Transparency Talk

Category: "Transparency Tips" (136 posts)

It’s Not You, It’s Me: Breaking Up With Your Organization’s Inequitable Funding Practices
March 21, 2018

Erika Grace “E.G.” Nelson is a Community Health and Health Equity Program Manager at the Center for Prevention at Blue Cross and Blue Shield of Minnesota. E.G. recently led the Center through an equity scan of its Request for Proposal (RFP) policies and procedures.

Erika Nelson photo“It’s not you; it’s me” is possibly the most cliché break-up excuse, but for many funders, it really is their own policies and procedures that undermine their ability to find community soulmates. Perhaps you have had conversations with community members who have said that they found out about your funding opportunity too late, were too busy to apply, or, worse yet, were rejected even though their project sounds like a great fit based on the conversation you are currently having with them. The reality is that funders typically enact policies that are convenient for themselves, as opposed to what makes sense for grantseekers, and diversity, equity, and inclusion (DEI) fall by the wayside of expediency. As a result, organizations with the most social and fiscal capital have the best shot at receiving awards.

Have you ever taken the time to think about how your funding portfolio might look differently if your RFP process was designed to be more equitable and inclusive? We recently completed an equity scan, and here is a bit about how this reflection has led to changes in our RFP process.

“Funders typically enact policies that are convenient for themselves, as opposed to what makes sense for grantseekers.”

At the Center for Prevention, our goal is to improve the health of all Minnesotans by tackling the leading causes of preventable disease and death – commercial tobacco use, physical inactivity, and unhealthy eating. While Minnesota has one of the best overall health rankings in the nation, we see huge gaps in health outcomes when considering factors such as race, income, and area of residence.

We also know that communities are aware of what they need to be healthy, but organizations established by and for marginalized communities tend to face greater barriers than well-resourced, mainstream organizations in getting what they need. We wanted to remove as many barriers from our application process as possible so that we could find and support more community-based and culturally-tailored approaches to addressing health needs. To begin identifying these barriers, our team reflected on challenges identified by communities we work with and walked through our application process from beginning to end using an equity lens. As a result, we have implemented several systemic changes to move towards our vision of a truly equitable process.

Bringing the Funding Opportunities to the Community

BCBS_Center_Prevention_vert_blueWe began our journey by thinking about funding opportunities. Before an organization can even apply for funding, it needs to know that an opportunity exists. Through community conversations, we learned that many organizations were unfamiliar with our resources and work. We recommended that project teams develop a tailored outreach plan for each funding opportunity, with specific outreach to organizations or sectors we considered to be key stakeholders or who had been markedly absent in previous rounds. Moving forward, we also have a goal of literally meeting folks where they are at – town halls, cultural events, on social media – to share our work and funding opportunities.

As a result, here are some ways we shifted how we engage with community organizations through our RFP process:

  • Time. Once applicants find out about an opportunity, they need to apply, which takes some time. We learned that some potential applicants prioritized other opportunities because they didn’t have the staff capacity to apply for multiple opportunities concurrently. The easiest solution to this problem was to give applicants more time, so we extended our open application period. In our case, we went from no set minimum to at least six weeks.
  • Assistance. We also wanted to make sure that applicants could make informed decisions about how to prioritize staff time, so we opened up new channels for discussing funding opportunities. We made sure that every application had a designated point person for answering questions from the public, and even piloted some creative ways to interact with the community in advance of the submitted application, such as an “office hours” hotline where anyone could call in and ask questions. The number of inquiries was manageable and allowed applicants to receive guidance on whether their projects were a good match before they invested time in applying. Follow-up survey data showed that this strategy paid off because applicants reported that they understood our funding objectives and that the time they invested in applying was appropriate for the potential award.
  • Accessibility. We are also working towards using more accessible language to articulate the merits of a viable proposal. We now run a readability test on all RFP language before publication, with the goal of using language that is no higher than an eighth grade reading level. Such tests have helped us remove jargon, and improve comprehension by professionals outside of public health as well as by non-native English speakers.

Leveling the Playing Field of Community Relationships

Our team also considered the role relationships play in evaluating proposals. We approached equity from two angles. We set limits on which and when “outside information”— knowledge we have about a project that didn’t come from the application—can be shared during proposal review. We also started reaching out to new applicants to discuss their work more deeply. Our familiarity with mainstream organizations and those we have previously funded can influence how we evaluate an application, and in some cases lead to an unfair advantage for groups that already have many advantages.  So these limits on “outside information” were put in place to level the playing field, as well as to begin to strengthen relationships with organizations that were new to us. These conversations helped us to fill in gaps in our understanding that we may unconsciously fill in for organizations we are already familiar with.

“We now run a readability test on all RFP language before publication…to remove jargon, and improve comprehension.”

Transparent Evaluation Processes

We felt transparency in our decision-making process could only improve the quality of proposals. One way we have done this is by making scoring rubrics available to applicants. We also began providing tailored feedback to each declined applicant on how the proposal could have been stronger in hopes that it will improve future submissions. Though we have yet to determine what impact this will have in the future, we can say that applicants have been appreciative and found this feedback to be useful.

Hope and More Work to Be Done

While we don’t yet have much data to analyze post-implementation, we have noticed a few positive outcomes. We have seen a great increase in applications from greater Minnesota in particular, demonstrating that our targeted outreach is increasingly effective. Our funding awards to projects by and for people of color have also doubled in one of two opportunities we have analyzed since implementation. Despite this progress, we continue to wrestle with how to develop scoring tools that better reflect our values. 

The above are just some examples of how we have begun to identify and address equity barriers in our process that may be helpful for others. If your foundation is considering something similar, here are some things we learned from our experience that may be helpful for you.

  • Leadership & Promising Practices. As with any new process implementation, support from leadership is critical. If you are met with resistance, keep in mind that funders typically want to emulate best and promising practices in philanthropy, and sharing what other funders are doing around diversity, equity, and inclusion can be highly motivating.
  • Checks & Balances. It is also important to keep in mind that old habits die hard. It is not necessarily because team members are resistant to change, but simply need to get into the routine of doing things differently. For that reason, be sure that you build in checks and balances along the way to ensure that all who touch your RFP process have the opportunity to identify pain points along the way while also upholding equity commitments.
  • No One Size Fits All. Keep in mind that there is not one model that will work for everyone, and much in the same way, not all the communities you serve will be pleased with the changes you make. So, keep asking for and responding to feedback from community and know that correcting mistakes is part of improvement and part of ensuring our processes continue to be ones that facilitate, rather than undermine, diversity, equity, and inclusion.

--Erika Grace “E.G.” Nelson

New on Glasspockets: Open Knowledge Feature Added to Glasspockets Profiles
March 19, 2018

Janet Camarena is director of foundation transparency iniatives at Foundation Center

Janet Camarena photoWho has glass pockets when it comes to knowledge? Answering this question using our Glasspockets profiles just became a lot easier, thanks to a new feature we’ve added to emphasize the importance of creating a culture of shared learning in philanthropy. Beginning today, Glasspockets profiles are featuring a tie-in with our ongoing #OpenForGood campaign, designed to encourage open knowledge sharing by foundations.

All Glasspockets profiles now have a dedicated space to feature the knowledge that each foundation has contributed to IssueLab, which is a free, open repository that currently provides searchable access to nearly 24,000 knowledge documents. Currently, 67 of the 93 profiles on Glasspockets showcase recently shared reports on IssueLab.

"Sharing your knowledge via open repositories is openness that is good for you and good for the field."

This window on shared knowledge is a dynamic feed generated from our IssueLab database, so if you have published evaluations or other publications to share that are not showing up in your profile, simply go to IssueLab to upload these documents, or contact our Glasspockets team for assistance. And if your foundation invested specifically in monitoring and evaluating results, you can share those evaluations in our new IssueLab: Results. To acknowledge your efforts for sharing your recent evaluations, your foundation will receive an #OpenforGood badge to display on your website and on your Glasspockets profile to signal your commitment to creating a community of shared learning.

Though not a formal part of the transparency assessment, the #OpenForGood feature makes profile users aware of the kinds of learning that are available from participating foundations. Besides linking to the two most recent reports, a shortcut is also provided linking the user to a landing page of all of that foundation’s available knowledge documents.

OFG Everyone Learns GroupSince Glasspockets began, the transparency self-assessment has tracked whether foundations make available a central landing page of knowledge on their own websites, and that will continue to be included moving forward. So what’s the difference here? Opening up your knowledge on your own website is great for people who already know about your institution and visit your website, but it doesn’t really help to spread that knowledge to peers and practitioners unaware of your work. The fragmentation of knowledge across thousands of websites doesn’t do much to accelerate progress as a field—but that’s where open repositories like IssueLab come in.

Open repositories have several things going for them that truly live up to the idea of being #OpenForGood. First of all, any report you make available on IssueLab becomes machine-readable, so it can more easily be used and built upon by others doing similar work. Secondly, once a resource has been added to IssueLab, it becomes part of the sector’s collective intelligence, feeding through an open protocol system, which integrates with systems like WorldCat in 10,000+ public libraries, which means students, academics, journalists, and the general public can easily find the knowledge you’ve generated and shared, even if they’ve never heard of IssueLab, Foundation Center, or your organization. Once in the system, your knowledge resources can also be issued something called a Digital Object Identifier (DOI), so you can track access and use of that knowledge in an ongoing way.

The easiest way to think of it is that sharing your knowledge via open repositories is openness that is good for you and good for the field. So how about it? What will you #OpenForGood?

--Janet Camarena

Robert K. Ross, MD, President and CEO, The California Endowment: Parkland Students Inspire Foundation to Screen Out Investments in Firearms Manufacturing
March 14, 2018

Dr. Robert Ross photoOne month after the school shooting in Parkland, Florida that killed 17 people, students across the country are continuing to press for stricter gun control legislation with protests and school walk-outs. According to the Gun Violence Archive, more than 2,837 gun related deaths have occurred so far this year, and both the American Medical Association and the American Public Health Association have recommended addressing gun violence as a public health issue.

The week following the shooting, The California Endowment (TCE), California’s largest healthcare foundation, announced it would begin screening out firearms manufacturing from its investment holdings. TCE’s mission is to expand access to affordable, quality health care for underserved individuals and communities and to promote fundamental improvements in the health status of all Californians. TCE’s mission statement also outlines that the foundation doesn’t focus on prescriptions, but rather “we focus on fixing broken systems and outdated policies, ensuring the balance of power is with the people. We don’t focus on the individual, we focus on the larger community as an ecosystem of health. We work with citizens and elected leaders to find lasting solutions to impact the most people we possibly can.”

Recently, Glasspockets spoke with TCE president and chief executive officer Dr. Robert Ross, about the foundation’s decision to ban firearms investments, and how this aligns with both TCE’s stated health mission, and its core values around diversity, equity, and inclusion.

Glasspockets: The California Endowment recently announced that it will be scrubbing its investments of any holdings in firearms manufacturing, and this is actually not a new practice, but the third “negative screen” you are adding, since you already had screening in place for tobacco and for-profit prisons. Data shows that this practice is actually fairly uncommon in foundation philanthropy, so it’s clear it’s a challenge for the field. When did you begin the practice, and what led to you going down this path initially when you first implemented negative screening?

Dr. Ross: Since we are a health foundation, the founding board actually started with the tobacco screen in the late 90’s.  We added for-profit prisons more recently, after hearing from community leaders that they considered hyper-incarceration as an unhealthy practice affecting communities of color. This is consistent with our core values statement, which also helps guide our board. The very first item in our values states: “We believe that diversity, equity and inclusion are essential to our effectiveness and the long-term health of all Californians and commit to the integration of diversity, equity and inclusion in all our policies, practices, processes, relationships, internal working culture and systems.” By filtering out tobacco, for-profit prisons, and now gun manufacturing we are being consistent with these values.

“We really have to ask ourselves the question of whether the management of our investments portfolio reflects the values we hold dear.”

Glasspockets: There have sadly been many shootings prior to Parkland. What was it about this one that motivated your foundation to act?  

Dr. Ross: We were motivated by the youth and high school student activism – I think we were “shamed” to act by their leadership. The California Endowment “values the energy, agility and fearlessness of youth leadership and youth organizing in its many forms including local, statewide and online community-building.”

Glasspockets: And are you aware of other foundations being similarly motivated to act, either now or that already had such prohibitions in place? 

Dr. Ross: We have followed the leadership efforts of The California Wellness Foundation, Bloomberg Philanthropies and Joyce Foundation, all of which, to the best of my knowledge, already have a screen on firearms in place. I’m not certain how many other funders currently have a firearms manufacturing screen.

Glasspockets: The California Endowment was an early adopter of our Glasspockets approach to a more transparent philanthropy. So clearly transparency, openness, and accountability are priorities. Is your commitment to these values part of what motivated the decision and the public stand you are now taking? 

Dr. Ross: Yes, and it was the reason I published the OpEd in the Chronicle of Philanthropy.  Even though these boardroom conversations can get a little “messy,” it strengthens philanthropic practice if we can demonstrate vulnerability and transparency on tough issues. Without actions, our values just become words on a page.

Glasspockets: Glasspockets is currently advising foundations to become more familiar with what holdings they do have, since these are publicly listed on the 990-PF that foundations annually file with the IRS. And that data is now being released as machine-readable, open data—making it more open and accessible than ever before. Is this something TCE is tracking or do you have any internal practices about monitoring what’s in your 990-PF that may be helpful for others? 

“Without actions, our values just become words on a page.”

Dr. Ross: We have begun utilizing ESG (Environmental, Social and Governance) practice approaches, as have many others, as a “values and principles” overlay to our investments portfolio. [ESG screening is an array of ethical exclusion metrics designed to govern certain investment decisions. Excluded companies can include those in the tobacco, firearms, and for-profit prison industries. The alerts look for mentions of portfolio companies (those not currently excluded) and rate them as positive, negative or neutral in terms of these screens.]

Glasspockets: The things you are screening out make a lot of sense for a healthcare foundation. Why do you think so few do it? And what advice would you have for them as far as overcoming those challenges?

Dr. Ross: The answer to this is values-values-values.  Most foundations have both a statement of mission and a statement of values, and we really have to ask ourselves the question of whether the management of our investments portfolio reflects the values we hold dear.  You can’t make a blanket values exception for the investments portfolio.  

Glasspockets: In terms of the screening that had already been in place, what has been the impact on endowment growth?

Dr. Ross: I’m not sure, but I do know that a concern some raise when discussing this is the belief that growth may be negatively impacted by the lack of tobacco and private prisons holdings.  But if you’re acting on your values, then I’m not sure the question is material.  Slavery is profitable, but we’d never invest in that….

Glasspockets: And how about the qualitative impact—things that bottom lines don’t measure? 

Dr. Ross: It’s good for boardroom cohesion, and messaging to staff and community that we intend to live up to our values, even if it is discomforting.  It’s hard to put a price tag on reputation and accountability.

--Janet Camarena

Why Salary Compensation Transparency Can Counteract Equity
March 7, 2018

Vincent Robinson is founder and managing partner of The 360 Group, a national executive search firm dedicated to creating social impact by placing exceptional leaders into extraordinary mission-driven organizations.

Vincent Robinson photoIn The 360 Group’s work as executive search consultants to foundations and nonprofits, we know that transparency around compensation is a perennially thorny issue, and one that we find many well-intentioned organizations getting wrong. Given the counter-intuitive nature of what I’m about to say, I would like to provide important context that may help others understand how we approach compensation transparency, particularly in light of our efforts to make diversity and equity a key priority in our work.

“...We advise our clients not to ask that candidates submit their salary histories because we know that contributes to inequitable salary structures, particularly for women and people of color.”

For a bit of background: I launched The 360 Group 13 years ago, specifically with an eye on making the sector more diverse, more contemporary, and better prepared to address a whole new set of challenges in increasingly complex times. Our view is that more diverse teams — and more diversity in leadership — maximize the variety of perspectives that organizations need to be successful, effective, and more representative of the communities that they serve. Countless studies, notably those by Maggie Neale and Scott Page, have demonstrated the power of diversity in groups and teams, only emboldening our firm’s mission and theory of change. Diversity in groups can also make what can be challenging work a hell of a lot more fun.

Beyond compensation, then, our goal is to extend our reach and that of our clients to identify people from all backgrounds and walks of life for leadership opportunities. To do that, we want to reduce barriers for candidates, rather than build them up (and those barriers can be completely artificial). Our charge is to understand organizations well and identify candidates who can lead them and have the desire to do so with passion, heart and values.

At The 360 Group, market comparables drive our guidance to clients (and candidates) around compensation, as well as the skills and value of a candidate. We do not tie executive compensation to salary history. We know that women and people of color are represented in just a fraction of leadership roles — across every sector. To build that leadership bank, especially in senior positions, we seek out candidate pools of devoted (and often underpaid) nonprofit professionals as well as highly-paid executives. The salary one has earned shouldn’t dictate the salary one may earn, so we advise our clients not to ask that candidates submit their salary histories because we know that contributes to inequitable salary structures, particularly for women and people of color. That is our philosophy and commitment in this work. And in states like California and Oregon, as of 2018, it is now against the law for employers to ask candidates for salary history because of this very issue.

EquityPerhaps more important than the range itself is transparency around the process by which foundations establish their executive compensation. Demystifying the process serves to create both internal and external understanding about how this key decision is made, and discloses who gets to weigh in on the process. This level of transparency is helpful to the institution as much as outsiders – just ask any compensation consultant! Useful examples of how other foundations are publicly describing their executive compensation process are included in the helpful Glasspockets transparency self-assessment tool here.

Additionally, we also field questions about why we do not post a salary range for the CEO role. Our answer comes from the heart: we don’t want fabulous people to self-select out, based purely on numbers. To be truly committed to equity (which we are), creating even the perception of obstacles runs at cross-purposes to acting in equity. For better or worse, in the philanthropic field, salaries and compensation packages are all over the map. That is why we rely on independent market analyses and our compensation expert colleagues to inform ranges for our client organizations. So if a role is valued at between, say $300,000 and $500,000, the person ultimately selected will be compensated in that range based on the experience and value they bring to the role — regardless of whether they have earned a fraction of that amount or orders of more magnitude. That is equity in compensation, a practice we have relied on from the inception of our firm, and just one important ingredient in our efforts to bring diversity and equity to our sector.

As I’ve noted above, not all transparency works against diversity, equity, and inclusion. There are specific kinds of transparency that work to accelerate the creation of a more equitable sector, and I’ll delve into that in this space in a future post.

--Vincent Robinson

Open for Transformational Change: How Foundation Transparency Sets the Stage for Diversity, Equity, Inclusion, and Justice
February 14, 2018

Whitney Tome is the executive director of Green 2.0, a campaign dedicated to increasing the racial diversity of mainstream environmental NGOs, foundations and federal government agencies through data transparency, accountability, and increased resources.

Whitney Tome photoPhilanthropy invests billions of dollars into charitable causes each year. According to Foundation Center, foundations gave an estimated $59.28 billion in 2016. That’s a tremendous amount of capital. For better or worse, the field of philanthropy is a leader in determining what’s important and how social change happens. Whoever holds the purse also holds the power. And with power comes responsibility for foundations to set the gold standard, especially for diversity, equity, inclusion, and justice (DEIJ).

In my role as executive director of Green 2.0, I spend a lot of time helping foundations better understand how improved foundation transparency around DEIJ can position philanthropy to lead by example instead of just playing catch up, or worse, just going through the motions. Though we focus on the environmental field, what we have learned in the process can serve as a helpful example for all of philanthropy because every sector has been influenced by the power and privilege that exist in our society.

“Being transparent about the demographics of foundation staff and boards…can spur a review of recruitment and hiring process to reduce implicit biases.”

So what have we learned?  The environmental movement, in particular, has failed to adequately represent people of color. In 2014, Green 2.0 commissioned “The State of Diversity in Environmental Organizations” report authored by Dr. Dorceta Taylor, which found that while people of color are 36% of the U.S. population, they only comprise 12% of foundation staff in the world of environmental funding. And ample studies have shown that communities of color are disproportionately affected by environmental hazards. Green 2.0 envisions a different, more diverse movement that wins environmental battles for those most impacted. To catalyze transformational change, Green 2.0 works to increase the racial and ethnic diversity in the mainstream environmental movement. We call for data transparency, accountability, and increased resources to ensure NGOs and foundations are diverse.

As the sustained drumbeat to improve workplaces and increase opportunities for talented people of color, Green 2.0 engages with environmental NGOs and foundations by calling on them to share their demographic data year after year. This is not just transparency for transparency’s sake. We find there are direct benefits to this kind of transparency that spurs change for the better as outlined below. But there is still lots of room for improvement.

Since 2014, only 12 of the Top 40 environmental foundations have answered the call. Given the benefits of transparency to the DEIJ movement, it is important that both GuideStar and Glasspockets encourage disclosures pertaining to diversity data in their respective profiles. In the case of Glasspockets, the transparency self-assessment covers disclosures about both diversity values statements and demographic data, and what we have learned here is it remains a challenge for the field as a whole with fewer than half of participating foundations reporting any kind of values statement, and fewer than 10 percent disclosing any demographic data at all.  And out of a universe of more than 86,000 foundations, only 500 foundations have willingly submitted their demographic data to GuideStar via their profile page demonstrating that this is a challenge for all foundations. 

Commitment means:

  • Being transparent about the demographics of foundation staff and boards. Greater transparency can spur a review of recruitment and hiring process to reduce implicit biases but also allow foundations to identify the full range of organizations they should be supporting.
  • Encouraging grantees to submit their diversity data and communicate how they are working on diversity, equity, inclusion, and justice both internally and externally. As funders, foundations are uniquely suited to holding grantees accountable for advancing a more diverse environmental movement.
  • Recognizing your role as leaders in the field that influence the whole. When foundations make a move and engage deeply on issues, others follow suit. Foundations have an opportunity and responsibility to show the field the value of diversity through its action and set the standard on recruiting, attracting, and retaining talented people of color.

In order to see transformational change, foundations need to make a real commitment to diversity, equity, inclusion, and justice, internally. That’s more than providing lip service to the value of diversity. It is rather embedding equity and justice in the practices, policies and procedures of the organization and for foundations also into their grantmaking. Ask your foundation simple questions that may result in complex but informative answers as a start:

  • Are you tracking the data of your staff and board?
  • Do you have an organizational vision and/or mission around diversity, equity, inclusion, and justice?
  • Is there authentic leadership on DEIJ issues and are they holding the organization and themselves accountable for change?
  • Are your internal policies for attracting, recruiting, hiring, promoting and retaining staff transparent, equitable and consistently implemented?
  • Are you assessing your organizational culture and making constant adjustments to achieve your vision?
  • Are you tracking the demographic makeup of your grantees? Are you sharing those statistics with program officers? Are you using this to inform future grantmaking?

Several foundations have made or are starting to ask these questions, but many are not public about them.  From sharing the demographic data of their grantees to intentional recruiting and hiring staff of color, these foundations are changing their focus and what they fund. One foundation has been collecting the demographic data of their staff and grantees for several years; and sharing that data with grantees and program officers. This data gives program officers insight into where the dollars are going, how to shift their portfolio over time, and for their grantees they can now compare themselves to other organizations in the field. As a foundation, they have engaged in more DEIJ conversations internally and externally from how they support racial equity through funding to how they support the internal DEIJ work of grantees. This has spurred important conversation and reflection about funding, commitment, and action that this foundation is digging into and learning from every year. More need to start this conversation and be public about the answers that they are coming to.

Green 2.0 will continue to advance enduring change in the environmental movement broadly but we call on foundations to dedicate the time and resources needed to change the face of philanthropy to one that is more diverse, equitable, inclusive, and just.

--Whitney Tome

Upcoming Webinar - Going Public: Overcoming the Foundation Transparency Challenge
February 7, 2018

Learn how greater transparency practices can improve foundation effectiveness. Foundation Center is teaming up with United Philanthropy Forum to offer a webinar on February 22nd that will share strategies and tools for creating greater openness at your foundation.

Foundation Center’s Janet Camarena, Director of Transparency Initiatives, will explain how greater transparency sets the stage for more effective foundation practices and grantmaking. She will highlight powerful and free tools that grantmakers can use to assess and improve transparency practices. Attendees will also explore how to design a foundation website with transparency and openness in mind. Learn from helpful peer examples that illuminate best practices on the road to greater transparency and accountability in philanthropy.

Don't miss out on this helpful webinar! February 22, 2-3pm EST

Register Now

The Rockefeller Brothers Fund is #OpenForGood
January 31, 2018

Hope Lyons is the director of program management at the Rockefeller Brothers Fund, and Ari Klickstein is the communications associate/digital specialist at RBF. This post is part of the Glasspockets’ #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood.

Hope Lyons
Ari Klickstein

As a private foundation, the Rockefeller Brothers Fund advances a just, peaceful, and sustainable world through grantmaking and related activities. We believe that discerning and communicating the impact of our grantmaking and other programmatic contributions is essential to fulfilling the Fund’s mission, as is a commitment to stewardship, transparency, and accountability. Philanthropy exists to serve the public good. By opening up what we are learning, we believe that we are honoring the public’s trust in our activities as a private foundation.

As part of our commitment to serving the public good, we are proud to be among the first foundations to join the new #OpenForGood campaign by sharing published reports on our grantmaking through Foundation Center’s open repository, IssueLab, and its new special collection of evaluations Find Results, and continue to make them available on our own website. These reports and impact assessments are materials authored by third party assessment teams, and sometimes by our own program leadership, in addition to the published research papers and studies by grantees already on IssueLab.

We feel strongly that we have a responsibility to our grantees, trustees, partners, and the wider public to periodically evaluate our grantmaking, to use the findings to inform our strategy and practice, and to be transparent about what we are learning. In terms of our sector, this knowledge can go a long way in advancing fields of practice by identifying effective approaches. The Fund has a long history of sharing our findings with the public, stretching as far back as 1961, when the results of the Fund’s Special Studies Project were published as the bestselling volume Prospect for America. The book featured expert analysis on key issues of the era including international relations, economic and societal challenges, and democratic practices, topics which remain central to our grantmaking work.

We view our grantmaking as an investment in the public good, and place a great deal of importance on accountability. Through surveys conducted by the Center for Effective Philanthropy in 2016, our grantees and prospective grantees told us that they wanted to hear more about what we have learned, as well as what the Fund has tried but was recognized as less successful in its past grantmaking. Regular assessments by CEP and third-party issue-area experts help keep us accountable and identify blind-spots in our strategies. While our evaluations have long been posted online, and we have reorganized our website to make the materials easier to find, we have also made a commitment to have additional reflections on what we’re learning going forward and to more proactively share these reports. We are grateful to Foundation Center for creating and maintaining IssueLab as a sharing platform and learning environment hub for the public, practitioners, and peers alike to locate resources and benefit from the research that the philanthropic sector undertakes.

--Hope Lyons and Ari Klickstein

Through a Glass a Little Less Darkly: Looking Back, Looking Forward 2017-2018
January 17, 2018

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

Janet Camarena PhotoIn the spirit of Glasspockets, before we completely erase the past and close the books on 2017, we wanted to identify the highlights of the year from a transparency perspective. Here are last year’s moments and trends that made me think that transparency and openness are not just catching on, but starting to lead to a more permanent culture of transparency, which may signal continued progress in 2018:

E_SDG_Logo_UN Emblem-02#10 - SDGs Catch On: The United Nations' Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. 2017 saw foundations increasingly aligning their funding with the SDGs, and some even using it as a shared language across philanthropy and across sectors to signal areas of common interest, and measure shared progress. As foundation strategies become increasingly specialized and strategic, explaining the objectives and the nuances can become a jargon-laden minefield that can make it difficult and time consuming for those on the outside to fully understand the intended goal of a new program or initiative. The simplicity of the SDG iconography cuts through the jargon so foundation website visitors can quickly identify alignment with the goals or not, and then more easily determine whether they should devote time to reading further. The SDG framework also provides a clear visual framework to display grants and outcomes data in a way that is meaningful beyond the four walls of the foundation, and some started taking advantage of this in 2017 to help explain the reach of their work. The GHR Foundation, Silicon Valley Community Foundation, Tableau Foundation, Rockefeller Foundation and the Conrad N. Hilton Foundation each offer inspiring examples of how the SDGs can be used to increase philanthropic transparency, and ultimately understanding of the public good generated from their activities.

Amanda Flores-Witte Photo# 9 - Pain Points See the Light of Day: I noticed a greater willingness among grantmakers to publish reports and blogs not just to enumerate the successes, or business as usual activities, but to also candidly open up about the struggles and pain points along the way. This is not meant to be an exhaustive list, but some particularly inspired me:

  • A great example comes to us from the Kenneth Rainin Foundation’s storytelling series on Medium about its adventures in public arts funding. Given the project challenges, Mandy Flores-Witte shared on Transparency Talk that a trusted colleague advised them against opening up about the challenges they encountered, but they saw what could be gained by telling the story from various stakeholder perspectives, and as a result, ended up also producing a great example of why philanthropy needs more storytellers. (Yes, I know I’m cheating a bit here because this is from a 2016 series, but it’s so good that I’m including it anyway!)
  • In terms of formal publications, the Conrad N. Hilton Foundation published a very detailed report analyzing the impact of a large-scale, multi-year and multi-sector initiative designed to end and prevent chronic homelessness. Among the report’s findings was the fact that homelessness actually increased during the grant period. At a less learning-focused foundation, this might have been enough to quash its publication.
  • Hanh Cao Yu photoThe California Endowment’s (TCE) chief learning officer, Hanh Cao Yu, lived up to her title by enumerating TCE’s mistakes in a Transparency Talk blog about the pain points the foundation encountered on the road to a health policy systems change.

We hope to see this practice grow in 2018, and that when funders do issue such knowledge that they take the time to share it on an open repository like IssueLab, as part of our #OpenForGood campaign. This practice is a significant one because sharing this knowledge can save other practitioners and funders from repeating costly experimentation and prevents us all from working in the dark.

#8 - Foundation Transparency Movement Builds Globally: The need for greater foundation transparency is not unique to the United States. In fact, the majority of countries outside the United States lack the regulatory structure we have that requires foundation disclosures that we take for granted here, such as transparency about leadership, compensation, grantmaking activities, or even just to verify their very existence. In many regions, this has created urgency around voluntary transparency movements, and some picked up steam by creating their own transparency assessments. In 2017, Australia, Brazil, and New Zealand each launched movements designed to motivate institutional philanthropists to greater transparency. In the case of Australia, the foundations are approaching this from a storytelling lens. And national philanthropic associations in both Brazil and New Zealand, inspired by the “Who Has Glass Pockets?” assessment, developed self-assessments for their own members. Given the dearth of global philanthropic data, we predict more global associations will be emphasizing the importance of voluntary transparency in 2018.

Mac-1024x512-03#7 - Transparency Comes to Competition Philanthropy: While competitions are nothing new in philanthropy, transparency about the competition can often fall short. This was not the case with the MacArthur Foundation’s 100&Change, as they designed the competition with transparency in mind. The goal was to award $100 million to an organization aiming to make “real and measurable progress on a critical problem of our time.” In the end, after several rounds, the winner was announced at the end of 2017 as a joint effort between Sesame Workshop West and the International Rescue Committee to team up to serve the growing population of child refugees in the Syrian response region.

But an additional real winner in this example was also transparency. As is often the case with competition or even ordinary grant programs, the demand for worthy ideas far outstrips the supply of grant dollars. The potential solutions in the proposals are wasted since they usually do not see the light of day, and those agencies must then source new prospects, re-package those requests to other funders, or give up. In response to these realities, the MacArthur Foundation partnered with Foundation Center to bring greater visibility to those ideas, with three goals in mind: drive investment in proposals that merit it; facilitate collaboration and learning between organizations working on similar problems; and inspire funders and organizations working for change to do things differently. As a result, there is now an open database of solutions ready for others to learn from and support, the 100&Change Solutions Bank.

Relationships Matter Practices-1#6 - Transparency Recognized as Key to Effective Grantmaking: A common concern we often hear is that funders don’t want to just “do transparency for transparency’s sake”—they want to do it because it leads to better and more effective grantmaking. 2017 was notable in that several industry groups took up the charge and leveraged member and client experience to demonstrate how transparency leads to more effective philanthropy, which should help foundations justify spending time on transparency efforts in 2018. The National Center for Family Philanthropy featured webinars and a blog series to reinforce the idea that transparency is appropriate for family foundations too. In April, we were happy to see that transparency topped GuideStar’s list of practices philanthropy should adopt to overcome common challenges. And in November, the Center for Effective Philanthropy published Relationships Matter: Program Officers, Grantees, and the Keys to Success. And guess what? The report found that transparency is key to healthy grantee/grantmaker relationships and particularly well-suited to addressing the power imbalance inherent in the relationship. Now that the ROI question has been put to rest, we expect to see more foundations prioritizing transparency in 2018.

Reedyjenniferford-cropped#5 - No Moat Philanthropy: Listing transparency among a list of cultural values or stating that one’s institution is aiming to create a culture of openness is a good place to begin, but Jen Ford Reedy’s excellent blog series about the Bush Foundation’s efforts is a great reminder to the field not to start and stop with elegantly written values statements. The blog series shares detailed steps and strategies foundation leaders can use to move their foundation toward greater openness. Ford Reedy’s blog series also deserves attention because it offers the field helpful advice on how working more openly can serve to help the field become more diverse, equitable and inclusive.

Phil goals#4 - GrantAdvisor Breaks Through Insular Foundation Culture: Industries as diverse as restaurants, travel, retail, health, and even nonprofits have had the blessing and curse of receiving unfiltered user feedback via online review sites for many years now, so it’s hard to believe that until 2017 this was not the case for philanthropy. With the launch of in April, now foundations can view, for better or worse, what their stakeholders really think. Anyone can register to give feedback, and once a foundation receives more than five reviews their profile goes live on the site. Given the power dynamic, reviews are anonymous, and foundations are able to post responses. An engaging profile with emoji-symbols invites users to rate foundations on two principal metrics: the length of time it takes to complete a foundation’s application process, and a smiley/frowning face rating assessing what it’s like to work with the particular funder. So far, enough reviews have been submitted to provide 49 foundations with unfiltered feedback. And perhaps more importantly, more than 130 foundations have registered to receive alerts when feedback is posted, so it’s an encouraging sign that the field is listening. As more reviews get published, this will continue to scale in 2018, and it will be interesting to see the kinds of changes foundations make in response.

990-PF graphic#3 - Open Data & Open 990-PFs Set the Stage for Change: Open, machine-readable 990-PFs actually became a reality in 2016, but 2017 represented the first full year of their availability and allowed some interesting experimentation to take place. For the uninitiated, though the IRS 990 and 990-PFs have always been public documents, they weren’t made digitally available as open data until April 2016 when the IRS started making digitally available all electronically filed 990 and 990-PF documents. Since the data is now not only open, but digital and machine-readable, this means that anyone from journalists to researchers to activists can aggregate this data and make comparisons, correlations, and judgments about philanthropy at lightning speed, all without any input from foundations. Throughout 2017, agencies like Foundation Center, GuideStar, and academic research institutions that use data from the 990s to analyze the field experimented with the usability of the data for new analytic tools. Here at Foundation Center, we prototyped investment transparency and financial benchmarking tools, while others also experimented with using the new treasure trove of open data in innovative ways. For example, a start-up company called Foundation Financial Research is compiling 990-PF benchmarking data on foundation endowment investment performance. Though there are technical glitches to be worked out, it is likely that over time the data will become more reliable and comprehensive leading to more such comparative tools. A recorded webinar by Digital Impact reviewed the challenges and opportunities of this new age of open philanthropic data, and a webinar and blog series on Transparency Talk outlines specific considerations for private foundations.

Paradise Papers graphic
Source: International Consortium of Investigative Journalists

#2 - Paradise Leaked: I should preface this one by saying that Glasspockets remains committed to advocating for voluntary transparency and the inclusion of this particular item should not be taken to mean that we are shifting to advocating forced entry! The “Paradise Papers” refers to a set of 13.4 million financial documents, originating from the Bermuda-based law firm Appleby, detailing investments held in offshore accounts often in paradise-like locales. Leaked to German reporters from Süddeutsche Zeitung, who then shared them with the International Consortium of Investigative Journalists, the documents name more than 120,000 people and companies, including many prominent individuals ranging from the likes of Prince Charles and Queen Elizabeth II, to celebrities like Madonna and Bono, and to government officials like U.S. Secretary of Commerce Wilbur Ross. The “Paradise Papers” also include offshore financial holdings of philanthropists like Open Society Foundations founder, George Soros and Simons Foundation founder, Jim Simons. You can read more here about that. But in terms of our work at Glasspockets, the headline to this story is not that high-net worth individuals hold large sums of money in offshore bank accounts—that is really old news. But coming on the heels of the Equifax leaks, which exposed vulnerabilities in one of the nation’s largest credit data reporting agencies and could impact upwards of 143 million American households, the subsequent Paradise Paper leaks further demonstrated that there is no longer any impenetrable fortress for our financial data. Couple these vulnerabilities with the interest in the activities of high-net worth individuals, and you have a perfect storm of motive and opportunity.

So, the take away here is not to live under the false sense of security that data systems can be reinforced and your offshore accounts are safe from prying eyes. Rather, assume that at some point, this will all be disclosed, so why not be proactive and explain long term philanthropic aims? There are valid reasons why donors establish funds and foundations outside of the United States, such as funding projects in countries where it doesn’t have diplomatic relations or for long-range planning so payout rates don’t force rash decisions. If these challenges, visions and strategies are not explained, others can fill in the blanks with their own imaginations. Many foundations have a history section of their website; the new era of leaks suggests that it may be time to add a future directions section. 2018 will likely bring more massive data breaches and leaks—are you ready?

Open Democracy Infographic1_tw#1 - Foundations Take a Stand: Traditionally, foundations are more comfortable writing checks to support others to take the microphone rather than using their institutional voice to speak out. 2017 saw a departure from this practice with many foundations finding their voice as a result of the current political climate. Funder groups banded together to issue open letters, CEOs blogged and foundation staff tweeted to reinforce commitment to issues or population groups that were in the political line of fire. Here at Foundation Center, we continued to improve our open, nonpartisan web portal that explores philanthropy’s role in U.S. democracy. Given the response of foundations in 2017, I’m betting we will see support for movement building of all Communications-network-logo-1-1persuasions grow this year. And speaking of speaking out, given this trend of foundations taking a stand, the Communications Network’s recent conference focused on just this topic and they have crafted some helpful tips on how to navigate institutional communications about politically charged issues of the day.

So, what am I missing?  The drawback of a list like this is that inevitably something that should be included gets left off.  And we want to continue to use this space to highlight emerging trends and excellent examples of transparency at work in philanthropy, so please share any thoughts, self-promotion, or suggestions below.  We have a whole year of blog content ahead of us to fill and welcome audience input.  Happy 2018!

-- Janet Camarena

Getting Practical About Open Licensing
January 11, 2018

Kristy Tsadick is Deputy General Counsel and Heath Wickline is a Communications Officer at the William and Flora Hewlett Foundation, where they created an Open Licensing Toolkit for the foundation’s staff and its grantees in 2015. This post is part of the Glasspockets’ #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood.

Kristy_Tsadick photo
Kristy Tsadick
Heath_Wickline photo
Heath Wickline

Some of the biggest barriers to open licensing—an alternative to traditional copyright that encourages sharing of intellectual property with few or no restrictions—are practical ones. What rights are authors really giving others when they openly license their work? How do authors decide on the right Creative Commons license for their work? And having decided to openly license what they’ve created, how do authors actually let others know about their decision?

The Hewlett Foundation, where we both work, has a long history of supporting openness and transparency, and when Larry Kramer joined the foundation as president in 2012, he decided to make a renewal of that commitment a key part of his tenure. In 2015, that renewed commitment resulted in a decision to extend our support for open licensing to require it on works created using grant funds, underlining our belief that if grants are made to support the public good then the knowledge they generate should also be considered a public good.

To successfully implement this idea, we knew we would have to offer some concrete guidance to our program staff and grantees on both what we were asking of them and how to do it. We also knew we wanted to create a policy that would offer our grantees flexibility to comply with it in ways that made sense for their organizations. Both ideas are embodied in the Open Licensing Toolkit for Staff that we developed.

The kit is structured to help the foundation’s program staff decide to which grants the new rule applies, introduce open licensing to grantees, and help clarify what an open license on written works will mean for them. It uses FAQs, a “decision tree,” template emails and other documents to walk through the process. There is even a guide to marking works with a Creative Commons license to make clear what information is needed along with the copyright notice. And while the kit was designed with Hewlett Foundation staff in mind, we also wanted it to be useful for grantees and others interested in expanding their understanding and use of open licenses—so, of course, the toolkit itself carries a broad Creative Commons license.

Hewlett_toolkitIn thinking about which of our grants would be in scope for open licensing, we realized early on that general operating support is incompatible with the policy because those funds are given “with no strings attached.” Beyond even this broad exemption, we wanted to allow plenty of space for grantees to select licenses or request an exemption where they felt open licenses could do harm to them financially. It’s been gratifying to see how grantees have recognized the spirit of the new policy, and how infrequently they’ve requested exemptions—so much so that we stopped tracking those requests about a year after instituting the new policy. In one area where we did often see requests for exemptions—in grants to performing arts organizations, where the “work” is often a performance and selling tickets to it or recordings of it central to a grantee’s business model—we recently decided to change our standard grant agreements to recognize the need for this exemption.

Our goal in adopting the new policy was to show others what open licensing could mean for them—the way it can help spread knowledge and increase the impact of philanthropic resources. In that, we’ve been extremely successful, as other organizations have built on our toolkit, and our policy, to encourage open licensing in their own work. The Children’s Investment Fund Foundation (CIFF), for example, based its implementation guide for its own transparency policy on our toolkit, and the U.S. Department of State included a link to it in its Federal Open Licensing Playbook to encourage open licensing across all federal agencies. And because we included a Creative Commons license on the kit to be #OpenForGood, other organizations—including yours—are free to use and build on our work, too.

Hardly anyone would argue against getting more impact for the same dollars or having their ideas adopted and shared by more people. But real-world implementation details get in the way. Our experience with our Open Licensing Toolkit shows that a practical, flexible approach to open licensing helped extend our impact in ways we never could have imagined.

--Kristy Tsadick and Heath Wickline

New IssueLab Infographic Delves into Foundation Evaluation Practices
January 3, 2018

Evaluation_look_1101[1]More than half of funders are sharing evaluation results. How are they doing it, and how can other foundations learn from these lessons?

A detailed IssueLab infographic reveals how foundations are conducting evaluations, what they’re evaluating and whether they publicly shared what they learned. The findings are based on a 2017 Foundation Center survey of U.S. foundations.

In the last five years, 42% of foundations have conducted and/or commissioned an evaluation. Among the types of foundations more likely to do so are larger funders, as well as community foundations, of which 64% reported a commissioned evaluation in the last five years.

Other key findings:

  • 55% of foundations share what they are learning (Are you?)
  • Only 36% of foundations look at what other funders are sharing
  • 28% of foundations evaluate themselves as a whole
  • 51% of foundations evaluate individual grants

Most surprising and disappointing is how few foundations report using the knowledge that is shared by others. In a field that is not known for sharing, it’s likely most foundation staff don’t think the data is out there or searchable and retrievable in a user-friendly way. To solve this problem, IssueLab developed a new IssueLab:Results tool that easily allows anyone to seek and find foundation evaluations. You can now easily learn from your colleagues.

This IssueLab infographic is part of Foundation Center’s ongoing efforts to champion greater foundation transparency.. This year, Foundation Center launched the related #OpenForGood campaign, which encourages foundations to openly share their knowledge and learn from one another. Hint-Hint: adopting open knowledge practices could be an excellent New Year’s resolution for your foundation! How will your foundation be #OpenForGood?

--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.

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