Vanguard Public Foundation was an American
social justice
Social justice is justice in relation to the distribution of wealth, opportunities, and privileges within a society where individuals' rights are recognized and protected. In Western and Asian cultures, the concept of social justice has of ...
foundation focused on providing grants to social justice
nonprofits. One of the first of the "rich kid foundations," Vanguard was a model for a new generation's philanthropy. Vanguard rose as a leader among some two dozen new progressive foundations that comprised a network called the Funding Exchange.
Vanguard closed down in 2011.
History
The Vanguard Public Foundation established in 1972 by a group of inheritors of corporate fortunes, including Obie Benz, Peter Stern, Christine Russell, Maggie Roth, Penny Gerbode, and Daisy Paradis. They were later joined by over a hundred young inheritors who were devoted to supporting a progressive social and political agenda.
Closure
In 2002,
Samuel "Mouli" Cohen was introduced to Vanguard CEO Hari Dillon by actor
Danny Glover
Danny Glover ( ; born July 22, 1946) is an American actor, producer, and political activist. Over his career he has received List of awards and nominations received by Danny Glover, numerous accolades including the Jean Hersholt Humanitarian A ...
.
Mouli said he would help the foundation by allowing Vanguard and its donors with buying shares in the privately owned
Ecast, Inc. Dillon and Glover formed general partnerships through which they thought they had purchased several million dollars' worth of Ecast.
At least three partnerships with Hari Dillon's Dillon Group, and an additional one with Glover, were used as vehicles to funnel investments from Vanguard Public Foundation donors to a deal with Mouli.
The Vanguard donors ultimately put in over $20 million more in philanthropic money and personal investment cash.
Mouli stated that Ecast was to be acquired by
Microsoft
Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
, which would then generate a significant return on investment, as high as 1000%. The Microsoft acquisition reportedly got delayed over EU rules, which generated a need for more fees to cover transaction costs. It was further delayed when reports that Ecast was considering a competing bid from Google. Ultimately, there was no Microsoft purchase, no Google bid, and the money was fraudulently taken by Cohen.
Further, as reported by
American Greed,
a show on
CNBC
CNBC is an American List of business news channels, business news channel owned by the NBCUniversal News Group, a unit of Comcast's NBCUniversal. The network broadcasts live business news and analysis programming during the morning, Day ...
, Cohen had already been forced out of Ecast and was no longer affiliated with the company by the time he had become involved with Dillon.
Vanguard was forced to close in 2011 as a result of the fraud.
Cohen and Dillon were later successfully prosecuted, with Dillon pleading guilty, for their role in the scandal.
Grants
Vanguard's grant making put money into social movement causes, often before they became politically acceptable and often to organizations and actions that were never going to generate mainstream support.
The Vanguard Public Foundation oversees four separate grant-making programs.
Social Justice Fund
Provided support to community-based organizations seeking to bring about progressive social change. The funding priorities focused on issues such as homelessness, civil rights, cultural activism, criminal justice,
environmental justice
Environmental justice is a social movement that addresses injustice that occurs when poor or marginalized communities are harmed by hazardous waste, resource extraction, and other land uses from which they do not benefit. The movement has gene ...
, economic justice, human rights, immigration, and youth advocacy and leadership.
Community Institution Building Program
The Community Institution Building Program supported social justice organizations.
Technical Assistance & Capacity Building Program
Provided grant support, access to professional consultants, and skills workshops for community-based organizations that focused on environmental justice and other health-related problems in the
Central Valley of California.
Social Justice Sabbatical Fund
Provided funding to community activists in order to enable them to take a 2-3 month break from their activities.
Grant recipients
Vanguard tended to focus on emerging projects which often went on to become more accepted by the public and therefore more fundable by other foundations. Donors also gave money to specific groups through Vanguard, enabling unincorporated groups to receive donations.
Among the groups that received Vanguard grants:
Criticism of grants
Their focus on projects often before they became politically acceptable attracted negative attention from conservative pundits.
Glenn Beck
Glenn Lee Beck (born February 10, 1964) is an American conservative political commentator, radio host, entrepreneur, and television producer. He is the CEO, founder, and owner of Mercury Radio Arts, the parent company of his television and rad ...
referred to Vanguard as "
Marxist
Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflic ...
foundations of the 'social justice' movement" while
Bill O'Reilly referred to the foundation as "pinheads".
Influence on other foundations
In 1977, Vanguard published a book designed to serve a guide to other foundations, ''Robin Hood Was Right: A Guide to Giving Your Money for Social Change''. The book was re-issued by the Funding Exchange in 2002.
Largely modeled on Vanguard are the Haymarket People's Fund in
Boston, Massachusetts
Boston is the capital and most populous city in the Commonwealth (U.S. state), Commonwealth of Massachusetts in the United States. The city serves as the cultural and Financial centre, financial center of New England, a region of the Northeas ...
and the
Liberty Hill Foundation in
Santa Monica, California
Santa Monica (; Spanish language, Spanish: ''Santa Mónica'') is a city in Los Angeles County, California, Los Angeles County, situated along Santa Monica Bay on California's South Coast (California), South Coast. Santa Monica's 2020 United Sta ...
.
See also
*
Liberty Hill Foundation
References
{{Authority control
Organizations established in 1972
Organizations disestablished in 2010
1972 establishments in California
2010 disestablishments in California
Political and economic research foundations based in the United States
Non-profit organizations based in San Francisco
Social justice organizations