RSSGoogle Shows its Charitable Side
By Ed Oswald | Published October 12, 2005, 11:19 AM
Google detailed late Tuesday plans to become a more charitable organization, including the founding of Google.org that would serve as the search giant's philanthropic arm.
The new entity would include the Google Foundation, some of Google's own projects, in addition to becoming the starting point for partnerships and contributions for projects of other non-profit and for-profit organizations.
Google has donated $90 million in cash to the Google Foundation, as well as another $175 million to various other Google.org efforts to signify the search company's commitment to the initiative.
"When we told prospective shareholders about Google and how we wanted to do business, we said that we hoped our philanthropic efforts could some day have a greater impact than Google itself," Sheryl Sandberg, VP of Global Online Sales & Operations at Google said, referring to the 2004 annual report from the company.
In the report, Google founders Sergey Brin and Larry Page committed one percent of the company's profits towards philanthropic works.
The first recipient of Google's generosity will be the Acumen Fund, which received $5 million to find market-based solutions to poverty. Also, the company is working with TechnoServe, which helps start small businesses in the developing world, as well as funding research in Western Kenya to look into how child deaths from poor water quality can be prevented.
Google.org will also control the Google Grants program, which gives free advertising to non-profit groups. Participants include Make-a-Wish Foundation and Doctors Without Borders.
As well as donating one percent of cash profits, Google plans to donate one percent of its stock.
"For the one percent of equity, we have committed one percent of the outstanding shares that resulted from our initial public offering -- 3 million shares. We're going to donate and invest this amount over a period of as much as 20 years," Sandberg said.
Now, I know a whole bunch of you are going to say, "Yeah, but they're only doing it to get more attention and draw more users." Which is very possibly a large reason for doing it. But who cares?! Charity and being philanthropic is the same whatever the motivation is.
Interesting, I just learned about "social responsibility" in my marketing class. There are all different forms of it, ranging from donating money flat out, donating a percentage of income, using recycled products, etc. But I say whatever the motivation is, whether it's a genuine desire to aide society or simply a ploy to get my attention, it's still a good thing that benefits society, and that's what really matters.
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Well said, heat_fan1. I completely agree.
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True, but (playing devil's advocate here) if the outcome is the same either way, wouldn't it be better for Google's motive to be good?
I thought this part was interesting: "Google has donated $90 million in cash to the Google Foundation"
Google donated $90 million to itself lol. I just know people are gonna be joking about that one. Oh wait... I just did. D'oh!
All that that one particular donation means is that now the money is in a place where it is likely to be used for charity. It hasn't necessarily been used that way yet.
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Well, the outcome is not the same. If Google, or any company, makes large donations quietly, with no publicity, the only benefit is to the recipient of the charity. But if Google can benefit society and get publicity for itself at the same time, that's killing two birds with one stone.
As far as donating to Google Foundation is concerned, the Foundation is actually a separate organization. It's not part of Google, Inc.
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I seriously doubt it's very seperate. I'm sure there's something in common.
"Hi my name is daniel, please donate the $90 million you may have lying around the house to the daniel foundation... i did"
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