The following 'sound bites' were heard at the opening session at Ohio Grantmakers Forum's annual conference (in Cleveland),Transforming Philanthropy, presented by Michael Lerner, president/founder of Commonweal and president of the Jenifer Altman Foundation and Barbara Smith Fund.
"I want to tell you how Ohio can change the world. It is a microcosm of the entire United States. Social innovation tends to start in the west and roll eastward. Financial innovation starts in the east and rolls westward. We are at a point in history when innovation can start right here. What would happen if all Ohio philanthropies got together and decided to focus on finding solutions to our dependence on fossil fuels, investing in clean energy and educating people to commercialize what happens at that intersection and to work in those emerging industries? Figuring this out could provide jobs for Ohioans, the nation, and the world. And the industrial and technological infrastructure already exists here to make it happen."
"Philanthropy as a practice is at a crossroads and will be re-invented. Working with one voice can effect policy to advance a shared agenda."
"The only way for solutions to emerge is through dialogue. The truth belongs to no one and it also belongs to everyone. Philanthropy's power to convene (a dialogue) is magnified a thousand times at a very teachable moment in history, especially as it pertains to the green economy."
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From the economic forecast session presented by Knight Kiplinger, editor in chief, The Kiplinger Letter, Kiplinger's Personal Finance magazine and Kiplinger.com. He's also a trustee of the Kiplinger Foundation and a well-respected economic journalist and business forecaster:
"This is a humbling time for financial experts and also for economic forecasters, I might add."
"My first look-see into Cleveland was in the 1970s. I can tell you that even in this economic climate, Cleveland is a much happier place today than it was in the 70s."
"This is indeed a financial crisis, a panic, even though some assets should not be tarred with the same brush as other assets. Some sectors are booming and have been offsetting, to some degree, the problems in other sectors. Strong sectors include agriculture, technology, IT, telecommunications, health care, pharmaceuticals and medical devices, aerospace and civil aviation, defense, and heavy machinery that we sell over the world. The U.S. steel industry is going strong as are business services like accounting and law, along with the domestic sector of the energy industry."
"There are 4 major players in the U.S. economy: consumers, businesses, governments, and overseas customers. All will be pulling back. Consumers are mired in debt. Businesses are doing ok, but are pulling back in an overly cautious mode; government spending is being cut drastically as mandates to balance budgets take effect, although the federal government will continue to spend like a drunken sailor, paying down the deficit not being as high a priority right now as spending money to get the financial systems back on track."
"More relevant than the Great Depression, for sake of comparison, are the recessions in the 1970s and early 80s when we saw 15 percent inflation and 20 percent interest rates, 10-fold increases in the costs of petroleum, and jobless rates of 9-10%. I don't predict that the jobless rate will get that high. We will have several quarters of negative GDP this year and in '09. Things will start to look up in 2010."
"Not since does not mean as bad as. During the Great Depression we had a 29% unemployment rate and GDP fell by 50% between 1929-1933. Savers and depositors were wiped out. We've had none of that this time."
"What will moderate the recession? Massive government intervention, which has already begun. Lower gas prices will help and we're already seeing a pick up in housing sales, signaling a return to reasonably priced housing, a good thing for us, our children, and grandchildren who still value the American dream of home ownership."
"I think we will see a wave of consolidations and mergers in the nonprofit sector. Foundations have valuable resources to offer in this scenario."
"I think we will see a revisiting of asset allocation policies among foundations and other large endowments, like those in higher education."
"Remember, we are in the process of returning to normal lending standards and that's a good thing. But right now, cash is king. Those with cash, like investors and businesses, will drive some tremendous bargains in the coming months and years in real estate, stocks, and elsewhere."
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