Philanthropy “I don’t like to play games. You get more rewards than you give [through charity work.] If [connections are] your motivation, then you’ll be disappointed,” Mirante told TRD. “I’ve been very lucky,” he added. “I’ve made lifelong friends that I’ve met on different boards in working with different nonprofits that have been very successful in their careers that have given me business, and others haven’t, and that’s okay. [It’s] icing on the cake.”
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f course, donating money (up to a certain amount, anyway) can be written
tions to specific causes. For example, Gray, Blackstone’s global head of real estate, and his wife, Mindy, donated $25 million to the University of Pennsylvania, their alma mater, in May to establish the Basser Research Center. The center (which was named after Mindy’s late sister, Faith Basser, who died of ovarian cancer) focuses on research and prevention of certain genetic cancers. “This is very personal to us,” Gray told TRD. “We want to make a difference to families who have this.” Gray said he and his wife did their due diligence to find a facility they thought would be right for the center.
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enough to help,” said Sumers, who sits on the school’s board. Sumers denied that there was a business benefit to sitting on a board far outside of New York, but noted that the school “gave me a great education [and] a great start in life.” Stephen Schwarzman, chairman of the Blackstone Group, didn’t give a public donation in 2012, but donated $100 million in 2008 to the New York Public Library, where he’s a board member. The library has since renamed its main Fifth Avenue building after him. For his part, Silverstein — who generally declined to discuss his charitable do-
her business relationships. Besides Silverstein Properties, Corcoran Sunshine also represents Rudin Management. “I think it’s always a great opportunity to get to know people you work with in the business community outside of a predominantly business-oriented atmosphere,” Mack said. “Many of my clients are on the board of NYU, including Larry [Silverstein]. I had a great professional and personal relationship [with them] prior to joining the board, but I do think it … helps solidify those existing relationships [and] exposes you to different sides of them.” Mack — who is also on the committee for the Stephen D. Hassenfeld Children’s Cen-
“I think people know that you’re giving and part of the community and people respect that. It doesn’t hurt you.” Stephen Ross, Related Companies
Left: Corcoran Sunshine President Kelly Kennedy Mack sits on NYU’s board, where several of her clients are also board members. Right: Avison Young’s Arthur Mirante II sits on seven boards in the city, including the Alvin Ailey Dance Foundation.
Left: Jones Lang LaSalle Tri-State President Peter Riguardi warns against sitting on nonprofits boards simply to make business connections. Right: Developer Richard LeFrak’s foundation gave $10 million to the American Museum of Natural History.
off as a tax deduction. However, in recent weeks that’s become controversial given the national debate over the so-called fiscal cliff — the automatic tax increases and spending cuts that were set to kick in at the end of 2012 if Congress didn’t act. (At press time, elected officials and lobbyists were still feverishly trying to hammer out a deal.) Indeed, charities began lobbying in Washington last month out of fear that tax deductions on charitable contributions would be cut as Congress looked for ways to increase revenue to deal with the fiscal cliff. Depending on one’s tax bracket, up to 35 percent of a charitable donation can be written off. But while making big donations does come with tax benefits, many of the biggest donations from real estate pros last year seemed to be driven by personal connec-
“It came down to a handful of places,” he told TRD. “We thought Penn was the best choice given the work they were already doing in this area.” In the city, Gray is chairman of the board of Harlem Village Academics. He said he and Mindy are involved in other organizations, but have never given a donation this large before. Meanwhile, Gary Sumers — Gray’s colleague at Blackstone and senior managing director of the real estate group — donated $12 million in October to his alma mater, Washington University in St. Louis, to expand the school’s athletic complex and create a recreational center. “I think when you take on the responsibility of being a member of a board of trustees, along with that goes an understanding of the needs for capital, if one’s lucky
PHOTOGRAPH OF MACK FOR THE REAL DEAL BY CHRIS MARTIN; PHOTOGRAPH OF RIGUARDI BY MICHAEL TOOLAN 00 January 2013 www.TheRealDeal.com
nations — donated $5 million to his wife Klara’s alma mater, Hunter College, last spring as a surprise for her when she retired as chairwoman of Hunter College Foundation’s board of trustees after 11 years. The developer told TRD that he organized the donation without his wife’s knowledge, then showed up at her last board meeting as chair — she will stay on as a board member — to present it to her. “We surprised her completely,” Silverstein said. The donation will go towards establishing a new component of the Hunter Library. Silverstein also gave $5.2 million to New York University School of Medicine, which will create a scholarship fund. (Silverstein and two of his kids went to NYU as undergraduates.) He also serves on the board of NYU alongside his daughter, Lisa, senior vice president of Silverstein Properties; Brodsky; Kelly Kennedy Mack, president of Corcoran Sunshine Marketing Group; Rudin; developer Sheldon Solow; Leonard Boxer, chairman of Stroock & Stroock & Lavan’s real estate practice; and hedge fund billionaire John Paulson. And he does business with some of his fellow board members. For example, Corcoran Sunshine represents Silverstein Properties’ Four Seasons Private Residences New York located at 30 Park Place. Construction on the building was suspended during the downturn, but is expected to start this year, according to a Silverstein spokesman. “You constantly find yourself involved in various civic charitable functions with other people with whom you do business,” Silverstein said. “New Yorkers are a very involved group of people. … Certainly a large component of those [people] involved are in the real estate industry.” Mack said that although she’s never met a client through her nonprofit work, interacting socially with clients has improved
ter, which treats childhood cancers, and the Penn Institute for Urban Research advisory board — said she gets “a sense of great emotional pleasure and satisfaction” from seeing the nonprofit work impact the community. Silverstein agreed. “The benefits clearly are self-gratification, joy, happiness and a feeling of well-being for those who desperately need the help,” Silverstein said. “I find [philanthropy] extraordinarily satisfying. I have to believe everybody has the same feeling.”
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n addition to the high-profile connections that running in New York’s charitable circles bring, charitable donations usually come with a boost in social status, too. For example, tickets to sought-after black tie galas, invitations to social events, a general increase in visibility and, of course, helping family and friends through connections all come with the territory. “Sure, there’s a social aspect,” Silverstein said, noting that philanthropy does “feed the ego” at times. “Being on these boards is [also] an extremely stimulating experience, intellectually and otherwise.” Riguardi — who is on the board for the Regional Plan Association, American Friends of Rabin Medical Center (based in Israel) and his alma mater, Iona College in New Rochelle, N.Y. — said his position often allows him to help friends and family. “If someone gets a certain type of medical issue, I’ve been able to connect them,” Riguardi said. “It’s always a pleasure to use one’s position in the industry to feel like you’re helping other people,” he added. Still, there’s a certain amount of exposure that accompanies making large donations and sitting on boards. “I think people know that you’re giving and part of the community and people respect that,” Ross said. “It doesn’t hurt you.” TRD
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