Celebrity Fund Fills a Philanthropic Niche

To the Editor:

Thank you for your coverage of the Giving Back Fund (“New Fund Caters to the Philanthropic Wishes of the Rich and Famous,” May 21). I would like to make one correction, as well as to respond to the thoughtful observations offered by Greg Schupra of the Community Foundation for Southeastern Michigan.

The Giving Back Fund is a sector-specific vehicle to expand philanthropy. The community in this case is the commonality our celebrity clients share, rather than the geographic locale in which they make grants. But in all other respects, the fund is like other community foundations: We provide cost-effective and profession al management services and solic it contributions from multiple sources in order to expand philanthropy.

The Giving Back Fund complements the work of all community foundations. First, we seek to collaborate with community foundations in complying with our donors’ wishes to make grants in specific communities. Second, the fund strives to reach a specific group of high-income and high-profile individuals — professional athletes and entertainers — who differ in important respects from typical contributors to community foundations.

Our target donor is relatively inactive in philanthropy as compared to others in similar economic circumstances, and he or she needs a specialized set of services to become engaged in organized philanthropy. Thus, we created a product with the capacity to overcome the unique barriers that discourage celebrities from devoting more of their financial resources to philanthropic projects.

Unlike the more typical contributors to community foundations, many celebrities are young and less likely to be sophisticated about financial management. Professional advisers insulate them from a wide range of well-intentioned and not-so-well-intentioned solicitations to invest in commercial and charitable enterprises. Finally, a celebrity’s public image and career are inextricably linked; their philanthropy usually needs to respect this important connection. Sectorial expertise and relationships and specially designed philanthropic services enable the Giving Back Fund to reach this niche market which other institutions that build philanthropy are less likely to penetrate. . . .

One important factual correction: The Chronicle reported that we require contributions of at least $500,000 to create a donor-advised fund. On the contrary, the Giving Back Fund has no floor on contributions. We seek to remove barriers that might prevent celebrities or anyone else from becoming involved philanthropically because we expect our donors’ commitment will grow over time as they become more involved in their philanthropy and experience the enduring rewards of giving.

Marc Pollick
President
The Giving Back Fund
Boston