Transparency Talk

Category: "Civic Engagement" (4 posts)

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

A Case for Better (Self-Imposed) Transparency Standards for Foundations
December 29, 2015

(Rick Cohen is the National Correspondent for Nonprofit Quarterly (NPQ) and the editor of NPQ's Cohen Report. Prior to joining NPQ, Rick was executive director of the National Committee for Responsive Philanthropy, vice president of the Local Initiatives Support Corporation, and vice president of the Enterprise Foundation. A version of this blog appeared in NPQ.)

Editor's Note: As the year draws to a close, it is natural to remember and reflect on those whom we have lost.  Last month, philanthropy lost one of its strongest voices for change with the passing of Rick Cohen. A prolific writer, Cohen was known for encouraging philanthropy to extend its reach to marginalized and underserved communities. Seeing the weaknesses of a closed door culture, Cohen also frequently wrote and spoke about the need for greater foundation transparency and the potential for improving philanthropic practice by increasing stakeholder participation and influence. In honor of Cohen, Transparency Talk is closing out 2015 by revisiting a two-part post Cohen authored for Transparency Talk in 2012 on the case for enhanced foundation transparency, and his recommendations for improved transparency standards.

Photo_74078_landscape_650x433Rather than simply arguing for more or less transparency, a better strategy is to consider the public purposes that might be served by better, proactive standards of disclosure. I suggest the following: 

  1. A better story: Spruill’s charge to the sector is still the ultimate reason, to explain what organized philanthropy is and does, but it is so much more credible when it emerges from the analysis of independent analysts and the public. The glossy annual reports whose cost of writing, design, and printing exceeds many nonprofits’ budgets are not persuasive. They look more and more like corporate advertisements. If philanthropy has a strong story to tell, it should be one that can be told by independent observers examining the data.
  2. Civic engagement: Foundations themselves are relatively unified, regardless of their political leanings, in favor of increased civic engagement, not just in the public arena of government, but in the engagement with communities, in the overall pursuit of community and societal betterment. If foundations are part of a sectoral commitment for advancing the public good, one means is to make more foundation information available, to make citizens and policy makers better “consumers” of foundation products, just as foundations want to help citizens be better consumers and participants in the processes of government and business. 
  3. Foundations in public policy: Increasingly, foundations have been moving into the public policy arena, not simply through their grantmaking, but their direct participation. Foundations partner with government at various levels, notably a recent spate of foundation engagements with the federal government in programs such as the Social Innovation Fund at the Corporation for National and Community Service and the “Race to the Top” in the Department of Education. In some cities, notably Detroit, where local government has taken a turn toward the dysfunctional, foundations are developing and running programs that in some ways are taking the place of the public sector. As foundations become direct players in the public arena, not simply supporting nonprofits to do so, foundations should be increasing the transparency the public needs about their operations.
  4. Increased accountability: At this time, there is a parallel debate going on about increasing the transparency of government data. Virginia Senator Mark Warner has introduced the DATA Act which would create standardized formats for reporting and publication of government spending data. The Act, as the Sunlight Foundation commented, “could help eliminate much government waste, fraud, and abuse, and make spending oversight much easier.” Better, expanded, standardized data makes oversight easier, it’s that logical.  But so much of the data reported in 990s is not particularly standardized and, when it comes to data on foundation investments, virtually uninterpretable.  That isn’t a reason to drop the data requirement.  It is to improve the reporting and formatting of data so that the public—and oversight agencies—can figure out what it contains. 
  5. Abuse of 501(c) confidentiality:  The nation faces an explosion of organizations—and money—seeking the 501(c) confidentiality for the only purpose of keeping the identities of the players pulling the levers of the political system secret.  Television commentator Dylan Ratigan suggests that “our political system has become an auction in which the highest bidder wins,” but the identities of the bidders are increasingly under wraps.  In other arenas, public agencies such as municipal governments and state universities are creating affiliated nonprofits and foundations with a purpose of reducing or removing a slice of their operations from public scrutiny and oversight.  If this nation is going to pursue greater freedom of information, we will, as Senator Warner suggests, need to have better mechanisms with which to “follow the money.” ( We have to better follow foundation moneys, too. 

Let’s face it that there is no discernible Congressional appetite for playing with the laws and regulations facing foundations right now.  Since foundations are overseen by the Internal Revenue Service—and in some measure by a number of states that have provided at least a semblance of staffing and support for charity oversight functions usually in their AG offices, though state attention only sporadically ever nears private foundations—not much is going to happen. 

If there is more money for the Internal Revenue Service, it is logically going to go to expanding its capacity for dealing with its new responsibilities under the Patient Protection and Affordable Care Act, not for oversight and enforcement activities regarding charities.  In general, there’s no money to be made by the IRS for chasing nonprofits and foundations, and like a sports agent looking for a contract, the IRS wants to be shown the money that it can generate through stepped up enforcement. 

Moreover, the IRS is not generally among the more popular of federal agencies.  The outcry against Maine Governor Paul LePage’s denunciation of the IRS as new Gestapo caused him to apologize to Jews, but not to IRS agents who might have been offended, and few in Congress stepped to the plate to defend the IRS.  Ways and Means Committee hearings into IRS operations have been held,  prompted in part by the complaints of Tea Party groups believing that their applications for 501(c)(4) social welfare status were being subjected to politically motivated IRS reviews. 

--Rick Cohen

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