Transparency Talk

Category: "Why Transparency" (176 posts)

Give for Good: Telling Your Corporate Philanthropy Story
October 11, 2017

Debbie Johnson is author of  Give for Good: A How-to-Guide for Business Giving.

2x3Debbie IMG 008I have been devoted to philanthropy for a long time because I love it. But when I think about what I enjoy the most, it’s learning about the lives that are changed and the impact of the work. As a result, I’m a big fan of telling your philanthropy story, loud and clear. While humility may lead you to keep your philanthropy anonymous because you don’t want to “toot your own horn” or perhaps to avoid being flooded with requests, being transparent with well-told stories about the positive results of giving back can be very inspirational for other businesses, engaging for employees, and also help your favorite causes to build momentum.

So it’s important to tell your story both internally within the company and externally to the public.

Salesforce Group photo

Internal Communication

Cone LLC, a noted strategy and communications firm, found that 87 percent of Americans’ job loyalty would increase if their company supported activities that would improve society. Internally telling your story allows employees to see themselves and their co-workers doing good in the world by giving back, generating pride in the knowledge that their company helps improve the community.

There are many ways to share your good work with your staff: company newsletters, meetings, blogs, on your website, in social media, at new hire orientations, and visually around the office.

Salesforce, the San Francisco-based cloud computing company, is a great example of a corporation that gives back and makes it a big deal. Salesforce was ranked #1 in the 2017 Fortune 50 Best Workplaces for Giving Back. Its hub offices have large framed photos of employees volunteering all around the world.  These pictures are obtained from “Aloha Ambassadors,” employees who are passionate about their culture. These ambassadors plan volunteer events and then get points for taking pictures and posting them in Chatter, Salesforce’s internal collaboration tool. The points can be used for prizes such as Salesforce t-shirts and hoodies. What a great way to visually show the company’s culture of giving back!

Facebook Screen Shot No CropExternal Communication

Communicating externally is critical so that others know about a company’s generosity and culture of corporate citizenship. According to a Cone LLC survey, 80 percent of US adults favor brands that are socially responsible over others of similar price and quality that aren’t associated with charitable causes, and further, nearly 20 percent would switch to a more expensive brand to support a good cause. However, if you don’t get the word out about your good work, consumers won’t know to choose your brand.

There are also many methods for communicating your good deeds externally, including your website, in social media, in customer or public newsletters, at shareholder meetings, in external blogs, in company brochures, via public relations and industry publications. The Glasspockets’ transparency self-assessment tool provides a helpful roadmap with many ideas for how corporate philanthropy can open up its work. Human interest stories and photos are highly engaging, so use storytelling for maximum effect.

Rackspace, the San Antonio-based managed cloud provider, has a very active employee volunteer group and shares information about its activities and volunteering through a dedicated communications portal, Rack Gives Back.  Rack Gives Back also has a knack for communicating with followers.

Newsletter ScreenshotSalesforce, too, shares its 1:1:1 social responsibility plan externally through its website. The Salesforce 1:1:1 model is about integrating corporate philanthropy by encouraging businesses to pledge to give 1% of its product, time, and resources to philanthropy from an early stage. This example is unique, because it’s clear that Salesforce is not just aiming to highlight stories about its giving, but also trying to grow a movement by motivating corporate peers to prioritize giving.

And you don’t need to be a Fortune 500 company to share these stories. Another good example of sharing giving news comes from Austin-based sign maker, BuildASign, which supported relief efforts for Hurricane Harvey victims then told their customers and followers about it in a colorful newsletter.

Last but not least, another great way to share your philanthropy story is through an annual giving report posted to your website. Many companies are now realizing the importance of including corporate giving close-ups in these reports. Here are a few examples:

  1. HP sets up access to its report by stating the importance of transparency
  2. Procter and Gamble uses its report to share its community impact
  3. Unilever provides ongoing progress on its sustainable living hub

These are only a few examples of how companies are increasingly using internal and external platforms to share the good that they are doing in the world.

How are you telling your story?

--Debbie Johnson

Give For Good Book CoverGive for Good: A How-to-Guide for Business Giving

Learn more about Debbie Johnson and Sam Woolard's book Give for Good: A How-to-Guide for Business Giving.  In the book, Johnson brings her business expertise and extensive nonprofit volunteering to bear, helping clients be strategic in their philanthropy.  

No Moat Philanthropy Part 5: The Downsides & Why It’s Worth It
October 6, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we have devoted this blog space all week to the series. This is the final post in the five-part series.

Reedyjenniferford-croppedEverything we do is a trade-off. Spending time and money on the activities described in this No Moat Philanthropy series means time and money not invested in something else. Here are some of the downsides of the trade-offs we have made:

It takes some operating expense.  It requires real staff time for us to do office hours in western North Dakota and to reformat grant reports to be shared online and to do every other activity described in these posts. We believe there is lots of opportunity to advance our mission in the “how” of grantmaking and weigh that as an investment alongside others. In our case, we did not have an increase in staff costs or operating expenses as we made this shift. We just reprioritized.

It can be bureaucratic.  Having open programs and having community members involved in processes requires some structure and rules and standardization in a way that can feel stifling. Philanthropy feels more artful and inspired when you can be creative and move quickly. To be equitably accessible and to improve the chance we are funding the best idea, we are committed to making this trade-off. (While, of course, being as artful and creative as possible within the structures we set!)

“We believe our effectiveness is fundamentally tied to our ability to influence and be influenced by others.”

Lots of applications means lots of turndowns.  Conventional wisdom in philanthropy is to try to limit unsuccessful applications – reducing the amount of effort nonprofits invest with no return. This is an important consideration and it is why many foundations have very narrow guidelines and/or don’t accept unsolicited proposals. The flip side, however, is that the more we all narrow our funding apertures, the harder it is for organizations to get great ideas funded. We’ve decided to run counter to conventional wisdom and give lots of organizations a shot at funding. Of course, we don’t want to waste their time. We have three strategies to try to mitigate this waste: (1) through our hotlines we try to coach unlikely grantees out of the process. (In our experience, nonprofits will often apply anyway – which suggests to us that they value having a shot – even if the odds are long.); (2) we try to make the process worth it. Our surveys suggest that applicants who do the programs with the biggest pools get something out of the process – (and we learn from the applicants even if they are not funded.); and (3) we try to make the first stage of our processes as simple as possible so folks are not wasting too much effort.

Relationships are hard!  Thinking of ourselves as being in relationship with people in the region is not simple. There are lots of them! And it can be super frustrating if a Bush staff member gives advice on a hotline that seems to be contradicted by the feedback when an application is declined. We’ve had to invest money and time in developing our CRM capacity and habits. We have a lot more work to do on this front. We will never not have a lot more work to do on our intercultural competence and our efforts to practice inclusion. Truly including people with different perspectives can make decisions harder as it makes decisions better.  The early returns on our efforts have been encouraging and we are committed to continuing the work to be more fully in relationship with more people in the communities we serve.

Conclusion

Overall, we believe a No Moat Philanthropy approach has made us more effective. When we are intentional about having impact through how we do our work — building relationships, inspiring action, spreading optimism — then we increase the positive impact we have in the region.

We believe our effectiveness is fundamentally tied to our ability to influence and be influenced by others, which demands trust, reciprocity and a genuine openness to the ideas of others. It requires understanding perspectives other than our own. It requires permeability.

While we arrived at this approach largely because of our place-based sensibility and strategic orientation toward people (see learning paper: “The Bush Approach”), the same principles can apply to a national or international foundation focused on particular issues. The definition of community is different, but the potential value of permeability within that community is the same.

--Jen Ford Reedy

No Moat Philanthropy Part 4: Beyond the Transactional
October 5, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we are devoting our blog space all week to the series. This is the fourth post in the five-part series.

Reedyjenniferford-croppedWe have a grantmaking model that is based on the belief that, if we do it right, we will create more good by what we inspire than by what we directly fund. Principle #4 and #5 of No Moat Philanthropy are directly related to this, how connecting and sharing with others can advance your foundation’s mission.

Principle #4: Value every interaction as an opportunity to advance your mission

Our tagline and our strategy are one and the same: We invest in great ideas and the people who power them. We know that the only way anything happens is through people. Any place or field, therefore, is limited by the ambitions and the skills of the people in it.

The Bush Fellowship has been a flagship program of the Foundation for decades. We hear repeatedly from Bush Fellows that the experience changed what they thought was possible in their life and career. With the Bush Fellows program as our source code, we’ve been working for the past five years to ensure that all of our programs have the same effect. How can we encourage people to think bigger and think differently? How can we be a force for optimism?

This notion of a foundation being a force for optimism is not an obvious one. After all, we mostly tell people no. Last year, 95 percent of people who applied for the Bush Fellowship did not receive one. We’ve worked diligently to make sure all applicant interactions with us are helpful and encouraging, regardless of grant or fellowship outcome. And our surveys suggest the work is paying off. For example, 79 percent of declined Bush Fellowship applicants said the process increased their beliefs that they can accomplish “a lot.”

“If we do grantmaking right, we will create more good by what we inspire than by what we directly fund.”

To have this impact with each applicant, we:

Operate hotlines to speak with Bush staff. For our open programs, we have established hotlines for potential applicants. We will speak with people as many times as they desire to provide coaching on their idea or proposal. For applicants, this is a way to clearly understand what we are looking for and to vet ideas with us. For Bush staff, this is a way to provide coaching and encouragement to strengthen proposals and to influence activities beyond those we fund.

Give feedback about declined applications. We offer feedback to declined applicants for our major grant and fellowship programs because we see this as another valuable opportunity to provide coaching and encouragement. We have also witnessed applicants using the feedback to improve their plans and proposals, which benefits both them and us. This two-way dialogue also allows applicants to share how we can improve the process for them.

Find ways to support declined applicants. In the course of our processes, we learn about far more amazing people and organizations than we can actually fund. Therefore, we try to find ways to be useful to more than just the limited number of accepted applicants. For example, we consider declined Bush Fellowship finalists to be part of our “Bush Network” and invite them to bushCONNECT. We also provide declined Bush Prize finalists with a $10,000 grant. In our hiring process, we offer unsuccessful finalists the chance to meet with our hiring consultant for an individual coaching session. In addition, across all our programs and operations, we try to craft our applications and our processes so that the experience of applying adds value to an applicant’s thinking and planning.

Every interaction is an opportunity to influence and be influenced.  Every interaction is an opportunity for shared learning. And that brings me to our fifth and final principle…

Bush-altlogo-color Principle #5: Share as you go.

In the past five years, we’ve been working to get more of what we are thinking — and learning — out to the community. This has required adjusting our standards and prioritizing just getting something out, even if it is not glossy and beautiful. It has required a new, shared understanding with grantees and Fellows that their reports and reflections will be public, so as many people as possible can benefit from their experience. It has required designing our internal work — like strategy documents for the Board — with external audiences in mind so they are ready to share.

We believe that if we do it right, we can have as much and potentially more impact from sharing the stories and spreading the lessons from our grantees and Fellows as from the investments themselves. This belief is at the heart of all our communications (see learning paper: “Communications as Program”) and is also reinforced with specific tactics such as:

“We potentially have more impact from sharing the stories and spreading the lessons from our grantees and Fellows.”

Post grantee reports on our website. We introduced “Learning Logs” to make grant reports public, and we hope, to give them life and utility beyond our walls. We refer prospective applicants to relevant learning logs as they craft their proposals, and we hear from applicants that they have indeed learned from them. Grantees and Fellows also share that they read one another’s Learning Logs as a way to get new ideas for overcoming barriers.

Share lessons along the way. We are publishing learning papers (like this one) as we believe we have something useful to share. We intended this to lower the bar of who, when and how we share. Our learning papers are not beautiful. Most of them are not based on statistically significant evaluation methodologies. They simply document a staff effort to process something we are working on and to share our reflections.

Tie evaluation to audience analysis. We invest heavily in external evaluations of our work, but in doing so we have found that the end-product is often only useful to our staff and key stakeholders. Consequently, we introduced a different approach to thinking about evaluation with a sharing mindset. We use a framework to identify the audiences who might care about or benefit from the lessons of an evaluation, what questions are relevant to each group, and what form or output would be most useful to them.

Webinar to the max. Webinars are not a particularly novel activity; however, we view them as a core tool of permeability. We host a webinar at the beginning of every application period for Grant and Fellowship programs to explain the process and what we are looking for. We also host them when we have a job opening to discuss the role and what it is like to work here. We host them annually for our Foundation initiatives to explain what we are up to and where we are headed. Most webinars feature a staff presentation followed by an open Q&A with videos archived on our website for anyone who missed it.

If you’ve been reading this series all week, you might be wondering when I’m going to get to the downsides of No Moat Philanthropy. All new approaches have their pain points.  So, come back tomorrow and I’ll share our pain and why we believe it is worth it.

--Jen Ford Reedy

No Moat Philanthropy Part 3: Building Your Network
October 4, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we are devoting our blog space all week to the series. This is the third post in the five-part series.

Reedyjenniferford-croppedIn yesterday’s post I shared how we have tried to bring different perspectives into the Foundation.  Today’s post is mostly about getting out of the Foundation, to meet new people.  This is the third principle of No Moat Philanthropy.

Principle #3: Continuously and intentionally connect with new people

Five years ago we had close working relationships with people in each of our initiative areas. While we valued those relationships, we kept a pretty tight circle. We knew people wanted money from us, and we also knew their chances of receiving it were slim. This can be awkward and who wants that? While avoiding awkwardness can make life more pleasant, we now believe embracing that awkwardness actually makes us smarter. While we can only fund a limited number of people and organizations, interacting with lots and lots of people and organizations helps us better understand our region and make better, more informed strategic choices and funding decisions.

We believe in the power of networks. We believe that a community’s strength and diversity of connections help define its capacity for resilience and innovation. We work to ensure we are continuously connecting with new and different people. Each year, we set outreach priorities for geographic areas, cultural communities and/or sectors based on our analysis of where our network is weakest. Then we strive to make new connections in a way that creates connections between others, too. Specifically we:

“We believe that a community’s strength and diversity of connections help define its capacity for resilience and innovation.”

Hold office hours to meet with people all around the region. We hold “office hours” in communities around the region for anyone interested in with our Foundation staff. These are sometimes coupled with a listening session, co-hosted with a local partner, that allow us to understand what issues are most important to the community.

Sponsor and attend other people’s events. We introduced an open process to request Bush Foundation sponsorship of events. We had been sponsoring some events, but we never considered it a program strategy. One of the primary criteria for event sponsorship is whether it will help us connect with people who might benefit from learning about our work. This might include having a Bush Foundation booth manned by staff members who are there to meet and field questions from attendees.

Host events designed for connection. We were already hosting a number of events to build relationships with and among our Fellows and grantees. In the past five years, however, we have taken our events strategy to a higher level by focusing on connecting people across our programs with people beyond our existing grantee and Fellowship networks. The best example of this is bushCONNECT, our flagship event which brings together 1,100 leaders from the region. To ensure we are attracting individuals beyond our community network, we engage “recruitment partners” from around the region who receive grant support to recruit a cohort from within their network to bring to the event, thereby ensuring bushCONNECT attendees more fully represent the geography — and diversity — of our region.

Take cohorts of people to national events. We also offer scholarships for cohorts of people from our region to attend national conferences together. During the event, we create opportunities to build connections with and among the attendees from the region. This allows us to meet and support more people in the region, build attendees’ individual networks, and ensure leaders in our region are both contributing to and benefitting from national conversations.

We are not throwing parties for fun.  We see relationship building as core to our strategy.  We see every interaction as an opportunity to influence and be influenced.  More on that tomorrow.

--Jen Ford Reedy

No Moat Philanthropy Part 2: Bringing the Outside In  
October 3, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we are devoting our blog space all week to the series. This is the second post in the five-part series.

Reedyjenniferford-croppedIn the past five years, we have been working hard at the Bush Foundation to go beyond transparency to permeability.  In yesterday’s post, I described our work to ensure we are sourcing and supporting the best ideas from the communities we serve.  Today I’ll share Principle #2 of No Moat Philanthropy and the ways we are working to ensure our work is informed by and improved by many different perspectives.

Principle #2: Bring lots of perspectives into your strategy design and decision-making

Five years ago, it said on our website to let us know if you had a good idea that aligned with our strategy, but there was no clear way for people to do so. We had formal advisors on our initiatives and advisors on the ground in North Dakota and South Dakota, whom we kept secret. While we talked a lot about co-creation, in practice it was hard to develop and nurture true partnerships with organizations given our very specific agenda and the power dynamics in our funding relationships.

Now, to ensure we are being shaped by more people and more perspectives, we:

Create learning cohorts to shape our strategies. In the early stages of learning about a new area, we invite others to learn with us and shape our thinking. For example, to inform how we should best integrate the arts into our work, we created the Community Creativity Cohort, providing organizations a $100,000 operating grant and asking them to attend a few workshops and provide counsel (see learning paper “Lessons from the Community Creativity Cohort”). As we develop our strategy to support individualizing education, we have an advisory group of regional experts in Native education to help us understand how our strategy can be most relevant in Native communities.

Bush-altlogo-colorUse external selectors. Historically, we have engaged community leaders to select Bush Fellows, and we have expanded that practice to other programs, including the use of state-level advisory committees to select Bush Prize winners and working through state-level intermediaries to promote and award our smaller-scale Community Innovation grants.

Hire staff and recruit board members differently. We have made numerous changes to our staff hiring and board recruitment practices to attract people from a variety of backgrounds with different perspectives. For staffing, we have always hired from a variety of professional backgrounds, and while we continue to do so, we are also now focusing on diversity in race and cultural background. In three years, we increased the percentage of Bush staff who identify as people of color from a 14 percent to 50 percent. From a Board perspective, we set (and met) specific five-year targets for Board composition, focusing primarily on geographic and racial diversity.

Host internal Fellows. In addition to staff diversification, we created an internal Fellows program designed to routinely bring new and different perspectives into our work. The Ron McKinley Philanthropy Fellows program, now operated by the Minnesota Council on Foundations, hires professionals from communities underrepresented in foundation leadership to work at foundations for three years. We have hosted 11 Fellows and hired four of them into permanent positions.

Build staff and board intercultural competence. If we really want to understand perspectives other than our own, we need the skills to do so. We invest heavily in staff development and board learning and have placed particular emphasis on intercultural competence. We hope that training, combined with out-of-the-office interactions and learning experiences, make us more aware of our biases, better able to truly understand the lived experiences of others, more effective in truly engaging and working with people across the region, and better able to make smart decisions and design strategies that actually work.

In combination, these tactics have given us more opportunity to hear different perspectives in our work and better skills to truly understand different perspectives in our work. Tomorrow I will share Principle #3, how to continuously and intentionally connect with new people.

--Jen Ford Reedy

No Moat Philanthropy Part 1: Opening Up  
October 2, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we are devoting our blog space all week to the series. This is the first post in the five-part series.

Reedyjenniferford-croppedThere’s a famous philanthropy quote that defines foundations as “a large body of money completely surrounded by people who want some.”

There’s truth in this statement, and it can lead foundations to have a fortress mentality — building moats and barricades in the form of needle-eye guidelines or brick wall websites. The stronger our defenses, however, the more difficult it is to be exposed to enough ideas and engage with enough people to be truly effective.

Over the past five years at the Bush Foundation, we have worked actively against this fortress mentality, first by adopting a set of core operating values, that helped to fuel and shape what was to follow. We believe our efforts have made us smarter and more effective. Over the next five days I’ll describe what else we have done, in the form of Five Principles of No Moat Philanthropy:

“Being truly open to the ideas of others has made us smarter and more effective.”

Principle #1: Get excited about other people’s ideas

Five years ago, we operated initiatives focused on three specific goals. This approach posed some challenges, and in our pursuit of these goals, we became our own largest strategic constraint. Planning and executing the work at a pace to consume all of our payout was difficult. It was also difficult to be relevant in all corners of the region and to fund the best ideas without having ways to solicit and consider ideas that were not our own. Basically, we were only as smart as we were smart and only as effective as we were effective.

In the past five years, we have changed both our mindset and our processes to try to find the best possible ideas and to trust and invest in others to do the work. Specifically, we have worked to:

Do less. Enable more. The first thing we did was to ease our grip on controlling our funding. We adopted “do less, enable more” as a mantra to push ourselves to focus as much as possible on getting money out to community organizations. We cut the number of consultants we were directly managing to advance our agenda and redirected those funds to grants. Within one year, we increased the percentage of our payout that goes out in the form of grants from 64% to 75%.

Bush-altlogo-colorBalance the proactive with the responsive. We now invest about half of our grants in strategic initiatives that advance our Foundation priorities and about half in open grantmaking programs that allow us to fund people and communities to advance their own priorities. This balance allows us to use our power to proactively advance goals while also being available to respond to emerging challenges, encourage unexpected bursts of community momentum and support way-out-there new ideas. We believe these are some of the highest-return investments we can make.

Harness the power of open grant programs. We believe that traditional open grantmaking can be every bit as powerful and strategic as ambitious, proactive initiatives if done thoughtfully and well. We now have four standing open grant programs: community innovation grants, the Bush Prize, event sponsorships and ecosystem grants. We also have used one-off open processes four times as we learn about a particular issue or approach. These open programs allow us to engage with lots of organizations on lots of issues across lots of communities, helping us to stay informed and relevant on regional issues. As a learning tool, our one-off grant programs allow us to quickly understand the players and the various approaches in a particular issue area across the entire region we serve. Participating organizations have a better opportunity to showcase their work and compete on a level playing field for funding. Between 2012 and 2016, the amount of our funding that was awarded through some sort of competitive process increased from 8 percent to 72 percent.

Commit to followership. Five years ago, the goals of our initiatives were so specific and our tactics so defined that we were unable to collaborate easily with others. We established “willingness to follow” as a principle within our operating values, and to make this easier, we created a President’s Partnership and Innovation Fund that allows us to contribute to collaborative funder efforts, even when not in our focus areas. Within our focus areas, we now have an explicit principle to be open to “adjacent” investments when there is collaborative energy.

We believe that being truly open to the ideas of others has made us smarter and more effective.  Tomorrow I’ll share what we have done to bring more and different perspectives into our program strategy and our grantmaking.

To be continued... 

--Jen Ford Reedy

 

Opening Up the Good and Bad Leads to Stronger Communities and Better Grantmaking
September 28, 2017

Hanh Cao Yu is Chief Learning Officer at The California Endowment.  She has been researcher and evaluator of equity and philanthropy for more than two decades. 

This post is part of the Glasspockets #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new research and 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.

Hanh-Cao-Yu-photoMore than a year ago when I began my tenure at The California Endowment (TCE), I reflected deeply about the opportunities and challenges ahead as the new Chief Learning Officer.  We were six years into a complex, 10-year policy/systems change initiative called Building Healthy Communities (BHC).  This initiative was launched in 2010 to advance statewide policy, change the narrative, and transform 14 of California’s communities most devastated by health inequities into places where all people—particular our youth—have an opportunity to thrive.  This is the boldest bet in the foundation’s history at $1 billion and the stakes are high.  It is not surprising, then, that despite the emphasis on learning, the evaluation of BHC is seen as a winning or losing proposition. 

“By acknowledging our mistakes, our focus has sharpened and our dual roles as changemakers and grantmakers have continued to evolve.”

As I thought about the role of learning and evaluation in deepening BHC’s impact, I became inspired by the words of Nelson Mandela: “I never lose.  I either win or I learn.”  His encouragement to shift our mindset from “Win/Lose” to “Win/Learn” is crucial to continuous improvement and success.  

I also drew from the insights of Amy Edmondson who reminds us that if we experience failure, not all failures are bad.  According to Edmondson, mistakes can be preventable, unavoidable due to complexity, or even intelligent failures.  So, despite careful planning and learning from decades of research on comprehensive community initiatives and bold systems change efforts, in an initiative as complex as BHC, mistakes can and will occur. By spurring change at community, regional and state levels, and linking community mobilization with sophisticated policy advocacy, TCE was truly venturing into new territory when we launched BHC.

BHC's Big Wins and Lessons 

At the mid-point of BHC, TCE staff and Board paused to assess where we have been successful and where we could do better in improving the conditions under which young people could be healthy and thrive in our underserved communities.  The results were widely shared in the 2016 report, A New Power Grid:  Building Healthy Communities at Year 5.

As a result of taking the time to assess overall progress, we identified some of BHC's biggest impacts to date. In the first five years, TCE and partners contributed to significant policy/system wins:

  • Improved health coverage for the underserved;
  • Strengthened health coverage policy for the undocumented;
  • Improved school climate, wellness and equity;
  • Prevention and reform within the justice system;
  • Public-private investment and policy changes on behalf of boys and young men of color; and
  • Local & regional progress in adoption of “Health In All Policies,” a collaborative approach incorporating health considerations into decision-making across all policy areas

Our Board and team are very pleased with the results and impact of BHC to date, but we have been committed to learning from our share of mistakes. 

Along with the victories, we acknowledged in the report some hard lessons.  Most notable among our mistakes were more attention to:

  • Putting Community in “Community-Driven” Change.  Armed with lessons on having clarity about results to achieve results, we over thought the early process.  This resulted in prescriptiveness in the planning phase that was not only unnecessary, but also harmful. We entered the community planning process with multiple outcomes frameworks and a planning process that struck many partners as philanthropic arrogance. The smarter move was to engage community leaders with the clarity of a shared vision and operating principles, and create the space for community leaders and residents to incubate goals, results, and strategy. Fortunately, we course corrected, and our partners were patient while we did so.
  • Revisiting assumptions about local realities and systems dynamics.  In the report, we discussed our assumption about creating a single locus of inside-out, outside-in activity where community residents, leaders and systems leaders could collaborate on defined goals. It was readily apparent that community leaders distrusted many “systems” insiders, and systems leaders viewed outsider/activists as unreasonable. We underestimated the importance of the roles of historical structural inequalities, context, and dynamics of relationships at the local level.  Local collaboratives or “hubs” were reorganized and customized to meet local realities, and we threw the concept of a single model of collaboration across all the sites out the window.

Some course corrections we made included adjusting and sharpening our underlying assumptions and theory of change and taking on new community-driven priorities that we never anticipated early on; examples include school discipline reform, dismantling the prison pipeline in communities of color through prevention, and work that is taking place in TCE’s Boys & Young Men of Color portfolio.  By acknowledging our mistakes, our focus has sharpened and our dual roles as changemakers and grantmakers have continued to evolve. 

“Some partner feedback was difficult to hear, but all of it was useful and is making our work with partners stronger.”

Further, significant developments have occurred since the report:

Positioning “Power Building” as central to improving complex systems and policies.  In defining key performance indicators, we know the policy milestones achieved thus far represent only surface manifestations of the ultimate success we are seeking.  We had a breakthrough when we positioned “building the power and voice” of the adults and youth in our communities and “health equity” at the center of our BHC North Star Goals and Indicators.  Ultimately, we’ll know we are successful when the power dynamics in our partner communities have shifted so that adult and youth residents know how to hold local officials accountable for full, ongoing implementation of these policies.

Continuing to listen to our partners.  In addition to clarifying our North Stars, we sought further mid-point advice from our partners, reaching out to 175 stakeholders, including 68 youth and adult residents of BHC communities, for feedback to shape the remainder of BHC’s implementation and to inform our transition planning for the next decade.  Some of what our partners told us was difficult to hear, but all of it was useful and is making our work with partners stronger.    

From these lessons, I challenge our philanthropic colleagues to consider:

  • How can we learn to detect complex failures early to help us go beyond lessons that are superficial? As Amy Edmonson states, “The job of leaders is to see that their organizations don’t just move on after a failure but stop to dig in and discover the wisdom contained in it.”
  • In complex initiatives and complex organizations, what does it take to design a learning culture to capitalize successfully on mistakes? How do we truly engage in “trial and error” and stay open to experimentation and midcourse corrections?  How can we focus internally on our own operations and ways of work, as well as being willing to change our strategies and relationships with external partners?  Further, how do we, as grantmakers responsible for serving the public good, take responsibility for making these lessons #OpenForGood so others can learn from them as well?

It is worth noting that a key action that TCE took at the board level as we embarked on BHC was to dissolve the Board Program Committee and replace it with Learning and Performance Committee.  This set-up offered consistent opportunity for learning from evaluation reports between the Board, the CEO, and the management team and for sharing our learnings publicly to build the philanthropic field.  Now, even as we enter the final phase of BHC, we continue to look for ways to structure opportunities to learn, and I can say, “We are well into a journey to learn intelligently from our successes as well as our mistakes to make meaningful, positive impacts.”

--Hanh Cao Yu

Championing Transparency: The Rockefeller Foundation Is First to Share All Evaluations As Part of #OpenForGood
September 26, 2017

The Rockefeller Foundation staff who authored this post are Veronica Olazabal, Director of Measurement, Evaluation, and Organizational Performance; Shawna Hoffman, Measurement, Evaluation, and Organizational Performance Specialist; and Nadia Asgaraly, Measurement and Evaluation Intern.

This post is part of the Glasspockets #OpenForGood series in partnership with the Fund for Shared Insight. The series explores new research and 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.

Veronica Olazabal
Veronica Olazabal
Shawna Hoffman
Shawna Hoffman
Nadia Asgaraly
Nadia Asgaraly

TRF Color LogoToday, aligned with The Rockefeller Foundation's commitments to sharing and accountability, we are proud to be the first foundation to accept the challenge and proactively make all of our evaluation reports publicly available as part of Foundation Center's #OpenForGood campaign.

A History of Transparency and Sharing

Since its founding more than 100 years ago, The Rockefeller Foundation's mission has remained unchanged: to promote the well-being of humanity throughout the world. To this end, the Foundation seeks to catalyze and scale transformative innovation across sectors and geographies, and take risks where others cannot, or will not. While working in innovative spaces, the Foundation has always recognized that the full impact of its programs and investments can only be realized if it measures - and shares - what it is learning. Knowledge and evidence sharing is core to the organization's DNA dating back to its founder John D. Rockefeller Sr., who espoused the virtues of learning from and with others—positing that this was the key to "enlarging the boundaries of human knowledge."

“To ensure that we hold ourselves to this high bar, The Rockefeller Foundation pre-commits itself to sharing the results of its evaluations - well before the results are even known.”

Evaluation for the Public Good

Building the evidence base for the areas in which we work is the cornerstone of The Rockefeller Foundation's approach to measurement and evaluation. By systematically tracking progress toward implementation and outcomes of our programs, and by testing, validating, and assessing our assumptions and hypotheses, we believe that we can manage and optimize our impact. Through the documentation of what works, for who, and how/under what conditions, there is potential to amplify our impact, by crowding-in other funders to promising solutions, and diverting resources from being wasted on approaches that prove ineffectual.

But living out transparency as a core value is not without its challenges. A commitment to the principle of transparency alone is insufficient; organizations, especially foundations, must walk the talk. Sharing evidence requires the political will and human resources to do so, and more importantly, getting comfortable communicating not only one's successes, but also one's challenges and failures. For this reason, to ensure that we hold ourselves to this high bar, The Rockefeller Foundation pre-commits itself to sharing the results of its evaluations - well before the results are even known. Then, once evaluation reports are finalized, they are posted to the Foundation website, available to the public free of charge.

#OpenForGood Project

The Foundation Center's #OpenForGood project, and IssueLab's related Results platform, help take the Foundation's commitment to sharing and strengthening the evidence base to the next level. By building a repository where everyone can identify others working on similar topics, search for answers to specific questions, and quickly identify where knowledge gaps exists, they are leading the charge on knowledge sharing.

The Rockefeller Foundation is proud to support this significant effort by being the first to contribute its evaluation evidence base to IssueLab: Results as part of the #OpenForGood movement, with the hope of encouraging others to do the same.

-- Veronica Olazabal, Shawna Hoffman, and Nadia Asgaraly

Trend to Watch: Using SDGs to Improve Foundation Transparency
September 19, 2017

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

Janet Camarena PhotoAs Foundation Center's director of transparency initiatives, one of the most interesting parts of my job is having the opportunity to play "transparency scout," regularly reviewing foundation websites for signs of openness in what is too often a closed universe. Some of this scouting leads to lifting up practices that can be examples for others on our Transparency Talk blog, sometimes it leads to a new transparency indicator on our assessment framework, and sometimes we just file it internally as a "trend to watch. "

Today, it's a combination of all three; we are using this blog post to announce the launch of a new, "Trend to Watch" indicator that signals an emerging practice: the use of the Sustainable Development Goals to improve how foundations open up their work to the world.

Sustainable Development GoalsThe 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. There are a total of 17 goals, such as ending poverty, zero hunger, reduced inequalities, and climate action. Written deliberately broad to serve as a collective playbook that governments and private sector alike can use, they can also serve as a much needed shared language across philanthropy and across sectors to signal areas of common interest, and measure shared progress.

And let's face it, 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.

Let's take a look at how some foundation websites are using the SDGs to more clearly explain their work:

Silicon Valley Community Foundation (SVCF)

One of my favorite examples is from a simple chart the Silicon Valley Community Foundation shared on its blog, because it specifically opens up the work of its donor-advised funds using the SDGs. Donor-advised funds are typically not the most transparent vehicles, so using the SDGs as a framework to tally how SVCF's donor-advised funds are making an impact is particularly clever, refreshing, and offers a new window into a fast-growth area of philanthropy.

A quick glance at the chart reveals that quality education, good health and well-being, and sustainable cities and communities are the most common priorities among Silicon Valley donors.

GHR Foundation

A good example of how the SDGs can be used as a shared language to explain the intended impact of a grant portfolio is from GHR Foundation in Minnesota. I also like this example because it shows how the SDGs can be effectively used in both global and domestic grant portfolios. GHR uses the SDG iconography across all of its portfolios, as sidebars on the pages that describe foundation strategies. GHR's "Children in Families" is a core foundation grantmaking strategy that addresses children and families in need on a global scale. The portfolio name is a broad one, but by including the SDG iconography, web visitors can quickly understand that GHR is using this program area to address poverty, hunger, as well as lead to outcomes tied to health and well-being:

GHR is also able to use the SDG framework to create similar understanding of its domestic work. Below is an example from its Catholic Schools program serving the Twin Cities:

Through the visual cues the icons provide, I can quickly determine that in addition to aligning with the quality education goal, that this part of GHR's portfolio also addresses hunger and economically disadvantaged populations through its education grantmaking. This could also signal that the grantmaker interprets education broadly and supports the provision of wrap-around services to address the needs of low-income children as a holistic way of addressing the achievement gap. That's a lot of information conveyed with three small icons!

Tableau Foundation

The most sophisticated example comes to us from the tech and corporate grantmaking worlds--the Tableau Foundation. Tableau makes data visualization software, so using technology as a means to improve transparency is a core approach, and they are using their own grantmaking as an example of how you can use data to tell a compelling visual story. Through the interactive "Living Annual Report" on its website, Tableau regularly updates its grantmaking tallies and grantee data so web visitors have near real-time information. One of the tabs on the report reveals the SDG indicators, providing a quick snapshot of how Tableau's grantmaking, software donations, and corporate volunteering align with the SDGs.

As you mouse over any bar on the left, near real-time data appears, tallying how much of Tableau's funding has gone to support each goal. The interactive bar chart on the right lists Tableau's grantees, and visitors can quickly see the grantee list in the context of the SDGs as well as know the specific scale of its grantmaking to each recipient.

If you're inspired by these examples, but aren't sure how to begin connecting your portfolio to the Global Goals, you can use the SDG Indicator Wizard to help you get started. All you need to do is copy and paste your program descriptions or the descriptive language of a sample grant into the Wizard and its machine-learning tools let you know where your grantmaking lands on the SDG matrix. It's a lot of fun – and great place to start learning about the SDGs. And, because it transforms your program language into the relevant SDG goals, indicator, and targets, it may just provide a shortcut to that new strategy you were thinking of developing!

What more examples? The good news is we're also tracking SDGs as a transparency indicator at "Who Has Glasspockets?" You can view them all here. Is your foundation using the SDGs to help tell the story of your work? We're always on the lookout for new examples, so let us know and your foundation can be the next trend setter in our new Trend to Watch.

-- Janet Camarena

Is Your 990-PF Working Against You?
September 12, 2017

Lauren Haverlock has practiced public accounting since 2004. As a senior manager at Moss Adams LLP, she provides compliance and consulting services to all types of exempt organizations, including public charities and private foundations.

This post is part of a Transparency Talk series, presented in partnership with the Conrad N. Hilton Foundation, examining the importance of the 990-PF, the informational tax form that foundations must annually file. The series will explore the implications of the open 990; how journalists and researchers use the 990-PF to understand philanthropy; and its role, limitations, and potential as a communications tool.

Join us at a session about the Open 990PF in partnership with Grantmakers of Oregon and Southwest Washington. Learn more or register here.

Lauren HaverlockAs a CPA specializing in tax exempt organizations, the annual 990-PF form that private foundations must file with the Internal Revenue Service (IRS) is the source of many questions I receive. And now that this data is not just publicly available, but open, it is wise for us all to take a closer look at whether your 990-PF may unintentionally be working against you.

Of course, the IRS has been gathering data on 990-PF filers for years. It has used this data to better identify and investigate anomalous and non-compliant private foundations. But now, all electronically filed Form 990-PF data is available to the general public in machine readable formats opening up the investments, portfolio performance, grant recipients, expenses, and transactions of foundations like never before.

Now that this information is publicly available in machine readable format, it can be easily aggregated to provide valuable insight into the industry as a whole. It can also highlight outliers. Ultimately, the availability of this data provides a window into private foundations, many of which were previously used to operating outside the public eye. As Glasspockets has reported, currently only 10% of U.S. foundations even have a website, so if your foundation is among the 90% that do not, that means that your 990-PF is the only source of intelligence about your organization. 

In the new world of readily available machine-readable Form 990s, private foundations will want to verify their tax filings—the source of their data—are prepared completely and accurately. Common mistakes to watch out for when filing the Form 990-PF are detailed in this article.

Transactions

Private foundations face more burdensome regulations on investments and expenses than 501(c)(3) public charities:

  • Restrictions on how money is spent
  • Requirements as to how much money is used for charitable purposes
  • Rules regarding how endowments can be invested

The consequences for noncompliance in regards to the above transactions can range from excise-tax penalties assessed on the foundation or its managers to revocation of exempt status.

Specific items to be aware of include the following:

  • Prohibited transactions with a disqualified person, including trustees, directors, and foundation managers as well as certain family members and businesses of the aforementioned.
  • Failure to meet the minimum distribution requirement in a previous year
  • Excess business holdings of an active trade or business
  • Risky asset investments that could jeopardize a foundation’s charitable purpose (for example, not having a diversified portfolio of investments)
  • Certain types of expenditures, such as foreign grants, grants to for-profit entities, unapproved scholarships, or lobbying and political activities, are either prohibited outright or require extra diligence to be permissible. 

For example, foundations are permitted to reasonably compensate a disqualified person for personal services. And an organization can grant funds to foreign or for-profit organizations if expenditure responsibility is exercised. And more details about what is permissible in regards to political funding appears below. But the main point here is just the affirmation of these closely scrutinized transactions could raise the risk profile of a private foundation.

Net Investment Income

Although considered tax-exempt, private foundations are still required to pay an excise tax at a rate of 1% or 2% of the income they generate. As such, investment income is of intense focus when foundations file their tax returns. Foundations should remember that the calculation of taxable income should be undertaken with the same tax-reduction mindset that for profit entities and individuals undertake.   

“Ultimately, the availability of this data provides a window into private foundations, many of which were previously used to operating outside the public eye.”

The Form 990-PF reports income both on a book and on a tax basis on Page one. A foundation should ensure that it is properly capturing all taxable income from all sources and not simply assuming that taxable income is the amount reported on their financial statements. For example, private foundations with “alternative investments,” including private equity, hedge funds, managed futures, real estate, commodities and derivatives contracts, could receive a Schedule K-1 from their investments. Flow-through income from that Schedule K-1 should be reported in the foundation’s tax-basis income statement. 

Additionally, any excise tax a foundation pays could bring negative attention. If an entity consistently pays the higher excise tax of 2%, it could lead donors to question why the foundation is giving money to the IRS in the form of taxes rather than providing grants.  

 

Balance-Sheet Investments

Private foundations are required to report the details of their investments, including the number of shares and types of publicly traded stock held. Reporting this can often be burdensome and feel invasive, but failure to include this information could result in an incomplete Form 990-PF. An incomplete Form 990-PF is deemed to have never been filed in the first place, which could result in late-filing penalties or revocation of exemption if it occurs three years in a row.

Lobbying and Political Activities

Private foundations are prohibited from undertaking any lobbying or political activities, unlike 501(c)(3) public charities, which are permitted to undertake limited lobbying activities. However, not all actions related to politics are prohibited—private foundations can undertake certain bipartisan educational activities or support charities that undertake lobbying if they follow certain guidelines. For example, the specific project grant rule, when followed, could allow a private foundation to fund a project that explicitly has lobbying activities.

Grant Reporting

The grant reporting schedule seems innocuous, but it can weave a story of relationships that extend beyond grantor and grantee. The grant recipients of private foundations are public, which means the public can gather data regarding which organizations a foundation supports by using data-mining tools.

Open-990-borderAlthough this information can be valuable to fundraisers and your grantmaking peers, it can also reveal an informal or unclear grantmaking process and serve as an inadvertent disclosure of taxable expenditures. As such, a foundation should ensure that there is a due diligence process related to grant recipients that verifies if a recipient is a qualified 501(c)(3) public charity, and use the space provided in the 990-PF (Part XV) to explain its grantmaking process, deadlines, and eligibility requirements.

While grants to other types of entities are permitted, if certain expenditure responsibility procedures are not followed, this type of granting could possibly raise a red flag. Any grantee that reports a foreign address, appears to be a corporation, or otherwise stands out could still garner a foundation unwanted attention from the general public and IRS. Grantmakers making grants to foreign organizations also have the option of using a process called equivalency determination to demonstrate how they determined that a foreign organization is equivalent to a U.S. charity. The grantmaker is required to collect a specific set of data, as outlined in IRS Revenue Procedure 92-94, that provides details about the grantee’s operations and finances.

Private foundation contributor schedules are public, which means anyone can pull these donor lists. With open-source data, foundation support can be easily compiled and aggregated to better understand an ecosystem of donors and support—keeping a private foundation accountable to the community it serves.

Even though the Form 990-PF is a government filing, its public nature and the increased openness of its data may lead to both greater interest and scrutiny in the private foundations filing it. Take control of your financial story by filing timely, complete, and accurate Form 990 returns, paying special attention to the areas noted above, and ultimately what increases may be a greater understanding of the field itself.

--Lauren Haverlock

Share This Blog

  • Share This

About Transparency Talk

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

    The views expressed in this blog do not necessarily reflect the views of the Foundation Center.

    Questions and comments may be
    directed to:

    Janet Camarena
    Director, Transparency Initiatives
    Foundation Center

    If you are interested in being a
    guest contributor, contact:
    glasspockets@foundationcenter.org

Subscribe to Transparency Talk

Categories