Philanthropy is a form of altruism that consists of "private initiatives for the public good , focusing on quality of life ". Philanthropy contrasts with business initiatives, which are private initiatives for private good, focusing on material gain; and with government endeavors that are public initiatives for public good, such as those that focus on the provision of public services. A person who practices philanthropy is a philanthropist .
149-638: The Kresge Foundation is a philanthropic private foundation headquartered in Troy , Michigan , United States. The foundation works to expand opportunities in America's cities through grantmaking and investing in arts and culture, education, environment, health, human services and community development efforts. The Kresge Foundation is one of wealthiest charitable organizations in the world, with an endowment of $ 4.3 billion as of June 2021. In 1924, with an initial gift of $ 1.6 million, Sebastian Kresge established
298-557: A $ 230 million settlement negotiated between the city and Bank of America Merrill Lynch and UBS . The city owed the banks $ 290 million due to the investment by former mayor Kwame Kilpatrick. The city and banks would settle, on the 24th, for $ 185 million in the Rosen-negotiated deal. Rhodes would later stun those following the proceedings, in what would be known as the Christmas Eve Massacre, when he rejected
447-482: A Chapter 9 filing, nor the effect on the bankruptcy case of Michigan's constitutional protection of vested public pension benefits. On July 27, Michigan Attorney General Bill Schuette announced that he would enter an appearance in the bankruptcy case for the purpose of defending Michigan's constitutional protection of vested public pension benefits. Schuette said that in doing so he would be acting in his role as "the people's attorney." Schuette acknowledged that there
596-660: A Detroit native who is also an adjunct professor at the University of Michigan Law School; U.S. Bankruptcy Judge Elizabeth Perris of the District of Oregon, who has served almost 30 years as judge and has been a judicial mediator in the Chapter 9 bankruptcies of Vallejo, Stockton and Mammoth Lakes, Calif.; Senior U.S. District Judge Wiley Daniel of the District of Colorado, a former Detroit resident; former U.S. Bankruptcy and U.S. District Judge David Coar , who has also served as
745-673: A cause and lobby the government for legislative change. This included organized campaigns against the ill-treatment of animals and children and the campaign that succeeded in ending the slave trade throughout the Empire starting in 1807. Although there were no slaves allowed in Britain itself, many rich men owned sugar plantations in the West Indies, and resisted the movement to buy them out until it finally succeeded in 1833. Financial donations to organized charities became fashionable among
894-884: A compromise between the Christian Democrats and the Socialists to help promote uniform treatment and equal outcomes. The success in Italy became a model for Ford programs and many other nations. The Ford Foundation in the 1950s wanted to modernize the legal systems in India and Africa , by promoting the American model. The plan failed, because of India's unique legal history, traditions, and profession , as well as its economic and political conditions. Ford, therefore, turned to agricultural reform. The success rate in Africa
1043-475: A filing on July 23 his intent to appoint a mediator to work with the parties in the bankruptcy. Rhodes indicated that the mediator would be Chief Judge Gerald Rosen of the U.S. District Court for the Eastern District of Michigan. On July 24, the bankruptcy court held a two-hour hearing on the city's request for a stay of the pending state court proceedings against Snyder and Orr. Rhodes then granted
1192-456: A low point in the city’s history," "If so, I think it will also be the foundation of the city’s future—a statement I cannot make in confidence absent giving the city a chance for a fresh start, without burdens of debt it cannot hope to fully pay." President Barack Obama said that he is following the developments and that he is "committed to continuing our strong partnership" with Detroit. Kentucky Senator Rand Paul stated that he will not allow
1341-448: A means to alleviate human suffering and advance the quality of life. There are many forms of philanthropy, allowing for different impacts by different groups in different settings. Celebrity philanthropy refers to celebrity -affiliated charitable and philanthropic activities. It is a scholarship topic in studies of "the popular" vis-à-vis the modern and post-modern world. Structured and systematised charitable giving by celebrities
1490-404: A model for others, especially regarding the welfare state . The princes and the various imperial states continued traditional efforts, funding monumental buildings, parks, and art collections. Starting in the early 19th century, the rapidly emerging middle classes made local philanthropy a way to establish their legitimate role in shaping society, pursuing ends different from the aristocracy and
1639-592: A monopoly of specialized microbiological knowledge, allowing it to raise money for serum production from private and public sources, walking the line between a commercial pharmaceutical venture and a philanthropic enterprise. By 1933, at the depth of the Great Depression , the French wanted a welfare state to relieve distress but did not want new taxes. War veterans devised a solution: the new national lottery proved highly popular to gamblers while generating
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#17327839040371788-485: A months-long litigation effort to have Stockton declared ineligible. But this expensive and time-consuming effort proved unsuccessful. An attorney for some of the bondholders in Detroit's case commented that they felt it was better to have the bankruptcy judge as a referee rather than to deal only with Orr on the terms of his severe pre-bankruptcy proposal to the bond groups. Judge Rhodes ordered that initial argument on
1937-450: A municipality and not a business, and some also had received pensions in lieu of Social Security benefits. According to a Detroit area bankruptcy attorney, legal costs for the bankruptcy proceedings could cost Detroit "tens of millions to hundreds of millions of dollars." Orr hopes that Detroit can emerge from bankruptcy by late Summer or Fall in 2014; he says that the process is moving as "expeditiously as possible". Orr has considered
2086-610: A number of financial contributions to help with the response to the COVID-19 pandemic . In 2020, the foundation committed $ 19 million to help nonprofit organizations weather the pandemic. In Detroit, the foundation committed $ 2 million to back loans from the Paycheck Protection Program to nonprofits organizations. In March 2021, the foundation also backed a $ 5-million loan to a Detroit housing agency, United Community Housing Coalition, with $ 4.5 million guarantee as
2235-477: A plan under federal bankruptcy law, despite the Michigan state constitutional provision protecting such pensions from impairment. Judge Rhodes followed the announcement of his ruling in open court with a 143-page written memorandum opinion providing the bases for the ruling. The memorandum discusses in detail the financial status of the city. It reviews the statutory criteria for eligibility and indicates those
2384-684: A possible plan were continuing. The plan was approved by the United States Bankruptcy Court in November 2014. One of the biggest issues facing litigators of Detroit's bankruptcy was which assets belong to the city outright and those that were available to creditors in order to satisfy liabilities. Nowhere did this question loom larger than the fate of the Detroit Institute of Arts . The DIA holds 66,000 valuable pieces; however, only five percent of this collection
2533-611: A private mediator in large bankruptcy cases, including the Mammoth Lakes, Calif., Chapter 9; and Eugene Driker, also a Detroit native, who is "considered a leading mediator in Michigan." On August 19, the deadline set by the bankruptcy court, 109 objections were filed to Detroit's eligibility for Chapter 9. Among the more prominent objectors were the Retired City Employees Association and Joint Retired Detroit Police and Fire Fighters Association,
2682-576: A quick end to the bankruptcy fearing a process that could take years to resolve. On November 5, 2013 Rosen convened a meeting at the federal courthouse in Detroit with the leaders of some of the largest foundations in the country. Among those in attendance were the Ford , Kresge , Knight and Mott Foundations. It was here that Rosen laid out his plan that would become known as the Grand Bargain. Rosen's plan sought commitments for over $ 800 million over
2831-491: A result of the city’s low credit rating. Contributions of city revenue and expenses to the cash-flow shortfall help explain the immediate causes of Detroit’s bankruptcy filing, but Detroit’s complex history provides greater context for the city’s financial problems. The decline of population and employment opportunities in Detroit had been going on for decades prior to the bankruptcy filing. Detroit’s population declined from 2 million in 1950 to 714,000 in 2010. Jobs followed
2980-441: A set of narrowly defined programmatic objectives. It awards grants and makes program-related investments. Some grants are awarded for a single year; others are for multiple years. Some of its programs accept applications on an ongoing basis. Others proactively invite or solicit applications. As of early 2019, about 15 percent of the foundation's domestic holdings were in firms owned by women and people of color. In April of that year,
3129-456: A statement that his office does not contest Detroit's eligibility for Chapter 9, but does object, and will continue to object, to Detroit's ability through the bankruptcy process to diminish its retiree pension benefits in light of the Michigan state constitutional prohibition against impairment of these vested obligations. Notably, bondholder representatives and municipal bond insurance companies chose not to file an objection to eligibility. This
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#17327839040373278-406: A status conference, set an initial schedule for the case, and made several initial rulings. The court set August 19 as the deadline for any party to file objections to the city's eligibility for Chapter 9 bankruptcy, and October 23 as the hearing date for trial on such objections. The court set March 1, 2014, as the deadline for the city to file a plan of adjustment for its debts. The court ordered
3427-567: A tool to sustain economic and firm growth, based on human capital theory . Through education, specific skills are taught that enhance people's capacity to learn and their productivity at work. Intel invests in science, technology, engineering, and mathematics (STEM) curricular standards in the US and provides learning resources and materials for schools, for its innovation and revenue. The New Employment Opportunities initiative in Latin America
3576-447: A typical fashion. The only major U.S. automaker headquartered in Detroit itself, General Motors , said it "is proud to call Detroit home and ... (this is) a day that we and others hoped would not come. We believe, however, that today also can mark a clean start for the city." Politicians have commented on the bankruptcy. Bing said that the people of Detroit "have to make the best of it". Snyder stated that "I know many will see this as
3725-430: A wider scale, as investors have actually treated municipal general obligation bonds as safer than before the filing. Recent history from California "has shown that the fallout from a bankruptcy can dissipate quickly" in the bond market. Contributing to this is the fact that Moody's has fewer than 40 of the 7,500 local governments that it rates listed as below investment grade. Soon after Detroit declared bankruptcy, it
3874-496: Is a metaphor for America, for America's challenges and America's opportunities. It is a hothouse for new innovation, for ingenuity and risk taking. That doesn't happen in a lot of American cities. We need to be in Detroit because of that." In total foundations would commit $ 366 million over 20 years to the Foundation for Detroit's Future, the non-profit set up to act as the fiduciary for the funds. On December 22, Rosen rejected
4023-459: Is a regional collaboration to train one million youth by 2022 to raise employment standards and ultimately provide a talented pool of labour for companies. Philanthropy has the potential to foster equity and inclusivity in various fields, such as scientific research, development, and healthcare. Addressing systemic inequalities in these sectors can lead to more diverse perspectives, innovations, and better overall outcomes. Scholars have examined
4172-537: Is a relatively new phenomenon. Although charity and fame are associated historically, it was only in the 1990s that entertainment and sports celebrities from affluent western societies became involved with a particular type of philanthropy. Celebrity philanthropy in contemporary western societies is not isolated to large one-off monetary donations. It involves celebrities using their publicity, brand credibility, and personal wealth to promote not-for-profit organisations , which are increasingly business-like in form. This
4321-598: Is also the largest city by population in U.S. history to file for Chapter 9 bankruptcy, more than twice as large as Stockton, California , which filed in 2012 . While Detroit's population had declined from a peak of 1.8 million in 1950, its July 2013 population was reported by The New York Times as a city of 700,000. Detroit's bankruptcy filing followed a declaration of financial emergency in March 2013 that resulted in Kevyn Orr being appointed as "emergency manager" of
4470-402: Is also the largest city by population in U.S. history to file for bankruptcy, with more than double the population of Stockton, California , which filed for bankruptcy in 2012. State officials said that city services will not be affected immediately by the bankruptcy filing. Municipal workers with pensions are not insured by the federal Pension Benefit Guaranty Corporation , since they work for
4619-572: Is despite Kevyn Orr's stated intention to treat approximately $ 2 billion of general obligation bond debt as unsecured, which would likely result in substantial losses to the bond parties. Frank Schafroth, director of the Center for State and Local Leadership at George Mason University , commented that the choice not to object on eligibility reflected lessons learned in the Stockton, California, Chapter 9 case. There, bondholders and bond insurers did wage
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4768-472: Is focused geographically in Michigan, Florida, California and Texas, and cities such as Detroit, Memphis and New Orleans. The Kresge Foundation also works in one country outside of the United States. The foundation funds and promote South African postsecondary access and success. With the intention of improving student graduation rates. In 2021, the foundation issued a loan guarantee of $ 4.5 million to
4917-419: Is no action currently pending in the case related to public pensions, but he stated that by filing an appearance he "will be able to defend the state constitution if and when this does occur." Schuette's office also represents Snyder, who favors cuts to Detroit's public pension plans as an element of restoring the city to financial stability. Schuette's spokesperson said that his office would continue to represent
5066-669: Is now mandated, with 2% of net profits to be directed towards charity. Asia is home to most of the world's billionaires, surpassing the United States and Europe in 2017. Misplaced Pages's list of countries by number of billionaires shows four Asian economies in the top ten: 495 in China, 169 in India, 66 in Hong Kong, and 52 in Taiwan (as of April 2023 ). While the region's philanthropy practices are relatively under-researched compared to those of
5215-649: Is now time to restore democracy to the people of the City of Detroit". On December 10, 2014, the ownership of DIA transferred to the non-profit DIA, Inc. The following day Detroit exited bankruptcy protection with finances returned to the control of city, subject to three years of oversight by the Detroit Financial Review Commission. In the years following the bankruptcy filing in 2013 and subsequent bargaining, there has been major private investment and development in Detroit , including in
5364-537: Is only a preliminary step in a Chapter 9 case, and that the "ultimate objective is confirmation of a plan of adjustment....the Court strongly encourages the parties to begin to negotiate, or if they have already begun, to continue to negotiate, with a view toward a consensual plan." Judge Rhodes declined to stay the effect of his eligibility ruling while any potential appeals are decided. He also indicated that he would consider permission for an appeal to proceed directly to
5513-426: Is sometimes termed as "celanthropy"—the fusion of celebrity and cause as a representation of what the organisation advocates. Detroit bankruptcy The city of Detroit , Michigan , filed for Chapter 9 bankruptcy on July 18, 2013. It is the largest municipal bankruptcy filing in U.S. history by debt, estimated at $ 18–20 billion, exceeding Jefferson County, Alabama 's $ 4-billion filing in 2011 . Detroit
5662-521: Is usually short-term, where organizations obtain resources for causes through fund-raising and one-off donations. The Rockefeller Foundation and the Ford Foundation are examples of such; they focus more on financial contributions to social causes and less on actions and processes of benevolence. Impact investment, on the other hand, focuses on the interaction between individual wellbeing and broader society by promoting sustainability . Stressing
5811-785: The Ambassador Bridge . Since the late 2000s, the Kresge Foundation has awarded more than $ 6 million to more than 250 artists through the awards and fellowships in its Kresge Arts in Detroit program. In 2015, the foundation added the Gilda Awards, named after Gilda Snowden , to recognize emerging artists in Detroit. In 2010, the foundation invested $ 35 million into the M-1 Rail (now QLine ) project to build 3.4 miles (5.5 km) of streetcar service from Downtown Detroit through Midtown to New Center . In total,
5960-588: The American Federation of Teachers . On December 16, 2013, Judge Rhodes granted motions by AFSCME and the pension funds permitting direct appeal to the Sixth Circuit. The permission includes the ruling on eligibility for Chapter 9, and the ruling that the city can impair vested public pension benefits through a Chapter 9 plan. As of October 1, 2013, Detroit had spent almost $ 23 million in fees to lawyers, consultants and financial advisers for
6109-732: The Davis Center for Russian and Eurasian Studies ), the Brookings Institution and the Sesame Workshop . In all, Andrew Carnegie gave away 90% of his fortune. Other prominent American philanthropists of the early 20th century included John D. Rockefeller (1839–1937), Julius Rosenwald (1862–1932) and Margaret Olivia Slocum Sage (1828–1918). Rockefeller retired from business in the 1890s; he and his son John D. Rockefeller Jr. (1874–1960) made large-scale national philanthropy systematic, especially with regard to
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6258-528: The Detroit Free Press opined that the deal showed lawmakers "get it.". In total, Judge Rosen's plan was able to raise $ 816 million from the various entities to create the Grand Bargain. Early in negotiations, the city's retirees saw themselves threatened with cuts of 50%. However, the grand bargain reduced those cuts to 4.5%, with no cost living increases. Over the spring and summer of 2014, more than two-thirds of Detroit retirees voted in favor of
6407-630: The Detroit Public Schools Community District . The result, the School at Marygrove, is a K–12 school with plans to expand into an institution for the education of students from early childhood to junior college, also known as P–20. From 2015 to 2020, the Kresge Foundation awarded more than $ 8.4 million in grants to developments through its FreshLo program which stands for "Fresh, Local & Equitable Initiative". The program awards grants to development projects around
6556-730: The Eastern District of Michigan U.S. Bankruptcy Court on July 18, 2013. Snyder approved the filing by Orr in a letter attached to the court documents. Some of the named causes for the bankruptcy are the shrinking tax base caused by declining population , program costs for retiree health care and pension, borrowing to cover budget deficits (since 2008), poor record keeping and antiquated computer systems, that 47% of owners had not paid their 2011 property taxes , and government corruption. Two city workers' pension plans had for nearly 25 years been paying out "13th month" checks. Bankruptcies of cities, towns, villages and counties since
6705-431: The Great Depression are rare (about 60 since 1950, i.e. around 1 per year; special district bankruptcies have been more numerous ), and how Detroit will be affected is unclear. Detroit's estimated long-term debt was more than $ 14 billion and could be between $ 18 and $ 20 billion, far exceeding the $ 4 billion in debt of Jefferson County, Alabama , that had been the largest American municipal bankruptcy filing to date. It
6854-681: The Green Revolution , whereby poor nations dramatically increased their output of rice, wheat, and other foods. Both Ford and Rockefeller were heavily involved. Ford also gave heavily to build up research universities in Europe and worldwide. For example, in Italy in 1950, sent a team to help the Italian ministry of education reform the nation's school system, based on meritocracy (rather than political or family patronage) and democratisation (with universal access to secondary schools). It reached
7003-809: The Guinness Trust . The principle of philanthropic intention with capitalist return was given the label "five per cent philanthropy." In 1863, the Swiss businessman Henry Dunant used his fortune to fund the Geneva Society for Public Welfare, which became the International Committee of the Red Cross . During the Franco-Prussian War of 1870, Dunant personally led Red Cross delegations that treated soldiers. He shared
7152-493: The McKnight Foundation . He succeeded John Marshall III who had led the foundation for 19 years as president and CEO. Kresge has practiced strategic philanthropy since completing a transition that began in 2007. Long known for its exclusive use of the challenge grant to help local communities raise funds for major construction and renovation projects, it now employs an array of funding methods to address and advance
7301-579: The Michigan Constitution and ordered Governor Rick Snyder to withdraw the filing immediately. On July 23, an appeals court stayed the circuit court ruling pending future rulings on Michigan Attorney General Bill Schuette 's appeal. On July 24, the Bankruptcy Court added its own, federal stay of the state court proceedings. On August 2, the bankruptcy court set a hearing date of October 23, 2013, for trial on any objections to
7450-609: The Nazi regime and other devastation by 1945, seriously undermined and weakened the opportunities for widespread philanthropy in Germany. The civil society so elaborately built up in the 19th century was dead by 1945. However, by the 1950s, as the " economic miracle " was restoring German prosperity, the old aristocracy was defunct, and middle-class philanthropy started to return to importance. The Commission for Relief in Belgium (CRB)
7599-565: The Rockefeller Foundation was opening offices in Europe. It launched medical and scientific projects in Britain, France, Germany, Spain, and elsewhere. It supported the health projects of the League of Nations . By the 1950s, it was investing heavily in the Green Revolution , especially the work by Norman Borlaug that enabled India, Mexico, and many poor countries to upgrade their agricultural productivity dramatically. With
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#17327839040377748-683: The UAW , the AFSCME , the city's General Retirement System and Police and Fire Retirement System, the Detroit Fire Fighters Association and the Detroit Police Officers Association (and two levels of associations of higher-ranking police officers). Numerous individuals were also among those filing objections, including some in the form of handwritten letters. Attorney General Schuette filed
7897-583: The UN Relief and Rehabilitation Administration (UNRRA) as the primary humanitarian agency after 1945. The French Red Cross played a minor role in the war with Germany (1870–71). After that, it became a major factor in shaping French civil society as a non-religious humanitarian organization. It was closely tied to the army's Service de Santé . By 1914 it operated one thousand local committees with 164,000 members, 21,500 trained nurses, and over 27 million French francs in assets. The Pasteur Institute had
8046-633: The University of Pennsylvania – as well as the American Philosophical Society (1743), to enable scientific researchers from all 13 colonies to communicate. By the 1820s, newly rich American businessmen were initiating philanthropic work, especially with respect to private colleges and hospitals. George Peabody (1795–1869) is the acknowledged father of modern philanthropy. A financier based in Baltimore and London , in
8195-574: The original idealism had eroded, so he advocated philanthropic benefaction as a way of life. Though his context was Christian, his idea was also characteristically American and explicitly Classical , on the threshold of the Enlightenment . Benjamin Franklin (1706–1790) was an activist and theorist of American philanthropy. He was much influenced by Daniel Defoe 's An Essay upon Projects (1697) and Cotton Mather 's Bonifacius: an essay upon
8344-472: The "love of humanity." In London, prior to the 18th century, parochial and civic charities were typically established by bequests and operated by local church parishes (such as St Dionis Backchurch ) or guilds (such as the Carpenters' Company) . During the 18th century, however, "a more activist and explicitly Protestant tradition of direct charitable engagement during life" took hold, exemplified by
8493-464: The $ 370 million raised to improve the city's finances. Kresge's CEO Rapson was in large part responsible for organizing several organizations that came together to raise the funds necessary for the plan. The organization started Kresge Innovative Projects: Detroit (KIPD) in 2015 with a $ 5-million pilot program to award small grants to restore neighborhoods in Detroit. The program was relaunched in 2018 with $ 6 million in additional funds. As of August 2020,
8642-615: The 1860s, he began to endow libraries and museums in the United States and also funded housing for poor people in London. His activities became a model for Andrew Carnegie and many others. Andrew Carnegie (1835–1919) was the most influential leader of philanthropy on a national (rather than local) scale. After selling his steel company in 1901 he devoted himself to establishing philanthropic organizations and to making direct contributions to many educational, cultural, and research institutions. He financed over 2,500 public libraries built across
8791-572: The 1890s revealed a total wealth of £76 million, of which £20 million was bequeathed to charities. By 1900 London charities enjoyed an annual income of about £8.5 million. Led by the energetic Lord Shaftesbury (1801–1885), philanthropists organized themselves. In 1869 they set up the Charity Organisation Society . It was a federation of district committees, one in each of the 42 Poor Law divisions. Its central office had experts in coordination and guidance, thereby maximizing
8940-542: The 1970s and 80s. After unions agreed to contribute money towards the settlement, the Michigan House passed legislation with major bipartisan support on May 22. Governor Snyder called the legislative package an opportunity to change the direction of Detroit. The state Senate would follow on June 3 and soon after. Upon passage, the Detroit News called the final legislative package a "grand piece of work," and
9089-635: The Detroit Riverfront Conservancy as a nonprofit to build and operate the Detroit riverfront. The Kresge Foundation gave a challenge grant of $ 50 million to the conservancy which was, at the time, the largest grant awarded by the foundation. Over the following two decades, the conservancy has restored and built out 3.5 miles (5.6 km) of River Walk along the Detroit International Riverfront between Belle Isle and Joe Louis Arena , later to be extended to
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#17327839040379238-482: The Detroit-Windsor Tunnel and 30-year lease of the underground garage at Grand Circus Park. On October 16, lawyers for the city and Financial Guaranty Insurance Company (FGIC), a bond insurer with a $ 1 billion claim, disclosed in court that they had reached a deal to settle the company's claims. Under the deal, the city and state would pay for the demolition of the city-owned Joe Louis Arena once
9387-455: The Grand Bargain; the city, governor and others pushing for the deal viewed that as too low to get the state legislature on board. Ultimately, the DIA would agree to contribute $ 100 million. In May 2014, legislation was introduced giving Detroit's retirement systems a $ 194.8 million lump sum as part of the state's $ 350 million commitment. If pensioners accepted the deal, they would not be able to sue
9536-550: The Kresge Foundation in Detroit . Twelve years earlier, he and partner John G. McCrory opened the first 5-and-10-cent store in Memphis, Tennessee , and parlayed the concept and operations into a chain of stores that were incorporated as the S.S. Kresge Company. In 1977, the enterprise became known as Kmart . The Kresge Foundation and Kmart are no longer affiliated. Since 2006, the foundation has been led by Rip Rapson, formerly of
9685-698: The Michigan constitution by impairing pension payments and ordered Snyder to withdraw the filing: Snyder has appealed the motion, and Aquilina indicated she was sending a copy of her ruling to President Obama. While under Article IX, Section 24, of the Michigan Constitution, neither the state nor any of its "political subdivisions" are permitted to default on the accrued financial benefits of their pension plans or retirement systems, federal law may allow bankruptcy judges to renegotiate pensions of municipalities in bankruptcy. Many consider public pension benefits of existing retirees "virtually untouchable";
9834-416: The Michigan state government was taking financial control of the city of Detroit, as it viewed that Detroit failed to meet deadlines set by the state government. In accordance with Public Act 72 of 1990 , the state government's Local Emergency Financial Assistance Loan Board appointed Kevyn Orr emergency financial manager of Detroit following a declaration of financial emergency. As emergency manager, Orr
9983-495: The Red Wings move into the new arena. After demolition, FGIC would receive the arena site and an adjacent parking lot, giving the company nearly 9 acres (3.6 ha) for redevelopment. On November 7, 2014, Judge Rhodes accepted the city's plan of adjustment, 17 months after the city had filed bankruptcy—a far shorter time frame that had been predicted based on other municipal bankruptcies. At the hearing Rhodes remarked, "We have used
10132-431: The U.S. Court of Appeals for the Sixth Circuit, rather than the regular route of an appeal first to the federal district court, in a separate motion. AFSCME immediately filed a notice of appeal of the ruling. It is expected that the independently managed pension funds for city workers will join in the appeal. Detroit's teachers' union will appeal the bankruptcy ruling according to Randi Weingarten , national president of
10281-437: The US and Europe, and do not have a public fundraising requirement. Public Ancillary Funds include community foundations, some corporate foundations, and foundations that solely support single organisations such as hospitals, schools, museums, and art galleries. They must raise funds from the general public. Traditional philanthropy and impact investment can be distinguished by how they serve society. Traditional philanthropy
10430-463: The United States and Europe, the Centre for Asian Philanthropy and Society (CAPS) produces a study of the sector every two years. In 2020, its research found that if Asia were to donate the equivalent of two percent of its GDP, the same as the United States, it would unleash US$ 507 billion ( HK$ 3.9 trillion) annually, more than 11 times the foreign aid flowing into the region every year and one-third of
10579-438: The United States and abroad. He also funded Carnegie Hall in New York City and the Peace Palace in the Netherlands. His final and largest project was the Carnegie Corporation of New York , founded in 1911 with a US$ 25 million endowment, later enlarged to US$ 135 million. Carnegie Corporation has endowed or otherwise helped to establish institutions that include the Russian Research Center at Harvard University (now known as
10728-417: The United States that are food-focused in areas that lack access to fresh foods. In November 2020, the foundation set aside $ 30 million over three years for nearly 60 organizations focused on racial justice in Detroit, Memphis, Fresno , and New Orleans as well as national civil-rights organizations. Among these were 20 organizations in Detroit that received a total of $ 8 million. The Kresge Foundation made
10877-503: The acquisition of most of the stock of the Ford Motor Company in the late 1940s, the Ford Foundation became the largest American philanthropy, splitting its activities between the United States and the rest of the world. Outside the United States, it established a network of human rights organizations, promoted democracy, gave large numbers of fellowships for young leaders to study in the United States, and invested heavily in
11026-655: The agency waited for federal funds from the U.S. Congress to make their way through legislative hurdles. In April, Kresge announced that it would contribute $ 4.4 million, including $ 2 million in Detroit, to help with the distribution of COVID-19 vaccines . Kresge's education program awards more than $ 10 million in grants to organizations focused on higher education . The foundation favors programs directed at low income students, "especially those living in cities, and underrepresented racial and ethnic groups, including first-generation students; Black, Indigenous, and people of color; veterans; and immigrant students". The education program
11175-588: The annual amount needed globally to meet the sustainable development goals by 2030. Structured giving in Australia through foundations is slowly growing, although public data on the philanthropic sector is sparse. There is no public registry of philanthropic foundations as distinct from charities more generally. Two foundation types for which some data is available are Private Ancillary Funds (PAFs) and Public Ancillary Funds (PubAFs). Private Ancillary Funds have some similarities to private family foundations in
11324-406: The appointment of a fee examiner to review the fees incurred by attorneys and other professionals for the City, and invited comments on naming an appropriate person to fill this role. The court presented a proposed order establishing a mediation process aimed at facilitating settlement of disputed issues that will arise in the case, and inviting comments on the naming of an appropriate mediator, with
11473-416: The arena, and additional retail, office, residential and hotel space the developer has committed to build as part of the overall project, it is expected to create about 8,000 construction jobs, with work due to start in 2014. On July 19, 2013, Ingham County Circuit Court Judge Rosemarie Aquilina ruled, using a typed statement with hand-written notes attached, that the bankruptcy filing by Detroit violated
11622-519: The bailouts in recent years of Detroit-area automakers General Motors and Chrysler . On July 17, just one day before the bankruptcy filing, Detroit's two largest municipal pension funds filed suit in state court to prevent Orr from cutting retiree benefits as part of his efforts to cut the city's budget deficit. After several months of negotiations, Orr was ultimately unable to come to a deal with Detroit's creditors, unions, and pension boards and therefore filed for Chapter 9 bankruptcy protection in
11771-486: The bankruptcy case, for the October 23 trial. On December 3, Judge Rhodes ruled Detroit eligible for bankruptcy protection. In his ruling the judge determined that Detroit is insolvent, and that the city could not have practically negotiated on a plan of adjustment pre-bankruptcy with its thousands of creditors. The judge declined to find that the city had negotiated in good faith with creditors pre-bankruptcy, based on
11920-407: The bankruptcy case. Judge Rhodes, whose judicial salary is set by Congress, had up to 14 days to determine whether the agreed-upon fees are reasonable. After the Chapter 9 eligibility ruling, emergency manager Kevyn Orr said the city will seek to file a plan for adjustment of its debts under bankruptcy law by early January. Orr said that negotiations with unions for the city's workers on the terms of
12069-489: The bankruptcy filing was credit negative for Detroit and that it created an "unprecedented litigation scenario," which could impact services city residents receive, as well as how much bondholders would recover from Detroit. Business and labor leaders reacted to the filing. Detroit union leaders called Orr's move to declare bankruptcy premature due to ongoing financial negotiations with creditors, unions, and pension boards, but also stated that employees will continue to work in
12218-577: The bankruptcy. Some of the fees are: Orr used $ 95 million earmarked for unsecured bond debt and pension payments to Detroit's restructuring initiatives, which caused Detroit to first miss bond payments in June 2013. Fees paid to three Jones Day partners who billed the city for more than $ 1,000 per hour of their time, as well as for trips to or from vacation homes, proved particularly controversial, but their former partner Kevyn Orr did not consider them overbilling. On December 31, city officials disclosed that
12367-590: The cash needed without raising taxes. American money proved invaluable. The Rockefeller Foundation opened an office in Paris and helped design and fund France's modern public health system under the National Institute of Hygiene. It also set up schools to train physicians and nurses. The history of modern philanthropy on the European continent is especially important in the case of Germany, which became
12516-498: The city by Michigan Governor Rick Snyder . Orr's subsequent negotiations sought to get creditors to willingly agree to debt restructuring and accept less than initially agreed on Detroit's debt, and were ultimately unsuccessful. On July 19, 2013, Judge Rosemarie Aquilina of the Thirtieth Judicial Circuit Court of Michigan ruled the bankruptcy filing by Detroit violated Article IX, Section 24, of
12665-417: The city satisfied, and finds that the city met the minimum criteria for eligibility. The memorandum discusses in depth the major objections raised by various parties to the city's eligibility, and finds that the objections are either unfounded in law or insufficient factually to deny the city eligibility for Chapter 9. The judge concluded the memorandum with a reminder to all interested parties that eligibility
12814-468: The city's budget was going toward retiree benefits. Declining city revenue led to the cash-flow shortfall in Detroit. In 2013, Detroit’s revenue had fallen over 20% from its 2008 level. Revenue fell due to Detroit’s declining population, which reduced the property and income tax base. Rising foreclosures and unemployment following the Great Recession reduced property values and further reduced
12963-515: The city's eligibility for Chapter 9 bankruptcy, and March 1, 2014, as the deadline for the city to file a bankruptcy plan. After a nine-day trial on eligibility, the Bankruptcy Court on December 3, 2013, ruled Detroit eligible for Chapter 9 on its $ 18.5 billion debt. On June 3, 2014 the Michigan Legislature passed a package of bills to help Detroit avoid further bankruptcy proceedings. On the same day, Governor Snyder pledged to sign
13112-472: The city's general fund paid $ 164.91 million in fees relating to the bankruptcy, although they did not reveal concessions made by various parties pursuant to a mediation order, said to be worth about $ 25 million. The city's plan of adjustment allotted $ 177 million for legal and consulting fees. Disclosed fees included: Furthermore, the two pension funds paid attorneys at Clark Hill $ 6.25 million and financial advisers at Greenhill & Co. $ 5.71 million to fight
13261-574: The city, which consented to do so. When a fee examiner is appointed, the professional expenses of the Retiree Committee will also be subject to the examiner's review. On August 19, Rhodes appointed Robert M. Fishman, an attorney with the Chicago law firm Shaw Fishman Glantz and Tobin, as the fee examiner. Fishman's own fees are charged at $ 600 per hour. Another attorney who has served as an expert witness in fee matters commented that, while
13410-433: The clash between state constitutional protections of vested public pension rights and the general ability of the bankruptcy process to modify debt obligations has yet to be fully tested in any Chapter 9 proceeding. On July 22, Aquilina delayed to July 29 her hearing on retiree funds request for an order directing Orr and Snyder to withdraw the bankruptcy filing and desist from any effort to reduce vested pension benefits in
13559-441: The country, and one that 'set the pattern for incorporated associational charities' in general." The hospital "marked the first great milestone in the creation of these new-style charities." Jonas Hanway , another notable philanthropist of the era, established The Marine Society in 1756 as the first seafarer's charity, in a bid to aid the recruitment of men to the navy . By 1763, the society had recruited over 10,000 men and it
13708-454: The court having initially proposed Chief Judge Gerald Rosen of the U.S. District Court for the Eastern District of Michigan. The court ordered the Office of the U.S. Trustee to appoint an official committee to represent retired employees of the city, with the U.S. Trustee to select the members to serve on this Retiree Committee. The professional expenses of the Retiree Committee will be paid by
13857-697: The creation of the Society for the Promotion of Christian Knowledge and Societies for the Reformation of Manners . In 1739, Thomas Coram , appalled by the number of abandoned children living on the streets of London, received a royal charter to establish the Foundling Hospital to look after these unwanted orphans in Lamb's Conduit Fields, Bloomsbury . This was "the first children's charity in
14006-523: The deal. On September 10, Detroit reached a deal with three Michigan counties over regional water and sewer services that could eliminate one roadblock to federal court approval of the city's plan to adjust its debt and exit bankruptcy. The deal with Oakland, Wayne and Macomb counties created the Great Lakes Water Authority , a new regional water and sewer authority, but allowed Detroit to maintain control of its local system. The deal
14155-492: The dispute between the city and the retiree funds over the city's authorization to file the bankruptcy case. On July 23, a three-judge panel of the Michigan Court of Appeals ruled unanimously to stay the proceedings in the state court actions, pending a resolution of the state's appeal of Aquilina's rulings directing withdrawal of the bankruptcy filing. In another development in the bankruptcy case, Rhodes indicated in
14304-425: The environment. As a result, development agencies have seen increased demands for accountability as they face greater pressure to fit with current developmental agendas. Philanthrocapitalism differs from traditional philanthropy in how it operates. Traditional philanthropy is about charity, mercy, and selfless devotion improving recipients' wellbeing. Philanthrocapitalism, is philanthropy transformed by business and
14453-403: The face of their protected status under the Michigan Constitution. This legal move allowed the bankruptcy court to weigh in. Bankruptcy Judge Steven Rhodes scheduled a hearing on July 24, on the city's request that the retiree state court suit be stayed because of the pending federal bankruptcy case. Rhodes indicated that the bankruptcy court , not the state court , has the authority to resolve
14602-570: The federal stay and ruled that Orr is a validly authorized officer to act for the city in the bankruptcy. Rhodes ordered that three suits filed by city employees, retirees and pension funds in State Court be halted. He made it clear that all legal battles will be fought in the Federal Bankruptcy Court Rhodes emphasized that he was not on July 24 deciding whether the city met the statutory criteria for eligibility for
14751-594: The fees will no doubt be large, legal fees are always a small percentage of what is at stake in a bankruptcy of this magnitude. On August 13, Judge Rhodes, after receiving input from various parties in the bankruptcy, confirmed his appointment of Judge Rosen of the District Court to serve as a mediator in the Chapter 9 case process. The mediator may bring parties together for "facilitative mediation" on any issues that Rhodes chooses to refer to mediation. Any mediation proceedings held will be confidential, except for
14900-647: The first Nobel Peace Prize for this work in 1901. The International Committee of the Red Cross (ICRC) played a major role in working with POWs on all sides in World War II . It was in a cash-starved position when the war began in 1939, but quickly mobilized its national offices to set up a Central Prisoner of War Agency. For example, it provided food, mail and assistance to 365,000 British and Commonwealth soldiers and civilians held captive. Suspicions, especially by London, of ICRC as too tolerant or even complicit with Nazi Germany led to its side-lining in favour of
15049-533: The food to Belgium and controlling it there. For example, the CRB shipped 697,116,000 pounds of flour to Belgium. Biographer George Nash finds that by the end of 1916, Hoover "stood preeminent in the greatest humanitarian undertaking the world had ever seen." Biographer William Leuchtenburg adds, "He had raised and spent millions of dollars, with trifling overhead and not a penny lost to fraud. At its peak, his organization fed nine million Belgians and French daily. When
15198-571: The foundation contributed $ 50 million to the streetcar project which opened in May 2017 at a total cost of $ 187 million. A gift from the foundation also allowed free rides on the QLine until early September of that year and at various periods in subsequent years. In January 2013, the foundation pledged $ 150 million to aid in the implementation of a long-ranging, comprehensive framework for Detroit's future, also known as The Detroit Future City plan. That year,
15347-404: The foundation pledged to ramp up investment in women- and minority-owned firms to 25% by 2025. In November 2020, the foundation sent a standardized questionnaire to all of its 150 money-managing firms to measure the diversity of their ownership and compel these firms to diversify their management. In the early 2000s, together with the City of Detroit and General Motors, the Kresge Foundation formed
15496-476: The foundation's Board of Trustees approved 316 awards totaling $ 122 million; $ 128 million was paid out to grantees over the course of the year. Kresge's Social Investment Practice made another $ 17.7 million available to organizations whose efforts support foundation goals through program-related investments. The foundation also played a major part in organizing the "grand bargain" to rescue the city of Detroit from bankruptcy in 2013 . Kresge contributed $ 100 million of
15645-483: The fund for the Memphis Medical District to improve housing and commercial spaces in the neighborhood which has a high poverty rate and a concentration of medical facilities. Philanthropic The word philanthropy comes from Ancient Greek φιλανθρωπία (philanthrōpía) 'love of humanity ', from philo- 'to love, be fond of' and anthrōpos 'humankind, mankind'. In
15794-561: The general backing of taxpayers, described by Florida bond finance director Ben Watkins as "[having] been the gold standard of the municipal-bond market". The offer by Kevyn Orr to settle these for less than 20% face value, and doubts regarding the willingness of Michigan to assume the debts, was predicted to drive up borrowing costs of nearby municipalities. This effect has been seen in regard to localities in Michigan. Three have so far had to postpone new bond offerings or face higher interest rates. However, this concern has not materialized on
15943-556: The good (1710). Franklin attempted to motivate his fellow Philadelphians into projects for the betterment of the city: examples included the Library Company of Philadelphia (the first American subscription library), the fire department, the police force, street lighting, and a hospital. A world-class physicist himself, he promoted scientific organizations including the Philadelphia Academy (1751) – which became
16092-476: The government of Detroit stopped making payments on some of its unsecured debts , including pension obligations. In an effort to avoid bankruptcy, Orr sought to persuade some of Detroit's creditors to accept 10% of the amount they are owed. White House Press Secretary Jay Carney said, during a press conference in July, that he knew of no plans by President Obama to bail out the Detroit city government similar to
16241-511: The government to bail out the city, saying "He is bailing them out over my dead body, because we don’t have any money in Washington." Snyder also stated that he did not support a government bail out. "It's not just about putting more money in a situation," he said. "It's about better services to citizens again. It's about accountable government." Detroit's debts included $ 369 million in unlimited general obligation bonds, bonds issued with
16390-421: The governor and other state agencies in the bankruptcy; different sets of attorneys in the attorney general's office will represent these divergent positions. A spokesperson for emergency manager Orr said that Orr "respects the attorney general’s concern for Detroit’s pensioners. This is an important issue that will be decided, appropriately, by a federal bankruptcy judge." On August 2, the bankruptcy court held
16539-461: The housing conditions of the working classes by building new homes for them, while at the same time receiving a competitive rate of return on any investment. This was one of the first housing associations , a philanthropic endeavor that flourished in the second half of the nineteenth century, brought about by the growth of the middle class . Later associations included the Peabody Trust , and
16688-470: The impact of charitable giving to the poor. Many of the charities were designed to alleviate the harsh living conditions in the slums. such as the Labourer's Friend Society founded in 1830. This included the promotion of allotment of land to labourers for "cottage husbandry" that later became the allotment movement. In 1844 it became the first Model Dwellings Company —an organization that sought to improve
16837-593: The importance of impact and change, they invest in different sectors of society, including housing, infrastructure, healthcare and energy. A suggested explanation for the preference for impact investment philanthropy to traditional philanthropy is the gaining prominence of the Sustainable Development Goals (SDGs) since 2015. Almost every SDG is linked to environmental protection and sustainability because of rising concerns about how globalisation , consumerism , and population growth may affect
16986-425: The importance of philanthropic support in promoting equity in different areas. For example, Christopherson et al. highlight the need to prioritize underrepresented groups, promote equitable partnerships, and advocate for diverse leadership within the scientific community . In the healthcare sector, Thompson et al. emphasize the role of philanthropy in empowering communities to reduce health disparities and address
17135-469: The love of God, but also to the love of our neighbor". Sir Francis Bacon considered philanthrôpía to be synonymous with "goodness", correlated with the Aristotelian conception of virtue as consciously instilled habits of good behaviour. Samuel Johnson simply defined philanthropy as "love of mankind; good nature". This definition still survives today and is often cited more gender-neutrally as
17284-467: The market, where profit-oriented business models are designed that work for the good of humanity. Share value companies are an example. They help develop and deliver curricula in education, strengthen their own businesses and improve the job prospects of people. Firms improve social outcomes, but while they do so, they also benefit themselves. The rise of philanthrocapitalism can be attributed to global capitalism . Therefore, philanthropy has been seen as
17433-688: The middle class in the 19th century. By 1869 there were over 200 London charities with an annual income, all together, of about £ 2 million. By 1885, rapid growth had produced over 1000 London charities, with an income of about £4.5 million. They included a wide range of religious and secular goals, with the American import, YMCA , as one of the largest, and many small ones, such as the Metropolitan Drinking Fountain Association. In addition to making annual donations, increasingly wealthy industrialists and financiers left generous sums in their wills. A sample of 466 wills in
17582-481: The military. They concentrated on support for social welfare , higher education , and cultural institutions, as well as working to alleviate the hardships brought on by rapid industrialization . The bourgeoisie (upper-middle class) was defeated in its effort to gain political control in 1848 , but it still had enough money and organizational skills that could be employed through philanthropic agencies to provide an alternative power base for its worldview. Religion
17731-481: The neighboring city of Windsor, Ontario , has said that his city would consider purchasing Detroit's half of the international Detroit–Windsor Tunnel if it is offered for sale. Yields on bonds issued by the city of Detroit increased on July 18 to record highs, as investors considered the potential effects of the bankruptcy filing. Rates had already escalated when yields jumped from 8.39% in mid-May to 16% in mid-June 2013. The credit rating agency Moody's said that
17880-527: The next 20 years from foundations, private donors, the DIA, and the state that would be used to shore up underfunded pensions. This would save the DIA from selling its art; the DIA would then become a private organization, releasing it from city ownership and protecting its collection forever. When asked why they donated, Darren Walker, president of the Ford Foundation said "If you don't have great cities, you won't have great nations," he said. "Detroit
18029-510: The package of bills. After a two-month trial, Judge Steven W. Rhodes confirmed the city's plan of adjustment on November 7, 2014, paving the way for Detroit to exit bankruptcy. Creditors and insurers were expected to absorb losses totaling $ 7 billion, with creditors receiving between 14 and 75 cents on the dollar. In April 2012, Detroit Mayor Dave Bing and the nine-member City Council entered into an agreement with Michigan Governor Rick Snyder that allowed for greater fiscal oversight by
18178-412: The phrase 'the Grand Bargain' to describe the group of agreements that will fix the city's pension problem. That description is entirely fitting. In our nation, we join together in the promise and in the ideal of a much grander bargain. It is the bargain by which we interact with each other and with our government, all for the common good. That grander bargain, enshrined in our Constitution, is democracy. It
18327-399: The political threat posed by the socialistic labor unions . The middle classes, however, made the most use of the new welfare state, in terms of heavy use of museums, gymnasiums (high schools), universities, scholarships, and hospitals. For example, state funding for universities and gymnasiums covered only a fraction of the cost; private philanthropy became essential. 19th-century Germany
18476-520: The population, as over two-thirds of businesses in Detroit closed between 1972 and 2015. Many of these residents and jobs left Detroit for the surrounding suburbs during the process of white flight from the city. White flight occurred in conjunction with federal housing policy and Detroit real estate industry practices in the decades following World War II that excluded black Detroit residents from loan opportunities and confined them to neighborhoods with continually deteriorating housing. In June 2013,
18625-473: The program awarded grants to 127 projects in neighborhoods around the city. In 2017, the Kresge Foundation invested $ 16 million to stabilize the finances of Marygrove College in Detroit and help develop a plan to transition the 53-acre (21-hectare) forested campus via the Marygrove Conservancy, a nonprofit organization created by the foundation in partnership with University of Michigan and
18774-652: The property and income tax base. Additionally, Michigan decreased state revenue sharing with Detroit due to declining population numbers reported in the 2010 census. City expenses also contributed to the cash-flow shortfall. City operating expenses decreased by 38% between 2008 and 2013 through employee layoffs and reduction of employee healthcare and benefits. At the same time, debt payments, retiree healthcare and pension payments, and most significantly, financial expenses, increased between 2008 and 2013. Financial expenses included certificates of participation to finance $ 1.6 billion in debt, which required termination payments as
18923-588: The purely legal issues of Detroit's eligibility for Chapter 9 be held on October 15–16, rather than the October 23 date of the full trial on eligibility. Rhodes declared early consideration of the purely legal issues, such as Detroit's authorization under state law for the bankruptcy filing, would expedite determination of eligibility under the Bankruptcy Code. At the same time, Rhodes reserved issues requiring factual determinations, such as whether Detroit negotiated in good faith with its creditors before filing
19072-426: The religious groups used financial endowments, which multiplied in number and wealth as Germany grew richer. Each was devoted to a specific benefit to that religious community, and each had a board of trustees; laymen donated their time to public service. Chancellor Otto von Bismarck , an upper class Junker , used his state-sponsored philanthropy, in the form of his invention of the modern welfare state, to neutralize
19221-465: The root causes of these disparities. Research by Chandra et al. demonstrates the potential of strategic philanthropy to tackle health inequalities through initiatives that focus on prevention, early intervention, and building community capacity. Similarly, a report by the Bridgespan Group suggests that philanthropy can create systemic change by investing in long-term solutions that address
19370-521: The sale of valuable city assets, but other arrangements or regulations make it difficult to sell some of them. For instance, valuable works at the Detroit Institute of Arts cannot be sold due to private and city agreements, as well as state law; other city assets that could not be sold include the Coleman A. Young International Airport and the Belle Isle Park . Eddie Francis , the mayor of
19519-577: The second century CE , Plutarch used the Greek concept of philanthrôpía to describe superior human beings. During the Middle Ages , philanthrôpía was superseded in Europe by the Christian virtue of charity ( Latin : caritas ) in the sense of selfless love, valued for salvation and escape from purgatory . Thomas Aquinas held that "the habit of charity extends not only to
19668-412: The settlement three weeks later, saying that it was "just too high a price to pay". After Orr threatened to sue the two banks, they eventually settled for $ 85 million. By January 2014, the city would reach a deal with some of its toughest opponents (three bond insurers) to whom they owed $ 388 million on the city's general obligation bonds by agreeing to pay 74%. The DIA initially offered $ 50 million toward
19817-542: The state government in exchange for the state's providing Detroit help with its finances. A financial review team was appointed in December 2012 to conduct a 60-day review. The team consisted of Andy Dillon (Treasurer of Michigan), Thomas McTavish (Michigan Chief Financial Officer and Auditor General), Ken Whippel ( Korn/Ferry ), Darrell Burks ( PricewaterhouseCoopers ), Ronald Goldsberry ( Deloitte Consulting ) and Frederick Headen. In February 2013, Snyder announced that
19966-677: The state over pension reductions; this was seen as a critical step toward getting support from the Republican-majority legislature. Some Republicans, such as Speaker of the House Jase Bolger, wanted unions to make contributions to help in the Detroit settlement. Another condition sought was that of a financial review commission modeled after the New York State Financial Control Board that oversaw New York City's troubled finances during
20115-481: The study and application of modern medicine, higher education, and scientific research. Of the US$ 530 million the elder Rockefeller gave away, US$ 450 million went to medicine. Their leading advisor Frederick Taylor Gates launched several large philanthropic projects staffed by experts who sought to address problems systematically at the roots rather than let the recipients deal only with their immediate concerns. By 1920,
20264-406: The terms of any settlement that may be reached and presented to the bankruptcy court for approval. On August 21, Rosen - as permitted by Rhodes's order appointing him - appointed additional mediators to assist him. As Rosen said, mediation in this case will amount to a monumental task, involving "thousands of claims and issues." The additional mediators are: U.S. District Judge Victoria Roberts ,
20413-428: The testimony at the eligibility trial; he noted that the meetings the city held with creditors leading up to the bankruptcy filing did not meet the statutory good-faith requirement. However, he found the city eligible for Chapter 9 on the statutory alternative ground of impracticability of negotiating with so many creditors. The judge also found that the city could potentially impair the pensions of city retirees through
20562-452: The underlying causes of social issues, including those related to science and health disparities. To advance equity in science and healthcare, philanthropists can adopt several key strategies: Through these approaches, philanthropy can significantly promote equity within scientific and health communities, leading to more inclusive and effective advancements. Philanthropy is defined differently by different groups of people; many define it as
20711-700: The war ended in late 1918, Hoover took control of the American Relief Administration (ARA), with the mission of food to Central and Eastern Europe. The ARA fed millions. U.S. government funding for the ARA expired in the summer of 1919, and Hoover transformed the ARA into a private organization, raising millions of dollars from private donors. Under the auspices of the ARA, the European Children's Fund fed millions of starving children. When attacked for distributing food to Russia, which
20860-465: Was an international (predominantly American) organization that arranged for the supply of food to German-occupied Belgium and northern France during the First World War. It was led by Herbert Hoover . Between 1914 and 1919, the CRB operated entirely with voluntary efforts and was able to feed eleven million Belgians by raising money, obtaining voluntary contributions of money and food, shipping
21009-510: Was bought with city money. Judge Rhodes had to decide if the other 95% of this collection could be monetized in order to satisfy the claims of the bankruptcy creditors. Of particular interest was whether the art collection would be needed to satisfy the pension claims of its retirees. Chief Judge for the Eastern District Michigan Gerald Rosen , who had taken on the role of chief mediator, and Rhodes sought
21158-405: Was crucial to adjusting the city's $ 18 billion of debt and helping it exit its historically unprecedented municipal bankruptcy. Detroit would reach deals with more of its creditors throughout the fall. In September it came to terms with bond insurer Syncora on its $ 400 million claim; Syncora would receive $ 25 million in cash and bonds, as well as a 20-year lease extension on their P3 operation of
21307-633: Was divisive in Germany, as Protestants, Catholics, and Jews used alternative philanthropic strategies. The Catholics, for example, continued their medieval practice of using financial donations in their wills to lighten their punishment in purgatory after death. The Protestants did not believe in purgatory, but made a strong commitment to improving their communities there and then. Conservative Protestants raised concerns about deviant sexuality, alcoholism, and socialism, as well as illegitimate births. They used philanthropy to try to eradicate what they considered as "social evils" that were seen as utterly sinful. All
21456-530: Was even more oriented toward civic improvement than Britain or the United States, when measured in voluntary private funding for public purposes. Indeed, such German institutions as the kindergarten , the research university , and the welfare state became models copied by the Anglo-Saxons. The heavy human and economic losses of the First World War , the financial crises of the 1920s, as well as
21605-464: Was granted the power to rewrite Detroit's contracts and to liquidate city assets. A report on the financial health of Detroit was released by Orr in May 2013. The report stated that Detroit is "clearly insolvent on a cash flow basis" and that the city would finish its current fiscal year with a US$ 162 million cash-flow shortfall. It also stated that the city's budget deficit would reach $ 386 million in less than two months and that one-third of
21754-687: Was incorporated in 1772. Hanway was also instrumental in establishing the Magdalen Hospital to rehabilitate prostitutes. These organizations were funded by subscriptions and run as voluntary associations. They raised public awareness of their activities through the emerging popular press and were generally held in high social regard—some charities received state recognition in the form of the Royal Charter . Philanthropists, such as anti-slavery campaigner William Wilberforce , began to adopt active campaigning roles, where they would champion
21903-832: Was no better, and that program closed in 1977. While charity has a long history in Asia, as of 2018 philanthropy or a systematic approach to doing good remains nascent. Chinese philosopher Mozi ( c. 470 – c. 391 BCE ) developed the concept of "universal love" ( jiān'ài , 兼愛 ), a reaction against perceived over-attachment to family and clan structures within Confucianism . Other interpretations of Confucianism see concern for others as an extension of benevolence. Muslims in countries such as Indonesia are bound zakat (almsgiving), while Buddhists and Christians throughout Asia may participate in philanthropic activities. In India, corporate social responsibility (CSR)
22052-469: Was reported that the city would continue with plans for a bond issue to fund a new $ 444 million arena for the Detroit Red Wings . Repayment of the bonds would be split between taxpayers and developers of the arena. Both Snyder and Orr acknowledged concerns raised about the expense, but stated that continuing the project makes good economic sense even with the context of Detroit's bankruptcy. With
22201-572: Was under Bolshevik control, Hoover snapped, "Twenty million people are starving. Whatever their politics, they shall be fed!" The first corporation founded in the Thirteen Colonies was Harvard College (1636), designed primarily to train young men for the clergy. A leading theorist was the Puritan theologian Cotton Mather (1662–1728), who in 1710 published a widely read essay, "Bonifacius, or an Essay to Do Good". Mather worried that
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