The Broad Foundation and Broadies: Kings of “Distruptive” and “Unreasonable” Trickle-Down Reform
Eli Broad is infamous for his book The Art of Being Unreasonable. Broad is also know for venture philanthropy, the approach billionaires have taken to influence and direct educational policy by inserting billions of dollars. Is the Broad “disruptive” and “unreasonable” trickle-down approach to school reform the right fit for the United States? For your community? (For all of Cloaking Inequity’s posts on Trickle-down reform click here) Today Cloaking Inequity will explore the Broad Foundation, Eli Broad’s philosophy of venture philanthropy and the guiding tenants of The Broad Superintendents Academy. In a future post here at Cloaking Inequity, I will take up Houston’s selection as the the first two-time winner of the Broad Prize.
Birth of the Broad Foundation
Billionaires Eli & Edythe Broad come from humble beginnings in Detroit. The couple both worked their way through the Detroit public school system, then Eli Broad continued on to Michigan State University (Go Blue!). Eventually graduating with a degree in accounting and later becoming a CPA. In 1957, Eli Broad started up a construction business with family member Donald Kaufman. Kaufman and Broad formed KB Homes; a company that would eventually be publically traded and turn sizable profits.[3] In 1971, Broad purchased a life insurance company called SunAmerica. SunAmerica grew and was ultimately merged with AIG in 1999.[4]
The sale and merger of SunAmerica in 1999 marked a turning point for the Broads. Although the couple established a foundation for charitable giving back in the 1960s, the 1999 sellout spurred the growth of the foundation with Eli taking the lead. Then in 2010, Eli and Edythe Broad signed The Giving Pledge, stating they would pledge 75% of their wealth to venture philanthropy. The Broads identified public education as a focal point of their giving.[5] As of 2011, the Broads have given $500 million to public education and $2 billion to The Broad Foundation.[6]
Venture Philanthropy
Eli Broad is guided by his self-defined criteria of venture philanthropy. In Eli Broad 2012 book, The Art of Being Unreasonable, he outlines criteria for his giving. Eli Broad prescribes to the notion that running The Broad Foundation more like a for-profit than a non-profit. He further clarified that he is not operating a charity and that he expects results for each dollar spent.[7] Some have called Eli Broad a “control freak” and a “bully” as his giving is
