The Selfless Business Effect

Participants of the International Rotary Conference are interested in charitable program for St. Petersburg

by Lev Anikin, Staff Writer
Published in Nevskoe Vremya on April 22, 2004; Second largest St. Petersburg daily newspaper.

Photo: James Lacy, Rotary Foundation Chairman 2003-2004 greets Kirill Bogouslavski after Kirill's presentation of "OrphanAct" program at the "Rotary in Russia 2004" international Rotary conference in St. Petersburg, Russia on April 2-4, 2004.

The conference was called "Rotary in Russia, the next 10 years." The uninformed were given fliers with the basics: "What are Rotary clubs? These are international organizations that exist in almost all countries and unite businessmen interested in effective implementation of humanitarian projects." This St. Petersburg conference was dominated by such projects in the city. An assistance program for homeless children by Russian-American Kirill Bogouslavski had attracted special attention. He flew from the U.S. just to present the program at the large Rotary gathering.

You said at the conference that charity is also a business and it must be effective. What does it mean for you?

I am an entrepreneur and a programmer. After graduating from a university with a degree in computer systems, I was in business first in Russia and then in the U.S., where I received an MBA at Ohio State. Charity work is an extension of my business, of what I was taught and practiced for about 10 years in a company I have founded. Now I can afford doing non-profit business. Charity should be done in accordance with business practices-maximum value and minimum expense.

Do you have an example of something like this?

In St. Petersburg, I have started collaborating with The Children's Protection Fund of Svetlana Voronina and the "Hope" Commune of Evgeniy Kliot. The Commune was in need of additional living space for kids on a Karelian farm. See details of this project. That was our first project. Railroads officials have donated a used, but decent railroad sleeper car. It was refurbished as a living space and delivered on site. The whole operation cost only fifteen hundred dollars to purchase and install the foundation blocks. This is an example of effective charity work.

The program ("OrphanAct") presented at the conference is comprehensive and is seems to cost much more than the previous ones. There does not seem to be much of room for savings, because it specifies solid training for social workers who will be engaging street kids and aggressive juvenile bands as well as long-term commitments to working in neighborhoods and youth clubs. Do you know how much money will it all take, where the funds will be coming from, and how to use them most effectively?

The program details are being worked out by experts in what they call the "extreme pedagogy." The exact cost of the program will be determined when they are done. There will be several projects within this program. The first one will be a pilot project. To begin with, we need to assess the specific homeless children's problems in each city district, and to learn about the needs of orphanages and shelters. This will allow planning material assistance. The next step is educational programs, both for the street kids who are behind on their schooling, and for social workers helping them to get back to normal, organizing youth clubs, etc. Many Rotarians are supporting the project already, and many more will. I believe it will be a success. Eventually, the project may be run by an organization controlled by the Rotary clubs. From volunteer-organized, such an organization will grow into a more professional one.

Why did you decide that homeless children are the one in most need in Russia?

I was simply appalled by the conditions of orphanages, orphans, homeless and neglected kids.

What are the guarantees that charitable funds will be spent appropriately? Things happen in this country.

My work is based on three main principles. First, 100% of all private or corporate contributions, as well as fundraising proceeds go directly to orphans. Second, moneys are raised only for specific projects with a definite budget. There is always a detailed budget, and it is clear where the money is spent. This information is posted on the internet for everyone who wants to participate. And third, when the project is completed, reporting includes receipts, contracts, photos, reports, thank you notes, everything. Anyone can access all this information on the internet, and find out how the money is spent, who contributed. Such an approach is well received in American Rotary clubs. This practice of detailed reporting of how charity works is an indicator and an instrument of the charitable business's effectiveness.

For more information about the Rotary Foundation please visit their web site at www.rotary.org.