Google Gives Some Green

As reported last Thursday in the NYTimes, Google is setting up a for-profit philanthropy arm. Called Google.org, and begun with seed money of $1 Billion (is that all?) the group has specific aims to fight povery, disease, and global warming. Of course global warming only exacerbates poverty and disease, so by working on that front, Google’s founders will kill many birds with one stone.

The most interesting part of all of this is that Google.org will be a for-profit institution, meaning it can grant monies to start-up companies, form partnerships with venture capitalists, and can lobby in D.C. (Non-profits are tax-exempt, and are not allowed to make money or influence government officials/political races.)

One of its maiden projects reflects the philanthropy’s nontraditional approach. According to people briefed on the program, the organization, called Google.org, plans to develop an ultra-fuel-efficient plug-in hybrid car engine that runs on ethanol, electricity and gasoline.

The philanthropy is consulting with hybrid-engine scientists and automakers, and has arranged for the purchase of a small fleet of cars with plans to convert the engines so that their gas mileage exceeds 100 miles per gallon. The goal of the project is to reduce dependence on oil while alleviating the effects of global warming.

Google’s founders, Larry Page and Sergey Brin, believe for-profit status will greatly increase their philanthropy’s range and flexibility. It could, for example, form a company to sell the converted cars, finance that company in partnership with venture capitalists, and even hire a lobbyist to pressure Congress to pass legislation granting a tax credit to consumers who buy the cars.

The executive director whom Mr. Page and Mr. Brin have hired, Dr. Larry Brilliant, is every bit as iconoclastic as Google’s philanthropic arm. Dr. Brilliant, a 61-year-old physician and public health expert, has studied under a Hindu guru in a monastery at the foothills of the Himalayas and worked as a Silicon Valley entrepreneur.

In one project, which Dr. Brilliant brought with him to the job, Google.org will try to develop a system to detect disease outbreaks early.

Dr. Brilliant likens the traditional structure of corporate foundations to a musician confined to playing only the high register on a piano. “Google.org can play on the entire keyboard,” Dr. Brilliant said in an interview. “It can start companies, build industries, pay consultants, lobby, give money to individuals and make a profit.”

While declining to comment on the car project specifically, Dr. Brilliant said he would hope to see such ventures make a profit. “But if they didn’t, we wouldn’t care,” he said. “We’re not doing it for the profit. And if we didn’t get our capital back, so what? The emphasis is on social returns, not economic returns.”

Go Google, Go!!