The Foundation: A Great American Secret; How Private Wealth is Changing the World [Hardcover]

Joel L. Fleishman (Author)

Book Description

Publication Date: January 9, 2007

Foundations are a peculiarly American institution. They have been the dynamo of social change since their invention at the beginning of the last century. Yet they are cloaked in secrecy— their decision-making and operations are inscrutable to the point of obscurity-leaving them substantially unaccountable to anyone. Joel Fleishman has been in and around foundations for almost half a century...running them, sitting on their boards, and seeking grants from them. And in this groundbreaking book he explains the history of foundations, tells the stories of the most successful foundation initiatives—and of those that have failed—and explains why it matters. The baby boomer generation is going to participate in the largest transfer of wealth in history when it passes on its assets to its successor generation. The third sector is about to become more powerful than ever. This book shows how foundations can provide a vital spur to the engine of the American, and the world's, economy—if they are properly established and run.

Editorial Reviews

From Publishers Weekly

In his first book, law professor and philanthropist Fleishman has created a thoughtful, engrossing, comprehensive guide to the origins, initiatives, successes and failures among the largely unsung 68,000 private foundations in America, which together grant over 32.2 billion tax-exempt dollars per year. Tracing the history of this distinctly American institution, Fleishman considers the philanthropy of such financial titans as Andrew Carnegie, George Soros, Warren Buffett, Michael Milken and Bill Gates. Fleishman's view of the foundation is distinctly favorable: foundations serve a vital social function by providing seed funding to innovative initiatives, having led to such benefits as the 911 emergency response system, the development of the Pap smear, the alleviation of poverty in Bangladesh and the establishment of Johns Hopkins and Carnegie Mellon Universities. Fleishman doe not hestitate, however, to criticize foundations for arrogance, poor planning, unresponsiveness, waste and irresponsibility, using 12 case studies-Rockefeller's Population Council and the Children's Television Workshop among them-to set the stage for "Some Not So Modest Proposals," most of which involve increasing transparency and accountability. Fleishman's efforts prove an illuminating guide to a little-examined aspect of the American tradition.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

Review

"Any budding philanthropist who aspires to make a better world...should read Joel Fleishman's wise book." -- The Economist, January 27, 2007

"In `The Foundation'...Joel L. Fleishman penetrates this opaque culture." -- Bloomberg.com

"Passionately and persuasively, Fleishman makes the case for greater accountability." -- Baltimore Sun, January 7, 2007

"Satloff lifts a veil on the Holocaust in North Africa." -- Toronto Globe and Mail, January 6, 2007

"This book has an important role to play by educating the public and encouraging foundations to become more accountable" -- San Francisco Chronicle, January 7, 2007

"a thoughtful, scholarly, complete discussion... Must-read for staff and board members of non-profits and for anyone running for public office." -- Fayetteville Observer, May 13, 2007

"a warm, loving tribute to the large foundations, their donors, and their chief executives." -- The Nonprofit Quarterly, Spring 2007

"he has been engaged in a lifelong `lover's quarrel' with foundations. His book is a form of tough love." -- The Wall Street Journal, January 11, 2007

See all Editorial Reviews

Product Details

• Hardcover: 384 pages
• Publisher: PublicAffairs; 1 edition (January 9, 2007)
• Language: English
• ISBN-10: 1586484117
• ISBN-13: 978-1586484118
• Product Dimensions: 9 x 6.4 x 1.1 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 4.8 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #522,352 in Books (See Top 100 in Books)

More About the Author

Joel L. Fleishman is professor of law and public policy at Duke University and the author of The Foundation. He has served as president of the Atlantic Philanthropic Service Company, the U.S. program staff of Atlantic Philanthropies.

Customer Reviews

Most Helpful Customer Reviews

30 of 30 people found the following review helpful:

5.0 out of 5 stars Deserves serious reading from people who want to make a difference., February 5, 2007

By 

D. Stuart "Researcher at Kudos" (Auckland NZ) - See all my reviews

This review is from: The Foundation: A Great American Secret; How Private Wealth is Changing the World (Hardcover)

Joel Fleishman's book lays an excellent bedrock of history underneath its discussion of philanthropy as a great element of American tradition. We live in days of some staggering examples - from Warren Buffet's living bequest of billions, to the fine work of Bill and Melinda Gates - and many others. But rather than see this as some product of the new millennium - Fleishman shows how the new avatars of corporate generosity are following a fine tradition. More than this, the author shows that certain gifting strategies have been leveraged for huge social benefit. For those who are thinking - at whatever scale - of giving to support a cause, this book sets out the strategies that have produced most benefit. This is an excellent, thoughtful piece of work on a topic that currently has wide currency. Well worth reading.

13 of 14 people found the following review helpful:

5.0 out of 5 stars Examining a Big but Little Known Area, March 8, 2007

By 

John Matlock "Gunny" (Winnemucca, NV) - See all my reviews
(REAL NAME)   

This review is from: The Foundation: A Great American Secret; How Private Wealth is Changing the World (Hardcover)

Foundations are a subset of Non-Profit organizations that have become surprisingly big busines in the United States. Somewhere around 1/7th of the business in the country is conducted by these organizations. Somewhere around 1/9th of the workforce is employed by one. They have become an integral part of the American economy.

In this book Mr. Fleishman looks at Foundations (a number of which he has been associated as employee, trustee or some other capacity). He examines what makes a foundation successful, and how some have failed. He offers insight and advice on how to make a foundation more successful, and at the same time how foundations should have an obligation to become more accountable since they received special tax considerations from the Government. He suggests that this accountability should be done by the foundations voluntarily. However, Mr. Fleishman is an attorney and believes that if voluntary response is not forthcoming then new legal requirements should be placed upon them to require more openness.

16 of 19 people found the following review helpful:

5.0 out of 5 stars ESSENTIAL Primer, the Good, the Bad, and the Recommended, October 18, 2007

By 

Robert D. Steele (Oakton, VA United States) - See all my reviews
(TOP 500 REVIEWER)    (HALL OF FAME REVIEWER)   

Amazon Verified Purchase

This review is from: The Foundation: A Great American Secret; How Private Wealth is Changing the World (Hardcover)

This is a very helpful book, indeed, a unique book. Here are some of the notes I took. As one of 24 co-founders of a new 501c3, the Earth Intelligence Network, created to provide decision support to foundations, the United Nations, NGOs, and others seeking to address the ten high-level threats to Humanity, I could not have found a more relevant work.

A few notes:

* Foundations are the dynamo of social change, with three roles varying from foundation to foundation: as driver, as partner, or as catalyst.
* The author is very critical of the general state of mismanagement and in some cases, lack of clear ethical guidelines or stated values, and says the field must do better.
* In his view, and his case studies bear this out, foundations are an enormous force for good, but they are unregulated, unaccountable, and if they are to retain the tax breaks and the trust of the people, they must change their process, their governance, and their attitude--this will, in the author's words, strengthen the social contract within which they are given so much leeway.
* He states that foundations *need* a decision-making process (music to my ears) and also a progress-checking system.
* He clearly communicates the willy-nilly state of many foundation programs, their lack of boundaries and focus, and hence their relative lack of impact. He states that many underperform, are insulated, and are arrogant.
* A positive quote (the book is generally positive and constructive) from page 3: "Foundations enable the creation of countless civil sector organizations--groups dealing with human rights, civil liberties, social policy experimentation, public advocacy, environmental protection, knowledge generation, human capital building, and service delivery, among other causes--and assist them in building national, regional, and local constituencies that move into the forefront of continuing social change. Elsewhere in the book he points out that in many areas, foundations preceeded and inspired later government programs.
* He is careful to point out that foundations have had limited success with education, health care, and poverty, and that in the face of global challenges (e.g. the ten high level threats to Humanity) the best they can do is educate the public and press government for action. I disagree. If foundations could collaborate with the United Nations UN) and leverage the Multinational Decision Support Center (MDSC) that we are trying to create in Tampa, Florida, they could among themselves agree to take on specific elements of a $230 billion a year program that Medard Gabel has been researching for ten years.
* He points out that US foundations take in 1.1 trillion a year in revenues, but only dole out $33.6 billion a year. In my view, given the enormous value of preventive action, I believe the foundations should be required to dole out 20% of their endowment in the first year of a concerted global program, and then so much as to keep the endowment steady, not hoarding and growing.
* While the "overarching objective" of foundations is large-scale social change, the author notes that they are peripheral players *unless they can organize and catalyze in the aggregate--precisely what the UN and the MDSC could help them do.
* He laments the current lack among most foundations of the "scientific method" that the Carnegies and Rockefellers first imposed, to wit: 1) get the facts; 2) identify problems precisely; 3) study options for action; 4) identify supporting and opposing stakeholders; and 5) plan for action. He blames the predominantly academic leadership of foundations today for the loss of "business" rigor and focus.
* The bottom line in this book appears with regularity in these pages: without goal setting and progress measuring, most foundation programs are simply arbitrary give-a-ways. He admires the Carnegie "Appraisal List" as a good starting point. He points out that neither inputs nor outputs matter; what matters is outcome.
* He lists all that ails foundations, a list that includes arrogance, discourtesy, inaccessibility, arbitrariness, failure to communicate, foundation Attention Deficit Disorder, lack of accountability, invisibility, scholarly void, and political vulnerability.
* The balance of the book consists of chapters that are extremely helpful, and here to whet the potential buyer's interest, I will simply list five core aspects of the book.
* Strategies and practices include (with subheadings not shown here):
* Creating and disseminating knowledge
* Building human capital
* Public policy advocacy
* Changing public attitudes
* Changing the law
* Creating a blue ribbon commission
* Offering an award or prize
* Building a model through a pilot program
* Financing litigation
* Building institutions
* Building physical plant
* Catalyzing partnerships among foundation
* Catalyzing partnerships with the for-profit sector
* Ways of recognizing impact include:
* Major benefits to the public
* Expansion of knowledge
* Helping to launch a movement
* Catalyzing an urgent social change
* Taking an initiative to scale
* Characteristics of high-impact programs (with much detail for each):
* Focus
* Alignment
* Due diligence about the problem
* Due diligence about the solution
* Intelligent talent selection
* Due diligence about prospective grant-receiving organizations
* Entrepreneurial riskp-taking
* Optemistic thinking
* Independence
* Effective grantee selection and management
* Long-term thinking and commitment
* Maintaining focus and alignment over time

There is a chapter on how foundations fail, and certainly this entire book, and especially this chapter, need to be read by any foundation executive--or any prospective donor to any foundation.

This is a truly great and helpful book. I put it down thinking to myself, "my goodness, not only does the United Nations need an Assistant Secretary General for Decision Support, but so also do the foundations in the aggregate." Worthy book!

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