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1097 posts categorized "Philanthropy"

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. [1]. 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.

1. Key Informational Elements. We saw the individual financial sustainability plans as facilitating communications and planning within each grantee institution. To that end, we expected each plan to articulate the program’s rationale – how does it fit into the vision of the institution in its efforts to support the field of Jewish education? How consistent is the program with the institution's view of current needs and anticipated future trends? Similarly, we expected each plan to identify how long the program should be continued (we do not assume every program will last forever), and we wanted to see a timeline for anticipated fundraising activities. In our feedback to grantees, we recommended that their plans include a detailed budget, budget assumptions, and analysis (e.g., break-even analysis) that spells out the calculations and assumptions on which current decision-making is based.

2. Feasibility. It is critical that a financial sustainability plan is feasible. For example, if the break-even analysis identifies a break-even point but the circumstances under which this is to be achieved are unreal, the analysis serves no purpose. To make the case for the viability of long-term plans, authors should include as many specifics as possible. Projections of philanthropic contributions should include names of funders, projected amounts, and, at the very least, an overview of future fundraising plans. Projections of tuition revenue should include enrollment estimates, market demand assumptions, and description of strategies to align tuition discounts with measurable student needs (rather than blanket across-the-board tuition discounting policies). Finally, plans should include an assessment of organizational capacity (e.g., the availability of qualified staff with relevant expertise), which is key to successful implementation.

3. Need. Higher education institutions sometimes choose to run programs at a loss as a service to the field or as a marquee program that can promote institutional capacity and reputation. But financial sustainability plans highlight the costs of such a strategy, allowing institutional leaders to better judge the level of their investment and the return. To ensure that such decisions are based on valid assumptions and consensus among chief officers in the institution, an effective financial sustainability plan should address the need for the program along multiple dimensions.

4. Commitment. Programs can be sustained over the long term when institutional leadership (president, provost, dean) are committed to the program through the allocation of funds, sharing of infrastructure, and active participation in targeted fundraising efforts. Additionally, financial sustainability planning benefits from use of proven strategies and processes for ongoing review and revision of the financial sustainability plan.

Supporting the Continuation of Higher Education Programs in Jewish Education

HUC-JIR, JTS, and YU developed financial sustainability plans that took into account multiyear projections of costs and revenues. This involved hard work and time — and many of the questions we asked them to address were new to leaders at those institutions who had not often been held accountable to rigorous financial benchmarks. All three grantees were torn between offering their very best to the field of Jewish education and making promises they were likely not going to be able to keep within the limitation of their financial resources. That is understandable.

But spending money and time to ensure the financial health of programs over the long term is something that grantees need to do. Crafting implementation plans that can be sustained over the long run is a new and difficult task with which grantees must begin to grapple. And it is something the Jim Joseph Foundation is committed to in order to make sure its philanthropic investments produce long-term results.

Dr. Mark Schneider is a vice president and an institute fellow at AIR. Dr. Yael Kidron is a principal researcher at AIR.

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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Weekend Link Roundup (October 11-12, 2014)

October 12, 2014

Flock-of-migrating-cranesOur weekly roundup of noteworthy items from and about the nonprofit sector....

Communications/Marketing

On the Kauffman Founders School blog, Neil Patel explains why email marketing  trumps social media.

Although he's primarily talking about news, Robinson Meyer, an associate editor at The Atlantic, explains how social media has become the new press release, with lessons for all of us.

Giving Pledge

According to this short Bloomberg TV segment, Mexican billionaire Carlos Slim Helú, the second richest man in the world, will not be signing the Giving Pledge anytime soon.

Impact/Effectiveness

In the second installment of a two-part series on the Markets for Good site, Peter York, the founder/CEO of Algorhythm, an "impact science organization that combines social science, outcome measurement, next generation analytics and technology to place highly accurate and actionable insights into the hands of social change agents,"argues that it's "time for the social sector to try out the method that medicine, psychology, business, economics and ecology have been using for a long time: the observational cohort study (OCS)."

Crain's Chicago Business has a good article about a group of investors led by Chicago billionaire J.B. Pritzker that plans to invest $16.9 million in "an innovative financing scheme that allows Chicago to expand pre-kindergarten programs for more than 2,000 low-income children over the next four years." According to the Chronicle of Philanthropy, this is the fifth social impact bond to be announced in the U.S.

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5 Questions for...Bekeme Masade, Executive Director, CSR-in-Action

October 10, 2014

As part of a new International Data Relations series that engages with executives, leaders, and country experts on philanthropy and the social sector from around the globe, Sue Rissberger, liaison for Africa and Asia in the International Data Relations department at Foundation Center, spoke with Bekeme Masade, executive director of CSR-in-Action in Nigeria. In the Q&A that follows, Masade shares her perspective on the philanthropic sector in Nigeria and explains how CSR-in-Action, a social business networking platform and advisory enterprise in Lagos, is helping to drive collective social action in the country -- and Africa more generally.

Foundation Center began working in Nigeria in 2013, and Bekeme has played a pivotal role in providing local expertise to inform the center's initiatives. One of those initiatives is a new Web portal, set to launch this fall, designed to highlight the efforts of philanthropy in Nigeria and provide resources for those interested in helping to build the capacity of the country's social sector.

Headshot_bekeme_masadeSue Rissberger: How is the philanthropic and nonprofit sector defined in Nigeria?

Bekeme Masada: The philanthropic sector in Nigeria is broadly comprised of actors who give and receive goodwill. Organizations who receive goodwill include orphanages and institutions that support the physically and mentally challenged and, more recently, the "empowerment" of vulnerable groups. These actors are often supported by corporate organizations as part of their corporate social responsibility efforts. Religious organizations in Nigeria, such as churches and mosques, are an example of actors distributing goodwill by channeling their resources and efforts to support social causes, including the refurbishment of schools and the provision of potable water by donating bore holes to their host communities.

The nonprofit sector in Nigeria, on the other hand, is mostly defined by foundations and nongovernmental organizations, with the latter often supported by businesses as part of their corporate social responsibility efforts. It is common practice for businesses in Nigeria to support a specific cause by financially supporting an NGO, or sometimes a public institution like a school. More often than not, though, there is no clear distinction between NGOs and foundations, as smaller foundations often engage in the same kinds of activities as NGOs. In fact, only a handful of Nigerian foundations are engaged in grantmaking activities – primarily those owned by wealthy individuals and a few that are directly owned by a for-profit business.

SR: There are now five Funding Information Network partners located in four cities in Nigeria: Abuja, Lagos, Kano, and Port Harcourt. What is your vision for how these Funding Information Network partners can service civil society organizations in Nigeria?

BM: These partners will serve as primary sources of information on philanthropy for Nigerian civil society organizations within their respective geopolitical zones. We envisage a system where CSOs use the Funding Information partners to identify grantmaking organizations, develop their proposal writing techniques, and apply for international or local grants. A primary challenge to the effective usage of these partners, though, is publicity. The degree to which partners in the network are utilized will depend on the amount of publicity they receive.

We believe there is an information gap with respect to available grant opportunities in the teaching/thought leadership space. Knowing this, Funding Information Network partners could be of service to actors beyond the stratum in which civil society organizations traditionally operate.

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Charting New Terrain With Foundation Maps

October 08, 2014

Headshot_Dara_MajorAll the buzz around "big data" seems to have ratcheted up the social sector's expectations for data… and awareness of the gaps in our data infrastructure. But what most of us are looking for is "good data" – data that enables us to reflect, to ask new and different questions, to make better decisions. "Good data" challenges our assumptions and helps us see something we hadn't seen before.

The social sector has long struggled to collect, make sense of, and share data in ways big and small – internally, within and among foundations and nonprofits, as well as externally.

The data collection part has been particularly challenging, given the lack of resources, data standards, and taxonomies that facilitate not only smart data gathering from individual organizations but that pave the way to using data in comparative settings and across multiple organizations.

The sense-making part has been just as challenging in the absence of shared frameworks for understanding that data. Bespoke efforts by a single funder or group of funders may serve to advance their efforts in the short run but often fail in the long run to create accessible, field-level insights.

With the launch of Foundation Maps, however, Foundation Center is showing us how all these challenges are connected – as well as the enormous value to be gained if we are more intentional about building solutions to problems collectively.

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E-What?

October 06, 2014

Headshot_joyce_whiteIt wasn't so long ago that I first heard the term "big data." At the time, I didn't give it much thought. After all, I'm the executive director of a regional association of grantmakers – there are lots of research facilities, academic centers, affinity groups, and data geeks out there collecting and analyzing data in our field. What could I possibly add to the conversation?

Now I know – and not only do I want you to know, I want you to join me in spreading the word about Foundation Center's eReporting Program. Simply put, regional associations of grantmakers can play a critical role in building the information infrastructure that supports a more vibrant and effective nonprofit sector. We can help to harness the grants data of nearly six thousand funders and centralize it in a way that makes it more readily available to inform every aspect of our work – from collaborations, to research, to due diligence, to strategic investments. And we can help fill in the picture of what is currently happening in our sector – still a surprising need in 2014, given our expectations for the availability of real-time information in just about every other aspect of our lives.

For me, the light bulb started to glow with a research project on giving to communities of color by Oregon funders. Working with Foundation Center and a group of local funders who were interested in understanding how – or whether – their funding reflected the demographic changes happening in our region, we produced a report, Grantmaking to Communities of Color in Oregon. In the process, we realized we didn't have the inputs needed to create great outputs. Working primarily with two-year-old tax forms that had grant descriptions like "For the library project," we soon realized that while the report marked an important step based on the data we had, it didn't necessarily provide a complete picture. And because many funders weren't coding their grants, other entities were drawing their own conclusions about where funding was being directed and deciding, as best they could, who was benefiting from the grant. Not exactly a best practice.

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Weekend Link Roundup (October 4-5, 2014)

October 05, 2014

Harvest2008Our weekly roundup of noteworthy items from and about the nonprofit sector....

Current Affairs

The New York Times has an excellent Q&A, complete with timelines, maps, and links to other resources, on the Ebola outbreak in West Africa -- and the chances of the virus gaining a toehold and spreading in the U.S. 

And the Washington Post has a disturbing, deeply reported story about the failure of the world's health organizations to respond to the outbreak in a timely and effective fashion.

Environment

According to an item in Al Jazeera America, a new report finds that global populations of fish, birds, mammals, amphibians, and reptiles fell 52 percent between 1970 and 2010, far faster than previously thought. Based on the World Wildlife Fund's bi-annual "Living Planet" survey, the report also found that earth has crossed three (out of nine) "planetary boundaries" — biodiversity, carbon dioxide levels, and nitrogen pollution from fertilizers — beyond which lie "potentially catastrophic changes to life as we know it."

Innovation

Nell Edgington has a nice roundup of social innovation reads from September, including posts by the Evelyn and Walter Haas, Jr. Fund's Ira Hirschfield, the Hewlett Foundation's Daniel Stid, and Carly Pippin of Measuring Success.

Nonprofits

In a post on the GuideStar blog, Jacob Harold, the organization's president/CEO, revisits the Lake Washington Declaration, a set of principles that informs an emerging movement aimed at building "a data-driven information infrastructure that provides all actors in the social sector with the insight they need to inform their decisions."

On his Nonprofit Management blog, Eugene Fram shares some excellent tips for boards looking to onboard a new chief executive.

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Most Popular PhilanTopic Posts (September 2014)

October 02, 2014

The leaves are turning, days are getting shorter, winter's closing in. Still plenty of time, though, to catch up with the most popular posts here on PhilanTopic in September. Have a post you'd like to share with our readers? Drop us a line at mfn@foundationcenter.org.

What have you read/watched/listened to lately that surprised, delighted you, or made you think? Share your finds in the comments section below....

Eleanor Roosevelt and Data Post-2015

October 01, 2014

Headshote_angela_haricheTwo weeks ago, I was down with the flu AND jetlagged, so all I could manage to do in the evenings was get under a blanket and watch all fourteen hours of "The Roosevelts" on PBS. I thought it was riveting and the timing was perfect. It has been a particularly busy time for us at Foundation Center and there have been an inordinate amount of meetings and conferences around the annual meeting of the UN general assembly. Happily, most of the people sharing a table with me at these events had also been watching "The Roosevelts." We all admitted it was nice for once to discuss something else other than the grind during the lunches and coffee breaks!

So, it was no surprise when Kathy Calvin, president of the United Nations Foundation, said at a recent Ford Foundation event, "Channel your inner Eleanor Roosevelt post-2015." I think that was my best tweet all week. But what does it mean? Well, Eleanor certainly was a force. In fact, she was the driving force behind the Universal Declaration of Human Rights and was able to move the needle on things in the face of incredible resistance. And "post-2015" is about what comes after the Millennium Development Goals effort comes to an end next year.

The event brought together leaders from philanthropy, the UN, business, and civil society to talk about philanthropy and the role of the sector in the coming years. Brad Smith, president of Foundation Center, and Helena Monteiro from WINGS (Worldwide Initiative for Grantmaker Support) convened a session that focused on the data and knowledge needed to a) get a better grip on what we know and don’t know about funding for global development goals; b) how to get an accurate picture of development progress; c) how to build standards and trust so working together isn't so hard; d) how to climb the mountain of definitions when so many cultures (both organizational and geographic) name things differently; and e) how to remember that we are talking about people's lives here. It was noted during the session that ten years ago nobody would have wanted to attend a session on data!

So what came out of it?

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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.

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'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:

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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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