JTA: The Global News Service of the Jewish People

Loose change: Gates gives $75 million to end hunger, Dylan donates tour proceeds to charity, Adelson

By Jacob Berkman · September 24, 2008

For a dying philanthropy world, it sure seems like a lot is going on... I want to know more about Philanthropy, the clothing boutique set to open in San Fran that will donate all of its proceeds to local charities. Find the link below:

• The biggest news of the day: The Gates Foundation is giving $76 million to start the World Food Program, which will try to increase the incomes of 350,000 micro-farmers in 21 countries, including 15 in sub-Saharan Africa, according to the Washington Post.
• The biggest Jewish-ish news today: Google will award $2 million grants to five social entrepreneurs.
• The Senate passed a bill Sept. 23 that would extend a provision allowing Americans to get a tax break for giving money to charity from their IRA funds, reports the Chronicle of Philanthropy.
• The Economist asks what will happen to philanthropy while "Wall Street is Burning."
• In southern New Jersey, the incoming president of the Jewish Federation of Southern N.J. is concerned about the economy, which has already forced increased need for the area's Jewish Family Service and other agencies.
• The Whitney Museum received approval from the City Council of New York to build a $680 million expansion on Gansevoort Street, the New York Sun reported. Leonard Lauder, the brother of World Jewish Congress president Ronald Lauder, said in March that his art foundation would donate $131 million to the expansion, the largest donation in the museum's history.
• The Hess Corporation, the oil company started by the son of immigrant Russian Jews, Leon Hess, will give $3 million to Hurricane Ike relief.
• Meanwhile, Sheldon Adelson has given $750,000 to Newt Gingrich's group to promote off-shore drilling, according to the Center for Public Integrity.
• Bob Dylan will donate the proceeds of his upcoming Canadian tour to charity.
• The Fred Jahn Gallery has given the Israel Museum 59 prints by contemporary artists Franz Hitzler, Barry Le Va, Fred Sandback, Rudi Troger, and Hermann Nitsch.
• The Schwab Charitable Foundation, which has more then $2 billion in assets and gives away some $350 million per year, is jumping into the micro-finance world and will be giving $20-30 million in loan guarantees in 25 developing countries, Schwab announced.
• Smaller donors in England may be cutting back, according to the Third Sector Online. A recent survey of about 2,000 Britons, showed that half of those queried would cut back their charitable donations if the credit crunch continued.
• A charitable Challah baking project continues in Bennington, Vt., after its founder Joe Madison died, reports the Berkshire Eagle. (The story includes Joe's recipe for Challah.)
• A secondary school in Ontario shot down a $5,000 gift that a gun club wanted to give its drama department, according to the Ontario Free Press.
• Charles Winograd, the CEO of the Royal Bank of Canada, will retire effective Oct. 31, reports Bloomberg News. According to this press release from RBC, Winograd is active with the Canadian Council for Israel and Jewish Advocacy and the UJA Federation of Greater Toronto.
• Philanthropist, a boutique that will donate all of its profits to charity, will open in San Francisco this fall.
• Is philanthropy consumption or investment asks the blogger at Philosopher 2.0.
• Myspace and Paypal are joining forces to encourage online giving. Myspace users can place a widget on their page that will allow viewers to give a donation to a charity of the page holder's choice. Those who raise the most money per week will win prizes.
• And on a heavier, creamier note, if you need a tasty treat to take your mind off of your non-profit's economic woes, go get a free ice cream on Cold Stone Creamery, which will be giving away free scoops all day Thursday Sept. 25, and also collecting donations for the Make a Wish Foundation.

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Adelson drops 12 places on latest Forbes list

By Jacob Berkman · September 24, 2008

Bloomberg news has a piece about the hit that Sheldon Adelson – he who has pledged and given nearly $100 million to Birthright Israel – is taking in the market.

Adelson, who made his billions in the gaming industry as the president of the Las Vegas Sands Corporation, shot up to number three on the Forbes 400 list two years ago. Largely based on Adelson's massive investment in building casinos in Macau, China, Sands stock shot up to about $150 a share in 2007, and it was estimate that at one point Adelson was making around $1 million an hour.

At the time, many thought that the gaming industry was recession proof. But when the economy started to tank and the cost of flying and traveling shot the moon, American casinos went craps. Adelson's stock dropped significantly, but many still believed in Sands because they felt that Macau, with China's new riches, would endure.

Apparently not, says Bloomberg:

One measure: Adelson was the biggest loser in this year's Forbes ranking. The Las Vegas Sands Corp. chief executive officer fell to 15th place from third after casino stocks tumbled. Another: Vegas Strip casino gambling revenue dropped for the seventh straight month in July as cash-strapped U.S. consumers curbed entertainment and travel spending. Revenue declined 15 percent in July alone....

Macau's casino gambling revenue rose 55 percent in the first six months of 2008, accelerating from 47 percent growth in 2007.

Will Macau suffer Lehman's fate – a place oozing confidence a year ago that has now gone bust? It's doubtful, yet the risks suddenly facing Macau tell a few bigger stories.

Could this explain why Adelson has cut his donations to Birthright?

In a year and a half, starting in late 2006, Adelson gave $65 million to the organization that takes Jews in their late teens through mid-20s on free trips to Israel. But his latest gift to Birthright, which was announced last week, was a $30 million grant to be given over two years.

Hard to complain about $30 million, but it is a significant cut.

Those close to Adelson and Birthright tell the Fundermentalist that the billionaire is not freaked by his shrinking cash flow, but instead he feels that he has brought Birthright up to scale, and now it is time for others to pick up more of the tab.

Meanwhile, Forbes came out with its annual list of the 400 richest Americans last week – and Adelson dropped from number 3 to number 15.

Here is the Adelson entry:

Rough year for Sin City's richest man. America's 3rd-richest man last year has seen fortune dwindle by $13 billion; shares of his Las Vegas Sands (nyse: LVS - news - people ) casino company have fallen 65% since last October as gamblers stay home, Wall Street falls out of love with Macau. Cabdriver's son borrowed $200 from uncle to sell newspapers at age 12. Created computer industry's marquee event, Comdex, mid-1980s; sold show to Japan's Softbank for $862 million 1995. Built $1.5 billion all-suites Venetian Resort Hotel Casino and the 1.2-million-square-foot Sands Convention Center 1997. Enticed conventioneers to Sin City midweek, took emphasis off gambling. In January opened $1.9 billion Palazzo resort next to nemesis Steve Wynn's Wynn Las Vegas. Unveiled $2.4 billion Venetian Macau in China last August; 10.5-million-square-foot mega-resort features 3,400 slots, 800 tables, 3,000 suites and a convention center. Owns Israeli newspaper Israel Today.

The good news for Birthright and the Jews?

There are plenty of Jewish names who moved up on the list. Here are some of them, with links to their entries on the Forbes list:

• #3 Larry Ellison, of Oracle, is worth $27 billion.
• #8 New York City mayor Michael Bloomberg is worth $20 billion.
• #11 Dell CEO Michael Dell is worth $17.3 billion.
• #13 Google co-founder Sergey Brin is worth $15.9 billion.
• #14 Google co-founder Larry Page is worth $15.8 billion.

And these are just the guys who rank ahead of Adelson now. I'll go through the list more thoroughly later in the week. For now, let's just say there are plenty of opportunities out there for Jewish fund raisers ...

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FUNDERMENTALIST TV: How is the economic crisis impacting Jewish startups?

By · September 24, 2008

Guest post by Editor Man

The Fundermentalist dives into the world of video (if he seems a little stiff, that's because someone at the Slingshot party slipped him some Kryptonite) ...

4 Comments | Share This | economy, Fundermentalist TV, fundraising, gifts |