Big Pledges to Take on Big Problems
September 29, 2005 | Read Time: 5 minutes
Conference sponsored by former president Clinton nets $112-million in commitments to combat global ills
Wealthy individuals, foundations, and corporations have pledged at least $112-million as part of an effort by
former president Bill Clinton to help solve social ills and environmental problems plaguing the world.
The donations were announced during the Clinton Global Initiative, a three-day conference in New York this month that included 800 nonprofit officials, world leaders, and even Hollywood celebrities, such as Brad Pitt.
During the event, Mr. Clinton asked participants to make a commitment in writing to help alleviate poverty, resolve religious conflict, reduce global warming, or improve governance in poor nations. Mr. Clinton’s charity, the William J. Clinton Foundation, will monitor the pledges to make sure they are fulfilled.
The former president said he had received 190 commitments worth at least $1.25-billion, though most of that amount was not in the form of charitable contributions.
For example, Mohamed Ibrahim, former chief executive of Cel-Tel Africa, a communications company, said he would invest $100-million in small and mid-sized businesses on the continent to produce jobs and support economic development.
Bruce R. Lindsey, chief executive of the William J. Clinton Foundation, said the business investment was considered a charitable endeavor because of the risk involved in supporting African companies. “If they all go bust that’s a $100-million contribution,” he said.
‘Poorest of the Poor’
The largest philanthropic donation came from Sir Thomas Hunter, a Scottish retail-clothing entrepreneur, who promised to give $100-million over 10 years to help “the poorest of the poor out of poverty” in Africa.
Sir Thomas did not say which organizations would benefit from his gift, but he said the contribution will support a variety of charitable projects, such as improving health care and agricultural production in two countries. He said he has not yet chosen the countries where the money would go, and said the programs would be expanded to other nations if they are able to achieve certain goals the philanthropist sets.
Sir Thomas, who was knighted this year for his philanthropic efforts, said he decided to make the donation after visiting Africa with Mr. Clinton in July. “We don’t need any more research. We don’t need any more feasibility studies,” he said about the continent’s need for immediate aid.
While Sir Thomas’s donation and other ones announced at the conference would have been made regardless of the gathering, several donors said they decided on the spur of the moment to make gifts. For example, after she participated in a discussion about the problems young women in poor nations face in education and employment, Maria S. Eitel, president of the Nike Foundation, in Beaverton, Ore., said the shoe company’s fund would give $1-million to help that population.
“Our commitment came organically from being here,” she said. “Of course, I did have to get my board’s approval.”
Mr. Lindsey of the William J. Clinton Foundation, in New York, said Mr. Clinton would make sure the Nike donation and other commitments made at the conference by attendees are fulfilled.
“We’re not talking about making commitments, we’re talking about carrying out those commitments,” he said. “And if they’re not doing it, we simply won’t invite them back” to next year’s event.
The charity will add five new employees to its staff of 30, whose responsibilities will include monitoring the progress of the pledges.
Mr. Lindsey compared the pressure the Clinton Foundation will apply to what managers of country clubs do to solicit overdue payments from members.
“They put up a board that says who hasn’t paid their dues and that causes people to be embarrassed,” he said. “It’s amazing how many people pay their dues when their name gets put on.”
Indeed, during the conference the Clinton Foundation posted foot-long placards that described the pledges and included the signatures of those making the commitments and the former president. The placards, which were written by professional calligraphers, were put on a wall in the conference hotel.
Meeting Oprah
The unusual nature of the conference drew praise from nonprofit officials.
Judith Rodin, president of the Rockefeller Foundation, which gave $250,000 to support the conference, called it a success because it brought together an unusual collection of people. “We saw many new partners,” she said, saying she met the talk show host Oprah Winfrey, who has donated more than $100-million to charities in Africa and the United States over the past two years, during a discussion on global poverty.
Richard E. Stearns, president of World Vision, an international relief charity in Federal Way, Wash., echoed her remarks but also said the true test of Mr. Clinton’s effort will be if corporate leaders and wealthy donors give money to antipoverty projects as a result of the gathering — and not simply use it as a platform to announce gifts that were already planned.
During the conference, which each of the participants paid $15,000 to attend, Sir Thomas encouraged wealthy people to donate more to charity. Making large donations is better than “any buzz I’ve gotten from any business deal,” Sir Thomas told attendees.
Other philanthropists at the event echoed his enthusiasm for charitable giving.
Janet McKinley and her spouse, George Miller, who are both former investment-fund managers, said they will give $5-million to Oxfam America, in Boston, and $5-million to the Grameen Foundation USA, in Washington, as part of their plans to give all their money to charity before they die.
“We’re not in the forever business,” Ms. McKinley said. “My husband’s estate plan is to have a double vodka and die broke.”