Julius Rosenwald - Philanthropy

Philanthropy

After the 1906 financial reorganization of Sears, Rosenwald became friends with Goldman Sachs's other senior partner, Paul J. Sachs. Sachs often stayed with Rosenwald during his many trips to Chicago and the two would discuss America's social situation, agreeing that the plight of African Americans was the most serious in the US. Sachs introduced Rosenwald to two prominent educators and proponents of African-American education, William H. Baldwin and Booker T. Washington. Rosenwald made common cause with Washington and was asked to serve on the Board of Directors of the Tuskegee Institute in 1912, a position he held for the remainder of his life. He endowed the Institute to free Washington from fundraising and enable him to devote more time managing the Institute.

Rosenwald became a member of the city's leading Jewish Reform congregation, Chicago Sinai congregation, soon after moving to Chicago. Its rabbi, Emil G. Hirsch, made a big impact on Rosenwald's philanthropy. Rosenwald donated generously to several Jewish community projects in Chicago and served as vice president of Chicago Sinai for many years.

Booker T. Washington encouraged Rosenwald to address the poor state of African-American education in the US, which suffered from inadequate buildings and books. Rosenwald provided funds to build six small schools in rural Alabama, which were constructed and opened in 1913 and 1914, and overseen by Tuskegee. As the projects were built by and for African Americans, they showed Rosenwald's intention to remain behind the scenes in this effort. Inspired by the social progressivism of Jane Addams, Minnie Low, Grace Abbott, Paul J. Sachs, and Booker T. Washington, and the Reform Judaism of Emil Hirsch and Julian Mack (many of whom were personal friends as well), Rosenwald devoted his time, energy, and money to philanthropy. In his words, written in 1911:

"The horrors that are due to race prejudice come home to the Jew more forcefully than to others of the white race, on account of the centuries of persecution which they have suffered and still suffer."

He established his Rosenwald Fund in 1917 for "the well-being of mankind." Unlike other endowed foundations, which were designed to fund themselves in perpetuity, The Rosenwald Fund was intended to use all of its funds for philanthropic purposes. As a result, the fund was completely spent by 1948.

Over the course of his life, Rosenwald and his fund donated over 70 million dollars to public schools, colleges and universities, museums, Jewish charities and black institutions. The rural school building program was one of the largest programs administered by the Rosenwald Fund. It contributed more than four million dollars in matching funds to the construction of more than 5,000 schools, shops, and teachers' homes in the South. These schools became informally known as "Rosenwald Schools."

Rosenwald commissioned one of Chicago's largest philanthropic housing developments: the Michigan Boulevard Garden Apartments, at 47th St. and Michigan Ave. The Michigan Boulevard Garden Apartments was one of the first American housing developments to mix residential, commercial and social uses and still stands. The complex was built in 1929 by Julius Rosenwald and his nephew, architect Ernest Grunsfeld (who also designed the Adler Planetarium, at the behest of Rosenwald's brother-in-law, Max Adler). Covering a square block, the buildings enclosed an enormous central landscaped courtyard. Rosenwald planned the development of 421 units to provide sound housing for African Americans and to relieve the tremendous overcrowding due to Chicago's pervasive racial segregation. The development also included 14 stores along the 47th Street side of the property, four of which were occupied by black-owned businesses, and a nursery school. Rosenwald invested $2.7 million in the project, receiving only a 2.4 percent return during the first seven years.

Rosenwald was the patron of chess prodigy Samuel Reshevsky. He encouraged Reshevsky to earn a university degree so as not to be completely dependent upon chess for his living. Reshevsky did so, earning his degree in accounting from the University of Chicago.

Rosenwald gave $1000 grants to the first 100 counties in the U.S. to hire County Extension Agents, helping the United States Department of Agriculture launch a program that was highly valuable to rural Americans. He was also the principal founder and backer for the Museum of Science and Industry in Chicago, to which he gave over $5 million and served as the President (1927–1932).

Rosenwald died at his home in the Ravinia section of Highland Park, Illinois, on January 6, 1932.