1702 posts categorized "Philanthropy"

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.

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When Less Is More: Cities Unlock the Potential of Micro-Philanthropy

November 05, 2019

Love Your Block_NewarkIn their 2017 book The New Localism, Bruce Katz and Jeremy Nowak make the case that we're at the beginning of a new era: one in which cities and counties must take the lead on new strategies to address pressing social and economic challenges.

But if they hope to be successful, city leaders cannot take on this burden alone: they need to unleash the collective power of their communities. The good news is that a growing number of cities are finding that supporting communities in small ways — for instance, with microgrants — can deliver outsized impact.

Consider the case of the Denver Foundation, which has kept its Strengthening Neighborhoods initiative going for nearly two decades. The initiative provides grants ranging from $100 to $5,000 to fund community-driven solutions that take advantage of the skills and resources already present in a community. Similarly, the Greater Tacoma Community Foundation's Spark Grants program relies on a grassroots leadership model to bring diverse groups together to strengthen local neighborhoods.

The power of small grants to drive change has not been lost on city leaders, many of whom are embracing the potential of micro-philanthropy — and pairing it with a citizen-led ecosystem that supports the effective implementation of those grants. In Newark, we've taken these lessons to heart and are eager to share some of what we've learned about how small grants can help lay a foundation for improved social and economic mobility.

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Changing the World One Scholar at a Time: New Free Resource Launches

October 29, 2019

Today's donors and institutional philanthropists have become more ambitious in their aim to address the world's most pressing problems. How is this trend affecting the world of scholarship philanthropy? At their core, all scholarships aim to change the lives of recipients for the better. Some donors, however, have been able to leverage scholarships to impact society more broadly while improving whole institutions, industries, or communities. From increasing diversity, equity, and inclusion to creating economic opportunity in struggling communities, scholarship programs can be designed to create positive societal change that extends far beyond the individual recipient.

Earlier this month, Candid marked the launch of Scholarships for Change, a website and set of tools designed to help donors increase the impact of scholarship giving. Funded by the Ford and Mellon foundations, Scholarships for Change provides funding trend data, an interactive grants map, GrantCraft case studies, and a curated knowledge center that together serve to orient, inform, and empower donors with a road map to effective scholarship philanthropy.

Scholarships for change

Although supporting scholarships is often one of the first activities a new philanthropist undertakes, there has been no publicly available centralized source of knowledge about who has funded such programs and what they have learned. Scholarships for Change fills this gap by pulling together knowledge and data to guide funders in the practice of scholarship grantmaking and tells the story of how philanthropic dollars are supporting transformative scholarships. Scholarship seekers will benefit from the open access to insights into donor strategies that the platform provides.

Visitors to Scholarships for Change can access:

  • Information about nearly 680,000 scholarships for change made between 2006 and the present. A funding map displays aggregate trend data and scholarship-focused grants with a specific change agenda. You can use the map to identify funding concentrations and gaps as well as key actors in the field, and learn more about what the data has to say about the types of social change most frequently supported by scholarship funders.
  • Lessons learned by others, as captured in a dozen new GrantCraft case studies filled with insights from experienced scholarship funders, including the Ford Foundation, the Mastercard Foundation, the LeBron James Family Foundation, and the Jackie Robinson Foundation.
  • A searchable resource center with research and news providing up-to-date access to knowledge about change-oriented scholarships.

Scholarships have the power to create greater access to education, fuel economic mobility, and lift up communities. We invite you to explore and learn from Scholarships for Change and welcome your suggestions for additions to the site.

Janet Camarena is director of transparency initiatives at Candid. Headshot_janet_camarena

5 Questions for...Bill Cummings, Co-Founder and President, Cummings Foundation

October 18, 2019

Bill Cummings thinks of himself as a serial entrepreneur. At the age of six, he would venture over to a construction site near his parents' house and sell bottles of soda. Decades later, after having worked in sales for a number of national consumer product firms, he bought his first "real" business, a century-old fruit juice syrup manufacturer, for $4,000. Five years later, he sold the company and used the seven-figure proceeds to establish Cummings Properties, which today manages more than ten million square feet of debt-free real estate in suburban Boston. Nearly all the properties are owned by and operated for the benefit of the Woburn-based Cummings Foundation, which was established by Cummings and his wife, Joyce, in 1986, with a focus on providing support for small nonprofits in the counties surrounding Boston. Much of the couple's giving over the years was done quietly and under the radar — a fact that changed when the couple decided to sign the Giving Pledge in 2011.

PND recently spoke with Cummings about his journey from entrepreneur to philanthropist, the evolution of the foundation's $100k for 100 program,  and the impact of the Giving Pledge on his thinking about and approach to philanthropy.

Bill_cummings_square_jpgPhilanthropy News Digest: Your foundation launched the $100k for 100 initiative in 2012 with the aim of providing a hundred nonprofits in the Massachusetts counties of Essex, Middlesex, and Suffolk with grants of $100,000. Did you have any models in mind when you designed the program?

Bill Cummings: No, we had nothing in mind. We had operated independently for a long time, and we had a policy of reaching out to nonprofits that weren't high profile, groups that typically found it difficult to secure foundation support. I suspect it's that way wherever you go in the U.S, and it's a shame, because there are so many small, obscure nonprofits doing marvelous things in their communities. We try to give a few of them in our neck of the woods more visibility. That was our initial goal, at any rate, and it eventually evolved into what, for several years, was known as the $100k for 100 program.

We have since combined that program with our Sustaining Grant program to create what is now a $20 million annual grantmaking program. Separately, both were extremely successful, but we came to realize we were doing two sequential programs to be included in our Sustaining Grants Program, organizations needed to have been included in one of the $100k for 100 cohorts and so we decided it would be better to streamline them. By combining them, we also eliminated the gap year that had been programmed into the Sustaining Grants effort. Under the new model we're able to provide longer-term grants of up to ten years.

PND: What do smaller, local non­profits need to do to prove to the foundation that they're able to handle what, in many cases, is likely to be the largest gift they've ever received?

BC: The $100,000 we awarded through the $100k for 100 program typically was awarded over a period of three to five years. Under the new model, if an organization has an annual budget of $50,000, we can make a big difference in their sustainability if we give them even $10,000 a year over ten years. We're talking about things like food pantries or afterschool day care. Once we know them a little better, we can then determine how much of the overall grant amount should go out at any one time. Initially, we committed to giving out $10 million a year, and it took a while for us to scale up. But now we're paying out considerably more than that.

PND: You and your wife signed the Giving Pledge in 2011. Did that have anything to do with your decision to scale up your philanthropy and be more public about it?

BC: Yes, but it didn't really change our approach or philosophy. Making one's philanthropy more public is one of the goals of the Giving Pledge, and when we joined it wasn't long before an editor at the Boston Globe called and said, "I've never heard of you. How can you be doing all this, and I never knew you existed?" Then she called the Boston Foundation to see what she could learn about us, and they hadn't heard of us, either. She was a little skeptical about us for a while, but we steered her to a few people who knew us, and she did her due diligence. At one point, I recall her saying that she was thinking of calling our foundation "The Billionaires Next Door."

By Giving Pledge standards, we're small. The Cummings Founda­tion has about $2 billion in assets, compared to, say, the more than $50 billion in assets held by the Bill & Melinda Gates Foundation. The first Giving Pledge meet­ing my wife and I attended was a strange experience for us. We looked around the room and at the sixty or so other couples who were representing different foundations and organiza­tions and pretty quickly realized we were probably the least wealthy people there.

After we visited Africa for the first time, we decided we wanted to expand our philanthropic work beyond the three counties here in Massachusetts and decided to support some things in Rwanda. It was reassuring to be able to talk to other Giving Pledgers and be told that what we had seen and learned while we were in Rwanda was accurate, and that it was a good place in which to invest philanthropically. It's that kind of access to smart people, people who have done this and are happy to have us run ideas by them, that makes the Giving Pledge so valuable .

PND: Are you looking at other opportunities in Africa, or anywhere else, for that matter?

BC: For now, we're limiting our international giving to Rwanda. But we've learned about other organizations there through members of the Giving Pledge, and we've encouraged some of them to support organizations there that we're familiar with organizations like Uni­versity of Global Health Equity, which opened its new campus in January. We're also looking at expanding our activities in Rwanda in ways that better connect them to each other. The organizations we support there really could do more working together than alone, and we've encouraged them to apply to us for joint grants. The Kigali Genocide Memorial is one example.

PND: This is a moment of pretty intense political polarization in the United States. Do you have any thoughts about where we are as a country and how we got here? And are you optimistic about the future?

BC: I wish I were more optimistic than I actually am. In general, I'm an optimist, but I'm beside myself with some of the things I see going on in Washington these days. In our company and our foundation, we have always worked to build trust and accountability. Sadly, our country has a chief executive who openly talks about how one can profit from bankruptcy and how it's easy to cheat people. That's not good; that's discouraging. But I'm hopeful we will get beyond that.

I've been traveling a lot over the past year to promote my book. And that has led to some interesting opportunities. For instance, we worked with Harvard Business School recently on a Cummings Properties case study. I applied to the business school as a 21-year-old just out of Tufts and was effectively rejected and told to reapply in two years. So it's great fun, as you might imagine, to have a case being studied at Harvard.

Recently, I gave a book talk to a thousand people in Rwanda. I didn't sell a lot of books, but I was able to give audience members free access to a copy of it on the Internet. I also spoke at the Saïd School of Business at Oxford University and to another eight hundred people at the University of Alabama. Giving a talk like that is a lot of fun, and it helps to promote philanthropy. It's been an interesting sidebar to my career. Yes, the runway is getting shorter, but I don't see any reason to stop looking forward.

Matt Sinclair

Memo to Foundation CEOs: Get a Youth Council

September 30, 2019

Calendow_presidents_youth_councilSeven years ago, we launched a President's Youth Council (PYC) at the California Endowment, and it seems like a good time to tell you that the young people who've served on the council over those seven years have significantly influenced our programming as a private foundation, been a source of reality-checking and ground-truthing on how our work "shows up" at the community level, and have substantially increased my own "woke-ness" as a foundation executive.

Before I get into the details, I'd like to briefly share why we decided we needed a President's Youth Council and how it works: In 2011, our foundation embarked on a ten-year, statewide Building Healthy Communities campaign that was designed to work in partnership with community leaders and advocates to improve wellness and health equity for young people in California. We had already been using a variation of a place-based approach in our work, and so we selected fourteen economically distressed communities to participate in the campaign — some urban, some rural, and all, taken together, representing the complex diversity of the state.

At the time, I was aware not only of the privileged position I occupied outside my organization, but also of how sheltered I was as a chief executive within my organization. More often than not, I received information about the effectiveness and impact of our work in the form of thoughtfully crafted memos from staff, PowerPoint presentations, and glossy evaluation reports filled with professionally designed charts and graphics. Even when feedback in the form of recommendations from consultants or comments from the community came my way, it was all carefully curated and edited. As I had learned — and this is especially true at large foundations — when members of the community get "face time" with the CEO, it is a carefully managed and considered process.

Being at least vaguely conscious of these issues early on in our Building Healthy Communities work, I wanted to ensure I would have some regularly calendared opportunities to meet face-to-face with young leaders from the communities we were serving. So, we solicited nominations from grantee-leaders in each of the fourteen program sites, and a President's Youth Council, featuring mostly young people of color between the ages of 17 and 21 and of varying sexual/gender orientations, was born.

Seven years later, here's what it looks like.

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Overcoming the Risk of a Rural Census Undercount

September 18, 2019

062319NorwoodColo_008The 2020 Census is the single most important event for rural America in recent history. Its impact will be felt for decades to come. And while most of the focus of the public discussion around the census has been on the prospective citizenship question (rightfully so), there also are fundamental changes in census methodology hidden in the weeds of the process that have the potential to diminish federal and state investment in rural America by hundreds of billions of dollars.

Below we address some key engagement factors: community trust and online versus in-person census data collection, and examples of private foundations working on a complete count.

Hundreds of billions of dollars reflect the enormous importance of the census for apportionment of everything from congressional seats, to U.S. Department of Agriculture (USDA) allocations, to Medicaid and SNAP (food stamp) payments.

As an example, just six modestly sized federal programs under HUD and USDA that currently represent $25 billion in federal investment might change dramatically based on 2020 Census counts. A rural undercount will also reduce funding for foster care, Title 1 grants, and free or reduced lunches for high-poverty schools, Head Start programs, energy assistance for low-income households, and much more.

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5 Questions for...Chera Reid, Director of Strategic Learning, Research and Evaluation, Kresge Foundation

September 16, 2019

As director of strategic learning, research, and evaluation for the Kresge Foundation, Chera Reid leads Kresge's efforts to use data to inform its grantmaking and social investing strategies, partner with grantees to ensure that the foundation's evaluation efforts support organizational and community needs, and shape how the foundation advances the fields in which it works. Previously an officer in Kresge's Education program, Reid has long focused professionally on issues of access and equity in institutions and systems and in her current role is leading the foundation's efforts to apply an equity lens to its evaluation activities, place-based practice, and collaborations across different fields and sectors.

After earning a bachelor's degree in English and African American Studies at the University of Virginia and a master's from the University of Michigan, Reid served in leadership positions at the New York branch of America Needs You and the Phillips Academy Andover Institute for Recruitment of Teachers while earning a PhD in higher education from New York University.

PND spoke to Reid about Kresge's transition from a foundation known primarily for making capital challenge grants to one focused on using a variety of tools to help grantees build stronger communities, the challenges of equity work, and how she stays upbeat and positive in challenging times.

Headshot_chera_reidPhilanthropy News Digest: You were named Kresge's first director of strategic learning, research, and evaluation in 2015, when Kresge was just a few years into its transition from being a foundation known primarily for making capital challenge grants to one focused on helping grantees build stronger communities. What role did the Strategic Learning Research, and Evaluation program play in that transition?

Chera Reid: When the foundation was primarily a capital challenge grantmaker, and we'd ask whether a project had been completed, a grantee would send in a photo of the completed physical structure. The other piece of it was financial. Kresge only released capital challenge grant funds when campaigns were nearing their finish line, which went a long way to ensuring the success of the grant.

The work I've been doing since I've been in my current role is about creating an intentional, learning organization. By virtue of that charge, the work I'm engaged in is about organizational culture change and about learning not just for the sake of feeling good about ourselves and to say we're doing it — it's about action and informing our decision making going forward. And accountability now is more about holding ourselves accountable to people in the communities in which we work and holding one another accountable to our mission.

What has changed at the foundation as we moved to a more strategic approach over the last decade or so is that we have expanded our view of our role. Kresge as a capital challenge grantmaker was an excellent thing. We were brilliant at doing one thing: helping to build libraries, hospitals, and educational institutions. But today we're using a more complete toolkit of philanthropic resources. And that means we are table-setting, we're bringing actors together from disparate fields, from the edges of practice and at the neighborhood level, and saying, "How about it? What do you think you can create together?"

We're also bringing different forms of capital to the table and saying, "How can we remove some of the risk associated with this work? Can we blend different forms of capital to get to the root of what people and communities are saying are their most pressing challenges? And how can we put learning, evaluation, and research to better use?" They’re all tools in our toolkit. By being intentional about using learning and evaluation to inform a more strategic approach to philanthropy, we are committing to doing all the things that philanthropy can and should be doing to drive change.

When Sebastian S. Kresge started the Kresge Foundation in 1924, his directive as to what it should do was really broad: promote human progress. Today, it is about expanding opportunity for low-income people in cities and doing it with an equity lens. And in 2024, the year of our centennial, we'll be asking ourselves, "How did we do? What can we point to that shows the distance we have traveled as an organization in expanding opportunity for low-income people in America's cities? Have we really done it with an equity lens? What is the path we want to chart institutionally as we look beyond 2024." Learning and evaluation are a really important part of that conversation, in that they help us hear the story, give us space to be more reflective, and enable us to look across different bodies of work and imagine the future we are trying to shape and contribute to.

PND: From an evaluation and learning perspective, what are the primary challenges of the foundation's equity work?

CR: Positing that we need to do that work through an equity lens has not been the issue, though that most certainly is not the case across the philanthropic sector. But for Kresge, bringing an equity lens to our practice has been a bridge. It resonates with other grantmakers and helps us come together and say, "Okay, what is it that we really need to learn?"

We try to incorporate the principles of equitable evaluation in whatever we’re working on. Evaluation in service of equity is about asking questions that get to root causes. It's about participant orientation and ownership, and also about ensuring that the work is multiculturally valid.

We do not have it all figured out. It's a challenge. As a sector, philanthropy has been able to work in ways that are not about evaluation in service of a bigger goal; we've been allowed to make evaluation about ourselves. But that is changing. And one thing adopting an equity frame means is that the many consultants we work with as evaluators have a long way to go to meet our goals and aspirations. What do I mean by that? We need more people who bring an equity lens to evaluative thinking, work, and consulting. In some ways, we've created that challenge for ourselves because in the past we did not ask for that kind of skill set. But we need more examples, and we need more of our peers to come forward and say, "This is what we’re trying to do and model." There is definitely a sense of urgency around the challenge within the foundation.

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Museums Should Lead in Socially Responsible Investing

September 11, 2019

Plant-Growing-In-Savings-CoinsMuseums and galleries all over the world have been grabbing headlines lately as a result of controversies over the source of funding from donors and trustees.

Artists and members of the public have objected to sponsorship from companies and individuals linked to the sale of opioids, tobacco, fossil fuels, private prisons, or the manufacture of tear gas. But the outcry overlooks a bigger opportunity for endowed cultural institutions to signal their values: how they invest.

The financial investments of four museums that have been criticized — the Metropolitan Museum of Art, the Museum of Modern Art, the Solomon R Guggenheim Museum, and the Whitney Museum of American Art — total more than $6 billion. Turning down a few million dollars in individual donations because of where the money comes from might feel good. But it ignores how these institutions invest the billions of dollars they already control.

Cultural institutions generally invest in public equities. It is reasonable to assume at least a portion of their public equity allocation is in an index fund, such as the S&P 500, which includes the very same types of companies — tobacco, weapons manufacturing, and fossil fuels — that are objected to in connection with controversial donors.

Yet there are hundreds of alternative vehicles that could allow for values-driven investing — including index funds such as the MSCI KLD 400 Social index and the S&P 500 ESG index. These exclude companies that produce negative social and environmental impacts. Then there are exchange-traded funds aligned with issues of race and social justice, gender equity, alternative energy production, and the UN sustainable development goals. In fact, in the U.S., $12 trillion is currently invested for positive environmental and social impact through funds such as these — one-quarter of all assets under management. So why aren't cultural institutions investing in these opportunities?

Mention the topic of socially responsible investing and people often ask whether investors sacrifice financial returns when they introduce factors such as environmental stewardship and good governance into investment decision making. The answer is no.

In fact there is a growing body of evidence demonstrating that socially responsible investments outperform conventional ones. Wealth advisers such as Perella Weinberg and impact investors as diverse as the state of North Carolina and the Russell Family Foundation are sharing their evidence and portfolio experience to prove it.

Cultural institutions should be at the forefront of socially responsible investing, and this is where their boards can help. So far, it is small arts organizations that are leading the way. Over the past few months, Building for the Arts and Creative Capital each invested in the NYC Inclusive Creative Economy Fund, the first impact investment vehicle targeting low-income communities. And in June, the Souls Grown Deep Foundation committed its entire $1 million endowment to an impact investment strategy focused on promoting racial and social justice and economic opportunity in the arts.

These three organizations see their investment portfolios as another tool to advance their mission. Larger operations such as the Ford Foundation, the Heron Foundation, and the Rockefeller Brothers Fund have also demonstrated how to align the endowment of a nonprofit institution with its values.

Science and natural history museums including the Field Museum and the American Museum of Natural History have divested from fossil fuels in alignment with their stance on climate change. The time has come for our largest cultural institutions to demonstrate similar leadership.

Let's bring the best of Wall Street and Museum Mile together.

Headshot_laura_callananLaura Callanan is founding partner of Upstart Co-Lab and former senior deputy chair of the National Endowment for the Arts. Maxwell Anderson also contributed to this article, which originally appeared in the Financial Times and is republished here with permission.

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.

Charitable Gift or Bribe? Lori Loughlin's Legal Case Rests on Dubious Claim

September 04, 2019

USC_gateLast week, Lori Loughlin, the actress, and her husband, the designer Mossimo Giannulli, may have provided a glimpse of their defense strategy when they appear in court in October in connection with payments they made, say prosecutors, to help their daughters gain entrance to the University of Southern California. Their likely argument: the money wasn't a bribe; it was an act of altruism.

Loughlin's case is part of a larger — and by now, infamous — scandal involving thirty-four parents who were charged last March with paying money to a third party to "facilitate" their kids' admission to elite universities. Fifteen of those parents have pleaded guilty to fraud. One of them, actress Felicity Huffman, has pleaded guilty to paying $15,000 to have her daughter's SAT exam score artificially inflated and is scheduled to be sentenced on September 13. Unlike Huffman, Loughlin and Giannulli, who parted with $500,000, are planning to fight it out in court.

Loughlin's attorney, William Trach of Latham & Watkins, contends the money the government calls a bribe was really a charitable donation. "Checks were made out to USC Athletics and to a fund at USC," he says. "Those checks were cashed by USC." Trach’s logic, apparently: the money was sent to a tax-exempt charitable organization, and the organization put the money into its bank account; therefore, it was a charitable contribution. (Yes, the University of Southern California, with its $5.5 billion endowment, is a tax-exempt charitable organization.)

Money also traveled through another charity, Key Worldwide Foundation (KWF), which was established by William "Rick" Singer, the man behind the admissions scheme. Singer has pleaded guilty to racketeering charges and is now cooperating with prosecutors. We will likely hear more about KWF during the trial, but one question the prosecution should ask is how much Loughlin and her husband donated to entities not caught up in the scandal. Since their lawyer contends that their donations — that's plural — were in support of opportunities for underprivileged students, it might be helpful to know if the couple supported other, similar causes. In fact, it would provide context for their claim of generosity to know how charitable in general the couple has been over the years.

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What's New at Candid (August 2019)

September 03, 2019

Candid logoAlthough it’s still officially summer, we've been busy here at Candid, releasing new research, continuing the consolidation of our regional offices, expanding our Funding Information Network, and more. If there's anything you'd like me to cover in these monthly updates, shoot me an email. My colleagues and I are anxious to hear your thoughts!

Project Highlights

  • In the wake of tragic mass shootings in California, Texas, and Ohio and newly urgent conversations about gun control and the Second Amendment, understanding the full impact of gun violence in America is imperative. Our IssueLab colleagues have created a Gun Violence Special Collection that brings together evidence and insights from nonprofits, foundations, and research organizations working to understand that impact. In 1996, the U.S. Congress passed an amendment to a spending bill that banned the Center for Disease Control (CDC) from using any of its budget for gun violence research, leading to a dearth of data that could help inform the gun control debate. In the more than twenty years since, the social sector has produced over two hundred reports that explore policy models, provide data and statistics, and examine a range of sub-topics. Feel free to reach out to the IssueLab team if you have questions about the resources in the collection.
  • The surge in fires in the Amazon basin is a fresh reminder of the destructive impact that humans can have on ecosystems that are critical to life on the planet. Philanthropy continues to support efforts to ensure the right to a clean, healthy, and sustainable environment, including the rights of Indigenous, marginalized, or other communities to the unspoiled natural resources that enable their survival; the right of Indigenous and marginalized communities to share in and determine the distribution of lands, territories, and resources; and the protection of these natural resources from destruction, overdevelopment, and/or pollution. To learn more about what funders are doing to support the environmental and resource rights of Indigenous and marginalized communities, check out this dashboard courtesy of the Advancing Human Rights initiative, a collaboration between Candid and the Human Rights Funders Network, in partnership with Ariadne: European Funders for Social Change and Human Rights and Prospera: International Network of Women's Funds.
  • Candid and the Human Rights Funders Network also have released a report that details foundation grantmaking for human rights globally. Conducted in partnership with Ariadne and Prospera, Advancing Human Rights: 2016 Key Findings highlights the scale and scope of funding for human rights, and sheds light on tough questions such as: Where is the money going? What are the gaps? And who is doing what?
  • CF Insights, a service of Candid, has launched the 2018 Columbus Survey Results Dashboard — the most up-to-date, comprehensive data set focused on financial trends and operational activity among community foundations in the United States. The data and findings provided in the dashboard are based on FY2018 survey responses provided by 251 community foundations and are supplemented by publicly available data.
  • Be sure to check out the new infographic on Foundation Funding for U.S. Democracy that looks what foundations to combat the decline in local journalism.

You can learn more about other projects we’ve been working on in the Gain Knowledge section of our website.

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Beyond the Dollar: Catalytic Philanthropy = Funds + Leverage

September 02, 2019

Coins-and-seedlingsFor as long as I have been working in the philanthropy field, New Zealand has been regarded domestically, and in international polling, as one of the most generous countries in the world. Based on comprehensive data captured in the Gallup World Poll for the period 2013-2017, last year's CAF World Giving Index placed New Zealand third on the list of most generous countries, behind Indonesia and Australia and ahead of the United States (fourth place) and the United Kingdom (sixth).

Each country is ranked for three behaviors:

  • Helping a stranger
  • Donating money
  • Volunteering time

Historically, these have been the ways we think about charity and philanthropy: giving by way of money or service, either in an immediate sense or, using a vehicle such as a charitable trust, donating money to specific causes or recipients in perpetuity.

Catalytic philanthropy is different, both more sophisticated and more focused on collaboration and measurement of return on investment, and is based on maximizing positive impact. Here is what it means for people and organizations in New Zealand:

1. Catalytic philanthropy represents a new approach to an age-old practice. The term describes the use of influence and leadership to leverage every dollar to the max. For instance, an organization with a corporate social responsibility program (say, an annual campaign in support of a bold-name charity) could be more strategic about increasing the impact of its giving by engaging with government and pressuring it to invest more in the charity’s area of interest, or by working harder with partners to garner more support for the charity.

In 2019, the scale of social need and urgency of the global climate crisis demands that we leverage our ability to give in much more practical and commercial ways than we have before. This is where catalytic philanthropy comes in: going beyond money to bring to bear every resource and partnership available to advance a cause or address a problem.

2. Silos are so twentieth century. The traditional model of philanthropy was adapted from the conduct of dynastic families like the Fords and Rockefellers in the early twentieth century. In the twenty-first century, the transparency demanded of charitable activity, combined with clear-cut social and environment concerns, gives the advantage to philanthropists and organizations that can think laterally and find inventive ways to extend their reach.

An example of this model is Foundation North, which employs what it calls "venture philanthropy" to engage other interested organizations and communities in finding solutions to complex social challenges. No longer is a single charity "responsible" for raising cancer awareness or cleaning the Hauraki Gulf; these days, we understand that we’re all in it together and that answers and funding have to be leveraged from a range of players to create long-term and sustainable impact.

Innovation is key to continually improving the impact philanthropy has on its intended cause or recipient. Under our founder Andrew Barnes' leadership, Perpetual Guardian established its own foundation, enabling donors, including those with more modest resources, to amplify the impact of their giving.

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5 Questions for...Kashif Shaikh, Co-Founder and Executive Director, Pillars Fund

August 27, 2019

Kashif Shaikh is co-founder and executive director of the Chicago-based Pillars Fund, a grantmaking organization that invests in American Muslim organizations, leaders, and storytellers in order to advance equity and inclusion. Established in 2010 as a donor-advised fund at the Chicago Community Trust with investments of $25,000 each from five Muslim-American philanthropists, the fund became an independent organization in 2016 with seed funding from the W.K. Kellogg Foundation. To date, the fund has awarded $4 million in grants to small and midsize nonprofits to help ensure that American Muslims are able to thrive and live with dignity — and continue to have opportunities to contribute to civil society and public discourse.

PND asked Shaikh about the role of Muslim philanthropy in American society, the importance of supporting "culture work," and the fund’s current priorities.

Kashif_Shaikh_pillars_fundPhilanthropy News Digest: Your website states that the fund’s grantmaking "is inspired by Muslim tradition, which includes respect, conviction, sacrifice, action, and generosity." Why don't Muslim philanthropies and charities have a higher profile in the United States?

Kashif Shaikh: Giving of one's wealth, time, or effort is deeply embedded in the Muslim tradition. And in the United States, the earliest recorded example of Muslim giving was by enslaved Muslims, who in the nineteenth century distributed saraka in the form of small cakes to children on plantations off the coast of Georgia, continuing a tradition from West Africa. The word saraka is closely related to the word sadaqah, the Arabic word for "charity." This is important to acknowledge as we try to build on what generations of Muslims have already done in this land.

Three-quarters of Muslims in the United States today are immigrants or children of immigrants, and half of all U.S. Muslims arrived after 1970. Over the last fifty years Muslim communities put a lot of resources into building mosques and other communal spaces as they put down new roots here. A significant portion of this giving happened through informal networks rather than through established foundations and funds.

More recently, Muslim giving has been gaining greater visibility for a number of reasons. Many of our philanthropic and nonprofit institutions are relatively new to the scene. Among our grant applicants, 20 percent of the Muslim, Arab, and South Asian-led organizations were founded before September 11 and 80 percent were established on or after September 12, 2001. This tells us that many charitable efforts in our communities have been launched in response to the crises we faced. And, we've seen another burst of need  — as well as innovation — since the 2016 general election, which signaled another moment of crisis and "profiling" of our communities.

Unfortunately, many philanthropic efforts led by people of color have been historically overlooked and undervalued in this country. "Our issues" have not been seen as relevant to American society overall. More recently, however, attacks on the civil and human rights of Muslims in the U.S. have signaled a broader erosion of rights across communities. It has become increasingly clear to us that Muslim communities are going to have to coordinate our efforts to defend ourselves against these threats and work more closely with other impacted communities to protect ourselves.

At Pillars, we've recognized the need to target our resources, which includes funding those who are at the forefront of some of these challenges. As Muslims have entered more civic spaces and joined more networks and coalitions — and have been recognized for our work in doing so — our profile has been rising. We are intentional about raising our visibility because it is important for everyone to understand the role Muslims have played, and continue to play, in bettering society, whether through our philanthropic, cultural, or civic contributions.

PND: The fund works to achieve its goals through three program areas — grantmaking in support of "rights, wellness, and understanding"; empowering American Muslims to tell their own stories and ensure more accurate and authentic representations of Muslims in the media and culture; and providing thought leadership to foundations, think tanks, media, and civic leaders. Why is culture-focused work — for example, the multiyear public arts and oral history project you funded at Brooklyn Historical Society — so central to your efforts?

KS: Culture plays a tremendous role in shaping our beliefs about ourselves and others. Unfortunately, many people in the U.S. still hold a low opinion of Muslims, and much of that is rooted in the damaging narratives we’ve all been exposed to through popular culture, especially film and television, over many decades. If we want to shift how people perceive Muslims, we can't afford to ignore culture. Brooklyn Historical Society’s Muslims in Brooklyn oral history project, led by historian Zaheer Ali, empowers the borough’s Muslim communities to narrate a piece of New York City history. By listening to their stories, told in their own words, anyone can learn how Muslims have helped shape one of the world's most influential metropolises.

There is so much power in crafting and sharing your own story, which is why we are inspired by the oral history project. There is also a vast untapped reservoir of Muslim storytellers that we want to help organize and nurture. Muslims are one of the most racially and ethnically diverse faith communities in the U.S., and only when we appreciate the many perspectives within our community will we begin to understand what it means to be a Muslim in America. For example, the perspective of a newly arrived Syrian refugee could not be more different from the perspective of a fourth-generation African-American Muslim. We want to help create space to honor and share all of these stories.

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A Tale of Two Donations

August 15, 2019

Charitable-giftEarlier this year, I made a $15 donation to a small nonprofit and also pledged a planned gift, potentially worth six figures, to a huge charity. Guess which organization did a better job of followup?

Prompted by one of those "Thanks to a generous donor, all donations made TODAY will be matched!" appeals, I made the $15 donation online. As with most online donations, within minutes of pressing the "Donate" button I received an acknowledgment of my support.

But what was truly astonishing was what happened over the next two weeks: not only did I receive a written thank-you personally signed by the executive director by regular mail, I also received a phone call from a staffer thanking me for my generosity.

The potential six-figure planned gift was made in person, in the charity's office. I was there for a meeting and learned by happenstance that every time the organization was mentioned in a will or named as a beneficiary of a retirement fund, an anonymous donor would make a substantial gift to the group. I had long admired the charity's work, had made numerous gifts in support of its efforts in the past, and years ago had designated a percentage of my retirement account, upon my death, to its cause. With pleasure, I signed the pledge card, knowing that my potential future gift would also have an immediate impact on the organization's bottom line. I was thanked in person for my gift and was told I'd be invited to an event for those who had committed to making similar gifts.

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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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