With the first ever Virtual Goods Summit going on last week, we talked a lot about virtual property and virtual cash. Now, in a virtual discussion with Linden Lab (Second Life) CEO Philip Rosedale, Jonathan Fanton, President of the MacArthur foundation, announced the foundation will award 550,000 very real dollars to the Center on Public Diplomacy at the University of Southern California , to explore the role of virtual worlds in philanthropy.

The Foundation has some specifics planned, as announced on its website, including:

• Conversations in virtual worlds about pressing issues and how a foundation can help address community needs;

• Virtual world simulcasts of face-to-face conversations on issues that impact real and virtual worlds, such as migration, education, and global and civic engagement; and

• Over time, MacArthur funding for philanthropy-related projects in virtual worlds, awarded on a competitive basis

The exploratory grant is the latest show of interest in the arena from the MacArthur Foundation; they work with GameLab Institute of Play and New Visions for Public Schools to use virtual worlds and games for education and civic awareness in New York City schools, and the Foundation also maintains a blog dedicated to discussing the issues surrounding digital media and learning.

"When we first considered working in virtual worlds, we were tempted to build a replica of our historic foundation building, located in Chicago, in the virtual world," Said Fanton on the Foundation's blog. "We now believe that the best way to start is to participate in the virtual world by engaging in discussions of serious social issues, working with others to act on their philanthropic impulses, and encouraging innovation and new ideas through grant awards."