Silicon Valley

Silicon Valley: Wealth Redistribution, 1 Percent-Style

The Puente de la Costa Sur community center sits at the end of a quiet street in Pescadero, an isolated farming town of about 5,000 nestled amid green hills just inland from California’s Pacific Coast. It’s a beautiful, lively place to be at sunset, right before the kids will be picked up from day care.

Rita Mancero is the petite program director who assists local immigrant and migrant farm workers with learning English and preparing tax returns; the center also offers college scholarships, helps with writing resumes, getting children vaccinated, applying for citizenship, even with Zumba classes. Mancero, who holds a master’s degree in education from Universidad YMCA in Mexico City, is a Red Cross instructor certified in CPR, a paralegal, a trained tax preparer. And a ham radio operator. Her biggest priority?

“The famous ‘Education Gap,’” she says. Her affection for the children in her care is direct and immediate.

Some of the grant money that funds the Puente de la Costa Sur center comes through the Silicon Valley Community Foundation [5] (SVCF), the largest such foundation in the country. Its assets have ballooned in recent years, from just over $2.9 billion in 2012 to more than $6 billion today. But the foundation’s direct grants to Silicon Valley’s surrounding communities last year amounted to just $8 million.

There have been many news stories about the vast sums contributed to philanthropy by Silicon Valley tech tycoons. Where does this money finally wind up? The short answer is that most of it stays put. Most of that $6 billion in assets at the Silicon Valley Community Foundation isn’t under the foundation’s real control, nor should the money be understood as even remotely intended to provide direct assistance to the residents of Silicon Valley. It might not even be money: It might be real estate, or stock, as in the case of the Zuckerbergs’ recent donation of 18 million Facebook shares, then valued at $991 million, according to the Wall Street Journal.

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