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VOLUME VI, ISSUE 3

Corporate Philanthropy in

Africa Poses a Historic Window of Opportunity

Africa suffers simultaneously from three challenges to sustainable development. First, Africa does not grow enough food. Unlike Asia, Africa did not have a Green Revolution in food production. Second, Africa suffers from disease burden unrivaled in any other part of the world. Africa's AIDS pandemic is well known; its malaria pandemic, which will claim two to three million lives and a billion illnesses this year, is not. Third, Africa is economically isolated, owing to very poor infrastructure, large over-land distances, and many landlocked countries. These geographical barriers keep much of Africa, especially rural Africa, out of the mainstream of international trade. Without the benefits of trade, much of rural Africa struggles at subsistence levels. On hunger, the key is to help Africa achieve its own Green Revolution. African farmers need improved seed varieties, more fertilizer, and better water management, such as small-scale irrigation. The techniques are known, but Africa's farmers are too poor to get started. With increased help to African farmers to grow more food (as opposed to shipping food aid from the U.S.), it would be possible to double or even triple crop yields. On disease, malaria could be controlled by 2008 using proven, lowcost methods. The first goal should be to distribute long-lasting insecticide-treated bed nets to all of Africa's rural poor within three years. In addition, Africa needs help with anti-malaria medicines, diagnostic equipment, and the training of community health workers. On economic isolation, Africa needs help with the basics--roads and ports--but there is also an opportunity to "leapfrog" technology. Cell phones and Internet connectivity could reach all of Africa at low cost, ending the economic isolation of hundreds of millions of people. Some reasonable estimates put the cost at around $1 billion for an Africa-wide fiber-optic network that could bring Internet connectivity and telephone service across the continent's villages and cities. Boosting investment in agriculture, health, and infrastructure needs to be complemented by practical and targeted aid in other areas, such as education, gender equality, environmental sustainability, and building global partnerships. Corporations can play an important role in supporting sustainable development for Africa. General Electric provides equipment for hospitals. Sumitomo Chemical supplies bed nets. Monsanto provides high-yield seed. Many other companies are also making substantial and effective contributions--but much more is needed. Businesses can contribute commodities and technology, training, management of delivery and logistics, and venture capital--and through these actions lend voice and advocacy to one of the most important challenges and opportunities facing us today: sustainable development for all. I commend the Committee to Encourage Corporate Philanthropy for focusing New Century Philanthropy on Africa. Sustainable development for the continent is achievable, but it will require active and bold participation, on a global scale--of corporate, foundation, individual, and public partnership and support. Jeffrey D. Sachs, Director of The Earth Institute at Columbia University and of the United Nations Millennium Project

Fall 2006

A Publication of the Committee to Encourage Corporate Philanthropy

CECP

Why Corporate Philanthropy in Africa Matters

Corporate Philanthropy In Africa

By Charles Moore, Executive Director, CECP

There are few greater social, economic, or political challenges facing our world than those facing Africa. This issue of New Century Philanthropy makes the case that there is no easy fix, no magic wand that can be waved to cure the ills of this continent. Rather, it will take considerable effort, and occasional failure, to achieve sustainable success. Moreover, these initiatives cannot take place in a vacuum. Individual organizations--be they corporate, governmental, charitable, or faithbased--cannot operate alone. Instead, for real progress to be realized, these groups must embrace partnership and collective action. However, there are many, many talented people dedicating themselves to improving the quality of life in many parts of Africa. From individuals at USAID to Jeffrey Sachs of Columbia University and the UN to companies in a variety of industries, many such people are doing their part, both individually and in collaboration. · In Africa Poses a Historic Window of Opportunity, Jeffrey Sachs sets the stage for this issue of New Century Philanthropy with a powerful perspective on both the challenges and opportunities in Africa. · In USAID in Africa, Pamela White explains USAID efforts in Africa (through its Global Development Alliance initiative) and offers several insightful recommendations for companies and giving professionals. · In Deutsche Bank's Commitment to Microfinance in Africa, Dr. Josef Ackermann describes how Deutsche Bank has leveraged its financial expertise and corporate resources to extend the reach and impact of microfinance throughout Africa. · In Putting GE's Resources to Work in Africa, Jeffrey Immelt describes how GE combines its innovative technologies with training and management skills to provide access to cleaner water, medical treatment, and electrical power. · In Microsoft Unlimited Potential: Investing in Africa's Future, Dr. Akhtar Badshah explains why Microsoft believes access to information technology can help Africa gain economic empowerment and leave poverty behind. · In Helping Africa Compete, Paul Pressler talks about Gap's efforts to engage the garment manufacturing industry in Africa, as well its involvement with the (PRODUCT) RED initiative. · Finally, in our Giving Professional Perspective series, John Damonti shares which aspects of Bristol-Myers Squibb's work have been most effective in Africa, as well as what challenges the company faces moving forward. While this sample represents only a small collection of companies, nonprofit groups, governmental organizations, and individuals tackling numerous issues in Africa, it is nevertheless inspiring. Ultimately, as the role of corporate philanthropy continues to evolve, it offers new ways to promote social good. It is incumbent upon all of us-- corporate leaders, governments, NGOs, and individuals--to band together in partnership to identify solutions for a new generation of Africans. We aim here to acknowledge the valuable contributions that corporations are making to Africa on behalf of this cause, as well as to inspire other companies to join in enhancing the prosperity, health, and security of this great continent.

IN THIS ISSUE

AFRICA POSES A HISTORIC WINDOW OF OPPORTUNITY Jeffrey Sachs, The Earth Institute at Columbia University WHY CORPORATE PHILANTHROPY IN AFRICA MATTERS Charles Moore, CECP CECP NEWS NEW MEMBERS; NATIONAL CORPORATE PHILANTHROPY DAY; 2005 CGS RESULTS; CECP SUMMIT CECP PERSPECTIVES Pamela White, USAID/Tanzania John Damonti, Bristol-Myers Squibb Foundation CECP BEST PRACTICES Josef Ackermann, Deutsche Bank Jeffrey Immelt, GE Akhtar Badshah, Microsoft Corporation Paul Pressler, Gap Inc. CECP EXCELLENCE AWARDS - CALL FOR APPLICATIONS 1 1 2-3

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CECP News

SAVE THE DATE! National Corporate Philanthropy Day: February 26, 2007

On February 26, 2007 we invite you to take part in National Corporate Philanthropy Day (NCPD), the only nationally recognized day dedicated to celebrating and promoting corporate philanthropy. Through this national platform, CECP seeks to build awareness of the achievements and benefits of corporate giving and to inspire the business community to engage further in corporate philanthropy. In 2006, President Bush, U.S. Secretary of Commerce Gutierrez, New York Governor Pataki, and New York City Mayor Bloomberg officially recognized NCPD through proclamations. Events for 2007 include the second-annual CEO-only "Board of Boards" conference (attended last year by 29 CEOs), the presentation of the 2006 Excellence in Corporate Philanthropy Award winners at a luncheon hosted by The McGraw-Hill Companies in New York City, and the lighting of the Empire State Building in blue and green, National Corporate Philanthropy Day's official colors. CECP is supporting companies planning activities on NCPD through a special website www.CorporatePhilanthropy.org/day. Visitors of this site will find valuable resources and tools, information on events and participating companies, and areas for posting and viewing corporate philanthropy initiatives. We welcome and encourage the participation of the entire corporate philanthropy community in National Corporate Philanthropy Day. Start planning an event for your company today and work with CECP to promote it!

Ten Ways to Get Your Company Involved in National Corporate Philanthropy Day

1) Encourage your CEO to attend CECP s Board of Boards on NCPD, the only CEO event dedicated to exploring the value of corporate philanthropy. www.corporatephilanthropy.org/boardofboards 2) Have your CEO write an op-ed piece for your local newspaper. 3) Release your company s annual report on corporate responsibility and community relations. 4) Establish a coordinated volunteer event or give employees a paid day off to volunteer. 5) Announce a new program or grant with your nonprofit partner. 6) Take senior management on a site-visit to a nonprofit partner s headquarters. 7) Send a company-wide document from your CEO that communicates your philanthropic achievements. 8) Hold a webcast elaborating on your philanthropy program, led by senior management. 9) Create an internal recognition or award program and announce the winners on NCPD. 10) Plan a Charity Fair, inviting local nonprofit organizations to company locations to meet with and engage your employees.

New Committee Members Join CECP

ROBERT M. AMEN was appointed Chairman and Chief

Executive Officer of International Flavors and Fragrances on July 1, 2006. Mr. Amen most recently served as President of International Paper Company, retiring from that post in March 2006. During his 26 years with International Paper, Mr. Amen played a major role in developing the company's international strategy and, more recently, in transforming the company's operations and business focus to accelerate performance. He was named President of International Paper in 2003, having previously served as Executive Vice President of the company from 2000-2003. He is a member of the Advisory Board of the Deming Center at Columbia University.

TERRY LUNDGREN is the Chairman, President and Chief Executive Officer of Federated Department Stores, Inc. Mr. Lundgren has been appointed Commissioner on Women's Economic Development by the Mayor of New York. He has been presented with several business recognition awards and has served as dinner chairman or as honoree for numerous retail industry organizations and charities, including the Fresh Air Fund, American Jewish Council, Breast Cancer Awareness, NOW Legal Defense, Parsons School and the Ovarian Cancer Society. Mr. Lundgren currently serves on the Boards of Carnegie Hall, The New York City Partnership and United Way of New York City. JAMES J. SCHIRO is the Chairman of the Group Management Board

and Chief Executive Officer of Zurich Financial Services (Zurich). Mr. Schiro serves on the Board of Directors of PepsiCo and Royal Philips Electronics. He is Chairman of the Swiss American Chamber of Commerce and a member of the Boards of the European and U.S. Financial Services Roundtables and of St. John's University. In addition, Mr. Schiro is active in a number of professional and civic organizations in Switzerland and the U.S.

CAROL LAVIN BERNICK is Executive Chairman of the Board

of the Alberto-Culver Company. A thirty-year veteran of AlbertoCulver, Carol was named Executive Chairman in October of 2004. Ms. Bernick is the Founder of The Friends of Prentice for Prentice Women's Hospital of Northwestern Memorial Hospital. She serves on the Board and Audit Committee of Northwestern Memorial Healthcare, the Board of Tulane University, the Women's Board of the Boys' and Girls' Clubs of Chicago, and the Executive Committee of the Dean's Advisory Board for Northwestern University's J.L. Kellogg School of Management.

REX W. TILLERSON is Chairman and Chief Executive Officer of

Exxon Mobil Corporation. Mr. Tillerson is a Director and a member of the Executive Committee and Policy Committee of the American Petroleum Institute. He is also a Director of the U.S.-Russia Business Council and a Trustee of the Center for Strategic and International Studies. He is a member of the National Petroleum Council, the Business Roundtable and its Energy Task Force, an Honorary Trustee of the Business Council for International Understanding. Mr. Tillerson is a member of the Executive Board of the Boy Scouts of America and a Director of the United Negro College Fund.

EDWIN M. "MAC" CRAWFORD is Chairman, President

and Chief Executive Officer of Caremark Rx, Inc. He joined Caremark (formerly MedPartners) in 1998, faced with the task of exiting a major portion of the company's operations and re-focusing business on the pharmaceutical services sector. Mr. Crawford is a member of the Board of Directors of the Pharmaceutical Care Management Association and the National Trade Association for Pharmacy Benefit Management Companies.

CECP Board of Directors

CHAIRMAN Harold McGraw III Chairman, President & CEO The McGraw-Hill Companies Timothy P. Flynn Chairman & CEO KPMG LLP Robert H. Forrester Chairman & CEO Payne, Forrester & Associates, LLC Jean-Pierre Garnier CEO GlaxoSmithKline plc William B. Harrison, Jr. Chairman JPMorgan Chase & Co. Alan G. Hassenfeld Chairman Hasbro, Inc. Rochelle B. Lazarus Chairman & CEO Ogilvy & Mather Worldwide Peter L. Malkin Chairman Wien & Malkin, LLP Marilyn Carlson Nelson Chairman & CEO Carlson Companies, Inc. William G. Parrett CEO Deloitte Richard D. Parsons Chairman & CEO Time Warner Inc. Charles O. Prince, III Chairman & CEO Citigroup Inc. Michael I. Roth Chairman & CEO The Interpublic Group of Companies, Inc. Edward B. Rust, Jr. Chairman & CEO State Farm Mutual Automobile Insurance Company Arthur F. Ryan Chairman, CEO & President Prudential Financial, Inc. Henry B. Schacht Director & Senior Advisor Lucent Technologies Inc. G. Kennedy Thompson Chairman, President & CEO Wachovia Corporation Sanford I. Weill Chairman Emeritus Citigroup Inc. John C. Whitehead Retired Deputy Secretary of State Retired Co-Chair, Goldman, Sachs & Co.

FOUNDING CO-CHAIRS Kenneth T. Derr Retired Chairman & CEO Chevron Corporation Paul Newman Chairman Newman's Own, Inc.

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2005 CGS Results Released ­ Corporate Giving Tracks Profits

In June, CECP released a first look at the results of its annual corporate philanthropy measurement survey, the Corporate Giving Standard (CGS), showing that corporate philanthropy grew significantly in 2005. The findings of the comprehensive survey were presented at CECP's Corporate Philanthropy Summit. CECP will publish a complete, public report detailing trends and analyses later this fall. For its trend analysis, CECP compared a "matched-set" of 62 companies who submitted data for both 2004 and 2005. Fifty-four of these companies are in the Global 500 or Fortune 1000. Among the highlights: 1) Total Giving is Up Significantly: The matched-set comparison revealed a 14% increase in aggregate year-over-year giving from $7.4 billion in 2004 to $8.4 billion in 2005. The median total giving amount for each of these companies was $38.2 million, up from $33.4 million the year before. This increase might be attributed to both an expansion of giving and improved measurement at participating companies. 2) Giving Matched Revenue and Profit Growth: The 14% growth in philanthropy tracked corporate increases in revenue and pre-tax profits. Among the matched-set companies, median revenues grew by 17% while pre-tax profits were up 15%. This demonstrates that instead of lagging behind this fiscal success, corporate contributions mirrored the improved revenue and profits of the past year. 3) Per-Employee Giving is Up: Despite an increase of 9% in the median number of employees, giving per employee rose from $670 to $685 among the matched-set. 4) Volunteerism is Immensely Popular: 87% of the 91 companies surveyed indicated that they have at least one formal volunteer program. 60% of these companies report using volunteer recognition awards and matching grants, while almost half (44%) offered paid time-off to employees during the year. 5) Gulf Hurricane Giving Exceeded Tsunami Giving; Both Funded Outside of Existing Budgets: Median giving to Gulf Coast hurricane relief was almost triple the median given to Asian tsunami relief (based on a matched-set of 55 companies). The median contribution to the Gulf Coast hurricanes disaster was $2.9 million, compared to $1.0 million in tsunami giving. In addition, over two-thirds (69%) of companies gave above and beyond their annual philanthropy budgets in contributing to one or the other disaster.

Why the CGS Survey is Different

Many philanthropy surveys show their value only once a year, often with a single summary report. With the CGS, participating companies gain access early in the year to an up-to-the-minute, online, benchmarking and management tool. The integrated CGS reporting module allows: · Company comparisons on key metrics · Aggregated industry benchmark reports · Internal year-over-year spending analyses · Customized peer-group reporting for focused research No other tool in the industry offers quick, on-demand reporting and benchmarking while preserving the anonymity of each company's giving data. Furthermore, the CGS community is an excellent resource for giving professionals of all experience levels.

CGS Data Results in the News

Since the survey's release in June, nineteen media outlets have covered CGS's 2005 results--outlets including business, news, and philanthropy media. Among the highlights of CECP's media coverage are: · BBCNews.com · Reuters · CNNMoney.com · The Chronicle of Philanthropy · The Financial Times CECP is excited about the growing media interest in corporate philanthropy, and will continue to explore opportunities to publicize the significant engagement of companies in their communities and with society at large.

CECP Corporate Philanthropy Summit

Over 125 top corporate giving professionals representing 75 leading companies gathered in New York City in June for CECP's Fifth Annual Corporate Philanthropy Summit, hosted by Time Warner. The event featured two days of presentations by CEOs, lectures and workshops by industry experts, interactive breakout sessions, and networking events--including a sunset dinner cruise around Lower Manhattan sponsored by JK Group, MicroEdge, and CyberGrants. "We chose the theme `Staying Ahead of Rising Expectations' to explore the increasing public confidence in corporate philanthropy programs and the growing pressures practitioners face in terms of strategy, focus, and measurement," said Charles Moore, CECP's Executive Director.

CECP summit attendees visit the Statue of Liberty during a sunset boat cruise.

Over 125 giving professionals attended the Summit hosted by Time Warner.

SAVE THE DATE: June 5-6, 2007 Next year's CECP Corporate Philanthropy Summit at Time Warner headquarters in New York City.

Attendee Feedback

"My team thought it was one of the most value-added conferences they had ever attended." - Kim Davis, JPMorgan Chase "CECP did a wonderful job pulling relevant topics and great presenters together. I was very impressed with it all and look forward to next year!" - Alyssa Bailly,Washington Mutual Bank "This year's conference was one of the best I've attended. I made great contacts and learned from both the formal presentations and informal conversations." - Jason McBriarty, Levi Strauss "This was an outstanding meeting--inspiring speakers, relevant content, excellent networking opportunities, and a good pace. We gained a lot from our participation." - Diane Bennett Eidman, Altria Corporate Services

CECP thanks the following CEO Board members for sharing their perspectives on the importance and impact of corporate philanthropy in society with Summit attendees: Dick Parsons, Chairman & CEO of Time Warner; Michael Roth, Chairman & CEO of The Interpublic Group; and Sandy Weill, Chairman Emeritus of Citigroup. "We wanted to encourage interactivity between the attendees, and go beyond our 2005 CGS Survey results this year," said Charles Moore. "We were thrilled with the turnout, and amazed at the insight and talent on the stage throughout the two days." www.CorporatePhilanthropy.org/summit session highlights, attendee list, agenda and photos

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CECP Perspectives

USAID Working in Partnership with Corporations in Africa Q:

By Pamela White, Tanzania Mission Director, USAID

What are some examples of global companies that successfully engage in philanthropy in Africa?

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USAID/Tanzania Mission Director Pamela White sponsored math and science training camp where over 500 Muslim girls on the island of Zanzibar were introduced to the magic of science for the first time. One girl responded that she was now positive that she would become a doctor because science was so interesting and important.

We are working with The Coca-Cola Company globally on clean water. Coke wants to be a good participant in the communities where it operates, while also securing clean water for its own products. More than 80% of Coca-Cola's products are water-based and the company has production facilities throughout Africa. Concurrently, USAID wants to help bring clean water to communities in Africa. Coke supplies cash resources, its employees, and the latest water-purification technology both to its plants and to local water projects. We are working with them in both Malawi and Mali in Africa. USAID also collaborates with Mars, Inc. throughout West Africa in partnership with U.S. and European chocolate companies. Over 70% of the world's cocoa comes from West Africa, which means that when you eat chocolate you are supporting small independent African farmers. USAID seeks to help these farmers improve their productivity and join the global economy, while Mars sees the prosperity of smallholder farmers as critical to the future of cocoa production. Mars has a long-term cocoa plant research initiative and utilizes its scientists, research, and latest learning about the plant, along with the company's supply chain and grant resources, to assist the region's independent farmers. In addition, the company allows these farmers to reach the international marketplace by purchasing their cocoa. ExxonMobil is involved in the exploration and production of oil and gas throughout Africa, and has a large service-station presence throughout the continent. ExxonMobil has made combating malaria a signature initiative and has dedicated millions of dollars to fight the disease in Africa. USAID and ExxonMobil have co-funded projects in Ghana, Mali, Nigeria, Senegal, Uganda, and Zambia around this objective. ExxonMobil has been a key player in the President's Malaria Initiative and has encouraged medical professionals to focus on this problem. Furthermore, ExxonMobil uses the distribution power of its service stations by placing public service announcements at gas pumps and selling subsidized, medicated bed nets at service stations through the NetMark program, which has the capacity to distribute bed nets to hundreds of thousands of people. Are there social issues that would benefit from more corporate attention? Corporations should bring with them what they know best about efficiency, i.e. their best practices, and learn how to apply this knowledge to rural African economies. Knowledge of marketing and productivity and simple technology (especially for women) is still lacking hugely in Africa. The secret to sustained, improved living conditions for Africans is through economic development. Nothing will be sustainable if their economies are not grown.

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Where and how has corporate philanthropy been most effective? USAID's experience is that corporate philanthropy is particularly effective when linked to a company's core business. In order to address a challenge, a company must focus on objectives such as risk management, strengthening the "enabling environment," and business development in order to leverage its resources--its people, its technology, its expertise, its supply chains, and, yes, its grant money. Corporate philanthropic involvement has also been effective when the corporate organization utilizes the skills and knowledge of development partner organizations and communities. Through the Global Development Alliance (GDA) initiative, USAID has partnered with the private sector in 400 partnerships in developing countries over the last four years, bringing $1.4 billion in resources to these partnerships and leveraging $4.7 billion in cash and in-kind contributions from companies. In Africa, we have partnered very successfully with companies, particularly in the energy, mining, and commodities sectors. These partnership approaches have been extremely successful.

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Given the diversity of development in Africa, as well as its growing strategic importance, we find that many industries see part of their future there; they look at the continent as an opportunity, not as a charity case.

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Tips for Success in New Philanthropic Initiatives in Africa

1. DO YOUR RESEARCH; DON'T PICK A PROJECT OUT OF A HAT. Decide on a geographic area and then visit the location to gather as many facts about it as you can. Partner with local organizations (or USAID) that know Africa, have been on the ground, and have vast experience. What works in America is not necessarily effective elsewhere. 2. DON'T ASSUME THAT LOCAL COMMUNITIES HAVE NOTHING TO CONTRIBUTE. Engage them in determining the best approach and get their buy-in. Figure out what they can bring to the table, then use it! 3. STAY GROUNDED; DON'T THINK YOU CAN SOLVE ALL OF AFRICA'S PROBLEMS SINGLE-HANDEDLY OVERNIGHT. Pick a project in one programmatic area and in one geographic area that is of interest to your company and stick with it. For example, instead of improving education in Country X, decide instead to improve math and science education for girls in two districts in Country X. 4. ENSURE THAT A SENIOR EXECUTIVE FROM YOUR ORGANIZATION WILL BE PERSONALLY INVOLVED. The passion, the purpose, and the productivity of your activity skyrocket when someone influential truly cares. 5. FACTOR IN SUSTAINABILITY ISSUES DURING THE PLANNING STAGES, NOT WHEN THE PROGRAM IS CLOSE TO SUNSET. Consider how the improvements you hope to make in Africans lives can be sustained. 6. GET INVOLVED. WORKING IN AFRICA IS A JOY. No one has ever traveled to Africa and returned to his or her home country unchanged. It should not be a simple matter of giving money; it should be a comprehensive mission in line with your corporate interests. If the project has a direct link to your company (like clean water does to Coca-Cola), even better. 7. JUMP IN. DON'T WASTE YEARS EVALUATING AND STUDYING. You can adjust your plans going forward, but each year you wait to take action is a missed opportunity.

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CECP Best Practices

Deutsche Bank's Commitment to Microfinance in Africa

By Dr. Josef Ackermann, Chairman of the Management Board and the Group Executive Committee, Deutsche Bank

At Deutsche Bank we believe we can do the most to address human need worldwide by combining our philanthropic activities with our capabilities as a global financial services powerhouse. In fact, over the past eight years we have leveraged our financial knowledge, client relationships, capital resources, global offices, and employee enthusiasm to extend the reach and impact of microfinance throughout the developing world, including Africa. We have channeled our efforts through microfinance institutions (MFIs), which serve the poor with small loans for their self-employment, creating the potential to address poverty realistically and to improve lives without an ongoing reliance on charity. Our focused aim and strategy have been to enable microfinance programs to attain scale and sustainability through access to conventional sources of capital for onlending. Deutsche Bank strives to serve as a catalyst, encouraging others to participate in the industry's growth and success. We believe microfinance has universal applicability in the developing world. The results speak for themselves: · Our initial Deutsche Bank Microcredit Development Fund brought wealthy families together in a partnership with the Deutsche Bank Americas Foundation to capitalize a guarantee fund to leverage local financing on behalf of microfinance institutions for on-lending to the poor. · In November 2005, we launched the $80 million Global Commercial Microfinance Consortium, bringing together development agencies, venture philanthropists, and major corporate leaders--including AXA, HP, Storebrand, Merrill Lynch and MunichRe--to make "double bottom line" investments in the sector, i.e. with social and economic returns.

Microloans provided by Uganda Finance Trust, a Deutsche Bank Microcredit Development Fund client, have allowed this woman to grow her poultry business, increasing both family income and nutrition.

The activities of these MFIs have led to social and economic benefits, particularly for wo m e n a s demonstrated by higher education rates, improved health and housing conditions, and less dependence on donor support for subsistence.

But in terms of potential, there is much more to this story. In Asia and Latin America the concept has proven particularly robust, with some of the most successful MFIs delivering loans to millions of individual entrepreneurs and smallbusiness clients, achieving returns on equity surpassing those of even the most profitable international commercial banks. The activities of these MFIs have led to social and economic benefits, particularly for women--as demonstrated by higher education rates, improved health and housing conditions, and less dependence on donor support for subsistence. In Africa, microfinance has yet to reach this same level of scale or economic viability, as it is constrained by: 1) a lack of well-educated managerial talent to drive organizational growth; 2) a limited communications and technology infrastructure, which is needed to achieve an efficient delivery of finance services; 3) the perceived political risk among investors; and 4) a pattern of capital flight out of Africa, among the wealthy, to Europe and the U.S. Despite these challenges, we believe microfinance can play a major role in the continent's development. Tribal customs, particularly in rural areas, support a tradition of trust and self-reliance. Repayment rates are high, even among the smallest MFIs operating in the most difficult environments. In addition, the international donor community is ready to consider an investment strategy for Africa as an alternative to failed policies of direct aid and large-scale infrastructure projects. That Africa can nurture successful institutions is evident in places like Kenya, where the Equity Bank reaches 550,000 clients, and Uganda, where progressive government support has created a conducive regulatory environment enabling licensed MFIs to accept deposits to finance their growth. In 2005, Deutsche Bank established the DB Microcredit Start-up Fund in recognition of the need to provide early stage capital to MFIs that show great promise for commercial and social success in particularly challenging environments. In Rwanda, a loan from this fund will help a microfinance organization reach its first 2,000 clients before the end of the year. Africa needs home-grown successes rooted in the ambitions of its own people. I believe microfinance has the potential to fuel a grassroots economic expansion that can help liberate Africa's communities from a continuing cycle of dependency. I invite others to join Deutsche Bank in considering the best way to finance Africa's entrepreneurs. Josef Ackermann is a member of CECP.

Socremo, a Mozambique microfinance institution, provides clients an opportunity to pursue their entrepreneurial ambitions using financing from the Deutsche Bank-managed Global Commercial Microfinance Consortium.

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CECP Best Practices

Putting GE's Resources to Work in Africa

By Jeffrey Immelt, Chairman of the Board and Chief Executive Officer, GE

The five-year, $20 million GE Africa project was launched in October 2004 to bring improved healthcare provision and infrastructure to hospitals and clinics in Africa. Donating equipment from our businesses was a clear approach to improving the region in a strategic and sustainable way. By tapping into our diverse portfolio of infrastructure businesses, we are able to match our technical capabilities with communities by providing access to cleaner water, medical treatment, and electrical power in Ghana--as well as (per the project plan) in additional African countries. To date, we have successfully commissioned four sites, with plans to add five more this year: · In Ghana's capital city of Accra, our critical-care monitoring system--integrated into a complete computer network that allows nurses to monitor an entire ward of pre-op and post-operative patients--will assist the Korle Bu Teaching Hospital in its mission to provide life-saving healthcare and train doctors from all over the country. · In the rural town of Asesewa, we upgraded a local clinic serving 100,000 people into a fully equipped district hospital. · We donated a new fluoroscopy system, water for the kidney dialysis center, and a retrofitted electrical power system to the Komfo Anokye Teaching Hospital (KATH) in Kumas, which serves about half of the twenty million people of Ghana as well as neighboring Burkina Faso and the Côte d'Ivoire as these regions' main tertiary referral center. · The Kintampo District Hospital, serving a population of 160,000, now has the necessary equipment and training to enable the rural hospital to help reduce disease and lower mother and infant mortality. GE donated lab equipment and provided Internet connectivity to Kintampo's Rural Health Training School and the Health Research Centre, which provide training for Ghana's entire para-medical staff. I am proud of the GE employees and partners who have dedicated themselves to this terrific humanitarian project. Jeffrey Immelt is a member of CECP.

The waiting area at the Komfo Anokye Teaching Hospital.

Four GE businesses--GE Healthcare, GE Energy, GE Infrastructure and GE Consumer & Industrial--are donating healthcare and power generation equipment, water filtration systems, appliances, and lighting to African clinics and hospitals. In addition to equipment donations, we provide the necessary training and support to guarantee maximum product efficiency. By combining GE's technology with our training and management skills, we hope to ensure a complete and sustainable service in these communities. In addition to product donations and training, we have engaged our African American Forum (AAF), a GE affinity network, to establish ongoing relationships at the community level. Once launched, each site is "adopted" by a GE business-based AAF chapter that engages senior managers on-site, initiates benchmarking studies, and tracks community health progress. Local involvement and ownership are crucial to such a project's sustainability. We developed partnerships with the state and local government agencies, local tribe leaders, and NGOs working on the ground. Each partner played its part in making the installations successful, whether by negotiating import regulations, digging trenches for water pipes, or constructing buildings to house the clinics. The AAF has also sponsored a project to collect school supplies and "Mom and Baby" kits. More than 22,000 items have been collected so far.

By combining GE s technology with our training and management skills, we hope to ensure a complete and sustainable service in these communities.

AAF Chapter Leaders with Tribal Leaders at Kintampo taken at the commissioning ceremony.

Microsoft Unlimited Potential: Investing in Africa's Future

By Dr. Akhtar Badshah, Senior Director Global Community Affairs, Microsoft Corporation

Some of Africa's social and economic crises are painfully obvious: poverty, disease, hunger, and war. Woven into this tapestry of need is a problem that may be less heart-wrenching, but no less pressing: a debilitating lack of access to information technology, and a dire shortage of people with IT skills who can help Africa gain economic empowerment and leave poverty behind. Rubin Julius's story is not unlike that of thousands of others living in poverty--and yet for Rubin, a future filled with hope and opportunity is now within reach. Rubin Julius grew up in a rough part of Parrl, a town in South Africa's Western Cape region. His neighborhood was rife with gangs and poverty. Rubin saw many of his friends die, and when he was only fourteen, his father was murdered. Rubin then dropped out of school to support his family. In an area where half the population was unemployed, opportunities were limited. Fortunately, Rubin heard about a community technology center run by the Koinonia Youth Development Organization; it was there that he discovered a passion for computers, and thus a new career path as well. Continued on page 7

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Helping Africa Compete

By Paul Pressler, President and Chief Executive Officer, Gap Inc.

left 50,000 people dependent on the garment industry. Our biggest challenge in the region is the lack of globally competitive textile mills. Chasing fashion trends requires faster speed-to-market; so in order to compete, it's critical that manufacturers source their fabric locally. To address this need in Lesotho, we're collaborating with other stakeholders through the MFA Forum to develop a national strategy that supports their textile and garment industry. Second, to help factories improve labor conditions and attract more business, we're helping provide tools and training. This includes working with the World Bank to develop an education center in Lesotho, giving more Africans the opportunity to supervise local garment factories and improve factory operations. And finally, we must help fight the AIDS pandemic. In Lesotho, one out of every three people is infected with HIV. It's a social crisis, as well as one of the country's greatest obstacles to economic growth. In partnership with the Apparel Lesotho Alliance to Fight AIDS (ALAFA), Gap Inc. is helping provide services to garment factory workers, including HIV/AIDS education, testing and treatment, which we hope will become a model for other markets. We are also partnering with Bono and Bobby Shriver on (PRODUCT) RED, a business initiative dedicated to fighting AIDS in Africa. (RED) is a unique opportunity to share our expertise in design, merchandising and marketing. This fall, we will be selling a special collection of Gap (PRODUCT) RED products, some of which are manufactured in Africa or with African cotton or trims, with half of the profits going to the Global Fund. (RED) helps raise awareness and generate excitement, while allowing us to invest in Africa in a sustainable way, by supporting economic development and helping ensure a healthier future for the communities where we do business. Thinking about the enormity of the issues in Africa can be overwhelming, but I believe we can make meaningful progress. It requires seed money and subsidies to help build infrastructure and capacity. It requires tools and training for local workers. And it requires dedication to fighting the AIDS crisis. Change won't happen overnight. We must be willing to commit for the long-term to show the world that Africa can provide a competitive advantage. Paul Pressler is a member of CECP.

A health clinic at a garment factory in Lesotho, which provides HIV testing for workers.

Apparel retailers are uniquely positioned to support Africa, as garment manufacturing is a "starter industry" for many developing countries. Our industry is experiencing a historic shift, with the lifting of textile trade quotas fundamentally changing the way retailers source products. In the past, quotas forced us to diversify our sourcing base more than we needed to. Today we can choose our vendors and build strategic relationships with those who meet our business needs and who share our values and commitment to high labor standards. We know that businesses won't come to Africa solely for the societal benefits to the region. We must help build the capabilities needed to compete in a global economy. This starts with a comprehensive capacity-building strategy. In Lesotho, our most important sourcing market in the region, famine and the loss of mining jobs have

Microsoft (Continued)

The Koinonia Youth Development Organization is one of fifty "Digital Villages" supported by the Microsoft Unlimited Potential program in South Africa. Through Unlimited Potential, we are partnering with local nonprofit agencies, UN organizations, corporations, and governments to provide technology skills through community technology centers. Each of the centers provides Internet access and training classes using curricula created by Microsoft for the "community learner." Microsoft hopes by 2010 to have increased the number of South Africa's Digital Villages to 284--one for every municipality in the country. Additionally, we've made encouraging strides and supported initiatives in other African nations: in education, government, Internet security, safety, and more. In all, we've invested nearly $24 million in Africa's future. We've set an ambitious goal: to help African governments create sustainable economic growth by delivering the benefits of IT training to more than 45 million Africans in 43 countries within the next four years. The issues facing Africa are daunting. But through the investments we've made on the continent, I have seen first-hand that success is possible, and I have found faith that people across Africa, like Rubin, can solve their most pressing problems. Microsoft was founded on the belief that technology--if accessible, affordable, and easy to use--can empower people to realize their full potential. We have found that widespread access to information technology as well as a technologically skilled workforce are critical to social and economic prosperity. We believe it can be equally transformative for developing countries like those in Africa. At Microsoft, our investments in Africa fit our corporate mission, strengths, and philosophy, and we look forward to partnering with other organizations to broaden these investments' impact. Read more about Microsoft's Unlimited Potential program at www.microsoft.com/about/corporatecitizenship /citizenship/giving/programs/up/.

Microsoft Unlimited Potential program brings IT skills training to advance social and economic opportunity to Africa.

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CECP Perspectives Continued Q:

Giving Professional Perspective s

By John Damonti, President of the Bristol-Myers Squibb Foundation

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Why did BMS select Africa as a primary area of focus for philanthropy? In the late 1990s, Bristol-Myers Squibb was already a global leader in combating HIV/AIDS and understood the societal ramifications of the pandemic. Our medicine was an important part of the solution--but only part of the solution. Training and infrastructure needed to be developed and built to ensure that the medicine could be delivered effectively. There was a void to be filled, and we believed we had knowledge, an opportunity, and a responsibility to fill it with innovative programs for the most vulnerable populations. We focused on community education and support, medical research, and treatment in the hardest-hit and most resource-limited areas. On which social issues in Africa has BMS philanthropic involvement been most effective? If you consider the 200 or more programs developed and supported by BMS, I think three will stand out. First, we developed an NGO Training Institute to enhance governance, share learnings, and to build skills and capacity for NGOs. Second, we created six community-based treatment and support sites to serve as models for how to structure the delivery of treatment in very resource-limited settings, as well as to engage the community in providing education, prevention, counseling, nutrition, and income generation, in order to maximize the effectiveness of these treatments. Finally, in partnership with the Baylor College of Medicine and the continent's national governments, we turned our attention to the millions of children infected by HIV/AIDS and established Africa's first network of Pediatric AIDS centers. In addition, we created the world's first Pediatric AIDS Corps, whereby 250 pediatricians (50 per year) will be sponsored to live in Africa over the next five years. During their minimum one-year stay, they will treat children and their families, as well as train African healthcare professionals in methods of treatment going forward. What aspects of your engagements have made your efforts successful? First, I think the magnitude of our financial commitment--$150 million--and its longterm nature have sent a powerful message to our partners and those who stand to benefit. Second, we have structured our initiative such that it clearly isn't just about giving money or free drugs. It's about developing and funding innovative programs at the local level--i.e. programs that will encourage capacity and sustainability by being focused specifically on the needs of the areas in which we work. Third, we understand the importance of partnerships--partnerships with NGOs, faith-based organizations, national and provincial governments, and groups of people living with HIV/AIDS-- and how we have had to work alongside them, right on the ground. Fourth, we hired local staff so this would not be a program governed from on high, at remote corporate headquarters in America. Fifth, we turned to local advisory boards of physicians, academics, public agencies, healthcare professionals, and representatives of NGOs and

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governments for guidance and practical advice as to which grants to support. Above all, our goal is to build local capacity and to invest in sustainability. Ideally our programs will be replicable for the future and in other parts of both the African continent and the rest of the world--while also being effective and meaningful today.

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What are the biggest challenges that corporate philanthropy faces in Africa? What are BMS's specific challenges? I think the challenges that we face and that corporate philanthropy faces are similar: · NGOs, academia, and governments need to expand their notions of what companies--including pharmaceutical companies like Bristol-Myers Squibb--can contribute beyond cash and product. · They need to consider just how the business community's knowledge and skills can fill gaps and enhance their own efforts. For example, in Africa, there is a clear need to help develop infrastructure and capacity. A greater focus on technology and skillset transfers including logistics and infrastructure development can make a measurable difference. · We must also build skill sets by helping NGOs enhance management capabilities so they can build their own capabilities to attract additional funding and support. What experience can you share with giving professionals looking to conduct philanthropy in Africa? First, partnerships and collaborations are critical. You can't effect change by yourself and you may not even know what the actual needs and obstacles are until you are on the ground. This means creating locally based capabilities and developing on-theground insights--either through local staff and partnerships or the use of advisory committees who have real power to make decisions and help implement them. If there is one thing that Africa needs more than anything else it is infrastructure--not just roads or physical plants, but knowledge and training. There is a "brain drain" occurring across Africa, and this must be stemmed in order that the best, brightest, and most committed Africans will stay to help their fellow countrymen and women--in healthcare, academia, government, and technology. Capacity must be built and it must John Damonti, President, Bristol-Myers Squibb be sustained. Otherwise you're Foundation at the opening of the Secure the spending a great deal with very little Future, Community Based Treatment Support possibility of having lasting impact. program in Ladysmith South Africa.

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CECP News Continued

CECP Excellence Awards -- Call for Applications

DEADLINE: November 15, 2006 www.CorporatePhilanthropy.org/excellenceawards (application forms and rules of entry)

Now celebrating its seventh year, CECP's Excellence in Corporate Philanthropy Awards event recognizes companies for their philanthropic leadership, innovation, measurement, and partnership. Past recipients include: Large Company Award (revenues >$3B) 2005 Cisco Systems 2002 Target 2004 GE and Novartis 2001 IBM 2003 Pfizer 2000 Merck Small Company Award (revenues = or <$3B) 2005 Grand Circle Corporation 2002 Whole Foods Market 2004 Arch Chemicals 2001 Timberland 2003 Hasbro

CECP

Fall 2006

New Century Philanthropy is published by the Committee to Encourage Corporate Philanthropy (CECP). Editor: Cari Parsons

Directors Nonprofit Excellence Award 2005 KaBOOM! 2003 The Children's Health Fund

(nominated by The Home Depot) (nominated by GlaxoSmithKline)

2004 Jumpstart

(nominated by Pearson and Starbucks)

Address: 110 Wall Street, Suite 2-1 New York, NY 10005 Phone: 212.825.1000 Fax: 212.825.1251 E-mail: [email protected] Web Site: www.CorporatePhilanthropy.org Art Director: Mercedes McGee

CECP gives awards in three categories. Large and small companies are invited to apply for this year's Excellence Awards, which will be presented at a high-profile ceremony in New York City at The McGraw-Hill Companies on National Corporate Philanthropy Day. Corporations are also encouraged to nominate a nonprofit partner for the Directors Award, which features a $25,000 cash prize for the winning nonprofit. Applicants will be judged by a Selection Committee of thought-leaders in the nonprofit, media, consulting, academic, and corporate arenas.

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