Capitalists' local group will invest in literacy

If you were rich enough to give your money away, where would it go?

A dozen Tucson-area capitalists have joined together to invest in one cause: literacy.

They have founded a new philanthropic group called Social Venture Partners Greater Tucson, which will put money behind highly performing charitable nonprofits that could put a dent in illiteracy.

"Literacy is a root cause of economic advancement," said Steve Alley, CEO of the Community Foundation for Southern Arizona and a founder of the Social Venture Partners chapter. "If you can't read and write, your family can't get past that."

Local literacy programs are operating with waiting lists and tight budgets, he said.

Illiteracy has a big impact on business, too, said Sharon Gilbert, past president of the Tucson Area Literacy Coalition.

"When you have a work force that can't read technical manuals, you can't bring in high-paying jobs," she said. "That has a huge impact on the local economy. The lack of a literate working group is costing this area lots and lots of money."

Through the new group, partners invest at least $5,000 a year for two or more years and get tax benefits for those donations. They also invest time by volunteering for the literacy programs.

In the spring, the partners will pool their money and select a local nonprofit to receive one large grant, $25,000 to $50,000 a year for three to five years.

Unlike other programs of the Community Foundation, grants from Social Venture Partners won't go to specific programs. Rather, the money will go toward building capacity and paying operating costs for the nonprofit.

Social Venture growing

The first Social Venture Partners group was started in 1997 in Seattle by Paul Brainerd, founder of desktop publishing giant Aldus Corp. Now there are 21 chapters in the U.S., including nearby groups in Phoenix and San Diego.

Social Venture Partners Arizona, the Phoenix-based chapter, has given more than $2.5 million in grants since its inception in 1999. The money has gone to a variety of children's educational programs, including a teenage suicide hot line, a theater troupe that focused on preventing substance abuse and domestic violence, an inner-city music program and a character education program.

"Our partners share a common bond of being socially conscious, generally successful businesspeople and entrepreneurs who are looking to bring about social change and make a difference," said Ed Zito, a founding partner and former board chairman of the Phoenix group. He calls this model "engaged philanthropy."

"It's not just writing checks. There is important partner involvement with the nonprofit organizations," said Zito, who also is a senior vice president of Alliance Bank of Arizona.

The nonprofits also must meet milestone goals and show the impact of their programs. The nearly 100 partners are looking for a return on their investment, measured in how much is accomplished. Partners also get a real-world education in local social issues, gaps in government funding and real need, and trends in philanthropy, Zito said.

Social Venture Partners Greater Tucson hopes to have 35 members in six months.

An exciting prospect

Tucson literacy leaders said the prospect of new funding and support is exciting.

"Because the Social Ventures people are private, influential donors, they can offer solutions outside of the normal patterns," Gilbert said.

The partners also will offer intellectual capital. The nonprofit may ask for help in areas such as human resources, accounting, marketing or board development, Alley said.

Literacy Volunteers of Tucson, for example, has decided not to seek federal funding that requires their students to pass tests. More can be done to help students who can't attend daily reading classes but instead must squeeze in tutoring around work and family schedules, said Betty Stauffer, executive director of Literacy Volunteers of Tucson.

Without federal funding, the group must raise $105,000 a year on its own, she said. Social Venture Partners could help with money, but also with recruiting new donors, she said.

"I'm not really looking for somebody who could write me a check for $105,000; I'm really looking for 100 more donors who could donate $1,000."