Transparency Talk

« No Pain, No Gain: The Reality of Improving Grant Descriptions | Main | Rohini Nilekani and husband, InfoSys Founder Nandan Nilekani, Join Giving Pledge »

Glasspockets Find: GuideStar’s Good Practices for Foundations Leads with Transparency and Openness
November 15, 2017

Earlier this year, GuideStar released an informative report, "A Guide to Good Practices in Foundation Operations” that offers tips to eliminate foundation inefficiencies and increase open and responsive grantmaking. The report title emphasizes that a one-size-fits-all “best practices” approach is not appropriate given the unique nature of foundations; it also cautions that this can foster a “one-size-fits-one” culture that creates great inefficiencies for grantseeking organizations, and for the sector as a whole.

At Glasspockets, we are happy to see that transparency topped GuideStar’s list of practices philanthropy should adopt to overcome these challenges.

Download the Report.

In addition to transparency, GuideStar’s good foundation practices cover a range of topics including communications, power dynamics, constituency relations, diversity, and due diligence. Specifically, the report recommends the following tips to eliminate inefficiencies and maximize social sector impact:

  1. Be Transparent to the Public
  2. Be Rigorous—But Remain Respectful of Your Applicants
  3. Be Responsive to Your Constituents
  4. Be Proactive about Diversity, Equity, and Inclusion

“We believe that foundations of all shapes and sizes can apply these practices. We also believe that civic society will be much more efficient, stronger, and more effective if all foundations adopt them,” the report states.

Foundation-good-practices-report coverBe Transparent to the Public

Transparency not only benefits grantseekers and the public, but it also benefits grantmakers. GuideStar shared that grantmakers who are open and transparent are more likely to pursue excellence, and be more responsive to their constituents and public criticism. Another benefit: “The act of transparency can force an organization to be clear about its goals and strategy.” 

GuideStar also highlights how foundations can learn from their peers and develop benchmarks through the Glasspockets’ Transparency Trends tool, which helps foundations compare its transparency practices with others and create a customized report with recommendations.

Be Rigorous—But Remain Respectful of Your Applicants

GuideStar suggests foundations can determine the “health of a grantseeker” by: verifying its eligibility to accept grants; confirming that the nonprofit’s proposal aligns with the grantmaker’s mission; and checking on the grant applicant’s role in the community and the field. However, GuideStar cautions foundations about making unreasonable and overly stringent demands such as requesting redundant information or unnecessary documentation that could potentially impede nonprofits from fulfilling their missions. For example, a foundation could gain information on a grantseeker’s legal status, its impact, and its financial health due to the availability of outside products or check the foundation's current records before requesting that information from the nonprofit.

Be Responsive to Your Constituents

Funders should not overlook the use of staff expertise to inform new directions. For example, staff feedback mechanisms should be in place so that their experience and observations can inform foundation’ strategies and missions. GuideStar encourages funders to use an in-house or third-party survey to gather “staff perceptions of their relationships with managers, whether staffers believe they are empowered to do their jobs, and their perceptions of organizational culture.” GuideStar also states that beneficiary feedback mechanisms represent an under-used but effective means of informing foundation strategy.

Be Proactive about Diversity, Equity, and Inclusion

Funders’ efforts to address diversity, equity and inclusion should be internalized and synthesized as a “keystone value for an organization” and not due to “ad hoc efforts or in response to public campaigns.” GuideStar emphasizes that diversity is essential to maximizing a foundation’s impact on social good because it “encourages innovation, energizes organizations, and widens perspectives.” Diversity should be reflected in the staff from the Board of Directors to line staff.

Moving Forward

In light of change and uncertainty in society, GuideStar notes that foundations continue to play an important role in influencing and empowering change in the social sector. With GuideStar’s insightful and practical suggestions to address inefficiencies and implement good practices, foundations have opportunities to create internal changes that can have long-lasting impact inside and outside of foundation walls. What good practices is your foundation currently implementing, and which good practices will you aim for?

--Melissa Moy

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

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