160 posts categorized "Grantmaking"

Fit to Fund: Who Should Pay to Raise Standards for Good Financial Grant Practice?

November 08, 2019

Global standardsFunders have a right to expect that their nonprofit grantees have systems and structures in place to manage grants effectively and ethically. But does that right also imply that funders have a responsibility to invest in the grant management capabilities they expect from organizations they entrust with funds?

In the production of French cognac, nearly twenty million bottles, or 8 percent of the country’s annual production, is lost to evaporation after the distilled spirit has been put up in oak barrels; this is known, rather romantically, as "the Angel's Share."

A similar but far less romantic phenomenon occurs in the nonprofit sector. According to Caroline Fiennes, author of It Ain't What You Give, It's The Way That You Give It, roughly $125 million in the United Kingdom alone is "lost" by grant recipients in the production of reports required by funders and government agencies; much of that is spent on duplicate assessments as part of the submission of multiple grant proposals.

Rather than going to the angels, this $125 million could be seen as the "admin share," with both funders and their nonprofit grantees spending significant amounts of time and money on multiple due diligence assessments, diverting funds to needless administrative tasks that could be used to change lives for the better.

Most grant proposal forms use different criteria, leaving many would-be grant recipients unclear about what funders expect of them. This also means that many nonprofits end up spending hundreds of hours a year filling in different forms that ask for the same basic information in slightly different ways.

Nowhere is the problem more acute than when it comes to filling in forms designed to assess a nonprofit's grant management practices. In part, this is because funders are under increasing pressure from watchdog groups, the media, and taxpayers to demonstrate that the funds they award are being spent effectively and ethically.

In addition, different ideas about what constitutes good grant management practice have led to lower levels of trust in grant management capabilities across global funding supply chains. As a result of this breakdown, nonprofits find themselves having to jump through ever more complex and costly assessment hoops in order to reassure funders of their reliability.

The Global Grant Community (GGC) was established to address this broken model and reduce the "admin share" of funds being lost to paperwork. Its mission is to enable more money to flow to the people who need help by using standardization and the disruptive power of technology to reduce the cost, in time and dollars, currently entailed in connecting funders with potential nonprofit partners.

Our antidote to "admin share" is the world’s first international standard for Good Financial Grant Practice (ARS 1651:2018). For the first time ever, there is now a global standard for good grant management practice that CBOs, CSOs, NGOs, and higher educational and research institutions can adopt, bringing rigor and trust to even high-risk funding environments and creating a level playing field between state and philanthropic funders and their beneficiaries.

Streamlining and stripping out the cost of due diligence by standardizing and digitizing the due diligence process also means a greater comfort level for funders — and more money for organizations that are working to create greater impact for people across Africa and the world — a win for both funders and recipients.

The new standard was developed at the African Academy of Sciences in Nairobi, Kenya, with support from some of the world’s largest public- and private-sector funders, including UKAID, USAID, Wellcome, UK Research and Innovation, the UK Department of Health and Social Care, the IKEA Foundation, the European and Developing Countries Clinical Trials Partnership (EDCTP), the African Union, and the New Partnership for Africa's Development and Coordinating Agency (NEPAD).

Developed in partnership with the African Organization for Standardization (ARSO), the standard was piloted and road-tested by more than three hundred organizations around the globe and was formally adopted (ARS 1651:2018) by ARSO in June 2018. As such, it sets out more than two hundred and eighty clauses stipulating what major funders expect from their grantees with respect to grant management practice. The practices are organized into four broad organizational areas — financial management, human resources, procurement, and governance — and four tiers of compliance — bronze, silver, gold, and platinum (depending on the scale and complexity of funding and the size of the nonprofit, NGO, or research institution).

The GFGP standard is not meant to replace existing audit and assessment processes but instead provides a strong and consistent belt for a funder's braces. Because grant recipients are assessed against common standards of grant management practice, funders can have greater confidence that their funds will be spent effectively, responsibly, and free from corruption. Working with certified Global Grant Community organizations also reduces funders’ risk and the cost of audits and compliance, ensuring that more of their funds support government policy objectives, Sustainable Development Goals, and Grand Bargain targets.

At the same time, a global standard benefits grant recipients. Because the standard clearly sets out the grant management and risk mitigation procedures funders are looking for before awarding grants, nonprofits can use the standard as a tool to improve their grant management capabilities.

The journey for a nonprofit to world-class grant management practice begins with a simple GFGP Pre-Certification Assessment that measures its capacity to comply. Organizations can improve their funding prospects further by opting for an independent audit by a licensed GFGP Standard Certification Body and earning a Certificate of Compliance, which can be displayed as a quality mark on a searchable database used by funders, where it is seen by many funders. This "provide once – share with many" functionality reduces the time and money that grantmakers spend on finding and verifying reliable partners.

Critics of the standard may point out the irony of yet another new form that needs to be filled out. However, we believe that over time the GFGP standard will be the only form a nonprofit ever needs to complete. Still, there is a short-term cost for nonprofits, and while the costs are far lower than the price charged by external audit firms and other third-party verification bodies, they do represent a barrier for many organizations, which in turn limits the ability of those organizations to improve their grant management capabilities and attractiveness to funders.

That raises an interesting question about whether the world's biggest funders should subsidize the cost of completing a GFGP assessment for underresourced organizations. We say "yes." By making the cost of an assessment and certification an allowable grant expense, funders would be acting in their own self-interest while strengthening the ability of their nonprofit partners to spend the grant funds they receive responsibly and ethically. If you decide to give someone a car, the first thing you probably want to know is whether person has a driver’s license. The same principle applies here.

As well as making a GFGP assessment an allowable expense, we are calling on funders to provide small grants through a special fund to pay for assessments for the smallest CSOs as a way of ensuring that no organization is left behind. It's our belief that the GFGP standard will become an international standard on which all grant funding, and the way funders fund, is based. It is long overdue, and we look forward to the many positive changes its adoption will bring.

Headshot_michael_kilpatrickMichael Kilpatrick is senior advisor to the Global Grant Community at the African Academy of Sciences in Nairobi, Kenya.

Most Popular PhilanTopic Posts (August 2019)

September 06, 2019

Labor Day has come and gone, the days are getting shorter, and you're probably feeling the urge for goin'. Before you do, check out some of the posts that were popular with our readers in August. Enjoy!

Interested in contributing to PND or PhilanTopic? We'd love to hear from you. Drop us a note at Mitch.Nauufts@Candid.org.

Family Funders: Always Important in Rural Communities

August 14, 2019

Washington-rpa-report-1200x675The history of the United States is a history of wealth created in rural America: timber and wood products in the Northwest and Northeast; fossil fuels in Appalachia, the Southwest and Rocky Mountain region; textiles in the South. Related philanthropic funds have been created alongside these industries — often in the form of multi-generational family commitments to rural communities. With the renewed focus today on the challenges and opportunities confronting rural America, it’s a good time to take a look at how rural philanthropy fits into the philanthropic field as a whole, as well as at how the evolving field of rural philanthropy is helping to support more and better philanthropic investments in rural communities.

One narrative about rural philanthropy holds that rural America has received far fewer philanthropic dollars over the years on a proportional basis. This is true. The best data we have indicates that rural philanthropic investment comprises just 7 percent of  total private foundation grantmaking, while rural America accounts for 20 percent of the U.S. population — and 90 percent of the land! An equally compelling narrative, however, is that rural-serving foundations — often family-governed — are a strong and consistent factor in helping rural communities face the future with a sense of optimism. Over the years, family foundations like the Blandin Foundation in Minnesota, the Ford Family Foundation in Oregon, the LOR Foundation in Wyoming, the Orton Family Foundation in Vermont, and the T.L.L. Temple Foundation in Texas have made long-term commitments to rural community success.

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Native Wisdom: A Review of Edgar Villanueva’s 'Decolonizing Wealth'

July 26, 2019

Cover_decolonizing_wealthIn his book, The Wretched of the Earth, published in 1961, Frantz Fanon noted what he considered to be the necessary conditions for the overthrow of colonialism: "To tell the truth, the proof of success lies in a whole social structure being changed from the bottom up." He added that "establishing a social movement for the decolonization of a person and of a people" was critical in disrupting the legacy of colonialism.

Almost sixty years later, Edgar Villanueva picks up on Fanon's call to action in his book Decolonizing Wealth. In the book, Villanueva places a spotlight on how colonialism has been perpetuated and stresses the importance of eliminating it from circles of wealth and, in particular, philanthropy, making it perhaps the most refreshing and insightful of the recent spate of books on foundations.

Villanueva is a rare combination: both a grantmaker and a member of the Lumbee Tribe, one of eight state-recognized Native American tribes in North Carolina. Drawing on Native American wisdom, he presents an eye-opening prescription for how foundations can dismantle the unequal power dynamic that historically has separated funders from the nonprofit organizations they support. Invoking the understanding common among indigenous people of medicine as "a way of achieving balance," he outlines what he terms "Seven Steps to Healing" — Grieve, Apologize, Listen, Relate, Represent, Invest, and Repair — with the caveat that the steps are less a checklist for funders to complete than an invitation to them to embark on a journey of "decolonization."

Differentiating himself from many of philanthropy's contemporary critics, Villanueva does readers a great service by focusing their attention on the grantmaking process. It's hardly a secret that change in the ways foundations operate is long overdue. What's so refreshing about Villanueva's approach is his application of a decolonization lens to that call to action, drawing on his own experience as a member of the Lumbee, the very first people on the North American continent to experience directly the arrival of and subsequent colonization by Europeans. In the process, he reminds readers that white supremacy on the North American continent has its origins in the 1400s and establishes the connection between that long, shameful legacy to current organized philanthropic practices. His blueprint for addressing that legacy offers a powerful set of arguments as to why those most impacted by the activities of foundations should be more involved in foundations' decision-making processes and why foundation officials have to go beyond their current practices and take steps to bridge the divide between grantmakers and grantees.

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Stop Differentiating Between Program and Administrative Support

July 15, 2019

Siegel_family_endowment_workforceAs the director of special projects at Siegel Family Endowment, I spend a lot of time talking to folks in the philanthropic sector about their approaches to funding. It's an opportunity to get in the weeds with others about their strategic priorities and to build an understanding of innovation and best practices in the field.

And for years now, I've heard funder after funder draw the same false distinction between supporting an organization's administrative costs and its program costs.

There's one thing they're ignoring when they make this kind of distinction: You can't have one without the other.

If there's a single prerequisite for running an effective program, it's having the right administrative structures in place to do so. HR, compliance, reporting, fundraising, finance, IT —  they're all critical factors in determining whether a program ultimately succeeds or fails.

Designating funding as programmatic merely forces nonprofits to be cheap, not prudent. With the majority of funding supporting programmatic work instead of the infrastructure needed to make such work possible, nonprofits are often forced to skimp on the very things that can ensure the efficacy and sustainability of their work.

Unfortunately, there's no magic formula that funders can use when deciding how their grants should be allocated. If they want to be nimble and responsive, they need, instead, to be clear in their expectations and receptive to an organization's changing needs. Big administrative needs (like new software purchases or upgrading office space) are unlikely to be an annual expense,  but when they are needed, the impact on an organization's budget — and programmatic work — tends to be outsized.

My big recommendation for funders? Start by asking grantees where they have had to cut corners. An organization's long-term success is a function of the health of the infrastructure that makes its work possible in the first place, and we as funders owe it to our grantees to cultivate a relationship with them that’s honest, open, and bi-directional.

Grantmakers have an opportunity in 2019 to shift their thinking on how responsible, responsive funding works. Let's help our grantees be as effective as they can be by investing in every aspect of their work and not just cherry-picking the things that appeal to us.

Headshot_jessica_johansen_siegel_familyJessica Johansen is director of special projects at Siegel Family Endowment. A version of this post originally appeared on the SFE website.

Collaboration Versus Competition: Funders Should Shift Their Giving Models to Better Support Families

June 25, 2019

Familia_adelantePicture this: In the New York City borough of the Bronx, Marlena and Jose Reyes had worked hard to provide for their family of four, often getting up before the sun rose to feed and get their children off to school before heading out to work. But their family hit hard times when Jose was injured on the job. The medical bills quickly added up, and, lacking disability coverage, he began to worry his family wouldn't be able to make ends meet. Soon, the family fell into financial crisis, and the threat of eviction became a very real and frightening possibility.

Fortunately, Marlena learned about a service provider collaborative in the community called Familia Adelante that could help.

Stories like those of the Reyeses are common inside the walls of Familia Adelante, which connects families with a range of services, from health care to educational support to job training, all in a single location.

Comprised of three organizations — Mercy Center, the Fiver Children's Foundation, and the Qualitas of Life Foundation —as well as Tanya Valle, a mindfulness practitioner, Familia Adelante helps low-income families access services based on goals they set with the help of a coach. Each of the three agencies focuses on its area of expertise, and together they meet regularly to evaluate families' progress. In the situation in which the Reyes family found itself, Familia Adelante was able to help the Reyeses prioritize their short-term needs, establish a plan to get out of debt, and, because the organization has access to a full range of basic-need services, keep their home and maintain family stability.

Unfortunately, for many families and service providers, the reality is much different. Rather than collaborating, many nonprofits compete fiercely with other nonprofits for resources. With a limited amount of charitable dollars available, nonprofits tend to view each other as competitors rather than as allies working toward a common goal. It's a model that hurts nonprofits — and the people they are trying to serve.

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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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7 Things One Family Foundation Is Doing to End Poverty

March 29, 2019

End_povertyThe Skees Family Foundation (SFF) is just one of the more than 86,000 private foundations in the United States, and with a corpus of just over $2 million, we're consistently the smallest foundation in the room at any peer gathering. Undeterred by the magnitude of the challenge, however, we've invested $1.7 million over fifteen years in efforts to end poverty. Along the way, we've learned a few things about how to leverage our funding:

1. Philanthropy of the hands. We named SFF after the grandparents (my parents) who struggled to feed their seven children but always added a dollar to the church basket and could find an hour when needed for community volunteering. Hugh and Jasmine believed in giving whatever they had: Hugh donated blood to the American Red Cross and volunteered for Habitat for Humanity and the Dayton International Peace Museum, while Jasmine sang in the church choir, crocheted prayer shawls, and visited with surgery and hospice patients. They taught us that so many of things we take for granted — abundant food, clean water, shelter, good health, security — were not ours because we deserved them but because of a combination of luck (being born in a stable, prosperous country) and hard work. They also taught us that all humans are created equal, deserve equal access to respect and opportunities, and are part of one big family. Their legacy — of humility, gratitude, and belonging — may seem idealistic in today's polarized world, but it's the core value on which all of our own families and careers, as well as our philanthropic collaborations, are based.

2. Diversity of viewpoints. SFF unites more than forty family members ranging in age from nine to ninety-one. We are Republicans, Democrats, and Socialists, occupy different places along the gender spectrum, are of many different ethnicities and nationalities, and work at a range of occupations, from nurse and nanny to soldier, salesman, accountant, Web developer, and writer. Each family member is invited to collaborate on an annual grant to an organization that reflects his or her passion for a cause — whether it's self-esteem training for at-risk young girls in California, tutoring and job skills development for young men in Chicago looking to make a new start after time spent in a gang or jail, or business skills training for a beekeeping women’s co-op in Haiti. As well, members of each of our three generations convene biannually to select grant partners with expertise in a specific area — whether it's mental health, veterans' issues, or survivors of trafficking — that are near and dear to their heart. When it comes to our major multiyear grants, we encourage loving debate by members of our all-family volunteer board, with a focus on programs that have the potential to reach the greatest number of people and to create a holistic ecosystem of respect and care.

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What's New at Candid (formerly Foundation Center and GuideStar) (March 2019)

March 19, 2019

Candid logoMarch brings the first days of Spring and the beginning of new things. At Candid, we've been marking new beginnings with game-changing training programs and convenings, attendance at great conferences, and valuable research. Here are some of the recent highlights:

Projects Launched

  • There is no one-size-fits-all solution to capacity building, but a new series of GrantCraft case studies provides funders with networking and collaboration insights that can empower their grantees to invest in capacity building. Each case study has been developed in partnership with Community Wealth Partners and draws on that organization's capacity-building work with funders and grantees. Together, the studies showcase varied approaches to addressing the long-term capacity needs of grantees and provide valuable insights for foundations, consultants, and practitioners. The series also pilots a new approach for GrantCraft in which we tap the wisdom of technical assistance providers in making sure learnings from foundation projects are shared widely.
  • Glasspockets recently hit a milestone, publishing its one hundredth profile of a funder that has publicly participated in the "Who Has Glass Pockets?" self-assessment. To celebrate, Glasspockets has launched a blog series, the "Road to 100 & Beyond," featuring foundations that have played a part in the site reaching this milestone. In addition to helpful examples, the series highlights reflections on why transparency is important, how openness inside foundations evolves over time, and lessons learned.
  • We added a new infographic to the Foundation Funding for U.S. Democracy portal which shows the U.S. dropping to #71 on the 2018 Corruption Perceptions Index — the first time since 2011 the U.S. has fallen out of the top 20. According to the infographic, about 3 percent of overall funding for democracy work goes to open government and transparency efforts. You can check it out and more at foundationcenter.org/infographics.
  • Grantmakers in the Arts published its annual Arts Funding Snapshot in the Winter 2019 edition of the GIA Reader. The snapshot looks at foundation giving for arts and culture for 2016, based on the most recent complete year of data for a set of the largest U.S.-based private and community foundations (by total giving). A webinar that explores the findings is available on the GIA website.
  • GuideStar launched updated APIs with new data and filters, as well as new internal administrative functions, meaning you can now get more data through GuideStar's Premier API that you can't find anywhere else, including nonprofit logos, demographic information, and due-diligence information. You can also search for organizations in new ways, thanks to new filters that enable users to sort by organizations that are in good standing with the IRS and by cause area.

Content Published

In the News

What We're Excited About

  • Out in the community! On March 13, our San Francisco office kicked off a new series of monthly orientations at our nearby Funding Information Network partner location. The staff presentation at the Main Branch of the San Francisco Public Library featured forty minutes of training, twenty minutes of Q&A, and an hour of one-on-one support for those who needed it, drawing a great crowd and generating rave reviews. Candid staff in San Francisco is excited to pilot this new program model, which among other things addresses how we can best partner with our Funding Information Network (FIN) partners in San Francisco (and beyond) in anticipation of our San Francisco library closing for good on June 30.
  • What's that, you say? In 2019, Candid will start shifting its efforts from maintaining regional direct-service locations to focusing more on our 400+ FIN partner sites, which are located in communities across the U.S.as well as several countries. Through deeper and closer collaboration with our FIN partners, we hope to make our Social Sector Outreach services available far and wide — services that include the same great programming and access to tools and expertise you’ve come to expect at our regional locations. Please check out this interactive map to find a FIN location near you. And read the full announcement from VP of Social Sector Outreach Zohra Zori.
  • We are working with Sustain Arts and See Chicago Dance on the first data-driven analysis of the Chicagoland dance sector since 2002.

Upcoming Conferences and Events

Our staff will be attending these upcoming events:

Services Spotlight

  • 252,817 new grants added to Foundation Maps in February, of which 5,762 were made to 4,251 organizations outside the U.S.
  • Leverage insights from Foundation Directory Online to connect to funders: Connect Guide.
  • 12 participants from the Bay Area and beyond participated in a three-day Proposal Writing Boot Camp. Check out all 2019 boot camp dates here.
  • New data sharing partners: Aesop Foundation Australia, Colorado Plateau Foundation, Hogg Foundation for Mental Health, InFaith Community Foundation, Kalliopeia Foundation, Klein Family Foundation, Massachusetts Medical Society and Alliance Charitable Foundation, St Mary's Medical Center,Notah Begay III Foundation, Scriven Foundation, and the Steele-Reese Foundation. Tell your story through data so we can communicate philanthropy's contribution to making a better world! Learn more about our eReporting program.
  • New customers: RoundUp APP, Tides Foundation, University of California, Santa Barbara, California State University, Los Angeles,F.B. Heron Foundation, Barr Foundation, Elevation Web, Nathan Cummings Foundation.

Data Spotlight

  • In honor of Women's History Month, we are highlighting data centered around support for women and girls across our research:
    • Funding directed for women and girls made up 23 percent of all foundation funding for human rights, some $2.1 billion, between 2011-15. Over the course of those five years, funding for women and girls increased by 43 percent, representing the greatest share of funding targeted to a particular population group.
    • Of all international giving by U.S. foundations between 2011-15, 13.8 percent, or $4.8 billion, was targeted to women and girls. And while overall giving increased by 36 percent over the five-year period, funding targeted to women and girls increased 77 percent.
    • Between 2014-15, 13 percent of all funding from U.S. foundations directed to Latin America targeted women and girls, including a grant of $1.3 million over three years from the John D. and Catherine T. MacArthur Foundation to Mexico's National Institute of Public Health in support of research on the promotion of professional midwifery.

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 Foundation Center.

Weekend Link Roundup (March 9-10, 2019)

March 10, 2019

John-Oliver-picture-1A weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Diversity, Equity, Inclusion

"We have reached a moment when foundations must face the ways they may be reinforcing inequality," write Brittany Boettcher and Kathleen Kelly Janus in the Stanford Social Innovation Review. But, they add, there are three things funders can do to improve their efforts around diversity, equity, and inclusion (DEI).

Grantmaking

Candid, PND's parent organization, will be well represented at this year's PEAK Grantmaking conference in Denver. On the GrantCraft blog, Janet Camarena, director of transparency initiatives at Candid, previews the sessions she and our colleague Jen Bokoff will be leading.

Health

On the Commonwealth Fund's Tipping Point blog, Billy Wynne, co-founder of Wynne Health Group, and Josh LaRosa, a policy associate at the firm, look at actions taken by the Trump administration and Congress to rein in prescription drug prices — and find little to cheer about. 

Journalism

The sale of the Newseum building in Washington, D.C. to Johns Hopkins University is a cautionary tale — one that the museum’s leadership must take to heart when and if it ever opens its doors again. Kriston Capps reports for CityLab.

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Weekend Link Roundup (March 2-3, 2019)

March 03, 2019

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

Criminal Justice

There's a gender imbalance in many African-American neighborhoods, and mass incarceration is largely to blame. Mike Maciag reports for Governing magazine.

Economy

"Much has been written about the massive changes that are underway in the nature and future of work, but we still have more questions than answers," writes Ritse Erumi on the Ford Foundation's Equals Change blog. "But the fact remains that the scale of this challenge requires new ideas, frameworks...experimentation" — and, not least, "the participation of workers."

Giving

When is giving $100 million not necessarily a brilliant act of generosity? When the giver is a Wall Street hedge fund manager and the recipient is...Harvard University. Larry Edelman reports for the Boston Globe.

Could the next big thing in philanthropy be the use of donor-advised funds to support marginalized groups and causes such as women's rights, LGBTQ rights, and climate funding? Gender lens expert Katherine Pease, managing director and head of impact strategies for Cornerstone Capital, thinks it could be, and tells Philanthropy Women's Kiersten Marek how it might work.

Leadership

The "default assumption" in the social sector "that people with for-profit or academic backgrounds are somehow better leaders in general, even in fields where they have no experience or knowledge," is, well, a questionable assumption. Nonprofit AF's Vu Le explains.

Nonprofits

What will nonprofit organizations look like in 2025? Nine members of the Forbes Nonprofit Council share their thoughts.

Can the experience of one San Francisco nonprofit tell us anything about why nonprofits, generally speaking, have short lives? Courtney E. Martin, the author most recently of The New Better Off: Reinventing the American Dream, reports for the New York Times

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Five Elements for Success in Capacity Building

February 28, 2019

Capacity-buildingAsk any nonprofit leader and you're likely to hear that investments in capacity make a meaningful difference to organizations. Research backs this up. A study of Meyer Foundation grants found that investments in capacity produced positive, long-term financial results for grantees, regardless of the type of capacity-building grants provided.

Recent research from Candid and the Council on Foundations shows that from 2011 to 2015, U.S. foundation funding for capacity building and technical assistance targeting beneficiaries outside the U.S. jumped from $555.4 million to $900.1 million — a sizable increase but still less than ten percent of total international giving.

There are certain barriers that may help explain why foundations aren't devoting more funding to capacity building. Nonprofits may be reluctant to share information about their capacity-building needs with funders because they're not sure whether such sharing will have repercussions on future funding decisions. We're also learning that because organizations have unique needs, tailored approaches to capacity building tend to be the most effective, but they also make supporting capacity building more resource-intensive for foundations.

While there isn't a one-size-fits-all solution to capacity building, there are commonalities in the approaches that have proven to be successful. Over the years, Community Wealth Partners, a social sector consulting firm, has worked with several foundations and their nonprofit grantees to design, deliver, and evaluate capacity-building programs. Now we're partnering with GrantCraft to publish a series of case studies that provide an in-depth look at five foundations' approaches to supporting nonprofit capacity.

Looking across our work over the years, we have identified five elements we think should be part of any capacity-building effort. We share these recommendations with the hope that foundations factor them into their capacity-building plans and that nonprofits seek out and request this type of partnership from their funders.

1. Commit for the long term. The ability to be successful over the long haul requires ongoing attention to organizational capacity — think of it as a sort of personal healthcare plan for nonprofits.

The Wells Fargo Regional Foundation is one funder that provides long-term support to community development organizations leading neighborhood revitalization initiatives — often involving commitments of eleven years or more. The foundation knows that the work grantees are doing to bring about change at the local level can take decades, and it is committed to ensuring that organizations leading the charge have the skills and financial resources they need to see that change through. To that end, the foundation begins by listening to grantees to understand their needs and then designs and delivers programs to meet those needs as they emerge, including training, coaching, and assistance designed to help grantees build financial sustainability and collaborative capacity.

2. Co-create solutions with stakeholders. A common criticism of capacity building is that it can feel paternalistic. And this is more likely to happen when foundations make assumptions about what grantees need and design services without their input. Capacity building should be grounded in two-way conversation between foundations and nonprofits. Nonprofit leaders know best the context of their work and what types of support are likely to make the biggest difference. Grantmakers should seek out these insights and engage grantees in the design of capacity-building approaches.

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What's New at Foundation Center Update (November and December)

December 18, 2018

FC_logoDoes anyone feel like the end of the year is the busiest time of all? Not only is everyone swamped, but with so much happening in the world and in philanthropy, there's hardly any time to prioritize reflection, learning, and empathy. Here at Foundation Center, we're scrambling to finish this year's projects while also planning some exciting things for 2019.

This is a long update, but I guarantee there's something useful in it for everyone!

Projects Launched

  • In partnership with the Early Childhood Funders’ Collaborative and Heising-Simons Foundation, we launched Funding for Early Childhood Care and Education, an interactive mapping tool that provides a valuable starting place for funders and practitioners interested in supporting the learning and development of young children across the country.
  • In partnership with the Center for Disaster Philanthropy, we launched the fifth edition of Measuring the State of Disaster Philanthropy, as well as a revamped website with an updated dashboard. The new report includes a five-year (2012-2016) trends analysis, adding to the information available on disaster giving and enabling philanthropists, government agencies, and NGOs to better coordinate their efforts and make better decisions about support for effective disaster response and assistance. You can view all these resources at: disasterphilanthropy.foundationcenter.org.
  • We launched the Barr Foundation Knowledge Center, which features key learnings and work from the Barr Foundation and their partners aimed at maximizing impact in their issue areas and the field more generally. Powered by our IssueLab service, the collection includes publications and resources that are free to browse and download.
  • In partnership with Hispanics in Philanthropy and Seattle International Foundation, we released a new report, U.S. Foundation Funding for Latin America, 2014–2015. This two-year analysis updates seven years of collaborative research with a multiyear analysis designed to help civil society leaders identify long-term trends in the region and better target their resources. With additional analysis on Central America, the report was highlighted at the 2018 Central America Donors Forum in El Salvador.
  • We added a new feature on YouthGiving.org, Causes: Youth In Action! The new pages provide an in-depth look at how youth funders are approaching critical issues in the world today. And while there are lots of causes around which youth are energized, the new feature focuses on three to start — Environment, Immigration, and Mental Health — with each page showcasing current funding data, ways youth can get involved, and stories from youth highlighting their work to effect change.
  • We released new research in partnership with the William and Flora Hewlett Foundation that maps the composition of and support for the complex ecosystem of nonprofit and philanthropic infrastructure organizations around the world.
  • We launched new dashboards on the Foundation Funding for U.S. Democracy site, a nonpartisan data visualization platform for anyone interested in understanding philanthropy's role in funding U.S. democracy. With the new dashboards, the site now provides information on more than 57,000 grants awarded by over 6,000 funders totaling $5.1 billion across four major categories: campaigns and elections, civic participation, government strengthening, and media.

Content Published

Newsworthy Connections

  • In the wake of the midterm elections, we have seen a reinvigorated debate around the role of philanthropy in a democratic society. But what are funders actually doing to support democracy in the United States? At a time of increased scrutiny of foundations, our updated dashboards on Foundation Funding for U.S. Democracy provide a measure of transparency and a partial answer to that question and complement the broader discussion about philanthropy's role in a democratic society. Learn more at democracy.foundationcenter.org.
  • Teleangé Thomas, director of Foundation Center Midwest, was tapped to moderate a televised interview with Anand Giridharadas, author of Winner Takes All: The Elite Charade of Changing the World at the City Club of Cleveland in October.

In the News

What We're Excited About

  • Shifting from presenting data to sharing insights. A great example is this blog post on PhilanTopic written by our own Anna Koob on the intersection of democracy funding and participatory grantmaking — both recent focuses of our work.
  • Our GrantCraft guide on participatory grantmaking guide has been downloaded more than 2,000 times since it was launched in October! We've also received a number of inquiries from funders interested in adopting the practice and are continuing to advance the conversation through blogs, conference sessions, and webinars.
  • If you haven't already, check out the series in PhilanTopic on current trends in philanthropy by Vice President of Research Larry McGill and our Knowledge Services colleagues Supriya Kumar and Anna Koob. The series touches on big picture trends as well as a few of our recent research projects.
  • Foundation Center has officially joined the United Philanthropy Forum, a network of more than seventy-five regional and national philanthropy-serving organizations (PSOs). We’re excited about the exciting joint opportunities that lie ahead!
  • Foundation Center's annual Network Days conference for the center's Funding Information Network partners met the expectations of 93 percent of attendees and was attended by representatives of sixty-four of our partners, including a number from outside the U.S.

Services Spotlight

  • In October, we added 178,992 new grants to Foundation Maps, of which 4,665 were awarded to 2,269 organizations outside the United States. In November, we added 218,139 grants, of which 12,716 were awarded to 5,912 organizations outside the U.S.
  • Foundation Directory Online now includes more than 13 million grants. We've also made improvements to its search functionality and added more robust usage reports.
  • New data sharing partners: Berkshire Taconic Community Foundation; Boyd and Evelyn Mullen Charitable Foundation; Patrick and Aimee Butler Family Foundation; C&A Foundation; Delta Air Lines Foundation; Fichtenbaum Charitable Foundation; New York Women's Foundation, Inc.; People's United Community Foundation, Inc.; People's United Community Foundation of Eastern Massachusetts, Inc.; Pohlad Family Foundation; and David And Claudia Reich Family Foundation. Tell your story through data so we can communicate philanthropy's contribution to making a better world — learn more about our eReporting program.
  • Thanks to a generous grant from Borealis Philanthropy, we added 97 eBooks to Foundation Center's collection, bringing the total number of eBooks available to the public to 179. Since mid-April, when the collection was first made available online, the most-viewed titles have been The Complete Book of Grant Writing: Learn to Write Grants Like a Professional and Nonprofit Management 101: A Complete and Practical Guide for Leaders and Professionals. Check out our free eBooks today!

Data Spotlight

  • Since 2001, youth have made 101 grants totaling more than $475,000 in support of issues related to immigrants and refugees. YouthGiving.org's new cause page focused on immigration aims to help youth (and the adults who support them) to be more strategic in their work by highlighting quick facts and resources from organizations that work on these issues every day.
  • In terms of disaster assistance strategies, 42 percent of dollars awarded in 2016 supported response and relief efforts; 17 percent supported reconstruction and recovery efforts, with more than half of that awarded in support of efforts related to the Flint water crisis; 8 percent supported resilience measures; and 5 percent was allocated to disaster preparedness efforts. Learn more about these strategies and trends at disasterphilanthropy.foundationcenter.org.
  • Since 2011, Foundation Center has documented 57,000+ democracy-related grants. Of those, 11.5 percent totaling some $583 million were directed in support of campaigns, elections, and voting, including support for campaign finance reform, election administration, voter education, and voting access efforts.
  • Did you know funding for nonprofit infrastructure organizations averaged $70.4 million annually between 2004 and 2015? Learn more about the ecosystem of organizations working to support nonprofits, philanthropy, and civil society at infrastructure.foundationcenter.org.
  • Thirty-eight percent of the grant dollars awarded by U.S. foundations to Latin America went directly to recipient organizations in the region, while the rest was awarded to organizations located outside the region. Learn more about funding for Latin America here.
  • Youth have awarded more than $795,000 in support of the environment, including causes such as climate change, outdoor education, and animal welfare. Explore youthgiving.org/learn/causes/environment to learn more about why young people are taking action around the environment.
  • Since January 2018, Foundation Center has hosted more than 15,000 attendees at our in-person events at our five regional offices and registered nearly 30,000 folks for our online classes and self-paced e-learning courses. Check out our ongoing events calendar at GrantSpace. And browse our self-paced e-learning courses and other on-demand courses here.
  • Through our Ask Us chat service, Foundation Center staff have assisted with or answered more than 130,000 questions from the public on topics related to finding grants, fundraising, and nonprofit management.
  • Lastly, we completed custom data searches for the University of San Diego, Geneva Global, the Center for Evaluation Innovation, and the Educational Foundation of America.

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 Foundation Center.

Weekend Link Roundup (December 15-16, 2018)

December 16, 2018

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

Children and Youth

Once a thriving center of industry, Hudson, New York, was hit hard by de-industrialization over the closing decades of the twentieth century. But a recent wave of gentrification has made it a darling of tourists and second-home owners — a renaissance that hasn't benefited all its residents, write Sara Kendall and Joan E. Hunt on the Robert Wood Johnson Foundation's Culture of Health blog. Kendall, a co-founder and assistant director of Kite’s Nest, a center for liberatory education in Hudson, and Hunt, co-director of the Greater Hudson Promise Neighborhood, share some of what they have learned through the Raising Places, an initiative funded by RWJF that has spent the last year exploring ideas about how to create healthier communities that are also vibrant places for kids to grow up.

The Philanthropic Initiative's Robin Baird shares some of the themes related to the critical work of supporting young people that kept popping up at the 2018 Grantmakers for Education Conference in San Diego.

Civic Engagement

Martha Kennedy Morales, a third-grader at Friends Community School, a small private Quaker school in College Park, Maryland, ran for class president and lost, by a single vote, to a popular bot in the fourth grade. Then she got the surprise of her life. The Washington Post's Valerie Strauss shares what happened next on her Answer Sheet blog.

Fundraising/Marketing

On the GuideStar blog, George Crankovic, an experienced copywriter and strategist, shares three fundraising lessons he learned the hard way. 

Getting Attention! blogger Nancy Schwartz shares some advice for development and fundraising folks who want to use stories and photos of clients in their organizations' fundraising materials but also want to be respectful of their privacy.

Continue reading »

Woods Fund Rejects Notion of Philanthropic Risk, Acknowledges Risk of Status Quo

December 03, 2018

Grantees of Woods Fund Chicago are working to move $25 million from Chicago's operating budget to support trauma-focused and mental health services for some of the most marginalized and vulnerable residents of the city. Without the investment, people in areas without city-run clinics may lose access to much-needed healthcare services. Winning the budget fight will save people's lives.

NCRP-2013logo-color-no-taglineSouthside Together Organizing for Progress, better known as STOP, is one of the organizations working to secure the $25 million, and it knows what it takes to win. In 2016, the organization was part of the Trauma Care Coalition, a group of community-based organizations that mounted a campaign demanding that the University of Chicago open a Level 1 adult trauma center in its South Chicago neighborhood.

When one compares the value of an adult trauma center (not to mention a $25 million investment) for a community like the South Side with the $30,000 general operating support grants the Woods Fund has awarded to STOP annually since 2005, one quickly realizes that any risk for the funder is slight.

Yet many funders look at community organizing and advocacy as something too risky for them to support. Yes, strategies that seek to change systems and advance equity can create conflict and challenge powerful individuals and institutions, but they are also the drivers of the kinds of long-term solutions that philanthropy considers its raison d'être. Funders must always remember that the perceived risk of investing in systems change strategies led by marginalized people cannot compare to the actual physical, financial, and emotional risks of grassroots leaders.

The Woods Fund makes a habit of the kind of "risky" grantmaking so many other funders avoid. Its 2013 NCRP Impact Award acknowledged its support for grantees like the Illinois Coalition for Immigrant and Refugee Rights and the SouthWest Organizing Project, which helped win policy changes allowing undocumented immigrants to obtain driver’s licenses.

And the foundation not only shares its power and resources with marginalized leaders through its grantmaking but also in the way it goes about its work. For example:

Continue reading »

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Quote of the Week

  • "GivingTuesday was created in 2012 as a simple idea: a day that encourages people to do good. It has grown into a global generosity movement that inspires hundreds of millions of people to give, collaborate, and celebrate generosity. This is a ritual we especially need today when so much attention is given to what divides us, because generosity brings people together across races, faiths, and political views...."

    — Asha Curran, Chief Executive Officer/Co-Founder, GivingTuesday

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