Harvard v. The Generation Project: A Comparison

Monday, 12 October 2009 14:46 by Eli Savit

Apparently Harvard University--even with its $26 billion endowment--has fallen on some tough times.  Last week, the New York Times ran a story that noted some of the tough decisions Harvard has made lately, including reduced availability of hot breakfasts and no more cookies at faculty meetings. Today comes word that Harvard has opened up bidding on naming rights.  With prices starting in the low five figures, Harvard is offering you the opportunity to name venerable parts of the institution after yourself!

So, if you've always dreamed of the Harvard Law School reading room bearing your name, and if you've got $10,000,000 laying around to pay for it, now's the time to go for it.  But if you're a little hard-up right now, check this out: The Generation Project offers naming rights on ALL your gifts to kids in low-income areas--regardless of the price.  

Don't believe us?  Check out the screenshots below from our gift creation application, replete with fake gifts from two people who have been in the news lately.  (My fellow Michigan football fans will recognize the shoelace reference, the rest of you can educate yourselves here).

 SAMPLE GIFT #1:

 I mean, he's got $1.4 million to give to charity, right?
 
SAMPLE GIFT #2: 
 

 

So, yeah. Why not login to our community section and design your own gift today?  It may not be as prestigious at a gift to Harvard, but it can be cheaper, will still bear your name, and will go directly to kids who really need it.  And, who knows?  Maybe your gift will end up making the difference in a kid's life, setting her on the path to Harvard.  

(Or Princeton, I guess, if cookie consumption by faculty is a factor in her college decision).  

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Students Respond To Monetary Incentives. Economists: "Duh."

Wednesday, 5 August 2009 10:03 by Eli Savit

The New York Times reports today that a program offering students up to $1000 for performance on Advanced Placement (AP) tests is showing signs of success.  Students in the program take the tests more frequently, are passing the tests at a higher rate, and are availing themselves of optional Saturday tutoring sessions geared towards AP subjects.   The results only cover the 2008-2009 school year and the program is relatively small (31 mostly minority schools participate) so the sample size is obviously limited.  Still, the results are a positive sign for those who think that student achievement can be raised through tangible and/or monetary incentives.

The notion that "people respond to incentives" is a basic principle of economics, but, as this blog has discussed previously, it is a relatively controversial proposition when the "people" involved are K-12 students.  But I think these criticisms will largely fall by the wayside if we start seeing more broadly-based success stories.  For all the money that is spent on motivating students to achieve in certain scholastic areas, offering kids incentives is probably one of the most cost-effective ways to realize whatever vision one might have for education.  After all, kids tend to have less money than adults, so a $1000 incentive is likely to mean a lot to a child.

Indeed, directly incentivizing student achievement allows individual donors to foment widescale educational change.  Last spring, we highlighted one of our donors who had an entire school competing to win $250 in prize money by writing the best essay on the Israeli-Palestinian conflict.   Many of our donors have since pledged gifts that incentivize things like college preparedness, social entrepreneurship, social studies achievement, career planning, or (as we highlighed in a blog post about our Chicago launch event) recognizing the importance of passing the basketball.  (Sign up or login to view these gifts).  

Part of our mission is for individuals at all income levels to change the face of the educational philanthropic landscape. My guess is that direct incentives to students will play a large role in the fulfillment of that mission, and will play an outsize role in the future of charitable giving.

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On Unithrive and Personal Connections

Friday, 19 June 2009 18:37 by Eli Savit

We try not to blog too much about our competitors in the philanthropic "industry" over here at The Generation Project, because:
a) writing really nice things about other worthy charities out there might convince you to use your philanthropic dollars elsewhere, and that's not a great business model; and,
b) writing really mean things about other charities out there ("The Red Cross is wack, yo!") is cold-hearted and wrong.1

That said, we thought that the recent New York Times feature on Unithrive.org warranted some comment. Unithrive is a new organization that allows alumni of certain universities to make interest-free loans ranging from $50 to $2000 to students who attend their alma mater.  As the Times points out, Unithrive's potential appeal derives from the fact that "alumni will have a personal connection to current students."  That whole "personal connection" thing is all the rave in the non-profit world these days--check out, for example, Kiva.org, or this really cool educational charity that gives you complete creative control over your donation dollars

What makes Unithrive different--and what I believe will ultimately make it so attractive--is that lenders through their site essentially have a double layer of personal connections.  Not only are Unithrive lenders helping out unique, discrete human beings, they are helping out a unique, discrete human beings who attend their alma mater.  And people already give money to their alma maters in droves.  Acccording to Giving USA, the vast majority of education-related charitable giving in the United States is earmarked for colleges and universities.  Because personal connections are such a magnetic force in charitable giving, I have no doubt that Unithrive will be a great success.

I do hope, though, that Unithrive will rethink its model slightly, and allow its lenders to give to students regardless of whether they attend their alma mater.  Although I'd imagine that most lenders will still earmark loans for students that attended their college or university, Unithrive could also potentially serve as a site for, say, a Harvard-educated lender to make a personal connection with a struggling student at Berea College.  Personal connections are the driving force of philanthropy, but innovative organizations like Unithrive should seek to boldly forge new  connections, not simply piggyback upon those that already exist.  My sneaking suspicion is that people with money often give to their alma maters precisely because they are the only charitable organizations to which they feel a personal connections, but perhaps people can find a more meaningful experience--and get more bang for their their philanthropic bucks--if they are aware of the many worthy causes out there. 

On a related note, Greg Easterbrook--whose Tuesday Morning Quarterback column is one of the great pleasures of football season--has written great stuff on the absurdity of people giving to universities that have massive endowments, while many smaller, languishing colleges and universities struggle for adequate funding.  I'll simply close this post with a link to his thoughts on the matter, provocatively titled: Rich people, stop giving to Harvard! 

 


1. For the record, our official position is that you should give liberally, to whatever causes you choose, and we hope that you choose to give to high-need K-12 students, through us.
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Money To Pay For Stuff Is Good, And Other Statements Attributable to Captain Obvious

Thursday, 26 February 2009 11:52 by Eli Savit

The New York Times has a story out today about the amazing fundraising efforts of parents and community members in several Long Island school districts.  After cuts to the districts' budgets threatened schools' extracurricular activities and sports teams, the Long Island communities rallied in support of their schools and raised upwards of $1 million dollars to save the threatened programs from the chopping block.

But in these gloomy economic times, such success stories are tempered with a heavy dose of pessimism.  The Times piece is replete with takes on the sustainability of private donations to schools, with quotes from school officials warning that "given the difficulty and magnitude [of the fundraising campaigns], they can only be substantiated for one year and are unrealistic as a recurring source of revenue."  So, the story concludes, fundraisers and foundations cannot replace government cash in private schools. 

On the obviousness scale, the notion that "public schools rely on public money" ranks somewhere between "if you eat fewer calories, you will lose weight" and "living with grizzly bears is a bad idea."  And, although The Generation Project seeks to expand community involvement in public schools, nobody here thinks that private donations can be systematically relied upon to make up for massive budgetary shortfalls.  But let's not minimize the positive impact these Long Island parents had. It's inspiring to see community members rally behind schools and children to protect the types of experiences that change kids' lives year after year. 

Of course, the fundraisers in Long Island were...well, Long Island parents.  Parents from socioeconomically depressed neighborhoods--which are facing severe budgetary shorfalls themselves--might not have the time or resources to raise $1 million at the drop of a hat.  But if providing a quality edcation for all Americans is a national priority, the plight of students in schools facing severe budgetary shortfalls affects us all.  That's why The Generation Project wants to connect donors with schools and kids that need their money the most.  No, private money is not going to make all the difference.  Still, it can make a huge difference, and it can do so even if it doesn't go to the school in your own backyard. 

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Be Armani

Wednesday, 18 February 2009 18:31 by Eli Savit

Women's Wear Daily reports today that Georgio Armani is celebrating the opening of his new Fifth Avenue store by establishing the $1 million dollar Armani Arts Institute, which will support arts programs in public schools in underserved New York City neighborhoods.  The reason for this post is not to give Mr. Armani his well-deserved plaudits, as I'm sure he's getting those from much bigger sources than our humble blog.  Nor am I posting this to trumpet the fact that I read Women's Wear Daily, although I would certainly like to be seen as an enlightened, modern man with a healthy appreciation for women's fashion. 

The point is that Mr. Armani's gift is precisely the type of grand, personalized philanthropic gesture that has historically been the sole province of the uber-wealthy or uber-famous, and the precise type of gift that The Generation Project hopes to put in the hands of donors at any income level.  We're trying to revolutionize educational philanthropy--and American charity more generally--by moving away from that old model of charitable giving where donors write a check for $50, $250, or $2500 and let an organization decide how to spend it.  If, like Mr. Armani, you want to support the arts in high-need New York City classrooms, you can donate art supplies to an elementary school teacher that will put them to good use.   If, on the other hand, your passion is politics, you can sponsor an after-school student government club at a high school, or a trip to Washington DC for middle schoolers.  Or if a set of particular books touched you as a kid, what better way to leave your legacy than donating that same set of books to an underresourced school library? 

Everybody has a gift to share, not just those who can afford to open a store on Fifth Avenue.  And kids in high-need public schools don't need $1 million to make a difference (although, if you have it to give, please do!) No matter what you can afford, under The Generation Project's model, the power is in your hands.  Like the Armanis, the Gateses, and the Bransons of the world, we want to give you the power to let your ideas shape the future of education. 

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