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1108 posts categorized "Philanthropy"

Is Grantmaking Getting Smarter?: An Update

November 20, 2014

Headshot_j_mccrayOver the past fifteen years, research by Grantmakers for Effective Organizations has demonstrated that certain grantmaking practices support nonprofits' capacity to achieve results. To track how these practices are changing, GEO conducts a national survey of staffed grantmaking organizations every three years. As we prepared to release the results of our most recent survey, I wondered: How would experts in nonprofit management interpret the results? To find out, I asked CompassPoint CEO Jeanne Bell, co-author of the reports Daring to Lead and Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, and Don Crocker, executive director and CEO of the Support Center, which advises nonprofits and foundations in the areas of leadership and executive transitions, board performance, and nonprofit/foundation effectiveness, to share their thoughts on our key findings as well as how funders can best support nonprofits to achieve more impact.

Long-term grants are inspirational. Multiyear support (grants of two years or longer without the need to reapply) is returning to pre-recession levels. Most funders now give at least some multiyear support. "Multiyear grants are powerful," says Bell. "If the foundation and the nonprofit are in sync around core programming, multiyear grants give you sustainability and predictability." Crocker agrees, adding, "Even if you look at small businesses and social entrepreneurs, they'll tell you it takes four or five years for the rubber to meet the road and for really good results to start emerging. I think multiyear grants are inspirational, in that they allow the nonprofit to have a greater sense of security."

Unrestricted support enables creativity and responsiveness. After being flat for many years, the average share of annual grantmaking budgets devoted to unrestricted support showed a small but meaningful increase (from 20 percent to 25 percent). Why is this important? As Crocker says, "General operating support opens the door to much more creative thinking, allowing nonprofits to be more nimble and a lot more responsive to things that have changed in their community and the needs of their clients."

Boosting leadership capacity requires a collective approach. More than a quarter of the funders surveyed reported an increase in the dollar total of their grants for capacity-building efforts, which include leadership development, governance, and evaluation capacity. "Nonprofits are collections of leaders, including development directors and program directors and policy directors — it's not just executives," says Bell. "The foundations that do it well not only pay for leadership development, they also act as ambassadors and champions for individual leaders as well as networks. That’s something special that foundations can do but typically government and major donors can't."

Funders need to "get in the zone" of listening to grantees and asking good questions. Over the past decade, we've seen a sea change in the way funders think about engaging nonprofits. GEO found that the majority of funders are now seeking feedback from grantees and asking for their input on key decisions. However, while our research revealed that funders believe they are open to discussing key financial issues, a recent >Nonprofit Finance Fund >study found that nonprofit leaders don’t believe funders really want to hear about their financial needs. The way funders set the table for these conversations is important. As Bell says, "I don’t think that most program officers ask the kinds of questions on the way into a grant that would lead an executive director or development director to think she had more than one option."

The power dynamic between grantmaker and grantee makes it difficult for nonprofit leaders to be totally open with their funders. "Given the power dynamics," says Bell, "the foundation representative would have to say, 'You're a strategic grantee; I want to hear your answer to the question. What's the most valuable grant I could make to you?'"

Funders can start to build stronger relationships with their grantees by admitting that they don’t have all the answers. As Crocker says, "You need to get in the zone of saying, 'I want to talk to you about what I see because I have some questions. But I’m also assuming there are a lot of things about your finances I just don't understand. If you could help me to understand it, I think I could be more supportive to you.'"

Supporting collaboration is an important role for funders. No matter what you call it — collective impact, leveraging networks, or movement building — collaboration is an idea whose time has come, and funders are asking themselves how they can better work with each other and support greater collaboration among their grantees. At the same time, while our research found that funders overwhelmingly agree it's important to collaborate with other funders, the majority say they never or rarely support the cost of collaboration among grantees. Bell and Crocker agree that funders need to cover the cost of collaboration.

What's more, they both agree that the key to a successful collaboration is letting the community drive the decision-making process. Bell gives an example from her own organization's work that is supported by grant funding: "We're doing work in the domestic violence field in California," she says, "and we're about to do some work in the youth racial justice space, and it will be the participants who will determine how that grant is deployed."

A time for reflection.We are making important progress in the way we support nonprofits. But we could be doing more — and better. Whether you are a funder or a grantseeker, we want to hear from you. What are the small steps you can take to ensure that your organization is having the right conversations about how to best support or model nonprofit success?

J McCray is chief operating officer at Grantmakers for Effective Organizations where he is responsible for strategic planning, financial management, internal learning, and field research on grantmaker practice.

5 Questions for…Ian Clark Devine, Board Member, Bellosguardo Foundation

November 17, 2014

In the last years of her long life, heiress Huguette Clark became one of New York society's most-whispered-about curiosities. Born in Paris in 1906 to 67-year-old William Andrews Clark, a wealthy Guilded Age businessman, and Anna Eugenia La Chapelle, Clark's second wife, young Huguette grew up in splendid luxury in Manhattan and counted among her friends and contemporaries some of her father's grandchildren, including Devine's grandmother. After her father died in 1925, the young heiress and her mother moved from his Upper East Side mansion to a nearby apartment on Fifth Avenue, where Huguette lived for much of the rest of her life. After a short-lived marriage ended in 1930, she turned to art and art collecting, kept up her French and Spanish, and developed a passion for dolls, dollhouses, and Japanese culture. As she grew older, she also became increasingly withdrawn and reclusive — so much so, that when she passed away in 2011 just two weeks shy of her 105th birthday, only a handful of people could say they had seen her in the last twenty years.

Clark's death sparked a flurry of interest in her long, mysterious life — and in the disposition of her will, which almost immediately was challenged in court by members of her extended family. After two years, the case was settled in the family's favor, with the bulk of her fortune, including Bellosguardo, her coastal estate in Santa Barbara, California, going to charity. Earlier this month, PND exchanged emails with Ian Devine about the case and the creation of the Bellosguardo Foundation, which will oversee the Santa Barbara property, including its furnishings, artwork, and Clark's extensive doll collection.

Headshot_ian_clark_devinePhilanthropy News Digest: At the time of her death, your great-grand-aunt's estate was estimated to be worth around $400 million and included expensive real estate in Manhattan, Connecticut, and California; paintings by the likes of Cezanne, Renoir, and Sargent; and, famously, her antique doll collection. The disposition of her estate was challenged soon after her death by twenty of her grandnephews, grandnieces, great-grandnephews, and great-grandnieces, including you. Why did the family feel it necessary to challenge the will, and what, in your view, were the issues at stake?

Ian Clarke Devine: The Clark family worried that Huguette's advisors were taking advantage of her. There were signs of financial exploitation, family access was denied, one of her advisors was a convicted sex offender. The plight of Brooke Astor was very much in our minds. Family members filed a guardianship petition in 2009 seeking an independent firm to manage her finances and an independent evaluator to investigate her care. Despite indications of improper fiduciary management, the petition was denied.

When Huguette died in 2011, two radically different wills emerged, written only six weeks apart — after she had refused to create a will for more than fifty years! There were irregularities with both wills and several ethically dubious provisions. Taxes hadn't been paid in years. Challenging the will was the only way to uncover the truth. In fact, subsequent depositions under oath produced evidence of actions and behavior even more shocking than we had imagined. To boil it all down, the professionals closest to our aunt took advantage of her emotional vulnerabilities for personal and institutional gain. The doctors failed to assess her mental health. The Clark family believed that the professionals involved had to be held accountable.

PND: The dispute recently was brought to a close with the help of the New York Attorney General's office and the New York Public Administrator's office. In broad outline, tell us about the terms of the settlement.

ICD: The probate litigation and the settlement confirmed the family's belief that Huguette was the victim of emotional and financial abuse at the hands of her advisors and caregivers. It vindicated our decision to challenge the will. Though it took an excruciatingly long time, the settlement was quite sophisticated and honored Huguette's wishes as best as they could be discerned. The family was strongly in favor of the outcome.

The most welcome result was that the Bellosguardo Foundation, which otherwise might have become a vehicle for the enrichment of certain advisors, now holds tremendous potential to benefit the Santa Barbara community and the art world at large. Bellosguardo will be a place of pride. Credit is due to the New York State Attorney General's office and its Charities Bureau for outlining the steps to make Bellosguardo a viable foundation and a vital new force in the arts. And the settlement's structure will allow other charitable organizations to benefit in the future. All good outcomes!

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Weekend Link Roundup (November 15-16, 2014)

November 16, 2014

Ice-ballsOur weekly roundup of noteworthy items from and about the nonprofit sector....

Education 

On the NPR-Ed site, Emily Hanford has a piece (the first in a four-part series) about how Common Core is changing the way reading is taught to kids. (The piece originally appeared as part of American RadioWorks' "Greater Expectations: The Challenge of the Common Core.")

Environment

On Friday, the Sierra Club released a statement from its executive director, Michael Brune, in response to an announcement, expected this week, that the United States will contribute $3 billion to the Green Climate Fund (GCF),  a new multilateral fund created "to help developing countries reduce climate pollution and address their vulnerabilities to the most dangerous effects of climate disruption."

Here on PhilanTopic, Gabi Fitz, director of knowledge management initiatives at Foundation Center, shares the results of a collaboration between IssueLab and the Oceans and Fisheries team at the Rockefeller Foundation to capture and share knowledge  about sustainable coastal fisheries management.

Impact/Effectiveness

In a post on Forbes, Jean Case, CEO of the Case Foundation, argues that pay-for-success models, although not a silver bullet, "hold the potential to illuminate what works and what doesn’t, and to optimize both delivery of service and tax dollars."

International Development

The mainstream media tends to focus on the bad news, but Africa is changing -- largely for the better, as this slide deck from Our World in Data shows.

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Growing the Field of Youth Philanthropy: A Funder’s Perspective

November 14, 2014

While working with young members of the Lumpkin Family Foundation as a program officer a few years back, I quickly realized I had two needs:

  1. age-appropriate resources to support younger members of the family (ages 16-21) in developing their own grantmaking process based on best practices in the field; and
  2. to connect these younger family members with other young people involved in their own family's foundation.

Youth_philanthropy_screenshotThrough the foundation's national membership association connections, I was able to connect with the Frieda C. Fox Family Foundation (FCF), and the young family members at FCF graciously agreed to meet up with the younger Lumpkin family members to share their experiences. That meeting served as a catalyst for a significant shift in the programmatic and grantmaking focus of the Frieda C. Fox Family Foundation to youth philanthropy. In 2012, I moved from the Lumpkin Family Foundation to FCF to help lead that effort, which today is known as Youth Philanthropy Connect (YPC), a youth-led initiative for young people between the ages of 8 and 21 who want to get involved in philanthropy work, with a focus on grantmaking.

Soon after I arrived, FCF began more broadly to reach out to other foundations that were actively engaging younger family members in their grantmaking, and we quickly developed a lengthy and diverse list of organizations that were active in this space. Through our outreach efforts, we learned that the heads of family foundations increasingly are engaging younger generations for succession planning and wealth transfer purposes; community foundations are engaging youth in grantmaking activities as a way to build the philanthropic capacity of the community; and private and public schools are incorporating community change efforts and grantmaking activities into their classrooms and afterschool programs.

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Traveling Toward Greater Impact

November 13, 2014

Headshot_julie_broomeAnyone who has ever traveled with me – even just across town – knows that I get lost easily. North becomes south, left becomes right. As such, I’ve developed a heavy reliance on maps to tell me where I am and to help me figure out where I'm going. Otherwise, I'll spend a lot of time confidently headed in the wrong direction. That's exactly the value I see in the maps and analysis of human rights grantmaking created by the International Human Rights Funders Group and Foundation Center. They, too, can help those of us in the field of human rights philanthropy establish where we are and think critically about where we are going.

Where are we now?

First, in comparing the maps on the Advancing Human Rights website, it appears that human rights funding increased from $1.2 billion in 2010 to $1.7 billion in 2011. However, an important factor in that increase is that an additional forty-plus funders began submitting their data to the project in 2011. When comparing "like with like" (only including the funders that submitted data for both years), we can see that funding for human rights increased by almost 8 percent.

The geographic distribution of the grants awarded also is interesting. In 2011, human rights funding in support of Eastern Europe, Central Asia, and Russia increased by 28 percent, while funding for the Middle East and North Africa increased by 33 percent. This increase may have been influenced by the Arab Spring in 2011. The initial benchmark research set means that, for the first time, we will be able to track philanthropy's response to the Arab Spring, as well as funding trends with respect to other regions, issues, and populations. This is an exciting development for our field.

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Delusional Altruism

November 12, 2014

Money_down_the_drainFoundations pride themselves on the good they do for others; that's the very nature and culture of philanthropy. However, in my fifteen years as a consultant who advises foundations, I've found that most foundations suffer from delusional altruism.

Delusional altruism is when you are genuinely trying to help people – but paying absolutely no attention to the operational inefficiency and waste that drains grantseekers or your own foundation of the human and financial capital necessary to accomplish your goals.

Let me give you three examples:

1. A foundation gives itself five weeks to approve a Request for Proposals (RFP) that it has already written, but gives grantseekers only three weeks to apply. Five different departments within a large national foundation each had a week to modify – or simply sign off on – an RFP. By contrast, each applicant had to decide whether to apply, decide whether to do so jointly with other invited applicants, develop the proposal concept (possibly in collaboration), write the proposal, and get written commitments of matching funding – all within three weeks.

2. A foundation evaluation director sends an RFP to 50 evaluators to conduct a $40,000 evaluation. The evaluation director had prequalified a “mere” 50 evaluators and therefore received an overwhelming volume of proposals that he had to sort through and vet. Then he had to determine finalists and interview them, all before he could make a decision and actually hire someone.This left him exhausted, overwhelmed, and behind on other projects. It probably took him six months, whereas the evaluation itself could have been done in that time. He and his associate likely spent half of the $40,000 project fee just in their own staff time.

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A Case Study in 'Sustainable' Knowledge Management

November 11, 2014

About a year ago, the Oceans and Fisheries team at the Rockefeller Foundation embarked on a new initiative focused on the challenges faced by small-scale fisheries worldwide and on improving the health and well-being of the people who are dependent on these threatened environments. Like any program officer worth his or her salt, the team started its decision-making and strategy-setting process with a couple of fundamental questions: 1) What do we already know about work being done in this field? and 2) How successful has that work been?

Rockfound_fisheries_report_coverBut what Rockefeller did to answer these questions wasn't so typical. With the encouragement of its own evaluation and learning team, along with the technical and methodological support of Foundation Center's IssueLab service and the issue expertise of IMM Ltd., the foundation supported a synthesis review of already existing evaluative evidence that drew on findings from both the academic and "gray" literature — the literally hundreds of evaluations and case studies that had already been done on the topic — to identify and describe twenty key factors believed to influence success in small-scale coastal fisheries management. Throughout the review, the researchers regularly engaged in conversations with Rockefeller's program team, helping to inform the team's developing strategy with existing evidence from the field. The intensive, rapid knowledge gathering effort resulted in a formal report.

After the report was completed, the team could have called it a day...but it didn't. One of the key reasons Rockefeller decided to work with us on this project was IssueLab's focus on capturing and sharing knowledge outcomes as a public good rather than a private organizational asset. Instead of just commissioning a literature review for use by a single organization, the foundation was interested in creating an openly licensed and public resource that anyone could use. The result is a special collection of the hard-to-find literature identified through the review, as well as an interactive visualization of the key lessons summarized in the report itself.

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Weekend Link Roundup (November 8-9, 2014)

November 08, 2014

GOP_waveOur (slightly abbreviated) weekly roundup of noteworthy items from and about the nonprofit sector....

Civil Society

Pooja Gupta, a writer at Harvard's Shorenstein Center on Media, Politics and Public Policy, reviews the findings of a 2014 study published in Psychological Science which found that Americans' trust in each other and their institutions (the military excepted) has hit all-time lows in recent years. According to the authors of the study, "Trust in others and confidence in institutions [are] key indicators of social capital," but that kind of "capital"

was lower in recent years than during the Watergate scandal of the early 1970s; the Iran hostage crisis and "national malaise" of the late 1970s and early 1980s; the height of the crime wave in the early 1990s; the Clinton impeachment of the late 1990s; the September 11, 2001, terrorist attacks; and the financial crisis and recession of the late 2000s....

Climate Change

Not that the new Congress will have any interest, but here are ten facts about climate change from the UN's new climate report that should give everyone pause.

Fundraising

The host of this month's Nonprofit Blog Carnival, fundraising consultant Pamela Grow, has issued a call for submissions. As has been the case for the past few years, this month's roundup is looking for submissions that detail how nonprofit organizations around the world are creating an "attitude of gratitude" (i.e., celebrate the donors who make their work possible). Here's how to submit:

  1. Write a blog post, or choose a recent post that fits the theme.
  2. Submit the post via email to: nonprofitcarnival@gmail.com – be sure to include your name, your blog's name and the URL of the post (not your blog homepage).
  3. Get your post in by the end of day on Sunday, November 23. You can check back on Monday, November 24, to see if your post made the cut!

Global Health

The hysteria around Ebola in the U.S. may be fading, but the ignorance and misconceptions that fueled it in the first place are still very much with us, Angélique Kidjo, a singer and songwriter from Benin, reminds us in in an op-ed in the New York Times.

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5 Questions for...Moukhtar Kocache, author, ‘Framing the Discourse, Advancing the Work: Philanthropy at the Nexus of Peace and Social Justice and Arts and Culture’

November 03, 2014

Headshot_moukhtar_kocacheEarlier this year, the Working Group on Philanthropy for Social Justice and Peace issued a report, Framing the Discourse, Advancing the Work: Philanthropy at the Nexus of Peace and Social Justice and Arts and Culture, that highlighted the synergy between the arts and social movements around the globe — and the general reluctance among funders to fund arts initiatives with a social justice component, and vice versa.

Recently, PND spoke with Moukhtar Kocache, the report’s author, about some of the challenges foundations face in funding "social-change-through-arts" initiatives and what can be done to change the existing dynamic. Kocache is an independent civil society, nonprofit, and philanthropy consultant whose areas of expertise include arts and culture, media, gender equity, social justice, and cultural activism and change. From 2004 to 2012, he was a program officer in media, arts, and culture at the Ford Foundation.

Philanthropy News Digest: What are the arts uniquely able to do in situations where liberties have been eroded and freedoms suppressed that more traditional advocacy activities are unable to accomplish?

Moukhtar Kocache: The arts are ubiquitous wherever human beings come together in common cause. I have yet to see, in our own time, a social movement that did not sing, dance, paint, make theater, and record its activities. The arts are closely associated with our notions of identity, self-determination, and healing. The challenge is how to develop the strategies, mechanisms, and tools needed to get to the next level, the level at which targeted interventions that amplify the role of the arts in social change processes are conceived and implemented. So, rather than ask what the arts can do that traditional advocacy can't, I would suggest thinking about questions such as, What forms of art are most suited for a particular type of social change cause? And at what stage and through what process can the arts help people coalesce around and amplify their response to a specific social issue or reality?

Today, artistic creation and artistic processes are extremely responsive to the challenges confronting all of us as citizens of a global village; rarely these days do we see art that does not, in some way, address a social or political issue that resonates with a broader constituency. Indeed, the arts often play a role before, during, and after periods of social change, informing and galvanizing communities and even societies through the various stages of social transformation. So, it's important to think more broadly about how we as a society understand the realm of art, because that will help us tailor and design social interventions with more nuance and precision.

Consider, for instance: civil rights-era protest songs; an artist-organized campaign to shut down a supermax prison; young women learning to make and screen short films about their marginalized role in society; a community working with artists and architects to redesign and rehabilitate public housing; victims and perpetrators of genocide engaged in making theatre together; children creating art in refugee camps; and so on. It's a short list, but it demonstrates how diverse activities that fall under the rubric of "art" can be, and how, at various times and through specific mechanisms, these activities help communities to heal, feel proud, build social cohesion, create new narratives, and mobilize for or against an issue.

PND: You write in the report that, despite growing interest in "the symbiotic relationship between art, self-determination, cultural democracy and social justice," arts funders and social justice funders remain reluctant to support "social-change-through-arts" initiatives. What are the reasons for that reluctance?

MK: Arts funders would say, "We do not fund social change," while social justice funders would say, "We don’t fund the arts." But this binary dynamic has meant that a wealth of learning and opportunities for impact has been missed and that a lot of grassroots creativity in marginalized communities is not being harnessed for social change. Part of the problem has to do with limited resources and capacity at the funder level where, for many grantmakers, supporting something new often is seen as too experimental, too risky, and/or a distraction from more "serious" and conventional funding strategies. Foundation staff also tend to feel ill equipped to venture into fields where they have little expertise, even though most people understand, at both a visceral and intellectual level, the power of the synergy between the two types of funding. I believe, however, that with time, foundations will become more versed in both the arts and social justice traditions, and that that will lead to more knowledge and a greater willingness to experiment among funders on either side of the funding divide we are talking about.

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Weekend Link Roundup (November 1-2, 2014)

November 02, 2014

Your-vote-counts-buttonOur weekly roundup of noteworthy items from and about the nonprofit sector....

Communications/Marketing

On her Social Marketing blog, communications consultant Julia Campbell has some advice for the American Red Cross, which again finds itself in the middle of a controversy over its response to a disaster (Hurricane Isaac, Superstorm Sandy).

Environment

In the fifth part of a seven-part series on the State of the Union offered by Stanford University, Farrallon Capital founder and philanthropist Tom Steyer and former U.S. Secretary of Energy Stephen Chu talk about the environment and climate change. (Running time: 1:33:37)

On the Al Jazeera America site, author and freelance journalist Nathan Schneider (Thank You, Anarchy: Notes From the Occupy Apocalypsereports on the return of an old concept, the commons.

Fundraising

In a link-filled post on her blog, Beth Kanter explains how #GivingTuesday, a global day dedicated to giving back, can help your organization reach Generation Z donors (kids born after 1995).

International Affairs/Development

In a post on the GrantCraft blog, Andrew Grabois, manager of corporate philanthropy at Foundation Center, breaks down trends in funding for Ebola relief efforts in West Africa.

Bill Foege, former head of the Centers for Disease Control and a Presidential Medal of Freedom honoree, argues on the Humanosphere blog that the public health response in the U.S. to Ebola "has been far better than we could have expected, given the cutbacks in the public health infrastructure of recent years [and] by the private care system sometimes making decisions based on cost or insurance status rather than health needs."

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Spotlight on Philanthropy in Colombia

October 31, 2014

Headshot_AFEMaria The Asociación de Fundaciones Empresariales (Association of Corporate and Family Foundations) is a Colombia-based association that works to promote accountability among corporate and family foundations in the country, encourage the sharing of best philanthropic practices, and act as a collective voice for its members in order to achieve greater impact and contribute to social equity and sustainable development. Recently, the Foundation Center's Marie DeAeth spoke with Maria Carolina Suarez Visbal, AFE's executive director, about the impact of current and historical events on the country's philanthropic sector, the challenges grantmakers face, and the opportunities they have to move Colombia forward.

History

After a civil war in the mid-20th century, Colombia experienced more than fifty years of violence at the hands of the Revolutionary Armed Forces of Colombia (FARC), an "irregular military organization" that is still active in certain rural areas of the country. The country also has had to deal with violence perpetrated by drug cartels that help drive the global cocaine industry. "Violence, corruption, guerrillas, paramilitary groups, drug cartels — all are present in Colombia and have definitely affected the different sectors of the economy, including the philanthropic sector," says Sra. Suarez. "At the moment, the country is engaged in a peace-building process in which we all have to be prepared to accept many changes. Nonprofits are not immune to this, and, indeed, they have an important role to play in a post-conflict situation."

The problems in rural areas are a big challenge for those engaged in philanthropic work, Suarez notes, particularly as the government is trying to negotiate a peace settlement with the FARC and civil society in the country remains focused on the process. Peace-building in rural areas is important to many AFE members, and they, almost uniquely in Colombia, have the human and social capital, knowledge, and capacity to empower and strengthen rural communities. As Suarez notes, "These challenges confirm that we must go into territories beyond where the foundation's family is from or where the foundation's parent corporation is located."

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Making Philanthropic Investments Last: The Role of Financial Sustainability

October 30, 2014

Headshot_schneider_kidron_300x600Launched in 2010, the Jim Joseph Foundation's Education Initiative has supported the development and expansion of eighteen degree and certificate programs as well as leadership institutes at Hebrew Union College-Jewish Institute of Religion (HUC-JIR), the Jewish Theological Seminary (JTS), and Yeshiva University (YU).

The foundation provided the resources needed for program development, staffing, student tuition assistance, and marketing/recruitment activities. The investment was substantial – each institution received $15 million over a period of up to six years. As part of its independent evaluation of the initiative, American Institutes for Research (AIR) assessed not only how well the three grantees delivered these programs, but how they planned to financially sustain their programs into the future after the foundation's investment wound down.

Financial sustainability requires careful planning, typically using a dynamic document that is reviewed and revisited periodically. Such a document – the financial sustainability plan – describes strategies to contain costs and to cover them through fundraising and program revenues.

Informing Financial Sustainability Plans Through Break-Even Analysis

A common tool in financial planning is break-even analysis, which identifies the circumstances in which costs and revenues are balanced. To help Jim Joseph Foundation Education Initiative grantees, we developed a program-level Break-Even Analysis Calculator, allowing program administrators to project revenues and expenditures by changing variables such as tuition, numbers of students, and staffing levels. This interactive tool can be used to:

  1. Identify the resources required to implement a program, including personnel, facilities, equipment, and materials, whether paid for directly or contributed in-kind, and subsequently to calculate program costs.
  2. Explore ways to reduce costs.
  3. Identify the effects of different levels of tuition and scholarships.
  4. Calculate fundraising needs and demonstrate to potential funders why their help is needed.

Review of Financial Sustainability Plans

We created benchmarks for reviewing the financial sustainability plans submitted by each institution. The four criteria described below are based on the assumption that financial sustainability is a process, not an end. In other words, although the process aimed at achieving financial sustainability may not yet be completed, the financial sustainability plan contributes to a road map that programs can follow into the future.

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New Philanthropy Center, Fund for 2025 Respond to Funders’ Needs

October 23, 2014

Headshot_michael_remaleyPhilanthropy New York, a "regional association of grantmakers with global impact," announced on Monday that it plans to establish a new Philanthropy Center at the "crossroads of the world" – Times Square. We also announced early commitments of more than $2 million to our Fund for 2025 campaign, an initiative to grow the capacity of the tri-state region's philanthropic sector. To that end, PNY aims to raise at least $2.5 million to underwrite its next decade of growth, including the new center, technology upgrades, expanded programming, and a public policy fellowship program.

The Philanthropy Center isn't some sort of shiny new apple of our collective eye but a concrete response to what we've heard from our members about the needs of the region's philanthropic community. At the end of last year, Philanthropy New York members, board, and staff wrapped up work on a Strategic Plan for 2014-2016, a plan that represents both a continuation of our mission and substantially revises the strategies we employ in pursuit of that mission. We believe that for our members to be fully positioned to tackle complex issues at the city, national, and international levels, PNY must be able to provide an appropriate level of support. We aim to do that by adding new programs, increasing member engagement options, and growing our public policy work;  improving our technology infrastructure; and developing fee-based business lines that further diversify our revenue streams and enhance our long-term sustainability.

As we start to plan for the move, I can't help but think it's another example of past-as-prologue.  In 2004 – a time when PNY occupied a small office with a windowless conference room and offered much more limited programming hosted at the offices of our member organizations – we faced the end of our lease and took a leap of faith, sub-letting more space in a Flatiron District building from the Foundation Center. Before that move, we typically produced fewer than a hundred meetings a year.  After the move, with a lean staff and better facilities, we typically produced a hundred and forty to a hundred and seventy programs a year. Having more-than-adequate, dedicated meeting space has made a huge difference in our capacity to be a convening organization and a center for cross-sectoral activities.

Now it's time to move again. Even as more and more information is disseminated electronically, we have considerable anecdotal evidence from our members, other affinity groups, and foundations across the country that there is a need for a central meeting hub for the philanthropic community in New York City. With that in mind, we envision a facility that is roughly the size of our current space but has smaller offices for staff; larger, more flexible meeting spaces; and technology options that enable us to grow the digital audience for certain types of PNY programs. The new center also will allow us to provide our members with opportunities to host their own convenings in state-of-the-art facilities. 

We recognize and appreciate the fact that the field of philanthropy has entered a new era of increased visibility and greater expectations. With the Fund for 2025 and our new center in Times Square, Philanthropy New York is positioning itself it to meet the philanthropic community's needs for years to come.

Michael Remaley is senior vice president of communications and public policy at Philanthropy New York.

 

Archiving Simply: How FACT Prioritized Sharing

October 20, 2014

Headshot_diane_feeneyOver its eighteen years of existence, the French American Charitable Trust focused its grantmaking on strengthening community organizations in the United States and France. (We are a bi-national family.) So when we made the decision to spend down the foundation in 2012, we soon realized we had boxes and boxes of files to sort through – not a task on my to-do list I was looking forward to!

Fortunately, a colleague suggested I get in touch with Brown University, which has a program on community organizing and was looking for additional resources. The librarian at Brown asked me to send her a complete accounting of our files, which included documents ranging from board meeting notes to program assessments to grantee reports. She was interested in all of it, and her staff was able to sort through the files, catalog and archive them, and make them available to students and faculty. What a relief!

But we had more to do. Some of our documents were more relevant to the philanthropic community, and we didn't want those to only be available in Providence, Rhode Island.

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Profiles in Compassion: Sister Rosemary Niyurumbe

October 13, 2014

Headshot_sister-rosemary-nyirumbeRecently, I attended a screening of the documentary "Sewing Hope," an hour-long film about the efforts of Sister Rosemary Niyurumbe, a Catholic nun living in Uganda, to help girls and young women abducted by the Lord's Resistance Army, the cult-like militia led by Joseph Kony that was the subject of the viral "Invisible Children" campaign in 2012.

Narrated by the actor Forrest Whitaker, the film grabs you from the first frame. In harrowing detail, it describes how girls from rural villages were abducted from their homes and forced to commit unspeakable acts of violence against their own family members in order to prove their loyalty to the LRA. Many of the girls were raped and tortured, with Kony himself responsible for dozens if not hundreds of rapes, and many became pregnant and ended up bearing children. Girls that were able to escape often found themselves ostracized by family members and friends who viewed them as damaged goods.

Hearing about these girls, Sister Rosemary, the director since 2001 of the Saint Monica's Girls Tailoring Center in Gulu, Uganda, and one of TIME's 100 Most Influential People for 2014, realized she had to do something. Before long, she had opened doors of the center to as many of these girls as she could find and set about teaching them how to sew and make dresses, handbags, and other goods, imparting skills that can help them provide for themselves and secure a desperately needed measure of independence. Displaced children were placed in school and given a new lease on life, away from the horrors of Kony's atrocities.

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