Transparency Talk

Category: "Accountability" (93 posts)

Evolving Towards Equity, Getting Beyond Semantics
December 17, 2018

Mona Jhawar serves as learning and evaluation manager for The California Endowment.

Mona JhawarIn my previous post, I reflected on The California Endowment’s practice of conducting a Diversity, Equity, and Inclusion (DEI) Audit and how it helps us to stay accountable to intentionally integrating and advancing these values across the foundation.

We started this practice with a “Diversity and Inclusion” Audit in 2008 and as part of our third audit in 2013, The California Endowment (TCE) adjusted the framing to a “Diversity, Equity, and Inclusion” Audit. This allowed us to better connect the audit with how the foundation viewed the goals of our strategy and broadened the lens used through the audit process.

While this could be viewed as a semantic update based on changes in the nonprofit and philanthropic sectors, by 2016 our audit results reflected how TCE described both our core values that lead with principles of DEI and the ultimate outcome of our work that point towards health equity and justice for all. And although we didn’t make a corresponding change to reflect this shift in what the audit specifically assesses, select findings from our most recent audit highlight how not only diversity, but how equity is also being operationalized within the foundation.

Getting beyond the numbers

In some ways, the most straightforward entry point for DEI discussions is to first examine diversity by assessing quantitative representation within the foundation at the board and staff level, among our partners, contractors, vendors, and investment managers. Though it’s a necessary beginning, reporting and reflection, however, cannot stop with counting heads.  While our audit may have started as a way to gauge inclusion through the lens of diversity, it’s become clear that collecting and examining demographic data sets the stage for critical conversations to follow.

Part of the inherent value of reflecting on diversity and representation is in service of getting beyond the numbers to discover what questions the numbers inspire. Questions such as:

  • Who’s missing or overrepresented and why?
  • What implications could the gaps in lived experiences have on the foundation, the strategies used and how our work is conducted?
  • What are the underlying structures and systems that shape the demographics of the foundation and of the organizations with which we partner?

It’s these types of questions about our demographics and diversity that help move us beyond discussions about representation into deeper discussions about equity.

The audit has been a valuable point of reflection and action planning over the past several years. It’s a comprehensive process conducted in partnership with evaluation firm, SPR, that spans an extensive number of sources.

Towards Equity and Inclusion

As TCE pursues our health equity goals, we’ve been able to define and distinguish key differences between diversity, equity, and inclusion. While diversity examines representation, we define equity as promoting fair conditions, opportunities, and outcomes. We also define inclusion as valuing and raising the perspectives and voices of diverse communities to be considered where decisions are being made. For future audits, we’re looking to refine our DEI audit goals to more explicitly focus on equity and inclusion across both our grantmaking efforts and to even more deeply examine our internal policies, practices, and operations. However, here are a few examples from our latest audit that highlight how equity and inclusion currently show up across the foundation outside of our grantmaking.

Equity in hiring

  • Recognizing the impact of structural racism and mass incarceration, TCE followed the lead of partners working to “ban the box” and the Executives’ Alliance for Boys and Men of Color to change hiring practices. TCE now utilizes a Fair Chance Hiring Policy that opens the door for hiring qualified applicants with a conviction or an arrest and shares open positions with anti-recidivism organizations.

Inclusion and equity in investments

  • In the spirit of inclusion, the criteria for our Program Related Investments (PRIs) integrate whether the PRI will engage the community it is intended to benefit as well as whether the investment will address a known health inequity or social determinant of health.
  • In recognition of structural racism leading to higher rates of incarceration within communities of color, in 2015 TCE announced that we will no longer invest in companies profiting from for-profit prisons, jails, or detention centers.

Equity in vendor selection

  • Operationalizing equity also requires considering how facility operations align with organizational values. In line with our divestment from for-profit prisons, an RFP process identified a vendor-nonprofit team that encouraged hiring formerly incarcerated and homeless community members within our onsite café. We remain committed to this approach.

The Work Ahead

We’ve accomplished a great deal. At the same time, as we evolve towards becoming an equity organization there are areas where we need to put more of our attention.

To move beyond articulating values and to get to deeper staff engagement, audit feedback suggests more staff resources are needed to connect individual functions and roles to our DEI values, including through our performance review process, particularly among non-program staff.

Connected to developing a greater vision regardless of department affiliation, we will soon embark to engage staff across the entire organization to develop a more deeply shared racial equity analysis of our work.  As part of this effort, our board is participating in racial equity trainings and adopted a resolution to utilize a racial equity lens as the foundation develops our next strategic plan.  Building on what we’re learning through our audits, in 2019 we’ll launch this effort towards becoming a racially equitable health foundation that will intentionally bring racial equity to the center of our work and how we operate.

Finally, as we continue to partner with and support community to fight for equity, there are several unanswered, imminent questions we’ll need to tackle. Within the walls of the foundation:

  • How do we hold ourselves to the same equity and inclusion principles that our partners demand of system leaders?
  • How do we confront the contradictions of how we operate as an organization rooted in a corporate or hierarchical design to share power with staff regardless of position, increase decision making transparency, and include those impacted by pending decisions in the same way we ask our systems leaders to include and respond to community?
  • With an interest in greater accountability to equity and inclusion, how do we not only tend to power dynamics but consider greater power sharing through foundation structures and current decision-making bodies both internally and externally?

Herein lies our next evolutionary moment.

--Mona Jhawar

Putting a Stop to Recreating the Wheel: Strengthening the Field of Philanthropic Evaluation
December 13, 2018

Clare Nolan is Co-Founder of Engage R+D, which works with nonprofits, foundations, and public agencies to measure their impact, bring together stakeholders, and foster learning and innovation.

Meg Long is President of Equal Measure, Philadelphia-based professional services nonprofit focused on helping its clients—foundations, nonprofit organizations, and public entities—deepen and accelerate social change.

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Clare Nolan

In 2017, Engage R+D and Equal Measure, with support from the Gordon and Betty Moore Foundation launched an exploratory dialogue of funders and evaluators to discuss the current state of evaluation and learning in philanthropy, explore barriers to greater collaboration and impact, and identify approaches and strategies to build the collective capacity of small and mid-sized evaluation firms. Our goal was to test whether there was interest in our sector for building an affinity network of evaluation leaders working with and within philanthropy. Since our initial meeting with a few dozen colleagues in 2017, our affinity network has grown to 250 individuals nationally, and there is growing momentum for finding ways funders and evaluators can work together differently to deepen the impact of evaluation and learning on philanthropic practice.

At the recent 2018 American Evaluation Association (AEA) conference in Cleveland, Ohio, nearly 100 funders and evaluators gathered to discuss four action areas that have generated the most “buzz” during our previous network convening at the Grantmakers for Effective Organizations (GEO) conference and from our subsequent network survey:

1. Improving the application of evaluation in philanthropic strategy and practice.

2. Supporting the sharing and adaptation of evaluation learning for multiple users.

3. Supporting formal partnerships and collaborations across evaluators and evaluation firms.

4. Strengthening and diversifying the pipeline of evaluators working with and within philanthropy.

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Meg Long

We asked participants to choose one of these action areas and join the corresponding large table discussion to reflect on what they have learned about the topic and identify how the affinity network can contribute to advancing the field. Through crowd-sourcing, participants identified some key ways in which action teams that will be launched in early 2019 can provide a value-add to the field.

1. What will it take to more tightly connect evaluation with strategy and decision-making? Provide more guidance on what evaluation should look like in philanthropy.

Are there common principles, trainings, articles, case studies, guides, etc. that an action team could identify and develop? Could the affinity network be a space to convene funders and evaluators that work in similar fields to share evaluation results and lessons learned?

2. What will it take to broaden the audience for evaluations beyond individual organizations? Create a “market place” for knowledge sharing and incentivize participation.

As readers of this blog will know from Foundation Center’s #OpenForGood efforts, there is general agreement around the need to do better at sharing knowledge, building evidence, and being willing to share what foundations are learning – both successes and failures. How can an action team support the creation of a culture of knowledge sharing through existing venues and mechanisms (e.g., IssueLab, Evaluation Roundtable)? How could incentives be built in to support transparency and accountability?

3. How can the field create spaces that support greater collaboration and knowledge sharing among funders and evaluators? Identify promising evaluator partnership models that resulted in collaboration and not competition.

Partnerships have worked well where there are established relationships and trust and when power dynamics are minimized. How can an action team identify promising models and practices for successful collaborations where collaboration is not the main goal? How can they establish shared values, goals, etc. to further collaboration?

4. What will it take to create the conditions necessary to attract, support, and retain new talent? Build upon existing models to support emerging evaluators of color and identify practices for ongoing guidance and mentorship.

Recruiting, hiring, and retaining talent to fit evaluation and learning needs in philanthropy is challenging due to education and training programs as well as changing expectations in the field. How can we leverage and build on existing programs (e.g., AEA Graduate Education Diversity Internship, Leaders in Equitable Evaluation and Diversity, etc.) to increase the pipeline, and support ongoing retention and professional development?

Overall, we are delighted to see that there is much enthusiasm in our field to do more work on these issues. We look forward to launching action teams in early 2019 to further flesh out the ideas shared above in addition to others generated over the past year.

If you are interested in learning more about this effort, please contact Pilar Mendoza. If you would like to join the network and receive updates about this work, please contact Christine Kemler.

--Clare Nolan and Meg Long

Living Our Values: Gauging a Foundation’s Commitment to Diversity, Equity, and Inclusion
November 29, 2018

Mona Jhawar serves as learning and evaluation manager for The California Endowment.

Mona JhawarThe California Endowment (TCE) recently wrapped up our 2016 Diversity, Equity, and Inclusion (DEI) Audit, our fourth since 2008. The audit was initially developed at a time when community advocates were pushing the foundation to address issues of structural racism and inequity. As TCE’s grantmaking responded, staff and our CEO were also interested in promoting DEI values across the entire foundation beyond programmatic spaces. Over time, these values became increasingly engrained in TCE’s ethos and the foundation committed to conducting a regular audit as a vehicle with which to determine if and how our DEI values were guiding organizational practice.

Sharing information about our DEI Audit often raises questions about how to launch such an effort. Some colleagues are in the early stages of considering whether they want to carry out an audit of their own. Are we ready? What do we need to have in place to even begin to broach this possibility? Others are interested to hear about how we use the findings from such an assessment. To help answer these questions, this is the first of a two-part blog series to share the lessons we’re learning by using a DEI audit to hold ourselves accountable to our values.

While the audit provides a frame to identify if our DEI values are being expressed throughout the foundation, it also fosters learning. Findings are reviewed and discussed with executive leadership, board, and staff. Reviews provide venues to involve both programmatic and non-programmatic staff in DEI discussions. An audit workgroup typically considers how to take action on findings so that the foundation can continuously improve and also considers how to revise audit goals to ensure forward movement. By sharing findings publicly, we hope our experience and lessons can help to support the field more broadly.

It is, however, no small feat. The audit is a comprehensive process that includes a demographic survey of staff and board, a staff and board survey of DEI attitudes and beliefs, interviews with key foundation leaders, examining available demographic data from grantee partners as well as a review of DEI-related documents gathered in between audits. Having dedicated resources to engage a neutral outsider to carry out the audit in partnership with the foundation is also important to this process. We’ve found it particularly helpful to engage with a consistent trusted partner, Social Policy Research Associates, over each of our audits to capture and candidly reflect where we’re making progress and where we need to work harder to create change.

As your foundation considers your own readiness to engage in such an audit process, we offer the following factors that have facilitated a productive and learning oriented DEI audit effort at TCE:

1. Clarity about the fundamental importance of Diversity, Equity, and Inclusion to the Foundation

The expression of our DEI values has evolved over time. When the audit started, several program staff members who focused on DEI and cultural competency developed a guiding statement on Diversity and Inclusiveness. Located within our audit report, it focused heavily on diversity although tweaks were made to the statement over time. A significant shift occurred several years ago when our executive team articulated a comprehensive set of core values that undergirds all our work and leads with a commitment to diversity, equity, and inclusion.

2. Interest in reflection and adaptation

The audit is a tool for organizational learning that facilitates continuous improvement. The process relies on having both a growth mindset and clear goals for what we hope to accomplish. Our 13 goals range from board engagement to utilizing accessibility best practices. In addition to examining our own goals, the audit shares how we’re doing with respect to a framework of institutional supports required to build a culture of equity. By comparing the foundation to itself over time we can determine if and where change is occurring. It also allows us to revise goals so that we can continue to push ourselves forward as we improve, or to course correct if we’re not on track. We anticipate updating our goals before our next audit to reflect where we are currently in our DEI journey.

3. Engagement of key leaders, including staff

Our CEO is vocal and clear about the importance of DEI internally and externally, as well as about the significance of conducting the audit itself. Our executive team, board, and CEO all contribute to the audit process and are actively interested in reviewing and discussing its findings.

Staff engagement is critical throughout audit implementation, reflection on findings, and action planning as well. It’s notable that the vast majority of staff at all levels feel comfortable pushing the foundation to stay accountable to DEI internally. However, there is a small, but growing percentage (23%) of staff who report feeling uncomfortable raising DEI concerns in the workplace suggesting an area for greater attention.

4. Capacity to respond to any findings

Findings are not always going to be comfortable. Identifying areas for improvement may put the organization and our leaders in tough places. TCE has historically convened a cross departmental workgroup to consider audit findings and tackle action planning. We considered co-locating the audit workgroup within our executive leadership team to increase the group’s capacity to address audit findings. However, now we are considering whether it would be best situated and aligned within an emerging body that will be specifically focused on bringing racial equity to the center of all our work.

5. Courage and will to repeat

In a sector with limited accountability, choosing to voluntarily and publicly examine foundation practices takes real commitment and courage. It’s always great to hear where we’re doing well but committing to a process that also raises multiple areas where we need to put more attention, requires deep will to repeat on a regular basis. And we do so in recognition that this is long term, ongoing work that, in lieu of having a real finish line, requires us to continuously adapt as our communities evolve.

Conducting our DEI audit regularly has strengthened our sense of where our practice excels—for example in our grantmaking, possessing a strong vision and authorizing environment, and diversity among staff and board. It’s also strengthened our sense of the ways we want to improve such as developing a more widely shared DEI analysis and trainings for all staff as well as continuing to strengthen data collection among our partners. The value of our DEI audit lies equally in considering findings as well as being a springboard for prioritizing action. TCE has been on this road a long time and we’ll keep at it for the foreseeable future. As our understanding of what it takes to pursue diversity, equity, and inclusion internally and externally sharpens, so will the demands on our practice. Our DEI audit will continue to ensure that we hold ourselves to these demands. In my next post, we’ll take a closer look at what we’re learning about operationalizing equity within the foundation.

--Mona Jhawar

Transparency & Start-up Philanthropy: What We Can Learn from Bezos and Zuckerberg
October 11, 2018

Janet Camarena is director of transparency initiatives at Foundation Center.

Janet Camarena PhotoIt’s hard to think of a philanthropic institution as a start-up. The phrase “start-up” conjures the image of two geeks in a garage with big dreams but very limited means. But as we all know from breathless news coverage about them, some of these once resource-constrained, scrappy start-ups have gone the distance, hit it big, and now are learning the ropes of managing another kind of start-up—the philanthropy kind.

I was recently reminded of this trajectory when a reporter from CNBC contacted me to ask about Jeff Bezos’ new Day One Fund for a story he was working on about the announcement that Bezos and his wife, novelist MacKenzie Bezos, were establishing a $2 billion philanthropic fund to help support homeless initiatives and early childhood education for low-income children. As a tech reporter, he was asking a lot of good questions to better understand the nature of organized philanthropy.  He wanted to know about things like the structure of the fund, where the funds would come from, what kind of philanthropic vehicle it might be, and the transparency and tax regulations for each kind of vehicle.

I had a strong sense of déjà vu, as I realized I’d had a very similar conversation about 18 months ago when Mark Zuckerberg and Priscilla Chan announced the launch of the Chan Zuckerberg Initiative (CZI). In choosing to structure CZI as an Limited Liability Corporation (LLC), and not a private foundation or nonprofit entity, they launched a global debate that put philanthropic transparency on the map like never before. Unlike private foundations, LLCs are not required to provide details on giving, are able to fund both for profit and nonprofit entities, and there is no transfer of funds to an entity that is regulated to serve the public good. So, suddenly topics usually reserved for the geekiest of foundation geeks--tax code, philanthropic vehicles, and the difference between traditional philanthropy and the LLC approach --were being covered by everyone from The New York Times to San Jose Mercury News.

In Bezos’ case, it’s unclear as of this writing how the Day One Fund will be structured or when we might learn more. But Axios reported last month that according to public records, the couple had “incorporated a nonprofit in Washington State called Bezos Foundation, and someone reserved the name ‘Bezos Day 1 Foundation’ for a nonprofit.”

”Philanthropic transparency is very important to building public trust and credibility for institutional giving.“

The announcement did answer long standing speculation and questions that began more than a year ago, when Bezos started a crowd-sourcing experiment asking the world via Twitter to suggest philanthropic ideas to him at the “intersection of urgent need and lasting impact.” The inquiry led to more than 46,000 responses, and much speculation about what the eventual philanthropic mission would be. In his announcement Bezos described two groups within the Day One Fund: The Day 1 Families Fund, which will support homeless support organizations such as Mary’s Place in Seattle; and the Day 1 Academies Fund, which is to fund the launch of a network of Montessori pre-schools for low-income children.

What might be most surprising to Bezos is that though his September announcement puts the focus area questions and speculations to rest, it has created a whole host of new questions about the Fund. This led me to think about our mission at GlassPockets around championing greater philanthropic transparency, and what that might look like for a start-up fund.

Philanthropic transparency is very important to building public trust and credibility for institutional giving. This is particularly true for large, highly visible, and new philanthropic initiatives but could be a helpful guide for other emergent philanthropies. So beyond the social media and the press release, what’s a newly minted philanthropist supposed to share? Based on our “Who Has Glass Pockets?” self-assessment tool, as well from the questions we get from reporters and researchers, here are some suggestions of how to think about telling the story of your start-up philanthropy:

  • Even if short on details, establish a website where people can go to look under the hood and learn more details about the work the philanthropy plans to do, how it plans to do it, and how people can stay informed of new developments. Sunlight Giving, which is a philanthropy that started up in 2014 as a result of the sale of WhatsApp to Facebook, and has already joined the GlassPockets transparency movement, made it a point to establish a website and commit to transparency early on.
  • What motivated the establishment of the fund and the issue areas? Mark Zuckerberg and Priscilla Chan provide a great example of this as the announcement for the launch of CZI was inspired by the birth of their daughter to whom they dedicated the Initiative’s vision in a “Dear Max” letter format.
  • What is the scale of the giving and what is the source of the funds?
  • How will the fund be structured? Is it a private foundation, a donor-advised fund, a limited liability corporation, or a supporting organization of a community foundation? Of these structures, the private foundation provides the most transparency because of the annual 990-PF filing detailing foundation finances, grants, and payout among other disclosures.
  • Who will be running the fund? And if it’s structured as a nonprofit, who will comprise the board of directors? Is it exclusively family members on the board, or a mix?
  • How and who will select grantees? What will the grantmaking process look like? Since this is not likely to be defined at the start-up stage, share a target date by when you hope to have this information available.
  • How will the funders get input from the communities they seek to serve? And how else will the funders learn about the issues they have identified?
  • Through what mechanism will grants and other announcements be made in the future?

It may seem like a long list, but by opening up the playbook and speaking from the heart, a new philanthropist can inspire others with their vision rather than inspiring the suspicion that inevitably comes with opacity.

--Janet Camarena

Data Fix: Do's and Don'ts for Data Mapping & More!
October 3, 2018

Kati Neiheisel is the eReporting liaison at Foundation Center. eReporting allows funders to quickly and easily tell their stories and improve philanthropy by sharing grants data.

This post is part of a series intended to improve the data available for and about philanthropy.

KatiNeiheisel_FCphotoAs many of you know, Foundation Center was established to provide transparency for the field of philanthropy. A key part of this mission is collecting, indexing, and aggregating millions of grants each year. In recent years this laborious process has become more streamlined thanks to technology, auto-coding, and to those of you who directly report your grants data to us. Your participation also increases the timeliness and accuracy of the data.

Today, over 1300 funders worldwide share grants data directly with Foundation Center. Over the 20 years we've been collecting this data, we've encountered some issues concerning the basic fields required. To make sharing data even quicker and easier, we've put together some dos and don'ts focusing on three areas that may seem straightforward, but often cause confusion.

Location Data for Accurate Mapping and Matching

Quite simply, to map your grants data we need location information! And we need location information for more than mapping. We also use this information to ensure we are matching data to the correct organizations in our database. To help us do this even more accurately, we encourage you to provide as much location data as possible. This also helps you by increasing the usability of your own data when running your own analyses or data visualizations.

DO DON'T
Do supply Recipient City for U.S. and non-U.S. Recipients. Don't forget to supply Recipient Address and Recipient Postal Code, if possible.
Do supply Recipient State for U.S. Recipients. Don't supply post office box in place of street address for Recipient Address, if possible.

Do supply Recipient Country for non-U.S. Recipients.

Don't confuse Recipient location (where the check was sent) with Geographic Area Served (where the service will be provided). 

What's Your Type? Authorized or Paid?

Two types of grant amounts can be reported: Authorized amounts (new grants authorized in a given fiscal year, including the full amount of grants that may be paid over multiple years) or Paid amounts (as grants would appear in your IRS tax form). You can report on either one of these types of amounts – we just need to know which one you are using: Authorized or Paid.

DO DON'T
Do indicate if you are reporting on Authorized or Paid amounts. Don't send more than one column of Amounts in your report – either Authorized or Paid for the entire list.
Do remain consistent from year to year with sending either Authorized amounts or Paid amounts to prevent duplication of grants. Don't forget to include Grant Duration (in months) or Grant Start Date and Grant End Date, if possible.
Do report the type of Currency of the amount listed, if not US Dollars. Don't include more than one amount per grant.

The Essential Fiscal Year

An accurate Fiscal Year is essential since we publish grants data by fiscal year in our data-driven tools and content-rich platforms such as those developed by Foundation Landscapes, including Funding the Ocean, SDG Funders, Equal Footing and Youth Giving. Fiscal Year can be reported with a year (2018) or date range (07/01/2017-06/31/2018), but both formats will appear in published products as YEAR AWARDED: 2018.

DO DON'T
Do include the Fiscal Year in which the grants were either Authorized or Paid by you, the funder. Don't provide the Fiscal Year of the Recipient organization.
Do format your Fiscal Year as a year (2018) or a date range (07/01/2017-06/31/2018). Don't forget, for off-calendar fiscal years, the last year of the date range is the Fiscal Year: 07/01/2017-06/31/2018 = 2018.

More Tips to Come!

I hope you have a better understanding of these three areas of data to be shared through Foundation Center eReporting. Moving forward, we'll explore the required fields of Recipient Name and Grant Description, as well as high priority fields such as Geographic Area Served. If you have any questions, please feel free to contact me. Thank you! And don't forget, the data you share IS making a difference!

-- Kati Neiheisel

“Because It’s Hard” Is Not an Excuse – Challenges in Collecting and Using Demographic Data for Grantmaking
August 30, 2018

Melissa Sines is the Effective Practices Program Manager at PEAK Grantmaking. In this role, she works with internal teams, external consultants, volunteer advisory groups, and partner organizations to articulate and highlight the best ways to make grants – Effective Practices. A version of this post also appears in the PEAK Grantmaking blog.

MelissaFor philanthropy to advance equity in all communities, especially low-income communities and communities of color, it needs to be able to understand the demographics of the organizations being funded (and declined), the people being served, and the communities impacted. That data should be used to assess practices and drive decision making.

PEAK Grantmaking is working to better understand and build the capacity of grantmakers for collecting and utilizing demographic data as part of their grantmaking. Our work is focused on answering four key questions:

  • What demographic data are grantmakers collecting and why?
  • How are they collecting these demographic data?
  • How is demographic data being used and interpreted?
  • How can funders use demographic data to inform their work?

In the process of undertaking this research, we surfaced a lot of myths and challenges around this topic that prevent our field from reaching the goal of being accountable to our communities and collecting this data for responsible and effective use.

Generally, about half of all grantmakers are collecting demographic data either about the communities they are serving or about the leaders of the nonprofits they have supported. For those who reported that they found the collection and use of this data to be challenging, our researcher dug a little deeper and asked about the challenges they were seeing.

Some of the challenges that were brought to the forefront by our research were:

PEAK Grantmaking reportChallenge 1: Fidelity and Accuracy in Self-Reported Data
Data, and self-reported data in particular, will always be limited in its ability to tell the entire story and to achieve the nuance necessary for understanding. Many nonprofits, especially small grassroots organizations, lack the capability or capacity to collect and track data about their communities. In addition, white-led nonprofits may fear that lack of diversity at the board or senior staff level may be judged harshly by grantmakers.

Challenge 2: Broad Variations in Taxonomy
Detailed and flexible identity data can give a more complete picture of the community, but this flexibility works against data standardization. Varying taxonomies, across sectors or organizations, can make it difficult to compare and contrast data. It can also be a real burden if the nonprofit applying for a grant does not collect demographic data in the categories that a grantmaker is using. This can lead to confusion about how to report this data to a funder.

Challenge 3: Varying Data Needs Across Programs
Even inside a single organization, different programs may be collecting and tracking different data, as program officers respond to needs in their community and directives from senior leadership. Different strategies or approaches to a problem demand different data. For instance, an arts advocacy program may be more concerned with constituent demographics and impact, while an artist’s program will want to know about demographics of individual artists.

Challenge 4: Aggregating Data for Coalitions and Collaborations
This becomes even more complex as coalitions and collaborative efforts that bring together numerous organizations, or programs inside of different organizations, to accomplish a single task. The aforementioned challenges are compounded as more organizations, different databases, and various taxonomies try to aggregate consistent demographic data to track impact on specific populations.

These are all very real challenges, but they are not insurmountable. Philanthropy, if it puts itself to the task, can tackle these challenges.

Some suggestions to get the field started from our report include

  • Don’t let the perfect be the enemy of the good. Pilot systems for data collection, then revisit them to ensure that they are working correctly, meeting the need for good data, and serving the ultimate goal of tracking impact.
  • Fund the capacity of nonprofits to collect good data and to engage in their own diversity, equity, and inclusion efforts.
  • Engage in a conversation – internally and externally – about how this data will be collected and how it will be used. If foundation staff and the nonprofits they work with understand the need for this data, they will more willingly seek and provide this information.
  • For coalitions and collaborative efforts, it may make sense to fund a backbone organization that takes on this task (among other administrative or evaluation efforts) in support of the collective effort.
  • Work with your funding peers – in an issue area or in a community – to approach this challenge in a way that will decrease the burden on nonprofits and utilize experts that may exist at larger grantmaking operations.
  • Support field-wide data aggregators, like GuideStar or the Foundation Center, and work alongside them as they try to collect and disseminate demographic data about the staff and boards at nonprofits and the demographics of communities that are being supported by grantmaking funds.

Grantmakers have the resources and the expertise to begin solving this issue and to share their learning with the entire field. To read more about how grantmakers are collecting and using demographic data, download the full report.

--Melissa Sines

Meet Our New GlassPockets Foundation: An interview with Kate Fryberg of New Zealand's Te Muka Rau Charitable Trust
August 2, 2018

Te Muka Rau Charitable Trust is the first New Zealand Foundation to join the GlassPockets movement. Kate Frykberg, trustee and philanthropy advisor, explains why.

Katie 2GlassPockets: Why is Te Muka Rau prioritizing foundation transparency?

Kate Frykberg: For us, transparency is simply about being open and honest about who we are, what we do, and how our funds are spent.  I would hate people to wonder if we had anything to hide, and I think this does sometimes happen with foundations that are not transparent.  Additionally, charitable foundations receive tax benefits, so we need to clearly show that we are using that foregone tax for the public good – and that we have achieved at least as much public good as the government would have done with that tax money.

”If we are being philanthropic, we should be upfront about how we are serving our communities.“

GP: Some assume that transparency is important for larger foundations. Why do you think it's important for smaller foundations as well?

KF: We are a small foundation by New Zealand standards and we are tiny by US standards – but transparency matters whatever the size.  If we are lucky enough to live comfortably, we should, I believe, be philanthropic and share some of what we have.  And if we are being philanthropic, we should be upfront about how we are serving our communities.  Big foundation, small foundation - the concept is the same – it’s just the number of zeros in the dollar figures that are different.

That said, one size does not fit all – so it was important for us that the GlassPockets process did not issue a score that counted against us if we were not sharing all of the indicators. For example, a small foundation like us with no paid staff doesn’t need things like executive compensation processes and whistle blower policies.  So transparency needs to be able to be adjusted to fit values, purpose, and  size.  It’s really just about openness and clarity.

GP: You have lots of experience as a philanthropy consultant and also as the prior Chair of Philanthropy New Zealand. Why is philanthropic transparency important in the New Zealand context?

KF: The New Zealand context is a little different from the United States – for example there is currently no legally required annual payout amount here.  I think this makes it all the more important to open up things and be very clear how much is given and how the community is benefiting.  Additionally, people here are often a little shy about talking about their giving, so transparency can help normalise philanthropy and build the culture of giving.  Finally, unless we are transparent, it is very difficult for the organisations that we might want to support to know about us and decide whether they should try to connect with us.  So transparency also helps our core business of funding public good initiatives.

”…with templates like what GlassPockets offers, this stuff isn’t hard to do.“

GP: How did the GlassPockets assessment help you to improve your foundation and its transparency, and why should your peers also participate?

KF: With the help of the GlassPockets team, a New Zealand version of the transparency guidelines and a self-assessment form was created; we went through that first and made quite a few changes to our website as a result.  Then we did the US GlassPockets assessment and made a few more changes.  But actually both processes were really easy – maybe a day’s work in total to think things through and tweak our website.  Of course, the leaner a foundation is, the faster the process. But, I think it’s a good message for peers to hear– with templates like what GlassPockets offers, this stuff isn’t hard to do. 

GP: Do you have any examples or anecdotes to share regarding how being a transparent funder has helped you to become more effective in your philanthropy?

KF: I think that being transparent has made it easier for organisations working in the space we fund (social cohesion) to find us, to assess how well our values and work fits theirs and then to connect with us.  That said, what helps create effective philanthropy is a much debated question and requires more than transparency alone, but it’s an important piece of the puzzle that helps build the field as a whole. 

GP: Since transparency is always evolving, what are some of your hopes for how you continue to evolve your openness in the future?

 KF: We value continual learning and I think the next thing we will prioritize is to add a place to share what we are learning.  For example, we are a bicultural funder and half our trustees are Māori (indigenous) – there may be something we can share about this journey.   On the GlassPockets assessment there is an item called “knowledge centre” – which sounds a bit grand for us - but actually no matter what size we are, we have lessons and learnings to share.  So ticking off the knowledge centre box by sharing our learnings will probably be our next step.

Meet Our New GlassPockets Foundation: C&A Foundation reflects on becoming accountable from the inside out
July 26, 2018

C&A Foundation is the first European foundation to sign up for GlassPockets. Sarah Ong, Programme Manager, Supply Chain Innovation and Transformation, explains why.

Untitled design (89)Disclosure of transparent data is one of the C&A Foundation’s major strategies to improve conditions in the garment industry. We believe transparency is an essential tool to increase accountability in apparel production and much of our support is focused on enabling partners to disclose and use transparent data on supply chains and working conditions. Discovering GlassPockets, it only seemed right to practice what we preach and make our own way of working transparent too. Our Executive Director, Leslie Johnston explains:

"Joining GlassPockets was an important first step, allowing us to apply our deep commitment to transparency to ourselves while also learning from others how else we can be more open."

"C&A Foundation is working hard to positively transform one of the world’s most opaque industries: fashion. To do so, we believe in the power of transparency which can move hearts, change minds, and nudge action. It is therefore equally important that we embrace transparency in how we operate. Joining GlassPockets was an important first step, allowing us to apply our deep commitment to transparency to ourselves while also learning from others how else we can be more open. We still have work to do but are grateful for initiatives like GlassPockets that enable more accountability in the philanthropic sector.”

One of the things we’ve found from the transparency work we support is that disclosure is more useful when it is made in a standardised way, so that performance can be compared against peers and over time. It is for this reason we believe it’s important to disclose through our new GlassPockets profile, as well as on our own website.

Untitled design (90)As a relatively new foundation we are still on a transparency journey. We began by making our external evaluations public, and last year the Center for Effective Philanthropy (CEP) conducted our first anonymous partner survey. CEP then used the survey results to benchmark our performance against 300 other funders, which we made a priority to publish on our website. The results were like holding up a mirror to our own performance. We learned that our first few years as a global foundation have not always been easy on our partners, particularly as we have been developing our processes and strategy. Reflecting on the results, we have identified two priorities for improvement:

  • Improving the transparency and efficiency of our processes: Survey respondents rated the foundation lower than typical on the clarity and consistency of its communications. The feedback showed we need to be more transparent on what we do and don't fund, and on how our grantmaking process works.
  • Improving our quality of relationship with partners: While foundation staff have higher than typical contact with survey respondents, we received lower than typical ratings for understanding of our partners' contexts. Simply, we need to listen better.

Publishing the results of our CEP benchmarking, was our way of taking them seriously, holding ourselves accountable and letting others hold us accountable to act on what we heard. We hope the changes we have made, and the process of being transparent will have improved the quality of our relationships with our partners and the change we can achieve together.

"We still have work to do but are grateful for initiatives like GlassPockets that enable more accountability in the philanthropic sector."

Participating in GlassPockets is the next step on our transparency journey. Completing the disclosure has highlighted several more areas where we can be more transparent, and we plan to add to our disclosures over the coming months. For example, we realised that we do not disclose our diversity data or diversity values and policies, which is an oversight since gender equity is so central to our work. We hope this disclosure encourages partners and those in the communities where we work to help us get better in how we do what we do. Our doors are open for your feedback.

--Sarah Ong

The IRS just made an important change related to transparency
July 19, 2018

This post originally appeared in Philanthropy News Digest July 19, 2018.

The U.S. Department of the Treasury has announced that the Internal Revenue Service will no longer require 501(c) organizations other than 501(c)(3)s to file personally identifiable information about donors on their Form 990s.

While the procedure does not affect the statutory reporting requirements that apply to tax-exempt groups organized under section 501(c)(3) or section 527, it will exempt associations, labor unions, social welfare organizations, and other groups from having to file Schedule B information with their 990s — though organizations must still collect that information and make it available to the IRS upon request.

According to Treasury department officials, the information was not necessary for the government to enforce tax laws, and the change itself will better protect private taxpayer information. "Americans shouldn't be required to send the IRS information that it doesn't need to effectively enforce our tax laws, and the IRS simply does not need tax returns with donor names and addresses to do its job in this area," said U.S. Treasury Secretary Steven T. Mnuchin. "The IRS's new policy for certain tax-exempt organizations will make our tax system simpler and less susceptible to abuse."

However, Philip Hackney, an associate professor at the University of Pittsburgh School of Law and former IRS attorney, told the NonProfit Times that, from a tax-exemption perspective, the Schedule B requirement was crucial to the agency's federally mandated oversight of the nonprofit sector. No longer requiring the information "does harm to our democracy and harm to the IRS's ability to oversee the tax law generally," he said. And because the IRS is willingly giving up important data related to where money is flowing in a tax-exempt manner from wealthy individuals, Hackney added, "[i]t makes it [easier] for wealthy interests to influence our political system covertly."

What Philanthropy Can Learn from Open Government Data Efforts
July 5, 2018

Daniela Pineda, Ph.D., is vice president of integration and learning at First 5 LA, an independent public agency created by voters to advocate for programs and polices benefiting young children. A version of this post also appears in the GOVERNING blog.

Daniela Pineda Photo 2Statistics-packed spreadsheets and lengthy, jargon-filled reports can be enough to make anybody feel dizzy. It's natural. That makes it the responsibility for those of us involved in government and its related institutions to find more creative ways to share the breadth of information we have with those who can benefit from it.

Government agencies, foundations and nonprofits can find ways to make data, outcomes and reports more user-friendly and accessible. In meeting the goal of transparency, we must go beyond inviting people to wade through dense piles of data and instead make them feel welcome using it, so they gain insights and understanding.

How can this be done? We need to make our data less wonky, if you will.

This might sound silly, and being transparent might sound as easy as simply releasing documents. But while leaders of public agencies and officeholders are compelled to comply with requests under freedom-of-information and public-records laws, genuine transparency requires a commitment to making the information being shared easy to understand and useful.

“…genuine transparency requires a commitment to making the information being shared easy to understand and useful.”

Things to consider include how your intended audience prefers to access and consume information. For instance, there are generational differences in the accessing of information on tablets and mobile devices as opposed to traditional websites. Consider all the platforms your audience uses to view information, such as smartphone apps, news websites and social media platforms, to constantly evolve based on their feedback.

Spreadsheets just won't work here. You need to invest in data visualization techniques and content writing to explain data, no matter how it is accessed.

The second annual Equipt to Innovate survey, published by Governing in partnership with Living Cities, found several cities not only using data consistently to drive decision-making but also embracing ways to make data digestible for the publics they serve.

Los Angeles' DataLA portal, for example, offers more than 1,000 data sets for all to use along with trainings and tutorials on how to make charts, maps and other visualization. The portal's blog offers a robust discussion of the issues and challenges faced with using existing data to meet common requests. Louisville, Ky., went the proverbial extra mile, putting a lot of thought into what data would be of interest to residents and sharing the best examples of free online services that have been built using the metro government's open data.

Louisville's efforts point up the seemingly obvious but critical strategy of making sure you know what information your target audience actually needs. Have you asked? Perhaps not. The answers should guide you, but also remember to be flexible about what you are asking. For example, the Los Angeles Unified School District is set to launch a new portal later this summer to provide parents with data, and is still learning how to supply information that parents find useful. District officials are listening to feedback throughout the process, and they are willing to adjust. One important strategy for this is to make your audience -- or a sampling of them -- part of your beta testing. Ask what information they found useful and what else would have been helpful.

“When you share, you are inviting others to engage with you about how to improve your work.”

Remember, the first time you allow a glimpse into your data and processes, it's inevitable your information will have gaps and kinks that you can't foresee. And if you are lucky to get feedback about what didn't work so well, it may even seem harsh. Don't take it personally. It's an opportunity to ask your audience what could be done better and commit to doing so. It may take weeks, months or maybe longer to package information for release, making it usable and accessible, but this is an investment worth making. You might miss the mark the first time, but make a commitment to keep trying.

And don't be daunted by the reality that anytime you share information you expose yourself to criticism. Sharing with the public that a project didn't meet expectations or failed completely is a challenge no matter how you look at it. But sharing, even when it is sharing your weaknesses, is a strength your organization can use to build its reputation and gain influence in the long term.

When you share, you are inviting others to engage with you about how to improve your work. You also are modeling the importance of being open about failure. This openness is what helps others feel like partners in the work, and they will feel more comfortable opening up about their own struggles. You might be surprised at who will reach out and what type of partnerships can come from sharing.

Through this process, you will build your reputation and credibility, helping your organization advance its goals. Ultimately, it's about helping those you serve by giving them the opportunity to help you.

--Daniela Pineda

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About Transparency Talk

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

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

    Questions and comments may be
    directed to:

    Janet Camarena
    Director, Transparency Initiatives
    Foundation Center

    If you are interested in being a
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