In 2004, six years into the founding of Google, Page and Brin
established the Google Foundation with $90
million. The foundation began supporting
and promoting ventures for economic development and poverty
eradication in developing countries. The foundation attached
particular importance to market-based, entrepreneurial,
microfinance and technological solutions.
Google also dedicated funds to health research and relief,
supporting the work of such organizations as the Make-a-Wish
Foundation and Doctors Without Borders. By
2006, the foundation has donated $33 million to 850
nonprofits in 10 countries for free advertising, helping them
bring their missions to public attention.
Recently, Google made the next step and established a
philanthropic organization named Google.org, endowed it with
$1 billion to combat poverty, disease and global
warming. This organization, however, will
not be a charity in the traditional sense of the
word. Unlike the majority of existing
philanthropic foundations, Google.org will be a for-profit
non-for-profit.
What is the rationale for this unusual structure?
Google founders believe that the organization's for-profit
status will allow Google.org to do something that traditional
nonprofits cannot: make profits, fund start-up companies,
partner with venture capitalists and lobby
Congress. It will also have to do
something that other nonprofits do not - pay
taxes.
Page and Brin also believe that the for-profit status will
give Google.org additional flexibility and
competitiveness.
Dr. Brilliant, the new executive director at the helm of
Google.org, draws a parallel between the traditional
structures of corporate foundations to a musician limited to
playing only the high register of the
piano. "Google.org can play on the entire
keyboard. It can start companies, build
industries, pay consultants, lobby, give money to individuals
and make profit." Quite importantly, if
Google.org returns a profit, the profit will stay with
Google.org and will not be used to fund other Google
activities.
A novel move, isn't it? Page and Brin hope
that "someday this institution may eclipse Google itself in
terms of overall world impact by ambitiously applying
innovation and significant resources to the world's
problems."
