ad648f77d2.pdf 545ad613b5007afc93cf8577fbbc3ed6 PDF Text Text ? Notes from RGM's Presentation for the Celebration of the 50th Anniversary of WKKF Support in Latin America and the 90th Anniversar y, of PARO (cJ.,- J2. Sequoia Restaurant ,,:. Washington, D.C. September 23 , 1992 ~ ( ?--1 , Y7~-~ .u 1< . F- - J I �,~--t . t-..)~ ~.. /' 1 ~ ~~ ~~ - �• �5 - ~ PASS ~ a l s o consu ltatn ts w h i c h ~ ~ a c c o r d i n g t o ~ o f ~ ~ the c a p t a t i o na n d the use o f f i n a n ci a l ~ in ~ ~ o f ~ ~ sreat ~ I n o rder t o ~ ~ a n d a ut L ' lIzes PASS ~ P an ~ 1 .1t i l i zes the a n d E d u c a tion ~ F o u n d a t i o n (PAHEF) . 3 . PAHO f :! .ND WKKF RELAT IONSH IP : AH ISTOR ICAL.R ! ; :V IEW " .. " PAHO a n d WK KF w h i c h h a ss t a r t e d in1 9 4 3 . h a s ~ m any ~ a c tivitj"es• ~ k i n d s o f ~ I nt h i s~ m aj o r s tEPS t h a t i n s t itution s. .:"'. : - ~ a rE ~ ~ o n l y ~ takEn jo in tly ~ ~ i t ~ a n d ~ ~ ~ ~ ~ ~ by the ~ s omE . ' two in a c h r o n o l o g i c a l w a y : " ' " A . I n 1 9 4 3 . the t o ~ ~ ~ ~ ~ t h r o u g h ~ Bur : eau, a ~ ~ on ~ ~ I n1 9 4 9 . ~ P an WKK F ~ w i t h ~ ~ pu rpOSE o f f a s c h o o l child re n, o t h r o u g ha l u n c hp r o g r am . PASB and WKKF T t h r o u g hg r a n t s .h e l pE d t h e estabI ishmen t ~ ~ ~ ~ B . ~ S ani t a r y ~ ~ ~ - o f the Am e r i c a a n d Lnstit ute ~ ( INCAP ) . o f N u t r i t ion f o r �6 - C . ~ t h em i d 5 0 s , in o r d e rt oachiev cb e t t e r c o o pE r a tion amon g t h ea g e n c i e sw h i c h p r o g r am in L a t in Am e r i c a J dup1i c ation a voi d ~ represe ntatives o f PASS , a g e n c i e s ,m e t tw i c ea ~ f comp r ' e h e n s i v e a ~ a n d p l a np r o g r amm i n g . o fL a t i n ~ ~ n e e d s i n d e nt a l e d u c a t i o na n d t r e a tm e n t s . b a s i s o f t h e . ..' ' p r o g r am a n d d e v e l o p i n ~ 9 6 1 , I n 1 PAHO equipm en t . . : ~ On ~ t h e s u p p o r t t o ~ t h eF o u n d a t i o nr e s p o n d e dt oa r e q u e s t f rom c o n d u c t t o r e g i o n a l h r e e r e p r e s e n t a t i v e s f r om77 ~ s em i n a r s t o Am e r i c a n d e n t a ls c h o o l s . Th e, e f f e c t s I "e s t m a j f i n d i n g s ,t h e F o u n d a t i o n h ad ~ a j o r commi t t ed m . E . o t h e r t h ew i t h t h eF o u n d a ti o ns u p p o r t , PASS ~ m ad e o f WKKF , t o and t r a c e dd u r i n g t h e o ft h e1 9 7 0 s ,l e a d i n g o f t h e I n n s t i t u t i o no f t h e F o u n d a t i o n a s s i s t e d 1 9 7 6 t o t h e i I n n o v a t i o n in D e n t a l P r o g r am . J F . E d u c a tio n a l S e r v i c e s D e l I a a US$ 5 m i l li o ng r a n tw a s m ad e t o PAHO t o h e a d q u a r t e r s a s h i n g t o n , D .C . , w i t h , .in W ~ ~ c am e t h e p r o v i s i o n t h a t t h e PAHO ' s m emb e r g o v e r nm e n t s w o u l d s p e n da n de q u a l amoun to f mon ey o v e r a 2 0 y e a rp e r i o d on e d u c a ti o n and t r a i n i n g ,n u t r i ti o n , p r o v em e n tp r o g r am s in t h eh em i s p h e r e . a n d w a t e r im ~ �7 - ~ site f o r the b u i l d i n g . valued a tS 1 . 1m i l l i o n a tt h a t tjm e , w a s ag i f to f the U .S . G . I n1 9 6 7 . s u p p o r t e d H . ~~~. .o fw a tE r ~ ~ c o o pE r a tiVE d e n t a l a ~ GOVE rnmEn t . su ppL ies w a s t h eg o a lo f pu bli chealth p r o g r am t h ePASS a n d WKKF . 1 9 6 9 .a sp a r to fi t sc o n ti n u i n gE f f o r t B l : } ~ p r o v e t o im d e liVE ry o fh e a l t hc a r e .t hEF o u n d a ti o np r o v i dE df u n d s t o t hEP an AmE r i c an H e a l t h a n dE d u c a ti o nF o u n d a t i o nt o Enab1E PASB tOE St a b 1i s h in tensivE c a r e u ni t si n s i~ • p ri n c i p a ltE a c h i n gh o s p i t a l s in l a t i nAmE r i c a . 1 . By t hEbE g i n n i n go ft h e7 0 s .w i t h t h e PAHEF . KE l l o g g h rEE -YE a rp r o jE c t .l a tE rE x tE n dE d f o r two u n dE r t o o k at mo rE YE a r s . t ot a kEm e d i c a l s e r v i cE so u to f h o s p i t a l s in t0 c \nd nE i g h b o r h o o d s . dEm o n s t r a ti o n s t o p romOVE ThE t hE pro ject i d e a USEd o f b r i n g i n g t o gE t h e r tE a c h i n g a n d services tosether i n co mmuni t~ m e d i c i nE . J . D u r i n g t h e 1 9 7 0 s . commi tme nt co llabo ratlns ---- t o t h e imp rOVE w i t h r i c a n l a t in AmE F o u n d a t i o n PAHO mE d i c a l in o rder m adE a m a j o r e d u c a ti o n t o estab li s h two C e n tE r so fE d u c a t i o n a l TEC h n o l o g y - ~ f o r t hE HE a l t h P r o fE s s i o n s (C lATES ) . onE i nR i o dE J a nE i r o t hE o t hE r onE in MEx i co C i t y . ThE o u t s t a n d i n g SUCCESS o f t hESEcenters L ed the F o u n d a t i o nt oapp rOVE in 1 9 7 6 the estabIlshment o f C lATES s u b cE n t e r s . under thc . . �8 - . a u s p i c e so f PAHO . in a d o z e nL a t in Am e ri c a nc o u n t r i e s . K . c omm i tm e n t W i th m a j o r to rogr am f i v e y e a r p i n a u g u r a t e d in 1 9 7 4u n d e r PAHO ' sa e g i s ,t h eF o u n d a tion a d d r e s s e d the m a te r n a l and chi l dh e a l t hc a r ep r o b l em s . Th e o r i g i n a lp r o j e c th a sb e e ne x t e n d e df o u rt im e s , a s i t sa c h i e v em e n t s h av e e n c o u r a g e da t t em p t s t o r e a ch m o r e p e o p l e a n d commun i ti e s . The ini t ia1 1 0 s i t e s h a v e increased t o1 8s i t e sin s e v e r a lc o u n t r i e s . L . I n1 9 7 7 ,t h eWKKF f u n d e d an i n t e r n a t i o n a ls ym p o s i um o n l u o r i d a ti o n in M s a l t f e d e l li n ,C o l om b i a ,. .. . . sP8n ? ed b y . .~ PAHO . , ~ WHO . ' and t h e C o l om b i a . Univers i t y o f An ti 9 q u i a . i l l Wo r ld a u t h o r i ti e son f l u o r i d a t i o n ~ s m a n u f a c t u r i n g a n d d i s t r i b u ting s a l t i s s u e s .'such a f l u o r i d e sa n dg a i n i n g M . Th e ~ i ca c c e p t a n c ef o rt h e i ru s e . v i s i b l e a c h i e v em n t s o ft h e m a t e r n a l he a 1th and c h i l d p r oj e c t s .c o s p o n s o r e d by PAHO a n dt h e K e llogg F o u n d a ti o n . l e dt o t he exp ansion in 19 7 9 0f t h e L at i l l ev e lopm en t Am e r ic a n C e n te ro fP e ri n a t01ogy and- Hum an D in M o n t e v i d e o . U r u g u a y . N . D u r i n g t h e 1 9 7 0 s PAHEF . t h r o u g h ta g r a n t f r om W KKF . o r g a n i z e d a n e tw o r k o f 20 n u r s i n g d em o n s t r a t e im p r o v e dr i u r s in E u c a t i o n . s c h o o l s to �o . 9 7 0 s a t e i In t h e l in conce r t W I (KF r w i th p r o g r am o f in h e a1 th a dm i n i s t r a ti o n , combini n g ~ t r a i n i n g in s c h o o ls u n d e r t o o k nEW o f a dm i n i s t r a ti o n o r p11b1i c w i th hea1 th p r a c t i c a l exp e riEnc e in hE a1th i n s t i t 1 1ti o n s• p• 9 8 5 In i 7 r o j e c t t PAHO b e g a na F o u n d a t i o n f u n d e d p o hE wo rk o f·i 8m a t e r n a l a n d chi1d c o o r d i n a t e t h e a l t h p r o j e c t w i t h t h ee f f o r t so fi 0p r o jE c t s in h e a l t hc a r e Th e a dm i n i s t r a t i o n . Me> : ic o , C e n t r a l AmE r i c a , 1i nk t h e si> : r e g i o n s : . . .. E n g li s h s p e a k i .n s - t hEAnd e an c o u n t r i e s ,t h eS o u t h e r n Con e a n d C a r i b b e a n , B r a z i l . p r o j e c t s W o r k i n g I n a l l s u p p o r ti n g t eVE l o pm e n t hE d s u b rE g i o n s , PAHO o f p r im a r y hE a l t h c a rE: y s tEm s a n da p p r o p r i a t et e c h n o l o g iE S . d e l i v e r y s l o p i n g i s a l s o dEVE m a tE r i a l s , o f mod e l a n d PAHO d i sSEm i n a t i n g e d u c a t i o n a l t r a i n i n gm a n a g e rs t o p r o g r am s , IS ~ ou t f iE l dt r i a l s f o s tE r i n g i n t e r n a t i o n a l h r o u g h a newsletter, a communic a ti o n s t n dl i n k i n g t hE CE n t e r s and p r o jE c t s in a m i c r o c om p u t e r n e tw o r k . / o r � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1992-09-23_RMawby_SPE Title A name given to the resource Russell Mawby speech at the 50th Anniversary of WKKF Support in Latin America Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 23, 1992 for the W. K. Kellogg Foundation at the Celebration of the 50th Anniversary of the W.K. Kellogg Foundation support in Latin America and the 90th Anniversary of PAHO. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1992-09-23 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/40d74f5ae70e9c36e95a2c11d9ebb769.pdf 49b266a027bd4179d8fd1b6576952ee0 PDF Text Text al -1- "Philanthropy on the Firing Line" Remarks by Dr. Russell G. Mawby Chairman of the Board W. K. Kellogg Foundation and Chairman of the Board Council on Foundations Tuesday, September 21, 1982 Annual Meeting Spokane Inland Empire Foundation Spokane, Washington 1. I am delighted to be here today for the Annual Meeting of the Spokane Inland Empire Foundation. I want to add my own congratulations to Dr. Jim Mueller as your newly elected Foundation President. I am pleased to be here in two related capacities: ONE, as Chief Executive Officer of a Foundation which has been active for nearly five decades in supporting projects 1n the Pacific Northwest and the Inland Empire; and TWO, as Chairman of the Board of the national Council on Foundations -- an association which looks to community-based foundations, and regional groups of grantmakers, for leadership in responding to �al -2- key social problems. It is equally true that foundations, such as your own, provide the grassroots direction, and "clout", which determine whether the professional development, legislative and other initiatives of the national Council reflect the needs of the field and are successful. Jeanne Ager suggested that I talk briefly about current foundation legislative concerns, and a bit on the importance of cooperation between community, private, and corporate philanthropy. We all know there is particular urgency in such cooperation today because of the scope of state and federal funding cutbacks for human service programs. two topics. I'll focus my comments on these First, just a few words about the Foundation I represent. II. In preparation for today, I went back to our files to refresh myself on the scope and types of Kellogg Foundation programming in the Pacific Northwest. Kellogg is a private, grantmaking Foundation which supports demonstration projects �al -3- within the three broad fields of health, education, and agriculture. Our grants in the Northwest have totaled about $30 million, including $12 million for projects in the State of Washington. The Kellogg Foundation has supported projects to help Washington hospitals develop cooperative health care services, and it has provided computer equipment and other resources to many of the state's colleges and universities so they could affiliate with a national library network which permits rapid sharing and retrieval of scholarly publications throughout the United States. Other major grants have gone to Indian tribes in Northern Washington to help them develop management training and education programs for their people, to establish university graduate programs in a variety of new educational and health care specialties, and to support agricultural rural leadership and community development initiatives in the state. In fact, the success of such rural leadership efforts in Washington has provided me with several opportunities to visit Spokane, Pullman, and rural agricultural areas of Washington in the past two years. �al -4- All this is just to note that there has been a long relationship and affinity between the Kellogg Foundation, the Pacific Northwest, and an awareness of its potential, and its probl ems. III. Of course, when talking about social problems today, it's impossible to ignore (and some would say overemphasize) the impact of recent federal and state funding cutbacks. very serious subject. It is a At the same time, I have to caution myself to avoid both the solemnity and sophistry that too often ln Washington enshrouds and distorts related issues. The federal bureaucrats love to confuse us by references to "zero bracket deductions", "social safety nets" (some with holes, and others without), "entitlements", "windows of vulnerability" (some open and others closed), "block grants", "R. I . F . s " (or Reductions In Force), and "transfer payments" . Those of us in th e foundation world have long recognized the Treasury Department and its Internal Revenue Service as the true masters of bureaucratic and biased double-talk. In fact, they refined it to the level of "high art" in portions of the �al -5- I.R.S. code which relate to philanthropy. There we find "disqualified persons!', "excess business holdings", and a host of other terms and restrictions that, I believe, have intentionally negative inferences. I will return to these regulatory restrictions a bit later. However, as these examples indicate, words and their implied meaning are important. amusing. At times, they are also quite My work gives me an opportunity to travel some. A few years ago I was in Brazil, ln the Northeast part, and I was spending time with a state minister of agriculture to learn about their problems with food production. excellent; his English was difficult. His Portuguese was After our long discussion, he gave me a great report that they had very carefully translated -from Portuguese into English -- regarding agriculture in that part of the country, their problems and plans for the future. On the airplane I was reading this report and got down to the section on large animals. The large agricultural animals important in that part of Brazil were cattle, horses, and �al -6- donkeys. It was a sort of belabored English translation, with the verbs backwards. But it was very understandable. However, the translator wanted to be a little more sophisticated and official sounding, so he shifted from cattle, horses, and donkeys to bovines, equinines, and "asinines." We've had the same problem with the bureaucrats in Washington over the past decade. They have too often, perhaps out of a sense of self-worth and self-righteousness, distorted the English language to confuse issues and cultivate their concepts of social engineering. And as I said, that has been particularly so in the wording of I.R.S. regulations and restrictions on philanthropy. IV. We can be thankful, however, that the atmosphere of distrust, conflict, and skepticism between the governmental, private, and business sectors seems to be changing, due in part to several Reagan Administration initiatives. Orator-statesman Henry Clay said over a century ago that: "Government is a trust, and the �al -7- officers of the government are trustees; and both the trust and the trustees are caretakers for the benefit of the people." There is a noticeable similarity between that cred6 and the real philosophy behind many, if not all, charitable foundations. My point is that the federal government's view, and that of the nation's foundations, has recently developed into a more symbiotic relationship than possible a decade ago -- when the 1969 Tax Act seemed, for practical purposes, to be sounding the death knell for private foundations. By working individually, and together -- for example through area associations like the .. Council of Michigan Foundations in my own state and your Pacific Northwest Grantmakers Forum, as well as through the national Council on Foundations -- we have achieved significant legislative success in correcting several of the most damaging aspects of the 1969 Act. I refer to 1976 when Congress reduced the private foundation pay-out requirement from an escalating 6 percent to 5 percent or all of income. We know now that if the original escalating �al -8- 6 percent pay-out requirement -- which was tied to inflation -had remained in effect, it would have devastated the assets of almost all foundations. In 1978, foundations also were successful In getting the exise tax levied against them reduced from 4 percent to 2 percent. And then last year, the pay-out requirement for private foundations was again changed by Congress; set at a flat 5 percent. This new law also frees foundations to take advantage of investments which are most productive. Further, it will increase the total amount of foundation grants, after a short transition period, by expanding the asset base on which the 5 percent annual pay-out requirement is applied. It is, In sum, good for both foundations and their grantees. There continue to be other legal impediments to effective foundation philanthropy -- some which could be removed solely by governmental administrative action; others which would require legislative remedies. It's my own particular hope that the next year will see foundations work together with their �regional associations, the Council on Foundations, and with top-level leaders in the Reagan Administration to remove those administrative impediments within the Treasury Department and I.R.S. Code. There are five of these types of impediments. Let me just mention the one which I consider most important, and on which I hope that you, your area association, and the Council on Foundations will place the greatest emphasis in the months ahead. As here in Spokane and the Inland Empire, many communities throughout the country have established community foundations, as a means of ensuring continuing support for local or regional charitable needs. Typically, such a community foundation's endowment comes from a continuing flow of both large and small contributions from members of the public. The foundation's charitable program is, in turn, directed by a board of community representatives. Thus, community foundations are generally characterized by substantial and continuing public involvement and support. Recognizing this fact, the Treasury regulations �al -10- provide that a community foundation can qualify as a "public ch arity" provided it is responsive to the community and is not "controlled" by a limited group. However, the criteria established by existing regulations not only consider a variety of factors indicative of a community foundation's public character, but also require that the foundation meet a rigid "10% of support" test. This support test -- which requires that a community foundation receive 10% or more of its annual support In the form of contributions from the public -- has the inevitable and undesirabl e effect of penalizing a community foundation for its earlier succe ss in attracting contributions. As the value of the community foundation's endowment -- and thus, of endowment income increases, it becomes more and more difficult for the foundation to attract sufficient annual contributions to meet the 10% test. This problem could be avoided Qy eliminating the 10% test and determining the foundation' s public charity status �al -11- solely on the basis of the other factors identified by the Internal Revenue Service regulations. There is one other legislative problem that I want to mention -- not because it will have been our own priority on the legislative front in the short term -- but because recent and anticipated events in Washington may see this problem rise to the forefront strictly on the basis of legislative momentum. This issue is one I alluded to earlier as an example of such biased, bureaucratic double-talk as "excess business holdings" and "disqualified persons." In essence, Section 4943 of the Internal Revenue Code limits the holdings of a private foundation and its "disqualified persons" (i.e., generally the donor, members of the donor's family, and foundation managers) in any "business enterprise" to 20% of the voting power of the enterprise. Any holdings acquired by gift or bequest above the 20% level must be disposed of by the foundation within a five-year period. \fuat this, in effect, does is discourage the creation of new foundations by �al -12- entrepreneurs or families. For under current law, their donation of company stock to a foundation could, within a five-year period, result ~n a forced, "distressed" sale of the stock, and even the entire company, and possibly to another corporation which has little regard for the company's business values, or its ties to the community or region where the company is headquartered. There has been a dramatic drop in the creation of new foundations since the 1969 Tax Act, and I believe that much of this drop is attributable to this "excess business ho l.d i.n g s " provision, as well as to the inequitable provision of the law which sets a lower level of taxable deduction for gifts to foundations than to all other charities. There are indications Congress may address the problem of excess business holdings this fall by holding legislative hearings on the subject. We hope that all of you -- who represent the philanthropic leadership in the Pacific Northwest -- will be willing to work with others throughout the United States to �al -13- resolve these two legislative issues which affect the future of both community and private foundations. From past legislative successes, mentioned earlier, we know that it is the individual foundations and their area associations, working with their U.S. Senators and Representatives, that determine whether a legislative program is successful. Reliance on this type of "grass roots" legislative initiative has, and must continue to be, the essence of all of our efforts. v. Such cooperation at the local and regional level is also crucial if the private sector is to deal effectively with critical social needs at a time of diminished federal and state support. It has been projected that direct and indirect federal spending cuts for human service programs will total about $127 billion over the next four years -- or more than twelve times the amount of all foundation grantmaking. It is clear, then, that private philanthropy and corporations cannot fill this immense funding gap. �al -14- But I am also encouraged to see that the dramatic scope and depth of these Federal cutbacks, as well as President Reagan's call for increased private-sector involvement in addressing social problems, is resulting ~n a new spirit and a new level of cooperation between private, community, and corporate foundations, and between foundations and the public, governmental sector. I know of no better example than right here in the Inland Empire. At times we all have to hold back our public relations people, by the lapels, when they start to wax a bit too eloquently about the private sector, the unique role of private philanthropy, and what our foundations are achieving for society. (Of course, some might say you have to do the same thing with annual meeting speakers!) But as I have talked with many of you, and reviewed literature about the Spokane Inland Empire Foundation, it became obvious to me that your foundation truly is own printed words -- It in your n e w , small, but very visible and innovative. 1t �al -15- You are innovative, and on a national level. in the catalytic role which you provide as sponsoring organization for the Christian Aid Network which combines church resources to meet emergency needs of Spokane County residents. You are "very visible and innovative" in the types of other co-funding arrangements with area grantmakers, including the voluntary action center under the information and referral network of the United Way. You are a model for other community foundations across the country in the way you've worked to establish a United Way endowment fund as part of the Spokane Inland Empire Community Foundation. It is your type of community foundation attitude and achievement -- one more concerned with helping people and finding solutions than worrying about "turf", separation of private/public responsibilities, and who gets the public credit -which must be made the focus for philanthropy generally. �al -16- VI. For we know that the freedom and flexibility, as well as tax privilege, accorded private philanthropy ought to exact a price and a special public responsibility. Foundation grantmaking must continue to represent an important, valuable alternative avenue for human betterment. We must encourage and improve public accountability and public reporting by all charitable organizations. We must work to expand Congressional under- standing and support of philanthropy. And we must look at more than just tax laws, regulations, and definitions. As a nation, we must decide if we really want to encourage volunteerism, a movement which has given a special quality to American life. I am encouraged by the Reagan Administration's willingness to address issues of voluntary giving and service in our society. And I am encouraged by the innovative, far-sighted examples of cooperative grantmaking which are reflected In all of you and by the Spokane Inland �al -17- Empire Foundation. For there is pressing need for more of such pragmatic solutions which are truly, as Henry Clay expressed it, II for the benefi t of the people." 9/17/82 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1982-09-21_RMawby_SPE Title A name given to the resource Russell Mawby speech, Philanthropy on the Firing Lane Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 21, 1982 for the W. K. Kellogg Foundation and the Council on Foundations at the Annual Meeting of the Spokane Inland Empire Foundation. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1982-09-21 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/be0ca92df958070ab94d15e824c498f9.pdf bb9a7d1b61991823ccdcd67a16891087 PDF Text Text RGM Notes for presentation 9/19/94 at the Fund Raising School for Small Nonprofits (KYIP) (Dinner at WKKF) KYIP FUND RAISING SCHOOL SPEECH MONDAY, SEPTEMBER 19, 1994 6:30 p.m. W.K. KELLOGG FOUNDATION * Welcome to Battle Creek and the W.K. Kellogg Foundation * We are delighted that you are willing and see the value of your participation in this fund raising school program. * The W. K. Kellogg Foundation is proud to be a supporter of the Fund Raising School and the Center on Philanthropy at Indiana University/Purdue University in Indianapolis. Since we have played a role in helping establish this Center of Excellence, we felt it only appropriate that we help share their experience and expertise with some of our other grantees who we feel could benefit from it. 1 �* Keeping with Mr. Kellogg's philosophy of "helping people help themselves," we feel that this investment of providing you the opportunity to participate in the Fund Raising School could ultimately be the most important contribution we give you. * If you believe the research, over the next 20 years there will be an estimated $8 to $10 tr'illion which will be transferred 'from one generation to the next. And those organizations and institutions that have the capacity and the ability to capture some of these resources to continue their programs will be the ones who survive. * We have encouraged that the participants at these fund raising schools, be the CEO/executive director of your organization, along with a trustee. Two individuals who should see it as a major responsibility of theirs to help raise 2 �the resources necessary for you to continue your day to day operations and your programming. * But let me also say, that while money is important, we have to keep in mind that resources are limited and money isn't always the answer. * As a university trustee, I often get frustrated when I see that the School of Education does not communicate with the School of Social Work, who does not communicate with the School of Medicine. All three Schools who playa critical role when it comes ' to the needs of bringing up a healthy, productive human being in today's society. * While we have you in Battle Creek for two days teaching you the mechanics of fund raising, I hope you will also take this time to visit with other organizations from your community who are represented here and talk about ways that you might be able to collaborate to make your 3 �community a better place in which to be born and which to grow up. * Take advantage of this time away from ringing phones and clients walking through your door, to ask yourself, "Why do we exist?" and are there better more efficient ways to fulfill our mission by either working closer with or even becoming a part of another organization in your community who is doing similar programming. * This Kellogg Youth Initiatives Program, which you are a part of, is the most comprehensive programming initiative this Foundation has done in its 64-year history. While the Kellogg Foundation has made a commitment to have a presence and to be involved in your community for 20 years, we want to be assured that the quality of life for young people in your three communities is better than any place in the world, but we want that high quality of life to 4 �continue long after the Kellogg Foundation has left, and we can only do that by helping you build your capacity to assure that this type of quality programming can continue for many years to come. * Again, let me thank you for taking two days of your busy schedules to come to Battle Creek for this training, and we do hope you will find it beneficial. Russ, Somewhere in your comments you may want to mention that one of the greatest disservices any foundation can do to any organization is to give them too much money. And, that we feel that by making this investment in helping them build their capacity through this fund raising training, will ultimately be more beneficial to them than if we were to give them a grant for an additional $100,000 and just walk away. 5 �KYIP FUND RAISING SCHOOL SPEECH MONDAY, SEPTEMBER 19, 1994 6:30 p.m. W.K. KELLOGG FOUNDATION * Welcome to Battle Creek and the W.K. Kellogg Foundation * We are delighted that you are willing and see the value of your participation in this fund raising school program. * The W.K. Kellogg Foundation is proud to be a supporter of the Fund Raising School and the Center on Philanthropy at Indiana University/Purdue University in Indianapolis. Since we have played a role in helping establish this Center of Excellence, we felt it only appropriate that we help share their experience and expertise with some of our other grantees who we feel could benefit from it. * Keeping with Mr. Kellogg's philosophy of "helping people help themselves," we feel that this investment of providing you the opportunity to participate in the Fund Raising School could ultimately be the most important contribution we give you. * If you believe the research, over the next 20 years there will be an estimated $8 to $10 trillion which will be transferred from one generation to the next. And those organizations and institutions that have the capacity and the ability to capture some of these resources to continue their programs will be the ones who survive. * We have encouraged that the participants at these fund raising schools, be the CEO/executive director of your organization , along with a trustee. Two individuals who should see it as a major responsibility of theirs to help raise the resources necessary for you to continue your day to day operations and your programming. * But let me also say, that while money is important, we have to keep in mind that resources are limited and money isn't always the answer. * As a university trustee, I often get frustrated when I see that the School of Education does not communicate with the School of Social Work, who does not communicate with the School of Medicine. All three Schools who play a critical role when it comes to the needs of bringing up a healthy, productive human being in today's society. �* While we have you in Battle Creek for two days teaching you the mechanics of fund raising, I hope you will also take this time to visit with other organizations from your community who are represented here and talk about ways that you might be able to collaborate to make your community a better place in which to be born and which to grow up. * Take advantage of this time away from ringing phones and clients walking through your door, to ask yourself, "Why do we exist?" and are there better more efficient ways to fulfill our mission by either working closer with or even becoming a part of another organization in your community who is doing similar programming. * This Kellogg Youth Initiatives Program, which you are a part of, is the most comprehensive programming initiative this Foundation has done in its 54-year history. While the Kellogg Foundation has made a commitment to have a presence and to be involved in your community for 20 years, we want to be assured that the quality of life for young people in your three communities is better than any place in the world, but we want that high quality of life to continue long after the Kellogg Foundation has left, and we can only do that be helping you build your capacity to assure that this type of quality programming can continue for many years to come. * Again, let me thank you for taking two days of your busy schedules to come to Battle Creek for this training, and that we do hope you will find it beneficial. *Russ, Somewhere in your comments you may want to mention that one of the greatest disservices any foundation can do to any organizat ion is to give them too much money. And, that we feel that by making this investment in helping them build their capacity through this fund raising training, will ultimately be more beneficial to them than if we were to give them a grant for an additional $100,000 and just walk away. KYIP.SPE/JKF 2 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1994-09-19_RMawby_SPE Title A name given to the resource Russell Mawby speech, KYIP Fund Raising School Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 19, 1994 for the W. K. Kellogg Foundation at the Kellogg Youth Initiative Program (KYIP) Fund Raising School for Small Nonprofits. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1994-09-19 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/1911bcb727f0ac05ce23c195bd6fad3d.pdf 1f48179d12f5bd648b905b56dc83fa72 PDF Text Text RGM Notes for Round Table Discussion on Corporate Philanthropy at Mi we s t U.S.-Japan Conference , Grand Ra id~, M - Se Rt e rnbe r 14 , 1993 -+ J j �CORPORA TE PHILANTHROPY MIDWEST U.S. / JAPAN CONFERENCE Sponsored by Michigan & Japan Foundation September 14, 1993 Amway Grand Plaza Hotel I. HISTORY OF PHILANTHROPY IN AMERICA I think it is important that when we talk of philanthropy, that we realize we are talking about much more than the giving away of financial resources. It also refers to the giving of our time, or what we as Americans refer to as volunteerism. The individual and combined volunteer actions of thousands of unnamed citizens have had an impact on American society. These actions were of citizens who became involved, not because �-2- of coercion or profit, but because they recognized a need and were willing to take responsibility for meeting that need. Volunteering is so pervasive in America that it can be observed daily in almost every aspect of life. From people donating blood, Christmas caroling in hospitals, running Parent·Teacher Associations, serving as volunteer firemen, to helping our retired neighbor cut their grass. Volunteerism is crucial to a functioning democracy because it mobilizes enormous energy. The more citizens become involved in volunteerisrn, the closer they come to making the ideals of democracy real. Philanthropy is both an expression of patriotism in a pure sense and the means by which a democratic society remains "bv the people. II �-3- The White House Task Force on Private Sector Initiatives stated in 1982: A volunteer is a person who can see what others cannot see; who can feel what most do not feel. Often, such gifted persons do not think of themselves as volunteers, but citizens . citizens in the fullest sense; partners in civilization. II. CORPORA TE PHILANTHROPY Corporate Philanthropy is an integral part of corporate social responsibility. Corporations need to recognize philanthropy both as good business and as an obligation if they are to be considered responsible corporate citizens of the national and local �-4- communities in which they operate. These corporations should also establish programs to handle its philanthropy in business-like ways. Philanthropy in America has traditionally been a pluralistic activity involving private individuals, foundations, and corporations. Of these groups, individuals provide almost 90 percent of total contributions, while corporations and foundations provide the other 10 percent. In 1992 approximately $124.33 billion was donated to charitable organizations in the United States. Of that, $6 billion came from corporations. �-5- Although financial contributions are essential elements in business philanthropy, participation also involves a broader range of activities. For example, corporations 'frequently assist not-forprofits through loans of employees, donations, or loans of equipment and space, volunteer programs, and direct dollar investments in economic redevelopment efforts -- all of which can be accounted for as business expenses. Approximately 90 percent of companies with annual sales of $25 million or mora engage in cash giving. There is widespread belief among CEOs that it is important to behave in a socially responsible manner and that, in pursuing business objectives, they must take into account the public interest. �-6- A study conducted by the Council on Foundations shows that corporate giving is an expression of enlightened self-interest, Most corporations claim to be motivated by a desire to help the - needy in the cnmmunities in which their company has plants and by a desire to do what is ethically correct. Two out of three also emphasize the goals of improving local .,. communities in order to benefit their own employees and of protecting/improving the environment in which to work and to do business. -- About a third hope to improve their company.'s public image. �7 - Abou t aqua r te r expec t tha tthe i rco rpo ra te g iv ing e f fo r tsw i l l resu l tininc reasedrevenues /p ro f i tab i l i tyand inan enhanced ab i l i ty torec ru i tqua l i ty emp loyees . ~ keytohowmuch acompanygives. Compan ies w i th h igh ly comm i t ted CEOs a re a lso mo re l ike lyto have co rpo ra te g iv ing s ta f fs toadm in is te r the i rph i lan th rop ic p rog rams . J C / v �8 - Sou rces : Ame r ica 's Vo lun ta ry Sp i r i t ,B r ian O 'Conne l l , The Founda t ion Cen te r . G iv ing USA , APub l ica t ion o ftheAAFRC T rus t fo r i ~ ko Ipo ra teG iv ing ; The V iews o fCh ie f Execu t ive O f f ice rs o fMa jo r Ame r ican Co rpo ra t ions ,P repa red by Yanek lov ich , She l ly and Wh i te , Inc . As tudy comm iss ioned by theCounc i l on Founda t ions . �( \J lS I lS I ( J ) N IS : ) ..... n ( J ) . n ..... 0 - l } l N IS : ) 0 - ..... ..... IS : ) Comp a r i sono f1992E s t i . a t e st o1991E s t im a t e s($i nb i l l ion s ) R ev i s ed O r ig in a l 1991 1991 Useso fCon t r ibu t ion s $67 .59 $53 .92 R e l i g i o n $13 .28 Edu c a t ion $ 1 3 . 4 5 H e a l th $9 .68 $9 .68 $10 .61 Hum anS e rv i c e s $11 .11 $8 .81 $8 .81 A r t s .Cu l tu r e ,andHuman i t i e s $4 .93 $4 .93 Pub l i c /Sod e tyBene f i t $2 .54 $2 .93 Ev i room en t IW l ldU f e In t em a t ion a lA f f a i r s $2 .59 $1 .75 Und e s tgn a t ed $4 .74 $10 .25 $124 .77 $116 .82 w 1992 % Change Cu r r en t$ $56 .71 $14 .02 $10 .24 $11 .57 $9 .32 $5 .05 $3 .12 $1 .71 $12 .56 5124 .31 % Ch ang e 1992$ 5 .17% 4 .24% 5 .79% 4 .17% 5 .89% 2 .43% 6 .48% -2 .29% 1 .15% 0 . 24% 1 . 74% 0 . 18% 1 .83% -L S I% 2 .39% -6 .04% 6 . 41% 2 .33% t ' } a : 0 - I f ) m I ' ~ CD co I ' ( \J ~ ( \J ~ + No l e :To t a l sa d p e l eM l t81 ed lM l lCSiD co rponu _ p a t e r n l l I I t4 le& - u ~ ~ I f ) ~.... . CD lD ~ N ..... N ..... + C. . p a r i sOD0 (1 992E s t im a t e st o1991E 5 t iD l a t e s($inb i l i ioD s ) O r ig in a l R ev i s ed 1991 1991 So t I r c e so fCo a t r i l au t i eRS Ind iv ldu l s $103 .13 $95 .32 Beque s t s $7 .78 $7 .78 Found a t ion s $ 7 . 7 6 $7 .72 Co rpon t t i eo s 56 .10 $ 6 . 0 0 124 .77 116 .82 ~ TO ia l su dp e n : c t .c l IU1CesDco rponcCCO Inp \ I le tr oaad iD lo Sou r c e :G iv ing U SA /AAFRCT ru s tfo rPh i l an th ropy 1992 $101 .83 $ 8 . 1 5 $8 .33 $6 .00 124 .31 % Change Cu r r en t$ 6 .83% 4 .75% 7 .90% 0 .00% 6 .41% % Ch ang e 1992$ 2 .73% 0 .71% 3 .80% -3 .84% 2 .33% ( " ) ( " ) .. lS I ~ ( " ) m . ( " ) ~ 0 W ( J ) � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1993-09-14_RMawby_SPE Title A name given to the resource Russell Mawby speech, Midwest U.S.-Japan Conference Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 14, 1993 for the W. K. Kellogg Foundation at the Round Table discussion on Corporate Philanthropy at Midwest U.S.-Japan conference. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1993-09-14 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/59fba781bd4fb932b6fc2efc1ce3c163.pdf 0efaaf6b28104a2796476522a9e3c52a PDF Text Text Remarks by Dr. Russell G. Mawby, President W. K. Kellogg Foundation Battle Creek, Michigan, USA September 14, 1981 Institute for Food Chemistry and Technology University of Helsinki, Finland I am delighted to be here today for this special ceremony which recognizes the cooperative efforts of the many individuals and organizations who have assisted the University of Helsinki in developing its impressive programs in food science. I bring official greetings and good wishes from the Board of Trustees of the Foundation as well as myself, and I of course convey to you also special greetings from Dr. Gary W. King. The W. K. Kellogg Foundation very much appreciates its association of nearly two decades with the University and we have been pleased to contribute to the important work of the University and to that of other institutions In your country. We are grateful for your generous recognition of the role our Foundation has been privileged to play. �While this is not my first trip to your beautiful country, it is Ruth's first opportunity to be here more than briefly. It is always a special occasion to visit Finland and share in your strong sense of purpose and joy of living. Ruth and I have spent two delightful weeks, thanks to the generous hospitality of many Finnish friends. We were honored to have Dr. Koivistoinen visit us In Battle Creek last summer. That visit also gave me an opportunity to show Dr. Koivistoinen my own small farm at Hickory Corners, Michigan. We now have had an opportunity to visit his strawberry farm in Suonenjoki, to spend delightful days in the North, and to enjoy days with friends -- old and new -- In Helsinki. This trip has also provided me with an opportunity to visit with leaders of the various programs which have received Kellogg Foundation support in Finland including 2 �the National Research Council for Agriculture and Forestry's fellowship program; the Finnish 4-H Federation's program to train professionals and youth leaders of 4-H groups; and the Martha Organization's program to strengthen its work in home economics educ ation with particular attention to the problems of young families. As you may know, the Kellogg Foundation was founded by breakfast cereal pioneer W. K. Kellogg in 1930. He was an extremely succ essful businessman whose company has expanded worldwide, including the production and marketing of cornflakes and other products here in Finland and in other European countries. Mr. Kellogg gave his personal fortune to the Kellogg Foundation, and in the past 51 years the Foundation has made grants of nearly $600 million for projects in health, education, and agriculture on four continents. 3 �The Foundation's programming is quite broad today. However, Mr. Kellogg's first concern was with people and he often observed that, above all other concerns, agriculture is the basic, critical human enterprise. Consequently, the Foundation which bears his name has long sought to encourage agricultural sciences and technology and their application. We realize, as did Mr. Kellogg, that without attention and success in food production, processing, and distribution, many of society's achievements in health care, education, the arts, and other areas which contribute to betterment of the human condition would not be possible. People must be nourished with good food in order to survive and prosper, to live a good life -- this challenge remains the most demanding concern of our world as we move toward the threshold of the next century. The Kellogg Foundation has made grants of nearly U.S. $2.5 million in Finland since 1963, and nearly one-third of 4 �that has been for support of the University's Institute for Food Chemistry and Technology. Our original grant in 1964 was to assist the University in establishing the Institute. At that time, expanded training programs in food science and technology were judged to be a high priority need for Finland by University officials and members of your National Research Council for Agriculture and Forestry. We were pleased to extend Foundation support in 1976 to increase the Institute's programs to develop new specialties ln the curriculum, and to make possible new teaching positions in the Institute. Over that span of time, the Institute has developed a remarkable record of University, governmental, and business support to carry forward its important food science work in research and teaching. We have been impressed indeed with the character and quality of the various activities being pursued by the Institute 5 �as well as its wide range of support from the University, governmental sources, and from Finnish industry. This ceremony today is one more indication of how successful you have been in achieving, and recognizing, these important ties between public and private endeavors and purposes. My compliments to the University and the Institute for hosting the International Symposium on the role of food science and technology. I am certain that one long term r e s u l t of the symposium will be to make research and teaching programs more r elevant to the needs of the food industry and the consuming public. It is good to see that the symposium includes participants from widely varied positions of responsibility, but with common conc erns and goals. 6 �On behalf of the Kellogg Foundation, I salute you and your achievements, and thank you for the special relationship s we enjoy and cherish. 7 �August 28, 1981 (t1 /JC.-t The W. K. Kellogg Foundation of Battle Creek, Michigan its first grants i n Finland in 1963. ___ -e (USA)~ made 1 )- Working with the National Research Council for Agriculture and Forestry, the Foundation provided fellowships for graduate study. Young professionals in agriculture and forestry received awards for advanced work in their special fields at U.S. colleges and universities. This program ended in 1972. Finnish Fellows participated in the program. Thirty-one They now hold positions of leadership in Finnish universities, research institlttes, and private industry. In 1965, the Foundation assisted the University in establishing -t he Institute for Food Chemistry and Technology through a five-year grant for $261,809. The Institute has trained professionals . food industry, and has conducted internationally-recognized research in this field. In 1977, a second Foundation grant of $467,656 provided assistance forAstrengthening the curriculum of the Institute. Other W. K. Kellogg Foundation grants in Finland include: In 1968, $143,700 over five years to the University of Helsinki to establish the Center for Extension Education and Inservice Training. This Center, located in the Faculty of Agriculture and Forestry, is now part of regular University operations. 1'7S ;l.... In 1971, ~,500 to the National Research Council for Agriculture and Forestry, for additional fellowships for young professionals in the two fields. The program is still continuing. Seventy-three additional fellows have participated, for a total of 104. - In 1974, $258,000 to the Finnish 4-H Federation for training of professionals and young leaders of 4-H Clubs in Finland. This �2 a s s i s t a n c eh a ss t r e n g t h e n e dt h e4 -H o r g a n i z a t i o nt h r o u g h o u tt h e c o u n t r y . -I n1979 ,af o u r y e a rg r a n to f $542 ,589 t ot h eM a r th a O r g a n i z a t i o n .o fF i n l a n dt os t r e n g t h e ni t sp rog r am o fhom ee conom i c se d u c a t i o n , w i t hp a r t i c u l a ra t t e n t i o nt ot h ep rob l em so f young f am i l i e s . ~ r ~, S in c e 1963 ,t h eW . K . K e l l o g gF o u n d a t i o nh a sg r a n t e da t o t a lo f ~ ~ 5,~ i nF i n l a n d , $729 ,465 o ft h a tt ot h eI n s t i t u t ef o rFood Ch em i s t ry and T e chno logy o ft h eU n i v e r s i t yo fH e l s i n k i . I n1930 ,b r e a k f a s tc e r e a lp i o n e e rW . K . K e l logg c o n t r i b u t e d $45 m i l l i o ni np e r s o n a lw e a l t h t oe s t a b l i s ht h eK e l logg F o u n d a t i o n . U s ing in com ef romt h a tb e q u e s t ,t h eF o u n d a t i o nh a sm ad e g r a n t so v e rt h ep a s t f i v ed e c ad e so f mo r e t h a n$530 m i l l i o ni nt h ea r e a so fh e a l t h ,e d u c a t i o n , and a g r i c u l t u r e . Th eF o u n d a t i o ni st o d a yamong ? ~ p r i v a t e p h i l a n t h r o p i co r g a n i z a t i o n si nt h en a t i o n , and s u p p o r t sp rog r am s on f o u rc o n t i n e n t s ,i n c l u d i n gt h eUn i t ed S t a t e s and C an ad a , Eu rop e ,L a t i n Am e r i c a , and A u s t r a l i a . � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1981-09-14_RMawby_SPE Title A name given to the resource Russell Mawby speech at the Institute for Food Chemistry and Technology Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 14, 1981 for the W. K. Kellogg Foundation at the Institute for Food Chemistry at the University of Helsinki to discuss their programs in food science. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Agriculture Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1981-09-14 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/590c48924551a15f8ad0ca08cf375bb8.pdf e01c78d1958fd846f793677569e366a3 PDF Text Text (~~ e./HI::/~ . ~~ '1- /$-7 g;' dJ ,;. L . -k b - Do ) ) J. ..... '-, 1-( F l .J ... -t l.."... -t. 1 .J (' ~ ('I e r ..; ... ( t I' t" ( / CJ- ,t"" , c . c. .,. . �~ tS .. ~ ...H~ . U / ' tcUC ! r - ) ( •'0 ; r i I . - ~ < . . w < ! . . . .J7 '< ~ . ~ - _- H~ �T h e book i sa r em a rk ab l ec h r o n i c l eo fp i o n e e rd ay si nCo lo r ado . I I ti sa l s oa t e s t im o n yt ot h er aw cou r ag e and w i l l p ow e ro fe a r l y Am e r i ca nr a n c h e r sand f a rm e r s . O n eo fM i ch en e r ' s c e n t r a lth em e si st h a tw e Ame r i c a n sa r ea uniq u eLy " p r i v a t e "p eop l e-wh e th er l i v i n gon t h et r e e l e s sp l a i n so f I e a s t e r nC o lo rado o ri ncong e s t ed c o n f i n e so fou rl a r g ec i t i e s . We a r e c r i t i c a lo f gove rnmen ta li n t r u s i o ni n t oou rl i v e s . We i n s i s ton t h e r i g h tt omak e ou r own mi s t a ke s and t of o r g eou r owns u c c e s s e s . Th es e q u a l i t i e s , Mi c h e n e rc o n t e n d s ,w e r en u r t u r e do u to fn e c e s s i t yby ou r f o r c b e [ l r e L ' s . A s ev id en c ed i nC en tenn i a l , ou rd emoc r a t i cs o c i e t y ' ss t r e ng th s hav ei n c l u d e da hea l thys k e p t i c i smtow a r d st r a d i t i o n a li n s t i t u t i o n s a n dt r a d i t i o na lw ay s o f do ing t h i n g s . Th rough som e t im e sp a i n f u l p ro ces s e s ,w e Ame ric an sh av eb e en wi l l i n gt oex am in e ou rs o c i e t y , a dm it e r r o r so fd eedand c o n s c i e n c e , and t h e nmov e \ ~ w i t hv i t a l i t y and c ommitm e n tt o wa r da n ewo r d e ro ft h i n g s . ~~~ ~ W Bm ay be on th et h r e s h o l do fa n o t h e r su chex am in a t ion tod ay . In r e c e n tmo n t h s ,t h en ew sm ed i a h a sp rov id ed a lm o s tf r a n t i ccov e r ag eo f t h e" t ax paye r s ' re v o l t " . P r o p o s it i on 13 i nCa l i f o r n i al a s tJ u n e ( �sp awn ed s im i l a rmov em en t s a c r o s st h en a t i o n . Am a j o r i t yo f ou rs t a t e s / h av ec o n s i d e r e dr e f e r endum so rl e g i s l a t i o na im ed a tc o n t r o l l i n ggov e rn m en t sp end ingand t a x e s . Th e r ei sl i t t l edoub tt h a tc i t i z e ncon c e rnw i t hr i s i n gp r i c e so f food ,h o u s i n g , and o t h e rn e c e s s i t i e s ,a sw e l la sr i s i n gt a x e s ,i s r e f l e c t e di nt h ev o t i n gb o o t h . Bu t on es e n s e sa l s ot h a tm any c i t i z e n s a r ed i s e n c h a n t e dw i t h as e em ingl a c ko fr e s p o n s i v e n e s sand p e r fo rm an c e on t h ep a r to f ou rp u b l i ci n s t i t u t i o n s . "Youa r e n ' tl i s t e n i n gt ou s ! "i son e me s s a g ewh i ch c i t i z e n sa r e e x p r e s s i n ga tt h epo lls. "S choo l s shou lds t r e s sb a s i c comp e t e r -c i e si n r e a d i n g ,w r i t i n g and a r i t r u n e t i c . Gov e rnm en t shou ldl im i ti t si n t r u s i o n ) i np r i v a t ea f f a i r so ft h ep o p u l a c e . Th e r e shou ldb e an end t owa s t e f u l sp end ing. . . " Hh i l emo s t o ft h i sf u r o ri sd i r e c t e da tt h e publ i c s e c t o r ,pci v a t ein stitu tion sa r en o t exem p tf roms im i l a rc r i t i c i sm s . tsu chc o n c e r n s ,i t woul db ee a s yb u t unw i s et oe spous ea Am ids t t i t u d eo rt o" p l a yp rophe t "by t r y i n gt op r e d i c tAme r i c a ' s doom sday a ~ f u t u r e . I n1956 , o f unp a ra l l e l e de conom i c and i n d u s t r i a l g row th , one o f ou rn a t i o n ' sf u t u r i s t sp r e d i c t e dt h a tby 1976 ma i l wou ld be de l i v e r e dby gui d ed m i s s i l e s , t h ewo r ld wou ld be ge n e r a l l y we l lfe d ,a c cur a t ey e a r a h e a dw e at h e rre p o r t swou ld b et h ep a t t e r n, and wo r ldw ide e conom i c abund an c e wou ld mak el e i s u r et im em an ' smo s t pr e s s i n gp r ob l em . I fsu chp r e d i ct i o n ss e em t i n g ed w i t hi r o n yt o d a y ,i t c anb e a s s e r t e dw i t h ad eg r e eo fc e r t a i n t yt h a tt h ero adAm e r i c a t r a v e l si n t h ede cad es ahe ad w i l l b e sh ap edby b o t ht h ep u b l i c and p r . i v a t es e c t o r s and how w e l lt h e ywo r kt o ge t h e rt of i n drea lis tics o l u t i o c st o ~ e / �problems. Dwindling natural resources, an uncertain economy, growing demands for human services, and unsettled international relationships only compound the need to work together. It is reassuring to note that such public-private cooperation is a part of our heritage. Virtually every function currently performed by various governmental units was once a ne\v idea or experiment of the private sector -- roads, public works, health services, education, welfare, and care of the a cied. The pages of our history are full of the exploits and a ch i ev ement s of militiamen during the AIT.erican Revolution, volunteer firemen, a nd groups of citizens who joined together to build schools, hospitc:ls ,and parks, or to provide for the sick and / poor of their communiti e s. Almost 135 years ago, Frenchman Al e x i s de Tocqueville observed that Americans are quid, to form neighborhood groups and cormni ttee s to address co mmunity needs a nd p r ob Lerns wi thout relying on any official agency or bureauc racy. Commenting on the contemporary scene, soc ial scientist Margaret Mead recently noted: We live in a s oc i e t y t hat alway s has dep ended on volunteers o f different kinds -- some who can give money , others who give t ime, and a great many who f r e e l y give their special s kil l s ... alm ost anyth ing that really matters to us, anything t ha t embodies our deepest commitment to the way human life should be live d an d cared for, depends on some fo rm -- more often many forms -- of volunteerism. Our nation's publi c and private sectors, including hospitals, museums, soci al agencies, youth s e r v i ng organizations, schools, universities, and churches, dep end heavily on some $35 billion ea ch year in voluntary co ntributions . At least an equal amount is repres euted in t he va lue of voluntary s e rvic es don ated a nnua lly by mi l l i oDs of Ame ri cans . Yet, individual giving of time, talent, and money has be en de clin i ng in I �r e c e n ty e a r s . " A cco rd ingt oan ind ep end en ts t u d yby Th e Comm i s s ion on P r i v a t eP h i l a n t h r o p y and P u b l i cN e ed s , ap r i v a t e l yfund edc i t i z e n s ' p a n e l , su chg i v i n ga sap r o p o r t i o no fp e r s o n a l in com ed ropp ed by n e a r l y1 5p e r c e n tb e tw e en 1960 and 1972 . ) I tcou ldb es a i dt h a tt h i sd e c r e a s ei nsu chv o l u n t a r ys u p p o r ti s b u ta n o t h e ri n d i c a t i o no fAm e r i c a ' sd i s i l l u s i o nm e n tw i t hi t si n s t i t u t i o n s . Y e t , i t i sp r e c i s e l ysu chs u p p o r twh i ch h a s en su r ed a s t r o n gp r i v a t e s e c t o ra l t e r n a t i v e . I th a sb e en c i t i z e n s 'a c t i v ep a r t i c i p a t i o ni nt h e p r o b l em s o l v i n gp r o c e s sd e s c r i b e d by d eT o c q u e v i l l et h a th a sl e dt o m a n yo f ou rn a t i o n ' s mo s t c r e a t i v ea ch i ev em en t s . A C . ~. ~ \ e p l a c e , i t i ss o b e r i n gt or e a l i z et h a tt h eo n l yp r i v a t ef o u n d a t i o n s n d e r c u r r e n tt a xl aw , i nt om o r r ow ' sw o r l da l r e a d ye x i s tt o d a y . U J t h eb i r t hr a t eo fn ew f o u n d a t i o n si sv i r t u a l l yz e r o ,t h ef ew e x c e p t i o n sb e i n ge s s e n t i a l l yt h o s ef o rw h i c h i r r e v o c a b l ei n s t r u m e n t s h a db e e nd r aw np r e -TRA 6 9 . I �~ ~~ ~ ~.~ - ~ ~ F u r t h e r ,t h en um b e r so ff o u n d a t i o n si nt h ef u t u r e-u n l e s st h e r ea r ec h a n g e si nt h el aw-w i l lb es l ow l yd e c l i n i n g , f o r c o u p l e dw i t ht h ez e r ob i r t hr a t e ,i sa na c c e l e r a t e dd e a t h J r a t e . T h o s ep a s s i n gf r omt h es c e n et h u sf a ra r eg e n e r a l l yt h e sm a l l e rp r i v a t ef am i l yf o u n d a t i o n swho s e v i t a lc o n t r i b u t i o n sa r e t ol o c a lp h i l a n t h r o p y . T r a d i t i o n a l l y compo s ed o fe q u i t yh o l d i n g s i nt h ef am i l yb u s i n e s s ,t h e ya r eb e s e tb yt h ec om p l e x i t i e so f c o n f o rm a n c ew i t h t h e1969 l awa n da r ep a r t i c u l a r l yb u r d e n e d by tR epa ~ r an athed i v e s t i t u r ep r o v i s i o n s o fS e c t i o n4 9 4 3 . F o rm any , t h eo n l yr e a s o n a b l ec o u r s es e em s e i t h e rd i s s o l u t i o no r ,o f som ewh a tl e s sn e g a t i v ec o n s e q u e n c et o p h i l a n t h r o p y ,t r a n s f e r e n c eo fa s s e t st oa commun i ty f o u n d a t i o n . N o n e t h e l e s s , t h e yp a s sf r omt h ep r i v at ef o u n d a t i o ns c e n e . F i n a l l y ,p r i v a t ef o u n d a t i o n si nt om o r r ow ' sw o r l dw i l lh a v e al e s s e n i n gs i g n i f i c a n c ei nt h et o t a ls o c i a ls c e n e . W h i l e o u r n a t i o n a le conomy w i l lc o n t i n u et og r ow ,t h er e s o u r c e so f p r i v a t ef o u n d a t i o n sw i l ln o tk e e pp a c ei ne i t h e rr e l a t i v eo r a b s o l u t et e rm s . On e a s p e c to ft h i sp r o b l em r e l a t e st oi n f l a t i o n . Th ee d u c a t i o n a la n ds e r v i c ee n t e r p r i s e sw h i c ha r et h eu s u a lc o n - I c e r n so fp h i l a n t h r o p yt e n dt oe x p e r i e n c ei n f l a t i o n a r yp r e s s u r e b e y o n dt h a tf o rt h ee conomy i ng e n e r a l . M o s t d am a g i n gt ot h e c a p a c i t yo fp r i v a t ef o u n d a t i o n st os e r v et om o r r ow ' se x p a n d i n g n e e d s ,h ow e v e r ,a r et h o s ep r o v i s i o n so f TRA -69 w h i c ha r ed r y i n g up t h ef l owo fn ew c a p i t a li n t oe x i s t i n gf o u n d a t i o n sa n dw h i c h m a n d a t e t h ec o n t i n u i n ge r o s i o no ft h e i rp r o d u c t i v ea s s e t s . I �M any o ft o d a y ' sf o u n d a t i o n s-t h eW . K . K e l l o g gF o u n d a t i o n b e i n gb u to n ee x am p l e-s t a r t e da s ~ f o u n d a t i o n sw h i c h l a t e rr e c e i v e ds u b s t a n t i a la s s e t sf r omt h ed o n o ra n d / o rh i s 1 e s t a t e . M any o ft h esm a l l e rf o u n d a t i o n so ft o d a yw e r ec r e a t e d w i t h t h es am ei n t e n t . H ow e v e r , b e c a u s eo ft h es e v e r a ld i s - \ i n c e n t i v e so f TRA -69 , n os i g n i f i c a n tam o u n to fn ew c a p i t a lw i l l now f l owi n t ot h e s ef o u n d a t i o n s . Th eF o u n d a t i o nC e n te rt e l l su st h a tt h e r ea r e a p p r o x im a t e l y2 5 , 0 0 0p r i v a t eg r a n t -m a k i n gf o u n d a t i o n si nt h i s c o u n t r y . Wh en t h ew o r d " f o u n d a t i o n "i sm e n t i o n e d ,e s r -- - - - - - kn ew le d ge a : bi-o " ' ; -n-" " , " " f ' 'exd, t h e ~ : to 'ho se r e a c t i o ni st ot h i n k b i g : F o r d ,R o c k e f e l l e r ,J o h n s o n ,M e l l o n , K r e s g e , L i l l y , K e l l o g g . ~ T h e s ea r eh i g h l yv i s i b l ef o u n d a t i o n sw i t h l a r g ea s s e t s ,s u b s t a n t i a la n n u a le x p e n d i t u r e s ,p r o f e s s i o n a l s t a f f ,a n da n a t i o n a lo ri n t e r n a t i o n a ls p h e r eo fa c t i v i t y . B u tw e n e e dt or em i n do u r s e l v e st h a t90% o ft h ef o u n d a t i o n s-o rsom e 2 2 , 5 0 0-h a v ea s s e t so fl e s st h a n$1 m i l l i o n . A t t h eo t h e r e n do ft h es i z es p e c t r um ,o n l y 38 h a v ea s s e t so f $100 m i l l i o n o rm o r e . W h i l e t h eb i gf ewm ay b et h em o s t n ew sw o r t h yi n e~ o ft h eme d i a ,t h e" q u i e tm a j o r i t y " o ft h ep r i v a t ef o u n d a t i o n w o r l d a r e e ~ p u r s u i n gt h e i rr e s p e c t i v ea n dd i v e r s e a c t i v i t i e si nt h e i ri n d i v i d u a lc omm u n i t i e s . And t ot h ep e o p l e o ft h o s ec omm u n i t i e s-l a r g ea n d sm a l l ,i ne v e r ys t a t e-a n d t ot h ep r i v a t ev o l u n t a r yo r g a n i z a t i o n sa n di n s t i t u t i o n sw h i c h s e r v el o c a ln ee d s ,t h em o d e s t c o n t r i b u t i o n so ft h e s eq u i e t f o u n d a t i o n sa r ev i t a li n d e e d . _ I �'vv - ~ l • . . ;V -C - ...... A f I " ~ ( J ~ e , ~ �c . 4 - ; ; c . . .- t£-s :- J1 ~ r - ( ' 1-<- • / ~ 'I - I ...9 .A . j L J ) ( rI- Commun i t yfou nd a t i on sa re ch a r a c t e r i z ed by m u l t i p l e so u r c e so f fun d i ng , by boa r d so ft r u s t ee s se l ec te dt ore p r e sen tt h ep u b l i ci n t e r es ti nt h e i r commun i t i es ,and by aloc a lo r reg i ona lf o c u si nt h e i rg i v i n g . T h u s , th e J -t e, n a t i o n 's ~ co rnmun ity fo und a ti o n sa re quas i p u b l i ci nro l e and st r u c t u r e ;and t h e i rop e r a t i on sa r ereg u l a r l yrepo r tedtothec i t i z en r yo fthe ir co mm u n i t i e s . 1 , . '1 ~e I n c l u d i ng t h en ew l y . em e r g ing T r ave r se A r ea ' ' commun i ty found a t i on si nMi c h i gan,1 ;,, I I " ' \ .0< . -0 , oi l a r enow I �4 THE COMMUN ITY FOUNDAT ION SHOULD BE A MAX IM IZER OF CHAR IT LE RESOURCES • . By p o o l i n gc h a r i t a b l efund sf o rt h o u g h t f u land s y s t em a t i ca l l o c a t i o n t op r e s e n t and f u t u r ecommun i ty n e ed s Th roughou tt h ec o u n t r y ,e x p e r i e n c eh a sd em o n s t r a t e d t h a ton c e a commun i ty ~ ha se s t a b l i s h e di t s i n t e g r i t yandh a sd em o n s t r a t e di t sa b i l i t yt om an ag e fund sf o rch a r i t a b l ep u r p o s e s , un r es tr i . c t . edg if t s, t r u s t sandb e q u e s t sw i l ls t a r tt 8com ei t sw ay . M any dono r sg i v ewho l ly u n r e s t r i c t ed g if ts wb i ch p r o v i d e im p o r t a n tf l e x i b i l i t yi na l l ow i n gt h ef o u n d a t i o n t r u s t e e st or e s p o n de f f e c t i v e l yt och ang ing commun i ty n e ed s. • •Bym an ag ing i n d i v i d u a lt r u s t s ,b e q u e s t s andg i f t se n t r u s t e dby don e e s f o rd e s i g n a t e de d u c a t i o n a land c h a r i t a b l ep u r p o s e s Som e dono r sd e s i g n a t et h a tt h ecommun i ty f o u n d a t i o n i st oadm in is t e rt h e i rg if ts i nb e h a l fo fs p e c i f i c o r g a n i z a t i o n s . O t h e r sl im i tg i f t st ob r o a d e ra r e a s o fcon c e rn su cha se d u c a t i o n ,h e a l t h ,s o c i a ls e r v i c e s , and c i v i co rc u l t u r a la f f a i r s . Fo rm any ~ f o u n d a t i o n st h eg r e a tb u l ko ft h e i ra s s e t sa r eo f t h i sn a t u r eand t h e s et y p e so fg if ts a r et ob e en cou r ag ed . Th eG r and R ap id sF o u n d a t i o nl i s t e d 22 su chm emo r i a l fund si na r e c e n tAnnua lR epo r t andt h eC l e v e l a n dF o u n d a t io n ' s1 9 7 4Annua lR epo r t l i s t e d246 mem o r i a l fund sw i t ho v e r $1 m i l l ion b e i n g add ed i nt h a ty e a r. . . By u r g i n gb r o a dcommun i ty s u p p o r tf o rd e s i g n a t e dcommun i ty and s o c i a l b e t t e rm e n tp r o j e c t s Th ep r o p e r l ypU b l i c i zede n d o r sem en t and ex amp l eo ft h e commun i ty f o u n d a t i on i nsup p o r t i n Gs p e c i f i e dcommw l i ty p r o j e c t sc anwo rk m irac le si n" f l u s h i n go u t "b r o a d commun i ty f i n a n c i a ls u p p o r t . (I I �5 THE COMMUN ITY I ~I SHOULD BE A CATALYST . . By e n c o u r a g i n gthe d i r ec t i on o fp o t e n tia l tru s ts, beQu e s t sand g if ts tol o c a l so c i et a lneed s Th e commun i ty found a t i o npr o v idesan i d e a lm e ch an i sm fo r t h i spu rpo s e. l , l any p e o p l e in e a cho f you r comm u n it i es ar e undo u b te d l ya s s e s s i n gyour ow n ~~ founda t i on a st h e ap p r o p r i a t e bene fic ia r yo ft h e ir ~ tr u s t so r o t h e rbeQu e s t s . I tb ehoov e s you t op r ov e yo u r ~ . . By g e n e r a t i n ga d d i t i o n a lf u n d i n gt h r o u g hm at c h i n go r" s e ed -m on ey "g r a n t s P r o p e r l ys t ra tegiz ed ,p rope r l yt im ed , and pr o p e r ly p u b l i c i ze d ,t h i sis on eo ft h emo st e ffec tiv eo ff u n d r a i s i n gte c h n i Q ue s . Anot eo f ~ how ev e r . To u s ei t ha b i t u al l yis t onu l l i f yi t se f fe c t i v en e ss. . . By p r o v id ingfr o n t e nd mon i e st ol a unch co mmu n i t y unde r tak ingsr e Qu ir i n g o t h e r inv e s tm en t ,a n d / o rcommun it y ,a n d / o r gov e rnm en ta lsup po r t Amongthe m a ny c la s s ice ~ e is a $400 ,000 g ran t by t h eK a l am a zoo F ound ation wh i c hbec am e fr o n t e nd mon i e s fo r $14 m i l l i o no fi n v e s tm e n t si na n ew down town c i v i cc en te rwh ichw i l l im p a c tt h ee conom i c so ft h a t commun i ty f o rg en er a ti o n s to com e. •. By i n i t i a t i n g comm un it yb et t e rmen tp r o j e ct ssp ec ifi c a ll ytoc u l t i v a te h a b it so fb r o ad ci t iz en suppor t I ti sno td i f f i cu l tt oim a g ine howa ch ildr e n' szoo ,o r ar i v e rbea u t i f i cat i on pLoj e c t ,o r afun dt opr o v id e ~ i n gs c ho l a r s h i p s fo rn eedy ch ild r e ncou ld be pr o per l y p u b l i c i z ed t oa t t ra c tw ide pub lic supp o r t. In L in co l n , Ne b r a sk a , a "Mem o r y Bo ok ; !d i s p l a y e d on aro ta tirg bas i s i nst o r e sth roughou tt i l eco i amun itylis ts on an annu a l i st h en am e so fev er yl o c a lc i ti z en hav i n gd o n a t e d bas tosu chp r o j e c t s spo n sor e d by t h eL inc o l nFounQa t i o n . �6 THE COMMUN ITY FO UNDATIONS HOULD BE AN INNOVATOR . . By a cti n ga sa " fund i ng bel l w et h e r "t oa tt r ac to t he r m o n ie s to n ew l y pe r c e i v edre s o l v e so f em e r g ing co@n un i t yp r o b l em s.. . Th e "G oodhou sekee p i n g lo fAp p rova l " S ea O rga n i z at i o n sn ew ly c r e a tedt ocope w i t hs o c i e ta lp rob l em sf r e q u e n t l yexp eri e n ce d i f f i cu l t ie si ns e c u r i ng r a t i ng r e v e n u es . T hey a r . eo f t e ni n i t ia lly"s u s p e c t11 ope by va r i ou ss e gm en ts o ft h eCO TI@u n i t y . Pr o v i s i o no f po rti o n so f st a r t -upand i n i t i a l op er a ti n gmoni e s by t h eco mmun i ty foundat i on a ssu r e so t h e rp o ten t i a l g ra n t o rs o fa m e chani smfo r pu b l i c sc ru t i n yo ft h e ag enc y 's o p e r a t iona land f i s c a la c co un tab ility. . . By s e r v i n ga s" s t a k e h o l d e r "tom anage fund s dono rs hes i t a te t og r a n t ou t r i g h tt oem e rg i n g an du n tri e dso ci a ls e rv i c es agenc i e sno ty e th a v in g dem o n s t r a t eda c co unt a b ilit y D ono r sm a y b e re luc tan tt oc o n t r i but et oan agen cy who se se r v i c e sthey va lu eb u tw ho se c a pac ityto m an age mon ies t h ey d o u b t . Su ch i n d i v i dua l sa rew i l l i ngto g i v et h e i rfund st ot h e ~ fou n d a t i o nt obe u s e d fo ri t sdes i red p u r po s e . S im il a r l y , som e donor s cons id e ri ts a f e rto. g ivet h e .~ fo u n d a ti o nti t l e t oth e re a lpr o p e r t yw h ichisto b eu s ed by an op er a ting agency fo ri t sp r o gr am; fo rt h efo u n d a ti o nislike l yt o endu r eev en t h o u ghth e op era ting ag ency l a t e rf a ll son h a r dt im es. . . By encou rag ing exi s t ingag en ci e st ob r o a d en o rr e s t r u c t u r e pr o g ram sto cope w i t h un rn e tn e ed s No th i n gi ss t a ti cand so c ia ls e r v i ces ag en ci e s con t e n t w i t h th eir r o l ein so c i e tyu l t im a t e l ys u f fe rfromt h e ir owna tr o p hy. K eep ing l o ca l se r v i ces a t t u n ed t ochang ing n e ed s and en cou r ag i ng t h e i rown i n no v a t i o nandre s t r u c t u r i n g i sa need ed cO@ l lun i t ys e rv ic e. o ras an a lt e rn a tiv e--- . . B y ac t ive ly e ng ag ingin exp erim e n ta l re s o l v e so funm e tn e ed s Op e ra t i ng i t sown e ~ e e p rog r am ss h o u l db eo n l ya s al a s tre s o r t . T he r eis e ~ bot hi na d iver s ityo f agenc i e s and i nt h ec o u r a g eo fl o c a lag enci e st obr o ad en andr e s t r u c tur et h e i r so c i a ls e rv i c e spr o g r am sa s so c i e t a l p rob l em s got h r ough t h e ir con s t a n t evo lu ti o n a lp r o c e ss. �7 THE COMMUN ITYFOUNDAT ION SHOU LD BE A PLANNER AND COORD INATOR . . By a s s i s t i n gs t u d i e s a. f o rt h e def i n i t i o no f comnun i ty goa l s b . f o rt h e de f i n itionand res o l v eo f th e communi t y' sso cie ta l and e cono m ic p rob lem s c . f o ren cou r a gi n go rd e r l ycommun it yg row th and dev e l opm e n t( o r r e d ev e lopm en t) i ty foun dat i on i sn o t me r e l ya g r a n t ma k i ng o r g a n iza t io n , Th e commun b u t can be a p o s it i v ef a c to ri ne ff o r t st odeve l op and a ccom p l i sh commun it ygo als andt os o l ve co r wnun i ty p rob l em s. Su che f fo r t sw e re ef ir s ta c t iv it i e su n d e r taken by comm unit yfo unda t i o n s; e.g ., amongth t h es t udy o fth ec r im in a lj u st i c es y s t em ~ C l eve l a nd unde r t akenby t h eC l ev el a n dFound a tionin1920 . S im il a re f f o r t sh av e been und er t ak en by ot h e rcommun it yfound a tio n s and t o d a ya r e an im p o r t a n tandunique fun c t i o no ft h i st y p eo fo r g a n iza t i o n . Th e fa c tt h a tt h ec omm un ity foun da t i on i sp e r ce i v ed as an i n d ep end en t, u n b i a s e d th ird p a r t y by m a ny i nt h e commun i t ym ak e s t h is ro lep a r t i c u l a r l yappr o p ria te. O f t e nt h e commun i ty foundat i onis p er c e i v e da s th e onl ym echan ismfo r sp onso r i n g su c hs t u d ie s ,p a r t i c ul a r lyon mor eco n tr o v er s i a l is s u es. . . By i d e n t i f y i n gc ri t ica l commun ity nee d s fr o mamon t ;t h em a ze o fs h i ft i n g s o c i e t a lp ro b lem s I fyo u r commun i t yfound a t i o n can e s t a b li s hi t s e l f a s an imp a r t i a l re f e r ee ,w ha t b ett e ro r g an i z a t i o ni nth e co mmun i ty t ohe l pp e r f ormt h i se s s e n t i a lf u nct i on . . . By condu ct i n go rs u p p o r t i n g co r i l ln un ity fo rum sf o rt h e sh a r i n go fi n fo r m a t i o n ,expe r i en ce s and id e a s . • By he l p i n gloca led u c a ti o n a l,h e a lth a nd so c i a ls e r v i c eag en ci e se v a lu a t e t h e ir o v e r a ll e ff e c t i v enes sand r e d i r e c tt h e i ren e r g i e si n ee~ comm un ity n e ed s An i n i t i a lg r a n to f $25 ,000 b yt h eL i n c o l n Founda t i o nh elpedt h e i r co mmun i tyu n d e rtake a com p r 2 h e n s i v ee ffor tt od e a l ~ w i th d rug p r o b l em s on a co u n ty-w i d2 b a s is. Th eg r a n t pr o d u c e da coor d i n a t i n g me c h a n i s mt h a tpr o v i d e s gui d a n c et oa ll ~ a t ; enci e sa c t i v e in t h ef i e l d . T he gr a n t al s opl a y eda c a t a l y t i c: c o l ei ns p awni n ga s e ri e s o fp rogr am s: s ta t i s t i ca l resea rch t oh e l pi d e n t i f yand qua n t i f ythe e x t en to f the pr o b l em ; ar e f e rra ls e rv ice, t h eco stso fwhi c ha re m e t by fede ra l and loca l fund s; a d ru E; a n a l y s is cen te r ;andn ew app roach e s i nd r u g ed uc a tionf o ryou th and a d u l t s. �~ 8 THE COMMUN ITY ~ I . . Ac om p e t i t o rt oy o u rl o c a lU n i t e dW ay , o ro t h e rl o c a ls o c i a ls e r v i c e a g e n c i e s ,n e i t h e rp r o g r amm a t i c a l l yn o ri nt h eq u e s tf o rf u n d s R a t h e rt h a nc om p e t i t o r s ,t h ecommun i ty f o u n d a t i o na n d t h eU n i t e dW a y m u s t f u n c t i o na sp a r t n e r s . L o c a lp r o g r am s o rs e r v i c e ss t a r t e dw i t ht h ea i do ft h e ~ ~ f o u n d a t i o nc o u l de a s i l yb e com ef u t u r eU n i t e d \T a yo b l i g a t i o n s . S u c hp o t e n t i a l sm u s t b ed i ? c u s s e do p e n l yw i t ha l lc o n c e r n e da tt h eo u t s e t. . . I nt h es a l v a g eb u s i n e s s a . I t sr o l ei sn o tt h a to fs h o r i n gup i n e f f e c t i v ea n di n e f f i c i e n t s o c i a ls e r v i c e s . H ow e v e r , i t c a np l a y af i rmr o l ei nt h ec o n s t r u c t i v ec o u n s e l i n go fa g e n c i e sa n d the c o mmun i ty i nt h ee v a l u a t i n g o rs e r v i c e sa n dt h ea p p r o p r i a t ea p p l i c a t i o no fs e r v i c e st ocommun i ty p r o b l em s . b . N e i t h e ri st h ecommun i ty f o u n d a t i o nr e s p o n s i b l ef o rs a l v a g i n gt h e m y r i a do fl o c a la g e n c i e si n t e rm i t t e n t l yb s c k r u p t e db yt h ey o y o f u n d i n gp o l i c i e so fo u rf e d e r a lg o v e r nm e n t . Commun i ty f o u n d a t i o n sh a v ef a c e dup t of e d e r a lc u t b a c k s i na v a r i e t yo fi n t e r e s t i n g ,i f n o ta lw a y sa d e q u a t e ,w a y s . Th ey h a v eg i v e n em e r g e n c yo ri n t e r imf u n d ss e l e c t i v e l y t ol o c a lg r a n t e e s . Th ey h a v ea n n o u n c e dt h a ti ng e n e r a l t h e ya r en o tr e s p o n s i b l ef o r ~ c o n c e i v e d ,s p o n s o r e d a n d f i n a l l ya b a n d o n e db yt h ef e d e r a lg o v e r nm e n t . Th ey h a v e ,i nsom ei n s t a n c e s ,u r g e dl o c a lo f f i c i a l st od i v e r t s h a r e dr e v e n u ef u n d sf r omm u n i c i p a l s e r v i c e si n t o t h r e a t e n e dhum an s e r v i c e s . Th ey h a v et r i e dt os e ta ne x am p l eb ys u p p o r t i n gc e r t a i nk e yp r o g r am s ,t a c i t l yi n v i t i n g o t h e ra g e n c i e st odo t h es am e . And t h e yh a v ei n s i s t e n t l y c a l l e df o rr a t i o n a ld e c i s i o n -m a k i n g among t h em any com p e t i n ga g e n c i e s ,o f t e nb r i n g i n gt h emt o g e t h e ri n c o n t i n u i n g ~ e. �I 4 - . .~ r. , T ; ' , 1 " " 'w--R.. ~ t c ~ . ~ ...: ~ ~ ~ -~ k fY ~ ~ ~~ ~ 1 ~ ~~ ~ ~I ~ • , r . . - �I n ~e on t h i si s s u e ,P r e s i d e n tW i l l iam G . Bow en o fP r i n c e t o n U n i v e r s i t yh a s no t ed t h a tw ef a ce t h ep o s s i b l ed em i s eo ft h eun iqu e ly Am e r i ca nn o t i o nt h a tc o n s i d e r a b l ei n i t i a t i v ef o rt h ep romo t ion o f 500d c au s e s shou ldb el e f ti np r i v at eh and s ,t h a tt h e r ei sv a l u ei np l u r a l i s t i c e f f o r t st om e e t commun i ty n e ed s , and t h a tgov e rnm en t shou ldn o tb e g iv en a w onopo ly i na t t e n d i n gt osu chm a t t e r s a st h ec a r eo ft h es i c k I a n dt h eadv an c eme n to fl e a r n i n g . O u rn a t i o nc an r e t u r nt oa mo r eb a l a n c e d app ro a chb e tw e en n e c e s s a r y I gov e r i l l i l en t a ls e r v i c e sand t h ef l e x i b i l i t yand r e s p o n s i v e n e s st h a t ch a r a c : te r i z e sp r i v a t es e c t o ri n i t i a t i v e si na d d r e s s i n ghum an p rob l em s . Whe t h e rsu ch~ ba l a n c e is a c h i ev ed w ill dep end i npa r ton n u b l i c p o l i c yd e c i s i o n s ,i n c l u d i n gt a xl e g i s l a t i o n ,wh i ch e i t h e rp romo t eo r d i s cour2g ep r i v a t ei n i t i a t i v ef o rt h ep u b l i c good . R.li"iu li:teVUUn da tion sa r e ap a r to f and a s p e c i a ls o u r c eo fs u p p o r t \ a n d en cou r ag em en tf o rsu chp r i v a t ei n i t i a t i v e . Th ey p r o v i d e! ' r i s k ca p i t a l "f o rn ewp r i v a t es e c t o rapp ro a ch e st os o l v i n gs o c i a lp rob l em s . A n d wh i l e found a t i o n sa c coun t ed f o ron ly 5 . 7p e r c e n t ,o r$ 2b i l l i o n , o fv o l u n t a r yg i v i n gi n1977 ,t h e i rimp a c ti ss u b s t a n t i a l . \ �The private secto:c gov erllinent. 1S our only "option" to over-dependence on An importanL les son, learned many times over Bince Cente nnial's farm ers anG Lan che r s carved out a society on th e banks of the Pl atte River 150 years ago, is that people can d0 much by working togetb er to improve their own individual and collective condition. With such a commitment, our unique American experiment in democracy will continue to hold me aning and promise for the generations which follow us. �w. K. KELLOGG FOUNDATION 400 North Avenue, Battle Creek, Michigan 49076 Telephone (616) 965-1221 NEWS JAMES M. RICHMOND, Direct or of Communic ations FOR IMMEDIATE RELEASE September 18, 1978 MAWBY URGES COMMUNITY FOUNDATIONS TO EXAMINE PURPOSE, ROLE The role of private philanthropy in American society continues to erode, and foundations must guard against complacency resulting from their generally favorable public image during the past decade, Dr. Russell G. Mawby, president of the W. K. Kellogg Foundation, said September 13th. Speaking to some 65 Michigan community foundation representatives at a seminar in Kalamazoo, Dr. Mawby noted that "the only private foundations in tomorrow's world already exist today. Under current tax law, the birth rate of new foundations is virtually zero." Unless there are modifications in the 1969 Tax Reform Act, which established complex accountin g, reporting, and pay-out requirements for all foundations, more and more existing foundations will cease to function, Mawby claimed. Those suffering the most will be the smaller private family foundations whose primary contributions are to local philanthropy. "Beset by the complexities of conformance with the 1969 Tax Reporm Act the only course for many of these family foundations will either be dissolution or, of somewhat less negative consequence to (more) �Add One philanthropy, transference of assets to a community foundation. Nonetheless, they may well pass from the private foundation scene," Mawby said. There are signs, however, that American citizens are resisting increased taxation and regulation by government, and are returning to the belief in a balance between necessary governmental services, and the flexibility and responsiveness that characterizes private sector initiatives to solving human problems. tion of this change He asserted that one indica- is the recent referendums and legislation in many states aimed at controlling government spending and taxes. Citing the different roles of the business, governmental, and private sectors, Mawby observed that America's hospitals, museums, social agencies, youth service organizations, schools, universities, and churches depend heavily on some $35 billion each year in voluntary contributions. At least an equal amount is represented in the value of voluntary services donated annually by millions of Americans. This private sector "is our only 'option' to over-dependence on government," he added. "Foundations are a part of and a special source of support and encouragement for such private initiative," he said. "They provide 'risk capital' for new private sector approaches to solving social problems. And while foundations accounted for only 5.7 percent, or $2 billion, of voluntary giving in 1977, their impact is substantial." There are approximately 25,000 private grant-making foundations in the United States. Yet, only a handful of this number, such as the (more) �Add Two Ford, Rockefeller, Mott, and Kellogg foundations, have large assets and professional staffs. Some 22,500 foundations have assets of less than $1 million. "While the big few may be the most newsworthy in view of the media, the 'quiet majority' of the private foundation world are conscientiously pursuing their respective and diverse activities in their individual communities. And to the people of those communities large and small, in every state -- and to the private voluntary organizations and institutions which serve local needs, the contributions of these quiet foundations are vital indeed," he asserted. Mawby's audience of community foundation representatives were attending a two-day workshop sponsored by the Council of Michigan Foundations and the Council on Foundations. He urged participants to continue working through such associations to improve the administration of their own foundations; to better define their philanthropic missions in society; and to improve their foundations' visibility and public image. As contrasted with private and corporate foundations, community foundations are characterized by multiple sources of funding, by boards of trustees selected to represent the public interest in their communities, and by a local or regional focus in their giving. Because of their unique status in private philanthropy, the 27 community foundations in Michigan, and 219 nationwide, face both (more) �Add T h r e e s p e c i a lo p p o r t u n i t i e sa n dp r o b l em s . M awby c a u t i o n e dt h ec omm u n i t y f o u n d a t i o nr e p r e s e n t a t i v e st h a tt h e i ro r g a n i z a t i o n ss h o u l dn o t b e com e" c om p e t i t o r st ol o c a lU n i t e dW ay o ro t h e rs o c i a ls e r v i c e a g e n c i e s . No r s h o u l dt h e yb ei nt h e' s o c i a ls a l v a g eb u s i n e s s . ' " "T h er o l eo ft h ecommun i ty f o u n d a t i o ni sn o tt h a to fs h o r i n gup i n e f f e c t i v eand i n e f f i c i e n ts o c i a ls e r v i c e s . N e i t h e r i st h ec omm u n i t y f o u n d a t i o nr e s p o n s i b l ef o rs a l v a g i n gt h em y r i a d o fl o c a la g e n c i e s i n t e rm i t t e n t l yb a n k r u p t e d by t h ey o y of u n d i n gp o l i c i e so fo u r f e d e r a lg o v e r nm e n t , "M awby s a i d . R a t h e r , c omm u n i t yf o u n d a t i o n sm u s t b e" ac a t a l y s tf o ri d e n t i f y i n g c r i t i c a lc omm u n i t yn e e d sf r omamong t h em a z e o fs h i f t i n gs o c i e t a l p r o b l em s . " Co r rnnun i ty f o . u n d a t i o n s ,h ec o n t i n u e d ,s h o u l ds e r v ea sa r e s o u r c e f o rp o o l i n gc h a r i t a b l ef u n d sf o rt h o u g h t f u la n ds y s t em a t i ca l l o c a t i o n t op r e s e n ta n df u t u r ec omm u n i t yn e e d s . By p r o v i d i n gf r o n t e n dm o n i e s t ol a u n c hcommun i ty u n d e r t a k i n g s ,s u c hf o u n d a t i o n sc a nh e l pl a u n c h c omm u n i t y -w i d ee f f o r t st h a tm ay l a t e rr e q u i r eo t h e rp r i v a t e ,c omm u n i t y o rg o v e r nm e n t a ls u p p o r t . "Among t h em any e x am p l e so ft h i sr o l ew a s a$ 400 ,000 g r a n tb yt h eK a l am a z o o F o u n d a t i o nw h i c h b e c am ef r o n t e n dm o n i e s f o r $14 m i l l i o n o fi n v e s tm e n t si na n ew down town c i v i cc e n t e r , "h e o b s e r v e d . "T h a ta c t i o nw i l lh a v ep o s i t i v e im p a c ton t h ee c o n om i c v i t a l i t yo ft h eK a l am a zoo c omm u n i t yf o rg e n e r a t i o n st oc om e . " R e t u r n i n gt ot h et h em eo fp l u r a l i sm i nAm e r i c a ns o c i e t y ,~ p r e d i c t e dt h a tt h en a t i o n ' sf u t u r ew i l lb es h a p e db yb o t ht h ep u b l i c (m o r e ) �· -. .. Add Four and private sectors and how well they work together to find realistic solutions to society's problems. Dwindling natural resources, an uncertain economy, growing demands for human services, and unsettled international relationships only compound this need. He added that whether such a balance between the public and private sectors is achieved will depend in part on public policy decisions, including tax legislation, which either promote or discourage private initiative for the public good. "An important lesson, learned many times over in our nation's history, is that people can do much by working together to improve their own individual and collective condition. stone of our society's private sector. That is the corner- With a commitment to that principle, our unique American experiment in democracy will continue to hold meaning and promise for the generations which follow us," he concluded. /I /I II �Counc i lo fVM ic l t ig4niOFound4tiollS 18NORTH FIFT H STREET GRAND HAVEN ,M ICH IGAN49417 PHONE 61 6 /842·7080 S e p t em b e r9 ,1 9 7 8 M em ot o :E l i z a b e t hH . B i n d a H a r r yR . D a v i d s o n J o s e p hJ .D u n n i g a n T ed L . J o h n s o n How a rd K a l l ew a r d W i l l i am J .L aw r e n c e ,J r . R u s s e l lG . M aw b y/ ' Eug en eC . S t r u c k h o f f F r e d e r i cA . S y t sm a Edw a rd G . Thom son W i l l i am S .W h i t e s '": .1 °7 F rom : D o r o t h yA . J o h n s o n R e : C ommun i ty F o u n d a t i o nS em i n a r - Wo rk ing Ag end a .W ea r em o s t a p p r e c i a t i v eo fy o u rw i l l i n g n e s st op a r t i c i p a t ei nt h eCommun i ty ~ S em in ar s p o n s o r e db yt h eC o u n c i lo fM i c h i g a n F o u n d a t i o n si nc o o p e r a t i o nw i t ht h eK a l a m az o oF o u n d a t i o na n dt h eC o u n c i l on F o u n d a t i o n sS e p t em b e r1 3 ,1 4 , 1978 a tt h eK a l am a zoo H ilton I n n . I amp l e a s e dt os a yt h a to v e r2 0f o u n d a t i o n sw i l lb er e p r e s e n t e db y mo r e t h a n6 5i n d i v i d u a l s . I na d d i t i o n15 m emb e r s o ft h eCMF B o a r do fT r u s t e e sw i l lb ei n a t t e n d a n c e . Th ef o l l ow i n gw o r k i n ga g e n d ad e t a i l sy o u rr e s p o n s i b i l i t i e s ,w h i c ha r eo v e r s c o r e di n y e l l ow . I fy o uh a v ea n yq u e s t i o n sp l e a s ec o n t a c tm e a tt h eCMF o f f i c eo rI w i l lb e a tt h eK a l am a zoo H i l t o nb y2p .m . on S e p t em b e r1 3 . T IME S e p t em b e r 13 6 :30 psm , 7 : 3 0 7 : 4 0 8 : 3 0 9 : 3 0 S e p t em b e r1 4 8 : 0 0a .m . 8 : 2 5 PART IC IPANT /S H o s t e db yK a l am a zoo F o u n d a t i o n TASK RECEPT ION LOCAT ION (A l lroom son l ow e rl e v e l . ) Room F W i l l i am S .W h i t e · D INNER Room E W e l c om e I n t r o d u c e E l i z a b e t hH . B i n d a E l i z a b e t hH . B i n d a I n v o c a t i o n D i n n e rs e r v e d W i l l i am S .W h i t e I n t r o d u c em emb e r s o fH e ad T a b l e n o ts p e a k i n g * W i l l i am J .L aw r e n c e ,J r .W e l c om e I n t r o d u c eR u s s e l lG . M aw b y Ru sse ll G . M awby K e y n o t eA d d r e s s"T o d a y ' sF o u n d a t i o n si nT om o r r ow ' s Wo r ld " W i l l i am S .W h i t e Announ c em en t s C l o s eS e s s i o n How a rd K a l l ew a r d 8 : 3 0 F r e d r i cA . S y t sm a 8 : 5 5 How a rd K a l l ew a r d BREAKFAST Room D M o d e r a t e I n t r o d u c eF r e d r i cA . S y t sm a A d d r e s s - "Commun i tyF o u n d a t i o n L e g a lU p d a t e " C l o s es e s s i o n �T IME PART IC IPANT /S TASK LOCAT ION S e p t em b e r1 4 (C o n t . ) 9 : 0 5 a .m . 1 0 : 4 5 1 1 : 0 0 How a rd K a l l ew a r d E u g e n eC . S t r u c k h o f f Edw a rd G . Thom son How a rd K a l l ew a r d 1 ' :: 4 0 H ow aLd K a l l ew a r d Eug ene C .S t r u c k h o f f Edw a rd G . Thom son How a rd K a l l ew a r d 1 2 : 4 5 D o r o t h yA . J o h n s o n 1 : 4 5 M o d e r a t e Room E I n t r o d u c eE u g e n eC . S t r u c k h o f f a n dEdw a rd G . Thom son ~ AND GROWTH C l o s es e s s i o na n dC a l lf o r B r e a k C a l lS em i n a rb a c kt oo r d e r GRANTMAK ING C l o s es e s s i o n LUNCH R oom D CONCURRENT SESS IONS L e a d e r :J o s e p hJ .D u n n i g a n TRUSTEESH IP R e s o u r c e : Edw a rd G . Thom son R oom E L e a d e r : H a r r yR . D a v i d s o n ADM IN ISTRAT IVE PRACT ICES R e s o u r c e : E u g e n eC . S t r u c k h o f f P a r l o r (Numb e r t ob ea n n o u n c e d ) 3 : 2 0 L e a d e r s C o n c u r r e n tS e s si o nc l o s e 3 : 3 0 D o r o t h yA . J o h n s o n T ed L . J o h n s o n GENERAL SESS ION R oom E Commun i ty F o u n d a t i o nP r o g r amm i n g f o rS e v e n t hA n n u a l CMF C o n f e r e n c e R em a rk s 4 : 0 0 E u g e n eC . S t r u c k h o f f A d j o u r n *H e ad Ta ble, S e p t em b e r1 3 ,1 9 7 8 R usse ll G . M awby R u th M awby W i l l i am J .L aw r e n c e ,J r . W i l l i am S .W h i t e Euge n e C .S t r u c k h o f f El i z a b e t hH . B i n d a Edw a rd G . Thom son Dor o t h yA . J o h n s o n I d e n t i f i c a t i o nI n f o rm a t i o n : U n l e s so t h e rw i s en o t e di n t r o d u c t i o n sa r eb yt r a d i t i o na t CMF m e et i n g sk e p tt oa m i n i n um . E liz a b e t hH . B i n d a , T r u s t e e ,G r e a t e rB a t t l eC r e e kF o u n d a t i o n H arry R . D a v i d s o n , E x e c u t i v eD i r e c t o r , G r e a t e rB a t t l eC r e e kF o u n d a t i o n J o s e p hJ .D u n n i g a n , V i c e P r e s i d e n t , K a l am a zoo F o u n d a t i o n T ed L . J o h n s o n ,P r e s i d e n t ,F r em o n tA r e aF o u n d a t i o n H owa r dK a l l ew a r d , E x e c u t i v eS e c r e t a r y ,K a l am a z o oF o u n d a t i o n W il l i am J .L aw r e n c e ,J r . ,P r e s i d e n t ,K a l am a z o o'F o u n d a t i o n R u s s el l G . M awby , P r e s i d e n t ,W .K . K e l l o g gF o u n d a t i o n E u g e n eC . S t r u c k h o f f ,V i c e P r e s i d e n t , C o u n c i lo nF o u n d a t i o n s F r e d e r i cA . S y t sm a ,E s q . ,A s s i s t . S e c . , T r e a s . , Mu sk egon C o u n t y Commun i ty F o u n d a t i o n Edw a rd G . Thom son , E x e c u t i v eA s s o c i a t e -L aw , C o u n c i lo nF o u n d a t i o n s W i l li amS .W h i t e , P r e s i d e n t ,C h a r l e sS t ew a r tM o t t F o u n d a t i o n ; CMF C h a i rm a n � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1978-09-13_RMawby_SPE Title A name given to the resource Russell Mawby speech, Today's Foundation in Tomorrow's World Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 13, 1978 for the W. K. Kellogg Foundation on the Council of Michigan Foundations. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1978-09-13 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/74a1a908c9ff5c789746256df0729a6a.pdf b3973a895571d4fe4c90a9b9a3cd16e4 PDF Text Text HEALTH CARE SY STEM OUT OF SYNC COMMUNITY PARTNERSHIPS: CREATIVE RESPONSES TO A CRITICAL NEED REMARKS BY DR. RUSSELL G. MAWBY, PH.D. CHAIRMAN AND CHIEF EXECUTIVE OFFICER W.K. KELLOGG FOUNDATION COMMUNITY PARTNERSHIPS IN HEALTH PROFESSIONS EDUCATION POLICY CONFERENCE . NATIONAL PRESS CLUB WASHINGTON, D.C. SEPTEMBER 11, 1991 I IT IS A PLEASURE TO BE WITH YOU TO HELP LAUNCH THE COMMUNIT Y PARTNERSHIPS INITIATIVE AND TO SHARE A FEW OBSERVATIONS ABOUT REFORM IN HEALTH PROFESSIONS EDUCATION FROM A LAYMAN'S PERSPECTIVE. THANKS TO EACH OF YOU FOR BEING HERE FOR THIS VERY OUR SPECIAL OCCASION. MOST OF YOU HERE ARE PARTNERS IN THIS EFFORT WHICH AIMS TO INCREASE THE NUMBER OF PRIMARY HEALTH PRACTITIONERS -- DOCTORS, DENTISTS, AND OTHER HEALTH PROFESSIONALS -- AND TO DEVELOP NURSES, �MULTIDISCIPLINARY COMPREHENS I VE MODELS PR I MARY FOR IMPROVING HEALTH CARE. THE I PUBLIC'S APPLAUD CONTRIBUTION DURING THE TWO YEAR PLANNING PHASE. SMALL ORDER. ACCESS YOU AND TO YOUR THIS HAS BEEN NO EACH OF YOU KNOWS ONLY TOO WELL THAT THE SLOW PROCESS OF INSTITUTIONAL CHANGE CAN PROTECT US ALL FROM HASTY DECISIONS OR IMPULSIVE ACTIONS, BUT IT CAN JUST AS EASILY SMOTHER THE FLAME OF INNOVATION. YOU HAVE ALREADY SHOWN COURAGE, ENERGY, AND KNOW-HOW TO AVOID THAT BEING THE CASE. No ONE KNOWS BETTER THAN DO YOU, THAT MORE OF SUCH COURAGE AND COMMITMENT WILL BE NEEDED AS YOU MOVE AHEAD. YOu HAVE CREATED SOMETHING THE FOUNDATION BELIEVES IS GOING TO MAKE A DIFFERENCE: THE COMMUNITY PARTNERSHIPS -- EACH ONE DIFFERENT BECAUSE CIRCUMSTANCES WASHINGTON YOU FACE EMPHASIZING OUR ARE DIFFERENT. WE INTENTIONS TO WORK ARE ALL TOGETHER. HERE IN USUALLY PHYS IClANS TALK WI TH PHYS IClANS, NURSES WI TH NURSES, PUBL IC HEALTH SPECIALISTS WITH SOCIOLOGISTS AND POLITICAL POLITICIANS AND POLICYMAKERS WITH THEMSELVES. 2 SCIENTISTS, AND BUT ALL DIMENSIONS OF �THE HEALTH PROFESSIONS AND COMMUNITY LEADERSHIP ARE REPRESENTED IN THIS MEETING OUR PARTNERS INSTITUTIOI~AL ARE REPRESENTED: ME DI CI NE, NURSING, ADMIN ISTRAT ION, PUB LIC HE ALTH, THE ALL I ED HEALTH FIELDS. SCHOOL JUDGES, AND OUR COMMUNITY PRINCIPALS, MAYORS, PARTNERS ARE HIGH SCHOOL GOVERNORS AND PEOPLE, ALL OF YOU. HERE AS WELL -- MIDDLE TEACHERS, MEMBERS REMARKABLE! OF WONDERFUL! SMALL BUSINESS CONGRESS -- OWNERS, CONCERNED TOGETHER YOU WI LL BE THE VANGUARD IN MOVING FORWARD, IN TANGIBLE AND GRATIFYING WAYS, THE CONCEPT AND WISDOM OF THE COMMUNITY-BASED ACADEMIC HEALTH CENTERS TO REDIRECT HEALTH PROFESSIONS EDUCATION. IN THIS INITIATIVE, CARING HEALTH PROFESSIONS TEACHERS OF ALL SORTS ARE JOINING WITH COMMUNITIES. THE COMMON DOCTORS, CARING LAY PEOPLE FROM ALL WALKS OF LIFE IN YOu ARE BOUND TOGETHER BY COMMITMENT, BY TRUST, AND BY PURPOSE OF NURSES, BETTER PHARMACISTS, EDUCATING HEALTH DENTISTS, SERVE THE NEEDS OF PEOPLE. 3 PROFESSIONALS --- AND ALL THE REST --- TO �You REPRESENT RURAL COMMUNITIES IN TENNESSEE AS WELL AS COMMUNITIES IN THE HEART OF BOSTON AND ATLANTA. YOU'RE FROM WEST TEXAS, HAWAII, AND WEST VIRGINIA, AND, OF COURSE, FROM HILLMAN AND HOUGHTON LAKE IN MY HOME STATE OF MICHIGAN -- A FOUR-HOUR DRIVE FROM LANSING MICHIGAN'S STATE CAPITAL AND THE CLOSEST MAJOR CITY. AS COMMUNITY LEADERS, YOU COME NOT ONLY FROM RURAL, UNDERSERVED AREAS, BUT FROM INNER CITIES FACING MAJOR HEALTH CRISES. PROFESSIONALS, DENTISTS, YOU ARE PHARMACISTS, DEANS, TEACHERS, PHYSICIANS, RESEARCHERS, SOCIAL WORKERS, SPECIALISTS, AND OTHERS IN ALLIED HEALTH FIELDS. INSTITUTIONS AND SMALLER ONES, SOME AS HEALTH PUBLIC NURSES, HEALTH YOu REPRESENT BIG LONG-ESTABLISHED AND OTHERS RELATIVELY NEW. TOGETHER -- IN PARTNERSHIP, COMMUNITIES AND EDUCATORS -- YOU 'LL MAKE A DIFFERENCE. 4 �II AS ALREADY INDICATED, MY BACKGROUND AND MY GRADUATE EDUCATION ARE IN AGR I CULTURE. LAYMAN" COME TO YOU AS A LAYMAN , I WHOSE ROLE AS CHIEF EXECUTIVE HOPEFULLY AN "II'JFORMED OFFICER OF A FOUNDATION OBLIGATES ME TO BE AWARE OF ISSUES IN THE FIELD. CURRENTLY THE FOUNDATION'S HEALTH PROGRAMMING FOCUSES ON COMPREHENS I VE, HOL IST IC EFFORTS TO MEET THE HEALTH CARE AND SOC IAL SERVI CE NEEDS OF COMUN ITY PEOPLE. WE SEE COMMUN ITY-BASED HEALTH SERVICES AS A CRITICAL FIRST STEP I N REACHING THAT GOAL, AND THE FOUNDATION IS PROVIDING RESOURCES TO ENHANCE THE DELIVERY OF PRIMARY HEALTH CARE. ANOTHER STRATEGY INVOLVES CHANGE IN HEALTH PROFESSIONS EDUCATION ITSELF. MUST BE INVOLVED WE BELIEVE THAT OUR HIGHER EDUCATION INSTITUTIONS IN INNOVATIVE SOLUTIONS TO OUR HEALTH CARE PROBLEMS, AND WE BELIEVE THAT SUCH INVOLVEMENT WILL BEST BE MADE IN PARTNERSHIPS WITH COMMUNITIES. 5 �WITH NO PROFESSIONAL EXPERIENCE IN THE HEALTH FIELD, I STILL RECALL VIVIDLY A SERIES OF uRUDE AWAKENINGS u AS I FIRST BECAME INVOLVED IN THE FOUNDATION'S PROGRAMMING IN HEALTH. I WAS DISMAYED, SHOCKED, DISAPPOINTED BY MUCH OF WHAT I LEARNED OF THE INNER WORKINGS, BOTH I N HEALTH PROFESS IONS EDUCAT ION AND PRACT ICE . WH I LE THERE IS MUCH TO BE ADMIRED AI'JD PRAISED, CERTAII'J STARK REALITIES TARNISHED AND ERODED THE PINNACLE I N MY MIND UPON WH ICH I HAD PLACED THE HEALTH PROFESSIONS. I'VE TRIED TO LEARN WISELY AND TO CAREFULLY PLACE THE VARIOUS COMPONENTS IN PROPER PERSPECTIVE AND BALANCE. IN SO DOING, I HAVE HAD TO LEARN THE LEXICON OF THE HOSPITAL HALLWAYS AND THE DIFFERENCES BETWEEN RADIOLOGY AND · RHEUMATOLOGY; TO RECOGNIZE A uTHIRD PARTY PAYOR u WHEN I SEE ONE; TO UNDERSTAND THAT uFOUR-HANDED DENTISTRY u DOESN'T REFER TO A CLUMSY PRACTITIONER OR A CARNIVAL FREAK; AND TO APPRECIATE A CAREER LADDER IN POTENT IAL OF NURSE-MANAGED HEALTH CARE FAC I LI TIES. NURSING AND THE I SEE SOME OF YOU SMILING FOR MANY OF YOU ARE LEARNING NOW JUST AS I HAVE LEARNED. 6 �ACTUALLY I MUST CONFESS THAT I BRING SOME BAGGAGE TO THIS MEETING IN OUR NATION'S CAPITAL. I GREW UP ON A FARM IN WEST CENTRAL MICHIGAN, NOT REALLY "RURAL" BECAUSE THE HOMEPLACE IS NOW PART OF A SUBURB OF GRAND RAPIDS, BUT A FARM NONETHELESS AND IN A FAMILY WHICH ENJOYED FOR YEARS THE SPLENDID SERVICES OF A COUNTRY DOCTOR, DR. VYN. JAY D. HIS WIFE WAS HIS NURSE/RECEPTIONIST; LATER HIS DAUGHTER SERVED IN THAT ROLE ALSO. THEY WORKED TOGETHER IN HARMONY -- WE NOW CALL THAT JOINT PRACTICE -- SUPPORTIVE OF EACH OTHER, THE PATIENT, THE FAMILY. I AM NOT A NOSTALGIA BUFF, YEARNING FOR THE GOOD OLD DAYS ~ -- A RETURN TO THE OUTHOUSE, TUBERCULOSIS, AND BLOOD LETTING -- BUT THERE WERE SOME THINGS IN THAT ERA WHICH SHOULD STILL SERVE US WELL TODAY. BUT PERHAPS MY BEST QUALIFICATION FOR BEING HERE IS NOT THAT OF A FOUNDATION EXECUTIVE, BUT SIMPLY A LAYMAN -- A SON, HUSBAND, PARENT, CONCERNED CITIZEN. I HAVE BEEN BLESSED WITH GOOD HEALTH AND SO MY DIRECT EXPERIENCES WITH THE HEALTH CARE SYSTEM HAVE BEEN MINIMAL. 7 �BUT IHAVE HAD MORE THAN ENOUGH OPPORTUN ITY TO BE DEEPLY INVOLVED EMOT IONALLY AND IN EVERY OTHER -IN MY RESPONS IB IL IT IES AND ~ A RELAT IONSH IPS W ITH BROTHERS AND S ISTERS , PARENTS , FR IENDS . I HAVE SPENT MORE HOURS THAN I CARE TO REMEMBER AT A HOSP ITAL BEDS IDE , LEAN ING ON THE WALL ENDLESSLY IN A WA IT ING OF A HOSP ITAL CORR IDOR , S ITT ING ROOM . I HAVE SOUGHT INFORMAT ION AND ASS ISTANCE IN EVERY CONCE IVABLE WAY -ASK ING , BEGG ING , CA JOL ING , THREATEN ING -TO GET A T IDB IT OF INFORMAT ION , A GL IMPSE OF THE TRUTH , A GLI MMER OF UNDERSTANDI NG . TR IUMPHS AND TRAGED IES , I HAVE EXPERI ENCED I TALL - COMPASS lON , ARROGANCE , SELFLESSNESS , I NSENSIT I VE CALLOUSNESS , BOTH THE BRI LLI ANCE AND THE PETTI NESS OF THE CAR ING PROFESS IONS YOU REPRESENT . THAT OF A CONCERNED sO THE PERSPECT IVE IBR ING IS IND IV IDUAL , A GRATEFUL BENEF IC IARY , A CONSTRUCT IVE CR IT IC , AN EAGER PART IC IPANT IN THE UNEND ING PROCESS OF MAK ING THE SUPERB HEALTH SYSTEM AND S ITUAT ION WE HAVE TODAY EVEN MORE RESPONS IVE , EFFECT IVE , SAT ISFY ING -AND AVA ILABLE TO ALL . 8 �W. K. KELLOGG, THE MAN WHO STARTED OUR FOUNDATION, SAID IT WELL, "EDUCATION OFFERS THE GREATEST OPPORTUNITY FOR REALLY IMPROVING ONE GENERATION OVER ANOTHER." THOSE OF YOU WHO ARE EDUCATORS ARE VITAL PARTICIPAI\JTS IN THE SELECTION AND MOLDING OF PHYSICIANS, NURSES, PHARMAC ISTS, DENT I STS, OF THE THE CHARACTER, THE FUTURE. ULTIMATELY, PERSONALITY, OTHER HEALTH PROFESS IONALS YOU INFLUENCE THE SHAPE, THE VALUES, HEALTH CARE SYSTEM. AND THE MORALITY OF THAT WHICH WE CALL OUR THOSE OF YOU WHO ARE LAY PERSONS, AS I AM, WILL NOW SHARE IN THIS HUMBLING RESPONSIBILITY. FOR THOSE OF YOU IN THE AUDIENCE NEW TO THE COMMUNITY PARTNERSHIPS INITIATIVE, YOU MAY ASK WHY AND HOW THE KELLOGG FOUNDATION DEVELOPED THIS INITIATIVE. THIS EFFORT DID NOT START WHEN WE ANNOUNCED OUR GRANT OF 47.5 MILLION DOLLARS LAST JUNE. IT BEGAN 5 YEARS AGO WHEN WE ASKED OURSELVES, HOW CAN A FOUNDATION LIKE OURS --HELP TO IMPROVE OUR HEALTH CARE SYSTEM? THE QUESTION, AS A LOGICAL FIRST STEP, WE THEN PURSUED "IF WE COULD DESIGN 9 IT, WHAT KIND OF HEALTH CARE �ARRANGEMENT WOULD WE LIKE FOR OUR FAMILIES AND OUR NEIGHBORHOODS?N THIS IS NOT ASKING OF LEADERS AN IDLE MYSELF, IN THE OR IMPULSIVE MEMBERS OF HEALTH OUR FOUNDATION PROFESSIONS F I NALLY CONCLUDED THAT IDEALLY, MY FAMILY QUESTION; FOR A IT IS ONE PROGRAM NUMBER OF SPEAK I NG FOR MYSE LF , AFFILIATED WITH A SMALL TEAM OF I'VE STAFF, AND OF YEARS. I BEEN I'VE WOULD HAVE PROFESSIONALS -- PERHAPS SOME COMBINATION OF PRIMARY CARE PHYSICIANS AND NURSE PRACTITIONERS, ONE OR MORE DENTISTS, PERSONNEL TH I S IN GROUP NURSING, WOULD AND HOSPITALS WITH A RECEPTIONIST/BOOKKEEPER, SOCIAL HAVE WORK, AND APPROPR I ATE REFERRAL THE ALLIED PR I VI LEGES ARRANGEMENTS OTHER SUPPORT HEALTH WITH WITH FIELDS. COMMUN I TY SPECIALISTS. PHILOSOPHICALLY THE GROUP WOULD BE COMMITTED TO A PROGRAM OF HEALTH PROMOTION AND DISEASE TREATMENT OF ILLNESS. PREVENTION OR NOw LET'S MODEL. 10 HEALTH TAKE A MAINTENANCE, MOMENT TO AS WELL AS CONSIDER THIS �FIRST, THE CORE OF THE GROUP WOULD BE A PRIMARY CARE TEAM CONCERNED WITH THE INDIVIDUAL AND WITH THE FAMILY. WHEN ONE MEMBER OF THE PRIMARY CARE TEAM WAS AWAY, THE PATIENT WOULD BE COVERED BY OTHER MEMBERS OF THE TEAM. WHEN WARRANTED, THESE PRACTIONERS WOULD INVOLVE APPROPRIATE SPECIALISTS FOR CONSULTATION AND/OR TREATMENT. PHYSICIANS WOULD WORK IN HARMONY WITH NURSE PRACTIONERS. VERY OFTEN MY TIME OF MINOR COMPLAINTS DO NOT BOARD-CERTIFIED SPECIALIST. REQUIRE THE ATTENTION OR A I AM QUITE CONTENT TO BE TREATED BY A COMPETENT NURSE PRACTITIONER, WITH CONFIDENCE THAT IF SHE IDENTIFIES A PROBLEM THAT REQUIRES PHYSICIAN COLLEAGUE. INEXCUSABLE, THAT PROVIDED FEW HEALTH SO CARE. MOD I FICAT ION. THE IT FURTHER -EXPERTISE, SEEMS TO ME COMPETENCE OF THE OPPORTUNITIES THE PUBLIC, I SHE WILL INVOLVE DEPLORABLE, NURSING IN FACT PROFESSION TO CONTRIBUTE MAXIMALLY AM CONVINCED, WOULD TO WELCOME A IS HUMAN SUCH THE PROBLEM LIES NOT WI TH THE CONSUMERS, BUT I N THE PROFESSIONS AND THEIR WORKING RELATIONSHIPS, OR LACK THEREOF. 11 �WITHIN THE TEAM, PRIMARY CARE PRACTITIONERS WOULD CONTRIBUTE THEIR APPROPRIATE SPECIALTIES TO THE GROUP ENTERPRISE, AS WOULD THE OTHER HEALTH PROFESSIONALS. UNDERSTAND WHY AND THE DENTISTRY IS DENTISTS? PRACTICED AS IN A LAYMAN, ISOLATION -- I DON'T PERHAPS SPLENDID ISOLATION -- BUT NONETHELESS ISOLATION FROM THE MAINSTREAM OF THE HEALTH CARE SYSTEM. THE PROBLEMS OF MY TEETH AND MY MOUTH ARE NOT ISOLATED FROM THE REST OF ME, AND I BELIEVE, CAN HAVE AN IMPACT THROUGHOUT THE BODY. ADDRESS THE IDIOSYNCRASY THUS, THE FAILURE OF THE PROFESSION TO IN THE PRESENT PATTERN OF PRACTICE IS DIFFICULT TO FATHOM. AND THE EMPHASIS ON HEALTH PROMOTION AND DISEASE PREVENTION? YOu IN THE HEALTH PROFESSIONS HAVE DESIGNED A SYSTEM WHICH COMPENSATES YOU ONLY FOR THE TREATMENT OF MY ILLNESS OR INJURY. I CAN ENGAGE SPECIALISTS TO DESIGN AND IMPLEMENT A PREVENTIVE MAINTENANCE PROGRAM FOR MY AIR CONDITIONER AT HOME, MACHINE AT MY OFFICE. OR THE ELEVATOR OR DUPLICATING OR -- CLOSER TO OUR TOPIC TODAY -- I CAN 12 �CONTRACT WITH MY VETERINARIAN HORSES. SUCH IN A FOR A HERD HEALTH CONTRACTUAL ARRANGEMENT, PROGRAM I FOR MY ALWAYS HAVE RESPONSIBILITIES WHICH I MUST FULFILL IF THAT CONTRACT IS TO REMAIN VALID. GROUP IN SIMILAR FASHION, I WOULD LIKE TO COMPENSATE A HEALTH CARE FOR THE PARTICIPATION RESPONSIBILITIES, DESIGN AND AND CONTINUED FULFILLMENT MONITORING, OF MY WITH MY OBLIGATIONS FULL AND OF A MAINTENANCE CONTRACT FOR MY MOST PRECIOUS POSSESSION -- MY HEALTH AND THAT OF MY FAMILY. III AT THE FOUNDATION, WE BEGAN TO ASK OURSELVES AND OUTSIDE EXPERTS: "WHY HAVE THE HEALTH PROFESSIONS BEEN SO UNIMAGINATIVE, SO UNCREATIVE, SO UNRESPONSIVE IN THIS AREA?" GROWING OUT OF THESE DELIBERATIONS, COMMUNITY-BASED HEALTH SERVICES, 13 OUR PROGRAMMING FOCUS BECAME PROJECTS LINKING PEOPLE IN NEED �W ITH PROFESS IONAL EXPERT ISE , AND FROM WH ICH GRASSROOTS LESSONS M IGHT HELP SHAPE D IRECT IONS FOR THE SYSTEM . CLEARLY , LONG -TERM IMPROVEMENT DEPENDS , IN PART , ON RED IRECT ION OF THE WAY WE EDUCATE HEALTH PROFESS IONALS . so WE ESTABLISHED -IN BROAD GU IDEL INES - OUR COMMUN ITY PARTNERSH IPS W ITH HPE IN IT IAT IVE . A LETTER OF INV ITAT ION WENT OUT AND AN INFORMAT IONAL SESS ION WAS HELD IN CH ICAGO IN 1989 . WE SHARED W ITH THE AUD IENCE OUR CONCERNS ABOUT HEALTH CARE IN AMER ICA AND THE ROLE OF HEALTH EDUCATORS . NEARLY 7 0 0 PEOPLE ATTENDED THAT MEET ING ; MOST HEALTH PROFESS IONS SCHOOLS IN THE NAT ION WERE S N~ WE RECE IVED 1 10 PROPOSALS . FROM THAT POOL OF IDEAS ,1 5F INAL ISTS WERE SELECTED . FOR 1 8 MONTHS , EDUCATORS AND COMMUN ITY LEADERS INVOLVED IN THESE 1 5 LOCAT IONS WORKED TOGETHER TO EXPLORE AND FASH ION COMMUN ITY PARTNERSH IP PLANS . MANY OF YOU IN TH IS ROOM , GAVE UP NEARLY 5 WEEKS OF YOUR T IME TO ATTEND MEET INGS AWAY FROM HOME . RECE IVED AND S ITE V IS ITS LAST JUNE , AFTER PROPOSALS WERE CONDUCTED , 14 SEVEN OF THE COMMUN ITY �PARTNERSHIPS WERE AWARDED 6 MILLION DOLLARS EACH. TON IGHT REPRESENT THOSE 7 PARTNERSH I PS. MOST OF YOU HERE YOU HAD PROVED THAT YOU WERE READY TO WORK TOGETHER IN A UNIQUE AND POTENTIALLY FAR REACHING MANNER -- PEOPLE AND INSTITUTIONS COMING TOGETHER TO CREATE PRIMARY HEALTH CARE TEACHING CENTER S AND TO DELIVER QUALITY, COMPREHENSIVE, INTERDISCIPLINARY HEALTH CARE. WE ARE ASKED SO OFTEN WHAT WE MEAN BY PRIMARY HEALTH CARE, PROBABLY BECAUSE IT MEANS SO MANY THINGS THAT IT MEANS SO LITTLE. I AM NOT GOING TO HELP WITH THE DEFINITIONAL PROBLEM, BUT I WOULD LIKE TO REFLECT ON A FEW THINGS THAT ARE IMPORTANT FROM MY LAYMAN'S PERSPECTIVE -- AND I SUSPECT TO MOST PEOPLE AS WELL. 2400 YEARS DISCONTINUITY AGO, THE GREEK IN MEDICAL CARE HI STOR IAN HERODOTUS IN HIS NATIVE "EACH PHYSICIAN TREATETH ONE PART AND NOT MORE. 15 LAND. PERCE I VED HE A LAMENTED, AND EVERYWHERE IS �FULL OF PHYS IC IANS ; FOR SOME PROFESS T ~ S L S PHYS IC IANS OF THE EYES , AND OTHER THE HEAD , OTHERS THE TEETH , AND OTHERS OF THE PARTS OF THE BELLY , AND OTHERS OF OBSCURE S ICKNESSES . " HERODOTUS WAS CORRECT IN H IS V IEW THAT A D ISCONT INU ITY OF CARE CAN RESULT FROM THE TREND TOWARD OVERSPEC IAL IZAT ION . HEALTH CARE , OFFERED OR PROVI DED IN AFRAGMENTED F ASHION , IS D I FFI CULT TO DEAL W ITH IN ITSELF BUT THE PROBLEM GOES DEEPER . OFTEN ACCOMPANY ING SPEC IAL IZED CARE ISTHE PROBLEM OF TRANSFERR ING INFORMAT ION BETWEEN CARE PROV IDERS WHO UNW ITT INGLY , OR WORSE , KNOW INGLY , INH IB IT THE PAT IENT 'S ACCESS TO COMPREHENS IVE CARE . I 'LL USE A PERSONAL EXAMPLE TO ILLUSTRATE WHAT I MEAN . By THE T IME MY MOTHER REACHED HER M ID 7 0S , SHE HAD SEVERAL D IFFERENT HEALTH PROBLEMS , INCLUD ING CANCER AND COMPL ICAT IONS FROM A SER IES OF STROKES . IN THE COURSE OF HER CANCER TREATMENT/ SHE WAS SHUNTED 16 �FROM ONE SPEC IAL IST TO ANOTHER , FROM INTERN IST TO SURGEON TO RAD IOLOG IST TO ONCOLOG IST , NONE OF WHOM REALLY TOOK A COMPREHENS IVE LOOK AT HER PROBLEMS IN ORDER TO ASSESS HER OVERALL COND IT ION . THE INTERN IST WHO IN IT IALLY D IAGNOSED THE PROBLEMS REFUSED TO CONT INUE AS HER PR IMARY CARE PHYS IC IAN , SO BY DEFAULT THE RESPONS IB IL ITY FOR F IND ING A NEW DOCTOR CAME BACK TO MY MOTHER AND OUR FAM ILY . ENCOUNTERED ANOTHER STUMBLI NG BLOCK WE A GREAT RELUCTANCE , AND AT T IMES , REFUSAL OF SEVERAL DOCTORS TO TRANSFER MED ICAL RECORDS OF THE CARE THEY GAVE MY MOTHER TO OTHER PHYS IC IANS WHO ALSO WERE TREAT ING HER . CONSEQUENTLY , EXAM INAT IONS , TESTS , AND PROCEDURES ~ DUPL ICATED UNNECESSAR ILY , AT INCONVEN IENCE ,D ISCOMFORT , AND COST . I UNDERSTAND THE REASONS G IVEN , BUT I DO NOT ACCEPT THE F INAL RESULT AS ADEQUATE OR DEFENS IBLE . ISNOT AN ISOLATED ONE . THERE MUST BE BETTER WAYS . TH IS EXAMPLE FR IENDS AND ASSOC IATES HAVE TOLD ME S IM ILAR STOR IES , AND YOU CAN SURELY ADD ANECDOTES OF YOUR OWN . 17 �OVERSPEC IAL IZAT ION AND A LACK OF CONT INU ITY IN CARE ARE NOT PROBLEMS CONFI NED TO OBSERVERS THE CONTEND , PRACTI CE HAS OF MEDI C INE . RESULTED FROM SPEC IAL IZAT ION , THE SOME IMPLEMENTAT ION OF TECHNOLOGY IN ALMOST EVERY F IELD , FORC ING THE IND IV IDUAL TO DEAL W ITH AN EVER INCREAS ING NUMBER OF PROV IDERS OF SERV ICE . THE SPEC IAL IZAT ION OF HEALTH PROFESS IONS EDUCAT ION AND HEALTH SERV ICES IS , IN MANY WAYS , AN AMER ICAN ACH IEVEMENT WE A~ BE PROUD OF . BUT AT THE SAME T IME , WE MUST MANAGE ITSO THAT ITDOESN 'T BECOME AN END IN ITSELF . FRAGMENTED , IF SUCH SPEC IAL IZAT ION RESULTS IN FRUSTRAT ION AND INCOMPLETE PAT IENT CARE , IT NEEDS RETH INK ING AND REARRANG ING . TH IS PROBLEM SHOULD BE ADDRESSED BY ALL HEALTH PROFESS IONAL SCHOOLS , AND PART ICULARLY BY THE MED ICAL SCHOOL . THE MED ICAL SCHOOL HAS THE RESPONS IB IL ITY OF EDUCAT ING THE KEY MEMBER OF THE HEALTH CARE DELI VERY TEAM . THE DOCTOR HAS BEEN THE QUARTERBACK , THE CEO , THE GUARD IAN , THE GATEKEEPER -LARGELY DETERM IN ING IN WHAT MANNER AND 18 �WITH WHAT EMPHASES PATIENT CARE IS PROVIDED. SHE PROBABLY REMAIN IN THIS POSITION FOR YEARS TO COME. SHOULD BE TRIED. WHAT ABOUT A NURSE OR HE WILL BUT NEW MODELS QUARTERBACK, A DENTIST QUARTERBACK? I HAVE A TRUE STORY THAT ILLUSTRATES THE ISSUE OF HEALTH CARE AVAILABILITY AND ACCESS. NOT LONG MICH IGAN, AGO ON A VISIT TO A COUNTY SEAT IN SOUTHERN I MET WITH A GROUP OF YOUNG DOCTORS. I ASKED THEM, "IF THE MAWBY FAMILY ·MOVED TO THIS AREA, COULD ANY OF YOU TAKE US ON AS NEW PATIENTS?" THERE WAS A QUICK CONSENSUS, "OH YES, RuSs MAWBY, CHAIRMAN OF THE KELLOGG FOUNDATION, OF COURSE WE WILL GET YOU IN." "NO, NO," I SAID. "RUSS MAWBY, OR LET'S SAY RuSS JONES, WITH A WIFE AI\JD THREE KIDS, TOWN." 19 LIVING ON 40 ACRES SOUTH OF �AGAIN THERE WAS QUICK AGREEMENT, NEW PATIENTS. FOR NOW, "NONE OF US YOU'LL JUST HAVE IS TAKING ANY TO GO TO THE EMERGENCY ROOM AT THE HOSPITAL." I DON'T BELIEVE THAT IS A SATISFACTORY ANSWER TO PRIMARY CARE FOR FAMILIES; EMERGENCY ROOM CARE SHOULD BE FOR EMERGENCIES, NOT SERVE AS A USUAL POINT OF ENTRY FOR PRIMARY CARE. EXPERTS KEEP TELLING PROBLEM ONLY FOR COMMUN I TIES. THE ME THAT ACCESS URBAN POOR TO AND THAT SI MPL Y I S NOT TRUE, HEALTH FOR CARE PEOPLE I F OUR MEASURE GOES BEYOND THE MOST PRIMITIVE OR BASIC STANDARD . ALL TYPES, CIRCUMSTANCES, URBAN AND MANY FAMILTES RURAL, WITHOUT TO SATISFACTORY PRIMARY CARE ON A CONTINUING BASIS. A SERIOUS REMOTE OF RURAL ADEQUACY IN COMMUNITIES OF REGARD HAVE REAL DIFFICULTY 20 IN IS TO ECONOMIC IN GAINING ACCESS �BUT AS A LAYMAN, I HAVE OBSERVED THAT HEALTH PROFESSIONALS PARTICULARLY PHYSICIANS, BUT TO A DEGREE ALL HEALTH PROFESSIONALS HAVE NO PROBLEMS GAINING ACCESS TO THE HEALTH CARE SYSTEM. CHILD OR MOTHER OR GOOD FRIEND NEEDS TO SEE IF THEIR A DOCTOR, EVEN A SPECIALIST WHO IS BOOKED SIX MONTHS IN ADVANCE, THERE IS NO PROBLEM OF ACCESS. I SUSPECT THIS MAY BE A FRINGE BENEFIT WHICH EXTENDS TO HEALTH PROFESSIONS EDUCATORS. YOU INTO BELIEVING THIS ISN'T ALSO BUT DON'T LET THIS LULL A PROBLEM FOR THE REST OF US, REGARDLESS OF GEOGRAPHIC, CULTURAL, OR ECONOMIC CIRCUMSTANCE. I CAN'T HELP BUT THINK THAT THE VERY PRESSING PROBLEM OF MALDISTRIBUTION, AND SOME SAY SHORTAGE, OF NURSES IS ALSO DIRECTLY RELATED TO HEALTH PROFESSIONS EDUCATION ISSUES -- ESPECIALLY MEDICAL EDUCATION. AS A LAYMAN, I CAN'T UNDERSTAND OR SYMPATHIZE OR HAVE PATIENCE WITH THE KINDS OF "PROFESSIONAL SNOBBERY" WHICH SEPARATE THE HEALTH PROFESSIONS IN EDUCATIONAL AND CLINICAL SETTINGS. 21 I DO �NOT UNDERSTAND THE RELUCTANCE OF THE MED ICAL PROFESS ION AND MED ICAL SCHOOLS TO TAKE A MORE UNREAL IZED POTENT IAL OF ENL IGHTENED V IEW OF NURSES AND OTHER RECOGN IZ ING TH E NON -PHYS IC IAN HEALTH PROFESS IONALS TO MEET HEALTH CARE NEEDS IN TH IS COUNTRY . I SUSPECT THE EL IT ISM AND SEPARAT ION WH ICH ST ILL CHARACTER IZE TOO MUCH OF PHYS IC IAN EDUCAT ION AND CARE W ILL NOT BE TOLERATED MUCH LONGER . TH IS ~~OUL SEEM PART ICULARLY TRUE AS THE PUBL IC BETTER UNDERSTANDS HOW SUCH PAROCH IAL ISM IMPEDES THE QUAL ITY , CHARACTER , AVA ILAB IL ITY , AND COST CONTROL OF CARE IN THE IR COMMUN IT IES . H INOVATI VE APPROACHES MUST ENCOURAGE POCTORS , NURSES , DENT ISTS , AND OTHER HEALTH PROFESS IONALS TO PRACT ICE TOGETHER MORE EFF IC IENTLY AND EFFECTI VELY . THISINCLUDES PROVI D ING CARE IN UNDERSERVED AREAS AND TO UNREACHED CL IENTELE , SO THAT ALL PEOPLE , AFFLUENT , POOR , L IV ING IN THE C ITY AND IN THE COUNTRY , HAVE ACCESS TO QUAL ITY HEALTH CARE . 22 �NOTICE I SAID QUALITY HEALTH CARE; CERTAINLY A PERSISTENT AND BASIC CONCERN OF ALL. IN RECENT YEARS, NOT JUST IN THE PRACTICE OF MEDICINE, QUALITY INCREAS INGLY HAS COME TO BE DEFINED IN TERMS OF USING HIGH EQUIPMENT, TECHNOLOGY. PROCEDURES, WE PRIDE AND SYSTEMS WHETHER INDUSTRY, OR COMMUNICATIONS. ON TECHNOLOGY CAN OURSELVES ON CONTRIBUTE USING THE IN MEDICINE, LATEST THE AUTO IN THE HEALTH PROFESSIONS OVEREMPHASIS TO A FAILURE TO NOTICE THAT THE PRACTICE OF QUALITY CARE FOR COMMON AILMENTS MAY BE JUST AS GOOD OR BETTER I N A SMALL , MODESTLY EQU I PPED CL I NIC AS I N A MAJOR MED ICAL CENTER. MEDICAL SCHOOLS HAVE TAKEN THE LEAD IN APPLYING HIGH TECH TO THE PRACTICE OF MEDICINE (AS WELL THEY SHOULD) BUT THEY MUST NOT RUSH SO FAR AHEAD THAT THEY FORGET THE HUMAN DIMENSION THE PATIENT'S PERCEPTION OF QUALITY WHICH OFTEN HINGES ON HOW THE DOCTOR TREATS THE PERSON, INDIVIDUAL NOT JUST THE MEDICAL PROBLEM. FACULTY MEMBERS THAT 23 THEY DESPITE STATEMENTS BY RECOGNIZE THIS PATIENT �PERCEPTION OF THE QUALITY OF CARE VERSUS THE PHYSICIAN'S PERCEPTION OF CARE, MOST OBSERVERS ARE UNABLE TO NOTE MUCH EVIDENCE OF THAT RECOGNITION. IF YOU OR NOT WALK STAY?" WERE TO HAVE A HEART ATTACK TODAY, OUR LOVED ONE WOULD I NTO THE HOSP I TAL AND ASK, "WHAT I S THE · AVERAGE LENGTH OF BUT THAT YARDSTICK HAS TOO OFTEN BEEN A PRIMARY MEASURE OF "QUALITY" ASK, I IN "IS SHE WITH HER? HOSPITAL IN MAY PAIN? I SEE REVIEI-JS. INSTEAD, A LOVED ONE IS LIKELY Is SHE BEING KEPT COMFORTABLE? HER?" PHYSICIANS AND TO IS SOMEONE HOSPITAL ADMINISTRATORS TEND NOT TO WORRY ENOUGH ABOUT THESE HUMAN MEASUREMENTS WHICH ARE SO SIGNIFICANT TO THE PATIENT AND THE FAMILY, AND TO THE PATIENT'S RECOVERY. THERE IS A DEFINITE NEED FOR EDUCATORS TO GIVE AS MUCH CONSIDERATION TO THE PATIENT'S PERSPECTIVE ON QUALITY HEALTH SC IENCE Ar--ID RESEARCH. MANY 24 IN PRACTICE AS IT GIVES TO RESPECTED AUTHORITIES HAVE LONG �CALLED FOR INCLUDING THE HUMANITIES AND SOCIAL SCIENCES IN THE HEALTH PROFESSIONS CURRIC ULA AS A MEANS OF INSTILLING A CONCERN FOR HUMANE CARE IN THE BUDDING PHYSICIAN, DENTIST, NURSE, PHARMACIST. IN THE COMMUNITY PARTNERSHIPS INITIATIVE, MODELS WILL EMERGE THAT NATURALLY INCLUDE THIS OR I HOPE NEW INTERDISCIPLINARY DIMENSION AS CENTRAL TO ALL HEALTH PROFESSIONS EDUCATION. I CAN'T LEAVE OUT A COMMENT ABOUT COST. MUCH ATTENTION IS NOW FOCUSED ON COST AND WHO PAYS. OF THE POLICY WE SPEND 12% OF THE GNP AND IT IS GROWI NG AT A RATE GREATER THAN ' I NFLATION -- BILLIONS AND BI LLI ONS OF DOLLARS. WI TH COS J. AS A FOCUS, THE "SOLUT IONS" ABOUND -- REDUCE THE UNNECESSARY PAPERWORK; ASSESS THE EFFECTIVENESS OF VARIOUS TECHNOLOGICAL INTERVENTIONS; SHIFT CONSUMERS; LET EMPLOYERS FOOT MOST OF THE BILL. FEES; RESTRICT HOSPITAL STAYS. DECISIONS TO CONTROL PHYS ICIAN BE MORE LIKE CANADA; BE LESS LIKE CANADA! OUR SYSTEM DOES INDEED COST TOO MUCH FOR WHAT WE GET AND IT LEAVES TOO MANY PEOPLE OUT. 25 BUT THE FOCUS MUST BE ON �MULTIDISCIPLfNARY MODELS--MORE PRIMARY CARE PRACTITIONERS WORKING TOGETHER IN BETTER WAYS TO HELP KEEP PEOPLE HEALTHY, RESTORE HEALTH, AND TO DIE WITH DIGNITY. THE SYSTEM, ITSELF, MUST BE CHANGED! THAT'S WHAT YOU ARE UP TO. IV THE COMMUNITY PARTNERSHIPS INITIATIVE INFLUENCE THE HEALTH PROFESSIONS IS A BOLD STEP TO DIRECTLY EDUCATION GRADUATES FOR COMMUNITY-BASED, PRIMARY CARE. SYSTEM TO PREPARE IT IS OUR HOPE THAT YOUR DEVELOPMENT OF THESE SEVEN NEW. MODELS -- EACH IN ITS OWN WAY -WILL ALSO CONTRIBUTE TO A BETTER, MORE AFFORDABLE HEALTH CARE SYSTEM THAT EVERYONE WILL BE ABLE TO ACCESS. OF COURSE, GUARANTEES THAT ALL OF YOUR COMMUNITY-BASED, THERE ARE NO PRIMARY CARE MODELS WILL SUCCEED IN REDIRECTING THE HEALTH PROFESSION EDUCATION; AND THE COMMUNITY PARTNERSHIPS INITIATIVE ISN'T INTENDED TO BE A SOLUTION FOR ALL THE PROBLEMS OF OUR NATIONAL HEALTH CARE SYSTEM. 26 BUT YOU �AND I BOTH KNm -J OUR SOC IETY W ILL AFFA IRS IN HEALTH CARE NOT PERM IT THE PRESENT STATE OF TO LAST FOREVER , AND THE PRESSURES ARE GROW ING UPON POL ICYMAKERS TO F IND SOLUT IONS . PERHAPS T INKER ING W ITH THE STATUS QUO AND CONDUCT ING MODEST IN IT IAT IVES AROUND THE MARG IN IS THE GREATEST R ISK OF ALL -THE R ISK THAT NOTH ING W ILL CHANGE WHEN SO MUCH ISNEEDED . ELECTED OFF IC IALS AND POLICYMAKERS , RURAL FOLK AND C ITY FOLK , THE YOUNG AND THE ELDERLY , THE UNDERSERVED POOR AND THE UPPER M IDDLE CLASS , WE ARE ALL COUNT ING M ICH IGAN , WEST V IRG IN IA , ON A~ AII YOU . TENNESSEE , MASSACHUSETTS , TEXAS , GEORG IA -I KNOW YOU W ILL DO IT . I FULLY EXPECT H ISTOR IANS TO LOOK BACK FROM THE YEAR AND MARK SEPTEMBER 1991 AS THE 2020 BEG INN ING OF B IG CHANGE IN THE HEALTH CARE F IELD ! 1 0 8 0C 27 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1991-09-11_RMawby_SPE Title A name given to the resource Russell Mawby speech, Community Partnerships in Health Professions Education Policy Conference Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 11, 1991 for the W. K. Kellogg Foundation at the conference for Community Partnerships in Health Professions Education Policy. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Health Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1991-09-11 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/a51957b153c35dde405898003f8cd0af.pdf 0129b50b2d9f9322a10746f3ac04da23 PDF Text Text RGM Notes from "Ox Yokes and Whippletrees" presented at Region I-IV meeting of National Rural El e c ic Cooperative Association on , September 10, 1992 at the Amway Grand Plaza Hotel, Grand Rapids, MiChigan~ I ' ". ~~. ~<~:..- ~t-: -\- t..L-J K. K:. p : ~-< .,J;J ~. , - -~ c L ( ) ) .I �\ ~ I j , �C H' IJ ( ri f ( e r e t 1 n I eLd 1 rou 1 , 'i e r • t n nrr r am L as lZ �. . n e r p lL cv, and for '1 ronm£>ntal q u a l ' • I 1 o r 1 lt e ffectiv e n . a tre rs or " ! .ma r3 . '11 r •1 ~ (ue (~ I I I l ' _ aT r :3 1 r1 () r, l . t( ~ l . \ isrI ,t e d . IT t r r( . ~ .1 l ia t ratrnenr on e e r IS5 1 3 d t F> j I T n d g , r : 0' h 1 r h1 t- •1 , a , t AT ' 1 . 1 ' n f l u e rec t h ep lt tt ra Ip r o ce s tosociet "s disa va r rea se 11 numb e r , v arL etv, and ef fctlv e n ess o t t .. . . 1 d c . h S n he f 't1 h and c ffed 1 ' ' ' 1 ' l e a lr e s p o n ses t changIn n ed s. f ' t a t e s p e ron a t '1 a t ~ t i ~ t P T l I i ~ , -~ .. p et a l . I n t .t II p (tiv 1 v . t h ra l l h the c on cep t , o t e n tJ.t l f>mpI t. th~ ~ -o re s r h i VE fi l J . a. , it n •a n i f f t~ j ' \ f f i r { a t e rd if f u s i o nand less l oyal t yt op a r t y end pur p o s e , Fh c r e t e f fe ct FOV t th e 0 . . n e n t 's abiL ity, a taI h ' • an h e " Ini t ia ti s , wh i r h a1 d to r ~i . O bs e r v a tion 2 : T ' ,r t ~ TnE e f t n e v isi n and c o mpr e h e n si e a tr a h , hic I i ( a p rc es s a ll t p r f tE , s( d em on tr a t -e n ew a "V ier s to so c e aI n -d s, a r pr e ' , "id r p ra r .g c1 )p ve ! > . to h . a ~ f t i l �f 5 Am erican p eopI e. t f ' s low ed . and i ~t reasln ly, s t a t e s and ! o c r a l+ i f ' i Ir , p ' 1 t . r es ur r a ' I ~ l . o '!". r 1.. t h ec o mmun it yI e 'e 1 . p o h lE ' " ' f o rnearly a ll s t a t5 a r d ~ ; .10 a. l l . p. '11<1 t a t " " lS f~ f ' t1pm s r er f ' rt "~ m p 1t • de rt fl t d a nd n~ AT(1 C I SI " i d lars alo( ' b u ti nthF' i " r r e a s pd ommitrnont indinvolv em » T p p l pa t P f o ~ n th f> ' ' I X s v stem , es p ecL alIv ,t oraise . ) r e n u e s p do> I - a r e f ' !C '1o / t~ ple a o t r g a i n . o p p ) r tu n l ti e s o rP I 1 \ e et W l 0 '15 a d e s p e r a r nped o t o b e l o r n e m o r e r l r fl ~ 01 a e n ' 1 sIng l im i t e dr e s o u r c e s and i n mo t 1izirb r r ' J rp effe_ tt' . iT pad h ~. p ro l em s o f cmrerf1 so c i e ty t o t e nd t o b e " ' omp le , rnutiL is p r r a k f '' " r co r t t · p ' T ~C l i s t- I n flatlon, K 12 an d hig h e r edu cat .i o n, WT ' p r l y h I " C ' te g r' IT' :1 a < ;i I iV h ps J n ta ol t1I lS r v . t t. ,: l h i q ' f> d .pflv'ronmental qua' p I . a r a . dts r~ i a ( h 0 - f j r b! ' , e n p r a ' ; l l l "'.1 e l e 0 r~ r lOT o t eS • t r l e n t a ( a< ;k m aj o rcont r ' bu tt o n be r .ome La so c i eta ln ed s t h a atp o. . .r> I I. . �sr vt on 4. a k'. l f l ig g x I )U 1 1 . e n P L J1 l IS l ' v -( ~ a v idp , e e na n c iT ~ V 1 d 'y . d .1 )11" . , ; c l e a r ~ p el" s t in a a t edi t•g ~ t h e plQJl1 n~ p-o -1t chcoi and r 0 11 '1 re. i ~ h Ih 111r , t ~ ~ ~ ving t ls wh en eve rr e so u r c es d re lim i t ed . h e el em en t a ryschoo PI d n .... tj ai • J . h 0 1 ) . t ~ 11 _ I ' . J h e re s ud sw e r hrolvyear I ' l l l l i t ' l p h r I;>S, . .. o r .,~ r 1i r '1 . J . 0 I .1 a k a dy dnd m na l 1 n " , ang e iT ' o ' e r n or n1y 8 .1U e a ra t P nn "tat e . ' Y e t . l i af st a t ~ r s t h e ti a t<~ l a ns_ . let y . r e a c . t h a i t hav ing a thr ' > P ·mon th a _ I mm t .ns tL ) y rC l1 a( C l P t u( a t r r ' ag t, d• ag . t P l we l 1 S ' rS I g & . 11 1 da .w ith lem re 0 ' rr .I �r ) )WT n .. , r a 1 ��� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1992-09-10_RMawby_SPE Title A name given to the resource Russell Mawby speech, Ox Yokes and Whippletrees Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 10, 1992 for the W. K. Kellogg Foundation at the Region I-IV meeting of the National Rural Electric Cooperative Association. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1992-09-10 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/849314992ef9af01db0dfcebeca04e38.pdf 855db96c8d4081b316e44d8a19a58b63 PDF Text Text f J. , - L �( .( ��g l' ve:l " ' C ~~' l Sn e \J • 1 '~' ~ 10 y' 7;,; "T: {:> _- ~ l" _ ~-'-l' _ ~ uv +v ~l . e 11101:.'8 t e L1. ':i:re1101 'c , of A'<:>o':::;icu.l ture , at the d i.nn e r in h onou.r of Dr . and I·ITs ., Rus s e L'L Go I'lccvrby on 1 SGIl t ember 1975 0 cJr . 2 ::lCi hI' S . L) \.I oe n a.L;~ 1 - Jr' " U r.- l' VR S ,- + 1 ~ 1J...e - 0 . +v ba~0 ....... '..... L\ u<.ys yo u I ~ ...- " -.:..O U~-J... ~ .. ') .,.,.u~ "-<..... to d ay s you vril l loo k haJP Y o~ fa i ~ ly oJ l-ir's o j·lm'rb y ,- to G O V G r run en~ . ful l u' ca .-...1 ~u~ r e . :. --'- ...... J..."8 · -. o -.L" .','~ P : (:: l' ~~· _': l L. ~ .. ' l'·, ~.c, .~ OJ:. 0 .n d £ 0;'1'1 , .rren tl e i;18 .il ~ ""' r; i ,,,~ anc ....L...l,'") C _'.. "-"-_ ........ "-"....... • I'~ 8:i/8 y Q c r:,-'" ' l. - " _" ·u":1 e n ~ , ~ v \ -i[ '-' i i i.... \..' \.... ''' ....L--'- 'Dade m e m o~ i o s . t~ at o.; ~ o n o ur , on of we lcoming you - t he to e eer e s s t1le h o'oe that the I'~.~or':lay 2. S c" . : C.l"'C. "'-2. c; ~ long j ou rney t o have the gu o s t s of ..l..... 'i n _ _ 2.. S I\T o -_'~'"·r 8. Y 8. ....... . w i' L1 c ome L.O ..l... De - \': ortIwrhile expe z i enc e You a r e a.b ou t to s et ou t on a w.i.Ll, t ake y ou further n or t ri than rc o st other p I a c e s ill tile nc r tri e rn hein i ap h e r e \I i t.h any nODu l a t i on settlemeLt - s t i l l less , an y form of :·l ',.., ·--' n k c ' 't 0 + '~e Gul f Str e am - or t he _ .l: ' "':"'J.l.. o,J. \..u ~ ... ~T o :::· th .:.\~ tl 811tic D:::-ift - wh.i c h c arries some of t he warm "ra t e r ~~::..~o m t h e Gu l f o.f I,le x i c o up a s fa.r as t ~n c co asts oJ:' No.rway ) 3 e t t l e meil '~ 2 11 0. eve n q~ l;_i te a cr e o. i table amoun t of ag:c i cul tu:: e is ':Ol ll Q. i n our country , ,:::her e t h e r e i s els ewI18r e on l y sn ow and Lc e , \Iest C01..LL1 t r y an d Y:'or.,ra y ' s wel l -blown fj ords - wn i cn are c ons id e :L'e d \','orth a lc :~g j Ol :.r21 C Y by many peoplE; wh o want to see ~hem f or th ems e l v e s . I Wish you a p le as an t j ourne y ho pe t h at ~~ e we ather go(s vi II prove to be i n a an d bC iLLZll mood " You wi l l maxe ~C:l e <..cqu.c: i n t 8..nc e o i.' an 'L<.-:.l.l~ s u al c o unt ry , 1..1J1ic.'c.8 c:..llcL vril ci in l ts n atur a.I s t a t e . quar t e r s 0: g or way ' s total a r e a c onsists of ill~roductive �G en t is ac tua ll yc u l tiva te d lan d . ' i ,'i '~ll the excapti . on 0: ' " co r c oL a r -ge a rea sI I IE a. s tez -nI i 0r ' : l 8 y, SO 'u th' : I e s t e : cn l i o :C \ ' l a :Y' a .:.' l G. ~:C · 0n ue1 8.g , popul a ti o ns e ttl em e n t i scO :L~' i n eci to sma . l . Ls t . r i .ps in the va lleys and . a long t h e fjo r d s out t ow a r d sth eS C ) ' ' '" ' I \ . . ;C' _ • . j ?r O i l lO s l o r, y ' l~ c . . . . . I .. . .\ . J . . up to \ ' !a rd . s ti l emOD I itsi n s. t ot :1 el \ : c r: ;h C 3~ e tI l e leng th 0: : :t h ec o u nt r y equal sthed ista n c e tro in O s lotol \ .om e , . A ti t sn a r .r ow e st t h e cc u n t . r -y is n ot ~110r e t . n a n2 , few k ilo r a e t r e sW ide . F : : : ' :'om" c im eLnu . icmoria . L p eop le 1 1 8 v e liv ed .a n ds o ug h t toea rn 2 , l i ve l il :o od .~l t l l i scountry w n icn is i:~ so: , 18 : n y, : r ays b a : c r ( , ;u an«. i nhospita . o le~ and ye ta .t th8 sam et im e ri c h . To c. ~:,y C Norw a yi sone o~~· -c~l e ri c : lco t .z .r rt. r ies - and a good 'J:oce th er OU J2-t: : . . 'y toIIVI ' : ; in W i t ! l YO l :T co u nu ry \,·. ' e a r et h i sy e a r ceLeo r a t .Ln gt h e lul d r e dyear s to~~c Un i t ei S t at e 3 ~ In t~e D i 'o 1 1 o \ iin e ;tl~ e \ ,oY 2ge 0 : : tile sloop;1:~e s t o ::c' atioIl" in '1825 , e~ igr a ti o n 800 O JOi:~ o r1;reg ia:.l s Y01 _ ~ 0 : 18 0:;:" :~oll o\' ecl L" '.h e r' 1;[2 . } ( e . Dr .I · I a ' . foy; ,r e :9rese n tt ' :1 . e. '1 .K . K el l ogg Eou n da tion, t' : 1C g r ea t A : . -ner i c2 .nf ' O J .n datLons' : ( ( l i c i : lcont r i b u t e o tl l e l ' countr i es" I t~ as . WK . Ke llogg , the t ~ITOU e~o ~t i onee~ o f l " . . c , .t h ew o r l d , who e s t a o l i s h e d ..1.I1 1lSJ ..O U I la al ; l o n . ished .t ous et h o:.:.'o::.:' tt ".-uel .8 :(~ a ci. r a adof o r the Jene i 'it H ew o f ' Ji18:" '11 :i n C't. H e w ant e f ~o inves ti npeo y l e ano .h el Dt h eo e l pt to h e m s e l ve s ~ Hi s r iffiar~ ~ is~ \ ' l as tna t eX is t ing kno' , ' ! l edge s r .ou.Ld '08 appL i . ed t oso .Lv i .ng the m o st p z essi .ng �D I 'oblem s o~ t ~ e d a y . OV2r 2 . . lO L g pe ric . , o ~'\y ay h a s' o e e nf ' ortuna .t;e e n ough '~ o : :ec e i v 2 su b sta n tia . ,: ' :!1 l d . . : ; ene : c ous g rants f r o mt h e Co nt~c t 8 w ere e s t a lis ~e d i n ' 1955 Wh811 y o u r pI 8d2CC:: ' : ;SC: : ', J : c .. Emo r y\1 .. ~ ilo rris , vi s i t e d . _ . ,.- ' " 1 t " I: :J J0 , :1 l12 - 8 S " ( ; 1 : .8 ac id .0( 3 . . ti m et l u 'eG6 iif e : : ' e n tp rogr a :n r n es u.. I do no t in tend t o~ o i n ~ o t~e se i nd e t a i io , . l - ~ ,avc enj o y ed a f c a r's s tu c . ytou r L ' 1' e i le ' JSAa sr e c ip i e n t s PL OO J ect3 h . 9 .V8loeC' ei . ' l o c i 5: ' l i1 1 l 0 nkr o ne : r1 o r a: suppo rt £ : ,1110lm t L l g i l la ll to o v e r r o im ,'~e l y 0 : '1 0m . iL lLon do . lLa ra S evera lp r o je c t s ar es t i l l un c . e r\ ' f ay, i : : :" l c lu c iL : .g0112 : . c e l c : , t i n g -~(; aeveLo p .n c r r ta r id € ;Ui c . . a . l 1CC fo r 'cl'~ e . r eindec r L1Qu:.;-cr yi nl<' l l l i l l na rk w h i .ch you w i l l seG a t fi r s t-h an d Ol lyo u r jo u r ney n o r t h. ' .'.~le SU ) po : c ' t ci v e r~ to a l lti l e s e~) r o e(;t s i l a sm ca n t o C;: cc : s ' ed e a l dir c c tl yt~c I' o v, gl;, t l : efu nds 1 :ri : i c i 1n a v eb een : , J I ' o v i d 8 d~ but } / c :L !1a p . 3 no 1 8ss b eca u s ct . h e1 ) I '0jects 112 . ve : ' : 1 , . f a ct ' : ;Dc n . 08 811 c l .01 8G .U 3 t oi1 ' : . i ' 0 ia t2 iT Jp o r t a I l t SCh 8 ; ;o8S w cic nc a n . . .r • 0 : : ' 1 .0::""' :18Gl 2 . n ~ , I hou: ~ l i k et om e n t i o~ ~h c fe llo shi~ fo c i a . ] evey :y s ing l e one o ft h e 79 h o l d e rs o fK e ll OGG818 rds is ca r r y i n go u t~es anu .unpo . r ta n t_ 'C' , jn " , , ' l r ..' " , l " " ' . _ " , , v _ v J._ " " " " .... 'C 'c " · ' lC ' l l --'L~ " L o . . . .L-iv"u . . . u ,_ C i,b .....:.... ~ hese onsi le r ' e ~-..l..... Ci d JO l; r , ' ' f e l l ow sh i u s na v e .L \ '1 hi , C1 1h a s bor n e : : : ' i c1 1:':'-:cL _i -:~ s f0:1.' ~;, o n ley C:l : 1G .' I ' ! i t:r~\'lh i c ::l ' e h e " ' !. , K K e l l oG g j ! ' 0T1c ic:tio ; 1 C8 11 ' : / e l l JC s a ti3 f i ed .. : 2 c ; l J , a lly im) O r ta:lt ~ w e 1 ' e81, BL 'C the per s o na . lt i e s' :Th ic f lL ave' o ee :1 es t a b l i s h e d �tn rough tn isp rograI I l f i l8 - co r r t acts c r e a t ed a tt h e i n d i v i d u a l le v e land bCl ; : : o en Am e r ic a nand .N orw e gL a n i n s t i t u t ions w hic na re o f la s t i ng v a l u e. i V e be l i e v eth a t th eK e ll o g gfe l .Low a h i .p hol d e r shave b e e n good am b a ss a do rs f o r N o rw a yduri n gth e i r st a yi nthe USA . I nr e t u r nt h eUSA has ga ined a ho st o ff r i end . si nlTo riTay . On be h a lf o f tD e Eo r ' : iogia n Gover n men t Iw ish t o t h a nk the . WK . K e ll ogg FO i l lld a tion fo r th e fina n cia l assisu an ce v re have rec e i v edup t onow ,a .s w e l la s fo r exce ll e n tcoope z ation, I th a n ky o u , Dr .t :J :av r b y , - and t h e ot h e r rep resen t at i ve s -o ft h eW .K . K e llogg Foundat i o n- fo r rp erso n a l o oop era . t Lon whi c hn a sa lw ays b e e npLeasa n t you and ef f e c tive . Yo uh a v e been i nI:T o : c \ ' r ay on m a ny o c ca s i o n s a . st h eJYound a tion1s D irec t o r fo rA g ricu lt .u r -e , I nre s p e c t o f m o st o f thep r oj e c ts fo r wh ich we h a ve r e c e iv edsuppo rt, you h av eb ee no u r snokesm a . : ' l in the O~'ldat i on ' s co u nc il and execu tiv eb o a rd . I knowtha t you n a v em any f r i e n d si nNo . rwa y, H is M a jesty K ing 018 v co n f er r ed on you t h e c r o s so f th eO rde ro f S t. O l a v . I t wa sa t o k e no f L a ~y ear reco gnition t oth eP re s i d en to f the v i .K .K e l l ogg Foun d a tion fo r sup po rt a r id coo p e r a t ion, b u ta tt I l e sam et i m ea t o k e no f app rec ia tion t oy o u you rse l fp er s ona llyfo r you r coo p e r a t i o n End frie n ds h i p . be lieve tha tper s ont o :pe r s on co n t a c t s en d pe rs o n a lf r i e n ds h ip a rev ery mu c hpa r to fL nte rna . tLon e .L ~e co i cx tstcn ce and Lnt . e . rn a . tLona .L coope r a t i on. A s Ih a ve a lr e a <iy sa id ., yO ' . l r cc unt : l 'ya r id mi n ea re L a .nked by firmCL ' 1 d La sti .ngt i es . O u r co ' lL abo r -a ' tion I· T i th you an d ti le ins t i tu t i o n you r e p r e s e n t is a newl i n ki nt h i s n at . i on c to c ia ' t io n con tac tfo r w h i . ch» re ar epz-o foundLy g ra te f u l. In t h ehopeth a tt h i scon ta ct I-r i l lc o n t i nue ,I w ou .Ld ask you a ll t orai s ey o u r gl a sses in a t o as tt oth e ~. . K . K e llogg Founda t ion a r idto coo:pe ra tion a r id fri e nds h i :p e~~r een ou r ~vo cou ntri e s andth e i rp eop l e . � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1975-09-01_RMawby_SPE Title A name given to the resource Russell Mawby speech to Norwegian Ministry of Agriculture Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given September 1, 1975 for the W. K. Kellogg Foundation to the Norwegian Minister of Agriculture. Minister Thorstein Treholt's speech thanking Mawby and Kellogg for their support is also included. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan Charities W. K. Kellogg Foundation Speeches, addresses, etc. Agriculture Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1975-09-01 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/36ccdf5d368cbc4da00ed5da8435970e.pdf 9a8a07cbe15811df1157f3dc1b3aec84 PDF Text Text .. J .- r "UNFINISHED BUSINESS" Remarks by Dr . Russell G. Mawby Chairman and Chief Executive Officer W. K. Kellogg Foundation Battle Creek, Michigan Oakland University October 9, 1984 In the quarter century since Oakland University was founded, much has been done, both here and elsewhere, to achieve the goals of continuing education that were made vividly explicit at the time of its origin. Chancellor Varner and his associates and successors carried forward and gave concrete expression to the constantly enlarging themes of service which, on this campus and elsewhere, have begun to change the character of American higher education. Appreciation is expressed to Dr. C. O. Houle, Professor Emeritus of the University of Chicago and Senior Program Consultant with the W. K. Kellogg Foundation, for his assistance in the preparation of these remarks . �Page 2 Even ln the most traditional form of university-based continuing education - - courses offered for credit -- the number and proportion of adults has had an accelerated growth. The number of students over the age of 25 rose from two-and-a-half million in 1972 to four-and-a-third million in 1982, a gain of 72 percent. In 1982, adults made up 35 percent of the total student body of all colleges and universities. These figures deserve respect but they are only a small part of a vastly larger whole which includes such continuing educational services as conferences, seminars, lecture and concert series , telecommunication through many media, field-staffs reaching out to places sometimes far-distant from the home campus, and the provision of learning opportunities for many constituencies, including agriculture, industry, commerce, labor, families, voluntary associations, and solitary individuals. �Page 3 While the continuing education movement has grown prodigiously, w~ all sense that it is still young. Most Americans have not fully grasped the concept of lifelong learning. They do not understand that the dominant conception of education should not be an institutional ladder constructed for children and youth but a much larger idea of a lifetime of learning in which people at every stage of their existence have opportunities to fulfill all their individual and collective potentialities. We have far to go in perfecting the schooling of children and youth 'but much farther in creating satisfactory systems for conveying the skills, knowledge, and sensitiveness needed during the later and much longer segments of the life-span. My assigned task today is to deal with only a part of the grand design of the present and the future. been asked to talk about how foundations can best I have �Page 4 collaborate with universities In the creation of excellence In continuing education. Both foundations and universities have many other partners, as we all know, but their relationship to one a not he r has been and will be a particularly rich and fruitful one. It will soon become apparent to you that when I say "foundations" I mean, most of the time, the W. K. Kellogg Foundation. The general can sometimes best be conveyed by the description of the particular and such is the case today. But, to be completely candid, let me say that our Board and staff have identified themes to guide our immediate future and I would like to convince you that we choose some of the right ones. I am enthusiastic about them and would like for you to share my enthusiasm. Let me begin by telling you the story of what happened In another place and another era. �Page 5 II The time was 1905 and the place was College Station, Texas. Three men were involved. The first was the President of Texas A. and M., David F. Houston, who introduced the other two. -The second was Wallace Buttrick, head of a new foundation, the General Education Board, established by John D. Rockefeller to alleviate the economlc deprivation of the South. The third, and dominant, figure was Seaman Knapp, a complex man of great power and diversity. In the 1880's, for example, he had been the most prosperous hog producer ln Iowa, the president of Iowa State College, one of the SlX founders of the land-grant college association and the author of and Congressional lobbyist for the Hatch Act, which established a national network of agricultural experiment stations. The dominant theme of his life was the establishment of systems of education for farmers, their �Page 6 wives, and their children. In 1905, nearly 70 years old, he was working for the United States Department of Agriculture as a Special Agent. He had assigned himself nothing less than the task of changing the practice of agriculture in the South by teaching farmers how to use the principles of scientific farming. President Houston made his introduction and withdrew, leaving the other two men alone to spend two days talking with one another. The next nine years were influenced momentously by that meeting . The cotton boll weevil, which had already crossed the Rio Grande, multiplied and devastated the agricultural economy of the South. Mr . Knapp was , one of the few people who then realized that a complete change ln farming methods was the only way to stop the infestation. He was also a man who , after a lifetime's experience, knew how to get farmers to change their minds and their practices. Consequently he turned �Page 7 his central attention t o the needs of cotton farmers, being aided In that task by an increased flow of money from an alarmed Congress as well as from railroads, mail-order houses, and other people who depended on farmers. But Mr . Knapp's interests in reform extended far beyond cotton; he wanted nothing less than to change all agriculture in the South. It was In these larger concerns that the General Education Board could help him, whereas Congress, despite all its wisdom, wouldn't. Public funds could be used only in counties In which the boll weevil was already rampagIng, but could not be spent In other counties, to prevent its spread. (This may seem a strange policy to you as it does to me but, later on , I shall mention a modern example that IS equally strange .) Fortunately, Mr. Buttrick's new foundation could pr ovide balancing funds to support prevention as well as cure and �Page 8 thereby enable a broad-based Cooperative Extension Service to come into being. Between 1903 and 1914, slightly under four million dollars had been spent on its development, 49 percent coming from the Federal government, 24 percent from the General Education Board, and the remaining 27 percent from other sources. In 1913, David Houston re-entered the scene, this time as the newly appointed Secretary of Agriculture. Knapp had died but his work continued, though in an increasingly diffuse and unco-ordinated form. Houston believed that it needed a firm establishment based in the land-grant colleges--not in the USDA, in the public schools, ln the state departments of agriculture, or any of the other institutions which were then fighting to claim the program. As a land-grant college leader, he was no stranger to politics, and with the support of the President of the United States, himself the former head of �Page 9 a university, the structures and processes which Knapp had devel oped and Buttrick had helped to finance became the established basis of the world's largest and most influential system of lifespan learning. Countless pe ople have been served by it from the dawn to the ending of their consciousness. As only one consequence, the excellence of this field service helped the land-grant colleges to become universities because voters were themselves currently benefitting from their own learning activities and wanted to assist the institutions which served them so well. This story has distinctive elements which gIve it the interest that any narrative should have, but it also suggests some principles which well-established foundations like to follow. First, a foundation has purposes and themes which focus its granting of funds. It is not merely a grab-bag for those who are nearest to it or can get there fas test. �Page 10 Second, it often seeks out the people and institutions which can best help to achieve those purposes and who can best use its help. Mr. Buttrick had had a long, slow, and discouraging Journey through the South before he finally found the man and the program In which he could have full confidence. These days it IS more likely that an institution will seek a foundation but, if so, it will usually not succeed In gaining support unless its proposal fits within the broad themes around which the foundation has chosen to shape its programs . Third, the foundation helps 'out in a distinctive fashion. Sometimes, general institutional support is granted but more often the foundation wants to find the specific way in which it can best help. Fourth, once an agreement IS reached and the money is granted, the foundation allows the greatest freedom of management which is consistent with ultimate �Page 11 accountability. It wants to see results but it does not want to dictate the ways by which they are achieved. Fifth, if possible, the foundation would like to have its funds achieve a major and enduring social change. The eradication of the boll weevil was a great accomplishment and the General Education Board might well have taken pride if it had helped out more directly in that task. Its purpose was broader, as was that of Mr. Knapp, and it helped achieve that purpose far more spectacularly than it could ever have hoped. We who work In foundations are hungry for more such successes. Foundations follow many more principles than these and sometimes they work in entirely different ways, the chief exception being when they administer programs themselves, as they often feel they must do. In such cases, they may have a great impact on universities (as I shall illustrate later), but it is a different sort of impact than that �Page 12 which exists ln collaborative situations such as the one which ultimately produced the Cooperative Extension Service. If I may draw one more lesson from that example, let it be the necessity for expecting changes to occur ln the working out of programs. Who could have guessed in 1905 that the ultimate provider of funds for the Extension Service would not be John D. Rockefeller, then the richest man in the world, but David Houston, then the president of a little Texas college? How did higher educational institutions, who were not the original grantees for either governmental or foundation funds, become the ultimate administrators of the established program and therefore the secondary beneficiaries of its services? It seems to me that as we move into new ventures ln lifespan education in the future, we should always be ready to revise our course of action, keeping ln mind the profound �P ag e 13 ch ang e s wh i ch o c c u r r e dI nt h ed ev e lopm en to fa g r i c u l t u r a l e x t e n s i o nI nt h en I n ey e a r sb e tw e en 1905 and 1914 ,a p e r i o d wh i ch w eu s u a l l yt a k et oh av eb e en f a rmo r e t r a n q u i lt h a nou r own s to rmyt im e s . I I I Wh a t s h o u l db et h en ew v e n t u r e so fc o l l e g e s and u n i v e r s i t i e sa sf a ra sl i f e s p a ne d u c a t i o ni scon c e rn ed ? Wh a t th em e sa r et h emod e rn e q u i v a l e n t so ft h eG e n e r a l E d u c a t i o nB o a r d ' sm i s s i o n t oa l l e v i a t et h ee conom i c d e p r i v a t i o no ft h eSou th ? Th e ~~ o u n d a t i o n ' s Bo a rd 0 0 F and s t a f fh av ea sk ed t h em s e l v e st h e s eq u e s t i o n s and h av e d ev e lop ed s ev enb ro ad g o a l s wh i ch i n c l u d ea numb e ro f s t r a t e g i e s . I hop et h a tw es h a l lb ew i s e enough t or e v i s e t h e s eg o a l s and s t r a t e g i e sa s ch ang es e em sn e c e s s a r y bu t a tt h eend o ft h e1 9 8 0 ' s ,w es h a l lp r o b a b l yt u r nou tt o h av ec o n c e n t r a t e dc h i e f l yon th em . �Page 14 They are not suggested as being universally the most important topics with which mankind, or even Americans, should deal. At the Foundation we must make choices. We cannot ignore our charter, and our Congressionally-imposed limitations. On some crucially important issues, such as the prevention of nuclear war, we do not see how we can be directly helpful. Our resources are so limited that we can assist only a few of the many people who bring worthwhile projects to our attention. But within such general limitations, we have established programming priorities to guide us in making 'de c i s i on s in allocating our resources, I shall not go through the whole structure of our purposes, particularly since it 1S reported so fully 1n our annual reports and elsewhere. Instead, I shall go a bit deeper into a few of our goals, selecting the ones most relevant to lifespan education and to universities. �Page 15 So far as schooling is concerned, so important in the early years of the lifespan, the Foundation is starting 1n the community and moving toward the university. This country has recently had an abundance of reports pointing out all that is wrong with our system of formal education and suggesting countless recommendations for change. When such universal prescriptions are tried at the local level, it is often hard to make them work. Also, one discovers able and articulate teachers and administrators who feel that society has dumped many of its most intractable problems upon the schools and then blamed them because, 1n the resulting conflicts, their fundamental tasks are not being carried out. Many of these professionals have been locally innovative and have achieved success stories which have never been widely told or appreciated. We at the Foundation have therefore decided that so far as formal schooling 1S concerned, we shall limit our �Page 16 own efforts to Battle Creek and to Michigan to see how schools can improve themselves with our help, and perhaps set new patterns which will be useful elsewhere. a precedent to follow. We have More than fifty years ago, Mr. Kellogg helped establish a public school ln Battle Creek ln which handicapped children were educated along with those who were not handicapped. We believe that this local school, to which visitors have come for many years from allover the world, was instrumental ln the national growth of the idea of mainstreaming. We hope that other fresh ideas for change will arise within our local schools and go on to have a far greater influence elsewhere . How do universities come into this picture? At the moment, we think of them as supporting and reinforcing our Battle Creek and Michigan schools, to be called on as needed. The middle-sized cities in our state are now working together to assist elementary school principals to �Page 17 lmprove their performance . They have asked Michigan State University to help coordinate and guide their work and we are supporting this effort. We hope that such arrangements will multiply. Richness of field contacts will help the universities know how to guide the lifelong learning of educational professionals and thereby improve the work of the schools. Let me add that the Foundation staff, partly because of its own past experiences, is very much aware of the non-school learning activities of children and youth and has supported many projects for t hem outside formal education, both in this country and abroad. A few of these activities are related in some way to higher education; work ln 4-H clubs, for example, is administered in the United States by land-grant institutions. At this point we do not have any policy as to how programs for out-of-school youth should be generally linked to colleges �Page 18 and universities other than to say that it seems likely that as the concept of lifelong education matures In practice, such linkages will appear. A second major theme of our Foundation's programmIng is to help that concept (of lifelong education) become more fully developed at the point at which it is now weakest , the provision of opportunities for continuing education during the years of adulthood. Since the midpoint of this century, we have been interested in the growth of university-based residential centers . This movement, which we take pride in having originated, has now been so widely ad opted that we cannot get an a ccurate count of the number of such centers o r a valid taxonomy of their purposes and programs. We have also helped two-year colleges to evolve from junior colleges to community colleges . Both of these institutional forms, now solidly In place, need to evolve and change to meet emerging adult �Page 19 needs and desires for learning. Perhaps the Foundation can help them do so. More generally, colleges and universities need to consider whether they are servlng their present and future students as well as possible. As I have said, at least 35 percent of current enrollees ln formal classes are over the age of 25. A good deal of anecdotal evidence suggests that these forms of instruction, originally designed for an immature student body, have not been adequately adapted to serve as suitable methods of learning for experienced men and women. Even the new me thod s of instruction bear traces of the old. Elaborate systems of telecommunication too often produce only arid lectures and factual question-and-answer sessions. More than that, the countless providers of adult education do little net-working to help one another strengthen and integrate their offerings, to provide counseling for adults who are �Page 20 searching for learning opportunities, and to explore new areas of service . Educators who really listen to seekers- of-knowledge will find them to be an inexhaustible s our ce of programming ideas. The need for re-thinking the lifelong sequence of learning 1S particularly evident so far as the professions and the other users of advanced technology are concerned . . The chief change 1n higher education in the twentieth century has been the addition to the traditional classical and lib eral curriculum of the bodies of content which support these occupations. But 'with rare exceptions, universities have not followed their students out int o their fields of ser vice to do creative pr ogramm1ng either al one o r collabo ratively with other providers: professional and technical associations, governmental bureaus, work-sites (such as hospitals, schools, factories, and executive suites), o r profit-seeking �Page 21 providers of knowledge (such as publishers, sellers of supplies and equipment, or the operators of entrepreneurial schools). Perhaps universities should stick to pre-servlce education and leave the later years of learning to other providers but I am not yet convinced that that is true. For it seems to me that universities have several inherent advantages which they do not now use as fully as they should. They are major sources of the new knowledge indispensible to all professionals and advanced technicians. They alone can provide continuity of learning throughout youth and adulthood. They have the authority to initiate collaboration among the other providers of learning. Most important, they are the homes of a variety of fields of knowledge and therefore the places where the professions can collaborate ln carrying out their educational programs. The lifelong learning �Page 22 patterns of physicians, dentists, lawyers, englneers, architects, and nurses have basic similarities as do the programs which provide that learning. The educators who operate these programs should learn from each other, and . ' they should establish ln the pre-servlce years a basis for inter-professional learning activity and help maintain it through all the years of practice. If universities and other institutions are to develop strong programs of adult continuing education, they must develop a sound knowledge base to give intellectual support to their work. Also administrators and other people responsible for adult education must have an adequate preparation for their professional life and not carry it forward merely on the basis of lore, tradition, hunch, and trial-and-error, valuable though such experiences may be. �P ag e 23 Aq u a r t e r c e n t u r yago ,t h eF o u n d a t i o nh e lp ed t h e U n i v e r s i t yo fW i s co n s i ne s t a b l i s ha c e n t e rf o re d u c a t i n g t h el e a d e r so fC oo p e r a t i v eE x t e n s i o n . Al a r g enumb e ro f t h ep e o p l e who d i r e c tt h a tS e r v i c et o d a yp a r t i c i p a t e di n theC e n t e r ' sa c t i v i t i e sand a l lsu chl e a d e r sh av eb e en i n f l u e n c e dby i t swo rk . R e s p o n s i b i l i t yf o rb u i l d i n g an a d e q u a t e know l edg eb a s e and e d u c a t i n gl e a d e r swho c an u s e i tmu s t b es h a r e dby a l li n s t i t u t i o n swh i ch spon so ra d u l t c o n t i n u i n ge d u c a t i o n ,b u to n l yu n i v e r s i t i e sh av et h e b r e a d t ho fc o n t e n t ,o r i e n t a t i o nt oe d u c a t i o n a lp r a c t i c e , and a c c e s st ot h ee a r l i e r ~ o fl e a r n i n gi nt h e l i f e s p a nt oc a r r yfo rw a rd an a d e q u a t e comp r eh en s iv e app ro a ch t ot h etw i nt a s k so f know l edg ep r o d u c t i o n and d i s s em i n a t i o n sof a ra sa d u l te d u c a t i o n 1S con c e rn ed. A ta b r o a d e rl e v e l ,t h es h i f tf r om you th -dom in a t ed e d u c a t i o nt oa l i f e l o n gl e a r n i n gc o n c e p t i o nw i l l r e q u i r e c o u n t l e s s ch ang e s 1n p o l i c yw i t h i nu n i v e r s i t i e s ,i nt h e i r / �P ag e 24 r e l a t i o n s h i p sw i t ho t h e ri n s t i t u t i o n s ,and l ngov e rnm en t and o t h e r sy s t em so fc o n t r o land ~ H e r ew e mu s t h av er e a land p r a c t i c a l ch ang ei n v o l v i n gn ew l i n e son o r g a n i z a t i o nc h a r t s ,h i g h e rp l a c e sf o ra dm i n i s t r a t o r so f c o n t i n u i n ge d u c a t i o nl nt h ebox e si nt h o s ec h a r t s , and m a jo r r e a l l o c a t i o n so fr e s o u r c e s . We h av eh ad enough g e n e r a lt e s t am e n t st oc o n t i n u i n ge d u c a t i o nand e v a n g e l i s t i capp ro a ch e st oi tt os u s t a i nu sf o rt h et im e b e i n g . We nown e ed t os e e ' n ewp o l i c i e s wh i ch a r er o o t e d i ns u s t a i n e dp r a c t i c e . U n i v e r s i t i e s mu s t m ak e su ch ch ang e sf o rt h em s e l v e s . Th ey c an a l s ob et h eg e n e r a t o r s o fb r o a d e r ch ang e by s p o n s o r i n gcomm i s s ion so r comm i t t e e s o fi n q u i r yi n t oa d u l tc o n t i n u i n ge d u c a t i o n ,u s i n gt h e i r p r e s t i g et oa t t r a c tt osu che n t e r p r i s e st h el e a d e r sand p o l i c y -m a k e r so fs o c i e t y . I nt h el a s tf ewmom en t s , Ih av eb e en t a l k i n gabou t w ay s o fs t r e n g t h e n i n gt h ep r o v i s i o no fa d u l tc o n t i n u i n g �Page 25 education. Each of these tasks could be undertaken separately, as has been the pattern in the past, but if they were parts of an integrated approach by a single university or state-wide system of higher education, the cumulative impact might be far greater than if each strategy were followed separately . The University of Georgia is making such a unified thrust, involving many parts of the institution as well as outside collaborators and such centers of control as the Governor and Legislature. We are happy to be able to assist the University of Georgia in this integrated effort and hope that the lessons learned there will have an influence nationwide. Georgians are certain that theirs is the oldest state university, dismissing rival claims by North Carolina, and it would be pleasant if they could celebrate their bi-centennial year by moving toward the forefront of public institutions as far as a complete system of adult continuing education is concerned. �Page 26 The remaining themes of Foundation programming about which I shall talk today deal not with the improvement of the general structures and practices of lifespan education itself but with certain major changes which such education can help bring about. Any of our other Foundation goals could be used for purposes of illustration but I shall include only brief statements about several which seem particularly relevant to the purposes of this conference. The third theme which, In our VIew, should guide strategies for future change has to do with health promotion. You will remember that in the early years of the development of the Cooperative Extension Service, the government would help only those farmers whose fields had already been infested with the boll weevil and that Mr. Knapp had to find foundation support to help farmers who wanted to maintain healthy crops. A roughly similar situation now exists so far as health IS concerned. �Page 27 Magnificent research and dissemination efforts have conquered many diseases and expanded both the length and quality of life . As an unintended consequence, "health" connotes "disease" and so do its allied terms . "Health care " really means the care of the ill or the infirm. While society must maintain the programs of care which have been so painstakingly developed, it is becoming ever more apparent that the major new frontier of workers ln health should be both disease preventi on and active health promotion . A strong case can be made that the greatest gains in human welfare and happiness will now be made by an approach which is grounded in a broad and positive conception of health . This complex aim can be sought in many ways which can be roughly divided into two kinds of initiatives: those which have to do with individual lifestyles and those which have to do with the removal of public hazards to �Page 28 health. In the first case, change can come only if people intervene In their own lives, controlling their diet, their exercise, their causes of stress, their use of potentially dangerous substances, their habits of driving and the use of tools, and in many other ways. In the second case, the public must intervene to remove dangers which fall outside individual control, such causes of risk as pollution of the environment, unsafe highways, and inadequately prepared health professionals. We cannot rely on education alone to create a wholly satisfactory system of health promotion. Better engineering of roads and work-sites is required as is better enforcement of laws and increased knowledge about the nature and spread of infections. But people will not control their own lives or give active support to public initiatives unless they are taught how to do so. Therefore, while education is not sufficient, it IS essential. �Page 29 What is the role of higher education In this regard? Here are a few suggestions. First, the age group 15-24 IS the only one which has shown an increase in mortality In recent years. These are the heaviest years of higher educational enrollment, a fact which suggests that colleges and universities have a responsibility to aid their young students immediately as well as to prepare them for later years of life. Second, universities must alter their pre-service and in-service programs of educating health professionals so that all of them are more oriented to a positive conc eption of health. Third, more health professionals should be educated for the specialist concerns of education and promotion, including service In public health departments. Fourth, programs should be devised which help all adults, particularly the elderly, know how to intervene in their own lives to make them more healthful. Getting people to change their bad �Page 30 habits is a hard task, but perhaps one of the best approaches to it is to set such habits within the broader concern of the achievement of good health. At any rate , society has to try to change its whole orientati on to health and I hope that colleges and universities will not be laggards in this respect. The fourth theme I wou d like to mention today deals with fostering patterns of community leadership. The decision makers of our society galn their strength and authority by learning how to control the destiny of ever larger and more complex groups 'and institutions . This process starts early ln life as children, in both school and out-of-school settings, learn from the experlence of managing clubs and teams and projects and local chapters of national organizations. It continues in much the same fashion ln higher education, often becoming elaborately exercised ln fraternity and sorority life and ln systems �Page 31 of student government. The responsible exercise of authority shapes and polishes the individual both as an influential person and as a manager of collective affairs. This process continues in adulthood In career patterns In which individuals move upward on a promotional scale as their abilities and talents are rewarded . In such cases, it is now thought necessary to accompany experience with formal training. We no longer leave matters to the extra-curriculum as is true in school and college, but expect that experience will be refined and extended by formal stud y of some s ort. The best known example of this practice is to be found In business and industr y where marvelously complex forms of management education have been devised and are now financially supported on a massIve scale because their success has been widely accepted. But the idea is pervasive; for example, �Page 32 semInars are annually available to new university presidents and their wives and to state supreme court justices. The most highly developed systems of all are to be found in the military services (especially in the officer corps) where, from beginning to end, duty time is alternated with study time and even during periods of duty time, educational opportunities are available to everyone. Now turn to public affairs and more specifically to the boards, councils, commissions, and committees which control almost every aspect of our community life. The general pattern here is to have a group of citizens set policy, exercise authority, and serve as sponsors for an institution whose staff is made up of members of one or more professions. We have such boards in both public and private life, controlling: our schools; our colleges and universities; our health, cultural, and welfare �Page 33 institutions; and our voluntary associations . Here we find the influential substructure of our s ociety, immediately powerful in every particular case and crucially significant because it provides a ladder of leadership i n which citizens move upward and outward In their capacity to guide and control the institutions of society. But it is aston ishing to observe how badly many boards behave. Almost any issue of any newspaper provides accounts of the stresses which boards face and how frequent IS their failure to reach satisfactory solutions for their problems . It is universally agreed that success In the work-life requires study as well as experience, but it is not generally understood that education is also needed for those who control the destinies of our social institutions. Who should provide such education? The need is so great that the answer to that question might well be: �Page 34 anybody who identifies the need. specific than that. But we can be more Each board should help its present and future members to understand what they need to know about their own institution. There are associations of boards largely based on specific kinds of service such as schools, public libraries, higher educational institutions, and hospitals. Each such association fosters the learning distinctive to its institutional form. National associations, statewide coordinating boards, and collaborative systems of financing community service (such as the United Way) have a responsibility to educate the boards of local chapters or local institutions so far as their collaborative ventures are concerned. But there 1S a more general level of knowledge drawn from the fact that most boards face the same problems. (How large should a board be? be composed? How should its membership How can board members be persuaded to take �Page 35 responsibility? be? How long should the tenure of members How can a gradual increase in personal responsibility be fostered? What 1S the proper relationship of a board and its chairman to the chief executive officer of an institution? To its staff?) These questions sound trivial to inexperienced people but vital to anyone who has served on many boards. Those who know the answers to such questions can work powerfully within our community institutions. knowledge? Who should offer this generalized So far, community colleges have been the major sponsors and the Kellogg Foundation has been delighted to be able to help them. It is my hunch, however, that we have an opportunity for service here which should be re alized by other kinds of institutions, particularly large universities whose professional graduates are profoundly influenced by the boards for which they work. �Page 36 My fifth theme also deals with leadership but treats it as a personal opportunity for development. Almost every serious student of the span of life has concluded that sometime around the age of forty, most people have achieved a sense of stability In their personal and social lives and suddenly awaken to a need to re-examine who and what they are and how they wish to re-direct their continuing existence. This fact IS as true of university administrators and faculty members as of everyone else. The young scholar today goes deep into specialization and has an increasingly angular view of life. The associate professor or assistant dean is oriented to a discipline or a specific managerial assignment and often feels more identification and loyalty to it than to the institution as a whole or to the society which surrounds and supports it. �P ag e 37 Th eF o u n d a t i o nd e c i d e d som ey e a r s ago t ot r yt of o s t e r b r o a d e rl e a d e r s h i pf o ri n s t i t u t i o n so fh i g h e rl e a r n i n gby c r e a t i n ga n a t i o n a lf e l l ow s h i pp rog r am wh i ch wou ld s e l e c t abou tf i f t ya c ad em i c se a chy e a r who h ad f e l tt h en e ed t o u n d e r t a k ep e r s o n a lp rog r am st ob ro ad en t h e i rv i s i o n and comp e t en c e . Th ey s t a yon t h e i rj o b sw i t h al i g h t e n e dl o a d o fr e g u l a rwo rk and a r eg i v e ns u p p o r tt oemb a rk on p e r s o n a l l y d e v e l o p e dp r o j e c t s wh i ch w i l lg i v e th emb r o a d e r i n s i g h t st h a nt h e yp r e v i o u s l yh ad . Du r ing t h e i r t h r e e y e a rt e n u r e ,t h e ya l lp a r t i c i p a t ei ns ev en s em i n a r s , e a cho f wh i ch i s ~ d e s i g n e dt op r o v i d e a st o t a lan imm e r s iona sp o s s i b l el nsom ec l u s t e ro f s o c i a lp rob l em s , su cha sl abo r -m an ag em en tr e l a t i o n s h i p s , mod e rn r u r a ll i f e ,o rt h ed i f f i c u l t i e sf a c e dby an e c o n om i c a l l yd e p r i v e dn a t i o n . We h av el e a r n e dsom et h i n g sf romo u rf i v ey e a r s-o f e x p e r i e n c ew i t ht h eK e l logg N a t i o n a lF e l l ow s h i pP rog r am . �Page 38 Several might be worthy of mention. We have been pleased to see that when mid-career scholars and administrators are glven the opportunity to go beyond their disciplines and assignments, they eagerly do so. In fact, among the most educative aspects of the program are the special cross-field projects initiated by fellows. Second, we have found that keeping them at their own home bases means that they are ln positions to influence their colleagues and to walk across campus to follow up on associations with people in other fields to which they have been initiated during their fellowships. Third, we have come to realize how readily university life can be adjusted to support such endeavors as the one we have undertaken. It was always intended that the program would go beyond academic leadership to include people at a similar career stage ln business, politics, public administration, agriculture, and other spheres of work. When we began to �Page 39 seek out such individuals, ' we found how incredibly complicated it is for them to adapt their work patterns even for the minimal time requirements of the fellowship. We are persisting In our efforts to reach new categories of people but this task may never become easy. Fourth, the initial decision that we would have to administer this particular program ourselves In order to insure its breadth still seems right to us. We have not ye t found any other institution to which we could comfortably transfer its administration . This venture into a highly specialized form of adult continuing education has seemed at this early stage to be successful; many fellows seem to have had almost a conversion experience. No final judgments can, of course, be made until we see the trajectory of the fellows' careers and try to estimate whether they are in fact more broadly based leaders than they would have been �Page 40 otherwise . To the degree that the program is successful, however, it raises the disturbing question as to why there are not more efforts to design education which will give our society, in all its ways and works, a larger number of responsible men and women who have both a creative vision of what could be accomplished and the practical capacity for doing so. To come closer to home, if the academic life is particularly suited to that kind of study which would achieve breadth of viewpoint and help our present and future scholars and administrators to make wise choices at the time of their major mid-career reviews whenever they occur, why are so few opportunities to do so now being provided? IV By this time, you may believe that I have suggested more tasks than colleges and universities may be able to assume. But institutions of higher education have shown �Page 41 again and again that they can meet the challenges which they set for themselves or which are required of them by society. To cite only one example, they are successfully broadening the base of their own enrollment by enrolling not only adults but other students whom they have traditionally under-served. In 1972, women made up 43 percent of their total student bodies; in 1982, it was 51 percent. In 1972, 10 percent of their enrollment came from racial minorities; in 1982, that figure was 14 percent. Such profound changes, coupled with the massive growth of adult enrollments, i nf l u e nc e some institutions more than others but the over-all impact will eventually be very great. The question which sets our theme at this conference has been a concern of the leaders of Oakland University for twenty-five years. serve its publics? How does a public university best The record of the past indicates that �Page 42 we may have confidence in the future that this and other colleges and universities will accomplish the creative tasks which they confront at each stage of their development. As f or higher education as a whole, the central thrust of my comments IS that its leaders can best achieve their purposes if they not on l y strike out on their own but also collaborate with government, industry, labor, and other institutions and associations in sharing common tasks . I hope that American foundations will have an important part in many such mutual endeavors. "unfinished business" for us all'. 472 wpc: 10/8/84 There is � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1984-10-09_RMawby_SPE Title A name given to the resource Russell Mawby speech, Unfinished Business Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given October 9, 1984 for the W. K. Kellogg Foundation at Oakland University. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Family foundations--Michigan W. K. Kellogg Foundation Charities Speeches, addresses, etc. Education Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1984-10-09 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text https://digitalcollections.library.gvsu.edu/files/original/e3c1bf251999a314e3fb4c7fd27a8ff6.pdf 3c8d06fb5c16d50ccb94865a33cc54fe PDF Text Text /C - .,- -P I THE KELLOGG FOUNDATION EVALUATES A PROPOSAL Remarks made by Telelecture by Dr. Russell G. rilawby, Vice President, W. K. Kellogg Foundation to the Na t i ona l Conference for Less-Than-Baccalaureate Degree Programs in Agriculture Pennsylvania State University October 9, 1968 Thank you for the privilege of participating in your Conference program in this way. I very much regret that the pressure of other commitments ma k e s it impossible for me to be with you in person today. Ma ny of you are friends and colleagues of long stfulding and I would appreciate nothing more than the opportunity of being with you to discuss less-thanbaccalaureate degree programs in agriculture, the timely theme of this Conference, as well as to visit with you about other subjects of mutual interest. lNhen Dr. Snyder wrote and extended the invitation for this presentation, it was necessary for me to decline with regret because of other commitlnents. vfuen he pressed further and the possibility of this discussion by telephone ~aterialized, I was delighted, for it is better to be with you electronically than not at all. My assi gned topic in this discussion is "THE KELLOGG FOUNDAT ION EVALUATES A PROPOSAL." My remarks, of c ourse , will not have the benefit of t h e earlier discussions of your Conference, but I hope they will be relevant nonetheless. My comments will be brief and I will be anxious to have specific questions so that I ca n c omme nt on points of gr e a t e s t interest to you. �-2 - A s you r Con f erence f o c u ses t h i sa f t e rnoono nthe p r o bl em so ff i n a n c i n g a s s o c i a t ed egr e ean dl e s s t h a n b a c c a l a u r e a t ed e g r e ep rog r am s in ag ri c u l - & tu r e ,i t isa p p a r e n t th a t I amt or e p r e s e n tt h e" found a tio n "a s p ec to f p o s si b l eso u r c e so fsu p p o r t. w i t on c ed es c r i b e da fo un d a ti o na s "an is l and o fm o n e y, en tir e l ysu r r o und ed by peop l ew ho w an ts om eo f it . 1; H h i l et h e r e ' sa m o d i cumo ft r u t hi nth a t face tious s t a t em e n t,fo u n d a ti o n s c anb e t t e rb e ch a r a c t e ri z e da s-"p riva te, nonp r o f i to r g a n iz a t i o n se s t a b l i s h e dt op rov ide a s y s tem a tic and r e s u lty i e l d i n gp a t t e r no fg i v i ng t o ai dso c ia l,e d u c a t i o n a l , ch a r i t a b leo ro t h er a c t i v i t i e ss e r v i n gthe common w e l f a r e . " Th e r ea r et o d a ym or et h a n1 8,00 0g r a n t -m a k i n gf o u n d a t i o n si nt h eU n i t e dS ta t es ,a l ll i s t e d and d e s crib ed b r i e f l yi nT h e Found a ti o n D i r e c t o r y pr e p a r e dby T h e Founda tion Li b r a ryC e n t e r , 444 M ad i son A ven ue, N ew Yo rk C i t y. A syou t h i n ko fp o s s i b l e suppo r tf r om f o u n d a t i o n s ,su cha d i r e c t o r yo fcou r s e ,w i l lb ee s s e n t i a l ,f o r it i s im p o r t a n tt h a t you kn ow t h ep u r p o s e s an d ph i l o s o p h yo ft h efou nd at i o ns f r om~ i y ou m a yb es e e k in gs uppor t . I ns c ann i n gt h i sl i s to f founda - ti o n s ,it w ill b e read i l ya p p a r e n tt oyou th a tv er yf e wf o u n d a ti o n sh a v e i d e n t i f i e da gri c u l t u r eint h eU n i t e dS t a t e sa sa p r im ea r e af o rp rog rm a s u p p o r t. T he W . K .K e l logg F o u n d a t i o ni sa lm o s ts i n g u l a ram o n gt h ema j o r found a tion s,n a t i o n a l ins cop e,t oiden t i fydom e s t i ca g r i c u l t u ra li s s u e s a sam a j o ra r e ao fp r og r a min te rest .A s your e v i ewt h efo u n d a t i o nw o r l d , i t w i l lb er e a d i l ya p p a r e n t ,how ever ,t h a tv er ym a n y f o u n d a t i o n s t h o s e o fl o c a l ,s t a t e , r e g iona l andn a ti o n a ls cop e -g i v eh igh p r i o r i t yt o e d u c a t i o n al p r o je cts . I tm a yb e int h i sc o n t e x tt h e nt h a tyouw i l ln e ed t ocou ch a pr o p o s a lf o ra s s i s t a n c efo ra ss o c i a t ed e g r e eo rl e s s t h anb a c c a l a u r e a t ed egr e ep rog r& a si na g r i c u l t u r e . �-3 B e c au s et h ep u r po ses ,p rocedu re s ,p h i losophy andp ri o r i t ies o f fo und a t i o n sv a r yg r e a t l y ,i ti sd i f f i c u l tt og e n e r a l i z e . I amg ra t e fu l th a t D r . Snyd e ra s k edm eto sp e ak sp e c ifica llyf romt h ere f e r en ce p o in to ft h e fo u n d a t i o nwh ich I rep r e s en t . I ams u r e ,how ev e r , th a tm any o fthese commen ts w i l l b e appr o p r i a t ef o rm a n yo the r fou nda tions as we l l . I nsee k ingfoundat i on sup po rt ,y ou rf i rs trespo n s i b i l i tyw i l l be t ob ec om e a ~ ai t e d w ith t h e founda tio ny ou choos eto ap p r o a c h . T h is c a nb ed on e s t th rough Th e Founda t i on D ir e c t o ry, t h e nth ro ugh as t u dy o fann u a l fir r e p o r t sand p e r h aps a d e s cr i p t i v ebr o chu re w h ich m a ybe av ail a b l efr om t h ef o u n d a t i on. A s you do su chhom ewo rk abou tt h e W . K . K e ll o g gFounda t i on , youw i l ll e a r nth e fo l l ow ing t h i n g s wh i ch w i l l hav ere l ev anc et o t h ek i n do f a propo s a l you w o u ldsubm i tf o rou rc on si d e r a ti o n : 1. Ou r found a ti o n ,l i ke m os t found a t i o ns ,isch i e f lyi n t e r e s ted i npi o n e e ri n go rexp e rime n ta l pr o j e c t s . We a r e in te res ted ,i n n ov at i v e ap pr o a c h e s, s i g n i f i c a n tn ew e f f o r t s newideas wh i chrep resen t ad if f e r e n t a r a ~ W ea re no t i np r o v i d i n ga s s i s t a n c et ot h eo p e r a t i o n a l bu d g e to fan e s t a b li s hedp rog r am. Q u itef r ank l y ,m a n yo f t h er e ~ e t w e e i vein ag ri c u ltu re a r es imp lyf o r"m o re o fthe s am e," rec fo r rep e t i t i on o f an i d e aa l re adyw e l l dem on s t r a t e d ,o rf o r t a k e o v e r fo ra p o r tion o fa budg e tt h a ti si nt r ou b l ef o r on e reasono ra n o t h e r. 2. Th e K e ll o gg Found a ti o nis c once r n ed w i t ht h eappli c a t i o no f know ledg e . ' { b i l e w er e c o g ni z ec om p l e t e l yth e im p o r t ance an d t h e con tri b u t i o no f resea r c h ,w ed o no t suppor t rese a r chpr o g rw a s t �-4 p e r s e . R a t h e r , i ti so u rc o n v i c t i o nt h a to n eo fo u r p r o b l em sa sa s o c i e t yi st h eu t i l i z a t i o no fe x i s t i n gk n ow l e d g ea n ds ow e p r o v i d ea s s i s t a n c et oe f f o r t sw h i c hr e p r e s e n t t h e a p p l i c a t i o no fk n ow l e d g ei nn ew a n di n n o v a t i v ew ay s t o m e e t s i g n i f i c a n tn e e d so rs e r v ec o n s t r u c t i v ep u r p o s e s . 3 . Ou r f o u n d a t i o nd o e sn o tp r o v i d ee n d owm e n t s . W e do n o t c o n t r i b u t et od e v e l o pm e n t a lc am p a i g n s ,n o r do w e p r o v i d e f u n d sf o rc a p i t a lf a c i l i t i e s ,e x c e p twh en s u c hb r i c k sa n d m o r t a rm ay b ea ne s s e n t i a lp a r to fa p r o g r am t ow h i c hw e a r e p r o v i d i n ga s s i s t a n c e . 4 . Our f o u n d a t i o n ,a s som eo fy o u know f r omp r i o rc o n t a c t s , d o e sn o tm ak e g r a n t sf o rc o n f e r e n c e s ,f o rp u b l i c a t i o n so r f o rf i lm su n l e s st h e ya r ep a r to fa p r o j e c tt h eF o u n d a t i o n i sa l r e a d ya s s i s t i n g , 5 . Inc o n s i d e r i n ga p r o p o s a l ,w e a r ei n t e r e s t e di nt h er e s o u r c e s o ft h ea p p l i c a n t . W e s e l d om ,i f e v e r ,p r o v i d e 100% o ft h e mon ey n e c e s s a r yf o ra n yp r o j e c ts i n c ew e f e e lt h er e q u e s t i n g i n s t i t u t i o ns h o u l dm ak e as u b s t a n t i a lc o mm i tme n ta l s o . I n a d d i t i o n ,w e do n o tw a n t t op r o v i d ee n c o u r a g em e n tf o ra n y p r o g r amt h a tm ay b eb e y o n dt h er e c i p i e n t ' se v e n t u a lc a p a c i t y f o rc o n t i n u i n gs u p p o r t . And , s i n c et h eF o u n d a t i o nc a n n o t , b yi t sn a t u r ea n dp u r p o s e ,b ei na p o s i t i o no fp r o v i d i n g u n e n d i n gs u p p o r t ,w e a r ea lw a y sc o n c e r n e dw i t ht h ep l a n sa n d p r o s p e c t so fu l t im a t et a k e o v e ro ft h ef i n a n c i a lr e s p o n s i b i l i t y i f t h ei d e ap r o v e ss u c c e s s f u l . �- 5Within t he broad philosophi cal context s ugges t e d abo ve , I would emphas ize that our f oundation, lik e mo st foundat i on s , has an open mind when i t comes to con side ri ng idea s. We a r e careful not t o prejudge a proposal bec a us e o f it s c harac ter or source . So l on g as a p roposal co mes wi th in the broad scope of i nt e r e sts of our f ounda t i on-- a s I have indi ca ted , the f i elds of a gr i cul t ure and educati on a r e two o f t he f our a reas of interest of the Kel logg Foundat ion , t he other t wo b e ing t he broad a reas of he alth and pub l ic affairs - -and is conc e rned with t h e appl icat io n of knowledge in some i nnovat ive way to serve a signi fi ca nt purpos e, you can be ass ur e d that the proposal wi l l be ca r e fully studied . I n eval uati n g a spe ci fi c propos al, ou r first co ncer n , ther efore, is wi t h the ide a---wi t h t h e nat ure and significance of the problem which i s i denti f i ed, with t he statement of purposes , a nd with the program which is propo s ed. Th e si ze of the r e Que s t is not an immediat e concer n , although ult imately, of cour s e, we wi l l have to a ssess the benefits antic ipated i n r elation t o t h e inv e stment. Ini tially, however, it i s t he Qual ity of t he idea tha t wi l l be our pr ime cons i dera tion. Our f oundat i on, lik e most f oun da ti ons , has no standard applicat ion f orrn or format fo r the submiss ion of proposals . Further , our Board of ·Trustees me et s mont hly so that there i s no a nnu a l or ot her deadli n e before whi ch proposals must be con s idered . I f , after do ing yo u r ho mework about the Fou nda t i on ' s purpose , philosophy , and the f ields o f interest , you f eel you have a pr oj e c t whi ch comes within thi s fr amework, t he next st ep is to establish contact . This can be done by a telephone ca ll or a l et t e r. In �.... -6 ag ri c u ltu ra l edu c a t i o n , th ec o n t a c tw iththe K e llo gg Fou n da t i on co u l d b ew ith m e, w i t hD r. R o be r tE . K in si n g e r, on eo f ou rP rog r am D i rec t o rs a ck gr o und i si ncommun i ty c o ll e g eand u n iv e r s i t ye d u c a ti o n ,o r who se b w i t hD r. Ga r yK in g --u n til rece n t l ya r u r a lso c i o l o g i s ta t P enns y l va n i a S t a t eUn ive r s i t y and nowan A s so ci a t eP rog r am D i rec t o r on ou rs t a f f co n c ern ed pa r t i c u l a r l yw ith r u r a lan d ag ri c u ltur a lp r o g r am s. W ep r e f e r t ob e co nt a c t e dea r l yint h ee v o l u t i o no fa pr o p os a lo n ani n f o rm a lb a si s , a f t e r you h a v eg iven c a r e fu l though t andp r ep a r a ti o nto your p l a n s bu t b efo r ee v e r yd e t a i li sf i na l i zed . T hi sp r o vi d e so ppor t u ni t yf o rus t o reac t andi n t e r a c t ,w i t h anyp r o po sa l wh ich m a yu ltim a te lyresu lt r e pr e s e n tin gt h ee x p e r i e n c eo fb o t hp a r t i e s . I fi nyour i n i t i a lc o n t a c tt h e i d ea se em st oh av em e r i t andt ob ew i t h i n th e sco pe o fF ou nd ati o np r i o r i t i e s a tt h et im e ,you w i l lb ei n v i t e dt osubm i ta m o r ec om p reh en si v es ta t e m en t, s e ttingf o r t ht h ep r o b l em ,t h ep u r po se s ,t h epr o c e du res, an d ap r elim ina ry budg et re~ e t We a r en o ti n t e r e s t ed in v o lum in ous s t a tem en t s,b u t ra t h e r in a c on cise,c l e a r c u tandu nd e r s t an dab le pr e s e n t a t i o no f the i d e ay ou hav e in m in d. W h e nsu cha p r o p o s a l is rec e i ved , it w ill th en b er e v i ew edby on e o rmo r e s t a f fm embe rs a n d ,i fit looksp r om i s i n g, w i t ho ffi c er so ft h e Found a ti o n . I f ,a f te rth i sc a r e f u land som e t im e st im e c onsum i n gr e v i . ew , t h eideas t il l s e e m s t ohave p o t e nt i a l fromth e st a nd p o i nt o fFounda t i on i n te r e s t s ,w e pr o b ab l yw ill a rr a ng e a vi s i t t oy ou ri n s t i t u t i onto f u r t h e r di s c u s st h e pr o p o s a lw i t h yo u and o t h e r si np os iti o ns o fr e s p o n sib ilit y . im e ,w ew ill a lsoi n v i te y outo su bm it af u l l f l edgedw r i t ten A t tha t t p r oposa lto be su bm i t t e do ffi c i a ll ybyt h eC hi e f Admin is t r a t i v eO f fi c e r o fyou r ins t i t u t i on . S om ewh er eint h i sp r o c e s so fev a l u a t i o n, o fcou r s e , �-7i t may well be tha t we will invit e highly competent e xp er t s in whom we have confiden ce to evaluate t h e i dea we a re considering or we may review it with on e or another of the a d hoc committees which we from time t o time a s semble t o pr ov i de c ouns el in the r evi ew o f effective proj ect a r eas a nd t h e est abli shment of progr am pri orities. Af t er we rec eive your fo r ma l propo s al, a final de cision will be made by of f i cer s with r eferenc e t o t he specific reque st. the staff a nd If their decision is affirmative, a r e c ommendati on will then b e submitted to our Board of Trustees who, if they concur, will make a financial appropriation t o co ver t he amount o f the budg et reque sted. Usu ally our program commit·- nlent s are fo r a t hree t o fiv e year peri od and we require annual na r rat i v e and finan cial rep orts an d budget revision s a s a basi s f or our annual commi t me nt payments. This then is a brief sk et ch of the background against which and the procedure by which our Fou ndat io n YTould c onsi a er a propo sal whi c h you mi ght submit. May we now turn t o your s pec i f ic questions r elating t o the Kellogg Foundati on or to the fo unda t ion world in ge ner a l . � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Russell Mawby Papers Subject The topic of the resource Charities Family foundations--Michigan Philanthropy and society Description An account of the resource The Russell Mawby papers document the life and work of Michigan-born Russell Mawby from 1928 to the present. Mawby was the Chief Executive Officer and Chairman of the W. K. Kellogg Foundation for twenty-five years and is recognized for his work in the area of philanthropy in the United States, Latin America, and Europe. The digital collection includes a selection of field notes, speeches, itineraries, and other materials. Creator An entity primarily responsible for making the resource Mawby, Russell G. W.K. Kellogg Foundation Source A related resource from which the described resource is derived <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby Papers (JCPA-01). Johnson Center for Philanthropy Archives</a> Publisher An entity responsible for making the resource available Grand Valley State University. University Libraries. Special Collections & University Archives. Contributor An entity responsible for making contributions to the resource Johnson Center for Philanthropy Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Format The file format, physical medium, or dimensions of the resource application/pdf Language A language of the resource eng Type The nature or genre of the resource Text Identifier An unambiguous reference to the resource within a given context JCPA-01 Coverage The spatial or temporal topic of the resource, the spatial applicability of the resource, or the jurisdiction under which the resource is relevant 1938-2012 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Source <a href="https://gvsu.lyrasistechnology.org/repositories/2/resources/432">Russell Mawby papers, JCPA-01</a> Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Identifier An unambiguous reference to the resource within a given context JCPA-01_1968-10-09_RMawby_SPE Title A name given to the resource Russell Mawby speech, The Kellogg Foundation Evaluates a Proposal Creator An entity primarily responsible for making the resource Mawby, Russell Description An account of the resource Speech given October 9, 1968 for the W. K. Kellogg Foundation to the National Conference for Less-Than-Baccalaureate Degree Programs in Agriculture at Pennsylvania State University. Contributor An entity responsible for making contributions to the resource Grand Valley State University Special Collections & University Archives Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership Publisher An entity responsible for making the resource available Grand Valley State University Libraries, Special Collections and University Archives, 1 Campus Drive, Allendale, MI, 49401 Subject The topic of the resource Philanthropy and society Michigan Charities W. K. Kellogg Foundation Speeches, addresses, etc. Agriculture Language A language of the resource eng Rights Information about rights held in and over the resource <a href="http://rightsstatements.org/page/InC/1.0/?language=en">In Copyright</a> Date A point or period of time associated with an event in the lifecycle of the resource 1968-10-09 Format The file format, physical medium, or dimensions of the resource application/pdf Type The nature or genre of the resource Text