Transparency Talk

Category: "Diversity" (16 posts)

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.

Open Yourself Up to New Solutions
April 5, 2017

SAVE THE DATE: April 13, 1:30-3:00 p.m. EST.  Like this blog series?  Attend our Inside Innovation Funding event in person in San Francisco, or virtually via livestream in San Francisco.

(Christie George is the director of New Media Ventures, a mission-driven venture firm and donor collaborative supporting progressive startups.  New Media Ventures supports companies and organizations that – through the use of new media and technology – build advocacy movements, tell new stories and drive civic engagement.)

This post is part of the Funding Innovation series, produced by Foundation Center's Glasspockets and GrantCraft, and underwritten by the Vodafone Foundation.  The series explores funding practices and trends at the intersection of problem-solving, technology, and design. Please contribute your comments on each post and share the series using #fundinginnovation. View more posts in the series.

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If you’ve been following the headlines since the 2016 election, you’ve probably thought about the growing polarization in our country. You may share my worry about filter bubbles and political echo chambers, or you might have recommitted to sparking conversations with friends across the aisle. At New Media Ventures (NMV), we see the same need in the funding world. From our perspective, most people fund people and organizations they already know, moving money through referrals and established networks. But if we’re going to solve the big problems facing our world, we need to move beyond our personal echo chambers.

As a mission-driven venture fund that invests in both for-profit and nonprofit startups, NMV stands with one foot in the venture capital world and one foot in philanthropy – driving change at the intersection of technology, media, and civic engagement. When we first got started, we found ourselves sourcing opportunities in all the traditional ways – using our personal networks and attending conferences – but we quickly realized that we needed to try something different to ensure that we were actually identifying new approaches to the problems we wanted to solve. In 2014, we launched the NMV Innovation Fund with two main goals: 1) increase the number of investable projects crossing our desks (our deal flow); and 2) break through the bias for “the usual suspects” to fund more diverse entrepreneurs.

In the simplest terms, the Innovation Fund is an open call for world-changing innovations. Twice a year, we ask our network, and our network’s network, and their networks (you get the idea: we cast a wide net) to send us the best opportunities they’ve seen for how technology can catalyze progressive change. This year, in response to our “Resist and Rebuild” Open Call, we received nearly 500 applications – a new record – and we are blown away by the creativity of the applicants.

“...If you haven’t tried an open call, you might be missing out on amazing solutions beyond the usual suspects.”

While it may sound overwhelming to sort through hundreds of applications, we have developed a methodology for doing this work efficiently.  This process includes recruiting a volunteer screening committee of funding peers, simplifying our application as much as possible, asking more detailed questions only to the applicants who rise to the top, and using a technology platform to easily manage all of the applications in one batch. Ultimately, New Media Ventures makes the final funding decision, but the screening committee is one of the most powerful aspects of the process – many heads are better than one – and working collaboratively with other funders allows us to leverage different domain expertise in evaluating opportunities. 

Here are two takeaways from our experience opening ourselves up to open calls, and the reasons why we hope other funders will consider similar approaches:

1) Big problems require new solutions (and diversity is not a “nice to have”). Funding exclusively through referrals can limit what funders see and increase the risk of confirmation bias – one of the reasons white men are so much more likely to get venture capital funding in Silicon Valley. By having an open and transparent application process, heavily marketed to ensure we’re getting outside our own bubbles, we’ve made a tremendous
impact on the diversity of our portfolio. Our website, blog, social media platforms, and partners broadcast details about the open call, allowing us to
reach new audiences who may be deterred by less transparent philanthropic opportunities. We’re proud that 65% of Innovation Fund applicants have New Media Ventures logoat least one female and/or trans founder, and 30% have at least one person of color on the founding team. We still have a long way to go, but by comparison 8% of venture capital goes to women founders and 13% to founders of color.

However, focusing on diversity is not a “nice to have” and it’s not just about the numbers – it’s a core part of our strategy. Our societies and systems are facing entrenched problems, and solving them will require new and bold solutions. We need all hands on deck. Women, trans people, and leaders of color have much-needed perspectives and expertise, but often lack access to capital, networks, and traditional philanthropy. For example, news platform Blavity, founded by a young black woman, has grown to reach 7 million readers by creatively combining pop culture content with thoughtful coverage of race and gender issues. We might never have identified this opportunity were it not for our open call.

2) Less control over outcomes leads to more welcome surprises. When funders issue a request for proposals (RFP), we essentially define the terms of the discussion: we’ve often developed a strategy, and we’re looking for organizations to execute that strategy. Unlike a traditional RFP, the Innovation Fund Open Call process has very broad parameters by design. We’ve found this requires us to be comfortable with uncertainty and develop the humility to stay in a learning mindset. The approach isn’t without risks. What if you open the gates for a broad range of applicants, and don’t find anything you want to fund? What if you keep your parameters flexible and only get applications that aren’t in your wheelhouse? But with careful planning and a good process, we have developed strategies to mitigate the risks, and find we gain real value from being able to scan the field and identify gaps as well as opportunities. It has paid off in delightful and unexpected ways.

For many of our portfolio organizations, NMV is their first institutional funder, and our early investment gives our grantees the validation and runway they need to go on to great things: CoWorker.org hosted the Summit on Worker Voice with President Obama; Blavity went on to participate in 500 Startups; Vote.org got into Y Combinator and scaled up quickly to send SMS voting reminder messages to more than 1 million people in swing states leading up to the election. And that’s just a few examples.

To sum it up, if you haven’t tried an open call, you might be missing out on amazing solutions beyond the usual suspects. If boosting innovation is one of your goals, we recommend starting small and collaborating with others to share the work. Consider carving out a portion of your grantmaking budget to fund projects selected through an open process, and remember that you don’t have to reinvent the wheel. NMV and other similar groups have developed deep expertise around open calls and we’re excited to partner with other funders. In fact, we did just that when we worked with the Pluribus Project on a democracy-focused open call last year.

So go ahead, open up and let yourself be surprised. It worked for us.

--Christie George

 

Soulful Innovation: Increasing Diverse Tech Entrepreneurship
February 22, 2017

SAVE THE DATE: April 13, 1:30-3:00 p.m. EST.  Like this blog series?  Attend our Look Inside Innovation Funding event in person or via livestream in San Francisco.  More details and registration info coming in March.

C-Brown-Photo(Cedric Brown has been a leader in philanthropy and the civil society sector for nearly two decades. He is currently the Chief of Community Engagement at the Kapor Center for Social Impact, in Oakland, California. The Kapor Center won the 2017 Crunchies Social Impact Award.)

This post is part of the Funding Innovation series, produced by Foundation Center's Glasspockets and GrantCraft, and underwritten by the Vodafone Americas Foundation. The series explores funding practices and trends at the intersection of problem-solving, technology, and design. Please contribute your comments on each post and share the series using #fundinginnovation. View more posts in the series

Frankly, I get tired of talking about innovation. Sometimes discussions about innovation come across as Sisyphean pursuits, where style is greater than substance, and preening is greater than practice. I’m looking for conversations about innovation with soul. With gravitas. With a conscience. Ones that advance uplifting solutions that make this Earth more habitable or help more people meet their hierarchy of needs (or as of late, that strengthen the fast-unraveling social contract necessary for humankind to co-exist).

Three years ago at the behest of our benefactors, the then-Kapor Foundation began to explore how to move away from our traditional responsive grantmaking. The benefactors had begun to invest in seed-staged tech startups that aim to address and mitigate equality gaps. They witnessed the power of designing solutions for markets - "communities" - that operate at scale. They saw how different and disruptive ways of approaching problem solving can create a culture shift. They came to us, the foundation staff, and requested that we start thinking about this intersection of tech-for-good and our grantmaking work.

“Are we overlooking the resourcefulness that resides in the 'hood, favela, sticks, and bush?”

In the ensuing years, we experimented with different approaches, borrowing from our new knowledge of Lean Startup principles. Through a clunky, iterative learning process - which in hindsight I would like to label as our R&D - we decided to lead the way by doing our part to expand access to the tech sector and innovation economy.

Van Jones has shared that his dear friend Prince said we need to create a "Black Zuckerberg." While I take issue with that particular mold (pattern recognition and Ivy league degree-as-entry-barrier are part of tech's diversity problem), I get The Purple One's point, echoed by Mitch Kapor: "Genius is evenly distributed across zip codes, but opportunity is not." Working with a variety of partners in this ecosystem, we seek to plug leaks in the tech talent pipeline while sharpening the skills and talents that reside in all of our diverse communities.

To this point, I’ve judged a number of youth hackathons and design sessions, mostly attended by low-income, “low opportunity,” or similarly-labeled young people. These youth are participating in these activities as an initial exposure to tech skill-building and careers, and I am consistently impressed by how these young teams create apps that address information and resource gaps: student loan payment platforms; mentoring matching; anonymous bully identification; and safe passage routing among them.  

Our premise is that as the high-tech industry becomes more inclusive, companies and teams will become better at problem solving, will create better products and solutions that serve a wider market, and will utilize tech-driven platforms to solve pressing problems that are informed by their lived experiences. Our backup? Heavy hitters like  McKinsey, Catalyst, Kellogg and Stanford have found this to be true.

How are we benefiting from the terrific brainpower, scrappiness, and necessity - as the mother of invention - that resides in nonprofit leaders, in low-income communities, with people who are "making a way out of no way" as my church folks used to say?  Are we overlooking the resourcefulness that resides in the 'hood, favela, sticks, bush?

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You've heard these questions before, I'm sure. So what are we doing about it?

We're catalyzing and strengthening tech innovation, in line with the theme of this blog, by introducing and preparing more people to lead its creation. Tech shouldn't be an insular economy; now more than ever, we need thinkers, tinkerers, designers, and dreamers who are motivated by the pursuit of a significantly positive impact rather than a sinfully profitable buyout.

In 2017, the Kapor Center - including our sibling organizations, Kapor Capital and Level Playing Field Institute - are committed to increasing diverse tech entrepreneurship, access to capital, access to tech and STEM education, and building strong community institutions to promote a more diverse tech ecosystem in the Bay Area, with a special focus on Oakland, our home.

We’re employing a range of old tools for new outcomes - convening key partners to coordinate around systems-level goals (kind of collective impact-ish), providing financial support to select roundtables to support this coordination work, and utilizing the visibility of our benefactors and brand to raise awareness about the issues at hand and to channel resources to efforts aligned with our work, helping to create a larger, stronger network of collaborators. And we’re using our brand-spankin’ new building on Oakland’s Broadway corridor to host events that welcome, validate, leverage, and enrich diverse talent - namely people of color and women - as they pursue their entrepreneurship, technical, and impact goals. We see this work as a powerful overlay between the ubiquity of tech, the possibility of entrepreneurship, the integrity of fairness, and the necessity of economic mobility and empowerment for a just society.

But back to the issue at hand - innovation. I think that soulful, meaningful, conscientious innovation is rooted in a nagging question: “What can we do to be more effective?” It’s organic; a quest to find the bull’s eye of effectiveness en route to real impact. It requires experimentation, evolution, and even a bit of envy - as a competitive motivator to be top of class, of course. And while so many of these variables are present in innovation economy practitioners, I’d like to see them more firmly rooted in addressing real world issues informed by and for real people.

--Cedric Brown

The Foundation Transparency Challenge
November 2, 2016

Janet CamarenaI often get asked which foundations are the most transparent, closely followed by the more skeptical line of questioning about whether the field of philanthropy is actually becoming more transparent, or just talking more about it.  When Glasspockets launched six years ago, a little less than 7 percent of foundations had a web presence; today that has grown to a still underwhelming 10 percent.  So, the reality is that transparency remains a challenge for the majority of foundations, but some are making it a priority to open up their work. 

Our new Foundation Transparency Challenge infographic is designed to help foundations tackle the transparency challenge. It provides an at-a-glance overview of how and why foundations are prioritizing transparency, inventories common strengths and pain points across the field, and highlights good examples that can serve as inspiration for others in areas that represent particular challenges to the field. 

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Using data gathered from the 81 foundations that have taken and shared the “Who Has Glass Pockets?” transparency assessment, we identified transparency trends and then displayed these trends by the benefits to philanthropy, demonstrating the field's strengths and weaknesses when it comes to working more openly.

Transparency Comfort Zone

Despite the uniqueness of each philanthropic institution, looking at the data this way does seem to reveal that the majority of foundations consider a few elements as natural starting points in their journey to transparency.  As we look across the infographic, this foundation transparency comfort zone could be identified by those elements that are shared by almost all participating foundations:

  • Contact Information
  • Mission Statement
  • Grantmaking Priorities
  • Grantmaking Process
  • Key Staff List

Transparency Pain Points

On the flip side, the infographic also reveals the toughest transparency challenges for philanthropy, those elements that are shared by the fewest participating funders:

  • Assessments of Overall Foundation Performance
  • Diversity Data
  • Executive Compensation Process
  • Grantee Feedback
  • Open Licensing Policies
  • Strategic Plans

What’s In It for Me?

Community of Shared LearningOnce we start talking about the pain points, we often get questions about why foundations should share certain elements, so the infographic identifies the primary benefit for each transparency element.  Some elements could fit in multiple categories, but for each element, we tried to identify the primary benefit as a way to assess where there is currently the most attention, and where there is room for improvement. When viewed this way, there are areas of great strength or at least balance between strengths and weaknesses in participating foundations when it comes to opening up elements that build credibility and public trust, and those that serve to strengthen grantee relationship-building.  And the infographic also illustrates that philanthropic transparency is at its weakest when it comes to opening up its knowledge to build a community of shared learning.  For a field like philanthropy that is built not just on good deeds but on the experimentation of good ideas, prioritizing knowledge sharing may well be the area in which philanthropy has the most to gain by improving openness. 

“The reality is that transparency remains a challenge of foundations, but some are making it a priority to open up their work.”

And speaking of shared learning, there is much to be learned from the foundation examples that exist by virtue of participating in the “Who Has Glass Pockets?” assessment process. Our transparency team often receives requests for good examples of how other foundations are sharing information regarding diversity, codes of conduct, or knowledge sharing just to name a few, so based on the most frequently requested samples, the infographic links to actual foundation web pages that can serve as a model to others.

Don’t know what a good Code of Conduct looks like?  No problem, check out the samples we link to from The Commonwealth Fund and the Alfred P. Sloan Foundation. Don’t know how to tackle sharing your foundation’s diversity data?  Don’t reinvent the wheel, check out the good examples we flagged from The California Endowment, The Rockefeller Foundation, and Rockefeller Brothers Fund. A total of 19 peer examples, across seven challenging transparency indicators are offered up to help your foundation address common transparency pain points.

Why did we pick these particular examples, you might ask?  Watch this space for a follow-up blog that dives into what makes these good examples in each category.

#GlasspocketsChallenge

And more importantly, do you have good examples to share from your foundation’s transparency efforts? Add your content to our growing Glasspockets community by completing our transparency self-assessment form or by sharing your ideas with us on Twitter @glasspockets with #GlasspocketsChallenge and you might be among those featured next time!

--Janet Camarena

 

Eye on Golden Philanthropy: Michael Phelps Expands the Pool of Future Olympians
August 11, 2016

(Melissa Moy is special projects associate for Glasspockets. For more information about Olympians and their philanthropy, visit Glasspockets’ Going for Gold.)

Michael Phelps Rio PHOTOIf recent history is any indication, Olympic veteran Michael Phelps will make a huge splash at the Olympic Games in Rio. 

As the most decorated Olympian in history, Phelps debuted as the U.S. flag bearer in this Summer Olympics’s Parade of Nations during the Opening Ceremony. 

In the last few days, he earned gold medals in the men’s 4x100m freestyle relay, 200m butterfly, 4x200m freestyle relay and 200m individual medley.  He now has a record 22 gold medals, with a total of 26 Olympic medals.  Not bad for a “retiree.”  Phelps famously retired after the 2012 Olympics in London, and returned to the sport in 2014.

Michael Phelps NBC News
Source: NBC News

Phelps, 31, has earned numerous accolades over the years: Sports Illustrateds 2008 Sportsman of the Year; Swimming World Magazine’s World Swimmer of the Year Award, seven times; American Swimmer of the Year Award, 10 times; and the FINA Swimmer of the Year in 2012. 

The Maryland native’s performance at the 2008 Olympic Games in Beijing was phenomenal.  For tying Mark Spitz’s record of seven gold medals and ultimately setting a new record of eight gold medals, Phelps earned a $1 million bonus from his longtime sponsor Speedo. He used his bonus to start the Michael Phelps Foundation, which focuses on promoting healthy, active lives, especially for children, primarily by expanding opportunities for participation in the sport of swimming.

Building the Sport by Increasing Access to Swimming

In his letter on the foundation website, Phelps described his commitment to help youth enjoy safe swimming and healthy living.  “Swimming provided the opportunity to stay healthy while I learned about hard work, determination, and setting goals,” he said.

It may be surprising to some that as a boy, Phelps said he feared the water and didn’t like getting his face wet. “But because I had someone to encourage me, who understood the importance of water safety, I developed a comfort level for the water,” Phelps said. “The more time I spent in the water, the stronger I became, and my passion for the sport grew.”

In 2014, the Michael Phelps Foundation gave away $425,146 in grants, according to its Form 990.  The foundation aims to level the playing field for youth and athletes in underserved communities.

Im-program

Named after Phelps’ signature event, the individual medley, the IM program is promoted in U.S. cities where access to swimming is limited.  The IM program offers water-safety courses, recreational pool activities, and swim training, as well as health and wellness education.  To emphasize the need for such programs, the Phelps Foundation website cites the statistic that youth drowning rates in ethnically-diverse communities are two to three times higher than the national average.

Since 2010, the IM program has reached over 15,000 youth through the Boys & Girls Club of America and Special Olympics. In 2014, the Michael Phelps Foundation delivered the IM program to 35 Boys & Girls Clubs nationwide. 

“The Michael Phelps Foundation is creating a more inclusive sport with expanded opportunities for youth and athletes of all backgrounds."

To help talented athletes in financial need, Phelps’ foundation partnered with the Level Field Fund to create a grant program for swimmers. The Michael Phelps Foundation wants to “fund talent and fuel dreams for the next generation of Olympic heroes.”

“Losing talented athletes because of a lack of financial means is troubling,” Phelps said. “We support the Level Field Fund because we are big believers that every athlete should have the chance to pursue their dreams to their full potential.”

Olympian Katie Meili is one of the talented athletes who received a Level Field Fund Swimming Grant – which pays for expenses such as travel, coaching, training and event fees.   She won a bronze medal in the 100m breaststroke in Rio.  Thanks to the swim grant, Alex Meyer successfully competed in a 21k open water race in Poland and brought home prize money that covered two months of his living expenses.

Phelps also leverages his celebrity to help local charities.  Through Caps for a Cause, Phelps provides signed swim caps so that nonprofit organizations can raise funds at their respective silent auctions and fundraisers. 

Future Plans

Boomer PhelpsThe Olympics is just the icing on the cake for Phelps.  Phelps and his fiancée, Nicole Johnson, welcomed their first child Boomer Robert Phelps earlier this year.  Phelps said he enjoys family life and regularly posts adorable Instagram photos.

The future continues to be golden for Phelps, who is expected to compete in additional swim events this week.  He also can’t seem to leave the pool, and he has hinted that he may continue competitive swimming after Rio.

Watching Phelps score his 21st gold medal – and counting! – this week, it’s clear we are watching history in the making.  And his engagement in philanthropy shows that in and out of the pool, Phelps is one to watch. 

We are rooting for more victories in Rio!  And we’re looking forward to witnessing how he channels his talent, determination, and passion for swimming into creating a more inclusive sport with expanded opportunities for youth and athletes of all backgrounds.

--Melissa Moy

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

 Panama Canal Authority Photo 3

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

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

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

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

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

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

From Data Processing to Knowledge Management

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

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

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

Supporting Instinct: Data-Driven Grantmaking Policies

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

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

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

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

Tracking Diversity Data

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

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

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

Legal and Financial Compliance: Pushing the Boundaries of Risk

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

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

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

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

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

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

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

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

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

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

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

--Adriana Jimenez

Prince: The Artist Now Known as a Philanthropist
May 12, 2016

(Melissa Moy is special projects associate for Glasspockets.)

Prince was known for his over-the-top showmanship, his musical genius, and for notoriously changing his stage name to a symbol after a copyright battle.

Inducted into the Rock & Roll Hall of Fame in 2004, the prolific artist released 39 albums over a 40-year career; his last two, HITnRUN Phase One and HITnRUN Phase Two, were released in September and December 2015. A mentor and producer for an entire generation of musicians, Prince also penned Top 40 hits for more than a dozen artists - in all,  winning seven Grammys along the way.

Prince Photo
Despite his iconic fame and success, few knew of Prince’s generosity to the causes and organizations he cared about.

Since his unexpected death in April, Prince’s philanthropic endeavors are now coming to light as friends, family and charity organizations are speaking up about his quiet, anonymous giving.  

Van Jones, a friend, philanthropic advisor and attorney for Prince, shared his memories on YouTube, describing how Prince was quick to act whenever a friend or stranger needed aid, from installing solar roofing panels for poor families to making sure a friend’s children were cared for during a crisis. Jones recalled Prince saying: “Don’t give me the credit, don’t give me the glory.”

Anonymous Giving

Interest in Prince’s philanthropy will likely raise the visibility of causes he cared about, with news of his good deeds now circulating widely in the media.

"It seems anonymity has a shelf life...We now know that Prince was a long-time supporter of a range of causes in his native Minnesota and across the country.”

Even with all of the press attention, much remains unknown about Prince’s philanthropy. As a Jehovah’s Witness, Prince may have felt compelled to keep his giving private. Jehovah’s Witnesses are politically neutral and are discouraged from engaging in voting, advocacy or activism. These factors may have spurred the singer-songwriter’s desire to remain anonymous about his philanthropy.

However, it seems anonymity has a shelf life. Although he may have desired to remain below the philanthropic radar, with his death, we now know that Prince was a long-time supporter of a range of causes in his native Minnesota and across the country.

Prince often focused his support in helping youth and disadvantaged communities, contributing to #YesWeCode, an organization that equips urban minority youth with technology education and Green for All, which creates green jobs in struggling communities. Prince also gave $12,000 to help prevent the closure of the Western Branch Library of the Louisville Free Public Library in Kentucky, the nation’s first full-service library for African Americans.

Prince First Avenue & 7th St - Tenaja
Purple Rain Philanthropy

The Purple Rain philanthropist supported local causes and used his platform to draw attention to his community.  Many point to the fact that Prince made his home in Minnesota rather than pick up and move to Hollywood or New York as further evidence of his commitment to his community.

His 1984 movie, Purple Rain, was about the music scene and life in Minneapolis; several scenes were filmed at local music venues, First Avenue and 7th St Entry. And well beyond the making of the film, his philanthropy continued to rain support on local issues.

“The Purple Rain philanthropist supported local causes and used his platform to draw attention to his community.”

In Minnesota, he secretly gave $80,000 to Urban Ventures Leadership Foundation and $50,000 to a fund for the victims and families of the 2007 I-35 West bridge collapse.

Prince’s former wife, Manuela Testolini, described him as a “fierce philanthropist.” In fact, the couple met doing philanthropic work together. Testolini credited Prince for inspiring her to start her own charity 10 years ago.  Just before Prince’s death, her foundation, In a Perfect World, had announced plans to build and name a school in his honor.

Prince’s foundation, Love 4 One Another Charities, gave away $3.2 million to charities from 2001-2007, according to federal tax returns. In that same time period, Prince gave $10.9 million to his foundation. The foundation was funded, at least in part, by Prince’s 1995-97 Love 4 One Another tour.

It is unknown what happened to his foundation, as tax returns are unavailable beyond 2007, at which point the foundation held $11.9 million in assets.

In 2007, his foundation’s largest gifts included $800,000 for the Peccole Lakes Kingdom Hall Fund, in Las Vegas, to support a Jehovah’s Witness organization; $50,000 to the aforementioned Minnesota Helps Bridge Disaster Fund; $50,000 to Testolini’s In A Perfect World, in Minneapolis, which supports education for at-risk children; and $40,000 for Urban Farming, in Southfield, MI, to support healthy living and food for the hungry.

Prince the Activist

Although Prince quietly conducted his philanthropy, he seemed aware of the power and light he could shine on social issues important to him, and he often used his influence to take very public stands.

In 2004, he publicly criticized the music industry for promoting sex, violence and drugs in rap and R&B.  On his 1999 album notes, Rave Un2 the Joy Fantastic, Prince, a vegan, wrote about the cruelty of wool production.

More recently, the “Purple Rain” philanthropist spoke out against racial injustice

Prince held benefit concerts for organizations and individuals in need. He gave money to the family of Trayvon Martin, the African American youth shot and killed by a neighborhood watch volunteer in 2012.

In response to the deaths of young black men at the hands of police, Prince wrote and performed a new protest song, “Baltimore,” at his 2015 Rally4Peace event.  The song included references to Michael Brown and Freddie Gray and the chorus: “If there ain't no justice then there ain't no peace.”

At the 2015 Grammys, Prince alluded to the Black Lives Matter movement while presenting the album of the year, declaring: “Albums still matter. Like books and black lives, albums still matter. Tonight. Always.”

A will for Prince’s estate has not been found, so it is uncertain if he earmarked funds for favorite charities. However, with the legacy of his philanthropy in the spotlight, perhaps the causes and organizations Prince supported will benefit anew from the visibility and influence the knowledge of his support brings.

--Melissa Moy

A Dash of Diversity and a Cup of Reality
December 15, 2015

(Dolores Estrada is director of grant operations at The California Endowment, a health foundation established in 1996 to address the health needs of Californians.)

Editor’s Note: In the near future, our “Who Has Glass Pockets?” transparency assessment will include an additional data element related to diversity. We will continue to track which foundations have values statements related to diversity and inclusion, and we will also be adding a transparency element indicating which foundations openly share diversity data about their staff and board.  Currently, relatively few foundations provide diversity head counts, with only 5 out of 77 profiled foundations sharing that data publicly.  The California Endowment recently completed and posted its annual Diversity Audit, so we invited its team to draft a series of posts explaining why and how they share this information. This is the second post in the series, and the first post appears here.

Estrada-150At The California Endowment (TCE), our commitment to diversity, equity, and inclusion (DEI) is strong.  It is driven by a fundamental belief that we cannot achieve our mission of improved health for Californians unless every segment of our community participates in advancing solutions.  This commitment to diversity created a guiding framework for our organization.  It also set the stage for what we now call an authorizing environment, which means permission to talk about and engage in diversity-related work with the Foundation as leverage.   This space also allows us to gather information on the governance, management, and staff composition of our community partners which, in turn, helps to ensure that TCE holds itself accountable to our diversity and inclusion goals. 

Timing, as they say, is everything. In 2010, TCE transitioned to our 10-year Building Healthy Communities (BHC) strategy.  The planning and implementation of BHC was the perfect time to embrace our values through meaningful collection and use of diversity data.  Our recipe for moving forward had a pinch of confidence, a dash of diversity, doused with a cup of reality. 

Over the course of the last five years, as the manager of grants administration, I have had the task of operationalizing our institutional values of diversity, equity and inclusion into our paperless grantmaking and grant administration.  Although The California Endowment has held to these values since inception, we needed clarity on the mechanics of how collecting data would help us with our mission.  We have the resources and technology to collect the data, but when diversity principles and values meet reality, it gets a little complicated.  We discovered that when it came to incorporating DEI practice in our grantmaking and grant administration, we knew the outcomes we wanted, but had no clear, easy recipe to get there.

Being an advocate of diversity, equity and inclusion has meant being prepared to embrace failure as a pathway for future success.  Promoting and practicing DEI is not simple.  It requires planning, patience, and a willingness to openly share and learn from our failures.  And boy have we shared a lot!

We started with voluntary applicant diversity data questionnaires attached to our online applications.  Our diversity questionnaire was crafted with care to ensure that we were using the correct terminology to capture the information we needed.  We asked for diversity information on the board of directors, executives, and staff of our grantee organizations and stored it in our grants database. 

Being an advocate of diversity, equity and inclusion has meant being prepared to embrace failure as a pathway for future success.

Bam!  Our first clue that something wasn’t working?  In a grouping of over 600 applications submitted less than 400 provided diversity data.  More importantly, the data points submitted didn’t make sense given what we knew about the grantees.  We decided to give the data collection process more time and see what happened. 

We considered the phrasing of the various questions, terminologies used, and online format as possible culprits.  Were those the reason for this data desert?  No, what we failed to do was to explain to our grantee organizations and community stakeholders why we were asking for diversity data and what we intended to do with this information.  In addition, we realized that we had assumed “everyone” had the data and did not factor in barriers or challenges that applicants might have in collecting this information themselves. 

Our team convened, determined to clearly communicate our values and goals and the importance of the data.  Our CEO, Dr. Robert Ross, then penned a message for our online applications and communicated our intent for collecting diversity data, stating: 

"The data collected will serve multiple purposes: to help us understand how we reflect the communities we serve, equip our staff with critical data to assistant nonprofits to better serve the needs of California's diverse communities and to track our progress with our Board and our grantees and communities."

For the next couple of months, our goal will be to create opportunities to learn, share and have open dialogue about DEI data pertaining to the foundation and that of our grantees organization wide.  Our benchmark for success is not about collecting data from everyone, but rather an understanding of how diversity data is incorporated into our grantmaking and allow us to engage our communities and partners in meaningful ways. 

A dash of diversity and a cup of reality make the best recipe for success.

Diversity at the Foundation: Important Enough to Measure
December 8, 2015

(Robert K. Ross, M.D., is President and Chief Executive Officer for The California Endowment, a health foundation established in 1996 to address the health needs of Californians.)

Editor’s Note: In the near future, our “Who Has Glass Pockets?” transparency assessment will include an additional data element related to diversity. We will continue to track which foundations have values statements related to diversity and inclusion, and we will also be adding a transparency element indicating which foundations openly share diversity data about their staff and board.  Currently, relatively few foundations provide diversity head counts, with only 6 out of 77 profiled foundations sharing that data publicly.  The California Endowment recently completed and posted its annual Diversity Audit, so we invited its team to draft a series of posts explaining why and how they share this information. This is the first post in that series.

Ross-150About seven years ago, our Board of Directors engaged in a conversation about the values of diversity, equity, and inclusion at our institution.  While we re-affirmed our allegiance to these values which was present at the inception of The California Endowment, we concluded that we needed to ratchet up the seriousness of our resolve.  The questions that arose: Are we, as a foundation, committed enough to this issue to measure and track improvement?  We have metrics for a range of equity indicators in our healthy communities work, Sons and Brothers program etc., and overall strategic plan, so why not on the matter of diversity in our operation and structure as a foundation?

So, off we went.  We resolved to create a tool to assess our progress, now known as the Diversity Audit.  In it, we committed to express the value of, and commitment to, diversity across a range of parameters at The California Endowment: on our Board, at the management level, among our staff, grantees of the foundation, as well as contractors, consultants, and even investment managers.  We wanted to be able to express our commitment to diversity-equity-inclusion no matter which aspect or element of the foundation one might encounter.

The process of creating, and then institutionalizing the Diversity Audit required the support and engagement of Board, management, and staff.  There is a saying, “Culture eats strategy for breakfast.” We pay particular attention to recruiting new board members and senior management who value diversity, equity and inclusion.  We look to them to ensure that this commitment lives beyond any one individual or position, and becomes engrained in the DNA of the culture of The Endowment.  While turnover is inevitable in any organization, we do not ever take this commitment as a given. 

Cal Endow Photo
We also required the support of a savvy, thoughtful partner to hold our organizational hand through the process, and we procured the services of SPR Associates to do so.  SPR worked with our staff to begin establishing the right kind of data collection and reporting platform; we needed our Human Resources, Grants Administration, Contracts Administration, Program and Learning Staff, and Investments team all in the boat.  Obviously it required us to embark on the business of asking grantees, contractors, and consultants for the right kind of diversity information – and in the right way.  We now have the diversity question being posed nearly every time we engage in a financial or business transaction.

Diversity Audit 2013 coverOur Diversity Audit, while focusing on tracking progress through metrics, should not be confused or mistaken with the use of quotas.  Simply put, we don’t have numerical goals that define “success” in the Diversity Audit.  But we do want to know whether we have an organization that reflects the range of diversity that the state of California – and the communities we serve – now boasts.  Can we look ourselves in the mirror and comfortably state that our commitment to diversity is at last maintained, and even improves over time?

The Diversity Audit has helped us strengthen the culture and authorizing environment to express our values through our policies, practices, processes.  We review its progress with our Board every three years.  We share both our successes and mistakes with the philanthropic field because we believe that our efforts and value can inform our sector’s learning.  Diversity is indeed an element of my performance measures as President & CEO.  And that’s the way it should be.

--Robert K. Ross

Does Your Process Invite ‘Em In or Keep ‘Em Out? Streamlining’s Connection to Diversity and Inclusion
February 5, 2015

(Jessica Bearman works with foundations and other mission-based organizations, focusing on organization development, facilitation, and R&D to help them become more intentional, effective, and responsive to the communities that they serve. She is also known as Dr. Streamline. Follow her on Twitter @jbearwoman. This blog post was originally posted on the Grants Managers Network blog. Project Streamline is a service of the Grants Managers Network focuses on helping grantmakers get the information they need, while reducing the burden of application and reporting practices on nonprofit grantseekers.)

Jessica-bearmanA grantmaker had an inspiring conversation with an African American community leader who was unaffiliated with any particular organization. Based on that conversation, the Program Officer worked with that leader to develop a proposal for submission, which led to a grant. Without the conversation, this community leader would never have applied for a grant, or would have done so in a way that would not have gained attention, and the good work that followed would have languished.

A Program Officer attended an event celebrating nonprofit leaders funded by her foundation, which had articulated a goal to fund organizations serving and led by people of color. Once at the event, she realized that the majority of the nonprofit executives were white and middle-upper class.

I heard these stories last year at a Streamlining Workshop, during a conversation about how communication and application practices can enable or create an invisible barrier to entry. The question on the table was: How is streamlining connected to funders’ goals around diversity and inclusion in grantmaking? Your application practices may keep some groups* out – even when they are efforts and communities that your organization says it wants to fund. What can you do about it?

“Sometimes we don’t ask about the diversity of our grantees because we’re afraid to talk about race. People need to reduce their anxiety and fear around these issues and just ask the question.” -Kelly Brown, director of the D5 Coalition

1. Articulate your intention. There’s power in clearly stating what you’re trying to do. What does success look like? What percentage of funding will go toward diverse organizations? Sometimes organizations say things like: “Caring about diversity and inclusion is in our DNA – we don’t really need to put a number on it.” But this often results in a gradual slide – or sometimes a precipitous drop – away from original intentions as staff change or other compelling issues come up. Putting some numbers to your deeply held values means that you care enough about them to track and monitor your progress. If you have a vague desire to fund across your community, give it more definition.

2. Ask the question. According to Kelly Brown, Director of the D5 Coalition, a time-limited initiative focused on building philanthropy’s diversity, equity, and inclusive practice, “Sometimes we don’t ask about the diversity of our grantees because we’re afraid to talk about race. People need to reduce their anxiety and fear around these issues and just ask the question.” The most helpful question to ask: Are we actually funding the types of organizations we say we want to fund?

2015-01-26-diversity-and-inclusion-610x3303. Get the data. You don’t know if you don’t ask, and you can’t answer if you don’t have some way of getting data about the diversity of your grantees’ staff, board, and constituents. This is a tricky one! After all, laborious data collection is one of the things that flies in the face of streamlining. The D5 Coalition and GuideStar have been working on a repository for standard diversity information, which is now available through guidestar.org. Data can be entered through the GuideStar Exchange and viewed by logging in and searching organization profiles in GuideStar’s database. At the same time, Simplify has been building and launching a tool that will allow grantmakers to pull the standardized demographic data about nonprofits from the GuideStar Exchange. Nonprofits can enter their information at their convenience—once a year or as frequently as information in their organization changes and they choose to update the information—in one format, rather than accommodating idiosyncratic requests from each of their potential funders. You can read all about it in this press release.

4. Check your image. Applicants and community members will probably see your website and materials before they know anything more about your organization. Do the images, language, and examples align with your commitment to funding diverse, minority-led, minority-serving organizations? What happens when they call or email to learn more? Do those interactions mirror your commitment to connecting with diverse organizations?

5. Revisit Process and Requirements. As grantmakers, we have a lot of latitude when it comes to how we solicit applicants and what we require of them. There are good arguments for various approaches to grantmaking, but you should select your process with an eye toward its impact on potential grantees.

    • Do you have an open-RFP process that requires a detailed full proposal? Think about the organizations with the wherewithal to devote several days’ worth of time to an application process that requires the laborious construction of a full proposal in response to an open process or an open RFP. If you have an open RFP, consider ways to invite ideas and conversation first, so that all organizations can be at their best. In-person or phone conversations, Letters of Inquiry, and even brief “tell us your idea” surveys will reduce the barrier to entry for organizations that might need more help or encouragement to tackle the full proposal.
    • On the other hand, open RFP processes have the advantage of being, well, open. Funders that move to invitation-only processes – in which organizations are invited to apply after careful vetting – may be eliminating groups that aren’t yet on their radar screens. If you have an invitation-only process, think about how you are methodically scanning the landscape for new prospective grantees who might not yet have a high profile.
    • Do your basic requirements even make sense for small organizations? Some due-diligence staples, such as audited financial statements, are prohibitively expensive and not legally required for organizations with budgets under $500,000. Other requests, like logic models or strategic plans, may require more capacity than these organizations currently have**. These aren’t bad practices, but they may not be appropriate for the types of organizations you are trying to get in the door. Take a fresh look at your information requirements and ask yourself whether they may be presenting a barrier that you don’t intend.
Streamlining doesn’t mean that you need to have low expectations of the proposals you receive, but it does mean that you should get to know the capacities and constraints of your targeted grantseekers, and make sure that your process allows them to be most successful.

6. Consider Your Expectations. Brilliant leaders, thinkers, and writers work for small organizations just as they do for big ones – there’s nothing inherently *unsophisticated* about proposals you’re likely to get from grassroots organizations. At the same time, there’s probably a lack of time for planning and reflection, a dearth of support for research, very little money for graphic design, and no nice camera for fancy images. There may not be an experienced grant writer on staff who knows the words that ring most brightly in a funder’s ear. Streamlining doesn’t mean that you need to have low expectations of the proposals you receive, but it does mean that you should get to know the capacities and constraints of your targeted grantseekers, and make sure that your process allows them to be most successful. So my answer to that critical question, “How is streamlining connected to funders’ goals around diversity and inclusion in grantmaking?” is that streamlined grantmaking can be a core tool in making sure that all organizations have a fair shot at funding. And streamlining is an important consideration when you add questions about organizational demographics to your requirements. But most of all, ask the question about how your process works for the organizations you want to engage. For me, that’s the most important streamlining habit of all.

*Words like diverse, community-based, grassroots, can be code. In this blog, I’m talking about organizations that focus on low-income and traditionally marginalized communities, often communities of color. The organizations are led by folks who reflect or come from these communities. The organizations themselves are often small-staffed and small-budget.

**Some funders have told me that they “build capacity” in grantseekers by requiring these items. I am all for helping grantees build capacity, but I think that grantmakers should do it in the context of a relationship, in response to an earnest conversation about needs, and in combination with funding – not as a unfunded mandateopportunity in which funding is the dangled, elusive carrot.

--Jessica Bearman

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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."

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