1589 posts categorized "Philanthropy"

Philanthropy's Under-Investment in Holding High Finance Accountable: A Gamble We Can’t Afford

October 17, 2018

Monopoly_top_hatTen years ago, President George W. Bush signed into law the Troubled Asset Relief Program, or TARP, authorizing $700 billion in federal funding to buy troubled assets from banks deemed to be in danger of failing as a result of the subprime foreclosure crisis.

A lot has changed since then, but one thing has remained the same: progressive philanthropy continues to under-prioritize efforts to hold the financial industry accountable.

It's a choice that risks undermining the headway progressive foundations are making on issues of inequality and wealth building. Placing big bets on policies designed to lift up low- and moderate-income communities while failing to address the accountability of financial institutions is a gamble we cannot afford to take — not least because it puts at risk the very people we are trying to serve.

American households lost $16 trillion in wealth in the years after the 2007-08 financial crisis. And while some experts estimate that Americans have regained $14.6 trillion, or 91 percent, of those losses in the decade since, the collapse affected different segments of society unequally, with the gains just as unequally distributed. In other words, both the crash and the recovery increased inequality in America.

The impact on African Americans was especially profound. Nearly 8 percent of African-American homeowners lost their homes to foreclosure in the years after the crisis, compared with only 4.5 percent of white homeowners, and between 2007 and 2010 African Americans saw their retirement accounts lose 35 percent of their value. Indeed, according to the National Association of Realtors, African Americans lost fully half their wealth as a result of the financial crisis.

It's not just the likelihood of future financial crises that should give philanthropic leaders pause; it's also the fact that an under-regulated and unaccountable financial industry will continue to target communities of color and low-income communities with sketchy products and put vulnerable households at risk.

The payday lending industry is one example: the average payday loan, $300, costs the borrower $450 in fines and fees. And if it's not the payday industry preying on low-income individuals, it's car title loan companies, usurious overdraft fees, or predatory mortgage lending.

Philanthropic funding in support of efforts to hold the financial sector accountable is most helpful in advance of a crisis, not in the midst of or after one. Progressive grantmakers and grantees should be working to prevent the next crisis and gaming out what they can do when and if it happens. We need to move faster and more effectively to mitigate the effects of the next crisis, and acknowledge that it could happen sooner than we expect.

With adequate philanthropic investment, we could shape a financial sector that works to help low- and moderate-income households build and protect their wealth. That we have not isn't for lack of ideas: there are efforts already underway to create affordable small dollar loan programs, new and smart affordable mortgage models, and state banks like the one currently being debated in New Jersey.

When the last financial crisis hit, there wasn't a lot of nonprofit infrastructure in place focused on mortgage and financial sector issues. People's Action, the nonprofit I direct, organized the largest street mobilizations during the crisis with the aim of demanding accountability, from the financial sector and its regulators, and some measure of restitution for homeowners, workers, and retirees. Initially, we subsidized this work through general operating funds. Similarly, the campaign to win the Wall Street Reform and Consumer Protection Act of 2010 (more commonly known as Dodd-Frank), which was led by Americans for Financial Reform, had a budget of $1.3 million. That's the same amount the financial sector was spending every day to defeat the bill.

A handful of philanthropic organizations answered the call, including the Arca Foundation, the Panta Rhea Foundation, and Atlantic Philanthropies. But once the worst of the crisis had passed (and the financial reform bill had been signed), consistent funding in support of stricter regulation of the financial industry largely dried up (with the important exception of the Arca Foundation).

Unfortunately, the work we need has barely begun. Experts have predicted that housing bubbles in many U.S. cities will cause mass displacement as the wage-to-housing cost gap reaches unsustainable levels. New lending schemes that sound eerily similar to many of the subprime lending scams are being widely advertised. Non-bank lenders, who now comprise the bulk of the mortgage market, are not subject to the same oversight as traditional banks and are growing like kudzu.

Now is the time for progressive philanthropy to engage in a serious conversation about how it can support efforts to strengthen financial regulation. With all three branches of government controlled by the GOP, Wall Street and Republicans are free to mischaracterize and roll back the protections that are keeping the titans of Wall Street from crashing the economy again, including an attempt to exempt 80 percent of banks from the Home Mortgage Disclosure Act (which requires banks to disclose who they are making and denying loans to) and to erase common-sense tax rules for corporations and billionaires.

Because we in the nonprofit sector don't have their resources, we must combat the regulatory rollbacks and irresponsible policy making with good organizing and strategic communications. With the ten-year anniversary of the big bank bailout upon us, it's a good time to question why this work continues to be under-supported, and what we can do to change that.

George_goehl_for_PhilanTopic George Goehl is a community organizer and executive director of People's Action, whose work in the lead-up to the Occupy Wall Street movement played a critical role in the passage of the Dodd-Frank financial reform package and a $26 billion mortgage relief settlement for communities and homeowners.

Weekend Link Roundup (October 13-14, 2018)

October 14, 2018

105499618-4ED5-BL-HurricaneMichaelV2-101018.600x337A weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Climate Change

As the global climate continues to warm, there's a "material difference" between 1.5 degrees C of warming and 2 C degrees. Kelly Levin, a senior associate with the World Resources Institute's global climate program, looks at some of them. And Adele Peters, a staff writer at Fast Company, suggests that holding warming to the former, while difficult, might not be impossible.

According to a poll conducted by researchers from Yale, George Mason University, and Climate Nexus, a majority of voters in North Carolina post-Hurricane Florence are worried about climate change (60 percent) and think it's appropriate to talk about the issue when disaster strikes (55 percent). HuffPost's Jeremy Deaton reports.  

Disaster Relief

Hurricane Michael, one of the most powerful storms ever to strike the continental U.S., hammered the Florida Panhandle before carving a path of destruction across Georgia and North Carolina. We're tracking institutional pledges and commitments to relief and recovery efforts here. And Fast Company has put together a list of fifteen things you can do to help the storm's victims.

Education

On her Answer Sheet blog, Kevin Welner, a co-director of the Schools of Opportunity project and director of the National Education Policy Center at the University of Colorado, and Linda Molner Kelley, a co-director of Schools of Opportunity and director for outreach and engagement at the University of Colorado, look at how William C. Hinckley High School in Aurora, Colorado, used a restorative justice approach to change its culture.

Giving

As we head into the holiday season, families and friends should think about allocating some of the money they planned to spend on gifts to a commonly determined cause, writes philanthropy consultant Bill DeBoskey. "Imagine the result," adds DeBoskey, "if each of us pledged to donate to a worthy cause just 10 percent of what we would otherwise spend on holiday gifts, food and candy."

Impact Investing

Forbes contributor Aislinn Murphy has a good Q&A witf LinkedIn co-founder Reid Hoffman, who reveals that he has put $1.5 billion of his considerable fortune into impact investments.

Nonprofits

Nonprofit AF's Vu Le is another leader in the social sector for whom the confirmation of Brett Kavanaugh to the Supreme Court was a kind of come-to-Jesus moment.

Over at Forbes, the site's panel of nonprofit experts weighs in on the things that the best nonprofit blogs have in common. 

Is your organization one of the best nonprofits to work for. If the answer is yes, the NonProfit Times would like to hear from you.

Giving Tuesday is just around the corner, and Beth Kanter and Allison Fine have collected fifteen #GivingTuesday myths nonprofits should be aware of.

Philanthropy

On the Center for Effective Philanthropy blog, CEP president Phil Buchanan applauds the announcement of Kathleen Enright, longtime CEO of Grantmakers for Effective Organizations, as the new president and CEO of the Council on Foundations. But in a philanthropic infrastructure landscape that has "changed dramatically" since the early days of GEO and CEP, what role should the council play? asks Buchanan. Check out his post to learn what he thinks that role should be.

And in the Stanford Social Innovation Review, Alison Corwin, senior program officer for sustainable environments at the Surdna Foundation, argues that when it  comes to building the capacity of frontline and grassroots leaders, funders first need to "build [their] own individual and institutional skills to receive and incorporate the insight these leaders and communities provide."

That's it for this week. Got something you'd like to share? Drop us a note at mfn@foundationcenter.org.

Tracking Hurricane Michael Disaster Relief

October 12, 2018

Updated: October 17, 2018 - 4:45 PM ET

Hurricane Michael first showed up in early October as a low-pressure area in the western Caribbean. After meandering for a few days, it began to organize itself and then intensified rapidly as it moved past Cuba into the Gulf of Mexico, becoming a tropical depression on October 7 and a Category 1 hurricane just twenty-four hours later. By Tuesday, October 9, it had strengthened into a Cat 3 with winds of more than 120 mph, and by the time it smashed into the Florida Panhandle near Mexico Beach on Wednesday, October 10, it was a Cat 4 with sustained winds of 155 mph.

For many, the unprecedented nature of the storm — the most intense tropical cyclone to strike the U.S. since Andrew in 1992, the third most intense storm in terms of barometric pressure ever to make landfall in the U.S., and the strongest hurricane to strike the Florida Panhandle on record — was disturbing, its rapid intensification and the path of destruction it carved across four states cause for alarm, coming as it did just days after the UN's Intergovernmental Panel on Climate Change released a report warning of dire consequences if greenhouse gas emissions are not cut dramatically over the next decade. As of Wednesday afternoon, a week after the storm made landfall, the death toll had risen to thirty-two, including fifteen in Florida, and estimates of the damage were holding steady at between $8 billion and $30 billion.

As we did with Florence, Foundation Center will be tracking institutional pledges and commitments for relief and recovery efforts here on PhilanTopic. To make sure your company or organization's pledge have been included in the total, or for questions about methodology or sources, please contact Andrew Grabois, manager of corporate philanthropy at Foundation Center.

Mexico Beach destruction

(Photo credit: Reuters)

TOTAL: $20,910,000

Organization Type (pledges and commitments)

Corporate Direct Giving/
Company-Sponsored Foundations
$17,710,000 29 orgs.
Private Foundations $0 0 orgs.
Public Charities $3,200,000 5 orgs.

Top Recipients (Total Received to Date)

1. Unknown Recipient(s) $12,550,000
2. American Red Cross
(national)
$4,755,000
3. Florida Disaster Fund $1,600,000
4. Multiple Recipients $1,100,000
5. United Way Worldwide $375,000
6. Samaritan's Purse $250,000
7. Volunteer Florida $250,000
8. American Red Cross, North Florida Region $50,000

Source: Foundation Center & Center for Disaster Philanthropy

Download the Data

For the latest coverage of the philanthropic sector's response to
Hurricane Florence, check out Philanthropy News Digest.

Philanthropy Delivers an Outcome — and Its Name Is Brett Kavanaugh

October 07, 2018

Kavanaugh_swearing_inWhen the U.S. Senate voted 50-48 on Saturday to confirm Brett Kavanaugh to the Supreme Court, it was a significant victory for the Federalist Society, and for the foundations that support the organization. It also represented something — an outcome and real impact — that philanthropists of all persuasions crave, and it was achieved through, that’s right, general support grants.

Widely credited for writing the playbook that has guided the Trump administration's judicial nominations strategy, the Federalist Society, by any measure, has been wildly successful. Since Donald Trump's inauguration in January 2017, the U.S. Senate has approved two of his picks for the Supreme Court and some fifty lower court judges. With an additional hundred and fifty appellate and district court seats to be filled, the administration, with the help of the Federalist Society, is on track to have put in place nearly a quarter of all active judges by the end of 2019.

The organization describes itself as a

group of conservatives and libertarians interested in the current state of the legal order. [The Society] is founded on the principles that the state exists to preserve freedom, that the separation of governmental powers is central to our Constitution, and that it is emphatically the province and duty of the judiciary to say what the law is, not what it should be….This entails reordering priorities within the legal system to place a premium on individual liberty, traditional values, and the rule of law. In working to achieve these goals, the Society has created a conservative and libertarian intellectual network that extends to all levels of the legal community....

As a 501(c)(3) organization, the society receives tax-deductible donations from individuals, but foundations contribute roughly one-quarter of its annual funding. Since 2006, 127 foundations have made $39 million in grants to the organization, 53 percent of which has come from five foundations: the Lynde and Harry Bradley, Templeton, Mercer Family, and Sarah Scaife foundations, in addition to the Searle Freedom Trust. Nearly half of those grants have provided general operating support to the organization, giving it the freedom to use those resources to further its goals without donor-imposed restrictions.

As social investing and effective altruism — with their focus on outcomes, impact, and results — increasingly challenge so-called traditional philanthropy, general operating support has become somewhat passé among those who see themselves leading the charge. Unlike the Federalist Society, most nonprofit organizations receive little, if any, general support. Overall, 80 percent of the resources granted by U.S.-based foundations are restricted, requiring grantee organizations to spend valuable time on creating theories of change, strategic plans, and elaborate output and outcomes measurement systems in order to prove their impact to funders.

But who would disagree that shaping the philosophical orientation of the highest court in the land, not to mention the rest of the federal judiciary, is anything but hugely impactful. Scale? Check. Significance? Check. Sustainability? Check. From where I sit, the foundation supporters of the Federalist Society seem to have achieved something monumental by going back to basics: find an effective organization that shares your goals and provide it with steady, unrestricted, long-term support so it can do its work.

How I feel about the Kavanaugh confirmation, the polarization it represents, and what it means for the country is beside the point, and not something Foundation Center has a position on. For our information to be trusted, we believe we need to avoid taking positions on matters of public policy. But we are fascinated by the what data, research, and analysis can tell us about what works, and does not, in philanthropy. Today, it’s telling me that traditional philanthropy is alive and well and changing the world.

(Photo credit: AP)

Bradford K. Smith is president of Foundation Center. In his previous post, he looked at philanthropy in the war zone.

Weekend Link Roundup (October 6-7, 2018)

0930-bks-kabaservice-superJumboA weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Advocacy

"[W]e are in a season when the electorate has the obligation to choose our future," writes Richard Marker on his Wise Philanthropy blog. "And the philanthropy world has an obligation to weigh in on many of these matters. We have everything at stake in re-asserting a stable and civil society, eliminating poverty, rejecting racism and xenophobia, and urging systemic equity. The challenge for us is to not be intimidated by those who would limit our outspokenness under the guise of accusing us of partisanship. Of course, there are legal limitations to what we can lobby for and what lobbying we can support. But our rights, I would say even our obligations as funders, to advocate for constitutional rights, civil society, and equity for all are virtually unlimited."

Children/Youth

On the Robert Wood Johnson Foundation's Culture of Health blog, Martha Davis, a senior program officer at the foundation, shares six recommendations for communities that are developing collaborative, place-based approaches aimed at ensuring that all children have a solid foundation of safety.

In a Q&A on the Case Foundation blog, Justin Cunningham, the millennial co-founder of Social Works, discusses what he and his colleagues are doing to empower youth in Chicago.

Giving

The team at GiveWell has made a number of changes to the organization's cost-effectiveness model.

Grantmaking

In a post on the GrantCraft blog, Jen Bokoff, director of stakeholder engagement, announces the release of the latest GrantCraft guide, Deciding Together: Shifting Power and Resources through Participatory Grantmaking, which was created in partnership with researcher/writer extraordinaire Cynthia Gibson.

Nonprofits

On the GuideStar blog, Lisa Keitges and Ryan Grosso of Orr Associates, Inc. share some good advice with respect to board transitions.

In his latest, Vu Le has some advice for nonprofit professionals who have become jaded and cynical about "the Nonprofit Industrial Complex."

Philanthropy

The Stanford Social Innovation Review, in partnership with the National Committee for Responsive Philanthropy, has launched a new series focused on "power in philanthropy" with posts by Kathleen Enright, president and CEO of Grantmakers for Effective Organizations ("Power, Privilege, and Effectiveness: Are Funders Connecting the Dots?"), and Luz Vega-Marquis, president and CEO of the Marguerite Casey Foundation ("The Power of Family: From Poverty to Agency to Unity").

On the Center for Effective Philanthropy blog, Jennifer Wei, organizational effectiveness officer at the William and Flora Hewlett Foundation, argues that a "handful of foundations offering general operating support to nonprofits is not even close to being enough" and that the field needs "many more funders — a critical mass — to provide general operating support grants and recognize the full cost of running an organization. Only then," she adds, "[will] nonprofits have enough unrestricted dollars to truly use those funds flexibly, prioritize organizational capacity needs, and strengthen organizational health."

Here on PhilanTopic, Foundation Center president Brad Smith argues that general operating support provided to the Federalist Society over the years by conservative-leaning foundations played was a significant factor in the elevation of Brett Kavanaugh to the Supreme Court.

The team at HistPhil winds down its forum on Paul Brest and Hal Harvey's Money Well Spent with a post by Erica Kohl-Arenas (The Self-Help Myth: How Philanthropy Fails to Alleviate Poverty) that offers a brief history of strategic donor behavior. And in the forum's final post, Brest and Harvey respond to the comments of forum contribtutors.

And after two years of work, the renovation of the Ford Foundation's landmarked building on Manhattan's East Side is almost complete. Darren Walker, the foundation's president, explains how the building, newly renamed the Ford Foundation Center for Social Justice, "will be a unique asset for champions of social justice across sectors and geographies...in the U.S. and globally."

That's it for this week. Got something you'd like to share? Drop us a note at mfn@foundationcenter.org.

Philanthropy and Cyber-Security  

October 01, 2018

CyberSecurity-796x532With more than a trillion dollars flowing last year from donors and government agencies to grantees in the United States alone, online thieves have discovered fertile hunting ground. In the three years since hackers stole usernames, passwords, IP addresses, and other account data from some 700,000 nonprofits that used the Urban Institute’s online tax filing system, cyberattacks have only gotten more clever, and the stakes higher.

To thwart hackers, organizations in the philanthropy space need to focus on both common security practices and their special vulnerabilities, from the bottom to the top of the organization.

Foundations and nonprofits have the same security concerns as any business, but they also have particular needs based on their mission-driven orientation compared to, say, a retailer or bank. "You often have part-time or volunteer employees, and they like to be helpful," says Mark Walker, knowledge management and technology officer at the Jessie Ball duPont Fund. "And many philanthropic workers wear multiple hats, which means the person responsible for watching over security may not have time to be as thorough as they'd like."

Philanthropy often involves large transfers of money between organizations or people who don't interact daily. That gives hackers an opportunity to trick inexperienced employees who are unfamiliar with how cyber-crooks operate. "They'll contact you with a sense of urgency to act," says John Mohr, chief information officer at the MacArthur Foundation. "If the president of your foundation asks you to wire money quickly, you might not stop to wonder if it's really her."

Continue reading »

Weekend Link Roundup (September 29-30, 2018)

September 30, 2018

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

Corporate Social Responsibility

As we've seen after other natural disasters recently, U.S. corporations and companies are stepping up to help the folks in the Carolinas who've been affected by flooding caused by Hurricane Florence. On a related note, Business Insider's Chelsea Greenwood has compiled a list of the ten companies that gave the most to charity in 2017.

The Forbes Business Development Council shares some good advice for small business looking to be charitable. 

Economy

Sso-called gig work promises a measure of flexiblity and independence that traditional jobs don't. But the pay is lousy, and people are starting to figure that out. A new report from the JPMorgan Chase Institute offers three sobering conclusions about the gig economy. Christopher Rugaber reports for the AP.

Health

How can we reverse the obesity epidemic? Washington Post contributor Tamar Haspel shares six commonsense suggestions.

International Affairs/Development

The world has made excellent progress in reducing poverty over the last twenty-five years, write Bill and Melinda Gates in an opinion piece for the New York Times. But thanks to "the unfortunate intersection of two demographic trends," that progress could stall, or even be reversed, if appropriate action is not taken.

Nonprofits

In Forbes, Ben Paynter shares findings from a new report issued by Fidelity Charitable which suggest that nonprofits should be doing more to court entrepreneurs as donors.

On the Guidestar blog, Becca Bennett and Jordan Ritchie offer some guidelines designed to help nonprofits get the most from their boards.

It's a crazy world we live in, and sometimes the best way to respond to it is to give ourselves a break. Social Velocity's Nell Edgington explains why it's important and what you can do to defeat that voice in your head which keeps whispering, "Don't even think about."

Continue reading »

Weekend Link Roundup (September 22-23, 2018)

September 23, 2018

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

Communications/Marketing

"Anyone with a desire to manipulate opinions...knows that our digital dependencies make it easier than ever to do so through supposedly trustworthy institutions," writes Lucy Bernholz on her Philanthropy 2173 blog. What does that mean for nonprofits? "If your communications strategy still assumes that 'hey, they'll trust us — we're a nonprofit' or 'hey, this is what the data say,' " then it's time for your organization to "reconsider both what you say, how you say it, how you protect what you say, and your expectations and responses to how what you say gets heard and gets used."

Democracy/Public Affairs

In a new post on its website, the Community Foundation Boulder County looks at the work of Common Cause to ensure an accurate, representative census count in 2020.

On the Glasspockets blog, Janet Camarena, director of transparency initiatives at Foundation Center, chats with Jennifer Humke, senior program officer for journalism and media at the John D. and Catherine T.  MacArthur Foundation, about how foundation support for participatory media can strengthen American democracy.

Disaster Relief

Roughly 70 percent of the money and resources donated after a disaster like Herricane Florence goes to immediate response efforts, but recovery from such a disaster requires long-term investment. (Just as the folks in Puerto Rico.) Is there a better way to do disaster relief? asks Eillie Anzilotti in Fast Company. And while you're at it, check out our Hurricane Florence dashboard, which is tracking the private institutional response to the storm.

International Affairs/Development

The latest edition of the Commitment to Development Index, which ranks twenty-seven of the world's richest countries by how well their policies help improve lives in the developing world, has Sweden edging out Denmark (which led the index last year) as the top performer. The Center for Global Development has the details

In his latest, Nonprofit Chronicles blogger Marc Gunther piggybacks on ongoing assessments of a Catholic Relief Services direct-cash-transfer program in Rwanda to remind people that scale does not always equal impact.

In advance of this year's meeting of the UN General Assembly, the Rockefeller Foundation is asking folks to weigh in on what they think is the most solvable of the Sustainable Development Goals. 

Continue reading »

What's New at Foundation Center Update (September)

September 22, 2018

FC_logoHurricane season is upon us, and we'll be regularly sharing data here on PND with you about where funding for rebuilding is going. Grace Sato from our knowledge services team will also be speaking about disaster funding along with special guests from philanthropy on Tony Martignetti's radio show later this month. We've been working on sharing data and knowledge about other timely topics as well:

Projects Launched

  • We released a new report, The State of Global Giving by U.S. Foundations: 2011-2015. The report is the latest in a decades-long collaboration between Foundation Center and the Council on Foundations focused on analyzing trends in international grantmaking by U.S. foundations and is the tenth jointly published report since the collaboration began in 1997. In addition to a detailed look at trends by issue area, geographic region, population group, and donor strategy, the analysis also relates these trends to key events and developments, including the launch of the Sustainable Development Goals campaign, the emergence of Ebola in West Africa, repeal of the global gag rule, and the increasing legal restrictions faced by civil society organizations in countries around the world. Check out features in FastCompany and Alliance magazine, and this Slate Money podcast!)
  • Just in time for the midterms, our Foundation Funding for U.S. Democracy site has a new look, making it easier to navigate from the funding tool to the IssueLab research collection to a collection of infographics. Check it out at foundationcenter.org.
  • It's Nonprofit Radio Month! The third episode of Nonprofit Radio Month at Foundation Center aired September 21 and was focused on building relationships with family foundations. The episode features Tony Martignetti in conversation with our most popular fundraising expert, Senior Social Sector Librarian Susan Shiroma; Stuart Post, executive director of the Meringoff Family Foundation; and a Meringoff Foundation grantee, Read Alliance executive director Danielle Guindo. Check it out, and join us every Friday in September from 1:00-2:00 pm ET for more Nonprofit Radio.
  • Foundation Center Northeast (NY) will host Arts Month in October, featuring a variety of panels, programs, and networking opportunities for artists and arts organizations.

Content Published

In the News

What We're Excited About

  • Our president, Brad Smith, was named to the 2018 NPT Power & Influence Top 50.
  • CF Insights has launched a new publication on CEO professional development.
  • Foundation Center has a robust portfolio of custom training for organizations (and/or grantees of foundations). Now is the time to invest in building the capacity of your staff/grantees. Email us at fctraining@foundationcenter.org for more info.
  • On September 25, in partnership with GlobalGiving and GuideStar, Foundation Center will launch BRIDGE (Basic Registry of Identified Global Entities) information as open data, making it easier to identify and share information on social sector entities around the world.

Upcoming Conferences and Events

Our staff will be attending these upcoming events:

Services Spotlight

  • 158,719 new grants added to Foundation Maps in August, of which 17,063 grants were made to 2,059 organizations outside the U.S.
  • Update Central is back in Foundation Directory Online Professional! Register for monthly alerts to ensure you're up-to-date on grantmaker leadership changes and new foundations.
  • New data-sharing partners: Bennelong Foundation; Buhl Regional Health Foundation; Community Foundation for Monterey County; Connecticut Health Foundation, Inc.; English Family Foundation; LA84 Foundation; Light a Single Candle Foundation; Perpetual Trustees; SumOfUs; Woodward Hines Education Foundation; and Wyoming Community Foundation. Tell your story through data so we can communicate philanthropy's contribution to making a better world — learn more about our eReporting program.
  • Eighteen new organizations have joined our Funding Information Network in 2018, including the Puerto Rico Science Technology and Research Trust, First Community Foundation Partnership of Pennsylvania, and the Roswell Public Library in Georgia.

Data Spotlight

  • As the country gears up for the midterms, we're looking at who's funding U.S. democracy. Did you know that more than 3,000 funders have made grants totaling $1.7 billion in support of civic participation? Learn more at foundationcenter.org.
  • Funders have granted nearly $400,000 in 2018 to organizations working in Burundi, the Democratic Republic of Congo, and Rwanda. Learn more about funding for this region at equal-footing.org.
  • We completed custom data searches for the Midwest Center for Nonprofit Leadership and the Executives’ Alliance for Boys and Men of Color.

If you found this update helpful, feel free to share it or shoot us an email. (And I'm curious: Did you read through to the end? If you did, tweet your favorite Foundation Center resource to @fdncenter with the hashtag #FCLove and you’ll be entered to win some swag!) I'll be back next month with another update.

Jen Bokoff is director of stakeholder engagement at Foundation Center.

Achieving Racial Equity Through Cross-Sector Partnerships

September 20, 2018

Peopleincircle600Mitch Landrieu, the former Mayor of New Orleans and recipient of the 2018 JFK Profiles in Courage Award for his decision to remove four Confederate monuments from that city, noted on accepting the award that "[c]enturies-old wounds are still raw because they were not healed right in the first place. Here is the essential truth. We are better together than we are apart."

Historically, the failure to increase fairness and equity in America through cross- sector collaboration and public-private partnerships represents a complete failure at the "systems level." Fifty years of effort by government, educational and advocacy groups, corporate diversity programs, and consultants, not to mention intense media focus on the issue, have failed to make a substantial impact.

The fact is, tackling racial equity is hard, the structural and policy issues complex. As an African American, the issues of income inequality and progress on the corporate diversity front are of keen interest to me. Seeking to answer the question "What does good enough look like?", I recently spoke with more than two dozen leaders from the nonprofit, government, and business sectors and discovered that there is broad consensus that much more needs to be done to address racial inequity in America.

Public-private partnerships that pool resources and expertise and facilitate broad community support are one way to do that. The decision by Congress to include, as part of the Tax Cuts and Jobs Act of 2017, $1.6 billion in tax incentives over the next ten years to create Opportunity Zones for private investment in distressed communities is the latest attempt. While the social sector is slowly coming around to the idea that the private sector can be a force good, however, new "playbooks" are required if we hope to see meaningful change.

Unfortunately, the racial inequality debate too often resembles the debate over climate change. Most people concede that the long-term consequences of leaving the problem unaddressed would be devastating, but getting people to agree on the root causes of the problem is impossible. Despite overwhelming evidence of continued discriminatory practices in education, health care, housing, hiring, and the criminal justice system, not to mention the emergence of a field of study focused on the psychology of racial bias, many Americans remain in denial. In fact, in some areas, the data suggest that the problems of discrimination and racial bias are getting worse.

Economic Impacts

In a joint study entitled "The Competitive Advantages of Racial Equity" (32 pages, PDF), FSG and PolicyLink estimated that the elimination of racial wage gaps in the U.S. economy would boost Gross Domestic Product (GDP) by $2 trillion, or 14 percent. In other words, sticking with the status quo represents a huge cost to society.

Similarly, the 2018 edition of the National Urban League’s "State of Black America" report includes an "Equality Index" that measures the status of blacks compared to whites. On a scale of 1 to 100, the 2018 index finds that blacks on average capture 72.5 percent of the American economic pie (compared to 100 percent for whites), earn 58 percent of what whites earn, and have 4 percent of the wealth that whites have.

Continue reading »

A Conversation With Dee Baecher-Brown, President, Community Foundation of the Virgin Islands

September 18, 2018

Scenes of catastrophic flooding caused by Hurricane Florence are a painful reminder of the 2017 Atlantic hurricane season, one of the deadliest and most destructive on record. After an earlier-than-usual start, the season took a turn for the worst in August when Harvey became the first major hurricane since 2005 to make landfall in the U.S., submerging large swaths of the Houston metro area and southeastern Texas. Then, in September, Irma became the first Category 5 hurricane to impact the northern Leeward Islands, including the U.S. Virgin Islands and Barbuda, which was flattened, before making landfall in the Florida keys with sustained winds of 130 mph. A few weeks later, Maria became the first Category 5 hurricane on record to strike the island of Dominica, causing catastrophic damage there, before striking Puerto Rico and leaving that U.S. territory a shambles.

Recently, PND spoke with Dee Baecher-Brown, president of the Community Foundation of the Virgin Islands, about the progress made in the year since Irma and Maria pummeled the islands and what donors in a disaster situation can do to balance the urgency of immediate needs with longer-term recovery goals and objectives. A full accounting of the donors who stepped up to help the Virgin Islands in the wake of the hurricanes will be included in CFVI's year-end report.

Headshot_dee_beacher-brownPhilanthropy News Digest: It's been a year since Hurricanes Irma and Maria pummeled the Virgin Islands. Now we’re watching as Florence, another powerful Atlantic hurricane, brings catastrophic flooding to the Carolinas. What are your thoughts as you watch footage of the destruction and displacement caused by Florence?

Dee Baecher-Brown: My first thought is concern. Many of our friends and family are in harm's way, and we're hoping for the best. We don't want anyone to have to experience what the Virgin Islands experienced with Irma and Maria. As the extent of the damage caused by the storm becomes clearer, we just want the folks in the Carolinas to know that we are there for them, because we know firsthand what a difference the outpouring of concern and support in the days immediately following those storms meant to us.

PND: Take us back to weeks just before Irma and Maria hit the Virgin Islands. Was your community as prepared as it could have been?

DBB: You know, that's something we've discussed many times over the course of the last twelve months. Obviously, two category 5 storms in a two-week period was unprecedented, and even though we got a little tired of that word, it does capture something people sometimes forget — namely, that it's hard to prepare for something that hasn't happened before. And the fact that we are small, fairly remote islands in the Caribbean didn't help matters.

That said, I felt CFVI was as prepared as we could have been. We had spent the last twenty-five years supporting the thoughtful, gradual growth of our community, and in terms of our own capacity we had arrived at a point where we had solid financial systems in place and were working with an amazing network of community organizations — organizations that, in my opinion, were key to our being able to help after the storms hit. In September, for example, just days after Maria hit, we were already making grants to our partners, and we were able to do that because we knew who was out there, we knew the kind of work they would be doing, and we knew they needed our support. So, yes, I felt we were as ready as we could be for something that had never happened before.

Continue reading »

Tracking Hurricane Florence Disaster Relief

September 15, 2018

Updated: October 12, 2018 - 4:30 PM ET

After churning across the mid-Atlantic as a major Category 3/4 hurricane, Florence weakened as it neared the U.S. mainland, finally making landfall early Friday morning as a Cat 1, with sustained winds of 100 mph, near Wrightsville Beach, North Carolina. With a storm surge of more then ten feet reported in some areas of the state, the still-powerful, slow-moving storm was expected to drop biblical amounts of rain and cause extensive flooding across the Carolinas over the weekend. As of Saturday afternoon, Bloomberg was reporting that the storm had already dropped two feet of rain across southeastern North Carolina, "submerging cities...and threatening the large and environmentally precarious hog industry," while knocking out power for hundreds of thousands of people in both North and South Carolina. As of Saturday, the death toll from the storm had risen to forty-three.

Foundation Center and the Center for Disaster Philanthropy will be tracking the private institutional response to Florence over the coming days and will post updated totals, dashboard style, here on PhilanTopic. To make sure your company or organization's pledge has been included in the total, or for questions about methodology or sources, please contact Andrew Grabois, manager of corporate philanthropy at Foundation Center.

Florence-from-space

(Photo credit: Reuters)

TOTAL: $53,657,000

Organization Type (pledges and commitments)

Corporate Direct Giving/
Company-Sponsored Foundations
$41,101,000 76 orgs.
Private Foundations $5,250,000 4 orgs.
Public Charities $5,306,000 8 orgs.

Top Recipients (Total Received to Date)

1. Unknown Recipient(s) $15,976,000
2. American Red Cross (national) $10,640,000
3. Hurricane Florence Response Fund
(Foundation for the Carolinas)
$5,100,000
4. WE Care Fund
(Wells Fargo employee assistance fund)
$3,000,000
5. Delivering Good $3,000,000
6. North Carolina Community Foundation Disaster Relief Fund $1,425,000
7. Feeding the Carolinas $1,000,000
8. Good360 $1,000,000
9. United Way Hurricane Florence Recovery Fund $625,000
10. Salvation Army $600,000

Source: Foundation Center & Center for Disaster Philanthropy

Download the Data

For the latest coverage of the philanthropic sector's response to
Hurricane Florence, check out Philanthropy News Digest.

Impact Investing and Donor-Advised Funds

September 11, 2018

Inv.env.650pixAs interest in (and assets dedicated to) impact investing grows, institutional investors, foundations, and philanthropists alike are looking for an entry point into the rapidly growing field. At the same time, growing numbers of social entrepreneurs are looking to savvy investors and high-net-worth individuals as a potential source of funding.

Both groups have identified a compelling intersection of interests in the form of donor-advised funds (DAFs) that specialize in impact investment management and distribution. Charitable assets in donor-advised funds totaled $85 billion in 2017, and awareness of DAFs has grown significantly over the last five or six years. In fact, today there are three times as many donor-advised funds in the U.S. as there are private foundations.

While still just a fraction of the total, a handful of impact-focused donor-advised funds are seeking to bridge what Ayesha Khanna of the Points of Light Foundation calls "the pioneer gap" — by which she means a lack of funding for early-stage impact ventures, supply and distribution constraints, growing demand for expertise and new talent, and the role of partnerships as a lever for scale.

Thanks to the still-nascent but growing philanthropic impact infrastructure built by organizations such as RSF Social Finance, Tides Foundation, ImpactAssets, and others, savvy donors are finding it easier than ever to make impact investments in social enterprises and early-stage social entrepreneurs. Here are six things they are learning along the way:

DAFs can multiply the impact of their philanthropic dollars: Grants are a critical tool for social change, but once grant dollars are deployed, they are gone. Capital that is deployed to an impact investment — either as a loan, equity, or debt — has the potential to be redeployed to meet changing needs.

Donors appreciate that as investment gains are returned to a donor-advised fund, those gains can be recycled into future investments or deployed as grants.

Continue reading »

Weekend Link Roundup (September 8-9, 2018)

September 09, 2018

6-500x500A weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Economy

It's coming — whether we like it or not. Automation is likely to force a third of American workers  to switch occupational categories by 2030, write James Manyika, Manisha Shetty Gulati, and Emma Dorn in the Stanford Social Innovation Review, with the largest disruption occurring among middle-income workers without a college degree. "[U]nhampered by quarterly earnings calls or the voting cycle," philanthropy can — and will need — to step up. Mantika, Gulati, and Dorn suggest four areas where it can do so.

Education

In The New York Times Magazine, Sarah Mosle reports at length about the many challenges public school administrators face in "finding effective teachers, retaining them and helping those who need to get better."

In a photo essay in the same issue of the magazine, Brian Ulrich looks at the kinds of second jobs that teachers across the country are taking to make ends meet.

Why are many teachers forced to work second jobs? Could it be their wages are lower than ever? Sarah Holder reports for CityLab.

Global Health

On the Bill & Melinda Gates Foundation's Impatient Optimists blog, Steven Buchsbaum, deputy director of discovery and translational sciences in the foundation's Global Health Program, reflects on the launch, nearly fifteen years ago, and subsequent progress of the foundation's Grand Challenges initiative. 

Nonprofits

With summer a fading memory, Beth Kanter has a timely reminder about the causes and costs of lost productivity in nonprofit workplaces.

Continue reading »

An Update From the Community Foundation of the Virgin Islands

September 08, 2018

Irma_USVI_940x627After a quiet start, the 2018 hurricane season is heating up, with Florence drawing a bead on the Carolinas and two other systems farther out in the Atlantic gaining strength. A year after Hurricanes Irma and Maria brought devastation to the Caribbean, it seems like a good time to ask (again): What kind of role should philanthropy play in post-disaster recovery?

Dee Baecher-Brown and George H.T. Dudley, president and chair, respectively, of the Community Foundation of the Virgin Islands, have been thinking about that question. In an update (below) to donors and the USVI community, Baecher-Brown and Dudley share highlights of the foundation's post-disaster grantmaking and announce the launch of a new fund aimed at sustaining that progress into the future.

________

To our fellow Virgin Islanders, and all who hold our islands in their hearts:

Waking up on September 6, 2018, greeted by sun, a slight breeze, and surrounded by beautiful blue waters, we were mindful that just a year ago Hurricanes Irma and then Maria were about to make landfall in the Virgin Islands, ravaging our homes, displacing our families, and destroying our businesses in two of the costliest, most destructive hurricanes in American history. In hours, the winds of destruction wiped away what so many had spent their entire lives building.

The Community Foundation of the Virgin Islands (CFVI) knows firsthand just how significant a challenge we all faced then and continue to face today. In the wake of Hurricanes Irma and Maria, CFVI established a number of special funds to support both immediate and long-term relief and jump-start community renewal efforts. The Fund for the Virgin Islands was created the day after Hurricane Irma to respond to donors' asking "How can we help?" Before Hurricane Maria made landfall, the CFVI board of directors had already established the Friends and Families Fund for USVI Renewal. More than fifteen additional funds and fiscal sponsorships have since been established by generous donors to CFVI for the purpose of helping the Virgin Islands and Virgin Islanders to recover.

Over the past year, more than 10,000 individual donors and institutions provided over $15 million in donations and grants. People who wanted to make a difference but didn't know how or where to start were able to pool their resources with like-minded stakeholders and target help where it was most needed.

Continue reading »

Contributors

Quote of the Week

  • "One of the great attractions of patriotism — it fulfills our worst wishes. In the person of our nation we are able, vicariously, to bully and cheat. Bully and cheat, what's more, with a feeling that we are profoundly virtuous...."

    — Aldous Huxley (1894-1963)

Subscribe to Philantopic

Contributors

Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Archives

Other Blogs

Tags