The mutual benefit chapter in the book also discussed interesting facts about mutual benefit organizations. I had no idea that groups, such as labor unions and fraternal societies were considered mutual benefit organizations. It’s understandable because the members benefit along with the group as a whole. Another interesting fact I learned while reading this chapter is that self-help groups have been one of the major growth areas for mutual benefit organizations. This makes sense because it seems as though people are constantly trying to better themselves through different means, whether physically, mentally or emotionally. Another fact I found interesting is that mutual benefit organizations constitute nearly one third of all nonprofits in the sector.

The articles assigned for this week also offered insight into philanthropy that I had yet to think about. The article that discussed the resiliency of nonprofits and philanthropy within America caught my attention more so than the others. It will be interesting to see the coming trends of philanthropy and charitable giving in these times of economic downturn. One economist quoted in the article discussed the fact that our post-recession economy is the “new normal” which is detrimental for the future of philanthropy. Many individuals and corporations aren’t in a place to donate as much as they have in the past and nonprofits are feelings these impacts.

The article discussing artist-endowed foundations caught my interest. I have been aware of several foundations set up by artists but I wasn’t aware of how prevalent they are within the nonprofit sector. It will be interesting to see if they continue to be as prominent in the future.

Now on to the other readings. The reading talking about Obama limiting the amount deductions a rich person can have on their taxes was interesting. I would agree. If people are finding ways to cheat the system and somehow donate just the right amount to pay the least amount of money possible then I don’t think that is fair. I believe charitable contributions are great and it is important to support our nonprofit but I don’t think nonprofits can replace government. I believe paying taxes is important and I don’t think anyone should be able to sneak there way out.

The article on economic crisis and the “new normal” was a little hard for me to understand. The part that stood out to me was when they talked about how nonprofit probably won’t be able to cover the cuts that the government will probably have to take in the next ten years but they can be part of the solution. He said that foundations can help support and build high-preforming nonprofits that will help us deal with the problems that may be looming.

The article about artist-endowed foundations was good. I don’t know much about the art circle but it was interesting to read. I think the bigger idea that I learned from this is how foundations can have such a big influence on society. Foundation can stop funding or make nonprofits comply with certain conditions before they get there funding. I guess this is fair since they are just giving money away but it makes me wonder the true purpose of some foundation. Are they there to serve the greater good or do they have some alterior motive?

The article on being able to prove the results of your nonprofit was interesting too. I think it is sad that some think that meaning well is not enough and that you have to have a proven impact. That is good too but sometimes I feel like we put so much emphasis on results and try to see the big picture that we miss out on the small picture, which can be equally good. I don’t know. The article just rubbed me the wrong way.

The chapter on mutual benefits organizations was a little confusing to me. I think it is because their explanation of the distinctions between “charitable” public benefit groups and “non-charitable” mutual benefits groups was unclear. Although, the book even mentions that the lines usually drawn between the two are not always clear. I did like how the chapter re-brought up the idea of altruism and self-interest and how nonprofits are usually a mix of the two.

The article, “Budget Plan Brings Big Changes to Tax Incentives for Donors” was about President Obama’s budget proposal to sharply limit the value of charitable tax breaks that the wealthy are taking. I found the article a little confusing for me to understand because I will admit I know very little about taxes or how the system of monitoring and implementing them works within the United States. They talk about how in recent years people have been discovering loopholes around certain taxations. I think that no matter how strong we try and make our system through budget proposals, policies, rules, or whatever, many will still continue to try and find some way of getting around the system. As I said, I do not know much about taxes and I probably should, but my hope is that Obama see’s a great outcome for his budget proposal and that it helps nonprofits rather then hinders them in the future.

Within the article, “Donors and Nonprofits Face a Defining Moment in Responding to a Crisis”, it discuses priorities of philanthropy, or what they believe the priorities of philanthropy should be. The one thing that really stood out to me while reading the article was this statement; “The billions of dollars contributed to charities each year are minuscule compared with government outlays “. The book mentions that even with a rapid increase in charitable giving, it could not make up for the cuts in government spending. Charitable donations topped $300 billion dollars during each year of the recession, but to imagine that government spending each year is much greater then that is insane to me. I can only imagine with the continued war in Iraq and the current recession, that government spending has only continued to rise or is at an all time high.
I believe the key concept within the article is the idea that no matter what crisis’ our country encounters or defeats, philanthropists and nonprofits should never relax or retreat, they instead must “redouble their efforts as active players in shaping how society works.” Nonprofit organizations contribute so much to the well-being of our society. I agree that our awareness should never stray to far from the efforts of nonprofits and lending our support to them. I believe they need us, as much as we need them.
I wanted to do a little more research on government spending and I came across this website; http://www.federalbudget.com/. The bar graph within the website directly comes from the “Monthly Treasury Statement” published by the U.S. Treasury Department. The graph includes Congress’ spending of different agencies from 2006 to 2010. Their results show that Congress spends the most amount of money on Health and Human Services and Social Security Administration, which have both increased from 2009 to 2010. I found it fascinating that our national debt is at $14.1 trillion dollars and they expect it to raise as high as 19.6 trillion by 2015.

I really enjoyed the article on Artist-Endowed Foundation titled, “A Newly Powerful Grant-Making Force: Artist-Endowed Foundation”. I never realized how many artists have created such foundations over the years. These organizations seem very important to the collections, archiving, and exhibitions of many artworks. I think it’s great that the Andy Warhol Foundation for the Visual Arts and the Robert Mapplethorpe Foundation announced they would no longer give any future grants to the Smithsonian museums unless the video was restored in the exhibition. I think this is a good example and demonstration of the power that these types of foundations can have. The best part about these foundations is that they not only focus solely on the arts, but they also make grants to organizations that focus on many important social issues, such as environmental conservation and HIV/AIDS.

The last article I read was titled, “How to do Good and Prove it: Integrate Social Impact in Your Nonprofit’s DNA”. I found this article a little less interesting then the others. The article is about Mulago Foundation, operated by Kevin Starr, which is trying to find the best profit opportunities for nonprofits. The article includes its demand for eight-word mission statements and it’s approaches and design for impact. I think the key part of the article is that in order to measure impact well, you need to be very precise in what you’re looking for to gather the right results to find the best profit opportunities for nonprofits.

Aside from the book, I’d like to comment about the article concerning Obama, Budget Plan Brings Big Changes to Tax Incentives for Donors, I wondered at the political tone of this article. It seems a bit slanted and critical of the shifting of tax breaks and incentives away from the wealthiest. While I’m all for everyone paying their fair share, I can certainly see that some organizations are highly dependent on private donations coming from wealthy private donors. This shift in taxation could potentially cause many organizations that are dependent to at the very least, suffer, at worst, fail altogether.

In Donors and Nonprofits Face a Defining Moment in Responding to a Crisis, author Sean Standdard-Stockton (great name), almost provides a counter part to the first article. All the scare that has surrounded previous financial crisis, has proved to be little cause for concern when it came to actual donations. This mirrors my thoughts too. True giving, true philanthropy should not be based only on its tax advantage. The true nature of philanthropy is giving without strings. The tax benefits should be considered icing on the cake, but not the sole reason to give. However, the article does say that organizations need to prepare for the worst in the event that within 10 years, philanthropy takes a hit. And what the author describes as the “new normal” could indeed be more than a trend but a sustainable financial platform that nonprofits will have to adjust to.

The Artist-Endowed foundation article, I thought was pretty entertaining. Being an artist myself, I understand how difficult and personal it is to maintain fine art’s presence and reputation with the public. The article talks about a foundation, funded by the most successful artists and art supporters. The foundation represents a large segment of artists, banded together to make a strong, unified response; and be a voice representing the artist within the art appreciation community. For example the response by The Andy Warhol Foundation and the Robert Mapplethorpe Foundation to the Smithsonian removing AIDS activist, David Wojnarwicz’s work because of pressure by conservative, religious critics and politicians was pretty neat. It’s good to see the super successful artists of our culture create foundations like this that can respond on behalf of the artist to provide a powerful pushback against critics.

Slideshow on Design for Real Impact by Kevin Starr

Finally, the last article, How to Do Good an Prove It: Integrate Social Impact in Your Nonprofit’s DNA, was an enjoyable read. The demand for eight-word mission statements and the Design for Impact approach is a straight-forward, no nonsense way of describing a successful approach to being a nonprofit. By measuring the good of a nonprofit through 1) concise and clear purpose, and 2) a measurable impact feedback loop, philanthropist Kevin Starr has created a unique recipe for success and has set a standard by which he sees viability in the nonprofits he donates to.

I feel that Kevin Starrs’ Design for Impact is really innovative. I think it is a great way decipher if organizations are actually helping in the way they say they are. Not only is a good way to measure funding, but it is also a good way for organizations to self evaluate and improve themselves, which will lead to their long range survival. I really liked this last line of his, ““You shouldn’t scale anything that doesn’t have impact. And we should just shut those [projects] down. Stop! Stop growing,” he says. “Stop raising money until you sort that out.” GREAT! People can cover things up in reports, but by distilling the information to the very essentials nothing can be covered up or hidden and the numbers are able to speak for themselves.

When reading Sean Stannard-Stockton’s article I think the first thing I was struck by was how  influential the nonprofit sector can be during a time of recession. They hold a lot of power right now in terms of providing jobs and tools for citizens. As the economy begins to settle down nonprofits are keyed to provide stimulus to add to this growth and then stabilize it. Their area is just so encompassing and influential. I feel like many people do not realize how much power they really have.

The article on artist-endowed foundations was new to me. While I knew they existed, I haven’t ever thought of them as holding any political power or leverage against the museums that they loan art to. I was surprised, but happily. I think that this is a good thing. These foundations are created so that various artists are able to live on in their work and by being able to maintain some control over where the art goes is able to represent more fully how the specific artist would feel about a subject. For instance, may artists (whether living or dead) would have been appalled by the removal of David’s work and to continue to support the organization that did this would be to say that the artist supports this act and condones it. In this way museums are given a sort of check and balance system. This is a difficult line though as museums do not want to be in any political debate or agenda but they are almost forced to maintain some attitude or opinion through the display of their work.

As far as the last article I read by Ben Gose, I was surprised to hear that tax breaks were already not limited before. I can honestly say I know very little about taxes, tax breaks, or policy in any way, but I was surprised that itemized tax break are even at 28%, that still seems like a large number.

Overall this weeks readings online and in the book were just as good as last weeks. I want to leave you guys with a couple of links that I found :

This article is about a study that shows the decline of charitable giving last year and how experts are not expecting to see an upswing next year. http://www.nytimes.com/2009/06/10/us/10charity.html?_r=1&ref=philanthropy

I love infographics. Here’s a few one’s related to this week studies:

http://mashable.com/2010/09/18/social-good-infographic/

AWESOME.      http://www.mint.com/blog/trends/the-giving-pledge-08102010/?display=wide

I was interested by the first video on blackboard, the question and answer with William Easterly.  He answered one question by talking about how people in poor countries receiving aid do not get the chance to give feedback about how their aid is working or pick and choose their most important needs; they take what is given to them.  This reminded me of my PPPM 415 class about public policy analysis.  Today we discussed how most government jobs are similar to these international nonprofits.  People in need of government services like education and healthcare rarely get the chance to change them because they can’t fire or hire new people.  If government services were publicly contracted and not a monopoly, it would be better for the consumers.  However, I don’t think this is possible for international nonprofits.  The people receiving aid cannot pick and choose different sources of aid because there is so much need, but I think that benefits can be maximized if the people receiving aid were able to give feedback.  However, maybe feedback is taken by the benefits received after the nonprofit has helped?

I also really liked the TED video about aid v trade.  I think she made a very good point about how many Africans feel like now that they are picking themselves up, they don’t need any more help from countries like America that are providing a lot of support.  They feel like lesser countries because they are so dependent, but now that they are getting better economically, they want to ditch their supporters.  I think that the speaker was very smart when she said that countries like the US and the UK would not be what they are today without the help of Africans.  We depended on them, and they depend on us now.  I think this is the point of international nonprofits; to spread the benefits to other countries and reciprocate for help provided in the past.  It’s not about one country being better than the other; international nonprofits want us all to be at the same level.

The book also mentions that foundation support for international organizations rose during the 1990s, which may have been triggered by the strong economy during that time.  It increased from 765 million dollars in 1990 to 1.6 billion in 1998.  I believe that increased awareness has a lot to do with it also.   I can imagine that most people have in some way will or have contributed to an international organization within their lifetime. I think international activity has grown and given people more opportunities to contribute help to other countries while remaining in the United States, such as raising money or hosting visitors from other countries.  The book also mentions that international activity attracts unique types of volunteers, such as doctors.  My dad is a trauma surgeon and he has volunteered in a few countries to help them out.  I think his favorite would be his trip this year to Iraq.  He has always wanted to volunteer as a surgeon during war, but my mom would never allow him to until this year because of my brother and I.  Although I’m pretty sure he really wanted to do it in order to feel like a doctor from the old show M*A*S*H. The increase in technology has also helped many organizations reach out to a much larger population of people to promote their missions.  I believe the media has also brought an increase in awareness to international issues and aid as well.

I really enjoyed the video segment of Ngozi Okonjo-Iweala presentation on aid versus trade.  She stresses the importance of building a platform in Africa in order for the people to create businesses and institutions.  She pointed out that 62% of population is below the age of 24.  This shows that our focus needs to be on how the African youth are going to be engaged to create jobs and a productive environment within the country.  She also stresses how the voices of the African people and their needs need to be heard. She points out that the main issue of aid versus trade is how does Africa engage partnerships with government, donors, the private sector, and ordinary African people, in order to take charge of their own lives to move the continent forward and begin employing the people.  She suggests that an opinion research organization within Nigeria should be implemented in order to begin asking the people what they want and what they are currently not being providing for daily living.  Regardless, there is a need for some type of program in order to solve problems and stabilize the economy to help establish a platform for the African people to build upon.

I also really enjoyed William Easterly’s video on foreign trade and thought it tied well with Ngozi Okonjo-Iweala’s presentation.  They both want to help Africa out of poverty and see the importance of the foreign aid that Africa receives.  Yet they also know from experience that this money and aid needs to be used efficiently and distributed to appropriate places.  William Easterly has a desire to change the foreign aid system for Africa because ultimately he wants that aid to reach the poor.  He talks about how foreign aid many times is hosted on them.  Most poor people will not complain or return any free aid given to them, even if they are not getting the right aid they are looking for, such as clean water, immunizations, or mosquito nets.  There is no system that gives people the incentives or accountability to make sure that the aid is given to the correct people or that the aid given is what they truly need, because there is also no incentive to ask.  Like Ngozi Okonjo-Iweala said, their needs to be some sort of system to stabilize the economy and foreign trade.  Receiving aid is wonderful, but how it is used is what’s important.  William Easterly believes that just giving money isn’t going to help end poverty within Africa, some sort of system needs to be implemented within the economy to help them grow and use the aid given to them efficiently.

I found another video, which also discusses many of the topics addressed within the William Easterly and Ngozi Okonjo-Iweala videos.  The video is an interview with Nobel Peace Prize winner Wangari Maathai and author of “The Challenge for Africa”.  She illustrates the importance of having a system in which foreign aid is distributed within Africa and how money alone will not help Africa and its people grow.  To read more visit the site: http://www.youtube.com/watch?v=i0Mc7U2ycik&feature=relmfu.

Mercy corps gave a good illustration to how nonprofits operate.  Countries around the world continue to experience daily struggles and help is always needed.  I think it’s great that the Mercy Corps offers resources to communities in need of assistance and also helps them use the resources provided to the fullest.  Providing resources to communities in need is so important because in many cases people are just unaware of the help they could be receiving or what they could be doing in order to improve and better their lives.

I think the Millenium Development Goals have a good plan for tackling extreme poverty.  Poverty is an important issue to address and something that never fully go away and our focus should never stray from it either.  I think it’s great that the MDG have such high expectations, but they seem very unlikely.  It will be interesting to see once it is implemented within different areas and results are collected over time.  A lot needs to be put into the MDG in order for their goals to be achieved nationwide.

I started by reading the book. It was interesting but nothing stated nothing that stood out to me much except for the role our government is taking. It talked about how funding for international aid has gone down in the past few decades. It said that only .25% of our federal budget goes into foreign aid and that many other nations are giving more in terms of the percent of their GDP they are giving. I don’t really know what to make of this. It is hard for me to formulate an opinion on this because I see what a bad place our country is in right now, but on the other hand I see how much worse other countries are. Then I watched the”trade vs. aid” video where Ngozi Okonjo-Iweala. It was in my opinion the best part of this weeks reading/watching material and she brought up so many interesting points that sort of helped me formulate an opinion of how I think foreign aid should be distributed and what role I think our government should have. She talked about how Africa needs to accept aid, not be ashamed of it, but that they need to use it as a catalyst not a crutch.  She talked a lot about how aid money doesn’t always have the people’s interests in mind. People don’t listen to what they need and want and that make their giving less effective. She also talked about how many young people their are in Africa and how they need to be educated because they are the ones that can make big long term changes for the future of their continent. One big topic of the speech was infrastructure and how important if was for the country and how she wishes that people who were contributing aid would focus on that because without proper roads/highways, water, and all other types of infrastructure the aid they are giving isn’t very sustainable. Discipline was another thing that she highlighted in her speech which really hit me. I’m not trying to say the people of Africa are not disciplined or something and I don’t think that is what she was either, it’s just that the people need to take ownership in their own development and it needs to be a movement of the people not just a bunch of outsiders funneling aid money into the countries. I think this is key. We, as the ones providing aid, need to make sure that we are providing aid to the areas that are most important to the people and can provide sustainable growth over time. I took a class last term called politics of development and basically we just spent the term looking at all the ways in which countries have developed and how the United States/other developed countries have helped and hindered this development. I walked away from the class usually feeling disappointed because there is not really a “right” and “good” way to encourage development but I think that discipline that  Ngozi Okonjo-Iweala was talking about is key. She also talked about the important of private companies investing and how much help that can be for an underdeveloped country. She suggested that aid money be used as a safety net for investors who were afraid to take the risk of investing in Africa. I think this is a great idea except that I don’t think that businesses have the interest of the people in mind and are usually trying to exploit the workers in some way. Maybe this is an area that a nonprofit could step in. I’m not sure how, but I think it would be possible.

The next thing I read was the William Easterly article/video about why foreign aid fails. This was good to read and brought up the fact that a lot of aid money intended to directly help people doesn’t end up in the right hands. He also talked about how the people recieving aid don’t have any say in the process. They might see a way that the money could be used to help more or they might want to say that they aren’t even getting any of the aid money intended to them because their is no feedback system in place and no accountability for the money. People give and feel like they have done their part but don’t stay to see what really happens. There isn’t a lot of incentive to investigating where the money goes and its effectiveness.

I then looked over the Mercy Corps website and it looks like they are doing some great things overseas. I also looked at the Millennium Development goals and I thought they were all great, even if it doesn’t seem to me like they are all attainable to me by the year 2015.

I was surprised to read that out of all 21 donor nations in the Organization for Economic Cooperation and Development, the United States donates the least and that only .25 percent of the federal budget goes to foreign aid. The book relates this back to our historical isolationist roots but I found it to be shocking nonetheless.

While a few of the readings offered a more positive insight into international nonprofits, the William Easterly blog offered another perspective. It was interesting to read about his view and experience working abroad and how money isn’t always directed toward those who need it in the most effective ways. He also discussed the fact that people in need aren’t directly talked to about what they need or what would be beneficial to have. While any kind of giving is appreciated and necessary, it seems as though a better system of giving could be enacted to ensure that the money and resources are going being directed towards what is most necessary and vital for each group. I think that nonprofit groups that offer a more specific kind of aid are more beneficial than simply allocating money.

The aid versus trade video also offered another perspective to the foreign aid argument. After watching the video, I read the comments to see what others thought of it. One individual mentioned that as long as there are corrupt leaders in power, foreign aid will be used toward accomplishing these corrupt agendas. This demonstrates further the fact that international nonprofits should use their resources to directly help those in need, instead of giving money to these corrupt governments.

The article that discussed the Millennium Development Goals was also interesting. While it would be excellent if the goals could be accomplished by 2015, it just doesn’t seem feasible to me. I believe that the priorities of those in power do not adequately align with the predetermined goals. Although from reading the article it seems as though some steps have been made and any step in that direction is a beneficial one.

Finally, the Mercy Corps website offered an excellent view into how an international nonprofit operates. It was interesting to read about their developments in other countries as well as the kinds of struggles these countries are facing. I really like what the Mercy Corps strives to accomplish. It offers resources to communities in need and assists them in utilizing these resources. I feel that assisting with the utilization of resources is vital and should be a part of all donation processes.