Charity begins at home: Local foundation, after years of work in third world, turns its giving to Austin

Austin American-Statesman: Oct. 26, 2003

A few months ago, Latina Mami was barely scraping by. The Northeast Austin charity, which provides support and education to Latina mothers, had no indoor bathroom, no air conditioning and no telephone. Today, the group has a new, fully equipped office, more supplies and big plans for the future -- thanks to a $25,000 grant from A Glimmer of Hope Foundation.

"They gave us a chance when no one else would," said Gloria Perez-Walker, Latina Mami's founder. "Now we're getting interest from other funders."

After years of work in Ethiopia, the Austin-based Glimmer is shining its light at home on grass-roots groups such as Latina Mami. The international charity -- created by a $100 million endowment after the sale of an Austin tech company -- awarded $25,000 grants to four Austin nonprofits on Friday. It was the second round of grants the foundation has given this year.

And there's much more to come, said Glimmer founder Philip Berber. Over the next 10 years, the foundation will give $5 million to charities that work with underprivileged youth in East and South Austin, he said. Next year, Glimmer plans to fund 20 projects with $500,000.

The intent is to help children and get more people involved with the city's underprivileged neighborhoods, Berber said.

"We want to build a bridge across I-35," he said. "We are a divided community."
Glimmer emerged in 2000, when Berber and his wife, Donna, sold their online trading company CyBerCorp to Charles Schwab Corp. for $488 million. The pair created a $100 million endowment for international charity work. One hundred percent of donations goes directly to charity.

Glimmer first focused on health and education programs in Ethiopia. In 2002, the foundation funded 141 projects -- including famine relief and school construction -- at a cost of more than $2.75 million.

In the United Kingdom, the organization funded programs designed to build the self-esteem and skills of excluded youths. It got involved with the projects, meeting with founders and helping them set goals, Donna Berber said.

"We didn't just want to write a check and walk away," she said.

Then it was time to focus on Austin.

About a year ago, the Berbers began researching projects here. They wanted grass-roots projects run by "community angels," people who help their neighborhood youth without much money or recognition.

"Their hearts are full of the well-being of the community," Philip Berber said. "They don't pop up on anybody's radar screen. You have to go out and find them."

Glimmer officials approached the community groups with a less bureaucratic style. Applications were two pages, maximum. Decisions were made quickly. Charities helped set their own goals.

This summer, Glimmer awarded its first round of $25,000 grants to five Austin organizations.

Latina Mami rented a new office, bought computer equipment and set up a phone line. Huston-Tillotson College repaired its aging gymnasium. Outreach Productions, which promotes literacy and libraries, bought supplies for its mobile puppet show and writing workshops. It also was able to put on more shows, said director Debra Orr.

"We didn't have the supplies and couldn't afford to get people out there to the schools," she said.

Glimmer's effort comes at a time when nonprofits are struggling to find funding sources in a poor economy. Private donations are down. Foundations are giving less. Grants are smaller.

Local governments, struggling with their own budgets, are cutting back. Earlier this year, the Austin City Council reduced funding for nonprofits by 5 percent.

That environment makes it hard for new nonprofits to get off the ground, said Michael Nellis, project director for Greenlights for Nonprofit Success, an Austin-based group that works with Central Texas Charities. New groups don't have the resources to pay for office space, equipment or staff, he said. And they're competing with well-established nonprofits for limited dollars.

"But there's a real value in having these kinds of grass-roots organizations," Nellis said. "They can fill a niche and reach people that a lot of larger organizations can't."

Meanwhile, the need for youth-based services is growing, said Dave Martin, executive director of the Boys and Girls Clubs of the Capital Area, which received a $25,000 grant on Friday. In 2001, the group served 1,300 children. This year, that number is expected to hit 2,500.

Glimmer's grant will fund a weekly teen night at the group's East Austin Club. The event, which includes sports activities, music, and food, costs $500 to $750 per night. The organization could only afford to host the event once a month as part of a pilot program, Martin said.

During the next year, they'll be able to host 45 teen nights.

"Without Glimmer, it wouldn't have happened," Martin said. "In fact, we probably would have had to discontinue it altogether."