Transparency Talk

Category: "Openness" (38 posts)

How Philanthropic Is the Trump Cabinet?
January 11, 2017

(Brad Smith is president of Foundation Center.)

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

Explore Eye on the Trump Cabinet

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

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

Explore Eye on the Trump Cabinet

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

Explore Eye on the Trump Cabinet

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

Explore Eye on the Trump Cabinet

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

Explore Eye on the Trump Cabinet

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

-- Brad Smith

The Force Was Strong With Her: How Carrie Fisher Struck Back By Opening Up
December 29, 2016

Just like Princess Leia, she was passionate, fierce and fearless. As we grapple with the loss of Carrie Fisher, who died this week following a heart attack, we reflect on her legacy of openness in the service of change.

Fisher will forever be remembered as Princess Leia from a galaxy far, far away.  Beyond the Star Wars franchise, Fisher was also an accomplished novelist, screenwriter, and a mental health advocate.  As the daughter of Hollywood power couple – actress Debbie Fisher and singer Eddie Fisher – she was born into the public eye, which may have prepared her both for stardom, and her capacity to go public with what many would consider a private matter.  

“Princess Leia would have gotten through being bipolar and an addict in the same way I did,” Fisher said in an NPR interview.

Carrie Fisher - SW CinemaBlend
Carrie Fisher starred as Princess Leia in the Star Wars franchise.  Source: CinemaBlend

Sharing a Private Struggle

Fisher, 60, candidly shared her struggles with depression and bipolar disorder in media interviews and also in her books.  It may have been cathartic for Fisher to ink the semi-autobiographical novel Postcards from The Edge and her comedy show, “Wishful Drinking,” which she eventually turned into a memoir.  Her new autobiography, The Princess Diarist, has become a bestseller.

“Fisher’s tireless advocacy efforts are a shining example of how high-profile openness and transparency can lead to increased awareness, empathy, and change.”

Although most would shy away from opening up about mental illness, rather than avoid personal issues, the actress showed great courage in coming forward and using her celebrity as a platform to advocate for mental health and substance abuse awareness.  Throughout her life, she openly discussed her substance abuse struggles and treatment, and hospitalization.

The witty author was featured on the Emmy Award-winning BBC documentary The Secret Life of the Manic Depressive, which destigmatized mental illness.  Fisher was among several celebrities who shared their experiences of wrestling with health and medical conditions while living in a public spotlight on the Discovery Health Channel show Medical Profile.

Fisher’s tireless advocacy efforts are a shining example of how high-profile openness and transparency can lead to increased awareness, empathy, and change.  Her voice contributed to greater public awareness of mental health and substance abuse issues, emphasized the challenge of stigma related to illness and treatment, as well as the need for increased access to programs and services.

Carrie FisherSeveral organizations recognized the mental health advocate for her efforts.  In 2016, Fisher won an Outstanding Lifetime Achievement Award in Cultural Humanism for her “forthright activism and outspokenness about addiction, mental illness and agnosticism have advanced public discourse on these issues with creativity and empathy.”  In 2012, Fisher won the Kim Peek Award for Disability in Media.

In an advice column for The Guardian, Fisher responded to a request for advice on how to live with bipolar disorder.  “We have been given a challenging illness, and there is no other option than to meet those challenges.  Think of it as an opportunity to be heroic – not ‘I survived living in Mosul during an attack’ heroic, but an emotional survival.  An opportunity to be a good example to others who might share our disorder,” Fisher advised. “That’s why it’s important to find a community – however small – of other bipolar people to share experiences and find comfort in the similarities.”

And that’s what Fisher did.  She devoted her high-profile platform to raising awareness, changing attitudes and expanding support for mental health. 

We’ll miss you, Carrie Fisher.  May the Force be with you.

--Melissa Moy

What Do We Know About…Disconnected Youth?
December 13, 2016

(Bob Giloth is vice president of the Center for Economic Opportunity at the Annie E. Casey Foundation.  This post first ran on Philantopic.)

Bob Giloth HeadshotOver six million Americans between the ages of 16 and 24 are not in school or working. Often known as disconnected or opportunity youth, they are among the upwards of fourteen million young adults who are only marginally or periodically in school or working. At the same time, several million young people have had almost no labor market or educational experience in the past year.

Youth and young adults represent the future of our country — our economy, our communities, our democracy — and it is in our best interest to help ensure that they’re engaged with and connected to school and jobs.

Special collection_disconnected youth

To that end, the Annie E. Casey Foundation asked Foundation Center to create a special collection on IssueLab about the group of young people known as disconnected youth. This new online resource houses nearly one hundred and forty recent reports, case studies, fact sheets, and evaluations focused on the challenges confronting youth today, as well as lessons and insights from the field.

The Casey Foundation's interest in these issues began in 2012, when we published Youth and Work: Restoring Teen and Young Adult Connections to Opportunity, signaling its recognition of the crisis facing young people and the need to create stronger pathways to education and jobs. The foundation's commitment mirrored a national reawakening to the needs and aspirations of youth, including the White House Council for Community Solutions, the Aspen Forum for Community Solutions, and the Obama administration's My Brother's Keeper initiative to improve opportunities for boys and young men of color.

Casey acted on this expanded commitment to opportunity youth by launching two new initiatives — Generation Work and Learn and Earn to Achieve Potential — and by strengthening our longstanding Jim Casey Youth Opportunities Initiative. All three focus on enabling more youth and young adults to succeed in school, secure good jobs and a steady paycheck, and become financially stable. More recently, we have invested in increasing access to summer learning and employment opportunities for young people in our hometown of Baltimore, as well as in research and evaluation aimed at identifying the most effective programs and strategies. In addition, we've supported the youth-focused efforts of our national policy and civic partners.

What has become clear over the past five years is that advocates for opportunity youth need to build on existing evidence, program models, and policies, even as we wrestle with new questions related to young people with firsthand experience of the child welfare and juvenile justice systems, not to mention trauma; young parents; the role of social and family ties in the lives of disconnected youth; youth leadership; and the dramatically different outcomes we see among youth by race and ethnicity.

In this spirit of gathering lessons and asking new questions, we hope this collection on IssueLab will help promote the dissemination of promising practices in the field of opportunity youth and, eventually, grow to include more technical evaluation studies that build our overall evidence base.

Youth are our future. And we in the philanthropic, public, private, and nonprofit sectors must help them realize their aspirations by building multiple, effective pathways that enable them to succeed in school and in the labor market.

But this will only happen if we share and synthesize our knowledge in real time to create better investment strategies and choices.

Given its overall interest in building capacity and strengthening the field, philanthropy is well positioned to gather practice and research literature about programs and policies that support opportunity youth. Doing so will help ensure that nonprofits and other stakeholders have access to accurate, up-to-date information about what works for whom and what targets should guide future investment — while paving the way for the application of that knowledge on a broader scale benefiting many more young people.

The Casey Foundation is committed to continuing its youth initiatives and sharing lessons about promising strategies that promote tangible results and progress. We invite others to join us in this endeavor and look forward to contributions from our peers and partners in this work.

--Bob Giloth

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

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

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

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

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

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

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

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

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

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

--Caroline Fiennes

Building Communities of Practice in Crop Research
November 22, 2016

(Jane Maland Cady is International Program Director at The McKnight Foundation. This post first ran on The McKnight Foundation's blog.)

JCady_originalTo spur change at the systems level, it is critical to involve many individuals and institutions that work within that system, facilitating the sharing of information and knowledge. This has been a core belief of McKnight’s Collaborative Crop Research Program (CCRP) for many years. Our assessment, however, is that cross-sector collaboration, learning, and networking have historically been sorely lacking in agriculture research and development systems across the world.

Testing a New Model

Twelve years ago, CCRP sought to change this by testing out a community of practice (CoP) model in the Andes region of South America. Community of practice, a term that has come into fashion over the last few years, refers to a group of people with a common concern or passion who interact regularly to improve their work. In the case of CCRP, the cohort of Andes grantees was united by geographic region and common interest and experience in addressing the stark hunger and poverty issues in their communities. As the model began to prove effective in strengthening capacity at regional, institutional, project, and individual levels, CCRP expanded the model to our other regions.

Today, all four CCRP regions exchange ideas within their communities of practice and with each other, working to spark new thinking and innovation in agriculture research and development. Over time, the communities have grown their skills and approaches, particularly around farmer-centered research and agroecological intensification (AEI) — or, finding food solutions that balance the needs of the earth and its people.

CCRP-Blog-Image-2-cropped-resized
Kandela, the president of a women’s group belonging to the farmer federation FUMA Gaskiya (Niger) is marking her preferred pearl millet panicles during participatory pearl millet selection. (Photo credit: Bettina Haussmann).

 

10YrsCCRPMalawi-1Ways to Improve Networking, Learning, and Collaboration

With the success of The McKnight Foundation's four implemented communities of practices, the foundation has identified several methods that help to achieve success in networking, learning, and collective action. First, each community of practice is supported by a regional team that supports CCRP’s grantmaking processes; the team also facilitates ongoing support and feedback loops. These include reviewing concept notes and proposals, planning inception meetings, cross-project meetings and exchanges, initiating mid-year reviews, and providing feedback on annual reports and project progress. It is a resource-intensive model, to be sure. But the foundation hears consistently from grantees that this structure of regular interactions builds skills and relationships with project teams and other partners, serving to strengthen the capacity of the larger CoP.

Another important way that CCRP builds an effective community of practice is by tailoring its priorities and activities based on each region’s context. A combination of efforts help promote a CoP’s vibrancy within the crop program, including:

  • grantmaking portfolio driven by regional needs and opportunities
  • In-person and virtual trainings and workshops to explore particular thematic areas, strengthen research methods, and build particular sets of skills
  • Annual facilitated CoP convenings that typically involve scientific presentations, interactive or modeling exercises, peer exchange and critical feedback, collective reflection / idea generation, and immersive field visits
  • Targeted technical assistance based on emergent needs, both grantee-led and initiated by the regional team, as well as linking with program-wide technical expertise and support
  • Cultivating an evaluative culture that supports 1) integrated monitoring, evaluation, and planning; 2) learning regarding developmental-evaluation and adaptive action approaches; 3) using and incorporating foundational principles that guide the work and program as a whole; and 4) building participatory evaluation skills
  • Other resources and tools such as handbooks, guides, videos, checklists and templates, sensors, database access, and GIS technology provision
  • Ongoing formal and informal peer learning
  • Support and collaboration in the CoP for leadership development, mentorships, conference planning, peer review for publications, and other kinds of professional and academic development


10YrsCCRPWestAfricaThe foundation's crop research program first implemented the community of practice model in the Andes 12 years ago and in Africa 10 years ago. Today, these seasoned CoPs continue to lead to new innovations and inspiration. The foundation is excited and proud to celebrate the 10th anniversaries of both the Southern Africa and West Africa communities of practices this year. On the occasion of these anniversaries, each CoP recently produced collections of research and insights gathered from their respective areas of work. We invite you to review them and learn more.

--Jane Maland Cady

If An Evaluation Was Commissioned But Never Shared, Did It Really Exist?
November 15, 2016

(Fay Twersky is director of the Effective Philanthropy Group at The William and Flora Hewlett Foundation. Follow her on Twitter at @FayDTwersky. This post first ran on Center for Effective Philanthropy's blog.)

Fay photoThere are a lot of interesting data in the recent Benchmarking Foundation Evaluation Practices report, co-authored by the Center for Effective Philanthropy and the Center for Evaluation Innovation. There is useful, practical information on how foundations structure their evaluation operations, how much they spend on evaluation, the kinds of evaluations they commission, and so forth. Great stuff.

But some findings give me pause. Perhaps the most sobering statistic in the report is that very few foundations consistently share their evaluations with their grantees, other foundations, or the public. Only 28 percent share their evaluations “quite a bit or a lot” with their grantees.  And that drops to 17 percent for sharing with other foundations, and only 14 percent for sharing with the general public.

“We have a moral imperative to share what we are learning from the evaluations we commission so that others may learn from our successes and mistakes.”

Really? Why are we not sharing the lessons from the evaluations we commission?

It feels wrong.

It seems to me that we have a moral imperative to share what we are learning from the evaluations we commission so that others may learn — both from our successes and mistakes. 

After all, why would we not share?

Are we worried about our stock price falling? No. We don’t have a stock price.

Are we worried about causing undue harm to specific organizations? There are ways to share key lessons from evaluations without naming specific organizations.

Do we believe that others don’t care about our evaluations or our findings? Time and again, foundation leaders list assessment and evaluation as high on the list of things they need to get better at.

Are reports too technical? That can be a challenge, but again, there are ways to share an executive summary — or commission an easy to read summary — that is not a heavy, overly technical report.

So, the main question is, why commission an evaluation if you are going to keep the lessons all to yourself? Is that charitable?

--Fay Twersky 

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. 

Trans challenge_twitter1-01

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

 

Free Webinar: What Story Does Your 990 Tell About Your Foundation?
September 22, 2016

What does your foundation’s 990 say about the organization? 

Now that the IRS has started releasing e-filed Forms 990 and 990-PF as machine-readable, open data is available to the public. While this move will spur transparency and openness in the philanthropy field, foundation leaders may be uncertain of how open data and potential public scrutiny of philanthropy may impact foundation programs, staffing and investment management. 

Glasspockets recently partnered with the Communications Network to offer an insightful webinar on the Form 990’s potential risks and vulnerabilities, as well as how to use Form 990 to share the work of your organization. 

The webinar highlights the types of information included on the 990-PF, how the 990-PF data is being used now and in the future, and recommendations on how to communicate your foundation’s work through the 990-PF.

Check out this great webinar!

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

Get Open: Leaders Reflect on Glasspockets' Impact
July 27, 2016

Let Glasspockets help your foundation achieve greater heights. Sharing strategy, knowledge, processes, and best practices in philanthropy is better for everyone – from the grantmakers to grantees and the communities they serve.

But don't take our word for it...

In our new video, Glasspockets: Making the Case for Transparency, philanthropy leaders - including representatives from the Barr Foundation, Ford Foundation, The William and Flora Hewlett Foundation, Conrad N. Hilton Foundation, among others - reflect on the positive impact that Glasspockets and working more openly has made on their work.

Get Open - join the "Glass Pockets" movement today!

Start with taking and sharing our "Who Has Glass Pockets?" transparency self-assessment.

-- Melissa Moy

About Transparency Talk

  • Transparency Talk, the Glasspockets blog, is a platform for candid and constructive conversation about foundation transparency and accountability. In this space, Foundation Center highlights strategies, findings, and best practices on the web and in foundations–illuminating the importance of having "glass pockets."

    The views expressed in this blog do not necessarily reflect the views of the Foundation Center.

    Questions and comments may be
    directed to:

    Janet Camarena
    Director, Transparency Initiatives
    Foundation Center

    If you are interested in being a
    guest contributor, contact:
    glasspockets@foundationcenter.org

Subscribe to Transparency Talk

Categories