Transparency Talk

Category: "Tips & Tricks" (29 posts)

The Foundation Transparency Challenge
November 2, 2016

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

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

Trans challenge_twitter1-01

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

Transparency Comfort Zone

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

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

Transparency Pain Points

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

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

What’s In It for Me?

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

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

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

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

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

#GlasspocketsChallenge

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

--Janet Camarena

 

Free Webinar: What Story Does Your 990 Tell About Your Foundation?
September 22, 2016

What does your foundation’s 990 say about the organization? 

Now that the IRS has started releasing e-filed Forms 990 and 990-PF as machine-readable, open data is available to the public. While this move will spur transparency and openness in the philanthropy field, foundation leaders may be uncertain of how open data and potential public scrutiny of philanthropy may impact foundation programs, staffing and investment management. 

Glasspockets recently partnered with the Communications Network to offer an insightful webinar on the Form 990’s potential risks and vulnerabilities, as well as how to use Form 990 to share the work of your organization. 

The webinar highlights the types of information included on the 990-PF, how the 990-PF data is being used now and in the future, and recommendations on how to communicate your foundation’s work through the 990-PF.

Check out this great webinar!

Flooding the Locks: Philanthropy’s Knowledge Conduits
August 3, 2016

 Panama Canal Authority Photo 3

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

Adriana ImageThe Panama Canal expansion project opened last June following several delays and controversies. It was a risky bet with promising outcomes.

While the expansion aimed to improve global trade by doubling the canal’s capacity, it now runs the risk of failure from faulty design. The project was wrought with conflicts of interest, imprecise data, and dubious processes; its stakeholders consider critiques of the canal “unpatriotic,” reluctant to learn from mistakes.

Uniquely positioned to embrace risk, foundations should tread outside their comfort zone to achieve large-scale, systemic change; but they should also learn from the Panama Canal’s massive gamble. When making big bets, transparency, data-informed decisions, accountability, and clarity of process lead to better outcomes. “Success” means having honest conversations about what’s working and what’s not, rather than aiming for perfection.

As foundations move to take on more risk — including increased knowledge-sharing and openness, advocacy funding, financial risk, and impact investing — they will need to operate with greater transparency and accountability. Their staffing functions will evolve to support them in this process. The field of grants management is already shifting in this direction. At many organizations, grants managers are pushing for increased innovation, transparency, collaboration, and improved systems that will lead to more impact.

“Uniquely positioned to embrace risk, foundations should tread outside their comfort zone to achieve large-scale, systemic change.”

From Data Processing to Knowledge Management

Grants management is changing from a process and compliance role to one that focuses on data analysis, information sharing, and knowledge management. According to the 2016 Grants Managers Network Salary & Jobs Survey, grants managers now spend approximately 25% of their time on functions of information/knowledge, evaluation, and strategy (with an additional 14% on data management), and only 10% on compliance and 11% on administrative support.

This evolution has occurred naturally as grants managers work with larger amounts of data, fueled by increasingly powerful technological platforms and processing power. Within this change, we are moving up the ladder on the Data, Information, Knowledge and Wisdom Pyramid from merely processing data, to helping foundations analyze it and convert it into valuable, meaningful information and knowledge. As grants managers, we now play a key role in strategy by facilitating smarter, data-informed grantmaking.

GMNsalarysurveycover-768x994Like the locks of a canal, grants managers ensure that the right data flows out of our organizations at the right time. We are on the frontlines of providing data and information for external surveys; 990 tax returns; mapping tools; annual reports; foundation websites and searchable public databases; etc. We may also participate in collaborative efforts such as the Foundation Center’s e-Reporting and hGrant, or help implement the principles of IssueLab’s Open Knowlege (for example, by appropriately coding and tagging data, and linking our grants management systems with open repositories for knowledge-sharing, analysis and learning; or by adding open-licensing requirements to our grant contracts). The data and information we deliver allows foundations to deepen impact through collaboration with the field.

Supporting Instinct: Data-Driven Grantmaking Policies

Grants managers can also help foundations set internal policies and procedures that are driven by data, not just habit or inertia. For example, statistics showing a low percentage of grants to new organizations might trigger a change in a funder’s letter of inquiry process to promote more openness through Requests for Proposals (RFPs). Other data might be used to assuage fear of change or generate internal buy-in at the board and/or staff levels. In many cases such data supports — not contradicts — staff and boards’ instinct for change, and leads to increased openness and trust by demonstrating that policy decisions are not arbitrary.

“‘Success’ means having honest conversations about what’s working and what’s not, rather than aiming for perfection.”

At the Surdna Foundation, three years of grantmaking data were used to show that transitioning a portion of the grants approval process from quarterly board approvals to monthly delegated grant approvals would streamline operations, liberate time for “bigger-picture” learning, and benefit grantees by eliminating five weeks from the proposal review process.

In 2014, The William and Flora Hewlett Foundation internally reviewed ten years of grantmaking data and discovered a drop in the average duration of its overall grants. To offset this trend, the Foundation’s grants management team used this data point to advocate with their board for the creation of a “Duration Fund” that would renew Hewlett’s commitment to multi-year support, reduce grantee uncertainty, and lessen administrative burdens. Likewise, statistics showing a lower-than-expected percentage of general operating support grants triggered a conversation around increasing unrestricted support --- when used appropriately to advance strategy --- in accordance with the Foundation’s values. Since embarking on its initial ten-year review, Hewlett’s grants management team has been spearheading the assessment of its grantmaking data each year to identify areas for foundation-wide policy improvements.

Tracking Diversity Data

Grants managers are playing a key role in the movement to increase transparency around diversity in philanthropy. By collecting demographic data (including race, ethnicity and gender) about the staff and board composition of their grantees, foundations can hold themselves accountable to values of diversity, equity and inclusion in their grantmaking portfolios, and make progress towards mission and goals.

Trends tweetC 1024x512Many grants managers are leading the process of collecting, structuring, and sharing this aggregate data (often based on D5 Coalition principles) with organizations such as GuideStar and Foundation Center, bringing greater transparency and understanding of diversity in foundation giving. Diversity data can also help funders track how organizations and fields evolve over time, and contribute to the broader body of public information about trends among nonprofits.   

Glasspockets includes Diversity Policies and Diversity Data indicators in its Transparency Trends tool. According to these indicators, 46% of participating foundations make their diversity policies publically available, and 7% share information on the demographics of their own staff and boards (The James Irvine Foundation, for instance, includes this information as an infographic on its annual report).

Legal and Financial Compliance: Pushing the Boundaries of Risk

Transitioning to a more strategic, knowledge management-based role has helped grants managers keep sight of the end goal of their compliance functions, i.e., to create greater impact. Contrary to the perception of compliance as a “risk-averse” function, many grants managers are using the due diligence process to maximize their foundations’ boldest efforts, pushing for greater risk-taking and transparency. In this context, our role is to assess, communicate, and document risk --- not avoid it --- to help foundations make informed decisions about potential rewards and trade-offs.  This shift has occurred as grants managers are increasingly included in strategic conversations “upstream” with program staff and senior leadership.

Advocacy funding is one example. Due to common fears and misconceptions around 501(c)3 lobbying limitations (and certain funders’ hesitation to support these expenses), grantseekers sometimes conceal activities linked to the dreaded “L” word in their proposals.  Foundations should encourage the opposite. With a nuanced understanding of the rules of nonprofit lobbying and advocacy funding, grants managers can foster honesty and openness with applicants about their proposed activities, clarify legal limitations, and encourage lobbying where appropriate as a critical tool towards achieving positive systemic change.

Throughout the due diligence process, grants managers can also advise grantees and program staff on financial issues, and lead constructive discussions with grantseekers to build trust and set expectations from the onset.

Rather than reducing organizations to a set of ratios or denying funding based on numbers, we can advise on alternate ways to structure a grant to provide greater impact (such as providing a capacity-building grant or using a fiscal sponsor). Many of these scenarios require creativity and flexibility to make the grant viable despite all obstacles; some funding may also be riskier in nature (such as exercising expenditure responsibility in countries opposed to civil society, or supporting new entities with no financial track record), but nonetheless more effective.

CEP-Investing-and-Social-ImpactImpact Investments: The Riskiest Bet

The move toward impact investments has arguably been one of philanthropy’s biggest bets as foundations struggle to maintain the balance between purpose and perpetuity (or timely spend-down). According to the Center for Effective Philanthropy’s 2015 Investing and Social Impact report, 41% of foundations now engage in impact investing (including Mission-Related Investments and Program-Related Investments), and another 6% plan to do so in the future. This shift has substantial implications for the staffing of foundations, and some are tapping into the skills of grants management to fill the gaps.

In particular, grants managers are playing a key role in the due diligence process for Program-Related Investments (PRIs), transferring our knowledge and skills from the financial compliance processes. We are also building out systems to track and monitor loan repayments and reporting. Through these functions we act as a bridge between finance and programs, contributing towards organizational learning and mission.

As a leader in the impact investment space, the Kresge Foundation was the first to develop a PRI module in Fluxx (now available to all Fluxx users) to better capture the nuances and complexities of PRIs.  The build out was led by the Foundation’s Program Operations and Information Management department (formerly known as its grants management department, but recently renamed to reflect the totality of its strategic functions).

Transferring PRIs into Kresge’s grants management system has made the Foundation’s processes more transparent, says Marcus McGrew, Director of Program Operations and Information Management: “All of the Foundation’s work that lived in people’s heads has now been consolidated into one data management platform.”

Transparency of PRIs and other impact investments will become increasingly critical as 990 tax returns are now available as machine-readable, open data, and as the line between endowment and program strategies continues to blur.

Like the philanthropic sector, success of the Panama Canal will depend on leaders’ humility and willingness to learn from failure. This will require implementing best practices to ensure the locks flow as intended. If transparency and accountability matter for the world’s greatest engineering feat, they matter for philanthropy.

--Adriana Jimenez

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

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

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

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

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

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

-- Melissa Moy

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

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

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

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

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

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

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

1) Working more collaboratively with grantees.

2) Collaborating and learning within the foundation.

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

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

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

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


1)  Working more collaboratively with grantees.

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

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

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

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

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

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

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

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

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

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

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


2)  Collaborating and learning within the foundation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fortunately, technology can capture such stopgaps.

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

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

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

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

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

--Adriana Jimenez

An Interactive Timeline to Mark Our 75th Birthday? Piece of Cake
March 23, 2016

(Sally Crowley is the communications director for The John R. Oishei Foundation.)

Sally Crowley Head shotOur 75th anniversary had been looming over us here at The John R. Oishei Foundation for about a year. We knew it was coming, and had brainstormed ways to mark it memorably and cost-effectively. It presented us with an excellent opportunity to build more awareness for our Foundation and its long history of supporting the community.

By mid-2015, we had developed a year-long communications plan to create an ongoing “buzz” about turning 75 in 2016. The plan focused on “75 Years of Giving” and included some “usual suspects” such as a kick-off reception, banners, signage, etc.

Probably the most interesting element of our anniversary plan is the interactive timeline that we created for our website’s homepage. We wanted to compile interesting facts to help the media write about us and to arm our board and staff members with key talking points.

We also wanted to acknowledge and honor the people who helped build the Foundation over time. And, we wanted to be “cutting edge” with our tactics to help enhance our image as a leader in digital communications in our region. Rather than starting from scratch, we searched for an existing timeline “widget” that could be integrated into our site somewhat easily.

We found one used by TIME Magazine to tell the life story of Nelson Mandela. We figured, “hey, if it’s good enough for TIME Magazine, it’s probably good enough for us.”

“TimelineJS” is an open-source tool offered by Northwestern University’s KnightLab that allows the “average Joe” (or “Jo” in this case) to create visually rich, interactive timelines. In theory, beginners (like me) can generate a timeline using nothing more than Google Sheets.

In order to use the tool, we had to have a Google account (which we did.) Our IT vendor got us started by placing KnightLab’s Google Sheets template into our Google Drive and setting up a folder for use as an image repository. Once these were in place, all we needed to do was type in dates, headlines and copy for each timeline entry. It was as easy as filling out an Excel spreadsheet. We then uploaded corresponding images to the repository. Happily, this was just a click-and-drag motion. We added the link from each photo into the matching record on the spreadsheet.

To be very frank, the process was a little more difficult and time consuming than I thought it would be. I needed our IT vendor to set things up for me – that was beyond my technical capabilities. Then, they also needed to “take the generated Javascript code provided on the Knightlab website, and arrange the code nicely in our website.” They, in fact, had to help me write that last sentence describing exactly what they did at the end. It seemed like magic to me. I told them, “I have completed the Google Sheet” and two days later, the timeline was up and functioning.

The most time-consuming part was gathering key milestones from our Foundation’s 75-year history. We scoured microfilm at the library. We rifled through boxes of old memorabilia, pulling out relevant newspaper clippings and scanning them -- being careful not to handle them too much for fear of their complete disintegration. We went through our electronic files to pull snippets from media releases, photos of key happenings, etc. The result, SO FAR, is over 100 timeline entries, and the rescue of significant artifacts of our Foundation’s past from the dustbin of history.

One of the coolest characteristics of the timeline is that it is dynamic. I can keep adding things as I have time. And, we can get input from the community. For example, we promoted the timeline on social media, asking folks to try it out and to let us know if we missed anything important. (I knew we’d missed something, since I have not been at the Foundation for 75 years and am, unfortunately, not omnipotent.) Sure enough, I heard back from a staff member -- I forgot the promotion of a colleague. So, I found a photo, uploaded it into Google Drive, went into the Google spreadsheet and added the date and headline. In 5 minutes, the entry was live.

Overall, I’d say the effort was very worthwhile. Feedback has been extremely positive. And, I have to admit: it’s better than I could have imaged.

Take a look. Let us know your thoughts on it and/or share your experiences with anniversary communications and/or interactive timelines!

--Sally Crowley

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

A Case for Better (Self-Imposed) Transparency Standards for Foundations
December 29, 2015

(Rick Cohen is 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 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_650x433Rather than simply arguing for more or less transparency, a better strategy is to consider the public purposes that might be served by better, proactive standards of disclosure. I suggest the following: 

  1. A better story: Spruill’s charge to the sector is still the ultimate reason, to explain what organized philanthropy is and does, but it is so much more credible when it emerges from the analysis of independent analysts and the public. The glossy annual reports whose cost of writing, design, and printing exceeds many nonprofits’ budgets are not persuasive. They look more and more like corporate advertisements. If philanthropy has a strong story to tell, it should be one that can be told by independent observers examining the data.
  2. Civic engagement: Foundations themselves are relatively unified, regardless of their political leanings, in favor of increased civic engagement, not just in the public arena of government, but in the engagement with communities, in the overall pursuit of community and societal betterment. If foundations are part of a sectoral commitment for advancing the public good, one means is to make more foundation information available, to make citizens and policy makers better “consumers” of foundation products, just as foundations want to help citizens be better consumers and participants in the processes of government and business. 
  3. Foundations in public policy: Increasingly, foundations have been moving into the public policy arena, not simply through their grantmaking, but their direct participation. Foundations partner with government at various levels, notably a recent spate of foundation engagements with the federal government in programs such as the Social Innovation Fund at the Corporation for National and Community Service and the “Race to the Top” in the Department of Education. In some cities, notably Detroit, where local government has taken a turn toward the dysfunctional, foundations are developing and running programs that in some ways are taking the place of the public sector. As foundations become direct players in the public arena, not simply supporting nonprofits to do so, foundations should be increasing the transparency the public needs about their operations.
  4. Increased accountability: At this time, there is a parallel debate going on about increasing the transparency of government data. Virginia Senator Mark Warner has introduced the DATA Act which would create standardized formats for reporting and publication of government spending data. The Act, as the Sunlight Foundation commented, “could help eliminate much government waste, fraud, and abuse, and make spending oversight much easier.” Better, expanded, standardized data makes oversight easier, it’s that logical.  But so much of the data reported in 990s is not particularly standardized and, when it comes to data on foundation investments, virtually uninterpretable.  That isn’t a reason to drop the data requirement.  It is to improve the reporting and formatting of data so that the public—and oversight agencies—can figure out what it contains. 
  5. Abuse of 501(c) confidentiality:  The nation faces an explosion of organizations—and money—seeking the 501(c) confidentiality for the only purpose of keeping the identities of the players pulling the levers of the political system secret.  Television commentator Dylan Ratigan suggests that “our political system has become an auction in which the highest bidder wins,” but the identities of the bidders are increasingly under wraps.  In other arenas, public agencies such as municipal governments and state universities are creating affiliated nonprofits and foundations with a purpose of reducing or removing a slice of their operations from public scrutiny and oversight.  If this nation is going to pursue greater freedom of information, we will, as Senator Warner suggests, need to have better mechanisms with which to “follow the money.” ( We have to better follow foundation moneys, too. 

Let’s face it that there is no discernible Congressional appetite for playing with the laws and regulations facing foundations right now.  Since foundations are overseen by the Internal Revenue Service—and in some measure by a number of states that have provided at least a semblance of staffing and support for charity oversight functions usually in their AG offices, though state attention only sporadically ever nears private foundations—not much is going to happen. 

If there is more money for the Internal Revenue Service, it is logically going to go to expanding its capacity for dealing with its new responsibilities under the Patient Protection and Affordable Care Act, not for oversight and enforcement activities regarding charities.  In general, there’s no money to be made by the IRS for chasing nonprofits and foundations, and like a sports agent looking for a contract, the IRS wants to be shown the money that it can generate through stepped up enforcement. 

Moreover, the IRS is not generally among the more popular of federal agencies.  The outcry against Maine Governor Paul LePage’s denunciation of the IRS as new Gestapo caused him to apologize to Jews, but not to IRS agents who might have been offended, and few in Congress stepped to the plate to defend the IRS.  Ways and Means Committee hearings into IRS operations have been held,  prompted in part by the complaints of Tea Party groups believing that their applications for 501(c)(4) social welfare status were being subjected to politically motivated IRS reviews. 

--Rick Cohen

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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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