Washington's technology scene has come a long way. Entrepreneurs who struggled to make ends meet just a few years ago are now some of the biggest employers and revenue-generators in the area. As a result, the coming years are likely to see a surge in philanthropy from technology companies and their executives who realize being a good corporate citizen is part of being in business, especially part of a successful business.

Consider, for example, the newly-formed, not-for-profit AOL Foundation, which seeks to improve education through the use of technology. The foundation is headed up by AOL co-founder Jim Kimsey, who chose education as its logical "cause" choice. "The most effective thing you can do is improve the educational process for kids," says Kimsey, a native Washingtonian. "These kids in the ghetto don't have a chance."

As tech companies grow, giving back to the community is a necessity, not just to be altruistic but for bottom-line business reasons including public relations and name recognition. "There's more pressure," said Harry Glazer, a high-tech lawyer with McLean's Ginsburg, Feldman and Bress. "In the past, the high-tech companies never cared about politics or philanthropy because they had to make payroll." But giving away money isn't as easy as it sounds. And just how much social responsibility does a corporation have?

The AOL Foundation received 2,000 grant proposals in April, which are now being sorted through by Kimsey's staff. Both private and public schools are eligible for awards up to $7,500; the first grants are expected to go to schools in the District and Northern Virginia. Kimsey's personal foundation is also involved in education – he plans to open a learning center in Anacostia.

Because of its success early in the Internet age and because AOL has become a conduit for much controversial and illegal activity, such as pornography, e-mail scams and pedophilia, it particularly needs to promote a squeaky clean image. "It's incumbent on AOL, among all companies, to do this," Kimsey admits. Moreover, the government's recent antitrust probe and subsequent lawsuits against Microsoft has convinced Kimsey even more that AOL has to clearly be a good corporate citizen because it blunts potential criticism. "Hubris is a terrible thing," he said. "The things they say about Microsoft, they're saying about us."

Still, AOL and Kimsey are anomalies in Washington. Philanthropy has been slow in coming, said Penny Lewandowski, director of entrepreneurship and education at the not-for-profit Morino Institute, though companies like DynCorp and BTG have been leaders. "The tech community came up a little slower than the services firms because they were spending so much time building their businesses," she said.

But Lewandowski also adds that the Washington area, which thrives on networking events, is more likely to share information with each other – even potential competitors – than some of the other high-tech regions around the country. That attitude makes people more apt to work together in charity, too. Lewandowski said she's seen tiny five-person companies start philanthropy projects jointly by sharing time and employees.

Up until now, philanthropy role models have been West Coast counterparts at Microsoft and Oracle, who give both on behalf of their organizations and from their own individual deep pockets. For example, Microsoft CEO Bill Gates and wife Melinda gave the fifth largest charitable gift in the country last year: $200 million to establish the Gates Library Foundation, which will set up a program to provide libraries with Internet access. Gates' gift was the largest ever from a technology CEO. Larry Ellison, CEO of Redwood Shores, Calif.-based Oracle Corp. pledged $100 million towards computers for public schools.

Still, many say the amount given doesn't reflect the huge monetary success the tech world is experiencing. But as far as Kimsey's concerned, charity is the best thing he can do with his riches: "There are only four things you can do with money. Spend it, leave it to your ungrateful children, give it to the government or give it to charity."