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101 posts categorized "Grantmaking"

5 Questions for…June Wilson, Executive Director, Quixote Foundation

July 11, 2016

Named for Cervantes’ fictional knight errant, the Quixote Foundation was established in 1997 by Stuart Hanisch, a civil rights activist and documentary filmmaker who poured his family’s wealth into social causes. With a mission "to see free people in fair societies on a healthy planet," the Seattle-based foundation has been focused on progressive causes in the areas of the environment, reproductive rights, civil and human rights, and media reform.

In 2010, Quixote announced it would spend down — or, as the foundation puts it, "spend up" — its endowment by 2017. (As of year-end 2014, its assets totaled approximately $12 million.) Grants awarded in recent years have supported the Media Democracy Fund’s campaign to ensure net neutrality and the National Wildlife Federation’s diversity, inclusion, and leadership development efforts. MDF founding director Helen Brunner was awarded the Council on Foundations' 2016 Robert Scrivner Award for Creative Grantmaking for her work with the foundation, while NWF recently recognized it for its guidance and support with the National Conservation Organization Award.

PND spoke with June Wilson, who joined the foundation as executive director and board member in 2013, about diversity in environmental organizations and across the nonprofit sector and the foundation's "spend-up" process.

Headshot_june_wilsonPhilanthropy News Digest: A 2014 study by Dorceta E. Taylor, a University of Michigan professor of environmental justice studies, found that minorities and people of color are underrepresented on the staffs of environmental organizations. Since then, fellowship programs and other efforts have been launched to address the gap. What is behind the lack of diversity in the field, and why is it imperative for the field to increase diversity, equity, and inclusion (DEI)?

June Wilson: The report lays out some of the issues behind the lack of diversity in the field very well, such as the lack of cross-race and -class collaboration, as well as employment/recruitment practices. And I think looking at DEI in the environmental movement is imperative because those who are most likely to be negatively impacted by climate change are communities of color and poor communities. Hurricane Katrina is one of the most obvious examples: Katrina affected the entire city of New Orleans, but the communities that suffered the worst impacts, those whose residents couldn’t come back because they lacked the resources, those whose homes and neighborhoods were destroyed, were mostly black communities.

We put so much effort and resources into conservation policies and encouraging people to access the outdoors and the natural environment, and those benefits are meant to be shared by all, so engaging communities of color in the environmental movement is imperative.

PND: Quixote has invested in the National Wildlife Federation's commitment to improving DEI in its internal and external practices through training and leadership development. Can you describe the foundation’s work with NWF — what opportunities did you see in the chance to work with the federation, and what are some of the successful outcomes of that work?

JW: NWF is one of the few grantees we've worked with on a consistent basis since the foundation was created. We talked about our commitment to DEI efforts with NWF’s [then-director of individual philanthropy] Chris Harvey, who connected us with [then-vice president for affiliate and regional strategies] Dan Chu, who was looking at how to develop a leadership program that really could affect the leadership pipeline, increase diversity, and educate staff internally about issues around structural racism, equity, and inclusion. So it just felt like a win-win: there was someone at NWF saying, "This is important for this organization," and we were saying, "We want to champion this." In 2010, we funded the Leader to Leader program for NWF staff with a three-year grant, and Dan felt it was important to frontload the grant to maximize its impact in terms of increasing understanding within the organization's leadership.

Our investment was pretty significant, and we could see how the program and related trainings and workshops were beginning to have some impact at the individual level. But at the end of the grant period, in 2013, we hadn’t seen a lot of change at the organizational level in terms of executive-level leadership transitions and capacity. So, even though we didn't give them an additional grant, for the last two and a half years we've been in conversation with the team there about their work around DEI and continued commitment to ensuring that it is sustained. [Associate director for the Pacific] Les Welsh, who was part of the Leader to Leader program and is truly committed to that work, brought board members and Collin O'Mara, NWF's new president and CEO, into the conversation, and it's been remarkable to see how constant engagement and investment in our relationship with the grantee beyond the grant is enabling the long-term impact we seek, including the implementation of new policies to diversify the organization’s leadership pyramid and a lot of interest on the part of key members of the board.

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Weekend Link Roundup (July 9-10, 2016)

July 10, 2016

Stop_violenceOur weekly round up of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Community Development

Alexia Fernandez Campbell, a staff writer at The Atlantic, looks at what one Rust Belt city is doing to keep blue-collar African-Americans from being displaced as it tries to attract immigrants and boost the local economy.

Environment

Thanks to global regulation of chlorine compounds, the ozone hole over the Antarctic is on the mend. Alexandra Witze reports for Nature magazine.

On a less upbeat note, the International Development Association of the World Bank Group reports that unchecked climate change could push 100 million people back into poverty by 2030,with the poorest regions of the world — sub-Saharan Africa and South Asia — likely to be hardest hit.

Giving

For weeks, writes David A. Fahrenthold, the Washington Post has been trying — and failing — to find evidence that presumptive Republican Party presidential nominee Donald Trump is as charitable as he claims to be.

Rep. Louie Gohmert (R-TX) has introduced legislation that would prohibit foundations with ties to former public officials, as well as presidents and vice presidents, from accepting contributions from individuals connected to foreign governments. The Hill's Alan K. Ota reports

On Glasspockets' Transparency Talk blog, our colleague Melissa Moy takes a closer look at the philanthropy of recent Giving Pledge signatories Marc and Lynne Benioff.

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8 Tools Grantmakers Frequently Forget to Use

July 07, 2016

Photodune-9895775-toolbox-mWhen most people think about philanthropy, they usually think about money. But cold, hard cash is just one tool in the grantmaker's tool box. And some of those non-cash tools are far more effective when it comes to addressing grantee needs and community challenges. Here are eight tools grantmakers can — and should — use more often:

1. Connections. Who are the people you know, and how can you introduce or refer your grantees to them? If you're like most people, you probably have a broader list of contacts than you realize. Don't be afraid to use it. Think about the other funders, accountants, attorneys, consultants, government employees, and nonprofit leaders you've met. How could these people help your grantees or partners? Once you get started, you'll be amazed at the connections you can make.

2. Knowledge and intellectual capital. What do you know about your community, about local politics, about other funders, about the issues? How and when can you share that information in ways that can support your grantees? For example, the Community Foundation of Lorain County recently used its knowledge of the area and of board leadership to conduct a series of board trainings for board members and CEOs from nonprofits across the county. And the Cleveland Foundation, after learning a great deal about quality afterschool programs, created an online database of high-quality afterschool programs to help parents find programs for their kids.

3. Experience. Chances are, you have specific experience in certain areas that can translate to advice and guidance for grantees. Perhaps earlier in your career you led a scale-up of a nonprofit enabling it to reach new markets. Maybe you led an advocacy campaign aimed at changing public policy. Perhaps your organization merged with another organization. When you started your job as a funder, you didn't wipe the slate clean — you brought your past experience with you, and you can use it now to help your grantees. Just be sure to offer your advice with humility, and only when a grantee is in a mood to listen. No one wants to be forced to learn from your experience against his or her will!

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Most Popular PhilanTopic Posts (June 2016)

July 03, 2016

Happy Fourth of July weekend! Hope you're spending it with family and friends. Before we head back out with more shrimp for the barbie, we thought we'd revisit some of the great content we shared here on PhilanTopic in June. Enjoy!

What did you read/watch/listen to in June that got your juices flowing? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

Foundation Transparency: Game Over?

June 16, 2016

Data_unlockedThe tranquil world of America's foundations is about to be shaken, but if you read the Center for Effective Philanthropy's new study — Sharing What Matters, Foundation Transparency — you would never know it.

Don't get me wrong. That study, like everything CEP produces, is carefully researched, insightful, and thoroughly professional. But it misses the single biggest change in foundation transparency in decades: the release by the Internal Revenue Service of foundation 990-PF (and 990) tax returns as machine-readable open data.

Clara Miller, president of the Heron Foundation, writes eloquently in her manifesto Building a Foundation for the 21St Century: "the private foundation model was designed to be protective and separate, much like a terrarium."

Terrariums, of course, are highly "curated" environments over which their creators have complete control. To the extent that much of it consists of interviews with foundation leaders and reviews of their websites — as if transparency were a kind of optional endeavor in which foundations may choose to participate, if at all, and to what degree — the CEP study proves that point.

To be fair, CEP also interviewed the grantees of various foundations (sometimes referred to as "partners"), which helps convey the reality that foundations have stakeholders beyond their four walls. However, the terrarium metaphor is about to become far more relevant as the release of 990 tax returns as open data literally makes it possible for anyone to look right through those glass walls to the curated foundation world within.

What Is Open Data?

It is safe to say that most foundation leaders and a fair majority of their staff do not understand what open data really is. Open data is free, yes, but more importantly it is digital and machine-readable. This means it can be consumed in enormous volumes, at lightning speed, directly by computers.

Once consumed, open data can be tagged, sorted, indexed, and searched using statistical methods to make obvious comparisons while discovering previously undetected correlations. Anyone with a computer, some coding skills, and a hard drive or cloud storage can access open data. In today's world, a lot of people meet those requirements, and they are free to do whatever they please with your information once it is, as open data enthusiasts like to say, "in the wild."

Today, much government data is completely open. Go to data.gov or its equivalent in many countries around the world and see for yourself.

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Philanthropy's Role in Creating Tomorrow

May 16, 2016

Globe_hands_for_PhilanTopicChange in the world and our communities is happening at breathtaking speed. This accelerating rate of change makes the challenging work of doing good even more difficult. Foundations are trying to make the world a better place, but we are often using yesterday's information to do so.

When deciding what we will fund next year, we look at six-month-old grant applications, year-old grant reports, and six-year-old census data. But these methods are no longer up to the task. The Institute for the Future held a wonderful training last fall on the future of philanthropy in which the guiding question was: "Foundations will exist in ten years, but will they be relevant?"

Relevancy is not a question that foundations are used to asking themselves. But as we watch Mark Zuckerberg avoid the traditional structure of a foundation and, instead, opt to set up an LLC for his community impact work, it makes many of us pause and ask, "How do our institutions, which look almost the same as they did in Andrew Carnegie's time, need to adapt to meet the challenges of tomorrow?" That question has led me to an interest in futurism and interviewing leaders who are thinking differently about making the world a better place — individuals like Sir Richard Branson of Virgin Unite, Dr. Eric Jolly from Minnesota Philanthropy Partners, StartUp Box founder Majora Carter, and Obi Felten of Google X.

Based on these conversations, I believe it is our responsibility, as philanthropic leaders, to learn the skills needed to understand and create the future we want for our communities. And to that end, I’ve developed a three-step process to help philanthropic leaders escape from the busy-ness of today to create the better world of tomorrow.

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Weekend Link Roundup (May 14-15, 2016)

May 15, 2016

Joe-dimaggio_display_imageOur weekly round up of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Children and Youth

Brain development in young children is critical to their readiness for school and success later in life. "But preventable poverty and toxic stress can impede and derail a child's early brain development," write Marian Wright Edelman and Jackie Bezos on the Huffington Post's Politics blog. Which is why, "[i]n addition to quality interactions with parents, grandparents and other caregivers, young children need access to a full continuum of high quality early learning opportunities...."

Climate Change

Where's the beef? More to the point, asks Marc Gunther on his Nonprofit Chronicles blog, why aren't environmental groups working actively to reduce meat consumption and the number of factory farms, two of the biggest contributors to global warming?

Corporate Philanthropy

In Fortune, American Red Cross CEO Gail McGovern shares what she has learned over eight years in that position about what business and nonprofits can teach each other.

Data

On the Hewlett Foundation's Work in Progress blog, Sarah Jane Staats has five questions for Ruth Levine, director of the foundation's Global Development and Population Program, about the existing gender gap in data.

Education

How can we fix public education in America? The answer, says the Grable Foundation's Gregg Behr in a Q&A with Forbes contributor Jordan Shapiro, starts with the way kids learn.

On her Answer Sheet blog, the Washington Post's Valerie Strauss has the second part of an email conversation between noted education reform critic Diane Ravitch and hedge fund manager Whitney Tilson, a supporter of such efforts. And if you missed the first part of the conversation, you can catch up here.

Have school-choice policies solved the problem they were meant to address -- namely, the strong link between a child's educational outcomes and the neighborhood conditions in which he or she has grown up? The Washington Post's Emma Brown reports.

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Philanthropy as a Platform for Civic Leadership

May 04, 2016

Civic-Engagement-Green-ShootsPhilanthropy often is the tie that binds communities together. From city to city, state to state, country to country, the vast majority of people benefit from andor participate in philanthropy. The true power of philanthropy, however, lies beyond the art and practice of grantmaking and is tied up with its ability — and responsibility — to equip and empower communities to move forward on their own.

As an institution, philanthropy is uniquely positioned to meet the ever-changing needs of communities, empowering them to drive a variety of projects, programs, organizations, and campaigns that serve hundreds and, at times, thousands. The work we do is, in many ways, the secret sauce — although the recipe for change doesn't always come in the form of a check. Indeed, while our financial capital is important, equally as important is the reputational, social, and intellectual capital we bring to the table. Just as communities are powered by the residents that live and work in them, foundations are powered by the people within them. And, in many cases, those people are very much a part of the fabric of the communities they are working to improve.

When I'm not meeting with grant partners, much of my time is spent with business and government leaders trying to identify collaborative approaches we can take to tackle the complex issues facing our communities. In early April, for instance, I met with Dave Bing (the former mayor of Detroit, retired Hall of Fame basketball player, and respected businessman) to brainstorm strategies focused on addressing the summer employment crisis that affects many teenagers and young adults in the region.

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Why Fund 'Insignificant' Populations?

April 28, 2016

Two-spirit-LGBTRecently, I was invited to speak on a panel concerning the needs of lesbian, gay, bisexual, and transgender (LGBT) and Two-Spirit Native peoples at a grantmakers conference co-sponsored by Funders for LGBTQ Issues and International Funders of Indigenous Peoples. When we entered the Q&A portion, someone in the audience stood up and asked, "Given that LGBT people are a small minority and Native Americans are an even smaller one, isn’t the population of LGBT Native Americans statistically insignificant?"

The attendee then added, "Why would you say to a foundation that they should fund statistically insignificant populations when they want their funding to have a big impact?"

It's a fair question.

On a strictly mathematical basis, the questioner is right: we are talking about small populations. In the 2010 U.S. Census, 2.9 million people identified as Native American/Alaska Native (AI/AN) alone. This puts the percentage of solely AI/AN people at approximately 1 percent of the total U.S. population. Unfortunately, the Census does not officially collect data on the number of LGBT people, but outside surveys peg the number around 6 percent of the total population. So if we are talking about absolute numbers, the questioner is technically right.

That said, I would argue that the question misses the point for three reasons:

Disparate impact. Seemingly small populations can be over-represented when it pertains to issues of particular concern to funders. Take homelessness. While LGBT-identified youth make up only 6 percent of the general population, they also constitute about 40 percent of the homeless youth population. Another fitting example would be educational outcomes. In South Dakota, which is home to a relatively large Native population, 91 percent of white fourth-graders are reading at grade level compared to only 34 percent of Native American students. How are we going to solve problems like homelessness and poor educational outcomes if we are not willing to address why some populations are faring more poorly than others? If you do not address the over-representation of so-called "insignificant" populations within larger, systemic issues, you’re less likely to make a significant dent in solving them.

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Helen Brunner, Founding Director, Media Democracy Fund

April 27, 2016

Helen Brunner, founding director of the Media Democracy Fund and an advisor to the Quixote Foundation, recently was awarded the Council on Foundations' 2016 Robert Scrivner Award for Creative Grantmaking for her efforts to protect the public's basic rights in the digital age and to secure universal access to a free and open Internet. Central to that work was funding and organizing the successful campaign to preserve net neutrality that culminated in the Federal Communications Commission's 2015 decision to prohibit broadband providers from blocking or "throttling" — intentionally slowing — the flow of legal content or services and from offering "fast lanes" for a fee.

PND spoke with Brunner about the role of philanthropy in the ongoing debates over freedom of expression, data privacy, and the impact of social media on civic discourse.

Helen_brunnerPhilanthropy News Digest: The supporters of net neutrality seemed to have won a decisive victory last year, but the issue is being adjudicated again, with Internet service providers suing the FCC over the rules it issued in 2015 to protect the "open" Internet. Given that the court hearing the complaint is the same one that blocked the commission's earlier rules on net neutrality, how hopeful are you the new rules will be upheld?

Helen Brunner: I'm extremely hopeful they will be upheld, because I think this time we got it right. One of the things the commission didn't do in 2010 was to actually reclassify the Internet so that it could be regulated the way the commission regulates telephony. The Internet originally was regulated as a telecommunications service, but then the FCC decided, for a brief period, to regulate it more as an information service. But then they realized the Internet was far too important in terms of driving the economy — and innovation — to hamper it in that way, that the openness and innovation engendered by the Internet wasn't as well protected as when it was regulated as a common carrier. So they switched back, and that is, in fact, the current classification that enabled us to argue for "open" Internet, or net neutrality rules, under the rule of law properly.

So I'm hopeful the court will come back with a positive ruling. We had an extraordinarily good attorney arguing in court for the public interest petitioners, but the one thing that might come back for further review is mobile, which we care very much about because so many vulnerable populations rely on it for their Internet access. If the court feels that adequate notice wasn't given for that rule to be tasked, then the FCC will just go through the procedure again and get it right. That might be a concession the court would make in order to give more time for the big mobile companies to respond as to why they think it's a bad idea. And, of course, it would also give advocates of net neutrality another chance to respond as to why it's so important for the public interest and vulnerable populations for mobile to be neutral. There's a great deal of sympathy at the commission for that position.

PND: Social media played a major role in galvanizing public calls to preserve net neutrality and keep the Internet open. At the same time, social media seems to have had a pretty corrosive effect on civic discourse and the expectation of a right to privacy. Are those the kinds of inevitable trade-offs we all must accept as the price of the democratization of communication in the digital age? Or can something be done to slow or even reverse those trends?

HB: These are societal issues as well, whether we're talking about the coarsening of civic discourse or the aggressive tone of pundits in mainstream media. Social media is indeed amplifying all that, but I think we see polarized discourse everywhere, so it's something we need to address on a broader level. That said, there are some technical innovations that can cause social media to go off on a bad track, including something called "bots" on social media that can be used to drive discourse in a highly polarized direction, as well as techniques that enable companies to create false narratives. Now that isn't to say there aren't real dialogues and genuine arguments on social media, but there are things we can do to address the problem of bots, and there are several projects that different people are working on with the goal of at least eliminating the artificial hyping of phony debates.

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This Earth Day, Let’s Celebrate Experimentation in Environmental Grantmaking

April 20, 2016

News_tropical_andes_for_PhilanTopicAs we near the forty-sixth anniversary of Earth Day, let's all take a moment to celebrate the diversity and breadth of approaches to conserving this special planet we call home. Like so many other organizations in the conservation field, the Gordon and Betty Moore Foundation grapples with the question of how to make sure — while there is time — Earth and its vital ecosystems flourish long into the future.

When Gordon and Betty Moore established the foundation in late 2000, they asked us to find ways for humans and other species to share the limited resources of our small but amazing planet. Fifteen years in, we've been both encouraged and humbled by how much our grantees and others working alongside them have accomplished — whether it's conserving wild salmon ecosystems across the North Pacific, the long-term health of the Amazon basin, or North America's marine environments.

As much progress as we have made, however, we also recognize that we need to scale and accelerate these gains. By reducing the mounting pressures on natural resources, we can help sustain the most critical ecosystems worldwide and, by extension, those who depend on them for their livelihoods. Put simply, those of us who work in environmental conservation must embrace the challenge of trying new things and doing more to develop long-term, systemic, sustainable solutions to meeting the demands of a growing human population.

To be clear, we don't think there's a single best approach to conservation. In fact, we believe our  success — as funders, nonprofits, corporations, governments — will require coordinated efforts that bring together vastly different approaches from all sectors.

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Weekend Link Roundup (April 9-10, 2016)

April 10, 2016

Robin-on-branchOur weekly round up of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

African Americans

Black Lives Matter is both a sprawling social movement and a civil rights organization with more than thirty chapters across the United States. But that distinction, and many other  nuances, rarely make it into coverage of either the movement or the organization, writes Jephie Bernard, a student at the Columbia School of Journalism, on the CJR website.

Communications/Marketing

And not a moment too soon...  NWB's Vu Le rides to the defense of the Oxford comma.

Global Health

"Pessimism is fashionable. It's also wrong," writes Nonprofit Chronicles blogger Marc Gunther. "People are safer, better-educated, better-fed, and wealthier than they used to be. Democracy and human rights are spreading. Perhaps most important, people, and in particular the world's poorest people, are healthier." So why aren't we cheering? Because, says Gunther, echoing others, "the world's governments, aid agencies, foundations and nonprofits could be doing much better."

Grantmaking

On our sister Transparency Talk blog, the Surdna Foundation's Adriana Jimenez explains how the foundation's decision to move to a workflow- and cloud-based system grants management system has enabled it to work more collaboratively with grantees; increased collaboration and learning within the foundation; and improved its capacity to share data and lessons learned with the rest of the sector.

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A Conversation With Fred Ali, President/CEO, Weingart Foundation

March 18, 2016

Fred Ali is president and CEO of the Southern California-focused Weingart Foundation, where he is drawing on past experience as a nonprofit executive to recast the relationship between a foundation and its grantees and has become a champion of the movement to cover full costs and provide nonprofits with unrestricted flexible funding. In this latest installment in a series of conversations with foundation leaders, Ali and Nonprofit Finance Fund CEO Antony Bugg-Levine discuss money, power, influence, and outcomes.

Antony Bugg-Levine: The Weingart Foundation is known for providing unrestricted support — a rarity in the world of philanthropy. What led you down this path?

Headshot_fred_aliFred Ali: My own experience as a nonprofit executive has always guided my thinking. When the financial crisis hit, I remember the board meeting where I was asked, "What do we do now?" I made the argument for unrestricted support, and it really made sense to the board. We brought in some of our grantees, as well, to help design our approach. Our board has always appreciated when they hear from the field.

A lot of people said that nonprofits would just take the unrestricted money and invest it in programs, because demand was growing exponentially and it is in nonprofits' DNA to put programmatic needs first. And in our first round of unrestricted grantmaking, that's exactly what we saw. Then we started to see a shift. Based on the questions our program officers were asking, what we started to see — and what we continue to see — is that nonprofits recognized that these were very special dollars. We started seeing organizations use these dollars to invest in their infrastructure, to bring back the financial management position that was lost or the development person they needed, and it was heartening.

ABL: How do you balance the philosophy behind giving grantees the autonomy to do what they know how to do best while at the same time meeting your own need — and your board's need — to know the impact of those dollars?

FA: When we made our decision to devote the bulk of our funding — now over 60 percent — to unrestricted funding, it immediately raised the question of impact measurement. After a few years of hard work, we recently announced a new assessment framework for our grantees that evaluates organizations on nine functional areas, including board governance, financial operations, fund development, staff and infrastructure, client and constituent engagement, diversity, cultural competence, organizational strategy and adaptability, and executive leadership. With the assistance of Paul Harder and Company, we co-created the framework with our grantees. We wanted a framework aligned with our core values as a responsive grantmaker. We wanted a process that maintained a commitment to transparency and practical, actionable learning. And we wanted something that would not create undue burdens on grantees or on our own staff but that would provide us with useful information. Our theory of change is that if you give a reasonably managed, well-governed, strategically focused nonprofit organization flexible, unrestricted dollars, good outcomes will follow.

ABL: The framework gives you a way to determine whether an organization is more effective over time, but how do you measure the contribution your grant made to that effectiveness? Many funders are concerned about attribution versus contribution if they were to move to more general support. How do you and your board approach that issue?

FA: The system we have designed understands the complex nature of assessing contribution to impact. We've developed a process to understand the growth in organizational effectiveness over time. And it starts with the questions we ask in the application process. Then, when a program officer makes a funding recommendation, they complete a detailed assessment based on their perception of where the grantee is against the nine functional areas of our framework. That provides a baseline. At the conclusion of the grant period, we ask the grantee to complete an online assessment, which gives them the opportunity to talk about where they are on those nine areas, and about big-picture organizational goals, and whether or not they are able to attribute the use of our unrestricted funds to any movement in those areas. The program officer receives that information, compares it with his or her initial perception, and then has a discussion with the grantee around the growth that has been achieved and areas of continued need. Last but not least, the program officer completes a closeout report that serves as the application for a new grant. Although it’s still early in the process, things seem to be going well for both grantee and program staff.

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Expanding the Social Impact Toolbox

March 15, 2016

Hammer-and-nailsIn 1964, the Beatles famously sang, "Money can't buy me love." In philanthropy, the refrain frequently goes: "Money can't buy me impact." Like love, impact — the tangible (and sometimes intangible) outcomes we seek as philanthropists — isn't something that can be bought; it's created. And while money can buy a lot of things, it actually does very little. As such, money isn't the solution that grantmakers often imagine it to be. At Open Road Alliance, we are learning to think about money not as the solution to problems but as a fungible resource that can be shaped into tools and used to help solve problems.

It's easy to see how philanthropists have (mistakenly) come to view money as the solution to most problems. Let's try a little thought experiment. Ask yourself: What would it take to vaccinate every child in a rural area of a developing country? Your answer might be $10 million. Or ask: What would it take to scale a successful afterschool program to three adjacent counties? Your answer might be $750,000. Neither is the correct answer. The correct answers are fifty thousand doses of the vaccine, and fifty trained nurses employed for twelve months (plus a long list of supplies and other inputs required to secure the success of the effort). Yes, all that costs money, but money is just the middleman. It can buy, but it can't do.

If we accept that premise, then it is incumbent on us to fashion different financial instruments — tools — to accomplish different tasks. Unlike the examples above, successfully deploying money to create impact rarely is a one-dimensional transaction. Take, for example, a donor who wants to boost access to high-quality education by paying for a new charter school. The simplistic calculation puts the cost of the building at X dollars, so X dollars donated will lead to Y outcome, with Y being the new school building. The reality is a little messier. Funds need to be allocated for permits and raw materials, for labor, and, eventually, for faculty, supplies, and other administrative costs. Even within this simplified example, the types of capital needed fall into multiple categories: permits and raw materials are a one-time cost, labor is a contractual cost (and subject to change as construction progresses), and hiring staff, purchasing supplies, and administrative expenses are recurring expenses. Understanding the nature and duration of each of these costs is essential to the success of the project. When money is viewed as a tool, you start with the ultimate objective — a new charter school building — and work backward to see what type of funding will work best for each cost category.

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Weekend Link Roundup (March 12-13, 2016)

March 13, 2016

The-Round-UpOur weekly round up of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Children and Youth

Looking for a good collection of juvenile justice resources? The Baltimore-based Annie E. Casey Foundation, a leader in the field, has published this on its blog.

Climate Change

On the Humanosphere site, Tom Murphy asks the question: Will the Global Climate Fund falter before it gets off the ground?

Education

In the New York Review Books, historian of education and author Diane Ravitch reviews Dale Russakoff's The Prize: Who's In Charge of America's Schools? and Kristina Rizga's Mission High: One School, How Experts Tried to Fail it, and the Students and Teachers Who Made it Triumph and finds both to be "excellent." Together, Ravitch adds, the two books also "demonstrate that grand ideas cannot be imposed on people without their assent. Money and power are not sufficient to improve schools. [And genuine] improvement happens when students, teachers, principals, parents, and the local community collaborate for the benefit of the children...."

Environment

Nonprofit Chronicles' Marc Gunther has written a must-read post about the recent assassination of Honduran environmental activist Berta Cáceres -- and what U.S. funders can do to combat the organized campaign of terror and intimidation being waged against environmental activists in Honduras: 1) Demand that Berta Cáceres' killers be brought to justice; 2) provide more support for grassroots activism; and 3) recognize/acknowledge the connections between the environment and human rights.

Fundraising

In Forbes, Russ Alan Prince recaps the seven wealthy charitable donor types.

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    — Martin Luther King, Jr. (1929-1968)

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