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The
True Nature of NHF
The National Heritage Foundation is in the category of "Donor
Advised Fund."
The purpose of the National Heritage Foundation is to lead the way into
what will be a dominant "people activity" in the 21st Century.
Charitable sectors all over the world will need vast numbers of people
to help make the world a better place. And the administrative framework
around that activity will be structures like those represented by the
program of the National Heritage Foundation. The person who wants
to be a "charitable entrepreneur" will focus on the aspect of
the grand task of making the world a better place that he or she has chosen,
based on skills, resources, and preferences. These activities will be
encouraged to begin independent charitable corporations, approved by the IRS with help of the National Heritage Foundation and our sister foundations
all over the world.
Charitable Employment
All societies must find exciting, motivating work for their people to
do. And with the advance of "Commercial Entrepreneurism," beyond
manufacturing, and deep into the service industries, there will be fewer
and fewer entrepreneurial opportunities in the commercial sector. This
leaves the philanthropic sector as the only, or at least the main, sector
for entrepreneurship in tomorrow's world. What an exciting task it will
be when individuals will be able to wake up in the morning and say, "What
I do today will make the world a better place!"
Charitable Employment must be administrated properly. By helping to create IRS-approved independent public charities
like the National Heritage Foundation we must see to it that charitable activities
are conducted properly, and that reasonable compensation is paid. The
issue of reasonable compensation, to NHF, has TWO SIDES. NHF administration
recommends that what is paid is considered to be reasonable by using a variety
of factors including, for example, the amount paid by similar organizations
for equally qualified persons for similar services. But the issue of paying
salaries that are too low is also very important to NHF. Salaries in the
charitable sector have historically been lower than that in the corporate
world, and this has caused burnout, high employee turnover, and charities'
inability to attract the most competent people.
A Word About Donor Advice
With the supervision and approval of NHF a donor may suggest an
existing church, synagogue, school, or charity to receive a gift from
one of the NHF funds. But this is just one method of expressing the spirit
of Charitable Entrepreneurship: selecting excellent existing charities
that have an operational program that coincides with the objectives of
the donor. Charities need funds, and NHF encourages the formation of funds
in which the donor, by his or her selection, can encourage these charitable
programs. We don't have to reinvent these wheels - they are already rolling.
But above and beyond supporting existing charities lies the challenge
that is being increasingly accepted by the entrepreneurial community:
that of creating new charities that never existed before. And every growing,
changing society needs a steady supply of new charities as times and circumstances
change, and a steady supply of new blood as the older people gradually
lose their energy and retire. NHF will propose to meet this challenge by helping individuals, corporations, and communities to set up and administer indiviudal publically licensed charities.
The Profound Differences Between NHF And A Donor Advised Fund
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Independence
NHF
is an independent public charity which is neither beholden to nor
affiliated with nor controlled by any institution. The typical Donor
Advised Fund was formed by, is affiliated with, and is usually at
least indirectly controlled by a major financial institution, or securities
investment firm. For example, Fidelity, T. Rowe Price, Schwab, Vanguard,
and Merrill-Lynch are all prominent securities firms that have created
parallel Donor Advised Funds. Many local and national banks have also
created affiliated Donor Advised Funds or have participated in the
formation of locally-focused community foundations.
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Personal
Involvement Versus Retail Philanthropy
Donor Advised Funds restrict the donor to recommending grants only
to public charities, colleges and universities, and religious organizations.
The Donor Advised Fund is merely a conduit to another code-section
501(c)(3) organization. The management of the Donor Advised Fund need
only verify that the proposed grant recipient is a qualified 501(c)(3)
entity. This might be called "Retail Philanthropy." While
the director of a foundation at NHF is also permitted to make a recommendation
for a grant to a qualified 501(c)(3) organization, he or she is not
limited to this.
On the contrary, NHF encourages the donor to become personally involved
in the philanthropy. This means taking direct, operational control
of hands-on charity work, e.g. planning the routes, and finding the
drivers to deliver the surplus food to the poor. If there are expenses
associated with the work, such as reimbursing a volunteer for mileage,
or paying for refrigerated food storage, the director can request
disbursements from his or her foundation at NHF. NHF intends to do this by helping the individual corporation or community set up and administer its own public independent charitable corporation.
In
short, NHF encourages the director to roll up his or her sleeves and
become directly involved with the work of the foundation. NHF calls
this kind of encouragement Charitable Entrepreneurship.
It
is this kind of hand-in-hand, heart-to-heart work which sustains philanthropy
and becomes its purest expression, as Mother Theresa's mission in
Calcutta perfectly illustrates. This contrasts sharply with a Donor
Advised Fund's cutting a check to a college because of a donor's request.
Oversight
And Supervision
Naturally,
the oversight, supervision, and administration provided by NHF to these new charitable corporations in connection with requests
for funds to be used for hands-on philanthropy is more difficult, time
consuming, and expensive. A Donor Advised Fund such as the Fidelity Charitable Gift Fund
need only check the IRS's list of public charities (Publication 78) to
ascertain if the entity is a qualified 501(c)(3) organization. This may
be no more than a clerical function.
In
contrast, NHF is involved in the nitty-gritty of working with the director
of each foundation and verifying that the proposed use of the funds contributes
to the advancement of its mission. This is as much a partnership as it
is a supervisory relationship. The staff at NHF staff works extremely
hard to help these new foundations make sure every dollar counts and every receipt is reviewed and
properly recorded.
Our
National Heritage
The
Donor Advised Fund, per se, is a new element in our culture. It is seen
by many as simply a convenience - and because it perpetuates the donor's
name and ideas, it is a great help to the strengthening of our charitable
sector. The National Heritage Foundation from its inception has sought
to inculcate not just its contributors who create foundations, but people
in countries all over the world. This is our national heritage: a proud
volunteer spirit which makes the United States of America as unique as
the National Heritage Foundation. The spirit has been expressed in
the cooperative barn raisings of the early colonies, and is still alive
and well embodied in the program of the NHF. We believe in encouraging
hands-on philanthropy that feeds both the heart and the soul.
It is easier for people in general to misunderstand than to take the time
and trouble to understand. NHF is much more than a Donor Advised Fund. NHF is a PUBLIC CHARITY whose charitable purpose is that of encouraging
philanthropy, without regard to race, creed, or color, throughout the
world.
There must be much, much more hands-on philanthropy, not only in the United
States, but also all over the world. Each generation has a need for a
new cadre of Charitable Entrepreneurs who are both filling the ranks of
existing charities with fresh blood, but who, in the spirit of the Entrepreneur,
are beginning new charities which are increasingly shedding light on the
darkness of the world.
The
True Nature Of The National Heritage Foundation
There is no question that the public charity known as National Heritage
Foundation is unique. There is no public charity in the United States
which is identical in purpose and program to NHF. While there are certain
superficial similarities between charities commonly referred to as Donor
Advised Funds and NHF, there are far more profound distinctions. Our vision
is that philanthropy is a "golden thread" which can bind people
together. And it is our vision that National Heritage Foundation's Charitable
Entrepreneurship program can lead the way.
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©
2006 by National Heritage Foundation
6201 Leesburg Pike, Suite 405
Falls Church, Virginia 22044-2201
Tel: 800-986-4483 Local: 703-536-8708
Fax: 703-820-5100
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