Article: Corporate America Needs to Increase Donations

Corporate America Needs to Increase Donations

BY IRA LEESFIELD - Special to The Miami Herald

I recently read a social commentary that posed the question: Are foundations

incapable of driving substantive social change?

The piece suggested that bureaucracy is preventing even the most powerful foundations from initiating progress.

It's easy to write off this opinion with Americans donating in record numbers. Last year, we emptied our pockets to the tune of more than $306 billion, a 4 percent increase over 2006.

But while the extent to which we're giving is clear, the extent to which we're making a difference is not. Poverty rates are rising, and more people lack health insurance. And with food prices skyrocketing, millions of Americans are struggling to put dinner on the table.

Ironic, given our record-level support for charitable causes? Yes.

Surprising? Not really.

The question remains: Can our donations make a significant impact?

Before answering, I want to tell a story. One day, a few thousand starfish were washed ashore. That afternoon, a boy was busy walking up and down the beach tossing starfish, one by one, back into the sea.

At dusk, an older man walked by and said, ``Son, there are so many starfish out here. Your efforts aren't going to make a difference.''

Determined, the boy picked up another starfish and threw it back. ''It will to that one,'' he replied.

Following that story, it's no surprise that my answer to the question above is ''absolutely.'' Though our collective impact is being diminished by rising costs and growing numbers of people in need, there remain countless opportunities to make a difference.

A decade ago, charitable organizations relied heavily on the government for support. Today, despite the presence of twice as many qualified programs, there are fewer government dollars to go around, leaving charities squeezed by the economic slowdown.

How are we filling the gap?

For starters, we're giving more. Last year, 75 percent of all charitable dollars in the United States came from individuals -- up about 3 percent over 2006.

Private foundations are also contributing, accounting for nearly 13 percent of our nation's charitable gifts. Some of them have recognizable names: Gates, Heinz, Mellon and Knight. But large foundations aren't the only ones making a difference.

Across America, small foundations sponsored by religious organizations, sports teams and families are supporting initiatives ranging from after-school care and education to food banks and job training programs.

In the mid-90's, my family and I started The Leesfield Family Charitable Foundation to fund programs that enhance the lives of people in South Florida and beyond. Since then, we have awarded more than $1 million in scholarships and donations.

Last month, we presented a $2,500 scholarship to Pedro Salim, a student at Florida A&M University's College of Law. This scholarship will go a long way toward helping Pedro realize his dream of graduating from law school -- covering about 25 percent of his annual education costs.

I didn't offer this example because of the gift's size; $2,500 may make a big difference in Pedro's life, but it's a drop in the bucket in the quest to cure cancer or build a children's hospital. I used this example because it illustrates the impact that a relatively small amount of money can make.

With the economy continuing its downward spiral, the question is not whether the number of organizations and people in need will rise. Rather, the important question is: What are we doing to help?

Individuals and foundations are doing their part, accounting for almost 90 percent of our nation's charitable gifts. Meanwhile, giving among public and private corporations -- including some of the world's most successful companies -- makes up just 5 percent.

Whether it's setting up a foundation, partnering with a charitable organization or simply encouraging employees to spend an hour each month volunteering, it's time for corporate America to step up.

And it doesn't take much to make a real impact. Just ask Pedro Salim.




LEESFIELD & PARTNERS, P.A.
2350 South Dixie Highway
Miami, Florida 33133
Telephone: 305-854‑4900
Toll Free 800‑836‑6400
Facsimile: 305-854‑8266
E‑mail: Info@Leesfield.com

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