Summarized Google's new philanthropy campaign questioned

[David Farber <dave () farber net>]

Google Inc. is launching an unusual corporate philanthropy campaign  
that will focus on fighting poverty and disease in Africa, addressing  
energy and environmental issues, and assisting nonprofit groups by  
giving away free online advertising.

Rather than doing all of that through a traditional corporate  
foundation, which has certain tax advantages, Google is setting aside  
the equivalent of 3 million shares of stock, worth more than $900  
million, to fund an entity called Google.org.

...By using Google.org for the bulk of its charitable giving, the  
company will have greater flexibility in how it deploys the funds  
since the affiliate will not be subject to the restrictions imposed  
on foundations by the Internal Revenue Service.

...Shareholder activists said Google's charitable commitment raises  
questions about whether this is an appropriate use of company cash or  
whether company founders Sergey Brin and Larry Page ought to make  
donations to their favorite causes personally.

...McGurn, special counsel to Institutional Shareholder Services Inc.  
"Google is spending shareholders' money, and it raises questions if  
there is not a valid corporate purpose."

...Google Vice President Sheryl Sandberg said initial projects  
include funding research to examine the best ways to supply clean  
water and reduce infant mortality in Kenya; training and financing  
budding entrepreneurs in Ghana who would establish new local  
businesses there; investing in the socially responsible, New York- 
based Acumen Fund; and supporting an initiative to supply laptop  
computers to children who do not have them.

...As an example already underway, Sandberg cited the Make-a-Wish  
Foundation, which she said gets more than half of its online  
donations through the free ads.

The moves by Google, which has seen its stock price skyrocket since  
it went public last year and has been enormously profitable, are  
consistent with statements made last year by Brin and Page.  In a  
letter accompanying Google's April 2004 initial public offering  
filing with the Securities and Exchange Commission, the founders said  
the company would donate 1 percent of its profit and stock to  
innovative philanthropic efforts aimed at solving global problems.

..."We have a desire to do things at scale, and by scale we mean the  
kinds of things that can touch not just millions, but hundreds of  
millions of people, and an approach that combines real innovation,  
technically and otherwise," Sandberg said.

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/11/ 
AR2005101101788.html



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