From Our Executive Director - Jean Hart

(From the October 2006 Newsletter)

Many of you know Paul Shoemaker, Executive Director of Social Venture Partners Seattle for more than eight years. Paul was a founder of SVP Seattle, the president of the SVPI board of directors and a source of inspiration and wisdom to all of us.

Paul wrote the following shortly after Bill Gates, Microsoft CEO until June of this year, transitioned to "full-time philanthropist", in his words. I want to share Paul's thoughts with you. He draws parallels between Bill Gates' move and the SVP partners.

"When asked by a journalist what effect Bill's move might have on the nonprofit sector as opposed to just funding his foundation, it strikes me that my description of his role, his potential, the assets he brings, his leadership, is very similar to how I would describe an SVP partner who was taking on an increased leadership role with a nonprofit or moving from a private sector position to a nonprofit career. Other than a few zeros and a bit more fame, I could just as easily have been describing any number of SVP people. Each of these partners, like Gates, is making significant life changes to apply their experience, skills, brains and heart to working on tough social problems.

"Don't get me wrong, money is absolutely necessary but it is almost always insufficient as well. It is the human capital that ultimately makes the difference. How much financial capital did Mother Theresa have? How much financial capital did Muhammad Yunus have 25 years ago in Bangladesh where he founded the concept of microfinance which has now spread across the globe, including SVP Seattle partner Mike Murray's Unitus locally. How much difference did the human (vs. financial) capital make in SVP Seattle partner Heidi Craemer's work with Roxanne Lyons back in the late 90's that helped enable New Futures to be where it is today?

"If we've learned anything over the last 8 l/2 years it is that our human capital is the true leverage point, the difference maker. I'm confident Gates would agree. A few months back I was at a conference speaking to a small group and suggested that in 100 years more people would know the name Bill Gates for his global health and/or education work than for Microsoft. Just as, I suspect, more people could now tell you the role Andrew Carnegie played in the public library system than know he founded U.S. Steel. Time will tell, but given Gates' decision last week, I think the odds just went up.

"When all is said and done, I can not help but believe that more and more SVP partners will also be known for their civic and philanthropic leadership than for their previous private sector careers. I see many such examples in SVP Seattle. Maybe our work with Athena Water will provide the funding that finally leads to a cure for breast cancer. Maybe our work with Grameen Village Phone Program in Uganda will help cut poverty there in half over the next 25 years. Maybe our work with the Seattle Biotech Legacy Foundation will help find a real solution to Puget Sound sprawl. Maybe…

"No matter how many zeros come with your name, your potential to change the world has a lot more to do with your brain, your heart, your commitment, your ingenuity. As each partner continues their work, I think it is nothing but exhilarating to know that someone like Bill Gates has decided to make the same kind of life transition that many SVP partners all across the network have already made. Welcome to our world, Bill."

SVPP News - Mercy Corps CEO Addresses Partners at Quarterly Event

(From the October 2006 Newsletter)

Mercy Corps CEO Addresses Partners at Quarterly Event

Neal Keny-Guyer, CEO of Mercy Corps, led a stimulating discussion on challenges facing the international relief and development agency on September 20 at Mercy Corps headquarters in downtown Portland. Mr. Keny-Guyer outlined five mega-forces which all NGOs will struggle with if not now, in the future. They are:

1. The level of absolute poverty in the world today -- 1.2 billion people live on less than $1.00 a day; 120 million children do not attend school; 42 million are suffering from HIVAIDS, and 30 million of those are in Africa. Poverty is a source of anger, frustration and despair.

2. The demographic shift in the world to youth -- 1 billion young people will be in the workforce in ten years and only 300 million new jobs will have been created. Where will these young people work?

3. The rise of Islam -- what will be the impact? There are 1.5 billion Muslims in the world and half are younger than 30.

4. Fragile, failing and failed states -- 2 billion people live in nations categorized as one of these. These nations include Iraq, Iran, North Korea, Sudan, Congo, Afghanistan, Cote d'Ivoire, and others.

5. Climate changes -- what will be the impact of global warming on poverty, disease and geopolitical stability?

The question we must continuously ask ourselves is "How are we relevant to the solution?" "What is the root cause of the problem being addressed?"

He concluded his remarks with:
"Nonprofit organizations must struggle to be less bureaucratic, develop and exploit strong partnerships and alliances, work to be strong stewards of our organizations, and learn to be effective "social entrepreneurs". The improvements in nonprofit organizations over the past two decades have been enormous. In 1980 we didn't focus on measuring impact. The educational and skill level of employees was much lower than now. Partnerships and coalitions among nonprofits were much less common. Mercy Corps, for example, is larger than the UN and UNICEF in most of the 35 countries in which they work. Twelve years ago when Mr. Keny-Guyer took the reins at Mercy Corps, they were a small organization focused largely on relief efforts. Today they have more than 2,500 staff, an operating budget of $200 million and are as much an international development agency as a relief agency today".

SVPP News - Colin Powell Speaks at the Boys & Girls Club

(From the October 2006 Newsletter)

Former Secretary of State Colin Powell was invited to celebrate the groundbreaking of the Hillsboro Club construction on October 9. The expansion of the Hillsboro Club will include a new state of the art gym and the third Kids Café in the Portland area. SVPP has been the lead investor for Kids Cafés and we have helped with program management of the construction of the kitchens.

Former Secretary Powell has a long affiliation with BG&C and has been a strong supporter of this organization. He related wonderfully to the kids and gave a short speech revolving around leadership with the strong message: value yourselves; value each other". The Q&A session was the most entertaining part of the event and lasted for more than 20 minutes. He asked each kid to come up front and ask their question with head up, eyes straight ahead. He threw out the first question which was "how old do you think I am" - one kid yelled out "80" which brought the house down!

SVPP News - Partner Gathering, New Website, New Report

(From the October 2006)

Partners Enjoy Summer Gathering
Picture a typical fantastic Portland summer day coupled with a superb view of downtown Portland, the Willamette River and the mountains. This was the setting for SVPP's summer gathering on July 29 at the home of Bruce Murray and Valerie Ilsley where partners and friends enjoyed excellent catered food and beverages. The event was well attended and provided an excellent opportunity to meet new people, catch up with each other's lives and just a have a relaxed Portland summer afternoon. Many thanks to Bruce and Valerie for hosting this event.

New SVPP Website
The new SVPP website was launched after extensive modifications to provide a much more exciting experience. A lot of effort was devoted to give the visitor "the SVPP story" with a better explanation of how SVPP works and the impact we have had on the organizations in which we have invested over the last five years. Visit SVP Portland to experience our new website if you haven't already done so. Special thanks go to Partner Megan Leftwich for her painstaking attention to detail during the review process of the new content and for managing the transition to the new website.

SVPP New Report Available
For the past months, Partner Valerie Ilsley led an effort to develop a comprehensive report on SVPP covering our mission, investments and performance. This report, titled SVPP Organization Summary – Investments and Performance, is being distributed to all partners and is an excellent vehicle to not only learn about SVPP's impact over the last five years and future direction, but also serves as a great tool to introduce SVPP to potential new partners. It will also be used to present SVPP to other local organizations and future fundraising efforts. If you would like additional copies of this report, please contact the SVPP office.