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Seven Charitable Foundation Rules: Myth and Reality

July 10, 2015

Myth-vs-FactFederal statutes and regulations that apply to charitable foundations are complex and frequently misunderstood. To add to the confusion, they often are counterintuitive. Here are just a few examples of rules governing foundation grantmaking that I, on numerous occasions, have found to be misconstrued or misunderstood:

Myth No. 1: Foundations are only permitted to support 501(c)(3) organizations.

Reality: As long as foundations comply with certain legal requirements, they are permitted to make grants for charitable purposes to a range of organizations and entities. For example, if the foundation undertakes a preliminary inquiry, both the grantor and the grantee commit in writing to comply with reporting requirements, and the prospective grant recipient commits in writing that the funds will be expended for charitable purposes, the foundation can legally make grants for charitable purposes to government agencies and even for-profit corporations.

Myth No. 2: Foundations are not permitted to support the development, publication, or distribution of materials that comment on positions taken by candidates in election campaigns or on positive or negative features of pending legislation.

Reality: Foundations are permitted to provide financial support to organizations for the preparation of voter information guides and educational materials about proposed legislation and other issues of public interest. Voter information guides must refer to each candidate's views on a cross-section of issues and include a fair and unbiased analysis of other positions. Educational materials supported by foundation dollars must present all sides of the issue in question and be sufficiently balanced to enable readers or listeners to form their own opinions. Foundations are not permitted to reveal their own positions or preferences with respect to an issue in such materials.

Myth No. 3: Foundations are required to receive and retain a grantee organization's written acknowledgement for any gift in excess of $250.

Reality: The $250 written acknowledgment rule applies to payers of income tax such as individuals and for-profit corporations, but not to foundations — which are exempt from income taxes. So long as a foundation retains proof of the support it has given to a grantee organization (such as a canceled check), it need not seek or retain that grantee organization's written acknowledgment of a gift.

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How Nonprofit Branding Strengthens Impact: Part 2

July 09, 2015

Brand-PowerIn my previous article, I introduced some thinking on the nature of a nonprofit's brand, three characteristics of a compelling nonprofit brand experience, and the six key components of every brand. The big takeaway (hopefully) was that a brand is a combination of psychological concepts and tangible assets that together embody the vision, values, and mission of a nonprofit.

In Part 2 of this three-part mini-series on nonprofit branding, I'll take a closer look at the ways in which an effective brand creates organizational value for nonprofits, as well as how design firms and nonprofits collaborate to translate organizational strategy into brand experiences that reflect a nonprofit’s values and help advance its mission.

A New Approach to Leveraging Social Impact

Seeking new ways to increase their impact, leading nonprofits increasingly are taking a broader view of the strategic role their brands can play in driving long-term social change. In this new view, a nonprofit's brand is critical to organizational strategy — making that strategy tangible through a system of designed experiences that express the ideas and values the organization represents.

Such a view marks a significant departure from the communications-centric model of nonprofit branding in which a brand exists primarily as a marketing tool for managing perceptions. In the new paradigm, a brand must embody critical elements such as social innovation and design thinking (as exemplified by the work of design firms such as IDEO). This view also embraces the ability of a brand to shape conversations, strengthen relationships, and increase an organization’s effectiveness. This line of thinking is best articulated in the work of Harvard professor Nathalie Laidler-Kylander and Christopher Stone — and detailed in their book The Brand IDEA: Managing Nonprofit Brands with Integrity, Democracy, and Affinity.

Among its many insights The Brand IDEA suggests a new role for "brand" within the nonprofit organization — a role in which it is both driven by, and acts as a primary driver of, organizational strategy, exerting influence and commanding mind-share, both internally and externally, to create a virtuous cycle that strengthens and reinforces itself with each success.

Visualized, what Kylander and Stone title the "Role of Brand Cycle" in a nonprofit looks something like this:

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Funding the Marriage Equality Movement: Lessons in Collaboration and Risk Taking

July 06, 2015

Rainbow-flagThe marriage equality movement in the United States has been fueled by the strategic and coordinated efforts of legal groups, advocacy organizations, and a small but active community of grantmakers. The historic U.S. Supreme Court ruling on June 26 to extend marriage equality nationwide was preceded by a gradual legislative sea change and a dramatic shift in public opinion. In 2001, a majority of Americans opposed the idea of allowing same-sex couples to marry. In 2015, polls showed a reversal of the numbers, with 57 percent of Americans favoring marriage equality.

One of the key funders behind this shift was the Civil Marriage Collaborative (CMC), an initiative of the Proteus Fund that has partnered with individual donors and foundations to award roughly $2 million in grants each year since 2004 for a broad range of publicly visible education activities aimed at advancing marriage equality. In the wake of the Supreme Court's decision to uphold same-sex marriage as a constitutional right, it's worth looking closer at how CMC, as a funder collaborative, contributed to the success of the marriage equality movement. The CMC story also offers lessons about the role philanthropy can play in advocacy, as well as how funders can collaborate and take risks to achieve greater impact.

Prior to the Supreme Court decision, federal law defined marriage as the union of a man and a woman. By 2004, marriage equality had gained traction with a number of key legislative wins, including the approval of civil unions in Vermont, which granted same-sex couples some (but not all) of the legal benefits of marriage, and a landmark victory in Massachusetts that made it the first state in the U.S. to uphold the right of LGBT couples to marry. But it was also a year of setbacks for the movement, as a series of same-sex marriage bans were passed in thirteen states. According to CMC director Paul A. Di Donato, it was around this time that some grantmakers began to realize that achieving a critical mass of support for marriage equality would require greater engagement by the philanthropic community, not just a few relationships between individual foundations and big national players. With that in mind, a group of funders, including the Gill Foundation, the Evelyn and Walter Haas Jr. Fund, the Overbrook Foundation, and the Proteus Fund (as a convener), came together around the idea that pooling financial resources and sharing collective knowledge could lead to broader change. Subsequently, they agreed to test the waters as a funder collaborative for a few years to see whether same-sex marriage would continue to gain traction as an issue. In 2007, when Di Donato joined CMC, same-sex marriage was still at the top of the LGBT agenda and the collaborative's members were still deeply committed to supporting public education activities aimed at advancing that agenda.

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Weekend Link Roundup (July 4-5, 2015)

July 05, 2015

Grateful-dead-50th-anniversary-logo-stickerOur weekly roundup of noteworthy items from and about the social sector. For more links to great content from and about the social sector, follow us on Twitter at @pndblog....

Civic Engagement

"Indicators of America’s flagging democratic engagement abound," writes Jamie Merisotis, president and CEO of the Lumina Foundation, in an op-ed on the Fox News site. And a key reason, says Merisotis, is that America is "losing its edge when it comes to talent – the knowledge, skills and values that lead to success in our lives and careers." What's more, the decline in talent not only serves as a drag on the economy, it affects the quality of our democracy. "Without opportunities to cultivate their talent," writes Merisotis, "Americans are left with few prospects to move up the economic ladder. That creates a sense of hopelessness and apathy, which in turn has a dampening effect on Americans’ willingness to vote and engage. And without such involvement, democracy’s power wanes."

Fundraising

"[T]apping into your network and empowering your people is how the [fundraising] magic happens (especially with big fundraising events like #GivingTuesday)," writes Caryn Stein, vice president for communications and content at Network for Good. And this year, she adds, there are "two things you absolutely must do for a truly successful #GivingTuesday campaign: 1) identify your team and 2) activate your community.  While you're at it, be sure to check out our Q&A with 92nd Street Y executive director Henry Timms, the "father of #GivingTuesday." 

Joanne Fitz is hosting the July Nonprofit Blog Carnival on her Nonprofit Charitable Orgs blog and is looking for posts on a topic of great interest to all nonprofit leaders: year-end fundraising. To be included in the final roundup, you have to have first published a post or article on your own blog. Then submit it by Saturday, July 25, to Joanne at nonprofitcarnival@gmail.com. Joanne will review all submissions and pick the best to feature in a round-up post on July 28. Good luck!

International Affairs/Development

Writing in the Huffington Post, Suzanne Skees looks at efforts by the Grameen Foundation to design disruptive mobile solutions "to the kind of poverty that's most challenging to reach, in remote rural areas, and to the poorest of the poor."

Nonprofits

On his Nonprofit Management blog, Eugene Fram shares some behavioral ways by which to assess whether or not a quality partnership exists between the board and CEO.

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Most Popular PhilanTopic Posts (June 2015)

July 01, 2015

Book reviews from two of our favorite contributors, a timely look at the future of community foundations from Silicon Valley Community Foundation president Emmett Carson, a thought-provoking post on the relationship between philanthropy and inequality by Foundation Center president Brad Smith, a cool infographic from CECP and the Conference Board, and great advice for nonprofits from Claire Axelrad and Bethany Lampland — all that and more helped make June the second-busiest month ever at PhilanTopic. Best of all, you've got a long holiday weekend to catch up on the good stuff you may have missed. Have a happy and safe Fourth!

Read, watched, or listened to anything lately that surprised or made you think? Share your find with others in the comments section below, or drop us a line at mfn@foundationcenter.org.

5 Questions for...Henry Timms, Executive Director, 92nd Street Y

June 30, 2015

#GivingTuesday was established in 2012 by the 92nd Street Y in New York City and the United Nations Foundation as a sort of corrective to Black Friday and Cyber Monday, two post-Thanksgiving "holidays" dedicated to spending and consuming. The idea, according to Henry Timms, executive director of the 92nd Street Y, was simple: "We were really just trying to say, look, everyone talks about the holiday season and the giving season, and we think there's space for the philanthropic community to make a statement, amongst all the consuming and buying, that giving is important, too."

PND recently spoke to Timms about a new report that provides an in-depth look at #GivingTuesday fundraising trends since 2012.

Headshot_henry_timms_cropPhilanthropy News Digest: A new analysis by Blackbaud shows double-digit year-over-year growth in #GivingTuesday donations for three years running. Is it your sense that the growth in donations is in addition to the usual giving that happens at the end of the year, or is it coming at the expense of traditional year-end giving?

Henry Timms: We haven't seen evidence of the latter. In fact, the data we have seen has been quite positive with respect to the additive value of #GivingTuesday, both in terms of gift size, which has been meaningful, and also from an overarching perspective. Our own #GivingTuesday campaign has been hugely beneficial in terms of additive donations. It would be naïve to suggest it doesn't happen, occasionally, but the overall trends are very positive. Steve MacLaughlin at Blackbaud has actually been very good on this topic and has written some really interesting pieces on how Americans think about giving, and one thing he talks about is that we do have this kind of default fear of scarcity in the nonprofit sector. It’s a kind of Oliver complex, where we tremble whenever we get up the nerve to ask for more. I wonder how healthy that is, especially this year, when we see first-half fundraising numbers coming in pretty bullish. It seems to me like it’s a good time to be asking for more. I was at an event in Westchester County recently, and someone there said to me, "You know what, I love #GivingTuesday because it gave me the confidence to ask, which is something I never had." Many of us recognize how important that permission is, and I think we need to encourage our colleagues in the field to ask more regularly. Not just on #GivingTuesday, but all year long.

PND: Was there anything in the Blackbaud study that surprised you?

HT: The finding which jumped out at me was mobile. Something like 17 percent of the online donation form views on #GivingTuesday were from mobile phones. But how many nonprofits are ready to accept mobile donations in a meaningful way? It's a wake-up call. If you've spent any time in Silicon Valley, you know that everyone is building for mobile. The same can't be said of the nonprofit sector, so I hope that finding starts to get people really thinking about mobile. I was also pleased to see a lot of smaller organizations report positive #GivingTuesday results, because one of the early criticisms of the campaign was that it would only work for large organizations. Generally speaking, the data in the Blackbaud study is quite interesting, and one of the many good things about #GivingTuesday is that, three years on, we have richer data and a lot more of it.

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Weekend Link Roundup (June 27-28, 2015)

June 28, 2015

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

Economy

"For young and old alike," a new poll suggests, "debt now looms as a major factor in setting their life course. An identical 38 percent of both young and older respondents said that in making decisions such as when to get married, buy a home, or have children, debt had affected their choices 'a great deal'. Nancy Cook, a correspondent for National Journal, reports for The Atlantic.

Fundraising

On the Nonprofit Marketing Blog, Jennifer Chandler, vice president and director of network support and knowledge sharing at the National Council of Nonprofits, shares some thoughts on how new rules issued by the federal Office of Management and Budget (OMB) could "make life less stressful for nonprofit fundraising professionals and development directors."

In a post on the Software Advice blog, Janna Finch, a market research associate at the firm, shares key findings from a report based on a recent survey of nonprofit event planners.

Giving

Is charitable giving really at a record high? On the CNBC website, Kelley Holland takes a closer look at the numbers.

Higher Education

Meredith Kolodner, a staff writer for the Hechinger Report, checks in with a deeply researched look at merit-based scholarship programs, which, studies show, "disproportionately benefit middle- and upper-income students and have little impact on college graduation rates.

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[Infographic] Impact Investing Opportunities

June 27, 2015

Impact investing is an activity "that aims to generate a specific social or environmental benefit in addition to financial gain." Previously the domain of institutional investors, over the last five years it has begun to attract the attention of foundations and high-net-worth individuals and, according to the team at Getting Smart, has powered a revolution in ed tech. In addition to outlining basic considerations for donors thinking about making an impact investment and listing ten education investment categories, our infographic of the week (courtesy of Getting Smart) includes a link to a paper (38 pages, PDF) that identifies twenty-five impact investment opportunities in K-12 education.

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[Review] 'Geek Heresy: Rescuing Social Change From the Cult of Technology'

June 26, 2015

Don't be fooled by the title of Kentaro Toyama's Geek Heresy: Rescuing Social Change From the Cult of Technology: this is not an iconoclastic anti-technology manifesto. Nor is it a paean to an idealized pre-digital age when social change was driven by "people in the street." Instead, as back-cover blurbs from both Bill Gates and William Easterly, the NYU economics professor whose book The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor excoriated the kind of "technocratic" global health interventions favored by the likes of the Bill & Melinda Gates Foundation, Geek Heresy presents a nuanced argument for a human-centric approach to development work that leverages, rather than relies on, technology to create change.

Cover_geek_heresyA "recovering technoholic," Toyama, co-founder of Microsoft Research India and now the W.K. Kellogg Associate Professor of Community Information at the University of Michigan, once believed fervently in the power of technology to solve a range of "social afflictions." Like many of his peers in the tech industry, he embraced the idea that digital technology and cleverly designed devices could improve failing schools, eliminate health disparities, and lift communities out of poverty. But his work in India and elsewhere soon disabused him of that notion, convincing him, instead, that technology's role in society, not to mention its many grave consequences, was widely misunderstood. He couldn't ignore the fact, for instance, that Microsoft Research India's pilot projects, though successful in well-funded, closely monitored demonstration schools, faltered when scaled to underfunded government schools — in part due to the lack of adequately trained teachers, engaged administrators, and tech support and infrastructure. In those situations, technology not only didn't improve things; it exacerbated existing problems and disadvantages.

This "Law of Amplification" is the crux of Toyama's argument. "[T]echnology"s primary effect," he writes, "is to amplify human forces...[and] magnify existing social forces" — another way of saying "the degree to which technology makes an impact depends on existing human capacities." While it isn't a novel idea, as the author himself admits, Toyama sees it as a useful framework for a discussion of how NGOs, development experts, and industry leaders can leverage technology more effectively to address poverty, educational disparities, and other development challenges.

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Restoring Eyesight: Leveraging Tech to Empower People

June 24, 2015

Wasty_steinberg_maguire_phillips_200.2Jadi Begum Bi lives in a small mud house near Sargodha, Pakistan. She may never meet Shakil Khan, a member of a displaced community near Syedpur, Bangladesh, or Raju Sharma, a laborer in Patna, India. They all have one thing in common, though: they had been blind for years, until their eyesight was restored and their lives transformed as part of RS Foundation's ocular procedures program.

A Canadian nonprofit organization, the RS Foundation has facilitated more than fourteen thousand procedures for men, women, and children over the past six years by funding local and international partners such as OBAT Helpers USA, Sightsavers in the UK, and the Seva Canada Society. Other organizations engaged in this work in a significant way include 20/20/20 (U.S.), the Fred Hollows Foundation (Australia), the Aravind Eye Care System (India), LRBT (Pakistan) and Unite for Sight, whose eye clinics have benefited 1.9 million patients in Ghana, Honduras, and India.

According to the World Health Organization, 60 percent of the estimated half a million children who go blind every year in developing countries will die in childhood. WHO further notes that restoring sight is the single most cost-effective health intervention in reducing global poverty. For the cost of dinner at an inexpensive restaurant, a poor, visually impaired individual can have their sight restored, regain the ability to work and provide for their family, and recover their lost dignity. Indeed, studies have found that eye surgery interventions in developing Asian and African countries "significantly increase personal consumption expenditure (PCE) among operated cases" and raise "productivity among vulnerable groups, in particular females, [the] elderly and those with the [least] economic opportunity."

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5 Questions for...Vic De Luca, President, Jesse Smith Noyes Foundation

June 23, 2015

The Jesse Smith Noyes Foundation was established in 1947 by Charles Noyes, a real estate developer in Manhattan, in honor of his wife, Jessie Smith, herself a women's suffrage and civil rights activist. Initially, Noyes set up the foundation to provide scholarships, with half earmarked for non-white students. In the 1990s, the family decided to change course and began to provide funding more directly to organizations working on issues in which they had an interest. Today, most of its support goes to grassroots organizations and movements in the United States working "to change environmental, social, economic, and political conditions to bring about a more just, equitable, and sustainable world."

Recently, PND chatted with Vic De Luca, who joined the foundation in 1991 and has been its president since 2000, about its donor-advised campaign, a new initiative aimed at convincing donors to make more timely allocations from their donor-advised funds.

Headshot_vic-de-lucaPhilanthropy News Digest: The Noyes Foundation recently launched a campaign around the timely distribution of monies from donor-advised funds. Why is the distribution of funds from DAFs suddenly an issue?

Vic De Luca: Donor-advised funds have been around a long time, administered in many cases by community foundations, but they started to become really popular among donors in the 1990s after mutual fund companies like Fidelity and Vanguard began to offer them, and by the early 2000s their popularity was off the charts. One of the reasons for their popularity is that contributions to a donor-advised fund qualify for an immediate tax deduction, while donors have complete say over how those tax-advantaged dollars are allocated. In other words, you're allowed to transfer funds from your own personal account at Fidelity or Vanguard to a public charity, and then at some point in the future you get to "advise" that public charity as to where those dollars should go. It's a simple process. You just contact the fund-holder, answer some questions, and make a contribution; it can be a one-time contribution, or you can choose to contribute on a regular basis. And you can make disbursements from the fund at any time, or not at all.

PND: What part of that equation does your campaign address?

VDL: We're not saying donor-advised funds are good or bad; we're saying the current system is broken, in that it allows an individual donor to take an immed­iate tax deduction but does not insist on a corresponding responsibility to put those dollars to work for public benefit in a timely fashion, which is something we'd like to see. We think donors should be encouraged to give, and what we're trying to do is to say to individuals who have donor-advised funds, "Look, you've made your contribution to this public charity, you've gotten your tax deduction, don't let that money sit there, let's put it to good use." We think the money sitting in donor-advised funds is an untapped resource that could and should be used to deal with some of the pressing problems of the day. And we can help donors who share our social justice concerns do that.

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How to Identify Prospects in a Small Shop

June 19, 2015

Prospect_research_HiResWhen it comes to identifying prospects, many otherwise intelligent people enter the world of the Sugar Plum Fairy. They figure that all they have to do is research individuals with a high net worth, determine an appropriate six-figure "ask," find out where these individuals live, and then track them down and request a gift. The Sugar Plum Fairy part is that these individuals will be delighted to have been stalked in this way and will make the gift. 

In fact, effective prospect research has to start with people to whom you have access: your own friends and family, your board members and their networks, your organization's current donors, and your donors' friends and family members. Many famous people might, in fact, be interested in your organization. But getting your message in front of them requires a messenger: someone you know has to know them. 

So, we start with who we know. Then we must determine: of the people we know, who gives money to charitable causes? In a typical year, about 70 percent of the adult population will make a donation to a nonprofit organization, so there's a better-than-average chance that the people we have access to are givers. That said, there is no point in asking someone for money who never gives. Once you've eliminated the people who never give, you have a list of prospects to research. And if you hang out with high-net-worth individuals who also happen to be generous donors, then you'll want to do more research on them and maybe eventually ask them if they'd be interested in supporting your organization.

When thinking about prospect research, keep the following in mind:

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[Review] 'The Social Profit Handbook: The Essential Guide to Setting Goals, Assessing Outcomes, and Achieving Success for Mission-Driven Organizations'

June 18, 2015

In his poem "i thank You God for most this amazing," e.e. cummings wrote that "now the ears of my ears awake and / now the eyes of my eyes are opened." It is precisely this sense of clarity that comes to mind when reading The Social Profit Handbook: The Essential Guide to Setting Goals, Assessing Outcomes, and Achieving Success for Mission-Driven Organizations (Chelsea Green Publishing, 2015) by David Grant, former president and CEO of the New Jersey-based Geraldine R. Dodge Foundation.

Cover_the_social_nonprofit_handbookAs Grant notes, the world of the twenty-first century increasingly is defined by metrics and data. The social sector is no exception, and calls for better and more timely measurement of its activities have become a feature of the landscape. Gone are the days when funders were content to let intuition and anecdotal evidence guide their funding choices. Donors today — both institutional and individual — are keen to move the needle on large, seemingly intractable societal and environmental challenges, and in attempting to do so they have become ever-more interested in data that can demonstrate the impact of the programs and organizations in which they have invested. As a long-time admirer and teacher of poetry and literature, Grant relishes the complexity of this brave new world and applies his nuanced perspective toward a keen assessment of what it means for the field. "Social profit," he writes, "is about desired social benefits, and so it has to be defined locally depending on what a community of people values and what they need. It will never have a fixed or standard measure, and efforts to create one will get bogged down in endless quibbles and conflict about measurement itself."

According to Grant, efforts to measure social impact are fraught with challenges with which the for-profit world does not have to contend. Trying to balance multiple bottom lines, for example, is necessarily more complex than having to worry about a single one, he notes, especially given the fact there is no single agreed-upon unit of "social profit." Rather than focus on quantitative measures, therefore, Grant emphasizes qualitative "formative assessment." While not ignoring quantitative performance measures, he favors "soft measurements" and argues that a true assessment of social profit demands "a combination of pertinent metrics and a qualitative description...that can only be created by the people who are providing and receiving it."

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Climate Action: A Catalyst for Change

June 17, 2015

Take_action-580x386The coming months promise to be the most hopeful yet in our long fight against global climate change.

President Obama is moving forward with a plan to clean up dirty power plants. The Clean Power Plan will do more to cut the dangerous carbon pollution that's driving climate chaos than any single step ever taken, and it will also spur tremendous innovation and create tens of thousands of clean energy jobs.

Elsewhere, Pope Francis is poised to issue a papal encyclical on our collective moral obligation to protect future generations from the dangers of climate change. And more than a hundred and ninety world leaders will gather in Paris later this year with the goal of taking concerted action to confront the climate crisis. In doing so, they will also be creating a more equitable, just, and sustainable future for our children, grandchildren, and great-grandchildren.

And yet, powerful forces, most notably the fossil fuel industry and its political allies, are prepared to do everything they can to derail this progress. Theirs is a simple agenda: put fossil fuel profits first — even if it puts the rest of us at risk.

In the two-year run-up to the midterm elections last November, the fossil fuel industry spent more than $720 million to support its agenda and its allies in Congress. They seem to be getting their money's worth. Republican leaders in the House and Senate have been pushing legislation meant to block the Clean Power Plan, while offering no alternative of their own to address climate change.

We can't let them get away with it.

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Philanthropy’s Difficult Dance With Inequality

June 16, 2015

Inequality-304America's foundations do not easily use the word "inequality." This may seem surprising in the wake of the Ford Foundation's recent announcement that it will refocus 100 percent of its grantmaking on "inequality in all its forms," but perhaps it shouldn't. Out of close to four million grants made by American foundations and recorded by Foundation Center since 2004, only 251 use the word "inequality" in describing their purpose. Moreover, the geographic focus of many of those grants is countries such as El Salvador, Nigeria and Malaysia -- or it's simply "global," which in the parlance of most foundations means the rest of the world. More common are terms like "opportunity" and "poverty," which can certainly be viewed as related to "inequality" but hardly are synonyms for it.

Nevertheless, inequality is an inescapable fact of our world: while extreme poverty in many regions of the globe may be declining, recent research suggests that the gap between rich and poor is fast becoming a growing threat to peace, economic prosperity, the environment, public health, democracy and just about any other major challenge you can name. Indeed, one of the 2030 Sustainable Development Goals developed by seventy nations (with the direct participation of 7.5 million people around the world) is to "reduce inequality within and among nations." So, why don't more foundations embrace the term?

Inequality is controversial. In most camps, the word "inequality" is not neutral. It is a concept that implies a search for causes rather than the treatment of symptoms. It requires the kind of work that Carnegie Corporation board chair Russell Leffingwell so eloquently described in his McCarthy-era testimony to Congress: "I think [foundations] are entering into the most difficult of all fields....They are going right straight ahead, knowing that their fingers will be burned again, because in these fields you cannot be sure of your results, and you cannot be sure that you will avoid risk." It is also difficult for a single foundation, or even a coalition of foundations, to know where to begin. Oxfam reports that eighty-five ultra-high-net-worth individuals hold as much wealth as the poorest half of the world’s population. How do you tackle such a challenge? Besides, this simply isn’t the kind of work that most foundations do. More than 60 percent of the giving by U.S. foundations goes to mainstream causes in the fields of health, education, and the arts.

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