NOTES ON GIVING

A. Introductory

1.

Title deliberately omits the word "money," since it is sometimes more
important to realize that what is given is approval or an opportunity to do
something and not money with which to select one thing or another.

2,

The context of giving is no longer that of a traditional society, it is an
adaptive society with numerous needs for change and adaptation.

3.

There are going to be very few uses of the words sought" and must,*1 for I
think it much more sensible, in commenting on giving, to recall the remark
of an elderly Frenchman to H friend of mine:  "Remember, you can have any-
thing you want in this world, only don't forget to pay for it."
every form of giving is likely to have price tags, or disadvantages, along
with the more obvious or readily foreseen advmtages.

Each and

B.

The motives and purposes for giving

1.

Became the giver fully agrees with the receiver in his sense of values and
in what might sensibly be done.

2.

The donor's desire for honor, distinction, and esteem4 g~%t;b.

3.

Good public relations, which in part at least is the anticipation of or the
prevention of hostility and criticism.

4. Repentance.

5. Avoidance of taxes.

5 r\.--kw...H

67  To obtain control or influence over the recipient,

C. Purpose in receiving money

1.

To get something done in line with institutional objectives or personal
convictions or curioaities .

2.

As a means of advancing the personal career of the recipient or improving
his status among his colleagues,

3.

The advancement of knowledge (related, of course, to curiosity) and the
spread thereof.

4.

Humanitarian service (e.g., increasing the case load of a child guidance clinic,)

DO Types of donors

I, Individual

a, Advantages

Easy to start any undertaking and to make new experiments and to change,
Individual has the advantage of relatively large measure of freedom and
promptness of maneuver and decision.

20

The dilladrantages of the individual a6 a donor ab. that he la 1petaally
ocreupied With other affaire and cannot give tibe proj.act hie entire tima.
He is also under sovem temptation t0 exercise proprietary control, and
only rarely is he well info- about the experimco nnd prosant
activities of other people in the fleld 11Pdo.r ~ansideratianr~
ale0 limited l?y the chances of illnorre and "old mrtalityom

He ir

a. Advantages

The adrantages of fotudstioas dertve from cambined efforts of cleveral
peoplo with still a relativelr large amount of Prsodaa in point of

permmmoe and, if there are fbll-timo officers, gives a focus of
attentian that oan bo only me* axemisod lq individuals.

initiati~~, eq>e*t, and ad.p*UaS.

FoMdotiOn &NO-0 gives

b. Dirradranfages

1$ tbA -atistar, emrhlCOd fOrrndatioPP8, OXbCOuDt@rS l~h%f~S
of a financial ror% in Oll hat th. largest fauadatio~3s, tmd ecimetheu
there. Tho foundation may be, like private donor, impatient for
quick remlte and more assurod of the wirrdapr of its decisions.
selection of programs, foundation trslsteee ray bo influmced
or desire for public approval.

In the
vanity

3. Government

The adraatagee of governmental giving are the amounts that can be appro-
priated, which may be very large.  High probabilitip of continuity if the
8ervice rendered is widely acknowledged to be valuable.

b. Dieadvuntagee

(;overnmamtal giving is open to gartiean or regional pressures.  The giving
is likely to be as-& for only one year at a time.
award are to0 Inelaatlc.  Purposes depend upon the level of Coopprehenrrion
of rotere and their representatives and consequently iaclines to be
strongly utilitarian ratber than tbe pursuit of so-called auseles8 know-
ledge.r
1066 of the ease of personal accompliabment.

Term of a given

Gcn-t serpice tend8 to becaw routdneer, with a considerable

I)*- BuA.L .$
E.  Scale of operations on the part of the donor

Tho mmmt of pP0pB;lr and profeeaiaml attention that OBP be given by a donor to
the eolection of pmjecte, to negotiatiam of thm, aad to the mpervieion or
contact raqdrod after the grant has bema mado, determines in large measure the
sorts of things that the donor can do.  It is umally assumed that adalnistration
costs for the giving of money CBLI be negligible.  This ie not the experience of
the largest or the beet fuundationr.  A&i~istration oosts vary between 4% and le0
It is doubtfbl whether any damor of less tilaan (i#lo,OOO a year wiU consider it
wise to spend a8 much a8 la of this sum in administration.  As may be expected,

3.

small-scale donors can best confine their attention to small grants and limited
programs, though the temptation will often be to scatter their efforts in a
large number of probably insignificant "exploratory grants."  Certainly, lsrge
gifts are more appropriate and almost limited to large donors, though here also
the temptation is almost overwhelming to develop extremely extensive interests
by making a large number of small grants.

F. Nature of operations

Operations and activities of a donating organization or individual may be,  in
general, of two types:

1.

Operating programs, in which the personnel of the f'und or foundation Wes
8 direct administrative responsibility in the expenditare of fbds and the
doing of the work to be helped.

2.

The other activity is limited to the giving of money to the people who are
doing the work, but not using the foundation's personnel in the activities
aided.

Ranging from the private donor to the government bureau that makes appropriations
to other organizations, we can observe a wide variety in the organization of
donors or donating groups.
below, frequently having individuals who are charged with these functions:

A large foundation illustrates the functions listed

1.

Charter and by-laws, including the name of the organization and its declared
purpose.

Advantage of broad terms in defining the purpose.

2.

Trustees.
to projects submitted to than.
of providing continuity and legal responsibility for the actions of the donor.

Function is that of consultants, giving or withholding approval

They are advisers, with the further advantage

3.

Officers.
exclusively, their time to the work of the organization.
to the study of conditions, to proposing programs of activity, and to
negotiation and supervision of projects approved by or to be approved by
the trustees.

The flmction of the officers is to give a lmge measure of, or

Time must be given

4. President. Has the function of centralizing. President is the focal point

between officers and trustees and also the chief administrator and figurehead
of the organization to the public.

5. Treasurer.
  organization and the major share of responsibility as agent for investment of
  the funds.
  trea,surer but in many instances fails to do a good job in this direction.)

Responsibilities and function are the financial accounts of the
(Finance committee of the trustees theoretically helps the

6. Legal counsel.

Should act as the adviser regarding the legal aspects of

actions on the part of the foundation before such actions are taken, 8s well
as acting as its representative in all questions of legality affecting the
organ is a tion.

4.

7. Auditor. As a protection against miamanagawnt, misunderstandings, and
  inefficiency.  The accounts of the organication should be audited by an
  outside firm, and it may be noted that in this point you get just about
  what you pay for, and emphasis can wen be put upon quality and thorough-
  ness of the annual audit.

8. Meetings.

The number per year will vary with the size of operations.

                        the convenience of the

Preparation for the meetings is covered later, under discussion of docket.
The place of meetings is usually influenced
trustees, who usually ahse this concession and arrange for appobk~entL?
that conflict with the time they owe to their work as trustees.  To offset
this tendency, meetings can sensibly be set for a place outside of the
larger cities and not too near, so that the trustees will give the ~~~QUEI
amount of attention to the work at hand.  Relationship of annual meeting
to executive committee meetings.

H. Officers

1. Functions

a.

To study and evaluate possible projects.

b.  To initiate, propose, and prepare projects for the trustees.

C.

To negotiate and keep in touch with projects and programs after they
have been approved in principle by the trustees.

d.

Officers often tend to be used as advisers to ubdertakings that want
money or, in some cases, only advice.  This may take a considerable
amount of officers' time.  It should be noted that the number ofhfficers
in a ftmd or foundation usually affects the number of projects submitted
to the trustees, i.e., the more officers, the more projects.

In essence, the officers' fbctions include two quite different activities:
first, that of a judge or buyer; the second, when the officer appears before
the trustees, is the task of an expositor, advocate, and seller.  Perhaps a
third function is more important, though less easily definable, namely, an
imagination sensitive to the needs of society and to possible ways of meeting
these needs.

2. Qualifications

These relate directly to his sense of values and his convictions, the depth
and tenacity of the latter being important, as well as the quality.  He needs
to be modest and tactful, capable of teamork, and with an inpersonality that
suggests the midwife rather than the proud parent.
regard the work of others as his own personal accomplishment.
have officers whose technical familiarity with their field contributes rather
than handicaps their discernment and discrimination.  Perhaps the officer's
capacity to grow on the job and acquire better values is the most important
consideration among his qualifications.  It may be occasionally valuable to
find out as near a8 possible what the officer's view of the power that he
unconsciously exerts may mean to him and whether it is acconpanied by an
appropriate measure of responsibility.

He cannot afford to

It is wise to

3.

A.

5.

Officers' temptations

The enjoyment of power and status.
play favorites, whether aBllong activities or among individual recipients.
This can sometimes be Wished by requiring the recipient to put up a
large enough fraction of the cost of the project to assure that there ia
local interest,and not mere receptivity.
tempted to what 3.8 known as the 'Santa Clau8 complex," and also to begin
to take his own opinions as more important than they usually are and to
pontificate regarding them.
speaking, the largest foundations have more money than brains.

'lolo episcopara.n The temptation to

The officer is also subtly

It is wise to remember that, relatively

Selection of officers

The question of training of officers.
Danger of nepotism.  What do you start with as convictions and values?
Ad~tbistrators don't necessarily have better values than other people.

Is being an assistant good training?

Salaries and tenure

Relation of sgclaries to academic salaries.
mnt. Re%%rerment arrangements, and age for retirement. Resignations.
Promotion policy.

Itmetion of pearly re-appoint-

I. Trustees

1. Functions

Dispose, not propose. Knowing the work of the organization. Travel.
Reinforcing the conscience of the officers. Brooding. As personal advisers
to the president (note Walter Stewart's theory).

2. Selection

Relation of the founder to the board of trustees.
the officerhand theirs to the trueteea.
ing different areas of experience and point of view.
publicists. Educators. Financiers. Artists. Research men. Political
experience. Religious affiliations.

Relation of trustees to

Newspaper man and

Importance of trustees' represent-

J. Programs

The advantages of a new foundation.
Selection of programs.
laws, but the best laws they were capable of receiving.  "The program of the GEB
is to have no program."                                    I cannot
tell you what it will do."  Program as a shield for officers.  How do you decide
what to do, end how do you pick the projects within any such areal  The ddsira-
bi3.itF of programs' having an explicitly defined termination.  The burden of
unfinished programs when a new officer is brought in.  What balance is reasonable
between gilt-edged projects and speculative wflierag?  The temptation to too
many and too hastily prepared exploratory programs - the need for some.  The
value of keeping a list of aleads"; i.e., fields of f'uture interest.

Time to study, investigate, and review.

Solandt's remark about giving the Greeks not the best

Rose's "1 can tell you what the RF has done.

K. Procedure

1.

2.

3.

4.

5.

6.

Officers' conference. Clearing recommendations with the president and
fellow officers. The inherent difficulties of joint programs. The risk
of having to put a proposal through too msny sieves.

Docket. Writing the docket. Headings and their contents. The effect of
the clause "or a8 much thereof as may be necessary.a
prepared docket on the trustees. "Authority to negotiate," Extmsions,
renewals, and amendments.

Effect of a well-

Meetings. How many? When? Where? Limiting the executive conunittee in
amounts.  Oral presentation to express the officer's assumptions, hopes,
hunches, reservations, forecasts, and answers to questions.  The fornrula
that runs:
consists of.
What kinds of questions can trustees ask helpfully?
(minutes of finance committee) .

what it is; what it is not; what it is a part of; and what it

Getting votes of conviction rather than votes of confidence.

Records of meetings

Notifying the recipient.
release of the news of a grant.
letter explaining in detail the meaning of the tern of the grant, especially
unexpended balances and the means of authorizing changes and the desire of
the officers to keep out of administrative control of the grant.

The implications of leaving to the recipient the

The importance of an officer writing a

Publicity.
of record, and the president's review - high-lighted and popularized account.
Value of reporting projects to the trustees. Confidential bulletin. The
value and importance of a financial statement.

Annual reports of two kinds:

formal annual report as a matter

Communications within the organization.
such conmanications of special importance.
having clear understandings with its representative6 abroad.
standing with his representatives. Memoranda. Diaries to present the
evidence.                             Keeping a diary
affects the way you ask questions and the way you listen at an interview.
Also useful as a record of what was said and not said.  Value of exchange
of letters after an important interview.  Letters - usually too fill and to0
varied. J. D. Greenel8 reaLark about telegrams. Records of projects. Lack
of adequate record of what was expected.  Visits to home office and the
effect of air travel.

Frequent absences on travel make

The value of the home office

RMP's under-

Hard to know what impresses you at the time.

L. Officers' work

1.

Study.
and institutions.  Officers always complain that they don't have enougb time
for reading and thinking.

Cumulative nature, especially with regard to his knowledge of persons

           Special assignments to others.

2. Reports and records. Survey before any program is taken up. Brevity in a

winding sheet. Declinations. Other types of writing. Speaking and publiu
addresses. Reports from recipients.

3. Travel. Invitation. Value of comparisons. Purpose: to find laen with ideals,

on their home grounds, and men that are better than you are.
that you don't want to control them.

                 Choose so well
Wait till the heart leaps up.  Workbg

7.

4.

5.

6.

from the top down.
Expense accounts. Hospitality. htels versus private hospitality. Courtesy
fund.

The proprieties of approaching the research worker.

Dangers of carrying the news.

Interviews. Accessibility of officers. Persons. What does he want?
Advice versus mney. Vhzre the thinking." Estimating the man. Character.
A. V. Hill's story.
ability to lead his own colleagues.
remark.
but through him.

Getting hpressions from others (Pasteur).

                     A man's
His past record. Percival Bailey's
           Not& an individual,

The importance of putting an asker at his eese.

Attitude of an officer.
going before a court regarding somebody else's money.
officer as hyer - sensitive, restless, imaginative, critical, discriminating;
and as seller - candid, clear, convincing, responsible. Giving credit for
the work done; especially important abroad. Widwives. Gratitude to recip-
ients; e.g., the Poles in Parana. Attitude to honors, degrees, and the
naming of enterprisee.

Buttrick's "extra engine."

Officer as 851 advocate
Double role of the

Conduct of negotiations.
with the administration of the institution. Asking for ltnforrnation. What
the officer can promise, and warnings of his inability.
out the.year.

The importance of having an initial understanding

Negotiations through-

The importance of winter and early spring.

My interview with the Hungarian.  The effect of the "Jehovah complexn and pontifi-
cating. Giving approval. The dangers of testimonials. The alternative to making
a specific gift is not keeping the money in the bank, txlt giving it to someone else.
Granting meane approval, but not granting does not mean disapproval.
at proprietary control. The attitude of askers . Ingratiating, argumentative
("why not?"), self-depreciating, and naive.
gratitude and hard work; dependence and relaxation of effort; suspicion and
irritability; indifference.

Resentanent

The reactions of the receiver -

1.

2.

3.

Endowment

Outright or contingent.
on other foundations, and on the desirability of having an inducement or
leverage for raising further ptlnds.
outright and part on a dollar-for-dollar basis.
point of clarity of termination.

Contingent depends upon general financial situation,

Nodifications of contingent, part being

Advantages of endowment in

Investment trusts.

Buildings

State universities versus private universities, and their attitude towards
buildings. Private persons as donors of buildings. The Lyonsexperience.
Preliminary study before planning a building.

Fellowships

General advantages. Multiplied by time.
newly-acquired ideas to the local scene. Types of fellowships. Scholarship

Adaptation of the fellow and his

8.

at full cost. Pre-doctoral. Mote the Cope Fellowships at Harvard. Post-
doctoral - Cambridge, Beit, Welch, Markle.
Considerations of age, and guarantee of post on return.
place of study. Best duration of fellowship. Follow-up. When can the
advantages of a fellowship be best evaluated?

Selection of the fellow.

Choice of his

4. Grants in aid

a.

b.

C,

do

e.

fo

g.

Purposes

Info~tiv~j for example, a government that has money to do something
has no money to find out how to do it.
explore a potential area of research.
be to encourage a coxapetent worker who is ignored or distrusted.  Grant
in aid can provide a trial run for a task that may later deserve larger
support.

Grants in aid can be useful to
Purpose of the grant in aid map

Grant in aid may be used for salvage purposes,

Grants in aM usually stand on four legs:

(1)

Feasibility - is it a good lead in the present stage of knowledge?
This requires technical knowledge on the part of the officer pro-
posing the grant.

(2) Is the leadership satisfactory? What about the age, health,

character, corapetence, and record of the performers?

(3) Are the circumstances favorable? Does the institution know abaut

and support the enterprise? Is the institution solvent? Is the
material to be studi8d adequate?

(4)

The board of trustees' policy or interest.

Contingent or outright.

The question of institutional overhead.

Duration of the grant. The role of tapering. Forward financing.
Curbsticking. Six years' support for five years' work.

Types of work as they affect the form of the grant.
melting,

Mining versus

Defects of grants in aid

Soft money. Good askers. Mendicity versus mendacity. Donors' pride and
impatience for results.
he must not change his interests during the period of a grant.
for approval only and relating laostv to status and promotion of the
recipient.

Over-conscientiousness of the recipient who feels

Grants

Application forms?  $300 topepare a better request.

5. Cooperation with government

Invitation to mrvey.
Project including training govenunent personnel.

Expenses of mrvey shared.

&rvey and report thereof.

Taper and termination.

9.

0. Frontiers and fowciatione

Hunting for men and ideas.  Hemrandam from Old Man Buttrick.
of travel and comparison.
(rule of the Bank of England).
Tendency of officer to identify with a recipient; cf. good marks given by
b8 chers.

     The importance
The origin of conviction

The use of interpreters.

"All criticism is a form of a~tobiography.~

P. Retrospective

The isolation of the giver from criticism.
the recipient. The bank at Plonte Carlo. Time and tenacity, Wr, Pase'Et "We are
not in a hurry."
with the recipient.
discoveries and good morale.
character of the recipimt.
A. V. Kill epitaph.

The importawe of the character of

Advising as an officer's function,
Impersonality and loneliness.

Personal relationships

what money won't hy, nmely,

-at giving money does not asme:

            success and
Eraphasis on people, and the

Inherited programe.