Transparency Talk

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

--Robert K. Ross

Beyond Money: Foundations Can Create Change by Building Communities
December 3, 2015

(Mark Schmitt directs the political reform program and is director of studies at New America, an independent think tank and civic enterprise. He is a former editor of The American Prospect and has been a program director at the Open Society Foundations and worked on Capitol Hill. Follow him on Twitter at @mschmitt9. This post originally appeared on Philantopic. It is the 10th and final post in a series about U.S. democracy and civil society.)

Schmitt headshotThe world of foundations and the work they fund has for too long been shrouded in obscurity. While many foundations boast a commitment to transparency and release lists of their own grants, it has been far too difficult to see who funds an entire field, or understand how a foundation-backed policy idea made it onto the agenda. Given that foundations can be at least as influential as big political donors, driving policy initiatives such as charter schools and health reform, there should be resources that open up the sector to journalists and activists, as well as grantseekers interested in understanding the often mysterious question of who got what.

But that’s only part of the question. Even the most complete list of grantees and grant dollar amounts tells us only so much about the work and the vision: What does restoring American democracy mean, in practice? Can this mapping resource help answer that question?

Foundations do more than just give money to worthy projects. At their best, they make at least two other vital contributions: They help build a community — that is, the whole network of sustainable, adaptive organizations, from research projects to grassroots activists, that can further a cause — and they create connections, across issues and communities, in order to make each one stronger and more vibrant. So in looking at the Foundation Funding for U.S. Democracy tool, I wanted to ask those questions: Where have foundations built strong communities around democracy issues? And have they created the kinds of connections — between, for example, nonprofit journalism and efforts to reduce the role of money in politics — that strengthen these communities and the cause?

Schmitt_blog_image
The “constellations” section of the tool doesn’t fully answer these questions — to do so would require much deeper analysis and for foundations to provide more complete and plain-English descriptions of the “why” of their grantmaking — but it provides some useful clues. For example, one can see a distinct community of organizations working on election administration and access-to-the-ballot issues — a relatively small number of sizable organizations, with reliable support over several years, often in the form of general-support grants. Closely aligned to these core groups is a larger group of smaller organizations focused on a single state or a particular constituency. (This community would be even larger if the substantial and central contribution to the field made by the Pew Charitable Trusts were included. While grants to its elections project from other foundations are listed, its self-financed work is not.) It is probably no accident that despite the partisan acrimony over voting and significant setbacks to the voting rights movement, there has been significant progress and consensus on ideas such as early voting, online voter registration, and other aspects of election reform.

In a 2013 article in Democracy, Nick Penniman and Ian Simmons argued that the $45 million a year that foundations and other donors were investing in efforts to reform the role of money in politics was too little, and that if they wanted to advance progress on the causes they care about, individual and institutional philanthropists ought to commit one percent of total private giving, or $3 billion annually, to causes such as fixing the corrosive role of money in politics. This tool extends the point made by Penniman and Simmons to show that not only is total funding for campaign reform inadequate to the challenge, the community engaged in that effort is diffuse, the core organizations comprising that community are hard to identify, and the grants awarded in support of that cause are relatively small and often for specific projects rather than general support.

Moreover, in neither case does there seem to be much connection to other issues of democracy or to efforts such as improving journalism or civic education. Each of these issues, such as funding for innovations in public service journalism or for the Newseum in Washington, DC, seems to attract a unique set of funders who do little or no giving for other democracy issues.

Foundation Funding for U.S. Democracy is not the definitive answer to the questions about how funding works and whether it has built effective communities around democracy issues. To really see foundation funding for democracy and how it has worked requires a deeper investigation and the kind of real journalistic scrutiny that foundations rarely get. But much like the databases we rely on to understand the influence of money in democracy, this tool is a start and provides valuable clues and an outline for those who want to follow the money.

--Mark Schmitt

Giving Pledgers Sign Up for Clean Energy
December 2, 2015

Egp-icon-typepadA coalition of private investors led by Giving Pledge co-founder Bill Gates has announced the launch of an investment fund to help accelerate progress on clean energy development.

The announcement coincides with the United Nations Climate Change Conference in Paris. The Breakthrough Energy Coalition includes Gates and 26 other investors, who have a combined net worth of more than $380 billion. What’s more, those investors include 11 other Giving Pledge signatories:

Learn more about the Breakthrough Energy Coalition and explore our Glasspockets feature Eye on the Giving Pledge.

-- Daniel Matz

Serving the Public Good (by Invitiation Only)
November 30, 2015

(Brad Smith is president of Foundation Center. This post originally appeared on Philantopic.)

Board_smithb_180_180_s_c1America's foundations are not particularly interested in receiving your proposal. Earlier this year I did a quick search on Foundation Directory Online (FDO) of the 96,042 independent, company-sponsored, and community foundations based in the U.S. The results were pretty shocking: only 26,663 are willing to accept unsolicited proposals. That's right, 28 percent. True, many of these are the larger, staffed foundations that hold the bulk of the sector's assets. So I took a look at the 967 foundations that have $100 million in more in assets and account for close to half of all foundation giving by U.S. foundations. The results are more encouraging, but only somewhat — 568 (58 percent) of them accept unsolicited proposals.

I find this troubling, on two counts. The first is because of the grand public policy bargain that makes institutionalized philanthropy possible in America: wealthy donors are given significant tax incentives to create and maintain foundations in exchange for providing a demonstrable, long-term contribution to the public good. As much as I understand how small foundations (especially) might not want to spend their resources on creating a bureaucracy whose primary task is to turn down the overwhelming majority of proposals they receive each year, it still bothers me. Somewhere in my heart I believe that, when it comes to foundations, the public good is best served when the public (in the form of social sector organizations) can freely apply for support. I can understand how a foundation may want to have a program or two that does not accept open applications, but to shut out the public entirely from any unsolicited inquiries is something I have trouble accepting.

Moreover, this can further isolate foundations, institutions that are already insulated from the kinds of market, electoral, and fundraising pressures that lead to standardization, transparency, and accountability in other sectors. This is also the source of foundations' most precious asset — the philanthropic freedom that allows them to take risks, stick with difficult issues over the long-term, and make leaps of faith that can spark whole new ways of solving the world's most pressing problems. To the extent that foundations put more emphasis on creating elaborately designed strategies while shutting themselves off from unsolicited proposals, their work can become a kind of endowed activism.

So, what can foundations do?

Somewhere in my heart I believe that, when it comes to foundations, the public good is best served when the public can freely apply for support.

Keep the door open, even if it is just a crack. No matter how bright a foundation's trustees or staff might be, their networks are necessarily limited. And, as I can attest from long years of experience as a foundation professional, no matter how good your own ideas are, there are many people in the world with better, more creative ones. So it's just good business for a foundation to maintain at least one program area that freely allows organizations to apply for funding. Think of it as a kind of venture window or idea lab for your foundation. Failing that, foundations can signal their willingness to accept brief letters of interest, after which staff can decide whether or not to invite a formal proposal.

Create a website. While a remarkable 93 percent of American foundations do not have a website, there are some countries like the Netherlands where a Web presence is required of all foundations. (But that's a topic for another blog post.) In terms of numbers, the majority of American foundations are very small and have little or no infrastructure. They figure: "If we put up a website, we will be flooded by proposals that far exceed our grantmaking budget and most of which do not respond to our priorities." A simple website can actually help and gives you the chance to be crystal clear about what your foundation will fund and what it will not. Foundation Center has a service that designs and hosts (more than two hundred) foundation websites to make this process as simple and painless as possible.

Do a good job filling out your 990-PF tax return. For that huge majority of foundations that do not have websites, the 990-PF is the principal source of information about them for the public. It is also used by Foundation Center and others to build databases that describe foundation interests, priorities, and limitations. The Internal Revenue Service, in coming years, will require digital filing of 990s and will make them available as machine readable open data for use by anyone with a computer and a good algorithm. In other words, information about your foundation will be everywhere, and it will be based primarily on what you say about yourself in the tax return.

What can nonprofits do?

InviteOnlyI once gave a live Web chat with the seemingly contradictory title "How to get a grant from a foundation that doesn't accept proposals." This is one of the most frequent questions posed to Foundation Center staff and the professionals who staff some four hundred and fifty Funding Information Network affiliates in all fifty states. The answer basically boils down to what my mother told me when I was growing up: "It's who you know that counts." In more modern parlance this means networks. If a foundation says it will not accept unsolicited proposals, look for a connection that could lead to an invitation to the party. Use Foundation Directory Online to scour its board and staff lists (if they have staff). Look at all their grants and who is getting them for what purpose. If you or one of your trustees has a connection with someone on the grants list, see if that organization will introduce you to the foundation. Remember, foundations that do not accept unsolicited proposals still make grants. Your task is to find a way on to the invitation list. The good news is that foundations tend to fund organizations consistently over time, so once you get that first grant (and perform well) there is a strong chance that future grants will follow.

Foundation Center sits at the nexus — or, to use the postmodern term, "interstices" — of foundations and the nonprofits they support. Though we know both types of organizations extremely well, we strive to remain religiously neutral by not picking winners or losers or otherwise classifying organizations as good or bad, worthy, or unworthy. Nevertheless, we do see trends, and some of those are worth noting, exploring, and perhaps going public about. As one who has committed his professional life to philanthropy and the social sector I am still wrestling with this one. Help me think it through in the comments section below.

--Brad Smith

What’s Your Giving Story?
November 20, 2015

Thanksgiving is an opportunity to celebrate what we are thankful for.  For many families, the holiday also marks the beginning of a charitable season, when many focus on sharing and end-of-year giving.

In addition to sharing time and treasure, a movement has started to encourage donors to also share their stories. In recent years, with the advent of social platforms and digital media, nonprofits have felt the pressure to develop media savvy techniques for highlighting the value of their work. 

As it turns out, one of the most powerful ways to tell that story can be by putting the spotlight on the donor voice.  One of the great benefits of philanthropic transparency is that it can rally others to the cause, and that is the premise behind the #MyGivingStory campaign sponsored by #GivingTuesday, which not only encourages us all to become donors, but to also open up and share WHY we give.

One of the great benefits of philanthropic transparency is that it can rally others to the cause, and that is the premise behind the #MyGivingStory campaign.

Founded in 2012 by New York’s 92nd Street Y in partnership with the United Nations Foundation, #GivingTuesday has become a worldwide movement that celebrates giving and philanthropy.  In the United States, it is observed on the Tuesday following Thanksgiving and shopping events Black Friday and Cyber Monday as a way to bring some balance to a season often criticized for its focus on consumerism. 

Among #GivingTuesday’s numerous supporters are Bill and Melinda Gates and Steve and Jean Case, who have pledged to give away the majority of their wealth during their lifetime.

Donors are encouraged to share why they give on social media, such as Twitter and Facebook. As part of the #MyGivingStory contest, donors can share about a time when they gave to a nonprofit organization, and why it was meaningful to them. 

Sharing personal stories “celebrates and encourages giving” in addition to connecting diverse groups of individuals, communities and organizations worldwide, according to #GivingTuesday.

Some #GivingTuesday donors have a personal connection to the charities they support.  In a #GivingTuesday testimony shared by The Huffington Post and 92nd Street Y, Jared Calhoun describes how Ronald McDonald House Charities provided Calhoun and his family much-needed support during a family crisis.  Calhoun’s two-year-old daughter Katelyn was diagnosed with advanced stage neuroblastoma, a type of cancer, and required multiple biopsies, five rounds of chemotherapy, as well as radiation therapy. 

#MGS“During the ordeal and scary moments at the hospital, we were able to find family moments, hugs, smiles and laughter thanks to the Ronald McDonald House,” Calhoun said in his testimony. “Before this experience I didn't know why RMHC was so important. But I can certainly tell that story now. And I'm a big fan.”   

Actor Chris Evans, known for his title role in the Captain America franchise, shared that he likes giving to the #TheRealSuperheroes – young cancer patients – at Christopher’s Haven, a children’s charity that supports child cancer patients when they return home after hospital treatments. 

Nominators may submit 200-word essays about why they are inspired to give to their favorite 501c3-registered organizations.  The public will help select semi-finalists by voting now through November 24.  A panel of judges will determine the winners, who will be announced on Dec. 1 – #GivingTuesday.

Opening up about giving pays off: #GivingTuesday organizers will give away six prizes to the donors and their favorite organizations.  Two nonprofits will receive the top prize of $5,000, and their nominators will receive $500.  Organizers will also give away two second prizes ($2,000 for nonprofits and $200 for nominators) and two third ($1,000 for nonprofits and $100 for nominators) prizes.

What’s your giving story?

--Melissa Moy

Eye On: Chobani Founder Hamdi Ulukaya
November 18, 2015

(Melissa Moy is special projects associate for Glasspockets. For more information about Hamdi Ulukaya and the other Giving Pledgers, visit Foundation Center's Eye on the Giving Pledge.)

Ulukaya_medium photoFamily and homeland helped shape this Kurdish American billionaire’s interest in global philanthropy and improving the plight of worldwide refugees impacted by war and poverty.

Chobani yogurt founder Hamdi Ulukaya said that his mother’s generosity toward those in need seeded an early interest in philanthropy.  Even the company name reflects his native Turkish roots.  Chobani is the Turkish word for “shepherd,” and Chobani has said that the moniker is an homage to the “spirit of giving farmers.”

“Growing up, I watched my mother give to those who needed and it came from the most amazing place in her heart,” Ulukaya said in his Giving Pledge letter, whereby individuals pledge to give away the majority of their wealth during their lifetime.  Upon joining the Giving Pledge in June 2015, he dedicated his Pledge commitment to his mother.

In addition to family, peer influence also played a part in Ulukaya’s decision to make a “public commitment” to help refugees.  In his letter, the New York resident praised Bill Gates and Warren Buffet for setting an example for global philanthropy.  Ulukaya is among 138 Giving Pledge participants in 16 countries.

“I hope that my commitment to the Giving Pledge will in turn inspire others to do the same,” Ulukaya said in his letter.

Hamdi Ulukaya:

  • Founder, Chairman and CEO of Chobani yogurt
  • Kurdish American entrepreneur and businessman
  • Ernst & Young’s 2013 World Entrepreneur of the Year
  • Founder of the Chobani Foundation, which focuses on youth and underserved communities, and entrepreneurs and small business owners
  • Founder of the  Tent Foundation, which provides direct aid to refugees and advocates for refugee rights and policies
  • Personal net worth is over $1 billion

Humanitarian Giving

The Giving Pledge marked Ulukaya’s public commitment to donate the majority of his personal wealth to helping refugees and finding a solution to this humanitarian crisis. 

Earlier this year, the 43-year-old launched the Tent Foundation to specifically provide direct aid, effect policy changes and develop strategies to help 50 million forcibly displaced people worldwide.  His foundation aims to collaborate with worldwide governments and organizations.

The magic and power of the American dream is something I believe should be available to everyone.

Since the early days of founding his Greek yogurt empire, Ulukaya has donated 10% of his profits to the Chobani Foundation, which focuses on access to food for youth and underserved communities, and supporting entrepreneurs and small business owners. 

In 2013, the Chobani Foundation distributed $624,920 to 17 organizations in the United States, Canada and England, according to the foundation’s 2013 990 Form, a form that certain federally tax-exempt organizations file with the IRS.  The largest gift of $285,630 helped establish the South Edmeston Community Center in Edmeston, New York, and the city that is also home of Chobani’s first yogurt factory.

Other gifts included $100,000 to the Canadian-based Global Enrichment Foundation, which supports leadership in Somalia through educational and community-based empowerment programs; $92,230 for the Halabja Community Playground Project, a London-based charity that built an adventure playground for children in Halabja, Northern Iraq; and $25,000 to the Boys and Girls Club of Magic Valley in Twin Falls, Idaho.  The Idaho city boasts a Chobani factory, which opened in 2012 as the world’s largest yogurt factory.

Entrepreneurial Spirit

While studying English in New York in 1994, the Turkish immigrant became fascinated by the idea that “anyone can start something in America,” he said in his letter.  By 1997, Ulukaya enrolled in business courses at the State University of New York.

“The magic and power of the American dream is something I believe should be available to everyone—and is part of my hope for a modern Turkey and for entrepreneurs around the world,” Ulukaya said.

I believe that as people who have been blessed with opportunity in our own lives we must give hope to others.”

Growing up in a hardworking communal culture in Turkey, Hamdi Ulukaya used his background as a Kurdish dairy farmer to cultivate his entrepreneurial dream into a billion-dollar reality.  In 2002, he started a modest feta-cheese factory. 

In 2005, Ulukaya took a risk purchasing a defunct yogurt factory in upstate New York and launched Chobani.  In October 2007, he shipped his first Chobani yogurt order to a Long Island grocer. 

Relying on his entrepreneurial skills, the savvy Ulukaya negotiated with supermarket retailers to pay the slotting fees – the fee to place product on retailer shelves - over time and also in yogurt rather than cash.  He also relied on social media to promote Chobani.  Within five years, Chobani grew into a billion-dollar business.

In his Giving Pledge letter, Ulukaya pointed out the benefits that entrepreneurship has on impacting community change, including his own success.  His foundations provide local and global grants.

 “I believe that as people who have been blessed with opportunity in our own lives we must give hope to others,” Ulukaya said.

--Melissa Moy

Grantmaker Transparency: The Dawn of a New Age in Philanthropy
November 16, 2015

(Aaron Lester is demand generation manager at Fluxx.  This blog post first ran in PhilanTopic.)

Aaron_lester_for_PhilanTopic"People tend to be private about love and money, and in philanthropy, it's both," says Janet Camarena, director of transparency initiatives at Foundation Center.

It's only natural that, traditionally, philanthropy has unfolded behind closed doors. On the one hand, the freedom to make personal funding choices gives grantmakers the ability to stay above the fray, uninfluenced by both market and political pressures. On the other hand, it doesn't allow the public to understand, learn from, or think critically about philanthropy.

"Giving and charitable acts are such private, emotional transactions," says Suki O'Kane, director of administration at the Walter and Elise Haas Fund. "How do you come from such strong traditions of privacy and intimacy, and bring that out into the open?"

Where do things stand?

Indeed ­– how do we as a sector make the switch from a traditionally opaque business model to an enterprise that embraces more transparency? It all comes down to the following questions: What am I funding? Why am I funding what I'm funding? Is my funding making an impact? And perhaps most importantly, how do we improve?

How do we as a (philanthropic) sector make the switch from a traditionally opaque business model to an enterprise that embraces more transparency?

There is good news: transparency in philanthropy is happening, there's no denying it. In fact, it's well under way, with large foundations like Gates, Ford, and Getty, sharing their endeavors with the public, surveying their grantees (and sharing the results), and creating searchable grants databases. Still, transparency can be difficult.

As a grantmaker, you know that sometimes your investments fail, sometimes grantees don't perform the way you expected, and sometimes, despite your best intentions, you can't pull off a new initiative or program. "Philanthropy isn't venture capital," says Christine Maulhardt, director of communications and public affairs at the Blue Shield of California Foundation. "Big losses aren't typical in our sector. We want everything to work out perfectly."

Regardless of the perceived risks, transparency in philanthropy is here to stay. And yes, it can be scary and hard to figure out how to get started. But the rewards for embracing transparency far outweigh the risk of turning your back on it.

Time for Transparency ImageWhere are we headed?

 

As we look to the (not so distant) future, we're particularly excited about the potential for grantmakers and grantees alike to have the ability to track incoming evaluation data, to understand in real time their organization's short- and long-term impact, and to be able to respond to that data and take action to ensure continued progress.

In the past, there was no common language used to talk about impact evaluation. Now, for the first time, technology can help create that common language. It is possible for foundations to not only track their own progress toward a goal, but also to compare results with other groups working toward the same end. The intelligence learned creates a greater potential for real needle-moving impact.

Becoming Transparent: Best Practices

If your foundation is just beginning the journey toward greater transparency, Camarena has suggestions for working in league with your peers. First, there's no need to be revolutionary. "Rather than creating something custom for your foundation, really look across the field to some standard practices," she says. "When it comes to creating the application process, look at grants management systems that exist already, and look at taxonomy so that you're not inventing a language that won't make sense field-wide." Her key takeaways:

  • Look to other foundations for standard practices on transparency; don't reinvent the wheel
  • Take advantage of modern grants management systems to help guide your application process and to create a common taxonomy.
  • Join a regional association of grantmakers so you can network with your peers and share ideas, successes, failures, and best practices. If you're using a grantmaking solution, join the community of users.
  • Participate in field-wide movements like the Who Has Glasspockets initiative and Foundation Center's Get on the Map campaign.

As daunting as it may be to open your foundation's doors to the public, transparency has far more benefits than drawbacks. Not only will you be moving in step with a growing movement, you'll also be in great company. It's time we started to share the why and how of our giving. All of us stand to benefit.

--Aaron Lester

The 30-Layer Cake of Grants Management
November 11, 2015

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

AjimenezReality TV is not all mind-numbing. I recently discovered a baking show that had lessons to teach about working in the evolving world of grants management. 

In PBS’s The Great British Baking Show, contestants test different recipes to showcase their baking talents. One of the top challenges on the show was preparing a cake with 30 perfectly distinctive layers. This was the ultimate feat because it would expose the mastery of the bakers’ technical skills.

While the bakers relied primarily on precision and rules to pass this 30-layer trial and other “technical challenges,” the winning bakers also demonstrated “soft” skills: they were creative, flexible, and collaborative; they worked well under pressure; and they knew when to ditch tradition and take a risk when the conditions demanded it. These are precisely the skills that today’s -- and tomorrow’s -- grants managers need to thrive in a changing environment.

This was not too different from the advice I’d heard at a recent Grants Managers Network (GMN) program, Become the Grants Manager of the Future: be flexible and open; be a chief problem-solver and a team-player; and understand the rules so you know when to break them. Grants management, like baking, requires precision, measurement and technique, but it also requires creativity, adaptability, and nimbleness.

Led by Sara Davis, director of grants management at the William and Flora Hewlett Foundation, and Daniel Weinzveg, an organizational consultant, Become the Grants Manager of the Future addresses the growing hunger (pardon the food pun) among grants managers to get clarity on where the profession is headed and how we can collaborate to increase our impact in the philanthropic sector.  The program captures the excitement around these new opportunities.

Grants management, like baking, requires precision, measurement and technique, but it also requires creativity, adaptability, and nimbleness.

One of the session’s key points is that by connecting grants managers’ expertise in the “how” of grantmaking with the strategic side of grant practice, we can create frameworks that lead to greater transparency in order to support learning and collaboration. Operations can no longer be siloed from strategy, because transparency is the new norm.

In fact, there are many “new norms.”

The profession of grants management is rapidly evolving. The transactional elements of grants administration (e.g., processing grant requests, getting grantees paid, assembling board books) have always existed, and will remain critical to grantmaking organizations. 

However, over the past decade technology has automated many of these processes. According to the 2014 GMN/Technology Affinity Group survey, 65 percent of foundations now manage some level of paperless grant systems. This has opened up opportunities for grants management professionals to shift into more strategic roles and collaborate more closely with program staff and leadership. 

Grants management has also shifted as organizations have become more data-driven. Foundations now have access to vast amounts of information, and they are relying on grants managers to help them make sense of it.

Grants managers play a central role in collecting key data sets and trends about our grant portfolios over time, such as: demographic information about grantees and constituents served; outcomes, activities and indicators of success; statistics about average grant size/duration; geographic areas served; etc. We can also gather baselines about our internal processes to gauge efficiencies and stopgaps (e.g. turn-around time for making a grant, processing a payment, or reviewing a letter of inquiry).

As we become the grants managers of the future, what should foundations of the future look like?

Access to the right data – and knowing how to interpret it—can help foundations make informed decisions that lead to better outcomes in service of mission and grantees. It can help us set policies and procedures that are based on real needs and not arbitrary rules; it can support us in learning about our portfolios and making strategic course-corrections where needed;  and it can aid us in becoming more transparent about our work and measuring progress towards our stated goals.  We can also use benchmarks, such as Who Has Glass Pockets, to help in this endeavor.

The 2015 GMN Salary Survey found that grants management professionals spend only 42 percent of their time on “core” grants management functions.  Other job responsibilities include IT, evaluation, legal counsel, finance or working within grant programs.

The multi-functional nature of grants management provides an opportunity for transparency, as grants management professionals often act as a liaison between multiple areas of foundation work.  

Meanwhile, this disparity presents a challenge: Are grants managers properly trained to step into leadership roles as data analyst experts and decision-makers? Do we all aspire to be?  Is there an obstacle among foundations who do not recognize this potential in their grants management staff? How can they support grants management in their professional growth?

So, as we become the grants managers of the future, what should foundations of the future look like? From a strategic standpoint, philanthropy leaders have many questions to address if they want to foster a data-driven and learning-based culture:

  • How can foundations leverage their existing data to make informed strategic decisions?
  • What frameworks can be put in place to integrate grants management as key contributors to foundation learning, analysis, and decision-making in order to benefit the foundations themselves and the grantees they support?
  • How can foundations incorporate effective practices into their strategic grantmaking?

Answering these questions is not an easy feat, but neither was baking a 30-layer cake on The Great British Baking Show.

--Adriana Jimenez

Living Up to a Legacy of Glass Pockets
November 5, 2015

(Deanna Lee is chief communications and digital strategies officer at Carnegie Corporation of New York.)

Deanna LeeWhat does a website redesign have to do with “glass pockets?” For Carnegie Corporation of New York—whose mission is to promote the advancement and diffusion of knowledge and understanding—it goes far beyond a general use of the Internet to transmit information. “Glass pockets” is a defining principle of who we are, and thus a defining principle that has guided our entire web redesign process.

First, some background. In the 1950s,  Carnegie Corporation chair Russell Leffingwell testified before Congress that “foundation[s] should have glass pockets,” allowing anyone to easily look inside them and understand their value to society.  A legacy of transparency connected to dissemination continued through Corporation president John Gardner, who advocated for energetic dissemination of activities, to current president Vartan Gregorian, who has emphasized our “legacy of glass pockets” as an ideal and a guidepost for “communicating as clearly and in as much depth as possible how the Corporation conceives of its mission.”

Today’s digital landscape means that we can realize this—reaching and engaging more people, with more information about what we do—as never before. We think of web channels, tools, and design, not as new, “disruptive” technologies, but rather as evolving (and exciting!) opportunities to realize a 100-plus year-old mission.

And so, the redesign process for Carnegie.org began with a largely internal branding exercise to further define our longstanding mission. With the great folks at Story Worldwide, we articulated a core narrative with “pillars” or key principles, including a sense of stewardship to the legacy of Andrew Carnegie, a focus on expert knowledge, a “selfless” emphasis on program grantees and their work, and a commitment to serving as a convener of grantees in like areas of knowledge, and of knowledge-based communities.  These organizational principles were central to how design firm Blenderbox went on to imagine and develop the website layout and user experience.

At the same time, we conducted surveys and interviews with multiple stakeholders and audiences about the old site. As Chris Cardona of the Ford Foundation has written on the Glasspockets blog, we have to be open to failure, and be willing to look at what works and what doesn’t.  Also important, as emphasized in Glasspockets’ transparency indicators, is sharing the results.

What wasn’t working? People said they did not have a clear sense of our program areas.  With information and stories ranging from international peace and security to voting rights to standards in K-16 education all “mixed together,” they found it difficult to delve into their areas of interest.  Also, grantees wanted to be able to connect with peers, and to learn about each other’s activities.

This is why the new Carnegie.org immediately presents a clear depiction of our core program areas (arranged, in homage to Andrew Carnegie, like library book spines). 

1-600px
 

Each program folds out into a preview of a mini-site, with separate subdomains or “hubs” for Education…Democracy…International Peace and Security…and Higher Education and Research in Africa. 

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Enter a program hub, and a simple layout shows the overarching goal of the program and its focus areas (or, in terms of Glasspockets indicators, grantmaking priorities).

Beyond that, each program boasts its own flavor and kinds of content that emphasize those mission pillars—expert knowledge, convening, an emphasis on grantees, and stewardship of our history:

3-600pxInternational Peace and Security currently features commentary on this policy question of the day: Should the U.S. cooperate with Russia on Syria and ISIS? Answers are “convened” as a compendium of multiple grantee experts, scholars, and policymakers—a forum bringing together leading worldwide thinkers and opinions. 

Education features an interactive, multimedia presentation (we call it a Fable) on STEM education—showcasing our historical work on math and science education, including Carnegie Commission reports that set the framework for today’s Next Generation Science Standards, and visual case studies of grantees like Chicago’s Museum of Science and Industry.

Democracy’s Fable takes an extensive look at the 50th anniversary of the Voting Rights Act. Plus, at a time when nearly one in four Americans is not registered to vote, we wanted to convene communities and engage the public with our grantees’ work.

4-600px“Your Vote—Your Voice” showcases tiles of leaders of the New Americans Campaign weighing in on why it's important for recently naturalized citizens to vote. 

Good digital strategy also employs community, in the form of partnerships. We’re pleased to have worked with TINT to convene live social media compilations, including the feeds of more than 40 partners of National Voter Registration Day. And, a Genius version of the Voting Rights Act allows for annotations by experts at the Brennan Center for Justice and others.

Finally, we at the Corporation are, first and foremost, stewards of Andrew Carnegie’s legacy. Nearly 10 percent of visitors to our old site came for biographical information about him. To meet their needs more fully and to meet our mission, our Andrew Carnegie Fable includes embeddable elements key for students preparing multimedia presentations, with timelines, quotations, audio and film of Carnegie, infographics on his wealth, and connections to our family of 26 Carnegie institutions worldwide.

This is just the beginning. We’ll soon unveil features allowing program officers to share their experiences, video forums, and more.  It all comes down to glass pockets—using information and the presentation of information to openly share how we meet our mission responsibilities of serving as convener and champion of expert knowledge and change-making grantees. Carnegie.org aims to clearly present our intent, our priorities, and our work, and most of all to be a living—and evolving—expression of our mission to advance and diffuse knowledge and understanding.

--Deanna Lee

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

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