Transparency Talk

Tips from the Tech Sector on How Philanthropy Can Scale Impact
February 15, 2017

(Shannon Farley is the Co-Founder and Executive Director of Fast Forward, the accelerator for tech nonprofits. Prior to Fast Forward, she was the founding Executive Director of Spark, the world's largest network of Millennial philanthropists. Earlier in her career, Shannon co-founded The W. Haywood Burns Institute, a MacArthur Award-winning juvenile justice reform organization. Reach her on Twitter: @Shannon_Farley.)

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

Shannon Farley - Fast ForwardThree years ago, my co-founder Kevin Barenblat asked me why there weren’t more Khan Academies and Wikipedias. He wanted to know why more nonprofits weren’t building software to create social change at scale. At the time, my answer was that the nonprofit startup universe didn’t look anything like the tech startup landscape. Tech startups have founder meetups, online training portals, and investors hankering to go all in on the next big tech solution. Meanwhile, tech nonprofits (organizations with software or hardware at the core of their impact model) were weirdos, stuck at the juncture of the tech and nonprofit worlds. Only a few existed and they operated with little support from either sector.

Kevin and I thought this was a missed opportunity. In the last 10 years, the cost of launching a tech startup dropped from millions to thousands of dollars. With cloud-computing, digital networks, and the ubiquity of mobile, the marginal cost for return on impact decreased drastically, making the business case for tech nonprofits very compelling.

“ We’ve found that one of the biggest hindrances to innovation in the nonprofit sector is restricted funding.”

Determined to empower more nonprofits to leverage tech for social impact, Kevin and I took some cues from the tech playbook and launched Fast Forward. Our accelerator program equips tech nonprofits with seed stage funding, training, mentorship, and connections to the entrepreneur and investor community. While we take a sector agnostic approach to our portfolio, we look for organizations building tech solutions for social issues like education, healthcare, human rights, and the environment. We are able to invest in these early stage tech nonprofits thanks to philanthropic funding from philanthropists familiar with tech models like Google.org, BlackRock, Omidyar Network, and AT&T. Our approach and funding model have been strongly influenced by the tech sector in four key ways:

1. Accelerator Programs

Philanthropists have used leadership programs to train emergent social entrepreneurs for decades. Technologists apply a similar model in a program called an accelerator or incubator. We combined the best of both into the Fast Forward program. We call the Fast Forward program an accelerator because it occurs over an accelerated period of time – 13 weeks. Equal parts leadership development and startup boot camp, our curriculum is built around defining and measuring impact, board development, product design, and hiring technical talent. Our cadre of over 100 mentors for our cohort come from both worlds – nonprofit leaders and philanthropists as well as engineers and leading startup founders.

2. General Support Funding

Each tech nonprofit in our cohort is granted $25,000 in unrestricted funding. We’ve found that one of the biggest hindrances to innovation in the nonprofit sector is restricted funding. Could you ever imagine a VC telling a startup they will fund a new version of the app, but not the Chief Technical Officer (CTO) and tech team required to build it? No. Sadly, that’s often the case in philanthropy. Too often, the technology for a nonprofit is thought of in terms of software licenses rather than as a staffed role integral to achieving impact. For a nonprofit to build programs and products that can impact millions, they need the same general support money considered the norm in the for-profit sector. This type of funding enables a nonprofit to hire the required tech team. As tech development becomes an essential component of impact, nonprofits need CTOs to drive this work. Foundations need to double down on general support if we want to see innovation at scale.

3. Growth Funding

Early stage funding is not a short-term partnership in venture capital. VCs typically invest a small amount in the beginning and then increase their investment when a product hits a growth inflection point. Philanthropists, however, tend to fund in terms of projects or annual timeline versus a long-term trajectory. As a result, nonprofits struggle between launch and the point at which they are ripe for mezzanine capital, larger gifts granted by foundations once a nonprofit hits an impact inflection point. The design phase is ongoing, and product launch is just the start of that journey. Donors should recognize philanthropy as the ultimate risk capital and make bets on people and teams building products with the potential to scale.

4. Timing

Philanthropy is slow paced. Tech development and product iterations progress quickly. If it takes six or more months to process a grant, the technology will have advanced beyond the proposal. At Fast Forward, follow-on funding is released as soon as the books are closed on a donation. We don’t wait, because tech doesn’t wait.

So has implementing tech methodologies helped Fast Forward and our cohorts achieve impact? Absolutely. Take our alumnus CareerVillage, a platform that crowdsources career advice from professionals for students in low-income areas. Since the Fast Forward accelerator in 2015, CareerVillage has scaled from reaching 500,000 students to over 1.5 million.

In three years, Fast Forward has accelerated 23 tech nonprofits. These organizations have impacted over 18.4 million lives and raised over $26 million in follow-on funding.

Technology has the power to achieve unprecedented impact in the social sector. Philanthropists have a lot to learn from the tech world.

--Shannon Farley

From Good Idea to Problem Solved: Funding the Innovation Means Funding the Process
February 8, 2017

(Mandy Ellerton and Molly Matheson Gruen joined the [Archibald] Bush Foundation in 2011, where they created and now direct the Foundation's Community Innovation programs. The programs allow communities to develop and test new solutions to community challenges, using approaches that are collaborative and inclusive of people who are most directly affected by the problem.)

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

Mandy Ellerton

Molly Matheson Gruen

Good ideas for solving our toughest social problems come from a variety of places. But, we need more than just good ideas – we need transparent and thoughtful ways to get community buy-in and a wide variety of perspectives to make those ideas a reality.

For a cautionary case in point, take the origin story (later chronicled in the book The Prize) of the ill-fated attempt to transform the failing Newark public schools. A prominent governor, mayor and, later, an ultra-wealthy tech mogul, hatched the idea to radically transform the schools in the back of a chauffeured S.U.V. Commentary suggests that these leaders did not consult community stakeholders about the plan, only half-heartedly seeking community input much later in the process. As one community member put it to these leaders, "You have forced your plans on the Newark community, without the

measure of stakeholder input that anyone, lay or professional, would consider adequate or respectful." To some observers, it's no surprise that without initial community buy-in, nor a transparent process and over $100 million later, the plan ultimately crashed and burned.

But, let's not throw stones at glass houses. The Newark example is indicative of a larger pattern especially familiar to those of us in the field of philanthropy. We've learned that lesson the hard way, too. Many of us have been involved in (well-intentioned) backroom and ivory tower deals with prominent community leaders to magically fix community problems with some "good ideas." Sometimes, those ideas work. But a lot of times, they don't. And unfortunately, we often chalk these failures up to innovation simply being a risky endeavor, comparing our social innovation failure rates to the oft-discussed (maybe even enshrined?) business or entrepreneurship failure rates. What's more, we almost never actively, sincerely discuss and learn from these failed endeavors.

But social innovation failure often comes at a cost, leaving behind disillusioned community members, bad outcomes for some of our most vulnerable, and lots and lots of wasted dollars that could have gone to something better. Take the Newark example: the failed attempt to transform the schools created massive civic disruption, re-awakened historic hurts and injustice and will likely leave community members even more skeptical of any future efforts to improve the schools.

Through our work at the Bush Foundation, we've learned that truly good ideas–those that will really have a sustainable impact–are often created in deep partnership and trust between organizations, leaders, and–most critically–the people most affected by a problem.

But, that kind of deep community partnership and transparency takes a lot of work, time, and attention. And, most everything that takes a lot of work takes some funding.

Community-innovation

That's why we created our Community Innovation programs at the Bush Foundation in 2013: to fund and reward the process of innovation–the process of solving problems. While the emphasis in innovation funding is often on "early stage" organizations or projects, we joke that we are a "pre-early" funder or that we fund "civic R & D." We provide funding for organizations to figure out what problem to address in the first place, to get a better understanding of the problem, to generate ideas to solve the problem, and then, after all that work (and maybe having to revisit some of the earlier stages along the way), the organization might be ready to test or implement a good idea. See how we depict that "pre-early" problem solving process here.

Most importantly, throughout the innovation or problem-solving process, we also look for particular values to drive the organization's approach: Is the organization genuinely and deeply engaging the people most affected by the problem? Is the organization working in deep partnership with other organizations and leaders? Is the organization making the most of existing resources?

Let's bring it to life. Here are three examples of the 150+ organizations we've funded to engage in a process to solve problems in their communities:

  • World Wildlife Fund's Northern Great Plains initiative is bringing ranchers, conservationists, oil business developers, and government officials together to create a vision for the future of North Dakota's badlands and a shared energy development plan that protects this important landscape.
  • PACT for Families Collaborative engaged truant youth, their parents, education staff, and service providers to understand barriers to school attendance and redesign services and test strategies for positive, sustainable solutions to truancy in western Minnesota.
  • Pillsbury United Communities is using human-centered design processes to engage North Minneapolis residents to address their neighborhood's food desert and create North Market: a new grocery store managed in partnership with a local health clinic that will also be a clinic, pharmacy, and wellness education center.

"We've learned that truly good ideas–those that will really have a sustainable impact–are often created in deep partnership and trust between organizations, leaders, and...the people most affected by a problem."

Our grantees and partners are teaching us a lot about what it takes for communities to solve problems. One of the biggest things we've learned is that collaborative projects often take far more time than anyone initially expects, for a variety of reasons. Over the past few years nearly a third of our grantees have requested more time to complete their grants, which we have readily agreed to.

For example, the Northfield Promise Initiative is a highly-collaborative, cross-sector, community-wide effort to address education disparities in Northfield, Minnesota. The initiative utilizes action teams composed of diverse stakeholders to drive its work. Early on in the project they decided to stagger the rollout of the teams rather than launch them all at once. That allowed them to take more care in composing and launching each team and allowed interested stakeholders to engage in multiple teams. In addition, later teams could learn from the successes and challenges of the earlier ones. As the grantee put it, "Partners felt strongly that it is important to give the process this extra time to ensure that all the different community voices and insights have been included (thereby maintaining this as a community-owned initiative)." We gladly extended their grant term from two years to four years so that they could spend the time they believed necessary to lead the problem-solving effort thoughtfully and inclusively.

Bush-altlogo-colorFor more helpful examples, here are a couple of resources to explore:

  • One of our innovation programs is an award for organizations that have a track record of solving problems with their communities, called the Bush Prize for Community Innovation. Together with our evaluation partner Wilder Research, we created a report about some of our Bush Prize winners that digs into specific conditions, methods and techniques that appear to help organizations innovate.
  • We believe storytelling and transparency inspire innovation. Our grantees openly share what they're learning as they pursue solutions to community problems in grantee learning logs. The learning logs also include references to specific techniques and methods the organizations use to pursue innovation.

As funders, we also have a role in the innovation process that goes beyond writing the check. By virtue of our relationships and portfolios, we have a bird's eye view of the field. By opening up what we are learning, we hope to build trust with our stakeholders and help others build on our work, hopefully leading to more and better future innovations.

-- Mandy Ellerton and Molly Matheson Gruen

From Early Stage Funding to Lasting Impact: The Venture Philanthropy Approach to Funding Innovation
February 1, 2017

(Christy Chin, Managing Partner at Draper Richards Kaplan Foundation [DRK], is instrumental in finding, funding and supporting DRK entrepreneurs, as well as cultivating and engaging DRK’s network of donor partners. As a venture philanthropy firm, DRK provides critical early stage capital to social enterprises tackling some of society's most challenging issues.)

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

Christy Chin Photo - DRKWow! How time flies by when a partnership works so well.  As I prepared for my final Watsi board meeting, I reflected on how much Chase and his team had accomplished and what a joy it is to be part of their quest to make healthcare accessible to all. 

In July 2013, we first met Chase Adam.  It was only a few days after he had pitched Watsi, the first nonprofit to be accepted into Y-Combinator.  In no time, Ron Conway, Tim and Billy Draper were urging DRK to take a look at Watsi.  Chase was ready to make the case for Watsi to be in the DRK portfolio, and he had a few questions of his own.  From the first meeting, there was a constructive and respectful exchange because we were aligned on the end goal – healthcare for all.  As a venture philanthropy firm, DRK conducts rigorous due diligence, not unlike the way in which a venture capital firm evaluates a for-profit investment.  These are our key questions:

Is it addressing an important social issue?

Definitely. A large percentage of our work at DRK is focused on global health, so we know that access to medical care, especially surgical treatments, is a critical problem.

Watsi, the first global crowdfunding platform for medical treatments, leverages scalable technology to solve a substantial need for patients abroad.

Chase’s commitment to radical transparency was distinctive. From the very beginning, Watsi allowed anyone and everyone to see how the money was moving and how the patients’ treatment, with their consent, was progressing.  Transparency of funding increased accountability from the moment a patient’s profile was shared to the delivery of the medical procedure. There was an elegance to Watsi that was extremely appealing.  

“ We firmly believe that multi-year, unrestricted funding is precious capital that nonprofits need to build organizational capacity.”

Is the solution being proposed likely to create meaningful change?

Yes, early results were promising.  In the first seven months after launch, Watsi processed more than 3,700 donations and funded medical treatments for more than 250 patients abroad. DRK has seen many success stories of how technology can enable rapid transformation of an ecosystem, and we truly believe in the power of technical innovation to make an impact on vulnerable populations.

Does the leadership team have potential?

Even though Watsi was still in its early stages, I was confident that Chase had what it takes to be a successful entrepreneur. His passion for the mission was contagious, and he was clearly a resource magnet. Chase was able to attract both financial and human capital to support his vision.  

Is the solution scalable?

At the time, Watsi was already operating across 13 countries and working diligently to identify new partners to scale this model. Today, Watsi operates in 24 countries globally.

DRK bet on Chase in 2013 because we saw the potential for this model to dramatically shift the way governments and institutions fund healthcare treatments abroad, with real-time data collection and complete transparency. I had the privilege of joining Watsi’s board for those three years; DRK requires a DRK representative serve on all grantee boards. As part of DRK’s portfolio support and board service, we openly share our networks to help connect our entrepreneurs with people we believe can catalyze their efforts. In return, we ask for a three-year projection of the organization’s metrics and milestones that demonstrate the impact the entrepreneur hopes to achieve while s/he is an active member of the DRK portfolio. We also expect that the entrepreneur will regularly engage with DRK through written progress updates and in-person check-ins, as well as ongoing conversations with the board representative and, as needed, other key members of our finance, operations, and development team.  

I was fortunate to be joined on the Watsi board by Premal Shah, President of Kiva (an early DRK grantee), and experienced firsthand the power of the DRK network coming full circle.  In December, as my final board meeting with Watsi approached, I reflected on what made Watsi a great example of why we at DRK are so passionate about our work and strongly believe in this investment approach.  

DRK stacked logoDRK was founded in 2002 by Bill Draper and Robin Richards, two highly successful venture capitalists who chose to leverage their success in the venture capital world, applying their skills, expertise, and resources to solve complex social issues. DRK’s venture philanthropy model has been shaped by Bill and Robin’s legacy – we find, fund, and support early stage social entrepreneurs whose ideas have the potential to drive systems-level change.

Since our founding, we’ve raised $110 million in private capital and funded over 100 social enterprises – and we’re aiming to double that number over the next five years. We seek out entrepreneurs with qualities that we know are critically important – vision, energy, determination, courage, passion, and empathy. Our entrepreneurs are tackling important challenges across the globe, including healthcare, education, social justice, poverty alleviation, and the environment.

In the 15 years that DRK has been involved in this work, we’ve learned some powerful lessons that we hope to share with the funding community.  We firmly believe that multi-year, unrestricted funding is precious capital that nonprofits need to build organizational capacity.

We’ve also learned that handing over grant dollars alone isn’t enough. At DRK, the biggest difference we can make for our grantees is providing them with unrelenting support and serving as an advocate on behalf of their organizations.  We’re one of the first institutions to believe in their vision, and we never stop asking the tough questions. As a team, we’ve developed pattern recognition from sitting on many diverse boards and have gained a deep understanding of the challenges our entrepreneurs are likely to face. However, there is always a level of risk we have to account for, and not every DRK portfolio organization becomes a successful endeavor. We are incredibly fortunate to have a supportive board and a community of donor partners that not only accept, but encourage our team to take those risks and explore new possibilities with the potential for great impact.

I can’t emphasize enough the importance of our entrepreneurs’ efforts across the globe, and I encourage you to take a moment to visit DRK’s website (www.drkfoundation.org) to learn more. For any institutions interested in exploring the venture philanthropy model, please contact us and we would be more than happy to share our learnings. We have seen the difference that early-stage funding can make for social entrepreneurs. I hope the next time your organization comes across an entrepreneur like Chase, an extraordinary leader with a big idea, you too will make that bet.

--Christy Chin

 

Fueling Innovation Through Competition
January 25, 2017

(June Sugiyama is director of Vodafone Americas Foundation, leading programs for social impact innovation.)

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

June Sugiyama PhotoInnovation is a word used so frequently that perhaps it has become almost trivial. Globally, we use innovation to describe many things, from new technologies, to new processes, to disruptive ideas, but the action of innovation itself becomes harder to define, and harder still to execute. Countless ideas are abandoned because entrepreneurs could not find the proper funding or mentorship to build their idea from a mere thought to a reality.  

Many entrepreneurs and startups will turn to venture capitalists (VCs) to try to gain funding and support, but it is a challenge in and of itself to get a meeting with a VC, much less secure VC money. This is where foundations and philanthropies, which might be more poised to take risks, can help fill the gap by providing grants to new social impact ideas and start-ups. At the Vodafone Americas Foundation – whether through grants or competition – our goal is to support organizations that use wireless technology to impact change, spark innovation, improve lives, transform the global development sector, or empower women and girls.

“ Countless ideas are abandoned because entrepreneurs could not find the proper funding or mentorship to build their idea from a mere thought to a reality.”

One avenue we take to support organizations – whether a nonprofit, university project, or start-up – is to provide traditional grants earmarked to help develop their product or service to drive social good. However, traditional grants are not the only model for supporting innovation; companies and foundations big and small are developing competition programs to help good ideas develop and move forward. A competition with specific criteria and parameters becomes a refined filter to find driven and passionate individuals - not an arbitrary search. Both commercial and philanthropic organizations host competitions to find the perfect match for unique, effective, innovative, and sustainable solutions to rise to the surface.

Specifically, for us, since Vodafone is a telecommunications service provider, we focus on the ability of mobile technologies to drive innovation for those in need. Because mobile technology is ubiquitous, with over 7 billion mobile subscribers worldwide, it is one of the most effective tools for social change. Innovative mobile solutions have already started to change economies through mobile money, mobile micro-loans, delivery of healthcare through mHealth, education through mobile platforms, and so much more.

VAF_WIP-w-o-winner-block_3inEach year we look for new ideas that leverage mobile for a better world through our Wireless Innovation Project, (WIP) a competition.  The competition is designed to promote innovation and increase the implementation of wireless-related technology. The competition recently opened its ninth annual call for submissions. In March 2017, we will select the winners, with first place receiving $300,000; second place $200,000; and third place $100,000. The winners can receive both the funding and potential mentoring they need while we can invest in the causes and services that are important and meaningful to our mission.

We are excited each year for the WIP competition because it provides unique opportunities for entrepreneurs and the Foundation alike. For example:

  • We get to see their passion firsthand. Each year, we ask the finalists to pitch their project in person at our California offices. This provides us the opportunity to meet new entrepreneurs (and for them to meet one another) to witness their drive and passion for the project. Although there are costs for the Foundation to hold in-person competitions and get everyone under one roof, we feel strongly about getting to know the person behind the innovation; we need to know that they are as committed as we are to ensure a good partnership.
  • Competition brings out the best. In a competition format, naturally there are winners. Driven by a prize and inspired by their peer competitors, all participants are compelled to perform at their very best. A competition sometimes forces people to think outside of the box and go beyond their original concept to differentiate themselves throughout the competition. Within just the competition period itself, entrepreneurs and their ideas may undergo multiple evolutions to arrive at a distilled, quality product or service. The competition format also allows participants to become inspired by one another’s work in a way that is not often possible in traditional grantmaking in which grantees blindly compete against one another.
  • Focus more on potential than current status. What happens when you have a great idea and not much to show for it yet because it’s simply a little early? While it may not be true for all competition models, our Wireless Innovation Project makes it easier for entrepreneurs to highlight the potential of a product or idea and win the competition based on the future impact it can drive versus actual business results seen to date. This allows a greater range of companies, especially start-ups, to gain funding where they may not have been able to otherwise. Our prize money might be just what they need and just at the right time to propel them to where they need to go, like completing a prototype or testing a market.
  • Gather multiple ideas at once. Our annual competition seeks innovations in more than one issue area so it allows us to tap into a diverse source of information and ideas, all at the same time, as well as support these ideas in a bigger way. While we work with different organizations throughout the year for traditional grants, the WIP competition opens up the possibility for us to witness an individual solution or organization to grow and evolve. In one year, we may have a winner that has a solution for the environment and another for financial inclusion. It is truly an engaging experience to learn about, guide, and finally support so many novel and potentially valuable ideas. The WIP competition allows us to generate new connections that we previously may not have made through the traditional grant-giving route. We can break out of our own network to create larger, more integrated networks with entrepreneurs and startups across multiple industries as we make connections with almost all the applicants – not just the winners. We hope that with these partnerships that we create and foster, we continue to make sustainable and dynamic discoveries for solutions that impact great change. 

There are many competition models across the industry, but our model has already identified outstanding innovations that have gone on to win more accolades and additional funding, which has allowed them to reach market and even expand their solutions to create greater impacts. Two of the many notable examples are Mobile ODT, which uses a phone camera for colposcopies, and Nexleaf, which makes a vaccine monitoring platform. Each has been able to turn their ideas into scalable solutions that are revolutionizing healthcare capabilities in emerging markets.   

Finding what was never imagined possible is why so many foundations, companies, and even governments take advantage of the competition model. The model allows brilliant ideas to come forward and help solve specific, important issues in our world today.

--June Sugiyama

 

Learn from the Transparency Challenge Highlights Reel
January 19, 2017

(Janet Camarena is director of transparency initiatives. A version of this post first appeared on the James Irvine Foundation blog.)

Janet Camarena PhotoWho doesn’t love a challenge? Marathons and Olympic events spur individual athletes to break records, mountaintops invite climbers to scale greater heights, and moonshot challenges motivate innovators to aim for the impossible. Could transparency pose similar challenges and opportunities for philanthropy?

Last November, Glasspockets launched a new feature designed to inspire foundations to greater transparency heights. Using data gathered from 81 foundations that have taken and shared the “Who Has Glass Pockets?” transparency assessment, the Glasspockets team identified transparency benefits and trends in a new Foundation Transparency Challenge infographic.  Since it’s often easier to learn by example, the infographic serves as a highlights reel showcasing foundations that are succeeding where most fear to tread, and this post digs in a little deeper to help other foundations learn from some of the selected examples.

Less Pain, Much to Be Gained

The Foundation Transparency Challenge reveals the toughest challenges for philanthropy — those elements that are shared by the fewest participating funders.

The infographic curates the hundreds of documents we have aggregated in Glasspockets to highlight those that can serve as good examples, including pain points for the field such as providing assessments of overall foundation performance, codes of conduct, and grantee feedback mechanisms. Below are observations about each of these based on some good examples from our collection of participants, along with an explanation of why these particular examples were selected.

Assessment of Overall Foundation Performance

Opening up how a foundation measures its own progress develops a culture of shared learning across the field. Despite the fact that many foundations emphasize impact assessment for their grantees, few lead by example and share how they measure their own progress.

Transparency Challenge - Shared Learning Infographic
Only 22 percent (18 foundations) of the 81 Glasspockets participants use their websites as a vehicle to share an overall foundation performance assessment though some do (The James Irvine Foundation, the Robert Wood Johnson Foundation, and the New York State Health Foundation.)

Irvine’s assessment is also unique because it is updated annually, aligned to the rhythm of a foundation annual report — a good tip for those considering how to make the ritual of the annual report a more beneficial exercise.

Another common pitfall is foundations often focus all of their assessment efforts on the grantmaking side. Dashboard metrics in these three examples of performance assessments include things like social media, reputational capital, communications and learning, staffing, financial performance, and funding in diverse communities, in addition to programmatic dashboards. In other words, they look at the institution as a whole.

Grantee Feedback Mechanism

Providing a way for grantees to provide a foundation with ongoing feedback serves to strengthen relationships with stakeholders and creates a culture of continuous improvement, yet only 31% of our sample do so. Most foundations have a contact form of some kind, but few take the step of creating a form specifically for feedback year-round. Opening up a foundation’s website in this way helps break down the insularity of philanthropy.

“Learn from a new Transparency Challenge infographic, which serves as a highlights reel showcasing foundations that are succeeding where most fear to tread.”

Because it is difficult for foundations to receive unvarnished feedback, the David and Lucile Packard Foundation uses a neutral third party service to collect confidential feedback, in addition to giving the option of providing the foundation with direct feedback at any time.

Another obstacle for feedback is grantee time. A good step taken by both Packard and the Barr Foundation is to provide prompts that make it easier for the grantee to consider areas in which they might have advice for the foundation.

In the case of Barr, its online form resembles a Yelp review format that allows a star rating and offers a quick multiple-choice survey in addition to the ability to provide an open-ended response.

Code of Conduct

Finally, posting a Code of Conduct is a small but simple way to build credibility and public trust by demonstrating an institution’s commitment to professional and ethical conduct. Many foundations do not post a code of ethics or guiding principles, but even for those who do, surprisingly few explain what happens if the code is violated.

The codes of conduct offered up by Commonwealth Fund, the Alfred P. Sloan Foundation, and the Rockefeller Foundation are good examples for peers; they include rules of engagement that one might expect, and they also have rare but important details about the consequences of a code violation.

These are just a few of many examples in “The Transparency Challenge” infographic, so take a look to see which examples might inspire you to the next mountain peak on your journey to openness. In a future post I’ll review the remaining examples we highlighted and why.

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

George Michael's Quiet Philanthropy
December 27, 2016

(Melissa Moy is special projects associate for Glasspockets.)

George MichaelAlthough iconic pop singer George Michael was well known for hits like “Last Christmas” and “Wake Me Up Before You Go-Go,” few knew about his generosity to strangers and the causes he cared about.

Proving once again that anonymity has a shelf life, we are now learning about Michael's philanthropic resume. His random acts of kindness included an anonymous payment for a woman’s IVF treatment and contributions to several United Kingdom fundraisers.  The 53-year-old former Wham! singer died Dec. 25 of heart failure.

Earlier this year, we mourned legendary musicians Prince and David Bowie, who like Michael also quietly and generously supported numerous philanthropic causes.    

In the coming days, we’ll likely learn more about Michael’s generous philanthropy, which included donations to fight cancer and HIV.

--Melissa Moy

Glasspockets Find – Can the Silicon Valley Giving Code Be Cracked?
December 21, 2016

The fast and furious pace of Silicon Valley’s tech innovation culture has also given rise to burgeoning new wealth, and yes, new philanthropy.  From 2008 to 2013, total Silicon Valley-based individual giving increased 150%, from $1.9 billion to $4.8 billion, according to a new report. But how do established nonprofit groups make contact with the new philanthropic powerhouses in the neighborhood?

“Just blocks away from the region’s booming tech companies but (local nonprofits) aren’t sure how to attract Silicon Valley’s philanthropy to their causes.”

This question is at the heart of the new report, “The Giving Code: Silicon Valley Nonprofits and Philanthropy,” documenting the rising challenge local Silicon Valley nonprofits face in attracting funding from some of the world’s most generous funders – right in their own backyard.  Despite this wealth of local resources, about 30% of the community-based organizations focused on providing local safety net support – such as homelessness, poverty, troubled public schools – reported higher deficits than the national average.

The authors noted the region is developing an “emerging giving code – an implicit set of strategies and approaches shared by Silicon Valley’s individual, corporate, and institutional philanthropists alike.”  This approach to giving is “widely shared among the region’s new philanthropists” and heavily influenced by technology and business. 

Giving Code Report CoverWith support from The David and Lucile Packard Foundation, Open Impact gathered data from more than 300 Silicon Valley stakeholders, such as wealthy residents and their advisors, nonprofit executives, corporate and private foundation giving officers, and thought partners across all sectors. 

A key issue raised in the report: Although Silicon Valley philanthropists give funds to local issues and causes, most but most are earmarked for private schools, universities and hospitals rather than for community-based organizations. 

The report stated, “These nonprofits are struggling to keep pace with exponential increases in demand for their services, lack the capacity and the funding to gain real traction, or are themselves in financial distress.  Some have offices just blocks away from the region’s booming tech companies—but they aren’t sure how to attract Silicon Valley’s philanthropy to their causes.  The support they need to have more systemic impact is often right next door, but it is not a door they know how to open.”

Silicon Valley Demographics

Although the Silicon Valley boasts a growing number of millionaires and billionaires, many of its 2.6 million residents are facing financial distress due to the high cost of living. About 29.5% or 800,000 people rely on public or private assistance.  The median sale price of a home in 2015 was $830,361, and in some neighborhoods, homes are two or three times that price.  Since 2011, rents have increased 27%, which is 227% higher than the national average.

Many of Silicon Valley’s community-based organizations operate on a small scale and are doing their best to meet the needs of a growing displaced and vulnerable population.  These organizations have little time, capacity or resources to advocate for systemic change – which appeals to many philanthropists seeking strategic impact.

Barriers to Local Giving

The report identified barriers to local giving:

  • The small size of community-based nonprofits, which have minimal capacity to partner with foundations, corporations and individual donors in the ways philanthropists expect or meet requirements that come with large grants.
  • The cultural divide between the new Silicon Valley donor and traditional nonprofits. Many Silicon Valley donors have business backgrounds and prefer a “return on investment”; they believe they will have more impact in a developing country, where costs and barriers are often low.
  • Knowledge and information gaps – local nonprofits do not know how to make contact with the new donors on the philanthropic scene; and new philanthropists lack awareness of local nonprofits and local needs.
  • Social network and experience gap – community-based nonprofit leaders and new philanthropists “don’t move in the same social circles.”
  • Mindsets and language gap – nonprofit leaders speak a kind of “moral language that emphasizes social responsibility, social justice, equity and the common good” and they use jargon like “empower,” “transformation,” and “theory of change.” Meanwhile, new philanthropists and donors speak in the language of “business, efficiency, and bottom-line profits… they talk about the ‘biggest bang for the buck’ not just in business but in their philanthropy.”

The authors noted that the combination of these gaps – knowledge and information gap, social network and experience – contribute to and reinforce an empathy gap that is felt by both sides.  Therefore, wealthy tech entrepreneurs don’t understand nonprofit leaders, and vice versa, which may lead to judgment and ultimately make it more difficult to “recognize how their work, their passions, their skills, and insights might align for the betterment of their shared local community.”

This report also captures hope amidst struggle.  This hope may be best manifested by the funder of the report, the David and Lucile Packard Foundation, which was one of the very first Silicon Valley philanthropies to emerge in the region.  The foundation was established in 1964 following the birth of the Hewlett-Packard Company, which was ahead of the curve, i.e. the now familiar trajectory of moving from garage shop tinkering to tech powerhouse. Today, despite being a large, global foundation, the Packard Foundation maintains an active grantmaking program that supports local communities.

The report concluded that potential opportunities to develop a more effective and collaborative Giving Code will “spark the creation of an even more powerful Silicon Valley giving code: one that works on behalf of all the region’s residents.”

--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

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