The Boston Review has a special issue devoted to the question of what foundations are for.
The lead review describes the role that foundations are supposed to play: to encourage innovation, to prod government to change its priorities, to demonstrate the validity of a different path, etc.
Various commentators, including me, were invited to respond. I tried briefly to explain how the role of foundations in the K-12 sector have changed in significant ways. The three biggest foundations now act in concert with the U.S. Department of Education, not trying out new ideas, but imposing their shared ideological agenda. By he power of this combine, they actually exclude and repress any thinking other than their own.
Diane Ravitch's blog 
Well said.
Diane, I would not say it’s an ideological agenda but simply a business agenda pursued by political means: they are trying to take what belongs to all of us, claim it belongs to just them, and charge us for the privilege of using it.
That sounds more like theft or at least a scam than any ideology.
http://www.nysun.com/new-york/how-new-generation-of-reformers-targets-democrats/55537/
“A money manager recently sent an e-mail to some partners, congratulating them on an investment of $1 million that yielded an estimated $400 million. The reasoning was that $1 million spent on trying to lift a cap on the number of charter schools in New York State yielded a change in the law that will bring $400 million a year in funding to new charter schools…
They count the charter cap lift, signed by Mr. Spitzer in April [2007] as their first major victory.”
As a teacher facing the dangerous effects of unfettered foundation power and money, I agree with Judge Posner regarding the inherent danger in the “hereditary monarchs” that foundations are. Let me add that I think today’s foundations (the ones opressing public education), through some combination of arrogance and boredom, have taken it upon themselves to dictate rather than benignly contribute; I believe that their billions can kill a democracy, and I believe that on some sinister level, this is exactly with the likes of Gates and Walton are after.
Democracy is a real burden for people like Walton. He doesn’t have to ask for anyone else’s opinion or permission in the way he runs Walmart, so why should he have to ask in any other sphere of life? The concept that other people – especially “those” people – even have worthwhile opinions is so utterly foreign to guys like him that democracy is like another planet.
The linked article doesn’t fully explain foundation funding. Linked article states:
[In the United States, a “payout” rule mandates that foundations disburse at least five percent of their assets every year, though the costs of running a foundation count toward this payout. Foundations are also required to file an annual tax form with some basic data about trustees, employees and their salaries, and assets.]
There are two types of private foundations. A private foundation must disburse 5% of assets as stated above, however a public charity (the other category of private foundations) must disburse the greater of 85% of net income or 3.5 % of assets.
There are other differences.
http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Public-Charities
A private foundation is any domestic or foreign organization described in section 501(c)(3) of the Internal Revenue Code except for an organization referred to in section 509(a)(1), (2), (3), or (4). In effect, the definition divides section 501(c)(3) organizations into two classes: private foundations and public charities.
Generally, organizations that are classified as public charities are those that
Are churches, hospitals, qualified medical research organizations affiliated with hospitals, schools, colleges and universities,
Have an active program of fundraising and receive contributions from many sources, including the general public, governmental agencies, corporations, private foundations or other public charities,
Receive income from the conduct of activities in furtherance of the organization’s exempt purposes, or
Actively function in a supporting relationship to one or more existing public charities.
Private foundations, in contrast, typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs.
Thanks for the detailed explanation.
We need light as well as heat.
In K-12 education, foundations are a taxpayer-subsidized way to pursue your financial and ideological interests, while receiving fawning and credulous news coverage.
Whatever foundations and their think-half-tracks were supposed to be in the beginning, too many of them now have become nothing more than tax-advantaged lobbies.
When I tried to email this article to others, the window pop up says the article “has been suspended”…so thank you Diane for getting it to us before it went to the media Elysian Fields.
Ellen. News to me.
I will check what happened
Ellen, try googling Boston Review and foundations
Joan Veon had a good handle on what you are speaking of.
the PPP, Public Private Partnership. Our small town’s newish school superintendant is rushing to partner up with anybody he can to tap into the dollar spickot. the town council of 12 all of one political party are actually attempting to lease the school, after continually raising property taxes every year by 15% and lowering services to residents and property owners. the school has historically been excellant, reknown, and solvent and supported by the town. the council and its cronies have bled the town dry and now have brought the school into the towns rabbit hole of partnerships and grantseeking and bringing in outside, way influences, to get $ for political power. the incestuous blendings and monetary meanderings. they illicit influence and are unaccountable. Foundations and nonprofits seem to slush money around, got a grant, gave a grant. sounds like laundry. part of the corporatocracy exemplified by common core, P21, DOE, foundation for Excellance in Education, Gates foundation and hundreds more all with an agenda and a carrot. taking liberty away from our republic under the guise of benevolence. there are 273 tax exempt organizations in our 1/2 mile sq suburban town. does it disturb anyone that international foundations are influencing our education system? smells like global spirit.
unfortunatly
there is always someone willing to sell their soul, ( stakeholder) and plenty of useful idiots to help them. our kids and families and society pays.
Well the fact that Gates ‘foundation; completely owns NPR was evident today by this story: http://www.npr.org/2013/04/29/179762895/parents-in-indianapolis-ind-start-their-own-school
Their charter touting stories are only increasing. First the feel good interviews with Melinda now one of these pro charter stories every other day. They must be getting scared that the tides are turning against them and they want to shore up the wall against public schools/teachers.
Public education in Indianapolis is under dire threat. It may soon be extinct.