Transparency Talk

Category: "Openness" (42 posts)

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

Glasspockets Find: Exponent Philanthropy Video Series Encourages Transparency
July 14, 2016

(Melissa Moy is special projects associate for Glasspockets.)

Embracing failure has the potential to maximize effective and impact in philanthropy.  This trend of self-reflection and sharing lessons learned among foundation and funder leaders is upping the ante on the need for transparency and opening up the work of grantmakers.

Exponent Philanthropy – a philanthropic membership organization representing approximately 2,300 foundations and funders – won a Fund for Shared Insight grant last year to produce a video series that shares wisdom and best practices in philanthropy. The videos will delve into how foundations can be more open about how they work, why and how they make their decisions, and the lessons they have learned – both good and bad.

This year, Explonent Philanthropy released a total of nine Philanthropy Lessons videos that highlight tips and best practices for funders, grantees and philanthropy work. 

Among the videos, the importance of transparency and the tricky topic of evaluation are explored.  How can funders and grantees communicate honestly with one another, and with the communities they serve?  How can impact and effectiveness be measured?  What criteria should be used? 

Several funders acknowledged the challenge in evaluating the effectiveness of grantees and the measures used.  One funder likened the overzealousness of foundation reports to “overjudginess,” where foundation expectations of grantees may be unfair.  Another funder said it’s OK for a grantee to fall short of their program objectives; instead, he expected grantees to be honest and explain the encountered challenges and barriers.

Miguel Milanes, vice president of Allegany Franciscan Ministries (also profiled on Glasspockets), described the importance of flexibility and listening, truly listening to grantees.

Milanes’ organization had given a $2,000 grant to help preserve Mexican American culture through traditional dance and requested a written report on the project outcomes.  Unable to speak or write in English, two grantee representatives gave a face-to-face report to Milanes and shared two binders full of photos and receipts documenting the project.

“It was more important than any report I’ve ever received,” Milanes said of the unorthodox grant report.  “That was a seminal moment.  It changed the way we did our grantmaking and our reporting.  We accept other types of reports and documents on the grants we make.”

Other foundation leaders raised questions about the how and why of evaluation.  Would pre-and post-test survey results really show the impact of helping a human trafficking survivor?  Is the requirement of sending an international fax report of every attendance list for an African HIV women’s program excessive and costly?

Exponent Philanthropy’s innovative project also invites website visitors and funders to share their lessons and personal stories on the website and also via social media using #MyPhilLesson. 

One website visitor, Lisa Tessarowicz of The CALM Foundation, shared how being “uncomfortable” and not having the answers actually helps foundations to think creatively, take more risks to “experiment more and think critically” about how money is given away.

We look forward to seeing more stories from funders, grantees and community at large.  It will interesting to see what grantmaking leaders glean from their experiences with grantees, and how they will apply these important lessons to improve philanthropy and elevate transparency.

--Melissa Moy

Building the Social Sector's Collective Brain Trust: Redesigned IssueLab Launched
June 23, 2016

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

Janet Camarena

Recently when I was helping my son cultivate his ant farm, I learned that a lone ant is a dead ant.  Ants are the ultimate collective, working in teams, and by doing so, they accomplish amazing feats that no lone ant alone could do. 

Do Ants Know Something Foundations Don’t?

As you may know from unwelcome encounters in your home, ants tend to move very effectively by moving in swarms.  They operate with what scientists call a “collective brain” or “swarm intelligence” that helps them share knowledge, move quickly over great distances, build bridges and highways, organize, and make collective decisions that accomplish tasks that they couldn’t do alone. 

"IssueLab’s relaunched website has almost 20,000 knowledge resources, covering 38 different issue areas, from 7,000+ organizations around the world."

Philanthropy by contrast is increasingly fragmented, with individual foundations developing and often holding lessons learned, strategic direction, and operating plans close to their vests. Yet, like ants, they are often trying to move proverbial mountains and accomplish goals that a single institution can’t do alone. So, is there something we can learn from the insect world, much like how observing bird flight informed and inspired the development of aircraft?  Can we observe insects to inform the development of collective intelligence?

There is hope here in that increasingly, philanthropy articles and conferences are turning to the theme of collective impact, and knowledge sharing, which are in many ways a departure from the current practice in philanthropy in which fragmentation - or the “lone ant” phenomenon - tends to be the prevailing norm. And there is also hope in the form of new tools that are available to you to help us all work smarter, provided we commit to take advantage of them.

Moving Toward a Collective Brain Trust

New tools recently launched by IssueLab may give us all a roadmap to how to go from struggling, lone ants to mighty ants. IssueLab’s relaunched website has almost 20,000 knowledge resources, covering 38 different issue areas, from 7,000+ organizations around the world. Each resource includes links to the full report, and helpful data, such as article abstracts, related articles, and author information. 

Many of these resources include lessons learned and were funded directly by foundations. Together, IssueLab resources represent one of the greatest assets of the social sector, provided they remain easily findable and usable by others.

The Path to Open Knowledge

Toward that end, IssueLab's relaunched website also includes helpful resources aimed at helping the social sector commit to creating a culture of open knowledge. The website includes recommended principles and also tactical practices that organizations can adopt to move toward this vision of a collective brain trust, from which we can all mutually benefit.

Given the critical connection between transparency and shared learning, earlier this year Glasspockets added Open Licensing to the "Who Has Glass Pockets?" transparency self-assessment profile. Since this is one of our newest elements, and it is an emerging practice among foundations, we want to draw particular attention to a set of tools now available on IssueLab's redesigned site that aim to demystify the path to open knowledge.

IssueLab breaks it down into the following practices:

  • Articulating an open knowledge policy; 
  • Using open licensing on all knowledge products; 
  • Using open knowledge repositories like IssueLab to catalog and better share your work; and 
  • Using a shared descriptive vocabulary, such as schema.org, on your organization’s website to make it easier to discover and index knowledge products.

To learn more about each practice, visit IssueLab's Open Knowledge area.

How Can We Know What Others Know?

And to continue building a bigger and bigger brain trust that truly represents the shared knowledge of our labors, the redesigned IssueLab also makes it easier for anyone to upload, find, and freely share research by providing metadata and links to original documents on publishers' websites.

New features include:

  • An improved interface that makes it easier and faster to upload research to IssueLab and share items via a website, blog, or on social media.
  • Filtered search, the ability to curate user libraries, and "what to read next" suggestions for related research.
  • The ability to use Digital Object Identifiers (DOIs) to increase a document's long-term accessibility across the Internet and on archival sites like WorldCat, the world's largest library catalog.
  • Metadata such as keyword search, date published, geography, and language to facilitate powerful searching and browsing capabilities.

Visit IssueLab to start collecting, connecting, and sharing knowledge, and just maybe collectively moving mountains.

--Janet Camarena

The Next Generation of Nonprofit Data Standards
May 2, 2016

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

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

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

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

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

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

Standard

Description

History

BRIDGE

A unique identifier for every nonprofit organization in the world.

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

Philanthropy Classification System

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

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

GuideStar Profile Standard

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

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

eGrant/hGrant

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

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

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

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

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

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

--Jacob Harold and Brad Smith

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

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

Chris Cardona Photo

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

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

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

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

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

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

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

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

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

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

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

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

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

--Chris Cardona

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

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

Janet Camarena

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

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

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

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

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

Some interesting facts quickly reveal both strengths and blind spots:

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

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

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

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

Knowledge Center Open Licensing

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

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

Customized ReportA customized report from Transparency Trends

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

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

Explore Transparency Trends and let me know what you think.

-- Janet Camarena

From Cardboard to the Cloud: Grantmaking Systems in an Era of Collaboration and Learning
April 6, 2016

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

AjimenezThe Surdna Foundation’s first grants management system was made of cardboard: it was a shoebox filled with index cards. (Next there was a custom-built system, followed by an off-the-shelf installed one). For decades, this box served the foundation’s basic record-keeping needs, but technology –and transparency – eventually took precedence.  

Now in its 99th year, the foundation has since ditched the cardboard for the cloud. In 2015, Surdna transferred its grantmaking database to the workflow- and cloud-based system, Fluxx.

Moving to the cloud has helped the foundation become more open, streamlined and transparent.

These benefits were not accidental. Our decision to switch grants management platforms arose from a 2012 three-year strategic Roadmap which recommended the following changes in support of mission: 

1) Working more collaboratively with grantees.

2) Collaborating and learning within the foundation.

3) Sharing data and lessons learned with the philanthropic sector.

To implement these changes Surdna’s Roadmap suggested retooling outdated systems and processes. It was clear we’d need a new grants management system: we’d reached the limits of our next cardboard box.

Surdna’s transition to the cloud highlights how foundations are beginning to use grants management systems to inform and improve their overall strategic directions. Through the use of data- and community-driven platforms, funders can support their efforts in collecting, harnessing and sharing better information, while working more collaboratively across teams and beyond.

Here’s how our new grantmaking system is helping us advance Surdna’s strategic goals.


1)  Working more collaboratively with grantees.

Cloud-based platforms provide actionable data on-demand. This has been empowering for staff, particularly those who previously lacked direct contact with our grant information (and those with busy travel schedules).

Phil Henderson, President of the Surdna Foundation, says: “Our new system has made data accessible on the fly. I can now review and approve grants from any location and drill down to get more information.” (And by “drill,” he means literally – he recently approved a grant from his dentist’s chair.)

"Working jointly with grantees has added transparency to our processes."

Beyond its streamlining implications, this opens new channels for deepening our connections with grantee partners and empowering our senior leadership. For example, while on the road the president can now use organizational and grants data to help him strategize for site visits, or identify grantees to greet at a reception. With the aid of a mobile app a data point becomes a real person, fostering face-to-face collaboration.

Via the cloud-based grantee portal, invited applicants can now work collaboratively with program officers throughout the proposal-writing process and get feedback from staff in real time.

Working jointly with grantees has added transparency to our processes. For instance, in our previous system grantees had no way of accessing their “final” proposal (with edits made by Surdna’s program and grants management staff) online; now they can view revisions in real time, as well as access information on upcoming payments, reports, and past grants.

For Jose Garcia, Program Officer for the Strong Local Economies Program, the portal has expedited the proposal formulation process and created a new, direct line of communication between program staff and applicants. Moving to the cloud has “decreased bureaucracy in our work with grantees and prospective grantees, allowing greater responsiveness to both. It has eliminated unnecessary paperwork so we can spend time on the important stuff.”

By “important stuff,’ he means our mission, and the people working to make it happen. Streamlining our processes means grantees can spend more time on their own mission-related activities, rather than draining resources on fundraising.

In a recent survey, grantees described the portal as “accessible,” “user-friendly,” “easy” and “organized”. 85 percent of respondents were “satisfied” to “very satisfied” with the accessibility of Surdna’s application forms.

But there is room for improvement. Grantees felt ambivalent about their level of satisfaction with the portal as a tool for communicating with Surdna staff. Only a total of 23 percent were either “satisfied” or “very satisfied, while 1/3 were “neither satisfied nor dissatisfied,” and 52 percent were “unsure”.

By making future enhancements to the portal we can continue to unlock its potential as a robust communication tool.


2)  Collaborating and learning within the foundation.

Unlike many installed databases (designed primarily for grants managers), our workflow- and cloud-based system is used regularly by everyone on staff, from the receptionist to the president. Working on a single platform has reduced shadow systems while supporting a more holistic understanding of our work across programs.

Intuitive searches and dashboards provide a birds-eye view of Surdna’s grantmaking landscape, past and present. This has aided our cross-programmatic learning:

“One of Surdna’s strengths is that each program exists within a larger ecosystem of all programs. In the Thriving Cultures Program, we also think in terms of Sustainable Environments and Strong Local Economies [Surdna’s other 2 programs areas]. We can now view the arts in that broader context,” says Shin Otake, Program Associate for the Thriving Cultures Program.

Shared workflows help his team (and others) keep track of grants in the pipeline: “the grant approval process from invitation to approval is seamless. Any member from my team or the Office of Grants Management can see the status of any grant at any given moment, or create reports to map out where we’ve been and where we’re going.”

"Using data- and community-driven platforms, funders can better share information and collaborate internally and externally."

Increased collaboration among finance, grants management, and program staff has also improved our internal controls.

For example, the finance department can now reconcile grants payments by running monthly reports in the system. The timeliness of these reports is key, as it allows grants management to address errors early on, and provide accurate spending data to program staff for budgeting purposes.  

Non-grant contracts (such as fees for consultants, research, grantee convenings, etc.) have also migrated to our grants management system, where they can now be approved and monitored in a central location by Surdna’s Chief Financial Officer. For Controller Matt Walegir, “this has provided a great oversight procedure which did not exist before. We can now get a complete picture of where our contracts are at any given moment.”

Tracking non-grant contracts in a grants database has significant implications beyond internal controls and budgeting. By co-mingling contracts and grants in one space, we are reminded that our tools for impact extend beyond traditional grantmaking. At Surdna, we also have program-related investments (also tracked in Fluxx), mission-related investments, contracts, funder collaboratives, and of course, communication.

Thinking of these “tools in the toolbox” holistically is critical for foundations as they continue to look less “traditional” in the future.

3)  Sharing data and lessons learned with the philanthropic sector.

This priority has the greatest implications for advancing Surdna’s commitment to transparency.

Helen Chin, Director of Surdna’s Sustainable Environments Program, says the new system has “opened up how we interact with the grantmaking process and compliance protocols. It has allowed staff to access reports and other data without having to bypass its gatekeepers, the Office of Grants Management.” 

The “democratization of data” she describes has been a major cultural shift at Surdna, and will continue to transform the way foundations work as the boundaries between different roles are shifted. For example, if program staff can access reports and other data on their own through streamlined processes, the role of grants management can continue to become more strategic, helping foundations interpret their data (rather than merely provide it) to drive decisions. Data-driven foundations can learn from their work over time and share their lessons with the field, helping them become more transparent about their work.

A recent study by the Center for Effective Philanthropy found that most foundations’ top barriers to achieving transparency are staff-related: 31 percent do not have the time to invest in working to be transparent, and 28 percent lack consistent levels of transparency across staff.

Staff limitations such as these can be appeased by putting the right tools in the right hands (if you hired the wrong hands, that’s a different story!). Cumbersome systems – not people – are what often create stopgaps and inconsistencies.

Fortunately, technology can capture such stopgaps.

Our new system enables the sharing of data with the sector through its ability to communicate with external datasets. One example is our adoption of the Foundation Center’s GeoTree, a taxonomy to classify grants by geographic area served.  This information can now be aggregated into the Foundation Center’s repository and made available to a community of funders, non-profits, and researchers seeking to understand the broader funding landscape.

Taken further, foundations can expand the capabilities of their grantmaking systems through the integration of third-party programs to enhance data analysis, visualization, and operations.  Grants management systems are just beginning to facilitate the connection of their platforms with tools like Tableau, PolicyMap, Census Data Mapper and Foundation Maps to help funders make better sense of their data and aid them in decision-making.

We’ve only scratched the surface. For Jonathan Goldberg, Director of Grants Management, Learning, and Information Systems, “The real power could come from what we learn and share with others outside the foundation.  Consider all the data that foundations currently maintain, and all the untapped knowledge that we might extract by aggregating and sharing that information within and beyond the grantmaking community.  It’s something this platform is tailor-made for, and it could be transformative to the field of philanthropy and those who benefit from it.”

As we enter a new era of collaboration and learning, we’re excited to explore the vast possibilities of continuing to break down foundation silos through cloud-based systems.

We may not have all the answers yet, but when we do we promise not to hide them in a cardboard box.

--Adriana Jimenez

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

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