Transparency Talk

Category: "Communications" (86 posts)

Is Your 990-PF Working Against You?
September 12, 2017

Lauren Haverlock has practiced public accounting since 2004. As a senior manager at Moss Adams LLP, she provides compliance and consulting services to all types of exempt organizations, including public charities and private foundations.

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.

Join us at a session about the Open 990PF in partnership with Grantmakers of Oregon and Southwest Washington. Learn more or register here.

Lauren HaverlockAs a CPA specializing in tax exempt organizations, the annual 990-PF form that private foundations must file with the Internal Revenue Service (IRS) is the source of many questions I receive. And now that this data is not just publicly available, but open, it is wise for us all to take a closer look at whether your 990-PF may unintentionally be working against you.

Of course, the IRS has been gathering data on 990-PF filers for years. It has used this data to better identify and investigate anomalous and non-compliant private foundations. But now, all electronically filed Form 990-PF data is available to the general public in machine readable formats opening up the investments, portfolio performance, grant recipients, expenses, and transactions of foundations like never before.

Now that this information is publicly available in machine readable format, it can be easily aggregated to provide valuable insight into the industry as a whole. It can also highlight outliers. Ultimately, the availability of this data provides a window into private foundations, many of which were previously used to operating outside the public eye. As Glasspockets has reported, currently only 10% of U.S. foundations even have a website, so if your foundation is among the 90% that do not, that means that your 990-PF is the only source of intelligence about your organization. 

In the new world of readily available machine-readable Form 990s, private foundations will want to verify their tax filings—the source of their data—are prepared completely and accurately. Common mistakes to watch out for when filing the Form 990-PF are detailed in this article.

Transactions

Private foundations face more burdensome regulations on investments and expenses than 501(c)(3) public charities:

  • Restrictions on how money is spent
  • Requirements as to how much money is used for charitable purposes
  • Rules regarding how endowments can be invested

The consequences for noncompliance in regards to the above transactions can range from excise-tax penalties assessed on the foundation or its managers to revocation of exempt status.

Specific items to be aware of include the following:

  • Prohibited transactions with a disqualified person, including trustees, directors, and foundation managers as well as certain family members and businesses of the aforementioned.
  • Failure to meet the minimum distribution requirement in a previous year
  • Excess business holdings of an active trade or business
  • Risky asset investments that could jeopardize a foundation’s charitable purpose (for example, not having a diversified portfolio of investments)
  • Certain types of expenditures, such as foreign grants, grants to for-profit entities, unapproved scholarships, or lobbying and political activities, are either prohibited outright or require extra diligence to be permissible. 

For example, foundations are permitted to reasonably compensate a disqualified person for personal services. And an organization can grant funds to foreign or for-profit organizations if expenditure responsibility is exercised. And more details about what is permissible in regards to political funding appears below. But the main point here is just the affirmation of these closely scrutinized transactions could raise the risk profile of a private foundation.

Net Investment Income

Although considered tax-exempt, private foundations are still required to pay an excise tax at a rate of 1% or 2% of the income they generate. As such, investment income is of intense focus when foundations file their tax returns. Foundations should remember that the calculation of taxable income should be undertaken with the same tax-reduction mindset that for profit entities and individuals undertake.   

“Ultimately, the availability of this data provides a window into private foundations, many of which were previously used to operating outside the public eye.”

The Form 990-PF reports income both on a book and on a tax basis on Page one. A foundation should ensure that it is properly capturing all taxable income from all sources and not simply assuming that taxable income is the amount reported on their financial statements. For example, private foundations with “alternative investments,” including private equity, hedge funds, managed futures, real estate, commodities and derivatives contracts, could receive a Schedule K-1 from their investments. Flow-through income from that Schedule K-1 should be reported in the foundation’s tax-basis income statement. 

Additionally, any excise tax a foundation pays could bring negative attention. If an entity consistently pays the higher excise tax of 2%, it could lead donors to question why the foundation is giving money to the IRS in the form of taxes rather than providing grants.  

 

Balance-Sheet Investments

Private foundations are required to report the details of their investments, including the number of shares and types of publicly traded stock held. Reporting this can often be burdensome and feel invasive, but failure to include this information could result in an incomplete Form 990-PF. An incomplete Form 990-PF is deemed to have never been filed in the first place, which could result in late-filing penalties or revocation of exemption if it occurs three years in a row.

Lobbying and Political Activities

Private foundations are prohibited from undertaking any lobbying or political activities, unlike 501(c)(3) public charities, which are permitted to undertake limited lobbying activities. However, not all actions related to politics are prohibited—private foundations can undertake certain bipartisan educational activities or support charities that undertake lobbying if they follow certain guidelines. For example, the specific project grant rule, when followed, could allow a private foundation to fund a project that explicitly has lobbying activities.

Grant Reporting

The grant reporting schedule seems innocuous, but it can weave a story of relationships that extend beyond grantor and grantee. The grant recipients of private foundations are public, which means the public can gather data regarding which organizations a foundation supports by using data-mining tools.

Open-990-borderAlthough this information can be valuable to fundraisers and your grantmaking peers, it can also reveal an informal or unclear grantmaking process and serve as an inadvertent disclosure of taxable expenditures. As such, a foundation should ensure that there is a due diligence process related to grant recipients that verifies if a recipient is a qualified 501(c)(3) public charity, and use the space provided in the 990-PF (Part XV) to explain its grantmaking process, deadlines, and eligibility requirements.

While grants to other types of entities are permitted, if certain expenditure responsibility procedures are not followed, this type of granting could possibly raise a red flag. Any grantee that reports a foreign address, appears to be a corporation, or otherwise stands out could still garner a foundation unwanted attention from the general public and IRS. Grantmakers making grants to foreign organizations also have the option of using a process called equivalency determination to demonstrate how they determined that a foreign organization is equivalent to a U.S. charity. The grantmaker is required to collect a specific set of data, as outlined in IRS Revenue Procedure 92-94, that provides details about the grantee’s operations and finances.

Private foundation contributor schedules are public, which means anyone can pull these donor lists. With open-source data, foundation support can be easily compiled and aggregated to better understand an ecosystem of donors and support—keeping a private foundation accountable to the community it serves.

Even though the Form 990-PF is a government filing, its public nature and the increased openness of its data may lead to both greater interest and scrutiny in the private foundations filing it. Take control of your financial story by filing timely, complete, and accurate Form 990 returns, paying special attention to the areas noted above, and ultimately what increases may be a greater understanding of the field itself.

--Lauren Haverlock

The Power of Narrative: Philanthropy and Storytelling
August 31, 2017

Nicole Richards is Chief Storyteller at Philanthropy Australia

Nicole Richards photoWhen it comes to storytelling, philanthropy generally gets a failing grade.

It’s not that we’re short on great stories—they’re everywhere. We hear, see and experience them every day in our work to catalyse positive social change. The story opportunities in philanthropy flow as bountifully as the chocolate river in Willie Wonka’s chocolate factory.

But who has the time to capture them so that they become more than just a feel-good anecdote? Who has the capacity to tell them in a way that might influence others to act? Most of us are too busy with the business of grantmaking and measuring impact to share more than the occasional story at a board meeting or conference. Thousands of stories slip away.

Willy Wonka & RiverThat’s to our detriment. Humans are hard-wired for storytelling—stories are what connect us.

Three months ago, I stepped into the newly created role of Chief Storyteller at Philanthropy Australia, the national industry association for giving in Australia. The position, which is directly aligned with the organization’s strategic plan, has been backed for three years by five local funders who believe in the power and potential of storytelling to grow giving in this country.

The stories I tell span the spectrum of philanthropy, with a view to increasing transparency for a diverse cast of philanthropic actors. From collective giving groups and newly established private ancillary funds to the country’s oldest philanthropic foundations—the stories and the protagonists are distinct but the intent is the same: to make a difference.

Some of those are human interest stories that profile funders and their giving journeys case studies that showcase good practices, and opinion-style narratives designed to challenge the status quo.

From what we’ve seen, the appetite for these stories is boundless—philanthropists of all sizes and persuasions love learning from the collective experience of their peers. Telling these stories, or better yet, passing the mic so that the stories can be recounted firsthand by the funders, their nonprofit partners and the communities they serve, is a powerful form of knowledge sharing, of connecting people with new ideas and networks.

While it’s easy enough to find  and package the stories for ready consumption by those already practicing philanthropy, the bigger challenge is to send the stories beyond the echo chamber and put them before would-be philanthropists and aspiring social change makers. 

That’s as much about opening up philanthropy to demystify it for the uninitiated as it is about sharing stories of philanthropic impact for other philanthropy insiders. Philanthropy is too often viewed as the closed-door, exclusive domain of the ultra-wealthy. As agents of philanthropy, we have a responsibility to bust that myth and lift the veil.

Not all the stories we choose to tell should gleam like candy—the authenticity of the story is critical to its impact. We need more cautionary tales such as stories of failure, of missteps and strategies that went awry. By sharing the stories that aren’t sugar-coated, we make philanthropy less opaque, more accessible and ultimately more effective. By making storytelling a part of our process, we begin to normalize a culture of openness.

While crooning about pure imagination beside his chocolate river, Willie Wonka intoned: “Want to change the world…there’s nothing to it.”

We know he’s wrong on that front, but his golden ticket giveaway of the chocolate factory was a great story.

There’s a story behind every act of giving. For the sake of more and better philanthropy, it’s time we took those stories beyond the chocolate factory gates.

--Nicole Richards

 

I Thought I Knew You: Grants Data & the 990PF
August 23, 2017

(Martha S. Richards is the Executive Director of the James F. and Marion L. Miller Foundation in Portland, Oregon.)

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.

Join us at a session about the Open 990PF in partnership with Grantmakers of Oregon and Southwest Washington. Learn more or register here.

Martha Richards photoI have a confession to make. Up until a few years ago when this story begins, I used to take the 990PF for granted. I thought of it as something that ensured we were following federal regulations and that if we filed it on time and followed the reporting practices we had always used, that this would be sufficient for all concerned. I was also pretty certain no one but a few insiders within the government and perhaps a handful of philanthropy groups would ever bother to read it.

Well, you might have heard the expression: "You don't know what you don't know," and that's a good segue to what I have to share.

In Spring 2010, the Coalition of Communities of Color (CCC) released a study -- Communities of Color in Multnomah County: an Unsettling Profile -- which defined the disparities facing communities of color in Oregon's largest urban area, Portland. Inspired by this analysis, that December, Foundation Center (FC) and Grantmakers of Oregon and SW Washington (GOSW) co-presented Grantmaking to Communities of Color in Oregon -- a groundbreaking report that acknowledged that philanthropy was part of the problem. The report estimated only 9.6% of grants awarded in 2008 by Oregon private and community funders actually reached communities of color.

While the data told a moving story, the source of the data also became a parallel conversation because the philanthropic community here in Oregon learned about the limitations of using tax returns to tell such important stories. The grant descriptions in our 990s rarely disclose details about the intended beneficiaries of the grants—even if we know them.

The result: We embarked on a long journey to address both issues. While GOSW and CCC hosted a forum to raise awareness of the reports and their attendant policy recommendations, foundations committed to look more closely at their giving practices as well as their data collection efforts, especially emphasizing collecting better beneficiary data, and reporting relationship with Foundation Center.

This prompted us at the James F. and Marion L. Miller Foundation to examine our own giving and how we could describe its reach. We fund in the areas of arts and K-12 education. We have a small staff. Our application process did not require a detailed analysis of demographic data from arts applicants or schools, nor an understanding of the diverse nature of nonprofit leadership among our grantees. We realized that we did not know if the grants we made were reaching the populations we hoped to serve.

As part of this effort, I chaired a GOSW-led Data Work Group to explore how to obtain more meaningful data sets without adding to the length and complexity of our application processes. We invited nonprofit partners to the table. We studied Foundation's Center's processes and invited their staff to meet with and advise us. We tried, tested, and began to encourage nonprofits to help us learn more about how and who we were reaching with our philanthropic dollars. Eventually, we encouraged many of our Oregon foundations to become eReporters to Foundation Center, providing more detailed descriptions of what the grant was for, and who was reached with the funding. Our reports to the Foundation Center and to the IRS have improved, and we make an effort to report detailed demographic information.

Before and After Chart

However, we discovered that it can be difficult for some types of organizations to capture specific demographic data. In the arts, for instance, outside of audience surveys, one generally does not complete a demographic survey to buy a ticket. At the Miller Foundation, we chose to partner with DataArts to collect financial and audience data on our arts grantees. Arts organizations annually complete the profile and it can be used for several arts funders in the state. Their demographic profile is still being developed, but it will encourage better data information and capture in the future. Unfortunately, this platform does not exist for other nonprofits.

Get on the Map

Get on the Map encourages foundations to share current and complete details about their grantmaking with Foundation Center. The interactive map, databases and reports allow foundations to have a better understanding of grantee funding and demographics.

We didn't know it then, but as a result of our committee's efforts, a new data improvement movement was born, called Get on the Map (GOTM). GOTM encourages foundations to share current and complete details about their grantmaking with Foundation Center, so the Maps, databases, and reports it issues are as accurate as possible. The grants we share also populate an interactive map that members of GOSW have access to, which means that we have a better idea of the ecosystem in which we work. It has since scaled nationally with other regions also committing to improve the data they collect and share about their grantmaking so we can all be less in the dark about what efforts are underway and who is working on them.

As a result, today our foundation has a better understanding of who our grantees are serving and reaching today, than we did seven years ago, and I think we are also doing a better job of sharing that story with the IRS, Foundation Center, and the many sets of eyes I now know view those platforms.

We are still learning what we do not know. But at least, now we know what we do not know.

-- Martha Richards


Coming to Grantmakers of Oregon and Southwest Washington: To learn more about what story your 990PF tells about your foundation, register to attend Once Upon a 990PF. Visit the GOSW website for more information and to register.

How To Keep Me Scrolling Through What You Are Sharing
August 10, 2017

Tom Kelly is Vice President of Knowledge, Evaluation & Learning at the Hawai‘i Community Foundation. He has been learning and evaluating in philanthropy since the beginning of the century. @TomEval  TomEval.com

This post is part of the Glasspockets’ #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new research and tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood.

Tom Kelly Hi ResHello, my name is Tom and I am a Subscriber. And a Tweeter, Follower, Forwarder (FYI!), Google Searcher, and DropBox Hoarder. I subscribe to blogs, feeds, e-newsletters, and email updates. My professional title includes the word “Knowledge,” so I feel compelled to make sure I am keeping track of the high volume of data, information, reports, and ideas flowing throughout the nonprofit and foundation worlds (yes, it is a bit of a compulsion…and I am not even including my favorite travel, shopping and coupon alerts).

It is a lot and I confess I do not read all of it. It is a form of meditation for me to scroll through emails and Twitter feeds while waiting in line at Aloha Salads. I skim, I save, I forward, I retweet – I copy and save for later reading (later when?). In fact, no one can be expected to keep up, so how does anyone make sense of it all, or even find what we need when we need it? Everyone being #OpenForGood and sharing everything is great, but who is reading it all? And how do we make what we are opening for good actually good?

Making Knowledge Usable

We have all experienced at some point Drowning in Information-Starving for Knowledge (John Naisbitt’s Megatrends…I prefer E.O. Wilson’s “starving for wisdom” theory). The information may be out there but rarely in a form that is easily found, read, understood, and most importantly used. Foundation Center and IssueLab have made it easier for people in the sector to know what is being funded, where new ideas are being tested, and what evidence and lessons are available. But nonprofits and foundations still have to upload and share many more of their documents than they do now. And we need to make sure that the information we share is readable, usable, and ready to be applied.

Hawaii Community Foundation Graphic

DataViz guru Stephanie Evergreen recently taught me a new hashtag: #TLDR – “Too Long, Didn’t Read.”

She now proposes that every published report be available in three formats – a one-page handout with key messages, a 3-page executive summary, and a 25-page report (plus appendices). In this way the “scanners,” “skimmers” and “deep divers” can access the information in the form they prefer and in the time they have. It also requires writing (and formatting) differently for each of these sets of eyes. (By the way, do you know which one you are?)

From Information to Influence

But it is not enough to make your reports accessible, searchable, and also easily readable in short and long forms; you also need to include the information people need to make decisions and act. It means deciding in advance who you want to inform and influence and what you want people to do with the information. You need to be clear about your purpose for sharing information, and you need to give people the right kinds of information if you expect them to read it, learn from it, and apply it.

“Give people the right kinds of information if you expect them to read it, learn from it, and apply it.”

Too many times I have read reports with promising findings or interesting lessons, and then I race through all the footnotes and the appendices at the back of the report looking for resources that could point me to the details of evidence and data or implementation guidance. I usually wind up trying to track down the authors by email or phone to follow up.

A 2005 study of more than 1,000 evaluations published in human services found only 22 well-designed and well-documented reports that shared any analysis of implementation factors – what lessons people learned about how best to put the program or services in place. We cannot expect other people and organizations to share knowledge and learn if they cannot access information from others that helps them use the knowledge and apply it in their own programs and organizations. YES, I want to hear about your lessons and “a-ha’s,” but I also want to see data and analysis of the common challenges that all nonprofits and foundations face:

  • How to apply and adapt program and practice models in different contexts
  • How to sustain effective practices
  • How to scale successful efforts to more people and communities

This means making sure that your evaluations and your reports include opening up the challenges of implementation – the same challenges others are likely to face. It also means placing your findings in the context of existing learning while also using similar definitions so that we can build on each other’s knowledge. For example, in our recent middle school connectedness initiative, our evaluator Learning for Action reviewed the literature first to determine specific components and best practices of youth mentoring so that we could build the evaluation on what had come before, and then report clearly about what we learned about in-school mentoring and open up  useful and comparable knowledge to the field. 

So please plan ahead and define your knowledge sharing and influence agenda up front and consider the following guidelines:

  • Who needs to read your report?
  • What information does your report need to share to be useful and used?
  • Read and review similar studies and reports and determine in advance what additional knowledge is needed and what you will document and evaluate.
  • Use common definitions and program model frameworks so we are able to continually build on field knowledge and not create anew each time.
  • Pay attention to and evaluate implementation, replication and the management challenges (staffing, training, communication, adaptation) that others will face.
  • And disseminate widely and share at conferences, in journals, in your sector networks, and in IssueLab’s open repository.

And I will be very happy to read through your implementation lessons in your report’s footnotes and appendices next time I am in line for a salad.

--Tom Kelly

Crafting A Better Tap of Knowledge
August 9, 2017

Gabriela Fitz is director of knowledge management initiatives at Foundation Center. This post is part of the Glasspockets’ #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new research and tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood.

Gabi Fitz photoThis past weekend, I went to visit an old meat packing plant in Chicago’s Back of the Yards neighborhood. The plant, renamed “Plant Chicago,” serves as a workshop and food production space, playing host to a number of micro-enterprises including a brewery and bakery. But it wasn’t the beer or even the pies that drew me there. It was their tagline, “Closed Loop, Open Source.”

If you know me (or the work of IssueLab at all), you know why I couldn’t resist. The closed loop approach is all about a circular economy, where we take “waste from one process and re-purpose it as inputs for another, creating a circular, closed-loop model of material reuse.” It’s a simple principle and one that I imagine most of us would get behind.

But what’s not so simple is building and maintaining those closed loop systems so that people begin to see (and taste) the benefits. Standing in the lobby of Plant Chicago it was painfully clear to me that circular economies, whether they are in food production or in knowledge production, require more than just good intentions.

Plant Chicago
Plant Chicago, a workshop and food production space, hosts micro-enterprises, including a brewery and bakery. Credit: Gabriela Fitz

Just as I started to feel the familiar weight of trying to execute systems change, I spotted a small sketch of a pyramid amongst a number of technical diagrams and development plans covering a large wall. This simple sketch was similar to a model many of you are probably familiar with but  is still worth describing. In the sketch, the base of the pyramid was labeled “beliefs and values.” The next level up was “practices and actions.” The top of the pyramid was “results.”

When it comes to the closed loop we care so much about at IssueLab, we keep seeing organizations try to skip from beliefs to results. The social sector wants shared learning without sharing; collective impact without collectivized intelligence. But open knowledge - like any sector-wide or organizational change - has to include a change in practices, not just beliefs. If we don’t adopt open knowledge practices, we can’t expect to see the results we hope for: improved program design and delivery at the community level or less duplication of avoidable mistakes. If we truly want to live up to the #OpenForGood ideal, our beliefs and values are simply not sufficient. (Note that the definition of closed loop I quote above is not about beliefs, it’s about actions, relying on verbs like “take,” “re-purpose,” and “create.”)

The good news is that we have the infrastructure to make a circular knowledge economy possible. We’ve built the plant. Tools like open licenses and open repositories were designed to facilitate and support change in knowledge sharing practices, making it easier for foundations to move up the levels of the pyramid.

Now, we just need to start taking a couple simple actions that reflect our beliefs and move us towards the results we want to see. If you believe in the #OpenForGood principle that social sector knowledge is a public good from which nonprofits and foundations can benefit, your foundation can: 1) use open licensing for your knowledge products, and 2) earn an #OpenForGood badge by sharing your knowledge products, like evaluations, through IssueLab’s open repository. Once those practices are as much part of the normal way of doing foundation business as cutting checks and producing summary reports are, we can all sit back and enjoy that beer, together.

--Gabriela Fitz

How to Make Grantee Reports #OpenForGood
July 20, 2017

Mandy Ellerton and Molly Matheson Gruen joined the [Archibald] Bush Foundation in 2011, where they created and now direct the Foundation's Community Innovation programs. The programs allow communities to develop and test new solutions to community challenges, using approaches that are collaborative and inclusive of people who are most directly affected by the problem. This post is part of the Glasspockets’ #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood.

Ellertonmandy20152
Mandy Ellerton

When we started working at the Bush Foundation in 2011, we encountered a machine we’d never seen before: the Lektriever. It’s a giant machine that moves files around, kind of like a dry cleaner’s clothes rack, and allows you to seriously pack in the paper. As a responsible grantmaker, it’s how the Bush Foundation had meticulously tracked and stored its files for posterity - in particular, grantee reports - for decades.

In 2013, the Bush Foundation had the privilege of moving to a new office. Mere days before we were to move into the new space, we got a frantic call from the new building’s management. It turned out that the Lektrievers (we actually had multiple giant filing machines!) were too heavy for the floor of the new building, which had to be reinforced with a number of steel plates to sustain their weight.

MMG 2015 Headshot1
Molly Matheson Gruen

The Lektrievers symbolized our opportunity to become more transparent and move beyond simply preserving our records, instead seeing them as relevant learning tools for current audiences. It was time to lighten the load and share this valuable information with the world.

Even with all this extra engineering, we would still have to say goodbye to one of the machines altogether for the entire system to be structurally sound. We had decades of grantee stories, experiences and learning trapped in a huge machine in the inner sanctum of our office, up on the 25th floor. 

Learning Logs Emerge

We developed our grantee learning log concept in the Community Innovation Programs as one way to increase the Foundation’s transparency. At the heart of it, our learning logs are a very simple concept: they are grantee reports, shared online. But, like many things that appear simple, once you pull on the string of change – the complexity reveals itself.

“Every Community Innovation project is an opportunity for others to learn and the learning logs are a platform to share this learning.”

Before we could save the reports from a life of oblivion in the Lektriever, build out the technology and slap the reports online, we needed to entirely rethink our approach to grantee reporting to create a process that was more mutually beneficial. First, we streamlined our grant accountability measures (assessing whether the grantees did what they said they’d do) by structuring them into a conversation with grantees, rather than as a part of the written reports. We’ve found that conducting these assessments in a conversation takes the pressure off and creates a space where grantees can be more candid, leading to increased trust and a stronger partnership.

Second, our grantee reports now focus on what grantees are learning in their grant-funded project. What’s working? What’s not? What would you do differently if you had it to do all over again? This new process resulted in reports that were more concise and to the point.

Finally, we redesigned our website to create a searchable mechanism for sharing these reports online. This involved linking our grant management system directly with our website so that when a grantee submits a report, we do a quick review and then the report automatically populates our website. We’ve also designed a way for grantees to be able to designate select answers as private when they want to share sensitive information with us, yet not make it entirely public. We leave it up grantee discretion and those selected answers do not appear on the website. Grantees designate their answers to be private for a number of reasons, most often because they discuss sensitive situations having to do with specific people or partners – like when someone drops out of the project or when a disagreement with a partner holds up progress. And while we’ve been pleased at the candor of most of our grantees, some are still understandably reluctant to be publicly candid about failures or mistakes.

But why does this new approach to grantee reporting matter, besides making sure the floor doesn’t collapse beneath our Lektrievers?

Bushfoundation-Lektriever photo
The Lektriever is a giant machine that moves files around, kind of like a dry cleaner’s clothes rack. The Bush Foundation had meticulously tracked and stored its files for posterity - in particular, grantee reports - for decades. Credit: Bush Foundation

Learning Sees the Light of Day

Learning logs help bring grantee learning into the light of day, instead of hiding in the Lektrievers, so that more people can learn about what it really takes to solve problems. Our Community Innovation programs at the Bush Foundation fund and reward the process of innovation–the process of solving problems. Our grantees are addressing wildly different issues: from water quality to historical trauma, from economic development to prison reform. But, when you talk to our grantees, you see that they actually have a lot in common and a lot to learn from one another about effective problem-solving. And beyond our grantee pool, there are countless other organizations that want to engage their communities and work collaboratively to solve problems.  Every Community Innovation project is an opportunity for others to learn and the learning logs are a platform to share this learning, making it #OpenForGood.

We also want to honor our grantees’ time. Grantees spend a lot of time preparing grant reports for funders. And, in a best case scenario, a program officer reads the report and sends the grantee a response of some kind before the report is filed away. But, let’s be honest – sometimes even that doesn’t happen. The report process can be a burden on nonprofits and the only party to benefit is the funder. We hope that the learning logs help affirm to our grantees that they’re part of something bigger than themselves - that what they share matters to others who are doing similar work.

We also hear from our grantees that the reports provide a helpful, reflective process, especially when they fill it out together with collaborating partners. One grantee even said she’d like to fill out the report more often than we require to have regular reflection moments with her team!

Learning from the Learning Logs

We only launched the learning logs last year, but we’ve already received some positive feedback. We’ve heard from both funded and non-funded organizations that the learning logs provide inspiration and practical advice so that they can pursue similar projects. A grantee recently shared a current challenge in their work. It directly connected to some work we knew another grantee had done and had written about in their learning log. So, since this knowledge was now out in the open, we were able to direct them to the learning log as a way to expand our grantee’s impact, even beyond their local community, and use it to help advance another grantee’s work.

Take, for example, some of the following quotes from some of our grantee reports:

  • The Minnesot Brain Injury Alliance's project worked on finding ways to better serve homeless people with brain injuries.  They reflected that, "Taking the opportunity for reflection at various points in the process was very important in working toward innovation.  Without reflection, we might not have been open to revising our plan and implementing new possibilities."
  • GROW South Dakota addressed a number of challenges facing rural South Dakota communities. They shared that, “Getting to conversations that matter requires careful preparation in terms of finding good questions and setting good ground rules for how the conversations will take place—making sure all voices are heard, and that people are listening for understanding and not involved in a debate.”
  •  The People's Press Project engaged communities of color and disenfranchised communities to create a non-commercial, community-owned, low-powered radio station serving the Fargo-Moorhead area of North Dakota. They learned “quickly that simply inviting community members to a meeting or a training was not a type of outreach that was effective.”

Like many foundations, we decline far more applications than what we fund, and our limited funding can only help communities tackle so many problems. Our learning logs are one way to try and squeeze out more impact from those direct investments. By reading grantee learning logs, hopefully more people will be inspired to effectively solve problems in their communities.

We’re not planning to get rid of the Lektrievers anytime soon – they’re pretty retro cool and efficient. They contain important historical records and are incredibly useful for other kinds of record keeping, beyond grantee documentation. Plus, the floor hasn’t fallen in yet. But, as Bush Foundation Communications Director Dominick Washington put it, now we’re unleashing the knowledge, “getting it out of those cabinets, and to people who can use it.”

--Mandy Ellerton and Molly Matheson Gruen

What Will You #OpenForGood?
July 13, 2017

Janet Camarena is director of transparency initiatives at Foundation Center.  This post is part of the Glasspockets’ #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood.

Janet Camarena Photo

This week, Foundation Center is launching our new #OpenForGood campaign, designed to encourage better knowledge sharing practices among foundations.  Three Foundation Center services—Glasspockets, IssueLab, and GrantCraft are leveraging their platforms to advance the idea that philanthropy can best live up to its promise of serving the public good by openly and consistently sharing what it’s learning from its work.  Glasspockets is featuring advice and insights from “knowledge sharing champions” in philanthropy on an ongoing #OpenForGood blog series; IssueLab has launched a special Results platform allowing users to learn from a collective knowledge base of foundation evaluations; and a forthcoming GrantCraft Guide on open knowledge practices is in development.

Although this campaign is focused on helping and inspiring foundations to use new and emerging technologies to better collectively learn, it is also in some ways rooted in the history that is Foundation Center’s origin story.

OFG-twitter

A Short History

Sixty years ago, Foundation Center was established to provide transparency for a field in jeopardy of losing its philanthropic freedom due to McCarthy Era accusations that gained traction in the absence of any openness whatsoever about foundation priorities, activities, or processes.  Not one, but two congressional commissions were formed to investigate foundations committing alleged “un-American activities.”  As a result of these congressional inquiries, which spanned several years during the 1950s, Foundation Center was established to provide transparency in a field that had nearly lost everything due to its opacity. 

“The solution and call to action here is actually a simple one – if you learn something, share something.”

I know our Transparency Talk audience is most likely familiar with this story since the Glasspockets name stems from this history when Carnegie Corporation Chair Russell Leffingwell said, “The foundation should have glass pockets…” during his congressional testimony, describing a vision for a field that would be so open as to allow anyone to have a look inside the workings and activities of philanthropy.  But it seems important to repeat that story now in the context of new technologies that can facilitate greater openness.

Working Collectively Smarter

Now that we live in a time when most of us walk around with literal glass in our pockets, and use these devices to connect us to the outside world, it is surprising that only 10% of foundations have a website, which means 90% of the field is missing discovery from the outside world.  But having websites would really just bring foundations into the latter days of the 20th century--#OpenForGood aims to bring them into the present day by encouraging foundations to openly share their knowledge in the name of working collectively smarter.

What if you could know what others know, rather than constantly replicating experiments and pilots that have already been tried and tested elsewhere?  Sadly, the common practice of foundations keeping knowledge in large file cabinets or hard drives only a few can access means that there are no such shortcuts. The solution and call to action here is actually a simple one—if you learn something, share something

In foundations, learning typically takes the form of evaluation and monitoring, so we are specifically asking foundations to upload all of your published reports from 2015 and 2016 to the new IssueLab: Results platform, so that anyone can build on the lessons you’ve learned, whether inside or outside of your networks. Foundations that upload their published evaluations will receive an #OpenForGood badge to demonstrate their commitment to creating a community of shared learning.

Calls to Action

But #OpenForGood foundations don’t just share evaluations, they also:

  • Open themselves to ideas and lessons learned by others by searching shared repositories, like those at IssueLab as part of their own research process;
  • They use Glasspockets to compare their foundation's transparency practices to their peers, add their profile, and help encourage openness by sharing their experiences and experiments with transparency here on Transparency Talk;
  • They use GrantCraft to hear what their colleagues have to say, then add their voice to the conversation. If they have an insight, they share it!

Share Your Photos

“#OpenForGood foundations share their images with us so we can show the collective power of philanthropic openness, not just in words, but images. ”

And finally, #OpenForGood foundations share their images with us so we can show the collective power of philanthropic openness, not just in words, but images.  We would like to evolve the #OpenForGood campaign over time to become a powerful and meaningful way for foundations to open up your work and impact a broader audience than you could reach on your own. Any campaign about openness and transparency should, after all, use real images rather than staged or stock photography. 

So, we invite you to share any high resolution photographs that feature the various dimensions of your foundation's work.  Ideally, we would like to capture images of the good you are doing out in the world, outside of the four walls of your foundation, and of course, we would give appropriate credit to participating foundations and your photographers.  The kinds of images we are seeking include people collaborating in teams, open landscapes, and images that convey the story of your work and who benefits. Let us know if you have images to share that may now benefit from this extended reach and openness framing by contacting openforgood@foundationcenter.org.

What will you #OpenForGood?

--Janet Camarena

Transparency and the Art of Storytelling
June 28, 2017

Mandy Flores-Witte is Senior Communications Officer for the Kenneth Rainin Foundation. This post is part of the Glasspockets’ #OpenForGood series done in partnership with the Fund for Shared Insight. The series explores new tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood. View more posts in the series.

Mandy Flores-WitteFoundations are uniquely poised to support higher-risk projects, and as a result, failures can happen. Recently, I was searching online for examples on how to share the story about a grant that had some unexpected outcomes and found that, while the field strives to be transparent, it can still be a challenge to learn about initiatives that didn’t go as planned.

Communicating about a project doesn’t always have to happen in a scholarly report or detailed analysis, or by hiring experts to produce an evaluation. Sharing what you learned can be as simple as telling a story.

Embracing the Facts and Checking Our Ego

"Sharing stories can help you reach people in a way that statistics cannot."

When the Rainin Foundation funded our first public art installation in San Francisco’s Central Market, a busy neighborhood undergoing a significant economic transformation, we knew it was an experiment with risks. The art installation’s large platform, swing, and see saw were designed to get neighborhood residents, tech workers, customers of local businesses, and visitors — people spanning the economic spectrum—to interact. There’s no doubt that the project succeeded at bringing people together. But after seven months, it was relocated to a different part of the city because of complaints and safety concerns about the types of people and activities it attracted.

These issues were addressed at several community meetings—meetings that helped build stronger relationships among project stakeholders such as city departments, businesses, artists, local nonprofits, and neighbors. We were disappointed that the project did not go as planned, but we were amazed to see how one public art installation could spark so many conversations and also be a platform for exposing the city’s social issues. We knew we had to share what we learned. Or put another way, we saw an opportunity to be #OpenForGood.

Selecting a Medium for Sharing

Rainin Foundation - Block by Block
The Kenneth Rainin Foundation hosts "Block by Block," a public music and dancing event. Credit: Darryl Smith, Luggage Store Gallery

We considered a formal assessment to communicate our findings, but the format didn’t feel right. We wanted to preserve the stories and the voices of the people involved — whether it was the job fair hosted by a nearby business to help drug dealers get out of the "game," the woman who sought refuge at the installation from domestic violence, or the nonprofit that hosted performances at the site. These stories demonstrated the value of public art.

We decided the most engaging approach would be to have our partners talk candidly about the experience. We selected Medium, an online storytelling platform, to host the series of "as told to" narratives, which we believed would be the most authentic way to hear from our partners. Our intention was to use the series as a tool to start a conversation. And it worked.

Taking Risks is Uncomfortable

The Rainin Foundation intentionally supported art in the public realm — knowing the risks involved — and we thought the discussion of what happened should be public, too. It was uncomfortable to share our missteps publicly, and it made us and our partners vulnerable. In fact, just weeks before publishing the stories, we were cautioned by a trusted colleague about going forward with the piece. The colleague expressed concern it could stir up negative feelings and backfire, harming the reputation of the foundation and our partners.

We took this advice to heart, and we also considered who we are as a foundation. We support cutting-edge ideas to accelerate change. This requires us to test new approaches, challenge the status quo, and be open to failure in both our grantmaking and communications. Taking risks is part of who we are, so we published the series.

Jennifer Rainin, CEO of the Kenneth Rainin Foundation, shares the year's pivotal moments in Turning Points: 2015.

We’ve applied a transparent approach to knowledge-sharing in other ways as well. To accompany one of our annual reports, the foundation created a video with Jen Rainin, our chief executive officer, talking about the foundation’s pivotal moments. Jen read some heartfelt personal letters from the parents of children suffering from Inflammatory Bowel Disease, explaining how their children were benefitting from a diet created by a researcher we support. Talking about scientific research can be challenging and complex, but sharing the letters in this way and capturing Jen’s reaction to them enabled us to humanize our work. The video was widely viewed (it got more hits than the written report), and has inspired us to continue experimenting with how we share our work.

Start Talking About Impact

I encourage foundations to look beyond formal evaluations and data for creative ways to be #OpenForGood and talk about their impact. While reports are important to growth and development, sharing stories can help you reach people in a way that statistics cannot. Explore new channels, platforms and content formats. Keep in mind that videos don’t have to be Oscar-worthy productions, and content doesn’t have to be polished to perfection. There’s something to be gained by encouraging those involved in your funded projects to speak directly and honestly. It creates intimacy and fosters human connections. And it’s hard to elicit those kinds of feelings with newsletters or reports.

What are your stories from the times you’ve tried, failed, and learned?

-- Mandy Flores-Witte

The Real World is Messy. How Do You Know Your Foundation Is Making an Impact?
June 7, 2017

Aaron Lester is an experienced writer and editor in the nonprofit space. In his role as content marketing manager at Fluxx, Aaron’s goal is to collect and share meaningful stories from the world of philanthropy. This post is part of the Glasspockets’ #OpenForGood series done in partnership with the Fund for Shared Insight. The series explores new tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood. View more posts in the series.

AaronLesterIn a perfect world, foundations could learn from every mistake, build on every new piece of knowledge, and know with certainty what impact every effort has made.

Of course, we’re not in that world. We’re in the real, fast-paced world of nonprofits where messy human needs and unpredictable natural and political forces necessitate a more flexible course. In that world, it’s more challenging to measure the effects of our grantmaking efforts and learn from them. It turns out knowledge sharing is a tough nut to crack.

And without meaningful knowledge sharing, we’re left struggling to understand the philanthropic sector’s true impact — positive or negative — within a single organization or across many. The solution is a more transparent sector that is willing to share data — quantitative as well as qualitative — that tells stories of wins and losses, successes and failures—in other words, a sector that is #OpenForGood. But, of course, this is much easier said than done.

My role at Fluxx creates many opportunities for me to talk with others in the field and share stories the philanthropic sector can learn from. I recently had the chance to speak with grantmakers on this very issue.

Measuring Whose Success?

Even within a foundation, it can be difficult to truly understand the impact of a grant or other social investment.

“Lose the mindset defined by a fear of failure; instead, embrace one that drives you to search for opportunity.”

As Adriana Jiménez, director of grants management at the ASPCA and former grants manager at the Surdna Foundation, explains, it’s difficult for foundations to prove conclusively that it’s their slice of the grantmaking that has made a meaningful difference in the community. “When you collect grant-by-grant data, it doesn’t always roll up to your foundation’s goals or even your grant’s goals.”

The issue is that there’s no standardized way to measure grantmaking data, and it’s an inherently difficult task because there are different levels of assessment (grant, cluster, program, foundation, etc.), there is similar work being done in different contexts, and a lot of data is only available in narrative form.

One way to combat these challenges is to make sure your foundation is transparent and in agreement around shared goals with grantees from the start of the relationship. Being too prescriptive or attempting to standardize the way your grantees work will never create the results you’re after. Part of this early alignment includes developing clear, measurable goals together and addressing how the knowledge you’re gaining can and should translate into improvements in performance.

A grantee should never have to alter their goals or objectives just to receive funding. That sends the wrong message, and it provides the wrong incentive for grantees to participate in knowledge-sharing activities. But when you work as partners from the start and provide space for grantees to collaborate on strategy, a stronger partnership will form, and the stories your data tells will begin to be much more meaningful.

The Many Languages of Human Kindness

If sharing knowledge is difficult within one organization, it’s even more challenging across organizations.

FluxxJiménez points out that a major challenge is the complexity of foundations, as they rely on different taxonomies and technologies and discuss similar issues using different language. Every foundation’s uniqueness is, in its day-to-day work, its strength, but in terms of big-picture learning across organizations, it’s a hurdle.

Producing cohesive, comprehensive data out of diverse, fragmented information across multiple organizations is a huge challenge. Mining the information and tracking it in an ongoing way is another obstacle made more difficult because the results are often more anecdotal than they are purely quantitative. And when this information is spread out over so many regions and focus areas, the types of interventions vary so widely that meaningful knowledge sharing becomes untenable.

Gwyneth Tripp, grants manager at Blue Shield of California Foundation, also cites a capacity issue. Most foundations don’t have designated roles for gathering, tracking, organizing, and exchanging shareable data, so they resort to asking staff who already have their own sizable to-do lists. Tripp says:

“They have an interest and a desire [in knowledge sharing], but also a real challenge of balancing the everyday needs, the strategic goals, the relationships with grantees, and then adding that layer of ‘let’s learn and think about it all’ is really tough to get in.

“Also, becoming more transparent about the way you work, including sharing successes as well as failures, can open your foundation up to scrutiny. This can be uncomfortable. But it’s important to delineate between ‘failure’ and ‘opportunity to learn and improve.’”

Sparking Change

But foundations know (possibly better than anyone else) that obstacles don’t make accomplishing a goal impossible.

And this goal’s rewards are great: When foundations can achieve effective knowledge sharing, they’ll have better insights into what other funding is available for the grantees within the issues they are tackling, who is being supported, which experiments are worth replicating, and where there are both gaps and opportunities. And with those insights, foundations gain the ability to iterate and improve upon their operations, even leading to stronger, more strategic collaborations and partnerships.

Creating and promoting this kind of accessible, useful knowledge sharing starts with a few steps:

  1. Begin from within. Tracking the impact of your grantmaking efforts and sharing those findings with the rest of the sector requires organizations to look internally first. Start by building a knowledge management implementation plan that involves every stakeholder, from internal teams to grantee partners to board executives.
  1. Determine and prioritize technology needs. Improvements in technology — specifically cloud-based technology — are part of what’s driving the demand for data on philanthropic impact in the first place. Your grants management system needs to provide integrated efficiency and accessibility if you want to motivate staff participation and generate usable insights from the data you’re collecting. Is your software streamlining your efforts, or is it only complicating them?
  1. Change your mindset. Knowledge sharing can be intimidating, but it doesn’t have to be. Lose the mindset defined by a fear of failure; instead, embrace one that drives you to search for opportunity. Promote a stronger culture of knowledge sharing across the sector by sharing your organizational practices and lessons learned. Uncover opportunities to collect data and share information across organizations.

There’s no denying that knowledge sharing benefits foundations everywhere, along with the programs they fund. Don’t let the challenges hold you back from aiming for educational, shareable data — you have too much to gain not to pursue that goal.  What will you #OpenForGood?

--Aaron Lester 

Practicing Transparency for Discovery and Learning
May 22, 2017

Richard Russell Resize Photo

At The Russell Family Foundation, we appreciate tools that help make the invisible more visible. This pursuit of transparency is a family trait that stems from our experience in the financial services industry, where we invented stock indexes that more truly reflect the market. The Frank Russell Company earned a reputation for quality research, long-term thinking and general excellence. We do our best to carry on in that tradition at the foundation.

In particular, we seek to communicate and practice our core values, such as lifelong learning and the importance of relationships. During the past 20 years, these touchstones have served us well.

Richard Woo Photo

Today, we’re relying on them even more as we prepare for a period of significant transition, which involves new roles for family members, changes to leadership and staff positions, and evolving our core programs. What’s different now, however, is that we are employing new tools to guide us.

Legacy Communications Toolkit

For us, transparency is as much about discovery as disclosure. That’s because the discovery process is how we determine: (1) what we know, (2) what we don’t know, (3) where we stand, and (4) what boundaries, if any, exist for a specific topic. Discovery can be a humbling and inspiring experience. Sometimes it exposes our blind spots; other times it reveals important new opportunities. Nevertheless, learning is the payoff for investing in transparency and discovery.

In 2016, we took steps to re-affirm our founding principles, in order to set the stage for the next 20 years of operations. We identified the need for additional frameworks to help guide us through important issues such as leadership succession and grant strategy. From those efforts, we’ve bundled together all the useful pieces, which we call our Legacy Communications Toolkit (it's a work in progress).

Over the past couple of years, we have developed some new components. One centerpiece is our three-dimensional chessboard, which we introduced in our last blog post. It is a useful tool for initiating and clarifying conversation about important issues that might otherwise be difficult to surface. The chessboard can be used to visualize and understand the complex layers of communications and expectations associated with foundation life – like how transparent we need to be when revising our grant strategy, or how we understand a family member who doesn’t want to participate.

Case in point: In a family foundation, tensions can arise when trustees hold competing or conflicting opinions and worldviews. If not handled sensitively, principled conversations among peers can become deeply personal, causing individuals to briefly lose sight of the organizational mission and the goal of serving the public trust. One such discussion arose among our trustees in 2016; at issue was the scope of themes that should be eligible for funding. The intentional and purposeful conversation among family trustees about this matter was facilitated by a skilled and trusted organizational consultant outside the foundation. With that assistance, the trustees clarified the boundaries between personal, familial, organizational and public goals – and eventually settled on a decision that balanced the greatest number of interests especially that of serving the foundation’s public mission. This exercise in more transparent communication among trustees and consensus decision-making was essentially the laboratory that gave rise to the three-dimensional chessboard.

Can you imagine applying the three-dimensional chessboard to a crucial conversation waiting to happen at a foundation near you?

Another dynamic tool we rely on is a graphic timeline of the foundation’s history. It is a 20-foot mural, on display in our office that highlights important moments from our beginnings in 1999 to the present day. The timeline is filled with photos, charts, and quotations, with more being added as time passes. This visual history does more than remind us of the past; it helps us appreciate the context of defining moments. Those moments (as well as the details of our history) constitute our collective narrative. We are continually exploring and discovering the appropriate balance between transparency, family privacy and a public trust.

TRFF visual-timeline

The Russell Family Foundation uses its timeline as a teaching tool.  Source: The Russell Family Foundation

To date, the timeline has proven to be an invaluable teaching tool, especially for younger family members who wish to take active roles in the foundation, or newcomers to our enterprise who want to know how we got here. It stimulates conversation and questions, and it has helped us onboard new community board members and staff by giving them a vivid sense of our history and mission. Grantees and community visitors are often intrigued by the informal imagery captured on the story wall, which invites their curiosity, discussion and ultimately a deeper relationship with our work.

Imagining the Future Together

The elements of our Legacy Communications Toolkit emphasize storytelling in its many forms: visual, narrative, historical, data-driven, and more. Storytelling activates our imaginations so we can see the changes we’ve accomplished or wish to make going forward. This process also helps us envision what level of transparency is required.

A good example of this approach is how we are currently updating one of our longest standing environmental programs, which focuses on the waters of Puget Sound.

After a decade of investment and hundreds of grants employing a wide variety of tactics, we took stock of our impact on Puget Sound protection and restoration. We reviewed our grant history, studied the most recent literature, interviewed regional thought leaders, and drew upon the relationships with our longtime grantees. The effort was illuminating – making the invisible more visible. Despite all that had been accomplished over the years, we recognized that our efforts were a mile wide and an inch deep.

Visualizing our impact in this way gave us the motivation to develop a new approach. We knew from past projects that there was an appetite for alignment among nonprofits. We also realized that our broad network of individual grantees gave us credibility to encourage greater collaboration within the field. We put these pieces together to create the Puget Sound Collective, an informal group of nonprofits and funders who desire a more coordinated regional vision and strategy for Puget Sound recovery.

Our partners joined the Puget Sound Collective for the possibility of making greater impact and doing more together. But, naturally, they want to know where their peers are coming from, how specific goals will be set, and how decisions will be made. In other words, they expect transparency. We knew going in that openness and candor would be the table stakes for this new forum. However, bringing people together to work across differences (organizations, missions, geographies, genders, race, class, etc.) requires transparency in all directions. That takes time; it takes deep, trusting relationships.

The experience has reinforced how important it is for the foundation to practice transparent behavior. We are building the road alongside our partners as we walk it. We need to be honest when we can only see as far down the road as they can. We need to be clear in our intention for grantees to set the agenda – to offer support without control – because relationships like this move at the speed of trust.

At a time when the country is experiencing deep divides and uncertainty, family foundations can reassure their constituents by demonstrating a commitment to transparency about their story and the essentials behind the work they do. However, they should also bear in mind the Goldilocks Principle – “not too hot, not too cold, but just right.” They need to find the best fit for their organization because the benefits of transparency are measured in degrees.

We hope our methods, experiments, and discoveries serve as useful references. Mahalo to those who commented on the first blog post. To everyone reading this installment, please share your thoughts, counterpoints or questions.

--Richard Russell and Richard Woo

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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
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    Director, Transparency Initiatives
    Foundation Center

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