Transparency Talk

Category: "Accountability" (79 posts)

How Philanthropic Is the Trump Cabinet?
January 11, 2017

(Brad Smith is president of Foundation Center.)

Here are the facts, decide for yourself. That may sound like a radical proposition in what some–after a bitter election season dominated by spin, lies and fake news–are calling a "post-truth world," but it is what we do at Foundation Center. In releasing "Eye on the Trump Cabinet" as the newest feature of Foundation Center's Glasspockets website, our goal is track the charitable giving related to Cabinet nominees and their nonprofit Board service.

Explore Eye on the Trump Cabinet

Eye on the Trump Cabinet shows that, taken as a whole, the Cabinet nominees are by no means strangers to philanthropy.

There has been a lot of speculation among philanthropic foundations about what the new Administration might mean for the sector. Will lower tax rates reduce charitable giving? If government retreats from social programs will foundations be expected to take up the slack? Will new regulations be introduced to somehow influence the kinds of priorities foundations support? At the extremes I have heard people assert: "these people (the new Administration) don't know anything about philanthropy," and fielded a question from a Danish reporter who wanted to know if the controversy over the Clinton and Trump foundations would lead to the end of transparency in the sector. But what do the data tell us?

Explore Eye on the Trump Cabinet

"Eye on the Trump Cabinet" shows that, taken as a whole, the Cabinet nominees are by no means strangers to philanthropy. Between them, they are related to 25 different foundations. By "related" we mean foundations run by cabinet nominees or family members, in addition to ones in which they might have been affiliated or served as Board members. To learn more about those foundations, click on the links to their profiles in Foundation Directory Online and their 990 tax returns to learn about their operating expenses, specific grants and investments. Similarly, the data show that Cabinet nominees have served on the boards of nearly 50 nonprofit organizations focusing on education, veterans' affairs, health, and children, to mention a few.

Explore Eye on the Trump Cabinet

Through this lens, perhaps most notable among the Cabinet nominees is Betsy DeVos, someone who comes from a strong family tradition of philanthropy and has a significant foundation (the Dick and Betsy DeVos Family Foundation) together with her husband. Moreover, until recently, she served as Board Chair for the Philanthropy Roundtable, a membership organization of foundations and donors that is a critical part of the infrastructure that upholds institutional philanthropy. Among the core beliefs of the Roundtable are that philanthropic freedom is essential to a free society and that voluntary private action offers solutions for many of society's most pressing challenges.

Explore Eye on the Trump Cabinet

Foundations and nonprofits cannot (and should not) take the place of government primarily because their resources, while significant, are dwarfed by federal and state budgets in addition to those of the business sector. On the contrary, their limited resources are valuable precisely because it is their non-profit, independent status that gives them the freedom to innovate, take risks, support controversial causes, stick with tough challenges for the long term, and provide core support to critical societal institutions.

Explore Eye on the Trump Cabinet

The relationship between government and the philanthropic sector can be one of collaboration, disagreement, or both, but it has been part of the fabric of American democracy for more than 100 years. Foundation Center, itself a nonprofit, was born in 1956 out of McCarthy-era hearings accusing foundations of supporting un-American activities. The sector's response was to create Foundation Center as a trusted public information service that could prove it had nothing to hide. We believe that transparency will, in the long run, always prove its value. How philanthropic is the new Administration? Explore Eye on the Trump Cabinet, come to your own conclusions, wait, watch, and, above all, participate.

-- Brad Smith

The Case for Opening Up Foundations Meetings to the Public
December 6, 2016

(Caroline Fiennes is Director of Giving Evidence, and author of It Ain't What You Give. She co-authored a recent report investigating the role open meetings play in increasing transparency. A version of this post was originally published on Giving Evidence, and has been reposted here with permission.)

Caroline FiennesAll charities and charitable foundations exist to serve the public good. Most of them are subsidized by the public through various tax breaks. Any publicly-listed company must have a meeting at least annually at which the directors are held accountable to the people whose capital they deploy. In over 15 years in this "industry," we’ve only encountered two charities/foundations in the UK which have meetings at which the public – or the intended beneficiaries – can know what goes on. The 800-year-old fund, City Bridge Trust in London, lets anybody observe its decision-making meetings, and Global Giving UK has an annual general meeting (AGM) at which anybody can ask anything. Why don’t more?

It’s hard to be accountable to people, or to hear from people, if they’re not in the room. So we wondered how many charities and foundations have public meetings.

Giving Evidence simply telephoned the 20 largest charities and foundations in each of the UK and the US and asked whether they ever have any meetings which are open to the public, and whether the public can ask questions. Of the 82 organizations we asked, only two have any meetings in public. None allows the public to ask questions.

Open-meetings-coverThis is about accountability and transparency to the people who provide subsidy and to the people the charities and foundations exist to serve.

Suppose that a nonprofit is treated poorly by a grantmaking organization. How can you tell the management of that funder of your experience? Or suppose that the foundation’s strategy could be strengthened by knowledge that you have about a particular population group or region? How can you offer your expertise? Or suppose that the grantees that a foundation is supporting are not providing the services they are supposed to be providing? How can you provide the foundation with your beneficiary feedback? For most foundations, you can’t. This seems to us not good enough.

Hence it’s not the norm elsewhere. For instance, all UK local authorities have their decision-making meetings in public, as does the National Institute of Health and Care Excellence which decides what treatments can be funded from public money.

What’s to hide? One foundation representative perhaps gave the game away by saying outright: “We are accountable to ourselves, not [to] the public. They do not fund us.” Given the tax subsidy, that just isn’t true.

Our purpose here is not to moan or cast blame, but to raise the issue and suggest some ways that charities and foundations can be more accountable and transparent to those who fund them. We are not suggesting that every single charitable entity be required to hold them; most of the 180,000 registered charities in the UK and a million in the US have zero staff. Rather, we suggest requiring organizations with budgets over a certain threshold to hold such events – that threshold might be £1m or $1m, and it might rise over time.

--Caroline Fiennes

Glasspockets Find: Philanthropic Leaders Join Ban the Box Movement to Address Inequality
October 26, 2016

(Melissa Moy is special projects associate for Glasspockets.)

A growing number of foundations are becoming more comfortable taking public stands on issues, rather than just offering behind the scenes support. One recent example is the Ban the Box movement, whereby public and nonprofit employers, and more recently foundation leaders are taking a public stand designed to draw attention to the employment discrimination of people with arrest and conviction records.

2016-10-26Ford Foundation CEO Darren Walker is one such foundation leader, who recently highlighted Rashad Robinson, executive director of Color of Change, and his video promoting the Ban the Box movement.  The video is part of Ford Foundation’s #InequalityIs campaign, which engages the public to share its thoughts around inequality, from a motel housekeeper’s perspective about immigration to writer/activist Gloria Steinman’s on gender inequality and reproductive rights.   

Foundations are generally known for their role and leadership in funding and supporting nonprofits and organizations that address societal and socioeconomic issues, and not known to be on the front lines of movements themselves.  Perhaps the success of the Civil Marriage Collaborative is creating a change in awareness - that when foundations are visible partners, they can actually accelerate change.

“When foundations are visible partners, they can actually accelerate change.”

Through the Ban the Box Philanthropy Challenge, 42 foundations are using their influence and communications expertise to spur movement and action to eliminate barriers to employment for people with arrest and conviction records.

Organizers note that a prior history of convictions or arrests is a form of employment discrimination that has a “disproportionate impact on men of color, who are more likely to be incarcerated as a result of rampant over-criminalization,” according to the Ban the Box website.

In 2015, foundation leaders affiliated with the Executives’ Alliance for Boys & Men of Color submitted a letter to President Obama urging him to issue an executive order to “Ban the Box” in federal government and federal contractor hiring, which would open employment opportunities in the private sector.

Ban the Box Logo

Foundation leaders also recognized that a wide spectrum of stakeholders needed to be involved to address this employment barriers, including employers in the philanthropic sector.

The collaborative is challenging foundations to adopt fair hiring policies so that foundations will play their part as employers “to remove the stigma associated with a record, and (set) an example for other foundations and their grantees to follow.” Such actions will help advance opportunities to assist formerly incarcerated individuals and reduce recidivism.

The Ban the Box movement has attracted a bevy of prominent foundations across health, economic and social welfare focus areas, including The California Endowment, Ford Foundation, Robert Wood Johnson Foundation, Kresge Foundation, and the W.K. Kellogg Foundation.

The group is calling grantmakers and other organizations to action.  The current social media campaign is asking supporters to #BanTheBox and promote #FairChanceHiring.

Since transparency is still a challenge for the field of philanthropy, seeing foundation leaders step forward on the pressing social issues of the day could be an encouraging signal that some are growing more comfortable with more public facing and influencing roles.  Transparency Talk looks forward to tracking the impact this movement will have on the philanthropic sector’s hiring practices, as well as its influence on encouraging other foundations to take more visible roles on the issues and causes they care about.

--Melissa Moy

Why the Olympics and Other Major Sporting Events Usually Increase Inequality in the Host City
August 16, 2016

(Stefan Norgaard is Stanford University Tom Ford Fellow in Philanthropy at Ford Foundation. This post first ran in Ford Foundation’s Equals Change blog.)

Stefannorgaard_linkedinAll eyes are on Rio de Janeiro as it hosts the 2016 Summer Olympic Games. While everyone watches and roots for the athletes from their countries to win gold, few will realize that the ones really losing out are residents of Rio from low-income and working class communities.

This is because the development model for major international sporting events—like the Olympics and the World Cup as well as countless national sporting leagues like the NFL—rarely benefits all residents of the cities where the games are held. For example, even though the city of Rio promoted the Olympics to residents by arguing that hosting the games would increase tourism and lead to major urban infrastructure improvements, the likely result will be billons in losses.

In fact, thousands of low-income Brazilians have already been displaced in order to build infrastructure for the games that will largely only benefit wealthy communities. In addition, several contracting companies for the Olympics now face corruption allegations. What was seen as an opportunity to democratize development in Rio has instead become an opportunity for city officials to justify actions that would otherwise never be tolerated—like human rights abuses, forced evictions, and hiding poor people and neighborhoods away from view.

Olympic Rio Police Salary Protest

Sporting Events and Inequality

These challenges are not unique to Rio or the Olympics. During the preparations for the 2010 World Cup in South Africa, FIFA—the governing body for international soccer—discouraged local authorities from upgrading an existing soccer stadium in a working-class neighborhood of Cape Town. The local government had wanted to modernize this stadium and invest in infrastructure in its surrounding neighborhood because it would help reduce inequality in the city. Instead, FIFA forcibly urged and got local authorities to agree to build a new World Cup stadium in a wealthier section of the city.

“The Olympics in Rio...human rights abuses, forced evictions, and hiding poor people and neighborhoods away from view.”

In Cleveland, owners of the Quicken Loans Arena—home of the NBA’s Cavaliers—requested a 50/50 public-private funding split for the arena’s construction amid critical financing concerns for the healthcare system, justice system, and other government agencies in the country surrounding Cleveland.

And across the United States, the Federal Communications Commission’s “Nixon Rule” allows NFL franchise owners to black out games from being locally televised if high-priced tickets do not sell out even though the stadiums where these football games are played are often built with taxpayer money. As a result, it can sometimes be nearly impossible for city residents to watch their home teams play in person or on TV.

Public spending for large sporting events is often justified through an economic development model that says investing in the infrastructure, marketing, and preparations for these events will benefit everyone. But time and time again, we see that with large sporting events, only a select few—usually wealthier and more privileged members of the community—benefit at the expense of everyone else.

An Equitable Development Model for Sporting Events

Cities and communities do not have to displace their working class residents to build sports stadiums and venues. They don’t have to funnel public funding away from public goods or only build infrastructure in wealthy areas in the name of economic development. Instead, cities can adopt an equitable development model for urban planning, which ensures that all city residents have a chance to benefit from major sporting events.

Olympic Rio ProtestWhat would such an approach look like? For starters, there should be a push for the Olympics and other major sporting event bids to more centrally take into consideration the impact of these events on low-income communities and the general public. These international bodies should allow and empower civil society groups to comment on Olympic development plans at an early stage.

It is important to note that major sporting event planning and the Olympic bidding process often start years before construction even occurs. So in theory there should be plenty of opportunities to engage with civil society and broader communities on proposed development plans. However, the Olympics has a compressed and frenzied bidding process that prevents broad citizen involvement and long-term planning. And once a bid is awarded to a host city, planners rarely want any input that would derail their already-approved plans.

While the Olympic host cities have generally not had a strong track record of creating long-term social and economic benefits for everyone, there are some instances where host cities have intended to do good for the broader community. For example, the 2012 London Olympic Games included a proposal to turn the Olympic Village into 6,000 units of affordable housing. Unfortunately, development for the games also led to widespread evictions. Urban regeneration schemes for Canary Wharf and elsewhere in East London—where the games were mostly centered—have led to intense gentrification post-Olympics. And while the London Olympic Planning Committee had good intentions, the results have been quite uneven.

In hosting the 1992 Olympic Games, the city of Barcelona leveraged the opportunity to develop a comprehensive urban renewal plan that helped create new jobs and transform the city’s deteriorating infrastructure by building a new airport and telecommunications network and improving the sewage system.

Philanthropy’s Role in Promoting Equitable Development

What can philanthropy do to ensure to equitable development models for major large sporting events and arenas benefit everyone? Here are some possible courses of action:

  • Lift up untold stories of injustice. For example, Ford’s investigative journalism grantees, such as Agencia Publica, are working to find cases of injustice related to the Rio Olympics and tell them to a broader public. They recently launched a project on the recent militarization of the Rio police in advance of the games.
  • Convene organizations and make civil society connections. What is happening in Brazil is far from unique and philanthropy can connect grassroots and civil society organizations in Rio with organizations in Cape Town, Athens, Qatar, the United States, and elsewhere. Groups can share common stories, brainstorm potential solutions, and consider new global development models for the Olympics, World Cup, other major sporting events, and domestic sporting leagues. 
  • Build community capacity to engage in urban development policies and debates. Community organizations such as the Observatório de Favelas in Brazil and the Sports Fan Coalition in the United States need critical capacity to build local power and to counter prevailing assertions that major sporting events always leave lasting social and economic benefits for everyone. The Ford Foundation’s commitment to building institutions and networks seeks to support and grow social justice institutions—which often outlive any one battle or campaign—to do just this.

Major sporting events can ignite a city’s spirit and civic capacity, can lead to a sense of citywide pride, and can certainly help to increase tourism and economic stimulus. But major sporting events and projects only benefit everyone when they are deliberately designed to do so. If we change the approach to development, large sporting events like the Olympics can reduce, rather than drive, inequality.

--Stefan Norgaard

2016 Olympic Games: What Rio Doesn’t Want the World to See
August 9, 2016

(Leticia Osorio is a program officer at Ford Foundation. This post first ran in Ford Foundation’s Equals Change blog.)

Leticia_osorio_0142cWith the 2016 Summer Olympics in Rio de Janeiro under way, it is clear the Olympic legacy already falls short of its initial promises to the city.

 Rio is still dealing with inadequate and unfinished infrastructure projects and overinflated costs, on top of the economic and political instability facing Brazil. These unfilled promises mimic the disorganization and corruption from the 2014 World Cup in Rio.

Both games brought promises of meaningful transformations for Rio’s citizens, but instead ended up violating human rights, increasing public debt, and concentrating expensive infrastructure mostly in developed neighborhoods.

Six million people live in the city of Rio de Janeiro, and one in four of them are poor residents living in slums called favelas. In preparing for the World Cup and Olympics, the city government announced a comprehensive development plan that they called the social legacy plan. The favelas have long been starved of investment in public infrastructure, so the prospect of new developments and upgrades was exciting. Instead, the plan only further segregated poor residents.

In Providencia, Rio’s oldest slum, the main project was the construction of a $20 million cable car. While developers promised the cable car would connect residents to jobs, in reality 30 percent of residents were threatened with forced evictions to make way for the project. Not only was the community unaware of the project beforehand, but it also had no input in the draft planning or approval processes.

OLYMPIC PROTEST PHOTO

 The damaging effects of the Olympics on Rio’s poor residents

Widespread threats of forced removals of citizens from their neighborhoods for development projects related to major sporting events in Rio have been controversial. The Popular Committee on the World Cup and the Olympics— a civil society network comprising social movements, NGOs, research centers and universities— estimates that from 2009 to 2015, 22,059 families were forcibly uprooted from their homes for development projects related to these events.

 Agencia Publica, an investigative journalism outlet and a Ford Foundation grantee, told the stories of 100 evicted families, providing them a voice through one of the largest multimedia investigations related to the Olympics. According to Agencia Publica's co-director Natalia Viana, these firsthand stories provide “concrete evidence of serious human rights violations, of the right to housing, to freedom of movement, to information and even freedom of expression.”

Fifty days before the opening of the Olympics, the governor of Rio declared a state of financial emergency and asked for federal support to avoid a collapse in public security, health, education, transportation, and environmental management.

The cost of the Rio Olympics is estimated to be more than $10 billion and that does not include all of the tax exemptions, public loans, and fiscal incentives that have not been disclosed. The government gave special legal exemptions to developers, allowing them to circumvent planning and urban laws, restrict civil liberties, waive mandatory environmental analyses, ban local and informal businesses, and criminalize public protests.

“ More than 90 percent of the 900 families in the low-income community of Vila Autodromo were forcibly relocated to make way for the Olympic Park.”

The NGO Justiça Global, another Ford partner, produced a video series of four episodes telling how such measures are felt disproportionately by those who are already not well protected, such as those with insecure housing, informal jobs, or already suffering from marginalization and discrimination.

For example, more than 90 percent of the 900 families living in the low-income community of Vila Autodromo were forcibly relocated to make way for the Olympic Park, even though most of them held land concessions titles granted by the state. Although compensation and nearby alternative housing was offered, many families resisted leaving, prompting violent clashes with police. The residents felt they were excluded and disturbed by the games for the capital interests of wealthy developers.

In reaction to the negative impacts related to these infrastructure projects, Rio’s government has responded by blocking access to information and reducing transparency. The organization Article 19, another Ford grantee, put in 39 Freedom of Information requests on the impact of the construction of the Transolimpica bus rapid transit system on the lives of the families whose homes are in the way of the new bus system. But only one was fully answered. It was impossible to find out information on the final route of the bus system, although hundreds of families had already been forcibly displaced.

Additionally, more than 2,500 people killed by the police in Rio since 2009, as reported by Ford grantee Amnesty International. In the month of May alone, 40 people were killed by police officers on duty in the city and 84 across the state. The communities most affected by this violence are those living in slums located around the main access routes to and from the international airport and competition arenas.

Involving communities to ensure shared benefits

While cities agree to host major sporting events based on the premise that the resulting development and legacy will benefit everyone, wealthy developers are usually the ones that get all of the gains at the expense of residents, especially those who are poor and marginalized. So what is happening in Rio is not a new story.

What is new is that communities in Rio are starting to push back. A robust civil society network came together to monitor and collect information on development processes, expenditures, and rights violations. It helped residents speak out against harmful development plans and get compensation for those being displaced. The network submitted reports to international organizations, including the Inter-American Commission on Human Rights and various United Nations mechanisms. Communities became the defenders of their own rights, and they sought the assistance of powerful institutions like the Public Defender’s Office and the UN Special Rapporteur on Adequate Housing, leveraging alternative planning and national and international advocacy.

The alliances established between communities and relevant stakeholders were unfortunately not enough to reconfigure the existing power relationship between the city government and the residents. The laws that were passed to relax tender regulations and urbanistic controls did not ban forced evictions or set procedural safeguards, and there was no broad public debate over the nature of improvements needed.

Governments and public managers still need to learn how a city can stage world events successfully while also respecting the rights of the communities living in the path of infrastructure projects. Participatory development and stricter international regulation is a good place to start. Just like how government and business elites organize and lobby to host these games, we must help communities organize and defend their rights to ensure that they are truly benefitting from the development and investment associated with these games.

-- Leticia Osorio

Flooding the Locks: Philanthropy’s Knowledge Conduits
August 3, 2016

 Panama Canal Authority Photo 3

(Adriana Jimenez is grants manager at the Surdna Foundation and also serves on the board of directors of the Grants Managers Network.  She is a regular Transparency Talk contributor and discusses issues pertaining to transparency, data, and grants management.)

Adriana ImageThe Panama Canal expansion project opened last June following several delays and controversies. It was a risky bet with promising outcomes.

While the expansion aimed to improve global trade by doubling the canal’s capacity, it now runs the risk of failure from faulty design. The project was wrought with conflicts of interest, imprecise data, and dubious processes; its stakeholders consider critiques of the canal “unpatriotic,” reluctant to learn from mistakes.

Uniquely positioned to embrace risk, foundations should tread outside their comfort zone to achieve large-scale, systemic change; but they should also learn from the Panama Canal’s massive gamble. When making big bets, transparency, data-informed decisions, accountability, and clarity of process lead to better outcomes. “Success” means having honest conversations about what’s working and what’s not, rather than aiming for perfection.

As foundations move to take on more risk — including increased knowledge-sharing and openness, advocacy funding, financial risk, and impact investing — they will need to operate with greater transparency and accountability. Their staffing functions will evolve to support them in this process. The field of grants management is already shifting in this direction. At many organizations, grants managers are pushing for increased innovation, transparency, collaboration, and improved systems that will lead to more impact.

“Uniquely positioned to embrace risk, foundations should tread outside their comfort zone to achieve large-scale, systemic change.”

From Data Processing to Knowledge Management

Grants management is changing from a process and compliance role to one that focuses on data analysis, information sharing, and knowledge management. According to the 2016 Grants Managers Network Salary & Jobs Survey, grants managers now spend approximately 25% of their time on functions of information/knowledge, evaluation, and strategy (with an additional 14% on data management), and only 10% on compliance and 11% on administrative support.

This evolution has occurred naturally as grants managers work with larger amounts of data, fueled by increasingly powerful technological platforms and processing power. Within this change, we are moving up the ladder on the Data, Information, Knowledge and Wisdom Pyramid from merely processing data, to helping foundations analyze it and convert it into valuable, meaningful information and knowledge. As grants managers, we now play a key role in strategy by facilitating smarter, data-informed grantmaking.

GMNsalarysurveycover-768x994Like the locks of a canal, grants managers ensure that the right data flows out of our organizations at the right time. We are on the frontlines of providing data and information for external surveys; 990 tax returns; mapping tools; annual reports; foundation websites and searchable public databases; etc. We may also participate in collaborative efforts such as the Foundation Center’s e-Reporting and hGrant, or help implement the principles of IssueLab’s Open Knowlege (for example, by appropriately coding and tagging data, and linking our grants management systems with open repositories for knowledge-sharing, analysis and learning; or by adding open-licensing requirements to our grant contracts). The data and information we deliver allows foundations to deepen impact through collaboration with the field.

Supporting Instinct: Data-Driven Grantmaking Policies

Grants managers can also help foundations set internal policies and procedures that are driven by data, not just habit or inertia. For example, statistics showing a low percentage of grants to new organizations might trigger a change in a funder’s letter of inquiry process to promote more openness through Requests for Proposals (RFPs). Other data might be used to assuage fear of change or generate internal buy-in at the board and/or staff levels. In many cases such data supports — not contradicts — staff and boards’ instinct for change, and leads to increased openness and trust by demonstrating that policy decisions are not arbitrary.

“‘Success’ means having honest conversations about what’s working and what’s not, rather than aiming for perfection.”

At the Surdna Foundation, three years of grantmaking data were used to show that transitioning a portion of the grants approval process from quarterly board approvals to monthly delegated grant approvals would streamline operations, liberate time for “bigger-picture” learning, and benefit grantees by eliminating five weeks from the proposal review process.

In 2014, The William and Flora Hewlett Foundation internally reviewed ten years of grantmaking data and discovered a drop in the average duration of its overall grants. To offset this trend, the Foundation’s grants management team used this data point to advocate with their board for the creation of a “Duration Fund” that would renew Hewlett’s commitment to multi-year support, reduce grantee uncertainty, and lessen administrative burdens. Likewise, statistics showing a lower-than-expected percentage of general operating support grants triggered a conversation around increasing unrestricted support --- when used appropriately to advance strategy --- in accordance with the Foundation’s values. Since embarking on its initial ten-year review, Hewlett’s grants management team has been spearheading the assessment of its grantmaking data each year to identify areas for foundation-wide policy improvements.

Tracking Diversity Data

Grants managers are playing a key role in the movement to increase transparency around diversity in philanthropy. By collecting demographic data (including race, ethnicity and gender) about the staff and board composition of their grantees, foundations can hold themselves accountable to values of diversity, equity and inclusion in their grantmaking portfolios, and make progress towards mission and goals.

Trends tweetC 1024x512Many grants managers are leading the process of collecting, structuring, and sharing this aggregate data (often based on D5 Coalition principles) with organizations such as GuideStar and Foundation Center, bringing greater transparency and understanding of diversity in foundation giving. Diversity data can also help funders track how organizations and fields evolve over time, and contribute to the broader body of public information about trends among nonprofits.   

Glasspockets includes Diversity Policies and Diversity Data indicators in its Transparency Trends tool. According to these indicators, 46% of participating foundations make their diversity policies publically available, and 7% share information on the demographics of their own staff and boards (The James Irvine Foundation, for instance, includes this information as an infographic on its annual report).

Legal and Financial Compliance: Pushing the Boundaries of Risk

Transitioning to a more strategic, knowledge management-based role has helped grants managers keep sight of the end goal of their compliance functions, i.e., to create greater impact. Contrary to the perception of compliance as a “risk-averse” function, many grants managers are using the due diligence process to maximize their foundations’ boldest efforts, pushing for greater risk-taking and transparency. In this context, our role is to assess, communicate, and document risk --- not avoid it --- to help foundations make informed decisions about potential rewards and trade-offs.  This shift has occurred as grants managers are increasingly included in strategic conversations “upstream” with program staff and senior leadership.

Advocacy funding is one example. Due to common fears and misconceptions around 501(c)3 lobbying limitations (and certain funders’ hesitation to support these expenses), grantseekers sometimes conceal activities linked to the dreaded “L” word in their proposals.  Foundations should encourage the opposite. With a nuanced understanding of the rules of nonprofit lobbying and advocacy funding, grants managers can foster honesty and openness with applicants about their proposed activities, clarify legal limitations, and encourage lobbying where appropriate as a critical tool towards achieving positive systemic change.

Throughout the due diligence process, grants managers can also advise grantees and program staff on financial issues, and lead constructive discussions with grantseekers to build trust and set expectations from the onset.

Rather than reducing organizations to a set of ratios or denying funding based on numbers, we can advise on alternate ways to structure a grant to provide greater impact (such as providing a capacity-building grant or using a fiscal sponsor). Many of these scenarios require creativity and flexibility to make the grant viable despite all obstacles; some funding may also be riskier in nature (such as exercising expenditure responsibility in countries opposed to civil society, or supporting new entities with no financial track record), but nonetheless more effective.

CEP-Investing-and-Social-ImpactImpact Investments: The Riskiest Bet

The move toward impact investments has arguably been one of philanthropy’s biggest bets as foundations struggle to maintain the balance between purpose and perpetuity (or timely spend-down). According to the Center for Effective Philanthropy’s 2015 Investing and Social Impact report, 41% of foundations now engage in impact investing (including Mission-Related Investments and Program-Related Investments), and another 6% plan to do so in the future. This shift has substantial implications for the staffing of foundations, and some are tapping into the skills of grants management to fill the gaps.

In particular, grants managers are playing a key role in the due diligence process for Program-Related Investments (PRIs), transferring our knowledge and skills from the financial compliance processes. We are also building out systems to track and monitor loan repayments and reporting. Through these functions we act as a bridge between finance and programs, contributing towards organizational learning and mission.

As a leader in the impact investment space, the Kresge Foundation was the first to develop a PRI module in Fluxx (now available to all Fluxx users) to better capture the nuances and complexities of PRIs.  The build out was led by the Foundation’s Program Operations and Information Management department (formerly known as its grants management department, but recently renamed to reflect the totality of its strategic functions).

Transferring PRIs into Kresge’s grants management system has made the Foundation’s processes more transparent, says Marcus McGrew, Director of Program Operations and Information Management: “All of the Foundation’s work that lived in people’s heads has now been consolidated into one data management platform.”

Transparency of PRIs and other impact investments will become increasingly critical as 990 tax returns are now available as machine-readable, open data, and as the line between endowment and program strategies continues to blur.

Like the philanthropic sector, success of the Panama Canal will depend on leaders’ humility and willingness to learn from failure. This will require implementing best practices to ensure the locks flow as intended. If transparency and accountability matter for the world’s greatest engineering feat, they matter for philanthropy.

--Adriana Jimenez

Foundation Transparency: Game Over?
May 23, 2016

(Brad Smith is president of Foundation Center).

This post is part of a Transparency Talk series, presented in partnership with the Conrad N. Hilton Foundation, examining the importance of the 990-PF, the informational tax form that foundations must annually file. The series will explore the implications of the open 990; how journalists and researchers use the 990-PF to understand philanthropy; and its role, limitations, and potential as a communications tool.

BradfordKSmithThe tranquil world of America's foundations is about to be shaken, but if you read the Center for Effective Philanthropy's (CEP) new study -- Sharing What Matters, Foundation Transparency -- you would never know it.

Don't get me wrong. That study, like everything CEP produces, is carefully researched, insightful and thoroughly professional. But it misses the single biggest change in foundation transparency in decades: the imminent release by the Internal Revenue Service of foundation 990-PF (and 990) tax returns as machine-readable open data.

Clara Miller, President of the Heron Foundation, writes eloquently in her manifesto, Building a Foundation for the 21St Century: "…the private foundation model was designed to be protective and separate, much like a terrarium."

Terrarium photo 2Terrariums, of course, are highly "curated" environments over which their creators have complete control. The CEP study, proves that point, to the extent that much of the study consists of interviews with foundation leaders and reviews of their websites as if transparency were a kind of optional endeavor in which foundations may choose to participate, if at all, and to what degree.

To be fair, CEP also interviewed the grantees of various foundations (sometimes referred to as "partners"), which helps convey the reality that foundations have stakeholders beyond their four walls. However, the terrarium metaphor is about to become far more relevant as the release of 990 tax returns as open data will literally make it possible for anyone to look right through those glass walls to the curated foundation world within.

What Is Open Data?

It is safe to say that most foundation leaders and a fair majority of their staff do not understand what open data really is. Open data is free, yes, but more importantly it is digital and machine-readable. This means it can be consumed in enormous volumes at lightning speed, directly by computers.

"The release of 990 tax returns as open data will literally make it possible for anyone to look right through those glass walls to the curated foundation world within."

Once consumed, open data can be tagged, sorted, indexed and searched using statistical methods to make obvious comparisons while discovering previously undetected correlations. Anyone with a computer, some coding skills and a hard drive or cloud storage can access open data. In today's world, a lot of people meet those requirements, and they are free to do whatever they please with your information once it is, as open data enthusiasts like to say, "in the wild."

Today, much government data is completely open. Go to data.gov or its equivalent in many countries around the world and see for yourself.

The theory behind open data, increasingly born out in practice, is that making information available leads to significant innovation for the public good while the demand for and use of such data also improves its accuracy and quality over time. And some open data is just fun: one of my personal favorites is the White House visitors list!

What is the Internal Revenue Service Releasing?

Irs-logo-250Thanks to the Aspen Institute's leadership of a joint effort - funded by foundations and including Foundation Center, GuideStar, the National Center for Charitable Statistics, the Johns Hopkins Center for Civil Society Studies, and others - the IRS has started to make some 1,000,000 Form 990s and 40,000 Form 990PF available as machine-readable open data.

Previously, all Form 990s had been released as image (TIFF) files, essentially a picture, making it both time-consuming and expensive to extract useful data from them. Credit where credit is due; a kick in the butt in the form of a lawsuit from open data crusader Carl Malamud helped speed the process along.

The current test phase includes only those tax returns that were digitally filed by nonprofits and community foundations (990s) and private foundations (990PFs). Over time, the IRS will phase in a mandatory digital filing requirement for all Form 990s, and the intent is to release them all as open data. In other words, that which is born digital will be opened up to the public in digital form. Because of variations in the 990 forms, getting the information from them into a database will still require some technical expertise, but will be far more feasible and faster than ever before.

"Over time, the IRS will phase in a mandatory digital filing requirement for all Form 990s, and the intent is to release them all as open data."

The Good

The work of organizations like Foundation Center-- who have built expensive infrastructure in order to turn years of 990 tax returns into information that can be used by nonprofits looking for funding, researchers trying to understand the role of foundations and foundations, themselves, seeking to benchmark themselves against peers—will be transformed.

Work will shift away from the mechanics of capturing and processing the data to higher level analysis and visualization to stimulate the generation and sharing of new insights and knowledge. This will fuel greater collaboration between peer organizations, innovation, the merging of previous disparate bodies of data, better philanthropy, and a stronger social sector.

The (Potentially) Bad

The world of foundations and nonprofits is highly segmented, idiosyncratic and difficult to understand and interpret. GuideStar and Foundation Center know this.

But many of the new entrants who are attracted by the advent of open 990 data will not. They will most likely come in two forms: start-ups claiming their new tools will revolutionize the business of giving, and established, private sector companies, seeking new market opportunities. Neither of these is intrinsically bad and could lead to some degree of positive disruption and true innovation.

The negative potential could be two-fold. Funders will inevitably be intrigued by the start-ups, their genius and their newness and divert funding towards them. Foundations are free to take risks and that is one of their virtues. But while needs grow, funding for the data and information infrastructure of philanthropy is limited, technology literacy among foundations relatively low, and many of these start-ups will prove to be shooting stars (anybody remember Jumo?).

"Once the 990 data is 'in the wild,' conclusions may be drawn that foundations find uncomfortable if not unfair."

The second category of new entrants is far more complex and will come in the form of for-profit data analytics companies. Some of these have business models and immensely sophisticated black box technologies that rely heavily on government contracts for defense and national security. They will be lured by the promise of lucrative contracts from big foundations and mega-nonprofits and the opportunity to demonstrate social responsibility by doing good in the world.

But these for-profit analytics companies will quickly discover that there is only one Gates Foundation among the 87,000 private foundations and only a handful of richly-resourced nonprofits among the 1.3 million on the IRS registers. And those who choose to contract the services of "Big Analytics" will need to consider the potential reputational consequences of aligning their "brands" with the companies behind them.

Sound defensive? Not at all: Foundation Center welcomes the competition, has been building for it since 2010, and knows the challenge can only make us and the social sector better.

The Ugly

Once the 990 data is "in the wild," it is possible if not probable, conclusions will be drawn that foundations find uncomfortable if not unfair. Those who are new to the field and relatively uninformed (or uninterested) in its complexity, may make claims about executive compensation based on comparisons of foundations of wildly disparate size and scope.

The same could be done with overhead rates, payout, or any other figure or calculation that can be made based on information found in the 990-PF. Some foundations already chafe when responsible sector advocates like the National Committee for Responsive Philanthropy (NCRP) use Foundation Center data to rank foundations according to their Criteria for Philanthropy at Its Best. Imagine claims coming over the transom from individuals and organizations whose core values do not include a belief in the practice of philanthropy and a normative vision for how it could be better.

"Another potential consequence lies at the intersection of the open 990 data and the growth of impact investing."

Another potential consequence lies at the intersection of the open 990 data and the growth of impact investing. This was the spirit in which Clara Miller introduced her terrarium analogy to highlight what she sees as the artificial disconnect between the controlled, strategic, and curated world constructed by the grants side of foundations and the sometimes contradictory forces at work in the larger economy in which their assets are invested.

Foundations like Heron are striving to put 100% of their assets toward mission, while others like Rockefeller Brothers Fund are divesting their investment portfolios from fossil fuels and re-investing those assets in ways that further the goals of their climate change grantmaking, rather than exacerbate the problem.

A recent (and as of yet unpublished) Foundation Center survey found that 60% of foundations were not engaged in impact investing and had no plans to do so. That is their choice, but open 990 data may well put them in a position of having to publicly explain it.

For example, using Foundation Center databases, I searched across several hundred thousand foundation 990-PF tax returns and found 37 foundations that held Corrections Corporation of America stock in their investment portfolios. These foundations may well believe, as the majority of foundations insist, that the purpose of the investment arm of the foundation is to generate the highest sustainable return possible in order to fund the mission through grants. But if a foundation holding that stock is striving to work on juvenile justice or improve the lives of black men and boys, an investigative reporter or activist might well ask why they are investing in a corporation that runs private, for-profit prisons

It's 10:00pm, Do You Know Where Your 990 Is?

With the game over for foundation transparency, the big takeaway is to know your 990-PF (or 990 for community foundations). Suddenly, it will be transformed from a bureaucratic compliance document into one of your foundation's key communications vehicles.

"Regardless of how each of us may feel about the greater transparency required of foundations, it is increasingly inevitable."

Right about now, you may be thinking: "What about the website re-design we spent all that money on, with our new logo, carefully crafted initiative names, and compelling photos??" It's still important, and you can follow the lead of those foundations guided by the online transparency criteria found on Foundation Center's Glasspockets website.

But for the sector as a whole, while fewer than 10% of all foundations have websites, they all file 990 tax returns. As the IRS open data release unfolds and mandatory digital filing kicks in, the 990-PF will become one of the primary sources of information by which your individual foundation will be known and compared to others.

I recently asked a group of foundation CEOs whether they ever had an in-depth discussion about their 990-PFs among their board members and was met with blank stares. In a world of digital transparency, this will have to change. As 990s become a data source and communications vehicle, the information on them will need to be clear, accurate and above all, a faithful representation of how each individual foundation makes use of the precious tax exemption it has been granted to serve the public good.

A few simple tips for starters:

  • Take advantage of Section 15 (block 2) to talk about your priorities, grant process, limitations, and restrictions.
  • In Section 15 (block 3) write the correct, legal name for each grantee organization and add its EIN or BRIDGE ID
  • In the same section, write clear and compelling descriptions for the purpose of each grant (more than you might think, people look at foundations by what they fund).
  • Make sure all numbers on the form add up correctly (you'd be surprised!).

Regardless of how each of us may feel about the greater transparency required of foundations, it is increasingly inevitable. Philanthropy is essential to American society and a positive source for good in a challenging world.

As the terrarium walls insulating individual foundations fall, we will surely face a few moments of anxiety and discomfort. But greater transparency, fueled by open IRS data, can only make us more conscientious stewards of our resources, more effective decision-makers, and better collaborators on our way to achieving greater and greater impact in the world.

Game over? It's just beginning!

-- Brad Smith

The Next Generation of Nonprofit Data Standards
May 2, 2016

(Jacob Harold is president and CEO of GuideStar and Brad Smith is president of Foundation Center. Join Harold and Smith for their webinar, How Data Standards Can Help Save the World, on May 12 at 2:00 pm EDT. In the webinar, Harold and Smith will discuss the ways data standards are already improving the grantmaking process for both funders and grantees. They'll also address how foundations can participate in these initiatives and promote a better information system for the sector. See you there! This post first ran in PhilanTopic.)

Our current moment in the human story is often called the age of information. And indeed, we are too-often overwhelmed by the torrent of data coursing through our lives. As a society, we have developed many tools to organize the information we rely on every day. The Dewey Decimal System helps libraries organize books. UPC codes help stores organize their products. Nutrition labels help to present information about food ingredients and nutritional value (or lack thereof) in a way that's consistent and predictable.

Data Standards Image-600wi
The nonprofit sector has also relied on data standards: we use the government's Employer Identification Number (EIN) to identify individual organizations. The National Taxonomy of Exempt Entities (NTEE) is used by many — including GuideStar, Foundation Center, and others — to help reveal the diversity of the nonprofit community, guide funding decisions, and foster collaboration.

But just as other information systems have continued to evolve so must ours. When the Dewey Decimal System was developed in 1876, Melvil Dewey could not have imagined Amazon.com, e-readers, or Goodreads.com. Similarly, the EIN/NTEE framework is simply not enough to explain, organize, and share the complex story of nonprofits.

So we are glad to share the news that a new generation of social sector data standards is emerging. These can help us all do our work better, making smarter decisions while saving time to focus on that work.

There a several standards that are important, but we'd like to direct your attention to four:

Standard

Description

History

BRIDGE

A unique identifier for every nonprofit organization in the world.

A joint project among GlobalGiving, Foundation Center, GuideStar, and TechSoup Global.

Philanthropy Classification System

A taxonomy that describes the work of foundations, recipient organizations, and the philanthropic transactions between them.

Led by Foundation Center, with significant input from hundreds of stakeholders.

GuideStar Profile Standard

A standardized framework for nonprofits to tell their own stories. Used by more than 100,000 nonprofits.

Includes the five Charting Impact questions (developed in partnership with Independent Sector and the BBB Wise Giving Alliance). GSPS feeds the GuideStar for Grants system that was developed as part of the Simplify Initiative in partnership with the Technology Affinity Group.

eGrant/hGrant

An easy way for foundations to share the grants they make in near-real time.

Over 1,200 foundations use eGrant to report their grants data to Foundation Center and 19 foundations publish their data in open format through the Reporting Commitment.

This list is by no means comprehensive — other standards are also important, including but not limited to IATI and PerformWell. Others, such as XBRL or LEI, could become important for the field. But for now, we urge the nonprofit sector to understand these four standards and, where possible, to adopt them for your own use.

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It is worth noting that we in the nonprofit sector use the word "standards" in two distinct ways. First, there are "practice standards" that work to define excellence. The BBB Wise Giving Alliance Standards for Charity Accountability or Independent Sector's Principles for Good Governance and Effective Practice fit this definition. Practice standards are a powerful way to help define and promote good practices.

But here we're pointing to "data standards" that are simply a way of organizing information in a consistent format to make it more useful. Both practice standards and data standards exist to help us do our work better. Neither guarantee excellence, but in different ways they help us drive toward excellence.

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As a field, we need to absolutely minimize the amount of time we spend managing data — and maximize the time we spend solving problems. Think of these standards as enablers to help us do just that, and do it at scale.

--Jacob Harold and Brad Smith

Walking the Talk on Foundation Openness: Behind the Scenes in the Making of an RFP
April 19, 2016

(Chris Cardona is program officer for philanthropy at the Ford Foundation.)

Chris Cardona Photo

When the latest Star Wars movie came out on DVD, Disney made a big deal about its inclusion of deleted scenes. Director J.J. Abrams announced the deleted scenes on social media and mentioned them in magazine interviews.

While we haven’t just directed a billion-dollar-grossing movie, the Fund for Shared Insight (“Shared Insight”) is taking a page from Abrams’ playbook and offering the following commentary on our own deleted scenes. In our case, they’re from our recently published request for proposals for projects that advance foundation openness.

Come take a look behind the scenes of how a philanthropic initiative evolves….

"Compared to what nonprofits do on the front lines, foundations talking about failure is not particularly courageous."

Shared Insight is a funder collaborative working to improve philanthropy by increasing foundation openness – i.e. sharing our goals, strategies and failures; listening and engaging in dialogue with others; acting on what we hear; and, sharing what we have learned.  We made our first round of grants in 2014, and have been learning a lot alongside the grantees with whom we’re privileged to work. And as my colleague Melinda Tuan wrote about on the CEP blog, one of the things we’ve learned from our evaluation partners at ORS Impact, who are looking at the impact of our grants as well as that of our own collaboration, is that we’re not making as much progress as we’d hoped on foundation openness. (To download the full report, please see Fund for Shared Insight: Theory of Change Progress and Lessons.)

In an effort to do better, we sought the advice of our philanthropy infrastructure colleagues and had a number of productive conversations among members of the collaborative. Based on those discussions, we developed a draft request for proposals (RFP), and decided that we should model the behavior we hope other funders will adopt by publishing the draft online, and inviting anyone to comment.

If you compare the draft and the final version, they’re pretty different.

So what changed, and why did we take certain things out in response to feedback?

We were honored to receive 18 pages worth (!) of feedback on the draft request for proposals. Here’s what we took away from the comments:

  • Don’t impose a framework where it doesn’t belong. At the core of the draft RFP was a three-part model distinguishing among “closed organizations,” which don’t practice any openness; “fundamental openness,” in which foundations broadcast information in a one-way manner; and “courageous openness,” in which they engage in two-way dialogue with outside parties. This framework went through much iteration in our internal discussions. Somewhere there’s a PowerPoint slide with an image of a mountain, with “courageous” at the summit, “fundamental” at the basecamp near the foot of the mountain, and “closed” in a cave underneath the mountain. We talked about it as a spiral. We talked about multiple points of entry. Gosh, foundation folks sure do love our frameworks. But this one just didn’t work. No matter how we tried to frame it, people told us, it’s not a spectrum. All three levels are valid and have their benefits, and all three require changes in practices and/or culture. So, we dropped the idea of a spectrum with judgments about more or less desirable kinds of openness.
  • “Courageous” we’re not. That specific label was VERY unpopular. We were inspired by one of our colleagues who used that term to describe (we thought) things like foundations talking openly about failure. Yet that very person wrote to us to say that we’d gotten it wrong! Compared to what nonprofits do on the front lines, and what the people we seek to help face in their daily lives, foundations talking about failure is not particularly courageous. Whatever risk a funder might face in engaging in dialogue about what works and what doesn’t pales compared to the risks our partners and beneficiaries take all the time. So we dropped that label.
  • Listen to the sounds of silence. Our category of “closed foundation” didn’t take into account funders that deliberately remain anonymous for personal or ethical reasons. Anonymous giving is a tradition with deep cultural and faith-based roots, and is very different than the case we had in mind, of a foundation just neglecting to share information it has ready at hand. So we dropped “closed foundation” as a category or point of contrast, and focused instead on the positive or affirmative elements of openness that we seek to foster.
  • Don’t assume you have control over your message. This is the flip side of anonymity. One commenter pointed out that because of the increasingly public nature of foundation tax returns (known as 990-PFs), which are starting to become machine-readable, foundations do not have the luxury of remaining anonymous. As this commenter observed, soon, two kids in a garage in Ohio could be able to write a program that searches machine-readable 990-PFs and produces analyses of giving patterns. Another commenter made a related point; we shouldn’t assume that foundations have control over their communications and information, because in an increasingly social-media-saturated and surveilled world, they don’t. To assume that a base level of openness is a choice may not turn out to be true. This is another reason we dropped the “closed foundation” as a point of contrast.
  • What will it take to make this real? Finally, we heard from commenters who asked about the implications of foundation openness for decision-making. Under the kinds of practices we’re encouraging, will foundations retain control over decision-making about resources? In “courageous” openness, how much decision-making power are you giving stakeholders? While it only came from a couple of people, this was a particularly interesting piece of feedback, because it gets to a core issue in foundation openness: the desire for control, and the fear of giving it up. Foundation openness does usually mean real change in organizational practices and culture. That’s not something we took out in response to feedback; if anything, we’re doubling down on that notion. We are betting it will take real commitment by CEOs and boards to change their culture and become more open.

The upshot of this feedback is we’ve produced an RFP that we hope is more streamlined, more straightforward, and more direct. We added several more examples of the types of projects we’re interested in funding, and we made our definition of openness much simpler, without a framework. The process of gathering the feedback was tremendously informative, and we deeply appreciate all those who contributed their time and wisdom to this effort. We hope the result was worth it – and that in the end, we’re able to fund even better projects that advance foundation openness.

Apparently, a feature of the new Star Wars DVD is that if you already have a toy of the robot* BB-8, it can react to what’s playing on the screen. While we can’t promise anything as cute or compelling as that, we hope you’ve enjoyed this peek behind the scenes of how a philanthropic initiative evolves. We look forward to the projects that will result, and to the impact that they’ll generate.

*Yes, I know it’s technically a droid!

--Chris Cardona

Blind Spots No More: Introducing Transparency Trends
April 13, 2016

(Janet Camarena is director of transparency initiatives at Foundation Center.)

Janet Camarena

There are some lessons you learn that you never forget. "Mirror, signal, blind spot," is thankfully one of those lessons for me, dating all the way back to driver's ed when I was equal parts excited and horrified that someone was handing me the keys to a moving vehicle. I still recall the teacher emphasizing how important it is when changing lanes to first check the mirror for what is behind you; signal to let others know you are entering/exiting a lane; and then to check your blind spot, assuming there is someone invisible to you that only looking over your shoulder and out the window will reveal.

"The new Transparency Trends tool helps foundations benchmark openness."

So, is our new Glasspockets' Transparency Trends a mirror, a signal, or a viewer for revealing blind spots a foundation may be creating? It actually serves all of these purposes. Transparency Trends, created with support from the Barr Foundation, aggregates the data we have collected from all foundations that have taken and publicly shared their "Who Has Glass Pockets?" self-assessment transparency profiles, and allows the user to interact and display the data in a variety of ways.

The default view displays data about all 77 participating foundations, and users can perform a number of helpful transparency benchmarking activities with the tool, including:

  • Learn which transparency elements are most and least commonly shared online;
  • Access lists of which participating foundations share each transparency indicator;
  • Access statistics about the sharing frequency of each transparency element;
  • Compare a specific foundation to a select peer group by region/asset/foundation type; and
  • Download a customized report detailing suggested improvements for a particular foundation.

Some interesting facts quickly reveal both strengths and blind spots:

Searchable Grants Performance Assessment
  • Nearly two-thirds of participating foundations provide searchable grants via their websites;
  • 87% of participating foundations provide key staff biographies;
  • Fewer than half of participating foundations post a Code of Conduct online;
  • Despite all of the talk about impact, only 22% of participating foundations share foundation performance assessments via their websites; and
  • Only 31% of participating foundations use their websites to collect grantee feedback.

The more I explore Transparency Trends, the more excited I became about the "Mirror, signal, blind spot" rule of the road as a metaphor for the importance of philanthropic transparency. After all when you are handed the keys to a foundation, it's great if someone also hands you some institutional memory so you can have a view of the road travelled so far and what has been learned so you can actually get somewhere rather than driving in circles.

And since there are likely others who are travelling a similar path, the notion of signaling to the world what direction you are going resonates as well, since you might get there faster (and more efficiently) via a pooled or shared ride approach, or by at least sharing your road maps and shortcuts.

And finally, are you and the others on the road actually creating blind spots that prevent those around you from knowing you exist and building on your shared efforts? From Transparency Trends, you can see that fewer than half of participating foundations have a Knowledge Center that shares the lessons they are learning, and only 12% have open licensing policies that make it clear how to build on the knowledge the foundations funds and produces.

Knowledge Center Open Licensing

As fun as it is to explore the data on the pinwheel display, don't miss the opportunity to download a customized report. Since the reports are particularly helpful as a mechanism to surface both the transparency blind spots and strengths a particular foundation might have, Transparency Trends is accessible to any foundation, whether or not they have previously participated in Glasspockets.

So, if you have not submitted a profile to Glasspockets, you can still explore and extract helpful information from the tool by completing a short questionnaire about your existing transparency practices. The questionnaire will not be shared without your permission, but it will allow you to view your foundation as compared to others in our database.

Customized ReportA customized report from Transparency Trends

Our hope is these reports will serve to encourage greater foundation transparency by quickly surfacing data that identifies areas in which a foundation is behind its peers in regards to specific transparency indicators. And for those foundations that have already participated, you get a shortcut to your customized report since you will skip the questionnaire and go directly to a report to reveal your strengths and weaknesses, or areas where you may inadvertently be creating blind spots.

And speaking of blind spots, I have been thankful for the "Mirror, signal, blind spot" mantra many times when it has literally saved my life. I can recall several occasions when I've ritually check the blind spot, convinced it was empty, and only because I did the over-the-shoulder check did I avoid a collision. I'm reminded of this particular lesson at the launch of Transparency Trends because perhaps philanthropy needs a way to do the over-the-shoulder check as well. By visualizing both philanthropy's strengths and weaknesses when it comes to greater openness, we can collectively work toward a future with fewer blind spots, more awareness of those around us, and a clear view of what we have learned from the road travelled so far.

Explore Transparency Trends and let me know what you think.

-- Janet Camarena

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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:
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