Transparency Talk

« August 2016 | Main | October 2016 »

September 2016 (5 posts)

California Foundation Data—Now Available At-a-Glance
September 27, 2016

Did you know…

  • California is home to 7,755 foundations that collectively give more than $7 billion?
  • In the last 10 years, giving by California foundations has increased by 90% and assets have increased by 70%?
  • Education, Health, and Environment & Animal Welfare are the top funding priorities favored by California foundations?
  • Statewide, across all regions, Children & Youth is the top population group supported by California foundations?

CA blog image 200x200v2-01The longer I work at Foundation Center, the more I realize how difficult it is for those of us in the social sector to understand the ecosystems in which we work.  Grantmakers and nonprofits evolve their areas of focus, public reporting of current activities takes longer than it should, and keeping up with the latest information takes time.  As a result, all of us, from those with innovative solutions but little experience with fundraising, to those with years of experience who are convinced we are always working with the usual suspects, all at some point realize we could use some current, authoritative data to inform strategies and decisions.

Not surprisingly, the most frequent questions we get from grantseekers and grantmakers alike relate to getting a lay of the overall philanthropic landscape and responding to queries about who are the top funders in a particular field or region, or where a particular foundation ranks in the big scheme of things. 

Thanks to support from The James Irvine Foundation, researching these kinds of key statistics for California institutional philanthropy just got a lot easier with the launch of Foundation Center’s new California Foundation Stats dashboard, which is a free, online tool that allows anyone to access hundreds of charts and tables on the size, scope, and giving priorities of California foundations, as well as giving to California-based recipients by those outside California, lists of top funders by region and issue area, and also includes access to nearly 900 research reports about California-based initiatives, sortable by regional focus. Data about trends in funding specific support strategies and population groups is also included.

California Foundation Stats provides statewide data, as well as regional data tables for nine different regions: Bay Area, Central Coast, Central Valley, Inland Empire, Los Angeles, North Coast, Orange County, Sierra Range, and South Coast and Border.

An exciting aspect of these data tables is that as Foundation Center receives updated grants information from grantmakers as part of the “Get on the Map” campaign effort or as a result of newly available 990 forms, the dashboard will be a living data set that changes to reflect up-to-date information about giving priorities and giving to the state or regions.

Everyone from grantmakers, grantseekers, to academics, advocates and journalists will find the dashboard to be a useful tool to support their work, and one which they will want to bookmark to come back to as the data changes.  The highlighted facts shared at the top of the blog are just an example of the data you can uncover by taking some time with this new tool.  

--Janet Camarena

Free Webinar: What Story Does Your 990 Tell About Your Foundation?
September 22, 2016

What does your foundation’s 990 say about the organization? 

Now that the IRS has started releasing e-filed Forms 990 and 990-PF as machine-readable, open data is available to the public. While this move will spur transparency and openness in the philanthropy field, foundation leaders may be uncertain of how open data and potential public scrutiny of philanthropy may impact foundation programs, staffing and investment management. 

Glasspockets recently partnered with the Communications Network to offer an insightful webinar on the Form 990’s potential risks and vulnerabilities, as well as how to use Form 990 to share the work of your organization. 

The webinar highlights the types of information included on the 990-PF, how the 990-PF data is being used now and in the future, and recommendations on how to communicate your foundation’s work through the 990-PF.

Check out this great webinar!

A Brief Analysis of the Clinton and Trump Foundations
September 13, 2016

(Jacob Harold is GuideStar president and CEO.  He has written extensively on climate change and philanthropic strategy; his essays have been used as course materials at Stanford, Duke, Wharton, Harvard, Oxford, and Tsinghua. This post first ran on the GuideStar blog.)

Nonprofits are a cornerstone of American democracy. They reflect the political diversity of the American people. That diversity is well illustrated by two institutions currently in the news: the Bill, Hillary and Chelsea Clinton Foundation and the Donald J. Trump Foundation.

GuideStar takes no position on elections and we will not comment on Hillary Clinton or Donald Trump as candidates for the presidency. We have, however, been repeatedly asked about the Trump and Clinton Foundations. Accordingly, we would like to offer a few notes of analysis on their structure, size, strategy, and transparency practices.

Clinton_GuideStar-1.jpg

Structure

Let us begin with a comparison of the basic facts. The Trump Foundation is legally categorized as a “private non-operating foundation” whereas the Clinton Foundation is a “public charity.” In simple terms that means the Trump Foundation is meant primarily as a vehicle for distributing grants from the Trump family fortune—although it also accepts funding from other donors. The Clinton Foundation is meant primarily as a vehicle for directly operating programs for the social good—while also making some grants to other organizations. 

Despite these differences, both organizations are, in a (non-legal) sense, “celebrity foundations.” They are seeded by money donated by their founders and also serve as a vehicle for members of the public to demonstrate their support of a prominent person. At their worst, celebrity foundations are vanity projects with negligible impact. At their best, such organizations channel fragmented resources and yield extraordinary impact for society. For example, the Michael J. Fox Foundation is known as one of the most sophisticated players in the fight against Parkinson’s Disease.  

Both the Trump Foundation and the Clinton Foundation are filed under section 501(c)(3) of the U.S. tax code, meaning they legally cannot engage in electoral activity. In general, they appear to have followed this requirement. There is at least one exception, though. The Trump Foundation made one donation to a political action committee associated with Florida Attorney General Bondi. It is not legal for a foundation to make a donation to a PAC; the Trump Foundation has paid a $2,500 IRS fine for this infraction. The the Trump Foundation characterized this as a clerical error although others have described it as a case of "pay-to-play politics." At the very least, this incident indicates insufficient controls and lax managerial oversight.      

Size

One thing is indisputable: the Clinton Foundation is far larger than the Trump Foundation. The latest comparable data from December 31st, 2014 shows the Clinton Foundation with assets of $354 million, compared with the Trump Foundation’s $1 million. The Clinton Foundation had total expenses of $91,281,145, versus $596,450 for the Trump Foundation. The Clinton Foundation had 486 staff compared to zero staff at the Trump Foundation.  

The Clinton family’s tax returns suggest that the majority of its charitable giving has been through the Clinton Foundation. Without access to Mr. Trump’s tax forms it is difficult to know the scale of his charitable activities outside the Trump Foundation. But it does appear that the dollars have not matched the pledges. An investigation by the Washington Post has not been able to validate that Trump has actually donated the money he pledged, instead finding, “Trump promised millions to charity. We found less than $10,000 over 7 years.” In addition, the last donation to the Trump Foundation by any of its trustees—family or otherwise—was in 2008. Indeed, David Farhenthold of the Post has suggested that the Trump Foundation has transformed over the last decade from "standard-issue rich person’s philanthropy into a charity that allowed a rich man to be philanthropic for free."

All told, the data at hand would suggest that the Clinton family has—at least over the last several years—donated more money (and at a far higher proportion of their wealth) than the Trump family.

Similarly, it appears clear that the Clintons have out-raised Trump. The Clintons’ fundraising for their foundation is one aspect of a broader fundraising portfolio totaling $3 billion over the last four decades. This is a remarkable number but they are not alone operating at this level: the Bush family raised $2.4 billion over a similar period. Trump has certainly helped raise money for both charitable and electoral efforts, but the total is undoubtedly less than the Clintons’. 

Fundraising at this scale takes place in a rarefied social circle. Each of these families—the Clintons, the Bushes, and the Trumps—must navigate a tangle of relationships with wealthy individuals. These relationships have caused some to claim that fundraising for the Clinton Foundation compromised Clinton’s role as Secretary of State. There appears, though, to be little evidence to support this claim. The Clinton Foundation signed an MOU in 2008 clarifying that Hillary Clinton would not have a role with the Foundation during her tenure at the State Department. And, indeed, funding for the Clinton Foundation decreased significantly during that period (2009-2013). A fair argument can be made that the Clinton Foundation should have been more aggressive in dealing with the perception of potential conflict. To its credit, the Foundation now proactively shares its key legal and audit documentation and has built a tool on its website to provide an additional layer of transparency about its donors (including both Donald and Ivanka Trump). 

Transparency and Strategy

Transparency is not a guarantee of effectiveness—but, in general, we believe that transparency is correlated with excellence in nonprofits. Transparency indicates an openness to questions and accountability. And, importantly, the act of transparency can force an organization to be clear about its goals and strategy.

Most nonprofits—including the Trump and Clinton Foundations—are required by law to file a regulatory document with the IRS, the Form 990. The 990 provides important baseline information but does not give a full view of the nuances of nonprofit work. Accordingly, GuideStar invites nonprofits and foundations to share additional data. Approximately 128,000 have done so. Some 34,997 organizations have provided enough to get one of GuideStar’s four “transparency seals”; of those, 1,061 have earned the highest level, Platinum. The Clinton Foundation is one of them. The Trump Foundation has provided no additional information and so has not earned a transparency seal. 

Trump-990_final_final.jpg

As a part of achieving a Platinum seal, the Clinton Foundation has provided a set of quantitative metrics about its programs. For example, one metric, “number of farmers benefitting from access to improved agricultural practices, increased yields, and enhanced market access,” rose from 66,124 in 2014 to 114,825 in 2015. Another, the “number of girls and women provided access to job skills training and livelihood support,” rose from 35,587 in 2014 to 48,696 in 2015. The fact that the Clinton Foundation provides such metrics makes it far easier for donors and citizens to meaningfully analyze the institution’s value to society.

The Trump Foundation provides no such metrics. Any analysis must therefore be based on the content of publicly available tax forms. These forms appear to indicate an unfocused generosity. For example, the below sample from the Trump Foundation's 2014 tax return includes grants to the Orthopaedic Foundation, the Palm Beach Opera, the Police Athletic League, Protect our Winters, and the Ronald McDonald House of New York. There is nothing inherently wrong with sprinkling many small grants in unrelated areas. But the Trump Foundation’s approach would certainly not meet the standard of focused, proactive grantmaking commonly called “strategic philanthropy.” 

TF_analysis_3.png 

Conclusion

Both the Clinton and Trump Foundations have been the subject of controversy while seeking to contribute to social good. They are undoubtedly different from each other in size, structure, and openness. Indeed, the two organizations reflect the perceived styles of the two candidates: one systematized, the other improvisational. Donors regularly decide which approach they prefer for their giving. Later this year voters will decide which approach they prefer for their leadership.

--Jacob Harold

Join Us for a Special Webinar: What Story Does Your 990 Tell About Your Foundation?
September 9, 2016

First impressions count.  What does your foundation’s 990 say about the organization?  The IRS recently started releasing e-filed Forms 990 and 990-PF as machine-readable, open data. This move will spur transparency and openness in the philanthropy field. 

It also means that open data is available to the public.  Anyone – from journalists to researchers – can aggregate this open data and make comparisons and correlations about philanthropy at lightning speed.  How will this impact the work of foundations, such as programs, staffing and investment management?

Glasspockets is partnering with The Communications Network to offer a free Sept. 14 webinar.  Through this insightful and engaging webinar, we will teach you about Form 990 sections that present potential risks and vulnerabilities, as well as opportunities to better share your institution’s work. 

You’ll learn:

  • How open data works
  • What the IRS is doing in relation to Forms 990
  • How the 990-PF data is currently used and could be used in the future
  • The types of information included on the 990-PF
  • How to analyze the story your current 990-PF tells about your foundation
  • Recommendations for better communicating your foundation’s work through the 990-PF

Don’t miss out on this free 2 p.m. EST, Monday, Sept. 14, webinar!   RSVP and sign up today.

YouthGiving.org: Opening Up the Power of Youth as Grantmakers
September 7, 2016

(Sarah Bahn is a former Foundation Center knowledge services fellow. She is currently pursuing a Bachelor of Arts in peace and justice studies at Tufts University. A version of this blog first ran on the GrantSpace blog.)

SarahbahnWhen I enrolled in the “Experimenting with Philanthropy” course at my college, I had the opportunity to work with a board of my peers to distribute $10,000 to local nonprofits. After so many years of being a dedicated supporter of the nonprofit sector—from childhood bake sale fundraising to volunteering at homeless shelters and completing summer internships—I finally felt like I was playing a real, powerful role in the social sector. I only wish I had known to get involved with grantmaking sooner.

Engaging youth in grantmaking increases their agency and leadership skills while also bringing much needed fresh perspective to the field. After the course, I became passionate about the need for young people, even children and teens, to act as real leaders in philanthropy.

BREAKING NEWS: They already are! When I started interning at Foundation Center this summer, I dove in to help with the launch of YouthGiving.org, a website that gathers and shares information about the youth giving movement so that young changemakers, and the adults who support them, can access amazing tools for youth grantmaking, like:

  • A funding map tracking youth-driven grants around the world
  • A program directory with over 800 youth grantmaking programs
  • Hundreds of resources about engaging youth in philanthropy
  • News about the movement, upcoming events, blog posts from experts, and LOTS MORE!

If this information had been easily accessible in this way when I was younger, I would have known that there are at least 14 youth grantmaking programs where I grew up (Washington state), 35 in Massachusetts where I attend school, and hundreds more around the world! It turns out that there are A LOT of people who are also passionate about young people being leaders in the social sector. Check out the Program Directory to find youth giving programs where you live.

“ Youth grantmaking is not just a cute group of kiddos running a lemonade stand for charity, although that's great, too!”

Thanks to YouthGiving.org making this philanthropic movement more transparent, the whole world can now see that there are tons of young people who are making real, tangible change in their communities. In fact, youth have made more than $14 million in grants since 2001 (check out grants data on the Funding Map) -- youth grantmaking is not just a cute group of kiddos running a lemonade stand for charity, although that's great, too!

YouthGiving.org connects members of the youth giving movement, elevates the stories of incredible young leaders, and  serves to make the field of grantmaking more inclusive as more young people can now see themselves as active leaders in philanthropy.  By expanding knowledge and collaboration about youth giving, more young people can access grantmaking opportunities and those who do will see the impact their peers are making across the globe. 

Transparency for the youth giving movement is critical because it illuminates the ways in which young people have been raising their voices to move the needle on the issues they care about. As this resource gains traction, I hope that other young people like me will know that they’re not alone in thinking that youth deserve a space at the grantmaking table.

-- Sarah Bahn

Share This Blog

  • Share This

About Transparency Talk

  • Transparency Talk, the Glasspockets blog, is a platform for candid and constructive conversation about foundation transparency and accountability. In this space, Foundation Center highlights strategies, findings, and best practices on the web and in foundations–illuminating the importance of having "glass pockets."

    The views expressed in this blog do not necessarily reflect the views of the Foundation Center.

    Questions and comments may be
    directed to:

    Janet Camarena
    Director, Transparency Initiatives
    Foundation Center

    If you are interested in being a
    guest contributor, contact:
    glasspockets@foundationcenter.org

Subscribe to Transparency Talk

Categories