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Archive for December, 2009

Extreme Poverty is Close to Home

Monday, December 21st, 2009

I’ve long had the opinion that we don’t face much in the way of extreme poverty here in the United States, which is why the One5 Foundation has focused on the problems in Africa and Haiti.

But, I never really found out the facts first-hand about domestic poverty, so I decided to do some exploring. I recently sought out homeless shelters in Kansas City and places where the homeless go for meals.

What I discovered was eye-opening and the implications will certainly influence what we do within the foundation. We’re not going to abandon anything that we’re doing in Africa and Haiti, but we will probably augment that work right here in Kansas City because there certainly is a need.

I saw people living in creek bottoms and in wooded areas near downtown. It was well below freezing, but they were living in outdoor camps. I always felt that people didn’t really have to live in such conditions, but it was their choice. I discovered something very different. The ones that I talked with seemed to be normal articulate people; but something happened in their lives that put them there.

These individuals have no identity in our society. They are without Social Security numbers or birth certificates. They have no hopes of finding a place to live, let alone a job. Consequently, they are in desperate straits that they can’t escape without outside help. And the limited help that is available is often difficult to access.

I visited with one group that is trying to make a difference for homeless individuals in the Kansas City area – the Hope Faith Ministries.  The Hope Faith Ministries attempts to help these desperate people obtain an identity, set them up in apartments with a mailing address and give them clean clothes so they can ultimately start the process of qualifying for jobs.

These are people who deserve compassion; it is unfair to say that they are where they are because of their own choices. Obviously, many are struggling with addictions and alcoholism and the Hope, Faith Ministries is also working to get them into programs that address those problems.

So in the future look for the One5 Foundation to develop strategies to fight homelessness and poverty right here in our own community. Our overall strategy will be the same – not to give a man a fish, but teach him how to fish. Our focus will be on promoting health, so they can eventually feed themselves.

Doing Good While Earning a Return

Monday, December 7th, 2009

The Wall Street Journal on Nov. 9 ran an interesting article about new ways that philanthropists are employing to extend the value of their contributions. I encourage you to read it because it explains the approach the One5 Foundation is using in our work in Haiti and Malawi.

The article states, “Instead of simply giving money away to a cause, groups and individuals are plowing their funds into financial vehicles—known as program-related investments—that let their money grow while it does good. So, rather than make a one-time gift of $1,000, they might invest in a project that generates revenue, such as a loan to an entrepreneur in the developing world or real estate that rents to nonprofits. The returns can then go to other causes.”

In light of the economic downturn many donors would rather see their money go directly to the causes they support, rather than to the investment portfolios of foundations, where their donations can diminish when the value of the investments fall in a volatile market. While large corporate donors have used such program-related investments in the past, today more and more individual philanthropists are following suit.

“And lots of options are springing up to help donors along, from specialized donor-advised funds to opportunities to invest in microfinance and community development,” the article states.

The One5 Foundation has a mission to target children’s health in developing countries and a focus on the top five diseases that afflict them. It is right in line with these new philanthropic trends noted in the Journal. We are establishing our own micro-financing operation and have partnered with the NCM/C3 Global Growth Fund to encourage individual initiatives on the ground in the developing world. This provides a greater opportunity for entrepreneurs to get involved and to invest in developing new businesses. Through investment funds we can make the financial resources available for local businesses to develop and grow.

In this way, people who can only invest a few hundred dollars can direct their investment to an individual in Haiti or Malawi with a good idea who can build on that small investment. They can even get their investment back at a specified time or use it for more good work.

Even in these challenging times, a small investment can result in a world of good.