Sean Parker Writes about the New Group of Billionaire Hacker Philanthropists and Forms The Parker Foundation with $600M

Sean Parker of Napster and Facebook fame is a very smart guy, and he recently wrote “Philanthropy for Hackers;” the essay posits that newly minted tech billionaires are “hackers,” like himself, Mark Zuckerberg, and the Google guys, who collectively represent a new wave in philanthropy:

The barons of this new connected age are interchangeably referred to as technologists, engineers and even geeks, but they all have one thing in common: They are hackers. Almost without exception, the major companies that now dominate our online social lives (Facebook, Twitter, Apple, etc.) were founded by people who had an early association with hacker culture . . . Hackers share certain values: an antiestablishment bias, a belief in radical transparency, a nose for sniffing out vulnerabilities in systems, a desire to “hack” complex problems using elegant technological and social solutions, and an almost religious belief in the power of data to aid in solving those problems . . . At the same time, they are intensely idealistic, so as they begin to confront the world’s most pressing humanitarian problems, they are still young, naive and perhaps arrogant enough to believe that they can solve them.

The above paragraph, as well as most of Parker’s other points, are true and well considered (and they complement our review of Ken Stern’s With Charity for All). Perhaps more importantly, Parker is walking the walk by funding the newly minted Parker Foundation with $600 million. It’s great that billionaire hackers are learning to give away their money (and there are only so many 1,000 foot yachts and $50M penthouses one can buy—even billionaires reach diminishing marginal utility for luxury goods).

Parker does not, however discuss how average nonprofits funded by these new foundations would actually deliver human services to address humanitarian problems. While this might have not made the editorial cut, I suspect that he’s probably not too familiar with most nonprofits and how they work. Maybe he is only looking for Givewell.org-style nonprofits.

A quick look at The Parker Foundation website reveals that this is a foundation that does not accept unsolicited proposals. While there are some interesting thoughts and a clever PERT diagram on the site, there are no submission guidelines. Although not explicitly stated, The Parker Foundation has to find your nonprofit and contact you, instead of your agency submitting a proposal. This reverse access to funding logic is used by a fair number of foundations, whether they are old school or nouveau riche. But I’ve never understood why anyone thinks this approach is a good idea.

This approach to giving away foundation grants reminds me of the hokey ’50s TV series, The Millionaire. Every week the eccentric millionaire gave $1 million to some sad case person he’d never met to help them solve their life crisis. This was more or less a scripted version of another odd ’50s reality style series Queen for a Day.* It seems that Sean and/or the probably also idealistic foundation staff believe they can somehow not only identify important humanitarian problems, but also which nonprofits are likely to have good solutions. I have no idea how they do this, since, as Jake wrote, evaluating human services programs is hard to do.

I’m often asked by clients how to cozy up to funders like The Parker Foundation (or the much larger Bill and Melinda Gates Foundation, which in most cases also does not accept unsolicited proposals). I tell them they should hang out at private airport terminals, since Sean, Bill or Melinda are unlikely to be found in a middle coach commercial airline seat waiting to be chatted up—think private jets and other places rich folk hang. The sad truth is that, unless you happen upon a foundation founder at Trader Joe’s**, you’ll just have to hope that one of their foundation program officers stumbles across your nonprofit. This, of course, is particularly unlikely to happen to a newly formed nonprofit, which is actually more likely to have an innovative idea than an established nonprofit with a social media consultant to get them noticed.

Seliger + Associates could have helped The Parker Foundation design their grant application process and submission guidelines to reflect the way human services are actually delivered. Only one foundation in 22 years has contacted us about helping them with their grant submission process, however, and they didn’t hire us. Whether or not the source of a foundation’s assets is a successful hacker billionaire like Parker or a more pedestrian scion of the Walton clan, the foundations themselves invariably have founders, board members and staff, who don’t have a frame of reference for nonprofit culture and are idealists, or as we call them true believers. True believers, however, don’t run most nonprofits and, unlike most foundation funders, experienced nonprofit managers know the difference between the real world and the proposal world. Nonprofits often game, deliberately or not, the good intentions of idealistic funders.


* My mom was a huge fan of both shows and I actually went to a taping of Queen for a Day in Minneapolis when I was about 5—she was astounded that her sad tale of woe, submitted on an index card before the taping, didn’t result in her being selected to receive a dime store tiara, dozen long stemmed roses and whatever else the Queen got that day.

** When Jake was a teen, we lived in Bellevue, WA, close to the headquarters of Microsoft. Neighbors and friends told stories of running into Bill at the Dairy Queen or the lunch buffet at an Indian restaurant near the Microsoft campus. Although Jake loved that buffet and DQ, and we often went to both, we never ran into Bill. I did, however, sometimes run into Steve Balmer, but I’ll save that story for another post.

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