JULY 1995
VOLUME 2, ISSUE 11 / $5.00
PhikathropyJournal
Zen and the art of university maintenance
Past and future to guide Michael Hooker at UNC-CH
The University of North Carolina at Chapel
Hill has a new chancellor. Mihhael
Hooker, who has served most recently as
president of the University of
Massachusetts system, was named in
May to succeed Paul Hardin, effective
July 1.
Hooker, a 1969 graduate of UNC-CH
and a scholar of the history of philoso
phy, takes the helm of the UNC system’s
flagship school with an eye on both the
past and the future. A coal miner’s son
who came of age amid the student rebel
lion of the 1960s, he says the lessons of
the past will help him as he tries to
guide UNC-CH to meet the needs of a
society that is being radically trans
formed by communications technology.
The Philanthropy Journal spoke by
phone with Hooker about his vision for
the university before his move to North
Carolina.
JOURNAL: Carolina is completing a suc
cessful capital campaign that has raised $413
million. What will be your first step in figuring
out how to keep that momentum alive?
Q&A
HOOKER: The fact of the matter is that
nowadays colleges are almost continuously in a
capital campaign. When one ends, the next one
begins. And you really don’t want to lose the
momentum you’ve generated during the course
of a capital campaign.
The first step is to learn about what were
the most important aspects of this capital cam
paign - what intelligence was generated in this
capital campaign that can be used in the ongo
ing campaign. Always in a capital campaign,
you generate a lot of donor prospects that fhst
come to your attention in the course of the
campaign and you really haven’t done the culti
vation that’s necessary to bring them to com
mitment of a major gift. I need to make sure we
don’t lose momentum in the cultivation of those
folks.
JOURNAL: What, in your experience, is the
key to the success of a major capital campaign,
or as you put it, the ongoing capital campaign?
HOOKER: The key is organization:
Organizing the professional staff to do the good
job of prospect generation and cultivation, and
organizing the volunteer staff for prospect cul-
Look for HOOKER, page 19
East meets West
Japanese companies are adapting to American traditions of giving.
Art by Adam Brill
Japanese corporate philanthropy
takes root in North Carolina
Philanthropy is not inherent to
Japanese companies. Upon arriving
in the U.S., they quickiy had to adapt
to the American tradition of giving.
Their phiianthropy now is spreading
throughout the U.S. - and across
North Carolina. Some nonprofits are
reaping benefits.
By Susan Gray
More than 150 Japanese companies
operate in North Carolina, adding more
than $2 billion to the state’s economy.
In the wake of profits from their com
puter chips, auto parts and other goods
and services, a growing pool of philan
thropic riches has emerged for nonprofits.
But many Tar Heel nonprofits are not
tapping into this resource. They pay little
attention to Japanese companies in their
GLOBAL GIVING
communities. And they overlook Japanese
executives who may be searching for ways
to give something back to Americans.
That’s understandable. Japanese phil
anthropy is a brand new phenomenon -
both in the U.S. and in Japan.
In Japan, companies don’t give away
money. They don’t hold United Way drives.
They don’t hand over big checks to chari
ties. And they don’t get charitable tax
breaks beyond those for contributions to a
narrowly defined organization that pro
motes the “public interest” known as
tokutei koeki zoshin kojin.
“In Japan, philanthropy is not some
thing that typically comes out of the com
pany,” says Steve Brantley, a senior ana
lyst of East Asian trade for the state
Department of Commerce. “So when
Japanese companies come here, it’s very
new for them to deal with, say, the United
Way. It’s just a completely different role.”
In Japan, only 1 percent of ail revenue
for nonprofit ^oups - or koeki hojin -
stems from private sources, according to
Lester M. Salamon, director of the Johns
Hopkins Institute for Policy Studies in
Baltimore. The majority of revenues to
nonprofits - other than those from private
fees to universities and medical institu
tions - comes from government ministries.-
In comparison, U.S. nonprofits receive
more than 18 percent of their funding fi-om
private sources, says Salamon, who pub
lished his findings in “Emerging Sector,” a
report that compares nonprofit sectors in
different countries.
PEER PRESSURE
In the 1970s, Japanese companies
Look for JAPAN, page 9
Commission
idea worries
nonprofits
House Majority Leader Leo Daughtry wants a
study commission to look for ways to strengthen
philanthropy in the state. But the N.C. Center for
Nonprofits fears the commission could stifle the
nonprofit sector.
By Todd Cohen
When he appeared in May before 500 nonprofit lead
ers, Leo Daughtry figured the crowd would be less than
friendly to his conservative Repubhcan views.
Nevertheless, the Smithfield lawyer and majority
leader of the N.C. House of Representatives plunged
head-first into an issue much on the minds of nonprofits.
Government has a mandate to cut costs and “meet
the most pressing needs first,” he told participants at
Philantlmopy ‘95, the annual conference for Tar Heel
nonprofits sponsored by the Philanthropy Journal. I
doubt many of
you feel sorry
for us, but I
can tell you,
it’s a damn
hard job.”
To help off
set the fears of
nonprofit lead
ers that cru
cial public
funds might be
cut, Daughtry
Leo Daughtry also offered a KgnjgH
modest pro
posal: The
state legislature should create a commission to study
how to help the nonprofit sector grow and become more
efficient and effective.
When the Philanthropy Journal went to press,
Daughtry’s proposai was expected to be submitted to
the current session of the legislature. But it aiso has
drawn fire fi"om a nonprofit advocacy group.
Look for COMMISSION, page 20
s.
Connections 3
Grants and Gifts 17
In July 16
Job Opportunities 20
Opinion 10
People 17
Professional Services... 18
Nonprofits optimistic
about giving
Despite a statewide poll that
found 60 percent of North
Carolinians won't increase
their charitable giving to off
set government cuts in social
senrices, nonprofit leaders say
individuals will come through
in the crunch.
• Page 4
Foundation backs
grassroots
The Fund for Southern
Communities is as distinctly
progressive today as it was
15 years ago when a group
of civil rights activists created
it to serve groups in the
South outside the loop of tra
ditional funding.
• Page 6
Care for pets helps
battered women
In an effort to end abuse of
animals and women, an
animal rights group is help
ing battered women by pro
viding foster care for their
pets.
Page 8
L
FUNDMISiNG
NationsBank invest
ment hits $10 billion
NationsBank Corp. has ful
filled a promise it made to
North Carolina's poor and
minority communities.
Page 12
New Era bankruptcy
holds cautionary tale
Tar Heel nonprofit leaders
see the phony investment
scheme a Pennsylvania foun
dation is accused of carrying
out as a wakeup call for the
sector.
Page 14