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1083 posts categorized "Philanthropy"

Weekend Link Roundup (September 27-28, 2014)

September 28, 2014

Hk_protests_07011Our weekly roundup of noteworthy items from and about the nonprofit sector....

Economy

A new report from Jennifer Erickson and her colleagues at the Center for American Progress explores the "middle-class squeeze" -- the double-barreled phenomenon of stagnant income and rising costs that has eroded middle-class Americans' standard of living over the last decade or so.

Technology has been one of the factors behind stagnating middle class incomes. But in this Q&A with Eric Brynjolfsson, a professor of management science at MIT’s Sloan School of Management, Nobel laureate Robert Shiller and Jeremy Howard, a research scientist at the University of San Francisco, suggest that the exponential advance of machine learning will further exacerbate inequality and may lead to the end of paid employment for most of us.

Education

It's pretty much become conventional wisdom: Education is the antidote to racial inequality. But an analysis of the Fed's recently released 2013 Survey of Consumer Finances by Demos' Matt Bruenig finds that "white families are much wealthier than black and Hispanic families at every education level....[and] that all white families, even those at the lowest education level, have a higher median wealth than all black and Hispanic families, even those at the highest education level."

Cassie Walker Burke, an assistant managing editor at Crain's Chicago Business, has a good, balanced piece in Politico Magazine about the "Kalamazoo Promise" -- an initiative conceived and funded by philanthropists in that Michigan city "to pay for college for any student who attended the Kalamazoo schools from kindergarten on and then attended a public college in Michigan.

"[M]any public school leaders work with counter-productive assumptions about the readiness, interest and even the basic capacity of regular people to understand the changes our systems need to keep up with the times," writes Nicholas Donohue, president/CEO of the Nellie Mae Education Foundation, on the Center for Effective Philanthropy blog. And that's a shame, Donohue adds, because direct community engagement just may be the key to advancing meaningful education reform.

International Affairs/Development

On the Partners in Health blog, PiH co-founder Paul Farmer and Joia Mukherjee, the organization's chief medical officer, argue that the way to stop the Ebola outbreak in West Africa is to couple community care with infection control. "Of course, the region needs more treatment units for the sort of care that can only be provided in an in-patient setting," they write. "And hospital care can be improved long-term only by training and equipping Sierra Leoneans and Liberians: the staff and the 'stuff' required to save lives. But it also needs to provide the tools that smaller clinics and front line health workers need to fight the virus in their neighborhoods and villages...."

NPR has a good piece that explains why it has been hard to raise money for Ebola response efforts in West Africa.

Nonprofits

If foundations are serious about advancing solutions to pressing social problems, they need to invest in the leaders of the organizations they fund, writes Nell Edgington on her Social Velocity blog. And that process should start with nonprofit leaders and funders "having better conversations about what it will really take to accomplish their joint...goals."

Philanthropy

In an op-ed in the Chronicle of Philanthropy, Pablo Eisenberg, a senior fellow at the Center for Public and Nonprofit Leadership at the Georgetown Public Policy Institute, argues that the Council on Foundations, the most prominent trade association in the grantmaking world, has lost its way and needs to decide, sooner rather than later, what it wants to be.

Regulation/Oversight

And the New York Times' Jonathan Weisman reports on an inside-the-beltway dustup that, in the words of Stanford political science professor Rob Reich, offers further evidence of "the debasement of [our] campaign finance system via corruption of the nonprofit sector."

That's it for now. What have you been reading/watching/listening to? Drop us a line at mfn@foundationcenter.org or via the comments box below....

'Name That...'

September 26, 2014

Once in a while, a news item here at PND generates a comment that makes us smile, think, or both. Samuel Prince, director of development at Legal Aid of NorthWest Texas, appended such a comment to an item in today's news hole titled "Donors, Nonprofits Get Creative With Use of Naming Rights."

The item, which is adapted from an article that first appeared in the Financial Times, considers the "creative use" of naming rights by nonprofits looking to boost their fundraising revenue. But as Mr. Prince notes in his comment, "the naming of physical items by donors has been going on a very long time and dramatically pre-dates the mid 1990s." To illustrate his point, he shares the following:

In the movie Sallah Shabati, an Israeli black-and-white film of the early 1960s, there is a famous scene where the lead character, Mr. Shabati, a Yemenite Jewish immigrant, is working [on] a Jewish National Fund forest tree-planting project. He notices a man drive up to the area and plant a sign in the ground. He walks up to the man and asks what he is doing. The man responds that he has just set up this sign recognizing these trees as the Esther Rosenblum Forest. Mr. Shabati smiles and says, "That's very nice," and then goes back to his work.

A little while later a car drives up. An elderly American woman gets out of the car with a few others, stands in front of the sign, has her picture taken, gets back into the car, and drives away. The man from the Jewish National Fund then removes the first sign and installs a second. Mr. Shabati asks him what the new sign says. He tells Mr. Shabati that the sign recognizes the area as the Samuel Goldberg Forest. Shabati goes crazy and begins to pull the newly planted trees out of the ground. The Jewish National Fund man screams at him and asks what he is doing. Shabati responds that he is saving the trees for Mrs. Rosenblum.

In 1977, when I was first employed to raise money for the Jewish National Fund, my boss told me a then-famous story about an archaeological expedition in Northern Israel which discovered a pillar with some strange written characters etched on it. They sent it to Jerusalem [to be examined by] an expert in ancient languages. The expert arrived and spent several hours studying the writing and comparing it with various samples in some textbooks he had brought. After a considerable amount of time, he took off his glasses, turned to the archaeologists, and announced that he had successfully translated the inscription. The archaeologists asked him to tell them what it said. He replied, "The inscription states: 'This pillar was donated by Shimon, son of Avraham, the Levite'.

Prince closes his comment by suggesting that while he would never criticize a donor who wants to etch his/her name on something in exchange for a donation in support of the important work done by his organization, the real issue, from his perspective, is a lack of justice for poor people in America. Or, we might add, educational opportunity, economic opportunity, etc.

So, yes, be creative. Take a cue from the world of sports and let folks willing to write a check to underwrite your work name everything in sight. But don't forget that the work itself is the thing that really matters.

Bright Shiny Objects

September 15, 2014

Headshot_maria_mottolaI like Alec Baldwin. I really do. He's sassy and good-looking. He's got a great head of hair and that instantly recognizable deep, silky, authoritative voice lulls you in whether he's cueing up classical music, bossing Liz Lemon around, or sharing intimacies with celebrity friends on "Here's the Thing." He's also sometimes unapologetically audacious.

So why would it bother me that he's going to be the keynote speaker at the Independent Sector conference in Seattle?  I mean, I've been on conference planning committees and I know you need a big name to entice people to log off email and travel great distances to talk to one another. I admit, Alec Baldwin is not just a pretty face. He's a smart guy with strong opinions who hasn't shied away from politics or policy issues.

So in some ways I should not have been surprised to see his photo pop up in an email with a banner announcing "Summer Surprise! Alec Baldwin will be the plenary speaker at the Independent Sector Annual Conference in Seattle."

But honestly, the whole idea is kind of depressing. While it may be a coup to snag Alec Baldwin as a speaker, to give him the spotlight at this particular point in his career feels like we won the celebrity consolation prize. It feels, truth be told, a little desperate.

Did we forget that just a year ago Alec Baldwin allegedly hurled angry homophobic insults (more than once) at reporters? Yes, he tried to make things better, but he ended up making things worse with a meandering screed he penned for a New York magazine blog that rationalized his actions by blaming an aggressive press corps that "made him do it."  It was an epic read: half mea culpa, half angry diatribe. Watching Baldwin turn himself inside out so thoroughly and so frantically elicited the same feeling you get from craning your neck to look at an accident you know you should avert your gaze from.

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[Infographic] LGBT Rights Around the World

September 13, 2014

If, like us, recent headlines have you feeling more than a little discouraged, the infographic below should cheer you up.  While acknowledging that gays and lesbians around the world have widely different experiences, it notes that the legal status of LGBT individuals in the U.S. has improved markedly in recent years. As regular readers of PND and PhilanTopic know, that's due, in part, to the tireless efforts of foundations such as Gill, Arcus, Ford, Haas, Pride, Horizons, Tides, and van Ameringen. And while acceptance of gays and lesbians is not yet the norm in many regions of the world, recognition of same-sex relationships and/or marriage is becoming more common -- a reminder that social change, while not easy, is possible when enough people see an injustice and commit themselves to righting it.

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Making School Choice Work Requires New Cross-Sector Investments

September 12, 2014

Headshot_robin_lakeAs many thoughtful education reform advocates now admit, public school choice has created new possibilities for families desperate for better options. But it can also create significant access challenges for disadvantaged families. In cities where many state and local agencies oversee district and charter schools, fragmented governance makes solving those challenges especially difficult.

This is evident in cities like Detroit and Cleveland, where parents now have many school choices and districts must compete for students. While good new options exist in the form of charter and private schools, many families can't get access to them. District officials and charter authorizers protect their own schools from closure, so that weak schools stumble along and overall educational quality stagnates. Recognizing that the best schools have little advantage over weaker ones, the best educators and charter providers go elsewhere.

Recent research by the Center on Reinventing Public Education holds good and bad news for school choice advocates: we found that many parents in "high-choice" cities, including many from disadvantaged backgrounds, are today actively choosing their children's schools and getting access to their first or second choice. Yet our research also shows that too many parents face barriers to finding good schools, including difficulty in obtaining reliable information to inform their choices, navigating different eligibility and application requirements, and finding adequate transportation. Parents with the least education and those who have children with special needs report the most significant barriers.

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Tracking the Human Rights Response to HIV

September 10, 2014

"Good decisions always require good information, and when resources are limited, data matters even more...."

– Greg Millett, vice president and director of public policy, amfAR, the Foundation for AIDS Research

Headshot_sarah_hamiltonIn August, AVAC and amfAR issued a report, Data Watch: Closing a Persistent Gap in the AIDS Response, that calls for a new approach to tracking data on the global response to AIDS. What's unique about Data Watch is that it places equal emphasis on filling the gaps in both epidemiological and expenditure information. Data has always reigned supreme in the public health world, but in their new report AVAC and amfAR pose a simple question: What happens to our quest to end the HIV/AIDS epidemic by 2030 if we don't know whether we have the funding to sustain our efforts?

Through improved data, for instance, we now know that key populations (i.e., men who have sex with men, people who use drugs, transgender people, and sex workers) represent a major share of the epidemic, largely due to such factors as stigma, discrimination, and punitive laws that continue to marginalize these populations and keep them from the care and treatment they need. With human rights abuses continuing to fuel the epidemic and impacting the health and rights of those most at-risk, targeted funding for a human rights response to HIV is critical.

But is that happening?

Sadly, no. Recent research from the Join United Nations Programme on HIV/AIDS (UNAIDS) [1] found that less than one percent of the $18.9 billion spent on the overall HIV response in 2012 supported human rights programming.

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Foundation Transparency: Are Foundations and Nonprofits Seeing Eye to Eye?

September 08, 2014

Headshot_buteau_gopalNonprofit and foundation leaders have starkly different views about the importance of foundation transparency. That's what we learned when we surveyed nonprofit and foundation CEOs about their attitudes about this issue. Nonprofit CEOs value foundation transparency and believe it contributes to their effectiveness. "Openness, which [foundations] require of us, would be very helpful in creating a good working relationship," said one nonprofit CEO. But the majority of foundation CEOs don't see transparency as crucial to impact.

We found that 91 percent of nonprofits agree that "Foundations that are more transparent are more helpful to my organization's ability to work effectively," but only 47 percent of foundation CEOs agree that "Foundations would be able to create more impact if they were more transparent with the nonprofits they fund."

Why might nonprofit and foundation CEOs have such different attitudes toward foundation transparency?CEP_transparency_findingsFirst, foundations may not share nonprofits' understanding of transparency. To nonprofit CEOs, foundations are transparent when they are "clear, open, and honest about the processes and decisions that are relevant to nonprofits' work." Transparency is not only about what information foundations share — which Glasspockets helps to track through its transparency indicators — but how effectively foundations have communicated that information to nonprofits.

Foundations may also think they are transparent enough. But nonprofit leaders' assessment of foundations' transparency suggests they could do better: on a scale of 1 to 7, where 1 indicates "not at all transparent" and 7 indicates "extremely transparent," nonprofit CEO respondents on average rate the overall transparency of their foundation funders a 4.7. As one nonprofit CEO said, "I don't think there is intent to be less transparent, but often times foundations may assume we know things about their programs, opportunities and goals we don't really know."

Nonprofit CEOs also tend to think foundations are not transparent enough about what has not worked in foundations' experiences — but fewer foundation CEOs see it that way. We found that 88 percent of nonprofit CEOs believe foundations should be more transparent about this, while only 61 percent of foundation CEOs disagree that, "Foundations do a good job of publicly sharing what has not been successful in their experiences." Perhaps nonprofits see this issue differently because they clearly understand how they could use such knowledge. "One of the best learning tools is to see what has not worked. Learning from foundations and their other grantees would be very instructive," said one nonprofit CEO.CEP_transparency_findings2While there are some examples of foundations actively working to be more open — notably the William and Flora Hewlett Foundation with its "Work in Progress" blog and Darren Walker's efforts to build a culture at the Ford Foundation where "openness is held in as high regard as our intellectual curiosity, our rigor and our commitment to the values we share" — too few foundation leaders seem to recognize the need, from nonprofits' perspective, for greater transparency.

— Ellie Buteau is vice president of research and Ramya Gopal is associate manager of research at the Center for Effective Philanthropy. This post originally appeared on Glasspockets' Transparency Talk blog.

[Video] "Ecosystem Philanthropy" | Jennifer Ford Reedy, President, Bush Foundation

September 06, 2014

In this recent TEDxFargo talk, Reedy, the fourth president of the Saint Paul-based Bush Foundation, uses a variety of examples, from "Sesame Street, to the re-introduction of wolves in Yellowstone National Park, to the dramatically different but equally influential efforts of Albert and Mary Lasker and John M. Olin, to explain "why so many attempts to do good in the world don't work as intended and how the most effective philanthropists understand the social ecosystem they are trying to effect and put it to work for them."

Reedy concludes her talk with four lessons for philanthropists and philanthropy practitioners looking to drive change in a world of unintended consequences:

  • Activate others.
  • Watch, wait, and do.
  • Think long and lasting.
  • Don't underestimate the power of individuals.

(Running time: 18:08)

Are you involved in -- or can you point to -- a successful example of "ecosystem philanthropy"? Which of Reedy's lessons (if any) does it exemplify? And what lessons would you add to the list? Use the comments section to share your thoughts....

All Aboard for Practices That Matter

August 19, 2014

Headshot_nikki_powellIt's a common refrain these days: a perfect storm is changing the way philanthropy is done, and that change is likely to accelerate in the years to come.

Some of the forces driving this change are external, beyond the control of stakeholders in the field. Others are emerging from the field itself and represent some of the best opportunities philanthropy has to embrace, leverage, and accelerate its own evolution.

One of those internal forces is the simple yet confounding issue of grantmaking practices.

You don't need me to tell you that complexity is the rule when it comes to grantmaking strategies. Every funder has its own ideas about who it wants to fund, why, and the outcomes and measures of success it uses and is looking for.

At the same time, meeting nonprofit needs has become trickier, as the demand for services continues to outpace the resources available to meet those needs, making the decisions on who should be funded that much harder.

Against this backdrop, I'm pleased to report that some of the most exciting changes in philanthropy, changes that involve the how of grantmaking, are just waiting for funders to take advantage of them. As the association representing grants management professionals – the people who actually develop and execute grantmaking practices at foundations – Grants Managers Network has a unique vantage point on the ways in which grantmaking practice is becoming more important. Indeed, we feel so strongly about the issue, we've decided to share our perspective in a new report titled Blueprint for the Future.

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Weekend Link Roundup (August 16-17, 2014)

August 17, 2014

Conflict_ImageOur weekly roundup of noteworthy items from and about the nonprofit sector....

Education

Why hasn't the once-booming tech ed sector solved education's problems? Writing in The Atlantic, Robinson Meyer, an associate editor for the publication, shares some thoughts on that question from Paul Franz, a former doctoral candidate at Stanford who now teaches language arts in California. Those thoughts, writes Meyer, "mirror my own sentiment that education is a uniquely difficult challenge, both technically and socially, and that its difficulty confounds attempts to 'disrupt' it...."

Fundraising

The "ice bucket challenge," a grassroots campaign aimed at raising funds for the ALS Association, a a charity dedicated to finding a cure for amyotropic lateral sclerosis (aka Lou Gehrig's disease), went viral this week. Around the country, celebrities and members of the public were filmed being doused with a bucket of ice water and then posted the footage to their Facebook pages or Twitter feeds. "Multiply this activity 70,000 times," writes William MacAskill, a research fellow in moral philosophy at Emmanuel College, Cambridge, "and the result is that the ALS Association has received $3 million in additional donations....[A] win-win, right?" Not according to MacAskill, whose own nonprofit, Giving What We Can, champions the principles of the effective altruism movement. The problem, writes MacAskill,

is funding cannibalism. That $3 million in donations doesn't appear out of a vacuum. Because people on average are limited in how much they're willing to donate to good causes, if someone donates $100 to the ALS Association, he or she will likely donate less to other charities....

***

This isn't to object to the ALS Association in particular. Almost every charity does the same thing — engaging in a race to the bottom where the benefits to the donor have to be as large as possible, and the costs as small as possible. (Things are even worse in the UK, where the reward of publicizing yourself all over social media comes at a suggested price of just £3 donated to MacMillan Cancer Support.) We should be very worried about this, because competitive fundraising ultimately destroys value for the social sector as a whole. We should not reward people for minor acts of altruism, when they could have done so much more, because doing so creates a culture where the correct response to the existence of preventable death and suffering is to give some pocket change....

Before you get too upset, read the entire piece. (MacAskill is a thoughtful young critic who, like many other people in the sector, has grown impatient with the status quo.) Then come back here and tell us why he's wrong — or right.

For an entirely different take on this question, take a look at this recent post by Philanthropy Daily contributor Scott Walter, executive vice president of the Capital Research Center in Washington, D.C., which is unsparing in its criticism of effective altruism (and Peter Singer, who inspired the movement).

In a short post on the BoardSource site, Convergent Nonprofit Solutions' Tom Ralser looks at the important distinction between a donor and an investor.

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Grantees Sound Off About Philanthropic Funding System

August 15, 2014

MarcMaxson_GG_sweaterI believe that philanthropic foundations could make major progress in serving their constituents if they paid more attention to what grantees were saying about them. Not in the cozy pat-each-other-on-the-back love-fest way. I mean by listening to real, honest feedback.

Recently, we at Feedback Labs (as a neutral third party) decided to ask a group of twelve hundred organizations to publicly share stories about their experiences with funders, adopting our community storytelling approach to the task. That approach emphasizes open-ended narratives with a few follow-up questions, intermediation (people are a little more likely to say something negative if the boss isn't in the room), and confidentiality.

Sample Feedback

I selected these particular comments because the variety of issues addressed in them illustrates the importance of asking open-ended questions. In this case, the question was: "Talk about your experience approaching a grantmaking or funding organization that either did or did not grant you funding. What was the relationship like? Did you receive support from them?" (Feel free to add your own story to the collection here.) What follows are some representative highlights from the stories told by grantees about funders and the grantseeking process:

Comments from GlobalGiving partner organizations:

  • The process leaves little room to establish a relationship with a grantmaker because we're usually just asked to fill in a standard form and maybe attach a project summary and financial documents.
  • It was important for us to understand who the decision makers are. What are their priorities? And what aspects of the project are particularly appealing to the funder, given its vision and mission?
  • It was an unsolicited proposal, and we really didn't attempt to build any relationship with the foundation by writing to them or calling them up to ask where our proposal the previous year had fallen short. That really affected our chances of winning a grant.
  • We got to meet the organization through a mutual friend who had been following our work for years.
  • I was nervous when I sent the first email requesting support for a program in Nairobi. However, the funder responded positively and even made a trip to Nairobi to see the program first hand.
  • We waited endlessly for a decision on our proposal. One of the basic problems in dealing with a large CSR unit is that you have to keep following up and have a person dedicated to making sure that happens.

And here are some comments from smaller, emerging organizations not yet partnered with GlobalGiving:

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How Philanthropy Can Help Unaccompanied Child Refugees Now

August 13, 2014

Headshot_daranee_petsodTen-year-old Lucinda sits alone in a courtroom awaiting her fate. In front of her is a judge who will decide whether she is deported to her native Honduras. At the opposite table sits an experienced attorney advocating for her deportation. Her case will be argued in English, a language she does not speak. No one sits beside her.

Lucinda does not have an attorney. She does not have anyone to testify to the sexual abuse she suffered at the hands of her caregiver in Honduras, or to the psychological impact of that trauma and the ordeal she endured during her perilous journey to the United States. She has no expert witness to describe the non-existent child protection system or the rampant violence against women and girls in her home country. The burden of proof for her asylum claim rests entirely on her ten-year-old shoulders.

Driven by violence in Central America and Mexico, an increasing number of children like Lucinda are seeking refuge in the United States. Between 80,000 and 120,000 children are expected to arrive in 2014 alone, up from 6,000 in 2011. A growing number of these new arrivals are children fleeing some of the world’s most dangerous countries — the murder rates in Honduras, Guatemala, and El Salvador rank among the highest in the world; these are countries where it is not uncommon for gang violence to claim even the youngest lives. Many of these children have endured unspeakable forms of trauma on their journey north, and in immigration courts across the country, thousands of them — some as young as four and five — are appearing without legal representation.

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Weekend Link Roundup (August 9-10, 2014)

August 10, 2014

VeggiesOur weekly roundup of noteworthy items from and about the nonprofit sector....

Advocacy

On Gene Takagi's Nonprofit Law Blog, Michelle Baker, a San Francisco-based attorney, checks in with the second of two posts on the lag ins and outs of issue advocacy. (You can read the first post here.)

Civil Society

"One of the defining features of civil society...is that participation is voluntary," writes Lucy Bernholz on her Philanthropy 2173 blog. And "[i]f civil society claims a role in pursuing social justice than it has a special obligation to do two things - protect people's power to act and make sure that digital data aren't used to exacerbate existing power differentials.

Environment

Marketplace's David Brancaccio looks at the Sustainable Endowments Institute's Billion Dollar Green Challenge and online GRITS platform, which helps "universities take their operating cash or endowment, upgrade the energy efficiency of campus buildings, and get a bigger return in savings than the stock market would earn them."

Leadership

What kind of leadership skills do emerging nonprofit leaders need to succeed? Beth Kanter takes a look at two recent studies that "take a pass at answering that question...."

The Talent Philanthropy Project's Rusty Stahl has a good post on the handful of foundations that invest in nonprofit leadership.

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[Newsmaker] Paul Connolly, Director, Philanthropic Advisory Services, Bessemer Trust

August 05, 2014

At the turn of the twentieth century, great industrialists of the Gilded Age, men such as Andrew Carnegie, John D. Rockefeller, George Eastman and Julius Rosenwald, began in earnest to turn their attention to philanthropy. Controlling vast personal fortunes that grew larger by the day and ever-mindful of the social disruptions and widening income inequality that had come to characterize America, they began, in the words of historian Robert Bremner, "to found institutions capable of distributing private wealth with greater intelligence and vision than [they] themselves could hope to possess."

Institutions like the Carnegie Institute and Carnegie Corporation of New York, the General Education Board and Rockefeller Foundation, MIT and the Eastman School of Music, the Rosenwald Fund and Chicago's Museum of Science and Industry helped establish the template for organized philanthropy as we know it and, in the words of TIME magazine founder Henry Luce, helped make the twentieth century "the American century."

Today, a new economic revolution is roiling the planet, disrupting old ways of thinking and doing and contributing to levels of income inequality not seen since the 1920s. At the same time, a new generation of philanthropists, inspired by the example of Carnegie, Rockefeller and others, are leveraging their wealth, networks, and know-how to address seemingly intractable and urgent challenges.

Paul Connolly has had a ringside seat on the changing philanthropic landscape for almost twenty years – first as an officer and director at consulting firm TCC Group, where he oversaw the firm's capacity-building and nonprofit and philanthropy practices, and today as director of philanthropic advisory services at Bessemer Trust, a privately held wealth management and investment advisory firm. Through his writing (Navigating the Organizational Lifecycle: A Capacity-Building Guide for Nonprofit Leaders) and frequent thought pieces in sector-focused publications, presentations at the Council on Foundations' annual convenings and other national conferences, and travels as a trainer and facilitator, he has had his finger on the pulse of the growing and increasingly dynamic philanthropic sector in the U.S. and has helped shape its evolution.

PND caught up with Connolly earlier this month and asked him, among other things, about foundations' ability to move the needle on deeply entrenched social problems, the difficulty of measuring impact, and the generational dynamic in philanthropy.

Headshot_paul_connollyPhilanthropy News Digest: You joined Bessemer Trust last year after more than sixteen years at the consulting firm TCC Group, where you served in a variety of roles and established yourself as a social sector thought leader. Why the change?

Paul Connolly: While at TCC Group, I had the chance to work with many talented colleagues and remarkable clients who were deeply committed to the greater social good. The firm tripled in size while I was there, and I had the opportunity to help steer that growth and provide strategy, capacity building, and evaluation assistance to a burgeoning and stimulating mix of nonprofits, philanthropies, and corporate community involvement programs.

When Bessemer Trust approached me about this job, I felt ready for a new challenge, and it seemed like an excellent setting to positively influence social impact in a different way. In my new position, I am privileged to guide individual philanthropists as well as established foundations. And because we are in the midst of what some are calling a "golden age of philanthropy" – more foundations are being formed, major gifts are getting bigger, and the pace of the massive intergenerational wealth transfer is accelerating – Bessemer is a great place to make a meaningful difference. Plus, it's a growing firm with a stellar reputation that values the philanthropic advising function. So it seemed like the right job at the right place at the right time.

PND: Bessemer, which was established as a family office in 1907 by Henry Phipps, a co-founder of Carnegie Steel, today serves over twenty-two hundred families with more than $97 billion in assets. Do all those families include philanthropy in their wealth-management strategies?

PC: Virtually all our clients incorporate philanthropy into their wealth-management strategies in some way. The purpose, scope, timing, and form of their giving vary widely, depending on the client's financial resources, motivations, values, and family and business context. Some clients are active in charitable giving during their lifetimes, others prefer to endow a foundation or designate bequests as part of their estate planning, and many practice a combination of the two. In the same vein, certain individuals prefer recognition for their donations, while others prefer to remain anonymous. So, they employ different vehicles for giving to help them achieve their particular goals.

Bessemer has about $4.4 billion in assets under supervision associated with five hundred and fifteen family and independent foundations, endowments, and trusts that collectively award more than $220 million in grants annually. In addition, many of our larger clients have professionally staffed foundations that are not directly connected to our firm. Our clients also contribute extensively both through individual gifts and, increasingly, donor-advised funds, which are managed by Bessemer Trust, community foundations, or other entities.

PND: You mentioned a few of the different vehicles available for charitable giving. Is there a dollar threshold for which Bessemer recommends starting a foundation instead of contributing to a donor-advised fund?

PC: Due to the greater administrative costs incurred by foundations, we usually suggest a starting size of at least $1 million if the client intends to continue adding funds in the future. An ideal target for establishing a private foundation is somewhere between $5 million and $10 million.

PND: What do you tell clients who may be interested in giving not only money but their time?

PC: We are definitely seeing more and more clients who want to donate their time as well as their funds to nonprofits. Some are younger donors who grew up volunteering and want to continue providing hands-on support. Others are successful executives who are retiring, want to start a new career chapter devoted to civic engagement, and have lots of energy and wisdom to offer. A case in point is a client who sold her human resources company and is now devoting her time to providing pro bono assistance to a few nonprofits that are dedicated to helping veterans enhance their employment skills and secure stable jobs. As you might imagine, her industry knowledge and connections have proven extremely valuable to those organizations.

The key is to help clients clarify their goals and get them thinking about how they can most effectively give, and then help them find the right nonprofit match. Some clients derive the most satisfaction by providing direct voluntary service, such as preparing food in a soup kitchen or tutoring a student who is struggling in school. Others may want to contribute their expertise, leadership ability, and network access by serving on a nonprofit committee or board.

We also realize that when a prospective donor wants to provide pro bono assistance, the nonprofit benefiting from that assistance usually wants to cultivate the relationship so that over time the donor will provide financial support as well. With that in mind, we counsel our clients to clarify expectations around their volunteer roles, responsibilities, and time commitments, as well as the amount of money they might be expected to "give" or "get" to support the nonprofit financially.

PND: How, if at all, do generational dynamics affect your conversations with clients?

PC: Bessemer Trust is more than a hundred years old, and we work with multiple generations of families. Much of our work is facilitating discussion and decision-making among family members about their shared values and interests, as well as ways to engage future generations in philanthropy.

That said, we have seen certain shifts in families' approach to philanthropy. Some younger donors have a more engaged style, are skilled at leveraging their networks, and are more willing to take risks. They also may be more interested in causes like the environment, advocacy, and animal welfare. Recent research by 21/64 and the Johnson Center for Philanthropy has documented these generational changes in a compelling way.

In some cases, we've been able to help different generations discover common ground for their philanthropic interests, which can be a unifying force. We're currently facilitating such a dialogue with a family where the parents want to more actively engage their three adult children in the family foundation. We're guiding them to focus on areas of shared interest, such as their cultural and ethnic heritage and funding research for a disease that has affected family members personally.

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Weekend Link Roundup (August 2-3, 2014)

August 03, 2014

Gekko_on_vacationOur weekly roundup of noteworthy items from and about the nonprofit sector....

Advocacy

Michelle Baker, a San Francisco-based attorney, has a very good post on Gene Takagi's Nonprofit Law Blog about the do's and don'ts of issue advocacy from a regulatory perspective. It's the first of a two-part series, so be sure to bookmark it and check back later this week for part two.

Arts and Culture

Still not sure what "creative placemaking" is or why you should care? Not to worry. On the National Arts Strategies' Filed Notes blog Taylor Craig explains it all, with the help of a few friends.

Impact/Investing

In the Stanford Social Innovation Review, Manuel Lewin, head of responsible investment at Zurich Insurance Group, and Brian Smith, chief strategy officer at Population Services International, share highlights of a report jointly produced by their organizations that provides a framework designed "to help investors and nonprofits speak a common language, and better understand various financial models through which they can engage with each other."

International Affairs/Development

In Forbes, Andrew Cave looks at Bill and Melinda Gates' efforts to help bring financial services -- bank accounts, loans, insurance, etc. -- to the 2.5 billion people in the world who are "unbanked."

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