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12 posts from May 2019

What's New at Candid (May 2019)

May 30, 2019

Candid logoSpring has been an exciting time here at Candid. Since Foundation Center and GuideStar joined forces, the two organizations have been busy with strategic planning, listening, and sharing, in addition to all the research, trainings, and campaigns we usually do. Here’s a recap of recent goings-on:

Projects Launched

  • We added new data and research to our Peace and Security Funding Index that highlight the diversity of funders and strategies focused on addressing issues of peace and security globally. For the past five years, Candid and the Peace and Security Funders Group have chronicled thousands of grants awarded by hundreds of peace and security funders, shedding light on who and what gets funded in the sector. You can learn more about that work here: peaceandsecurityindex.org.
  • Earlier this month, Candid, along with the Center for Disaster Philanthropy (CDP) and the Indiana University Lilly Family School of Philanthropy, launched U.S. Household Disaster Giving in 2017 and 2018 Report, the first comprehensive study of household donations to disasters. The study provides new data on U.S. households' disaster giving and answers many of the questions most often asked about patterns, preferences, and practices related to individuals’ charitable giving for disaster relief efforts.

Data Spotlight

  • Since March, we've been streamlining the process for developing the FC 1000 research set, which we use to track year-over-year trends in philanthropic giving. As part of this work, we're introducing systematic quality assurance checks on the grants data and aiming for a close date (for the 2017 grants set) in early fall. As of April, we've identified ~650 funders (out of an eventual 1,000) for whom we have complete-year grants data, and we've tracked down and outsourced grants lists for a hundred more. For the remaining funders, we'll be looking to the IRS for their grants lists and reaching out directly via email over the coming months.
  • Approximately 70 percent of grantmaking for peace and security issues includes some type of population focus. In 2016, funding for children and youth and women and girls each accounted for 14 percent of total peace and security funding, while funding for refugees and migrants accounted for 8 percent. Learn more at: peaceandsecurityindex.org/populations.

In the News

What We're Excited About

  • Candid Midwest will launch Candid's Nonprofit Startup Assessment Tool (NPSAT) on June 13 in Kansas City, Missouri, with the help of a generous grant from the Ewing Marion Kauffman Foundation. The event will include our new course, Is Starting a Nonprofit Right for You?, as well as a demonstration of NPSAT and an Open House featuring our Funding Information Partner, the Kansas City Public Library (central location).
  • Candid South has completed a lease agreement with CARE in Atlanta and will be relocating our staff there in order to better leverage our existing community partnerships. CARE is a global leader in the worldwide movement to end poverty and is known for its unshakeable commitment to the dignity of all people. Learn more about Candid South's transition here.
  • Candid's other library resource centers, located in San Francisco, Cleveland, Ohio, and Washington, DC, will be redirecting their in-person library services to local community partners in 2019. On June 20, Candid West will bid adieu to our San Francisco library and office with a Farewell Open House from 5:00-7:00 p.m. Then, sometime after June 217, the Candid West team will be relocating to Oakland to join the remainder of our Bay Area team. You can read more about Candid's plans to expand its outreach into local communities here.
  • On May 22, Candid West officially launched its virtual peer learning circle, Setting Your Development House for Success. We're accepting more participants through the learning circle's next session on June 19, however. Help spread the word! To register, click here.
  • On May 30-31, Candid West will be collaborating with Funding Information Network partner John F. Kennedy University’' Sanford Institute of Philanthropy and local funders and county supervisors to present a two-day convening in East Contra Costa County. The event will focus on the importance of strategies related to achieving a fair and accurate census and will include a capacity-building needs assessment as well as fundraising training.
  • Candid West will once again partner with CCS Fundraising and the Commonwealth Club on June 20 to present "Giving USA: A National and Bay Area Perspective." Historically, this has been one of our best-attended programs, and this year's event promises more of the same.
  • In June, Candid Northeast New York will begin teaching our core curriculum on a monthly basis at our Brooklyn Public Library partner site and will also visit and do public trainings at partner locations in Greenwich, Connecticut; Westerly, Rhode Island; and in Queens and Brooklyn.
  • On June 5, Candid's DC office will lead a contract training on proposal writing at the Glenstone Museum as part of Glenstone's Emerging Museum Professionals program.
  • On June 6 , Candid South will launch its Nonprofit Consultant Cohort, a four-part series, in Atlanta. Sessions will cover how to establish your client criteria and issue area, how to develop a marketing strategy that generates client leads, determining fee structure, and creating a business plan and presentation.
  • On June 6, Candid and Hispanics in Philanthropy will release a new dashboard, LATINXFunders, which illustrates philanthropy’s support for Latinx populations across the U.S. and its territories over a five-year period, 2012-2017.

Upcoming Conferences and Events

It's the season for conferences! Our staff will be attending these upcoming events:

Services Spotlight

  • 40,874 new grants added to Foundation Maps in April, of which 2,034 were made to 1,376 organizations outside the U.S.
  • Foundation Directory Online updates its database daily. Recipient profiles in the database now total more than 800,000.
  • The first-ever meeting of the NYC Grant Professionals Group was held in March. Join us for the second gathering on Friday, June 7. The purpose of the group is to support a community of grant professionals committed to serving the nonprofit community in the New York City metro area. Network and learn from your fellow grant professionals in a warm, engaging setting. Candid will be the host of the group's meetings.
  • New data sharing partners: Arthur M. Blank Family Foundation, Ecstra Foundation, Urania C. Sherburne Trust, Helen and Ritter Shumway Foundation, McPherson County Community Foundation, Merancas Foundation, Inc., Permanent Endowment Fund of the Moody Memorial First United Methodist Church, and TCF Foundation. Tell your story through data so we can communicate philanthropy's contribution to making a better world — learn more about our eReporting program.
  • Candid's DC staff presented at the ECDC Refugee Resettlement Conference on May 1 to more than 200 participants from grassroots nonprofit groups across the country. With about forty attendees, our session on identifying prospective funders and using Candid resources was one of the best-attended breakout sessions at the conference.
  • Candid's DC staff also presented on Candid resources and the basics of proposal writing at the University of Maryland's Do Good Institute on May 5. Attendees were mostly graduate students from UMD's Nonprofit Management program and are future (or current) nonprofit staffers or social entrepreneurs.
  • Our lineup of online programs (webinars and self-paced e-learning courses) has attracted more than 10,000 registrations since the beginning of 2019, while over 5,000 people have attended our in-person classes since the beginning of the year.
  • In April, Candid Northeast New York hosted its third annual Nonprofit Formation Fundamentals Bootcamp, featuring a series of five weekly sessions on the essentials of starting a nonprofit organization. The series was produced in partnership with New York Lawyers for the Public Interest and the Support Center, and each session reached more than seventy participants, making this year’s event the best-attended iteration of Nonprofit Formation Fundamentals yet.
  • In April, Candid Northeast New York taught a public webinar at our partner location in Andover, Massachusetts, and did staff training at our partner locations in Riverhead, Queens, and Brooklyn. And in May, we did public trainings in Albany, Saratoga Springs, Brooklyn, and Queens. Learn more about our Funding Information Network partners here.
  • New partners:
    • Gary and Mary West Foundation (a group project with our Knowledge Service team)
    • Handbid (new API client)
    • RelPro (new API and data customer)
    • Bloomberg Philanthropies (new API customer)

Content Published

If you found this update helpful, feel free to share it or shoot us an email! I’ll be back next month with another update.

Jen Bokoff is director of stakeholder engagement at Candid.

A Conversation With Mark Zuckerman, President, The Century Foundation

May 29, 2019

For Massachusetts folks of a certain age, the name Filene's Basement evokes memories of a crowded emporium where the hunt for bargains, especially on weekends, often resembled competitive sport. The basement was the brainchild of Edward A. Filene, whose father, William, founded Filene's in 1908. It was Edward, however, who recognized that growing numbers of American factory workers represented a new market and persuaded his father to start selling surplus, overstock, and closeout merchandise in the basement of his flagship Downtown Crossing store.

The experiment was a huge success, and the Filenes soon joined the ranks of America’s wealthiest families. In 1919, Ed Filene, already recognized as a progressive business leader, founded the Co-operative League — later renamed the Twentieth Century Fund — one of the first public policy research institutes in the country.

Mark Zuckerman joined TCF — which changed its name to the Century Foundation in the early 2000s — as president in 2015. A veteran of the Obama administration, where he served as Deputy Director of the Domestic Policy Council, leading teams on initiatives to reduce student debt, increase accountability at for-profit educational institutions, reduce workplace discrimination, and expand access to job training, and Capitol Hill, where he served as staff director for the House Education and Labor Committee, Zuckerman has worked over the last four years to bring the organization’s research efforts and policy work into the twenty-first century.

PND spoke with Zuckerman recently about some of those changes, the meaning of the 2018 midterm elections, and TCF’s efforts to advance a progressive policy agenda.

Headshot_mark_zuckermanPhilanthropy News Digest: The Century Foundation is marking its hundredth anniversary in 2019. Tell us a bit about Edward Filene, the man who created it back in 1919.

Mark Zuckerman: Ed Filene was a prominent businessman but also somebody who was deeply engaged in public policy, a rare combination in those days. The era in which he was working was a time when there wasn't strong governmental involvement in the economy, and where it was involved, it was too weak to effectively address the economic chal­lenges of the day. Things like workers' wages and benefits, anti-trust enforcement, and a lack of transparency with respect to Wall Street, something that eventually led to passage of the Securities and Exchange Act.

Ed Filene very much believed in more robust engagement by local, state, and the federal government in people's lives. And he felt that research was a linchpin of good public policy. At the time, there were very few think tanks — the Carnegie Endowment for International Peace had been started a year earlier and Brookings had been started two years before that. 

So, the idea of a private entity taking on challenges that, in the past, only government had had sufficient resources to address was something new. Today, of course, there are think tanks all over the world focused on many different subjects, but Ed Filene really was in on the beginning of the think tank movement and on think tanks as places where social policy, progressive social policy in Mr. Filene's case, would be discussed and developed.

Like Henry Ford, he believed that paying a decent wage to your employees was good for the overall economy, and in his writings he expressed support for a mandatory minimum wage. He also gave speeches about the importance of supporting the Roosevelt admin­istration in its attempt to get Congress to pass something that looked a lot like Medicare and urged people to call in their support for initiatives Roosevelt and his brain trust were proposing.

One of the public policy innovations he was most interested in was the credit union movement, and for a specific reason. At the time, the nineteen-thirties, financial institutions mostly were there to lend and cater to businesses and wealthy individuals. There simply was no infra­structure in the United States to provide the middle class — never mind lower-income folks — with capital to buy their first home or even to invest in a small business. Ed Filene viewed credit unions as a critical tool for providing Americans with capital that could help them thrive and grow the middle class. And so he embarked on a major effort, not only at the national level but at the state level, including his own state, Massachusetts, to authorize the creation of credit unions, which sort of makes him the father of the credit union movement.

PND: Let's jump ahead a bit. How does the Century Foundation's work support a progressive policy agenda in 2019? And how has the organization's model evolved over the last hundred years to support that work?

MZ: Well, one of the big changes the Century Foundation went through — and I would say it was in keeping with changes in the way policy was made over the decades — is that it evolved over the years from being essentially a book publisher, which was what it was for decades. Back then, it would engage influential thinkers about specific social policy ideas they wanted to promote in book form. Many of those titles were, of course, written for policy elites, with the idea that these ideas would be circulated and eventually find their way into the halls of Con­gress or onto the floor of state legislatures. It was a common sort of model for academic institutions and emerging think tanks during the mid-twentieth century. But over time, and especially as the Internet became more widely used, the model changed. Today, having influence in or impact on public policy requires a lot more than just having a good idea, and too many of these books end up sitting on shelves, unread. Maybe they're filled with great ideas, but there are fewer and fewer people willing to pull those ideas out of those volumes and turn them into policy.

So, the Century Foundation today is very differ­ent than it was seventy or fifty or even twenty years ago, in that we are taking more responsibility — not only for coming up with creative solutions to today's challenges, but for figuring out how to use the resources we have beyond research and the development of policy ideas to create impact.

That's the big shift — the leveraging of intellectual and advocacy resources and institutional relationships to drive policy change. When I joined TCF as president four years ago, I hired a number of people who had recent experience in the White House or in federal agencies or on Capitol Hill, because I wanted people who understood how best to approach those institutions, and how they could have an impact on those institutions. They were also people with a high level of expertise in their particular subject matter. That's been my focus as president — finding people who know who the policy players in Washington are, who have deep expertise in their subject matter and the ability to do good research, and who have wide, influential networks in the advocacy, policy, and academic communities.

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How to Find Your Most Engaged New Board Member

May 23, 2019

Board-meetingThere are nonprofits that enjoy a celebrated status in their communities. Powerful people clamor to be on their boards, and they earn those seats with significant contributions and meaningful introductions. And then there are most nonprofits. Their boards work to attract qualified board candidates but often end up wondering whether they should make do with less.

What are these nonprofits to do? The good news is that it is possible to recruit board members whose commitment to your cause more than balances out their lack of connections or personal wealth.

Now, it doesn't hurt to have a few well-connected (and deep-pocketed) people on your board. But having too many can be a problem. Increasingly, nonprofits are looking to solve the challenge of board member engagement. They struggle with board members who don't do much beyond showing up for meetings, or who write a big check to the organization once a year and then drop out of sight. But when it comes to that long-term project or software integration the organization desperately needs, the one that requires board members willing to do research and outreach until the goal is met? Fuggedaboudit.

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When It Comes to Reaching Donors, One Size Doesn’t Fit All

May 21, 2019

OnesizedoesnotfitallLet's say you’ve decided it’s time to buy a new pair of jeans. You’re thinking maybe skinny dark jeans or perhaps a light-wash high-rise boot cut. But when you walk in to your favorite store, the sales associate directs you to a table piled high with denim and a sign that reads: ONE SIZE FITS ALL. Um, no. The one-size-fits-all model may work with scarves, but it definitely does not work with blue jeans. Why? Because people’s body types are as diverse as their senses of style. (The Internet literally has hundreds of pages dedicated to breaking down the best style for your body type — seriously, there are algorithms for this stuff.) Your reaction to this abomination, this affront to your unique sense of style and individuality?

You walk out of the store.

Which is why, if you are attempting to engage all your donors in the same exact way, you’re going to see a lot more of them turning their back on your organization than buying what you’re selling.

In 1994, a team of social scientists conducted a study to determine what motivates an individual’s interest in and support for a nonprofit organization. Their research concluded that donors fall into seven distinct groups, which they dubbed "The Seven Faces of Philanthropy" (Maru, Karen & Prince, Russ Alan. Jossey-Bass 1994).

Astonishingly, we tracked down seven donors, one from each category, and asked them what they respond to when it comes to engagement.

Here's what we learned....

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A Conversation With Angelique Power, President, Field Foundation

May 20, 2019

A Chicago native, Angelique Power started her career in philanthropy in the public affairs department of Marshall Field's Department Stores, where she learned about corporate social responsibility and what effective civic engagement in the business world looks like. She went on to serve as program director at the Chicago-based Joyce Foundation and as director of community engagement and communications at the Museum of Contemporary Art Chicago, before being named president of the Field Foundation of Illinois in the summer of 2016.

Since stepping into that role, Power has helped catalyze new ways of thinking about racial equity and social justice at a foundation that has engaged in that kind of work for decades. Under her leadership, the foundation has expanded its relationships with the community-based nonprofits it historically has supported as well as a range of philanthropic partners in Chicago.

Philanthropy News Digest spoke with Power about how the foundation is rethinking its approach to racial equity, its new partnership with the John D. and Catherine T. MacArthur Foundation, and why she is optimistic about the future.

Heasdhot_angelique_powerPhilanthropy News Digest: The Field Foundation was established in 1940 by Marshall Field III, grandson of the man who founded the Marshall Field’s department store chain. Although the younger Marshall Field worked on Wall Street, he was also a committed New Dealer. What did Field think he could accomplish through the foundation, and what happened to the foundation after his death in 1956?

Angelique Power: As someone who in the day practiced what we refer to today as racial equity and social justice grantmaking, Marshall Field III was a leading financial supporter of Saul Alinsky, the godfather of community organizing. And the Field Foundation in the early '60s was a significant supporter of Dr. Martin Luther King, especially around some of the voter registration campaigns that Dr. King led. It’s always interesting to me to reflect on Field's trajectory, a person who was born into great wealth but who saw the racial inequality in Chicago and nationally and decided to use his resources and his platform as a white man of privilege to effect change in the system.

Marshall Field V is on our board, and I often tell him, "You know, I never met your grandfather, but I have such a crush on him." Marshall Field III was a visionary in the way he thought about democracy and the institutions that hold power accountable in a democracy and how you can support individuals who are working to create change at a systems level. And I'm pretty sure he had all of that in mind when he set up the foundation.

After he passed away in 1956, the foundation was broken up. His widow moved to New York and created the Field Foundation of New York, and his son, Marshall Field IV, stayed in Chicago and created the Field Foundation of Illinois. The Field Foundation of New York spent itself down after twenty years, while the Field Foundation of Illinois is what we today refer to as the Field Foundation. In many ways, I feel like the path we've been on since I arrived three years ago — and going back beyond that to the tenures of the foundation's last few presidents — has been to try to put into action the ideals of Marshall Field III.

PND: You're the third consecutive African American to serve as head of the foundation, and individuals of color comprise a majority of your board. Whom do you credit for ensuring that the leadership of the foundation reflects the community it aims to serve?

AP: In the late 1980s, the Field Foundation made a couple of very interesting and unusual moves for the time. One was adding Milton Davis, an African-American man, to the board. The other was hiring Handy Lindsey, Jr. as president. Handy, who recently retired as president of the Ruth Mott Foundation, is so well respected in the field, both locally and nationally, that for years there was a lecture series named in his honor.

There are a couple of other things about the Field Foundation that make it unique. One, we are not a family foundation, although we do have some family members on our ten-person board, including Marshall Field V, who is a director for life, and two other family members; everyone else is a person of color. And the board has a keen interest in having the foundation operate as a private independent foundation, rather than as a family foundation. Family foundations are great and allocate capital in really interesting ways. But there was a decision early on here at the Field Foundation to put the resources and influence of the foundation in the hands of civic leaders, as opposed to solely family members.

Marshall Field V was instrumental in that decision, and he has never served as board chair. He is also very careful about how he participates in board meetings. I'm talking about a brilliant human being who serves on many boards, who has raised a tremendous amount of money for conservation and arts organizations and other causes, and who understands that his voice carries a lot of weight. He is very intentional in the context of his Field Foundation duties about sharing power, and always has been.

The decision to diversify the center of power at the foundation began in the 1980s, and that's also something I attribute to Marshall Field V. It's because of Marshall that our last two board chairs — including Lyle Logan, who recently stepped down as chair after serving more than ten years in that role — have been persons of color.

According to the D5 coalition, nationally, 14 percent of foundation board members are people of color, while the population of Chicago is 60 percent people of color. Our new board chair, Gloria Castillo, who also serves as CEO of Chicago United, a robust organization of CEOs of color that is working to create a more inclusive business ecosystem in Chicago, is very thoughtful about how leadership should look and operate, and she is absolutely committed to making sure that our organizational culture reflects equity in every sense of the word.

I would also mention Marshall's daughter, Stephanie Field-Harris, who chaired the search committee that selected me and was fiercely committed to speaking to candidates for the job who could come into a situation and not do what most people expected them to do but would be willing to lead an inclusive process that tried to radically re-imagine philanthropy. I credit all those folks, and each of our board and staff members, for making the Field Foundation the special institution it is today.

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Trends and Transitions in Education Reform and Philanthropy

May 13, 2019

Philantopic_denver_public_schoolsA few months ago, Susana Cordova, the new superintendent of Denver Public Schools, released her one-hundred-day entry plan. Having survived a divisive selection process and a difficult teacher strike at the beginning of her tenure, Cordova took a moment to ask the question: "What does it take to ensure that every child in our city thrives?"

With the release of her plan, she has put forth a vision that includes students, families, and staff working together to ensure that students do exactly that, with an emphasis on the need for her administration to reach out with new and intentional modes of engagement that ensure inclusion of all members of the community.

After reading the plan — and with Cordova's commitment to families front and center — my lingering question for Denver's education eco-space is whether the philanthropic community is willing to get behind community empowerment and advocacy as part of the solution. In order to do that, funders will need to be less prescriptive of the solution and more authentically responsive to what families say are their most critical needs.

Recently, Grantmakers for Education released its Trends in Education Philanthropy Benchmarking Surveywhich takes the pulse of and tracks trends in national education philanthropy. The results reflect a number of changes in education philanthropy, including a greater focus on the "whole learner," as well as deeper investments in postsecondary education and workforce career readiness. A notable finding of the report is that among respondents to the survey, more than 60 percent provided funding for community and family engagement, and many anticipate growth in those investments over the next two years. The report also notes that among the factors or trends funders identified as having the greatest potential impact, engagement with learners' families ranked near the top, while a number of respondents emphasized the role of community organizing in driving and sustaining local school system change.

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Weekend Link Roundup (May 11-12, 2019)

May 12, 2019

0510_flooding_CNNA 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

There’s been an email marketing paradigm shift in the nonprofit sector, writes Caroline Fothergill on the npEngage site. Whereas the size of a list used to be all that mattered, "collectively [we've] come to realize the value of quality over quantity." Today, open and click rates are where it's at, and Fothergill shares some practical advice designed to help nonprofits improve their results in both areas.

Criminal Justice

"As a person who uses drugs," writes Louise Vincent on the Open Society Foundation's Voices blog, "I know that no one person is to blame. What is responsible for the hundreds of thousands of deaths from drug overdose is a broken drug policy, a system that prioritizes punishment over treatment, and a culture of prohibition that leads us to use drugs alone and in shame." 

Health

What does it take to build fair opportunities for health in rural communities? On the Robert Wood Johnson Foundation's Culture of Health blog, Whitney Kimball Coe,  coordinator of the National Rural Assembly, a movement geared toward building better policy and greater opportunity across the country, shares some of the lessons she has learned in her work.

Book reading has been declining for decades, and language and communications experts are concerned. Markheim Heid, a health and lifestyle writer, takes a closer look at the research — and the implications for society.

Higher Education

It's time to shift the social contract of education away from short-term job training toward long-term development, writes David M. Perry, a former professor of history, on the Pacific Standard site. And free college has to be part of that shift.

In The Atlantic, Tom Nichols, author of the Death of Expertise, argues that the idea that students on college campuses should have "a say in the hiring and firing of faculty whose views they merely happen not to like...is a dangerous development — a triple threat to free speech, to the education of future citizens, and to the value of a college education." Readers of Nichols' article respond.

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Philanthropy Has Changed How It Talks — But Not Its Grantmaking — in the Decade Since NCRP's 'Criteria' Was Released

May 10, 2019

Ncrp-image-1-234x300It's been ten years since NCRP released Criteria for Philanthropy at Its Best. As I reflect on the animated response to the report, I'm struck by how far the sector has come since 2009 — and, paradoxically, by how little has changed.

Our decision to publish Criteria was, shall we say, controversial. That NCRP had the temerity to assert that any set of criteria be applied to the field of philanthropy, let alone criteria grounded in our belief that grantmakers needed to prioritize marginalized communities and support grassroots-led problem solving to address the systemic inequities and injustices confronting communities in America every day, had more than a few people aghast.

Here's a sampling of the some of the pushback:

"[NCRP's] hierarchy of ends is breathtakingly arrogant." — Paul Brest, former president, William and Flora Hewlett Foundation, in the Huffington Post, 2009

"We reject the use of a single template to promote effective philanthropy." — Steve Gunderson, former president, Council on Foundations, 2009

"In the NCRP worldview, philanthropic freedom is not only at risk, it's an oxymoron." — Heather Higgins, former VP, Philanthropy Roundtable, in Forbes, 2009

Criteria earned NCRP new fans and more than a few critics. But when I consider the many books published in the last few years that have been critical of the field, I'm pretty sure that if we released the report today, few would bat an eyelash.

What's changed?

Criteria for Philanthropy at Its Best: At A Glance

Criteria offered the following aspirational goals for grantmakers looking to maximize their impact in the world:

Criterion I: Values

...contributes to a strong, participatory democracy that engages all communities.

a) Provides at least 50% of its grant dollars to benefit lower-income communities, communities of color, and other marginalized groups, broadly defined.

b) Provides at least 25% of its grant dollars for advocacy, organizing, and civic engagement to promote equity, opportunity, and justice in our society.

Criterion II: Effectiveness

...invests in the health, growth, and effectiveness of its nonprofit partners.

a) Provides at least 50% of its grant dollars for general operating support.

b) Provides at least 50% of its grant dollars as multiyear grants.

c) Ensures that the time to apply for and report on the grant is commensurate with grant size.

Criterion III: Ethics

...demonstrates accountability and transparency to the public, its grantees, and constituents.

a) Maintains an engaged board of at least five people who include among them a diversity of perspectives — including those of the communities it serves — and who serve without compensation.

b) Maintains policies and practices that support ethical behavior.

c) Discloses information freely.

Criterion IV: Commitment

...engages a substantial portion of its financial assets in pursuit of its mission.

a) Pays out at least 6% of its assets annually in grants.

b) Invests at least 25% of its assets in ways that support its mission.

 

Philanthropic sector discourse has come a long way in the last decade

It has become commonplace for foundation staff to talk publicly about trusting grantees with long-term general support, investing in marginalized communities, and funding structural change.

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Design Therapy for the Purpose-Driven Organization

May 08, 2019

Branding_Alpha Stock ImagesThe value of brand design for nonprofits or foundations — when done right — is not just in the outcome but in the process. Design is the act of (re)imagining how we see and communicate ideas. It's an opportunity to challenge assumptions, change minds, and test the status quo. Brand design, in particular, is rife with such opportunities and, of course, potential landmines. For organizations that are prepared to embark on the adventure, it can be transformative in unexpected ways. At its best, a brand redesign can reinforce and strengthen an organization's work, increase its engagement with internal and external audiences, and pave the way for real growth.

Clarity, Meet Beauty

Branding is the process of figuring out the clearest, truest manifestation of who you are as an organization through words, images, and graphics. A great brand elucidates the "who" (people and ethos) and the "why" (purpose) succinctly and clearly. And the process of getting to a great brand typically starts with a design firm gathering as much qualitative data as it can about your organization.

By data, I mean the perspectives of internal and external stakeholders; an operational values assessment; deep dives into strategic business goals, personality drivers, competitive landscape, and positioning; and audience identification. It's similar in these respects to how an organization would approach a strategic planning process.

All the insights are then distilled into a strategy that highlights key elements such as organizational personality, values, and market differentiation. This strategy guides the creation of new messaging, tagline, logo, website, and so on.

So, what's the big deal? It seems pretty straightforward.

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How Foundations Are Transforming Risk Into Opportunity

May 06, 2019

At the downtown Los Angeles office of Southern California Grantmakers, dozens of leading thinkers from philanthropic organizations recently gathered for a Rockefeller Philanthropy Advisors' "Theory of the Foundation Seminar." The lively discussion addressed philanthropic time horizons, ways to achieve greater operational effectiveness, and driving strategic impact.

Eventually, the conversation turned to risk: the multitude of risks associated with operating in a world increasingly characterized by growing instability and need; and the importance of taking and absorbing risk as a philanthropic actor. Underlying the conversation were a number of current global trends, including:

  • growing populism and socio-political instability;
  • a backlash against private philanthropy in part based on the belief that the growing concentration of wealth is a main contributor to societal problems;
  • the expansion of what philanthropy entails to include impact investing; and
  • a renewed interest in advocacy, capital aggregation, and partnerships in philanthropy.

As the discussion revealed, risk is often believed to be innate to philanthropy, deeply tied to the sense that a philanthropist should also be an innovator, and that philanthropic giving is synonymous with risk capital. Many philanthropic organizations with sizable resources (both financial and non-financial) and the will to confront global challenges welcome this idea — in theory. In reality, however, many see risk as a barrier to strategic philanthropic giving. In part, this is because the meaning of risk itself isn't always adequately unpacked across programs, governance, and staff. As one attendee stated, "We are using the word 'risk' as if we all...agree on its meaning, but we…are not all using it the same way."

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The Privilege and Peril of Becoming a Foundation CEO

May 02, 2019

GettyImages-612396272-v2-compressorThe occasion of recruiting and hiring a new CEO presents an important opportunity for members of the board to collectively reflect on the unique challenges entailed in the leadership of a private foundation. While professional search firms usually have a profile in mind in terms of what constitutes an appropriate CEO candidate, in many ways the CEO role at a foundation is not a typical CEO position. To truly do justice to the position, the leader of a foundation should not only be able to articulate a vision, inspire confidence, and exemplify other classic qualities of leadership, s/he should also have the strength of character to manifest the unique values that characterize philanthropy at its best.

CEOs of grantmaking foundations occupy positions of immense privilege. They control access to significant sums of flexible capital and, for all intents and purposes, are accountable only to their boards. Typically, they have a significant amount of autonomy in how they choose to define their role, and it's not uncommon for a CEO to exert significant personal influence over the foundation's strategic priorities and grantmaking practices. For some boards, that equates to dynamic, visionary leadership. But there are potential pitfalls in the exercise of that privilege, and they can be damaging to the ultimate effectiveness of the institution. With the caveat that more than one of these traits often is evident in a single person, here are a few we've observed.

The CEO as Pundit

Compounding the significant privilege inherent in the CEO role is the likelihood that a foundation CEO will receive a daily shower of affirmation for his/her irreproachable wisdom and vision. To be susceptible to constant flattery is human. But unless the CEO makes a special effort to remain grounded, it's all too easy for him/her to succumb to the countless ego-gratifying opportunities to pontificate and exercise inappropriate personal influence over the agenda and daily operations of the foundation.

Internally, that can take the form of exercising an extreme form of control over every aspect of the foundation's work. Externally, a CEO may begin to feel the position qualifies him/her to offer regular opinions on the direction in which society should be moving, or even that the world of public affairs can uniquely benefit from the leadership of someone who is not beholden to the political process or company shareholders. Obviously, there is a role for foundation CEOs to speak out on issues of importance to their foundations, but it should be done in a thoughtful and intentional fashion that minimizes self-aggrandizement.

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5 Questions for…Lori Bezahler, President, Edward W. Hazen Foundation

In 2000, Lori Bezahler was young, idealistic and running the Education and Youth Services division of a large nonprofit in New York. She came across an ad that piqued her interest: Public Education Program Officer Edward W. Hazen Foundation. Bezahler was intrigued by the foundation’s idea that organizing could be used as a tool to change the conditions that adversely affect people’s lives, with a focus on communities of color and in the area of education. So she applied for and got the job. A few years later, in 2004, Barbara Taveras, the foundation's then-president, decided to step down. The foundation's board conducted a search for Taveras's replacement and chose Bezahler.

In the decade and a half since, Bezahler and the Hazen Foundation have been in the forefront of the movement for racial justice in American society, supporting the leadership of young people and communities of color in dismantling structural inequity based on race and class. To accelerate that work at this critical juncture, the Hazen board announced in March that the foundation would be spending down its endowment over the next five years in support of education and youth organizing, with a focus on racial justice.

PND spoke with Bezahler shortly after the board’s announcement to learn more about how and why the decision to spend down was made, how it will be executed, and what the foundation hopes to achieve over the next five years.

Headshot_lori_bezahlerPhilanthropy News Digest: The Hazen Foundation was established in 1925, making it one of the oldest private foundations in the United States. For decades, the foundation focused its resources on "the lack of values-based and religious instruction in higher education." Then, in the 1970s, it began to focus on public education and youth develop­ment, and in the late '80s it shifted its focus to community organizing for school reform. In 2009, under your leadership, the foundation made another shift, and began to focus more explicitly on race as the basis of oppression. Can you speak, broadly, to the process and the people who’ve helped shaped the foundation’s evolution over the last ninety-plus years?

Lori Bezahler: I'm glad you brought up the foundation's establishment, because I think Edward and Helen Hazen, the couple who created it, were really interesting people. They were childless themselves and were involved, during their lifetimes, in a number of char­ities that focused on young people. A lot of that work influenced the founding docu­ments of the foundation and its approach from the beginning, especially the importance of thinking about young people in terms of their whole selves, thinking about character development, about the way each of us incorporates our values and our beliefs into our lives. That's been a common thread through all the years and decades of the foundation's work. And over that span of time, a couple of people have been especially important in shaping the institu­tion that is Hazen today.

The first is Paul Ylvisaker, who was well known for the urban planning and anti-poverty work he did for the Johnson administration in the 1960s and later at the Ford Foundation, before becoming a dean at Harvard. He also was a trustee of the Hazen Foundation. From what I've read of our history and in board minutes and things like that he was influential in a number of ways. One was thinking about policies and their impact in broad structural terms. The other was the decision to recommend bringing Jean Fairfax, who just passed away at the age of 98, onto the board. At the time, Jean was a young African-American woman and lawyer for the NAACP Legal Defense Fund, and as far as we can tell from our research, she was the first African-American woman to be appointed to the board of a national foundation. In that role, she was instrumental in bringing attention to issues of race and representation by demanding that prospective grantees of the foundation share information about the demographics of their leadership, the nature of the community they served, and whether leadership was representative of that community. Jean was instrumental in moving the foundation's board to think more intentionally about where we, as an institution, put our dollars and the importance of self-determination.

There were others who followed in her footsteps. Sharon King led the foundation for a few years in the late 1980s, and it was under her leadership that the foundation began its work in the field of community organizing, or, as Sharon used to say, with organizations that had their feet in the community, that were grounded and embedded in the com­munity and not parachuting in, and that had leadership that was representative of the community.

After Sharon left, Barbara Taveras took over as president and really built out the foundation's understanding of organizing. She was very thoughtful in considering how a foundation could and should relate to the field through partnering, listening, and acting in a learning mode, rather than a prescriptive mode.

There were also a number of people who helped move the foundation in the direction of having an explicit focus on race. The person I would call out especially in that respect is Daniel HoSang, who was appointed to the board when he was at the Center for Third World Organizing and today is an associate professor of American studies and ethnic studies at Yale. Dan was a member of the board for ten years and really championed the idea that the foundation should specify race as a focus and think about it structurally rather than individually. He was crucial in that regard.

PND: Your board recently announced that the foundation was going to spend out its endowment over the next five years. How did that decision come about?

LB: The impetus to consider a dramatic change in how the foundation does business came about as the result of a sort of fundamental questioning of the foundation's role in a time that presents us all with great challenges but also great opportunities. It's a moment that is lifting up the potential and possibilities for the very work the Hazen Foundation has spent so many years doing. The relationships we've created, in the fields of youth organizing, racial and education justice; the way we've been able to bring that kind of work into the broader philanthropic conversation and raise it up to some of our peers and partners — all that figured into it.

And all those different factors caused us to pause and say, Are we stepping up? Are we doing everything we can be doing? Clearly, there are assumptions around perpetuity in philan­thropy, and they're based on some good thinking. I'm not saying that perpetuity is ridiculous — it's not. If you look at the numbers, you actually spend more over time, it gives you the opportunity to build something and be there for the long haul.

But there are moments when it's not enough, when the damage done by misguided policies or irresponsible leadership in the short-term will have ripple effects across time that demand you think differently about how you use your resources. And when, on top of that, there's an established body of work that you can build on to do something meaningful by concentrating your resources — well then you don't really have a choice.

That was the question we asked ourselves, and the process to get to the announcement took nearly two years. We did a lot of research, everything from literature scans to interviews to surveys. We talked to lots of people in the field, including our grantees and partners. We talked to people who had served in leadership roles in other spend-down institutions and asked them what worked and what didn't work, what were the pros and what were the cons. We looked at other options besides spending down. And we did a lot of financial modeling. I mean, we conducted an enormous amount of research, because I think the board felt very strongly that if we were going to do this, if we were going to turn out the lights on this institution and the work we have been supporting over many decades, it's got to be done in a way that is meaningful. The approach was deliberate and rational, but we also did a lot of soul searching about what it all meant and whether we were doing everything possible to fulfill the mission of the institution or whether there was something different we needed to do.

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