Foundations Philanthr(q)y Journal of North Carolina Super salaries The average salary for U.S. foundation chief executives is $97,400, according to a snrvey by The Councii on Foundations. October 1993 Scrutinizing sources ACLU flap raises issue of tobacco taint The American Civil Liberties Union’s acceptance of $500,000 in donations from Philip Morris USA has revived questions on whether tobacco industry contri butions irrfluence the agenda of nonprofits. Heads of North Carolina foimdations created by tobacco fortunes say the issue has seldom been raised by their grantees, but many foundation heads are sensitive to public per ceptions about tobacco money. By Barbara Solow he American Civil Liberties I Union is fending off criti- I cism that more than $500,000 in gifts froRi Philip Morris USA has influenced its nonprofit lob bying agenda. A report published in July by the Advocacy Institute in Washington claims that the cigarette company’s donations to the ACLU led to the organization’s lobbying in favor of tobacco advertising and smokers’ rights. The claim has resurrected ques tions about whether there is a taint to tobacco money. In North Carolina - the center of the tobacco industry and of founda tions built on tobacco fortunes - the answer is mixed. ETHICS While leaders of Tar Heel founda tions with historic ties to tobacco say they have experienced few if any questions about the source of their grants, some tobacco company dona tions have caused controversy. Morton Mintz, author of the report on the ACLU for the nonprofit Advocacy Institute, says that in tak ing tobacco money, “the ACLU is not motivated by financial impropriety, of which there is no trace, but by absolutism” about defending corpo rate speech. Local and national ACLU leaders say that tobacco industry donations have not affected the organization’s lobbying activities. “Our position on tobacco adver tising long preceded any contrlbu- Look for TOBACCO, page 23 M Degree program in philanthropy The Indiana University Center on Philanthropy is launching the nation's first master's degree program devoted to the study of philanthropy. The new graduate program will be offered at Indiana University-Purdue University Indianapolis beginning this fall. "Heavenly design" for anonymous donors After more than two decades at Duke University, the last 10 heading its huge capital cam paign, Joel Fleishman has a new job. As president of Atlantic Philanthropic Service Co. in New York, he’ll be advis ing a group of anonymous donors who together give away an estimated $50 million a year. The new job marks the culmina tion of a career that has includ ed university teaching, fund- raising and administration, as weil as foimdation and for-profit board work. By Todd Cohen A Jl aimonides, the 10th |l /j century Jewish phi- # IXI lospher, believed a- f r I nonymous giving to be one of the hipest forms of charity. Ten centuries later, Joel Fleishman is getting a chance to pnt Maimonides’ philosophy into prac tice. Fleishman, who for 22 years at Duke University has tau^t, been an administrator and raised hundreds of millions of dollars for endow ments, last month embarked on a new job that is a culmination of his career in philanthropy. Fleishman is the new president of Atlantic Philanthropic Service Co. in New York. The for-profit consuiting firm advises anonymous clients on how to give away their money. Fleishman will have a big say in how an estimated $50 million or so is given away each year - the equiva lent of what some of the biggest foun dations give away - but without the institutional duties that a foundation president has. “It is a heavenly design,” he says. It was the anonymity of APS that helped Fleishman decide to take his new job. Fleishman, a Fayetteville native, has worn many hats in his career - inciuding writing a wine column for Vanity Fair magazine - and has been described as Duke’s “franchise” player. He has been considered in the past for the top job at numerous uni versities. He Mce declined the presi dency of Brandeis University, for example, and was a finalist for the job of chancellor at the University of North Carolina at Chapel Hill. And he recently was considered for the presidency of two universities at the same time he was talking with APS. The APS job, he says, was attrac tive for a variety of reasons. First, he will spend his time scouting for the best targets for his clients’ dollars without being burdened with the sig nificant duties that go with running a large institution. Second, he will be able to contin ue teaching at Duke. He’ll teach one course once a week each spring. Next spring, he’ll teach a course in philanthropy and voluntarism. Third, he’ll be free from having to raise money for the first time in a decade. “I was getting into a fund-raising rnt,” he says. “It was really getting to the point where friends of mine were sort of nervous every time I called them up. I was sort of tired of that. I want to have some friends left.” Fourth, he’ll have time to write again. In fact, he spent the past year finishing a book he actually began 10 years ago. His work on the book came to a vir tual halt when he was named to head Duke’s capital campaign. 'Two publishers have ex pressed interested in publishing the book, which examines ethics in politics, both for officeholders and for citi zens. Finally, he’ll be able to practice philanthropy anonymously, and enjoy charity for its own sake. “It’s pure, 100 percent unadulter ated fun.” Fleishman will be missed at Duke, where he’s worn several big hats. After earning a bachelor’s degree in history, a master’s degree in Citing Maimonides, Joel Fleishman says anony mous giving is one of the highest forms of charity. Photo by Rob Cross drama and a law degree at UNC- Chapel Hill, Fleishman earned a master’s of law at Yale Law School and worked there briefly before becoming legal assistant to then-Gov. Terry Sanford. After Sanford left office in 1965, Fleishman returned to Yale, where he taught and worked as an adminis trator, mcluding a job as assistant to then-President Kingman Brewster. Look for FLEISHMAN, page 7 Advising deep pockets New York consulting firm operates anonymously American Philanthropic Service Co. advises 11 clients on how to give away their money. While aimual giving by those clients is believed to be in the range of $50 million, their identities are not known, and very little is known about APS. By Todd Cohen 7 he biggest U.S. foundations dispense the fruits of the titans of American industry, sowing dollars earned by the likes of Ford, Kellogg, Lilly, Rockefeller, Mellon and Duke. And their largesse is huge. Grants made by the Ford Founda tion, which is the biggest foundation, totalled $240.9 million in 1991. The W.K. Kellogg Foundation, the sec ond-largest, gave away $153.9 mil lion. And the $1.2 bilhon-asset Duke Endowment in Charlotte, the 13th- largest foundation, gave away $48.3 million, according to Foundation Giving, the annual yearbook of The Foundation Center in New York.. Not mentioned in the yearbook is an organization that’s believed to give away in the range of $50 milhon a year. It’s not an oversight: The source of that charity simply is not known. 'The benefactors prefer it that way. They want to be anonymous. The anonoymous donors are clients of American Philanthropic Service Co. in New York. The 11- year-old, for- profit fundrais ing consulting company, which is known as APS, advises 11 cheats on giving away their money. The gifts are made anonymously, through checks drawn on the cheats’ banks. And the gifts are huge, al- thou^ APS and Joel Fleishman, the consulting company’s new w. pride our selves on being ener getic, listening, going around .. and really casting a very broad net. JOEL FLEISHMAN APS President president, won’t disclose details. “We don’t consider unsolicited proposals and we reaUy don’t want people out of the blue to come in with proposals” Fleishman says. “We pride ourselves on being energetic, listening, going around...and reahy casting a very broad net. What we don’t want to do is to violate the con fidentiality of our relationship with our donors. It makes it extremely dif ficult for us to operate in an anony mous fashion if there’s a figure float ing around.” Beyond the lack of public infor mation about the magnitude of giving by APS, precious httle else is known about the company. Virtuahy nothing Look for FOUNDATION, page 7 Edward James Olmos Conference focuses on LA riots Riot-related problems in Los Angeles will be the focus of a conference this month for U.S. community foundations. More than 500 are expected to attend The Fall Conference for Community Foundations Oct. 6-8 in Los Angeles, including actor Edward James Olmos. Player family gives to college The Richard L. Player family of Fayetteville pledged $100,000 to Methodist College for construction of a golf and tennis learning cen ter. The new building will honor Richard S. Player, Sr., a real estate developer and golf enthusiast. Reynolds Trust awards grant Life Plan Trust in Raleigh received a $100,000 three- year grant from the Kate B. Reynolds Charitable Trust for programs to help families caring for members with mental illnesses and disabili ties. The grant will support staff and free seminars for Winston-Salem residents. Gala honors foundation leader Cynthia Dole, founder of the Foundation of Greater Greensboro, was honored last month by the Greater Greensboro Builders Association at a gala evening on the shore of Lake Jeannette. Proceeds from the event will go to the founda tion's Housing Fund.

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