Transparency Talk

Category: "Sharing" (39 posts)

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

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

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

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

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

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

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

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

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

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

--Caroline Fiennes

An Insider’s Guide to Giving Day
November 28, 2016

(Mike Berkowitz and Daniel Kaufman are co-founders and principals at Third Plateau Social Impact Strategies. Whitney Caruso is a director at Third Plateau. They are the authors of the recent report, “Beyond the dollars: the long-term value of giving days for community foundations.”)

Mike Berkowitz
Mike Berkowitz

Giving days can be incredible tools for place-based foundations to catalyze nonprofit fundraising. We have witnessed this up close through monitoring and evaluating 49 giving day campaigns as part of the Knight Foundation’s Giving Day Initiative and through advising the Sacramento Region Community Foundation on its BIG Day of Giving. We are also the authors of Knight Foundation’s Giving Day Playbook, a how-to guide with resources and recommendations for giving day organizers. Based on our experiences, however, we have also seen that just hosting a giving day is no guarantee of community impact.

Here are three key tips for foundations in accelerating community impact with giving days and other community-wide online fundraising campaigns:

Caruso Headshot
Whitney Caruso

1. Become a data hub. The power of big data to improve programs and accelerate social impact is becoming increasingly apparent. Giving days enable communities to collect large amounts of data from participating nonprofits and donors, which they can utilize to inform programs and ideas to improve their communities. In Miami, the community foundation is creating a map of the nonprofits and donors that participated in Give Miami Day in 2015. Community foundation staff have said that this will give them a firm understanding of where nonprofits and donors come from and enable them to identify gaps in services and more strategically engage specific neighborhoods. Going a step further, technology expert Amy Webb, speaking at Knight Foundation’s 2016 Media Learning Seminar, argued that community foundations have the potential to use data not just to map current community needs, but to predict them.

Daniel
Daniel Kaufman

2. Build local nonprofit capacity. This kind of fundraising does not necessarily come naturally to all organizations. Trainings are a central component of giving day organizers’ responsibilities and provided community foundations a chance to teach nonprofits important new skills. To build the capacity of nonprofits for the giving days and beyond, community foundations ran trainings on topics such as online fundraising, communications and branding, major donor cultivation and donor retention.

The Sacramento Region Community Foundation had a sophisticated training series for its Big Day of Giving. The “Boot Camp” series included sessions on building a GivingEdge profile, maximizing social media, engaging nonprofit donors and boards, and developing an eight-week work plan for the campaign. Post-event surveys in 2015 found that these trainings paid off, as nonprofits whose representatives attended all four sessions of the series raised 100 percent more than those that did not.

3. Build awareness of broader foundation efforts. Giving days should not operate in a vacuum, and community foundations increasingly tied the campaigns to their other strategic initiatives. For example, the Community Foundation of Grand Forks used its giving day in 2014 as part of an existing effort to engage the community around two issues (homelessness and limited access to health care) and two opportunities (adventure and public arts).

4. Connect fund holders to the broader community. Community foundations found the giving days to be a useful and exciting opportunity to engage fund holders. Thirteen community foundations enabled DAFs to donate through their giving days, resulting in 592 DAFs donating $3,556,129 to participating nonprofits.

Giving days are not for every foundation, so if a giving day does not align with your foundation’s goals, you may be better off skipping it than trying to get in on the campaign just because everyone else is. But as with most things in life, the more experience you have with giving days, the better you will be at using them to your organization’s full advantage—particularly if you see them as learning opportunities and track donation and marketing data to help shape future efforts.

Good luck, and happy holidays!

--Mike Berkowitz, Whitney Caruso, and Daniel Kaufman 

Building Communities of Practice in Crop Research
November 22, 2016

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

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

Testing a New Model

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

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

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

 

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

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

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

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


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

--Jane Maland Cady

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

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

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

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

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

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

It feels wrong.

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

After all, why would we not share?

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

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

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

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

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

--Fay Twersky 

The Foundation Transparency Challenge
November 2, 2016

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

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

Trans challenge_twitter1-01

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

Transparency Comfort Zone

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

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

Transparency Pain Points

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

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

What’s In It for Me?

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

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

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

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

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

#GlasspocketsChallenge

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

--Janet Camarena

 

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

The Next Generation of Nonprofit Data Standards
May 2, 2016

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

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

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

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

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

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

Standard

Description

History

BRIDGE

A unique identifier for every nonprofit organization in the world.

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

Philanthropy Classification System

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

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

GuideStar Profile Standard

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

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

eGrant/hGrant

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

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

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

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

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

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

--Jacob Harold and Brad Smith

Size Doesn't Matter
March 28, 2016

(Molly Talbot-Metz is vice president of programs at the Mary Black Foundation.)

Molly Talbot-MetzWhat does the Mary Black Foundation, a small private foundation in Spartanburg, SC, have in common with some of the country's biggest and most well-known foundations like the Bill and Melinda Gates Foundation, the Robert Wood Johnson Foundation, the Ford Foundation, and W.K. Kellogg Foundation?

The Mary Black Foundation is pleased to announce that we have joined 19 other U.S. foundations that have each joined the "Reporting Commitment," an initiative managed by Foundation Center. The Reporting Commitment is intended to shed light on the flow of philanthropic dollars. Housed at Foundation Center's Glasspockets, the Reporting Commitment calls for foundations to make grant information available to each other and the public at least quarterly in a common reporting format that shares the kinds of grants we fund, including the amount, duration, and purpose.

Mary Black FoundationOur decision to participate in the Reporting Commitment is a reflection of our desire to be a transparent community partner. According to Merriam-Webster, to be transparent is to be "easy to notice or understand; honest and open; and not secretive." Having been in philanthropy for almost 15 years, I know that transparency is not a word many use to describe foundations. For most people, the work of philanthropy is a mystery. There is often confusion and uncertainty about how foundations work and what they fund. They are often disconnected and isolated from the communities they serve. Slowly, this may be changing.

The Mary Black Foundation strives to be transparent in all that we do, and our participation in the Reporting Commitment was a logical addition to our existing efforts to be open and transparent with our community partners, the nonprofit sector, other foundations, and the general public. Since its inception, the Mary Black Foundation has published its grants in an annual report in print or on our website. In 2014, we redesigned our website to more clearly communicate our grantmaking process and guidelines.

"Openness requires a culture of transparency."

Now, in addition to our annual report and listing of funded organizations, you will also find on the Foundation's website its bylaws, code of ethics, financial statements for the past five years, listing of staff and board members, strategic plan, and funding logic model. It is important to the Foundation's board and staff that we go above and beyond the required IRS disclosure of funded grants. This kind of openness is not difficult for foundations of any size, but it does require a culture of transparency. 

Our commitment to transparency goes beyond openly reporting our policies and procedures and the grants we fund. The Foundation strives to be actively involved in the community and to be equal partners in community initiatives. Our public commitment to partnership is one of the reasons we were selected to lead Spartanburg's involvement in a national competition to improve health outcomes in our community. We will ensure that lessons learned and changes in health outcomes are tracked and reported. In that way, our successes and challenges both can help others as they embark on similar efforts.

We hope other foundations - big and small - will see the importance of being more transparent and engaged in the communities they serve and make the Reporting Commitment pledge. By collectively being transparent about our work, we strengthen our credibility and increase public trust, improve grantee and community relationships, facilitate collaboration among each other and reduce duplication of efforts, and build a shared community of learning.

-- Molly Talbot-Metz

Transparency Chat: CEP On Sharing What Matters
March 2, 2016

CEP_Ellie-ButeauEllie Buteau, Ph.D., is the vice president of research at the Center for Effective Philanthropy (CEP), which received a grant from the Fund for Shared Insight (FSI). FSI is a multi-year collaborative effort among funders that pools financial and other resources to make grants to improve philanthropy. Transparency Talk is featuring grantees in the FSI openness portfolio. Janet Camarena, Foundation Center’s director of transparency, and Ms. Buteau discussed the findings of CEP's new report, "Sharing What Matters: Foundation Transparency."

Janet Camarena:  I'm going to start with what jumped out at me as surprising. The report lists time and inconsistencies across staff members as the most common barriers to greater foundation transparency.  Only 6% responded to your survey that a lack of commitment to transparency was a barrier and a full 24% responded that there was nothing specific that limited their foundation's transparency. Could this be because those surveyed are already predisposed to pushing the effectiveness envelope? Can you talk a little bit about the survey sample and how representative it might be? 

Ellie Buteau:  Yes, definitely. Response bias is always a top-of-mind question when we conduct a survey. The main bias we wondered about for this study was whether or not foundations that are already working on, and care about, transparency were more likely to respond. Unfortunately, we have no way of reliably measuring that. We did have data about a few other variables that were important to compare, including assets, giving, geographic location, etc. The main difference we saw was that foundations that have used one of CEP’s assessments (such as our Grantee Perception Report) in the past were more likely to respond to the survey. This is something we find in most of our survey samples. It doesn’t mean that foundations that haven’t used our assessments aren’t responding, but they are doing so at a lower rate. It could indicate, though, that foundations interested in gathering feedback on their performance were more likely to respond. We have more information about what we tested for response bias on page 45 of the report. 

JC:  I found it a little troubling that only 45% of CEOs of independent foundations view the general public as a relevant stakeholder group for their transparency efforts, yet the premise of philanthropy is that it is dedicated to serving the public good.  Did you also find this surprising? And any thoughts on the disconnect there?  

CEP_Foundation-Transparency_coverEB:  I did not find that surprising, and I’m not sure our data indicates that there is a disconnect between how foundations are thinking about certain aspects of transparency and serving the public good. If foundations are focused on being open with the nonprofits they fund and the nonprofits that may want funding from them in the future, that does seem like a pretty direct connection to serving the public good. After all, those are the organizations through which foundations are able to serve the public.

I think sometimes conversations about transparency suggest foundations should make sure they are sharing information with anyone and everyone. But that doesn’t seem like the most effective or efficient use of foundation resources. If people want to know what foundations are up to, most of the foundations of the size included in our study have websites or publicly available annual reports. Where I see real opportunity for foundations to do more is in sharing information about what does and doesn’t work in addressing the tough challenges they’re working to address. While that information itself may not be of interest to the general public, it can be applied in ways that benefit the general public.

JC:  Since the report points out that the philanthropy field is weak when it comes to sharing lessons learned and assessments of foundation performance, and since it also correlates stronger grantee-grantmaker relationships among foundations who have a tendency to be more transparent, will you be advocating that those who use your Grantee Perception Reports and other survey products share them?    Why or why not?

EB:  It’s up to foundations that use our Grantee Perception Report to decide whether to share their results publicly. Many, in fact, do, and almost all at least share a summary of what they learned. You can find on our website a list of those foundations that have made their GPRs public (scroll down on this page). I think it’s great when foundations are open in this way. But I don’t think that a foundation publicly sharing its GPR results is necessarily indicative of it doing more to respond to feedback or having strong relationships with its grantees.

JC:  Of the websites you examined, only 5% shared any information about lessons learned when things didn't go as planned.  Often this is because grantmakers fear harming the reputation of grantees or casting their work in a negative light.  Can you talk about how those grantmakers that were opening up this side of the work tackled that issue.

EB:  In the report, we share some examples of foundations being open about when things didn’t pan out as hoped. Those foundations do not name names of specific grantee organizations or tie results back to any individual organization. They seemed to share their lessons in a more general way, but still communicated enough specificity that others could learn from their experiences. I think their examples show that it’s possible to strike this balance.


JC:
 One of the struggles with the field and transparency is, of course, that there is no one-size-fits-all solution. However, once you start looking under the hood of foundation websites, patterns of emerging and best practices often surface.  Can you point to one or two transparency examples you uncovered that you wish others in the field would emulate?

EB:  Here is where we had a finding that did surprise me. I thought that perhaps the more information foundations shared on their websites, the more transparent they’d be seen to be by grantees. It turned out that was not borne out in the data. I think this is really important to consider: that the amount of information shared isn’t directly tied to perceptions of transparency. In my own experience, that makes sense. Sometimes, even when I know that a foundation has shared information about what it’s learned, I’ve had difficulty figuring out where to find that on a foundation’s website because there is so much other information on the site. I think what I’d suggest is that a focus be on how their websites can most effectively be used as a tool for sharing information that matters.  

 JC:  The last time CEP issued a report on transparency, it led to changes in the kinds of questions you include in your Grantee Perception Survey, which now includes questions specific to assessing perceptions about foundation transparency.  How will what you learned from this report impact your own work in the future? 

EB:  This research has given us a better understanding of how foundation CEOs, themselves, are thinking about transparency. It turns out there is a lot of agreement about what transparency means, so this research really validates the importance of the questions we added to our grantee survey a few years back. Transparency, especially about the substance of foundations’ work, is considered crucial by both grantees and foundation CEOs. Foundations and grantees are more aligned than they may realize when it comes to the information they think is important for foundations to share. Now it’s about foundations implementing — and really doing it well. Our research suggests they are doing well in some areas but not in others. We will build off of the findings in this study as we continue our research on other related topics. For example, we recently fielded a survey on evaluation practices at foundations, in partnership with the Center for Evaluation Innovation, and are seeing findings in that study that further build upon what we published in this report.

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

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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."

    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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