Transparency Talk

Category: "Promising Practices" (54 posts)

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

Building Communities of Practice in Crop Research
November 22, 2016

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

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

Testing a New Model

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

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

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

 

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

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

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

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


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

--Jane Maland Cady

The Foundation Transparency Challenge
November 2, 2016

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

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

Trans challenge_twitter1-01

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

Transparency Comfort Zone

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

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

Transparency Pain Points

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

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

What’s In It for Me?

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

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

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

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

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

#GlasspocketsChallenge

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

--Janet Camarena

 

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

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

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

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

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

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

-- Melissa Moy

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

(Melissa Moy is special projects associate for Glasspockets.)

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

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

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

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

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

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

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

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

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

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

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

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

--Melissa Moy

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

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

Janet Camarena

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

Do Ants Know Something Foundations Don’t?

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

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

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

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

Moving Toward a Collective Brain Trust

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

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

The Path to Open Knowledge

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

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

IssueLab breaks it down into the following practices:

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

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

How Can We Know What Others Know?

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

New features include:

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

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

--Janet Camarena

Innovation Trends: The Influence of Transparency Across Multiple Sectors
February 25, 2016

(Melissa Moy is special projects associate for Glasspockets.)

A thoughtful and recently released report from Weber Shandwick –“Innovation Trends: Always-On Transparency” – investigates how transparency and openness can be implemented into organizations across corporate, social and public sectors.

Leader voices include Howard Schulz, Starbucks Chairman and CEO; Paul Polman, Unilever CEO; Jean Case, Case Foundation CEO; and Brad Smith, Foundation Center CEO.

AO_social_TC-1 and 3
Rather than view transparency and openness as an administrative burden, leaders among corporations, foundations, nonprofits and government share the realization that working in a more open way can accelerate effectiveness in unexpected ways. 

One organization is embracing failure and encouraging others to be open about what is not working.  As part of its “Be Fearless Campaign,” Case Foundation shares lessons learned on its website.  The foundation encourages organizations to “fail forward” and work through challenges by solving the right problem, being a collaborator and leading through uncertainty, and remaining humble to acknowledge learning opportunities and feedback. 

Transparency and openness can accelerate effectiveness in unexpected ways.

For “a clear theory of change” and transparency across nonprofits and foundations, Case advised that organizations must disclose legal status and financial accountability as well as evaluate effectiveness using rigorous social and environmental metrics.

At Foundation Center, Smith suggests foundations can take three critical actions to foster openness and partnership: innovate together, listen more and share early and often.  Foundations have the unique opportunity as funders and experts to “set the tone for collaboration among their grantees” and incorporate their perspectives into program design, measurement and evaluation.

The report summarizes what transparency looks like across sectors:

  • Corporate: Lead and engage audiences to create shared value
  • Social: Live and foster a culture of shared accountability and impact
  • Public: Empower an informed and active populace

The report also summarizes common roadblocks to transparency across sectors.   According to the report, a lack of understanding of where to begin and how to move forward are the most common barriers to transparency.

To help address these barriers, the report offers an insightful five-step roadmap that provides concrete steps, or “a starting point for organizations across sectors to align their practices with best-in-class transparency efforts.”

Roadmap highlights:

  1. Integrate – Embed transparency and accountability throughout the organizational culture
  2. Listen – Create feedback loops to invite internal and external stakeholder perspectives
  3. Measure – Align indicators and analytics processes to continuously track outcomes and impact
  4. Learn – Surface examples of challenges and successes to document what works and fix what doesn’t
  5. Lead – Curate a rich multi-channel dialogue about progress and impact to share the transparency journey with key stakeholders.

Another helpful feature is a template that details how to visualize and act on concrete next steps.  The graph points to four key areas: research and reporting; thought leadership; storytelling and campaigns; and events and convenings.

For example, the firm advises how leaders should act in the area of thought leadership. 

  • With employees: “Empower employees to contribute to thought leadership with their own perspectives and impact examples.”
  • With consumers: “Position thought leadership as the authentic voice of the organization, leveraging diverse spokespeople.”
  • With shareholders and boards: “Leverage board member and shareholder expertise and perspectives to inform thought leadership and help co-create op-eds and think pieces.”

The leader lessons and transparency plan provide a unique framework and may help remove some of the guess work and uncertainty out of what organizations should explore and where change can occur.

How can your organization “fail forward” and cultivate a culture of transparency, openness and dialogue?  Where can you start today?

--Melissa Moy

The Need - and Appetite for - Enhanced Foundation Transparency
December 28, 2015

(The late Rick Cohen was the National Correspondent for Nonprofit Quarterly (NPQ) and the editor of NPQ's Cohen Report. Prior to joining NPQ, Rick was executive director of the National Committee for Responsive Philanthropy, vice president of the Local Initiatives Support Corporation, and vice president of the Enterprise Foundation. A version of this 2012 blog appeared in NPQ.)

Editor's Note: As the year draws to a close, it is natural to remember and reflect on those whom we have lost.  Last month, philanthropy lost one of its strongest voices for change with the passing of Rick Cohen. A prolific writer, Cohen was known for encouraging philanthropy to extend its reach to marginalized and underserved communities. Seeing the weaknesses of a closed door culture, Cohen also frequently wrote and spoke about the need for greater foundation transparency and the potential for improving philanthropic practice by increasing stakeholder participation and influence. In honor of Cohen, Transparency Talk is closing out 2015 by revisiting a two-part post Cohen authored for Transparency Talk in 2012 on the case for enhanced foundation transparency, and his recommendations for improved transparency standards.

Photo_74078_landscape_650x433It is nearly impossible to think about transparency in the world of philanthropy without putting philanthropy into a societal context. Philanthropy is not a world unto itself, but one that is engaged in extensive interactions with other sectors of the economy and society, particularly important in an era of increasingly crippled institutions and practices of democracy in the U.S.

The political context concerns the flows of secret moneys into the electoral process, obviously an activity prohibited to private and public foundations, but one that increasingly shapes the perspectives of the American public toward nonprofits—and, if they knew what foundations were beyond the television portrayals of philanthropoids as white glove socialites—foundations too. Secret money is the lifeblood of American political campaigns, perhaps brought to a level of self-parody when comedian Stephen Colbert points out that Karl Rove is giving anonymous political money to help keep political giving anonymous. The calls for breaking through the wall of secrecy in political spending are increasing, notably in the District and Appeals Court decisions in Van Hollen v. Federal Election Commission

And so it is with foundations and the calls philanthropic leaders face for increased transparency. As Vikki Spruill, the new leader of the Council on Foundations, noted in what appears to be one of her first official communications to the Council’s membership, institutional philanthropy faces “its most critical moment…right now. At a time when our world faces a storm of converging challenges with dwindling resources, philanthropy’s positive impact remains a mystery to far too many…[W]e must seize the imperative to help society better understand philanthropy’s impact and contributions.”   

It is a frequent refrain from foundation leaders, the admonition that foundations have to do a better job at telling their story. But that isn’t transparency. At best, it is managed transparency, telling the story that foundations want public policy decision-makers, the general public, and their specific stakeholders to hear and understand. Transparency, however, is not managed through public relations firms. Can you imagine if the Federal Elections Commission were only to make available the information it thought would tell the story of its “positive impact?” For as miserable and partisanly hamstrung as the FEC is today, the story telling wouldn’t be worth the physical effort of a computer click on “download.”

Transparency empowers the users, the recipients of information, to hold powerful agencies of government, well-heeled donors to political campaigns, and institutions without direct levers of official accountability to the public somewhat more accountable. When you stage manage transparency, it simply isn’t. Of course that doesn’t mean simply opening the doors of foundations and inviting the public to rifle through file cabinets, but it does mean trying to find ways of making essential information more accessible and reviewable by outsiders. 

How Public Should Private Philanthropy Be?

In the foundation world, the debate du jour is how public private philanthropy is, that is, to what extent the tax exempt dollars of private foundations should be considered in some ways open to public scrutiny. It is an argument that ultimately boxes everyone into a corner. The philanthropic impulse occurs with a donor willing to put some of his or her excess capital to work for what is hoped to contribute to the public good. But in this nation, that occurs with the benefit of the charitable deduction, applicable to the small scale donations of this nation’s generous working people and to the much larger donations of affluent people who create foundations. 

OK, so the funds aren’t quite public dollars—aggrieved constituents cannot ask foundations for administrative redress, they cannot vote foundation trustees out of office, and in all but an incredibility limited number of cases do they even find themselves with standing to litigate a foundation’s grant decisions. And they aren’t quite fully private dollars, else they would be taxed and their managers wouldn’t be filing 990PFs, following IRC rules for executive compensation and self-dealing, or fretting whether President Obama’s annual call for capping itemized deductions including the charitable deduction will depress charitable giving and philanthropic grantmaking.

The Dichotomous Nature of Foundations

Even in their quasi-public identities, foundations have feet planted in two worlds or two cultures, one the private world of a donor, the other a public world of resources afforded a special status by the American public and its elected representatives. It shows in foundations’ postures toward transparency. 

In recent history, the advent of the 990 is one example. Commissions on the future shape and substance of philanthropy have all included encomiums of one sort or another in favor of increased transparency, but statements and actions can sometimes differ. Prior to enactment of the Taxpayer Bill, many foundation leaders were opposed to the liberalization of public access to 990s, and when the law was passed, foundation leaders attempted to find ways of divorcing 990PFs from the public access the law required to nonprofits’ 990s and then worked to delay the applicability of the law to foundations.    

In practice, a similar dichotomous identity occurs, best exemplified by the foundations’ crisis response to the California legislation that would have required a handful of large foundations to simply report on their grantmaking to nonprofits headed by people of color, not make more grants for communities of color, and report on their own staff and board demographics. Foundations fought the bill, known popularly as AB624, tooth and nail, though many of the same foundations are strong supporters of the racial disclosures required of banks in the Home Mortgage Disclosure Act, have supported nonprofits demanding similar disclosures of utility companies in front of the state’s Public Utilities Commission, and fought strenuously against California’s Proposition 54 initiative which would have generally banned the state from collecting race and ethnicity data. 

Another dimension of foundations’ split thinking on transparency is in their relationship with “stakeholders.” This is more than just a fancied up description of grant recipients whose opinions on how well they are treated by foundation program officers are now solicited de rigeur. Stakeholders are different than insiders such as donors, board members, and staff. The Denver Foundation describes “external stakeholders” as “people who are impacted by your work as clients/constituents, community partners, and others.” Lauren Tulp of the Gordon and Betty Moore Foundation suggested grantees, community residents, and external experts as potential stakeholders. In some foundation examples, stakeholders have been recruited to participate in foundation grantmaking processes, including the Bill and Melinda Gates Foundation and some of the health conversion foundations.

This is now common parlance in the foundation world. Stakeholders with a “vested interest” in the foundation’s work merit inclusion in efforts to assess what the foundation is and should be delivering for various communities with what impact. The concept of stakeholders is common in foundation circles—except when it comes to discussions of transparency, when the circle for inclusion becomes distinctly narrower. Foundations have to come to grips with whether the notion of stakeholders is real or simply a rhetorical device meant to convey a transitory sense of inclusivity.

--Rick Cohen

 

Eye On: Giving Pledger George Lucas
December 18, 2015

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

George Lucas PhotoThe Force may not necessarily guide George Lucas’s philanthropic interests but it certainly has helped fund and spur his efforts to elevate education, arts and film, and healthcare and human services.

Lucas has leveraged his wealth from the enormously popular Star Wars franchise – he directed, produced, and wrote the first three movies in the series – into a series of philanthropic investments, many of them focused on education. 

Star Wars: The Force Awakens, the seventh installment in the Star Wars saga, launches today.  Although Lucas only served as a creative consultant for the J.J. Abrams-helmed film, his fingerprints on the long-awaited blockbuster are evident and ticket sales for its opening weekend are likely to set records.

George Lucas:

  • Film director, writer, and producer
  • Best known for the Star Wars and Indiana Jones franchises
  • Founder of Lucasfilm, Industrial Light & Magic, and Pixar
  • Modesto, California native
  • Founded the George Lucas Family Foundation in 2005 ($1.1 billion in assets)
  • Personal net worth estimated at more than $5.3 billion

Building a Legacy

Over the decades, the epic intergalactic tales of clashing Jedi and Sith in “a galaxy far, far away” have achieved cult status and, thanks to a licensing and merchandising empire running the gamut from T-shirts, toys, and books to gaming and other collectibles, earned Lucas a devoted multi-generational  following – and a sizable fortune.

Lucas has used that fortune to support various organization and initiatives in the areas of education, art and culture, and civic and human services. He’s even building and endowing his own museum in Chicago, the Lucas Museum of Narrative Art, that will be dedicated to storytelling and the evolution of the moving image. 

At one point, Lucas had considered San Francisco’s Crissy Field, historically the “front door” of the Presidio (now Golden Gate National Recreation Area), as a museum site. Negotiations with the Presidio Trust broke down, and Lucas eventually decided to build the museum in Chicago, where his wife, Mellody Hobson, was born. 

 

“Our education system (is) little better than an assembly line, with producing diplomas as its only goal.”

Slated to open in 2018, the museum will be built on vacant lots between Soldier Field and McCormick Place, near the city’s famous lakefront Museum Campus (home to the Shedd Aquarium, Field Museum, and Adler Planetarium), and will house a portion of Lucas’s personal collection, which is valued at $1 billion.

Lucas, 71, amassed the bulk of his $5.3 billion fortune when he sold his film and television production company Lucasfilm to the Walt Disney Company in 2012 for a reported $4.05 billion.

The original home of the Star Wars franchise, the legendary company also produced the popular Indiana Jones franchise (on which Lucas partnered with his friend Steven Spielberg) and was where the acclaimed animated film studio Pixar, producer of mega-hits such as Toy Story, Finding Nemo, and Cars got its start as Graphix Group, a Lucasfilm computer division.

Early Life and Career

Lucas graduated in 1967 from the University of Southern California, where he often hung out with a young Stephen Spielberg, then a film student at nearby California State University, Long Beach.

After returning to USC as a graduate film student, Lucas had some early success with a short film and, in 1969, was one of the cameramen on Gimme Shelter, the award-winning Rolling Stones concert film by Albert and David Maysles. He then co-founded his own studio, American Zoetrope, in 1971 with up-and-coming filmmaker Frances Ford Coppola. His first feature film for the studio (an adaptation of his earlier short film) flopped, and eventually Lucas decided to go out on his own. In 1973, he founded Lucasfilm and directed American Graffiti (1973). Inspired by Lucas's teen years growing up in Modesto, California, the film featured a young Richard Dreyfus, Ron Howard, and Harrison Ford. The film received rave reviews and five Academy Award nominations, including Best Picture. 

Lucas’s subsequent projects would include Star Wars (1977), The Empire Strikes Back (1980) and Return of the Jedi (1983).  In the 1980s, he primarily served as a producer or executive producer on other people’s films, including Body Heat (1981), Labyrinth (1986), and the animated film The Land Before Time (1988). He then teamed up with Spielberg for the Indiana Jones trilogy, reuniting with Harrison Ford (who had starred as Han Solo in Star Wars and played the title role in the Indiana Jones movies). Although he didn't write the Star Wars prequel trilogy, Lucas returned to direct The Phantom Menace (1999), Attack of the Clones (2002), and Revenge of the Sith (2005).

Philanthropic Efforts – Prioritizing Education Reform

Although Lucas has been relatively quiet about what inspires his philanthropy, he has articulated why he selected education as his chief giving priority. After Lucas and Hobson were among the first people to sign on to Warren Buffett and Bill and Melinda Gates’ Giving Pledge campaign, Lucas, wrote in his Giving Pledge letter: “It’s scary to think of our education system as little better than an assembly line with producing diplomas as its only goal. Once I had the means to effect change in this arena, it became my passion to do so — to promote active, life-long learning.”

“We need to promote critical thinking and emotional intelligence,” he added. “We need to focus on building an education system that promotes different types of learning, different types of development, and different types of assessment. We have an opportunity and an obligation to prepare our children for the real world, for dealing with others in practical, project-based environments.”

Even before he became a Giving Pledger in 2010, the Modesto native had regularly given large gifts to his alma mater, the University of Southern California, including one of his largest gifts, $175 million, to support initiatives at the film school. In October, Variety reported that $10 million of that gift will be used to provide financial support to African American and Hispanic students at the USC School of Cinematic Arts.

Over the years, Lucas also launched half a dozen foundations, most of which are aimed at enhancing education via the development of innovative teaching models and the dissemination of best practices. The largest of these are the George Lucas Family Foundation and the George Lucas Educational Foundation (GLEF). 

GLEF works in conjunction with Lucas’ online think tank and operating foundation, Edutopia, to share and promote educational innovations, including cooperative and project learning; mentorship; parental involvement; and technological advances.  As an operating foundation, Edutopia runs its own programs and does not engage in grantmaking.

“Our goal has been to showcase bold successes and inspire others to further increase the appetite for education,” Lucas said of GLEF and Edutopia. “Our hope is that administrators, teachers, and parents will see the power of these collective efforts and join the fight for wider reforms.”  

“It became my passion…to promote active, life-long learning.”

According to 2013 tax returns, the George Lucas Foundation distributed nearly $18.6 million to 161 organizations in the United States, including nonprofits in California, New York, and Washington, D.C.  Although several of the recipients are based in Los Angeles, the majority are located in Northern California, primarily in the San Francisco Bay Area, where Lucas’s former companies are based.

The largest foundation gifts - $5.9 million, $2.8 million, two gifts of $2.1 million and $1.4 million - were all given to support USC’s Phase III expansion of the School of Cinematic Arts.  The foundation also awarded general support grants of $525,000 and $11,600 to GLEF; $250,000 to the Film Foundation – Los Angeles; $200,000 to the Film Foundation – New York; $100,000 to the Center for the Education of the Infant Deaf in Berkeley, California; and $25,000 to the Brady Center to Prevent Gun Violence in Washington, D.C.

Also in 2013, dozens of San Francisco-based education, arts and health and human services organizations received smaller grants and donations, ranging from $500 up to $25,000, including the San Francisco AIDS Fund/Breast Cancer Emergency Fund’s Trivia Night Fundraiser ($25,000) and the San Francisco Film Society ($25,000). 

In addition, the IRS returns reveal that the foundation has approved $135.5 million in future payments.  The largest portion of that, $100 million, will bolster the Bill & Melinda Gates Foundation’s support for the Global Polio Eradication Initiative. 

Other large future gifts include $25 million to the University of Chicago; $9 million to USC to endow three new faculty chairs in the cinematic arts; and $1 million to the Smithsonian Institution’s National Museum of African Art. 

Lucas’ smaller foundations: the AEL, JWL and KRL foundations (likely named for his oldest children) each distributed a modest $20,000.

What’s next for the brilliant filmmaker, entrepreneur, and philanthropist?  As Lucas himself puts it: “As humans, our greatest tool for survival is our ability to think and to adapt — as educators, storytellers, and communicators our responsibility is to continue to do so.”  

We look forward to the convergence of Lucas’s passion for storytelling and philanthropy, and we look forward to learning more about his expanding philanthropic interests.

--Melissa Moy

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About Transparency Talk

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

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