Transparency Talk

Category: "International Focus" (56 posts)

Meet Our #OpenForGood Award Winner: An Interview with Craig Connelly, Chief Executive Officer, The Ian Potter Foundation
June 12, 2019

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Craig Connelly

This post is part of the Glasspockets’ #OpenforGood series done in partnership with the Fund for Shared Insight. The series explores new tools, promising practices, and inspiring examples showing how some foundations are opening up the knowledge that they are learning for the benefit of the larger philanthropic sector. Contribute your comments on each post and share the series using #OpenForGood. View more posts in the series.

The Ian Potter Foundation is an Australian foundation that supports and promotes excellence and innovation working for a vibrant, healthy, fair, and sustainable Australia. In this interview, Craig Connelly shares insights with GlassPockets' Janet Camarena about how the foundation’s practices support learning and open knowledge.

GlassPockets: Congratulations on being one of our inaugural recipients of the #OpenForGood award! The award was designed to recognize those foundations that are working to advance the field by sharing what they are learning. Can you please share why you have prioritized knowledge sharing at the Ian Potter Foundation and how this practice has helped you to advance your work? Or put another way, what is the good that has come about as a result?

Craig Connelly: The Ian Potter Foundation decided to invest in our research and evaluation capability primarily to improve the quality of our grantmaking. We believe that evaluating our grantees and the work that we fund through measuring and evaluating outcomes enables us to understand the extent to which our funding guidelines are achieving the intended outcomes. This results in a more informed approach to our grantmaking which should improve the quality of our grantmaking over time.

A core part of this includes being completely transparent with our grantees and with the broader sector. To do anything otherwise is not being consistent with our expectations of our grantees. We are asking our grantees to be partners, to pursue a strategic relationship with them and that requires open and honest conversation. Therefore, we need to be an open, honest and transparent funder and demonstrate that in order to win the trust of the organizations we fund.

Examples of this transparency are the learnings that we glean from our grantees that we share with the broader sector. We’re getting very positive feedback from both funders and grantees on the quality of the learnings that we’re sharing and the value that they add to the thought processes that nonprofit organizations and other funders go through.

The-ian-potter-foundationGP: Increasingly we are seeing foundations move toward a structure of having staff dedicated to evaluation and learning. For those foundations that are considering adding such a unit to their teams, what advice do you have about the structures needed to create a culture of learning across the organization and avoid the creation of one more silo?

CC: Anyone in a research and evaluation role needs to be an integral part of the program management team. The research and evaluation process informs our grantmaking. It needs to assist the program managers to be better at what they do, and it needs to learn from what the program managers are doing as well. You don’t want it to be a silo, it is just another function of your program management team. It is an integral part of that team and it is in constant communication both with the program management team and with grantees from day one.

GP: As you heard during the award presentation, one of the reasons the Ian Potter Foundation was selected to receive this award is because of how you prioritize thinking about how stakeholders like grantees might benefit from the reports and knowledge you possess. We often hear that while there is a desire to share grantee reports publicly, that there are reputational concerns that prevent it or that to scrub the reports of sensitive information would be too time consuming, yet you do it for all of your portfolios. What are your tips for how to keep this a manageable process?

CC: The initial work to compile and anonymize our grantee learnings required some investment in time from our Research & Evaluation Manager and communications team. To make this task manageable, the work was tackled one program area at a time. Now that a bank of learnings has been created for each program area, new learnings are easily compiled and added on a yearly basis. This work is scheduled at less busy times for those staff involved. The Ian Potter Foundation is also looking at ways learnings can be shared directly from grantees to the wider nonprofit sector. One idea is to create a forum (e.g. a podcast) where nonprofits can share their experiences with their peers in the sector.

GP: A concern we often hear is that a funder creating a culture of learning leads to an increased burden on grantees who are then asked for robust evaluations and outcomes measures that no one is willing to pay for. Does The Ian Potter Foundation include funding for the evaluations and reporting or other technical assistance to mitigate the burden on grantees?

"...we need to be an open, honest and transparent funder and demonstrate that in order to win the trust of the organizations we fund."

CC: One of the benefits that we found at The Ian Potter Foundation of having a Research & Evaluation Manager becoming an integral part of our process is that our authorizing environment – our board and the committees responsible for program areas – have become very comfortable including funding evaluation for all of our grants. We now also understand what it costs to complete an effective evaluation. We often ask grantees to add more to their budget to ensure a good quality evaluation can be completed as part of the grant.

GP: Learning is a two-way street and foundations are both producers and consumers of knowledge. Let’s close this interview with hearing about a noteworthy piece of knowledge you recently learned thanks to another foundation or organization sharing it, and how it helped inform your own work.

CC: Yes, we have a couple of examples I can point to. The first comes from our Education Program Manager, Rikki Andrews, who points to the creation of the Early Childhood Impact Alliance (ECIA) through a grant to the University of Melbourne. The purpose of the ECIA is to convene, connect and increase understanding of research and policy among early childhood philanthropic funders, to ensure there is more strategic and concerted philanthropic support of research and its application.

Additionally, the Foundation’s Senior Program Manager, Dr. Alberto Furlan, explains, ‘We are in the process of learning from organizations we partner with all the time. In the last few years, program managers have been prioritizing extensive site visits to shortlisted applicants to discuss and see the projects in situ. In a ‘big country’ such as Australia, this takes a considerable amount of time and resources, but it invariably pays off. Such visits highlight the importance of relationship building deep and honest listening when partnering with not-for-profits. The Foundation prides itself in being open and approachable and site visits greatly contribute to understanding the reality of the day-to-day challenges, and successes, of the organizations working on the ground.’

--Craig Connelly & Janet Camarena

Transparency: One Small Step for Funders, One Giant Leap for Equity
May 9, 2019

Genevieve Boutilier is a Program Associate at the Peace and Security Funders Group.

This post also appears in the Alliance blog.

Genevieve




Genevieve Boutilier

In order to solve a problem, one must first identify its parameters. This applies, too, to the philanthropic sector; to that end, many of us are pushing for greater transparency in our field. For example, Candid teamed up with a hundred foundations to make public their grants data, assets, policies, and procedures through the GlassPockets initiative, while our funder affinity group colleagues at PEAK Grantmaking and the Transparency and Accountability Initiative advocate for greater transparency with their members. At the Peace and Security Funders Group, we push for transparency through our Peace and Security Funding Index.

For the past five years, the Index has chronicled thousands of grants awarded by hundreds of peace and security funders to get a better sense of who and what gets funded in this sector. This data is useful for understanding the landscape of peace and security funding, including by identifying funding gaps and new funders; however, it has its limits. In the hot-off-the-press 2019 Index, we make the case for how improving this data benefits funders. But beyond benefitting funders, improving the data greatly benefits grantees and the communities they serve, which – in a virtuous cycle – increases funder effectiveness.

On the most basic level, better data gives grantseekers insight into a foundation’s priorities. This allows grantees to more easily identify foundations with similar missions, making space for grantees to spend less time fundraising and more time focusing on their missions – be it fighting for indigenous rights, preventing nuclear war, or helping child soldiers reintegrate into their communities. This opens the door for more open, honest, and equitable relationships between foundations and the grantees they support, which is essential for impactful grantmaking.

But simply understanding who and what gets funded is only the start of the conversation. It’s time to take the conversation to the next level.

By definition, peace and security funders decide who gets a chance at peace by how they award grants. They are the guardians of crucial resources and enormous wealth, and they get to decide how much, how, and when it’s allocated. This is an incredible amount of power. With this power comes the responsibility to engage in the work in ways that center the needs of communities on the frontlines of some of the globe’s greatest challenges.

With timely, more detailed data, this sector can start to answer the tough questions that experts like Edgar Villanueva and Vu Le have been asking: Why are certain regions, issues, and strategies underfunded? Why are certain populations prioritized over others? Why isn't awarding general operating support increasing, especially given the ample evidence that suggests that it’s a best practice? Why are certain kinds of grantees passed over for funding?

”We aren’t collecting data for data’s sake—we’re hoping to transform this sector for the better.”

For our part, we aren’t collecting data for data’s sake—we’re hoping to transform this sector for the better.

To this end, we encourage all funders to start asking the tough questions about their grantmaking, and to increase their knowledge and understanding of equity in the philanthropic sector. Funders can begin to do this in three straightforward ways. First, submit detailed data about your grantmaking to Candid. We at the Peace and Security Funders Group (PSFG) are encouraging our 59 members – who represent a vast majority of the funding in the peace and security field – to submit their detailed 2018 grants data by June 30, 2019, so that we can improve the utility of the Peace and Security Funding Index. Second, funders can join their peers – including a handful of PSFG members – in becoming members of the Justice Funders network; here, they can listen and learn from each other and experts. Finally, funders should assess their own grantmaking practices. Ask yourself, ‘How could I change grantmaking practices to become more transparent and more equitable?’

There are countless other resources to help funders engage, so if you’re stuck and not sure where to go, we at PSFG can try and point you in the right direction.

--Genevieve Boutilier

Philanthropy, Transparency, and Indigenous Relationships
February 28, 2019

Kate Frykberg is a philanthropy advisor based in New Zealand, and trustee of the Te Muka Rau Trust, a philanthropic trust with a specific focus on social cohesion, respectful relationships, and the central place of Te Ao Māori (the Māori world) in Aotearoa New Zealand, where all feel confident and respected in their own cultures and heritage.

This post is part of our "Road to 100 & Beyond" series, in which we are featuring the foundations that have helped GlassPockets reach the milestone of 100 published profiles by publicly participating in the "Who Has GlassPockets?" self-assessment. This blog series highlights reflections on why transparency is important, how openness evolves inside foundations over time, helpful examples, and lessons learned.

GlassPockets Road to 100

I’ve been thinking about funder relationships with indigenous communities and the ways in which we get this wrong and right, and what role transparency can play in strengthening these efforts.

My cultural context is Aotearoa New Zealand and here the term most commonly applied to settlers is Pākehā – which usually (but not always) also implies that you are white. Indigenous people are Māori, or Tangata Whenua – People of the Land.

I am Pākehā, and a few years back I set myself on a journey to figure out what this means and how to be better at it. This has involved learning some tikanga (customs) and Te Reo Māori (Māori language) – why should all our interactions be conducted in the language of those who colonised the land? It has involved questioning my own identity and heritage. It has involved playing my part in addressing racism and inequity. And it has involved reflecting on and strengthening my relationships with Māori – in my work in philanthropy and in my personal life.

The thing is though, there are quite a few ways in which we Pākehā miss the mark in our relationships with Māori, often despite our best intentions. I’m not talking blatant racism, which sadly still exists, but that is a topic for another time. Instead I am talking about the wide spectrum of ways in which we try to do the right thing but then it just goes a bit wrong. Here are seven examples from my cultural context:

  1. Unconscious bias – “We would have liked to employ someone Māori but no-one who met our criteria applied.
  2. Paralysis – “I know I am pretty ignorant about things Māori and I’m scared of getting it wrong, so I will just try to avoid engaging.
  3. Paternalism – “I want to help those poor Māori people.
  4. Tokenism – “We’ve just appointed someone Māori to our board – phew – job done.”
  5. Idealising – “Oh your culture is just so deep and spiritual – it’s the answer to all the world’s problems.”
  6. Smugness – “I’ve been learning to speak Māori – I can’t wait to show you how cool I am.
  7. Cultural appropriation – “I’ve found meaning in your culture – it’s mine now too.”

And, truth is, I think I’ve done all of the above at different times. So what might a better relationship look like?

Katie 2
Kate Frykberg

My friend and colleague Marcus Akuhata-Brown describes this insightfully: “Māori need to feel free to be Māori and to enjoy high-trust relationships with Pākehā without leaving our Māori selves at the door. Also Pākehā need to be able to share power – and sometimes cede power. That’s when the going can get tough.”

This high-trust, respectful, power-sharing relationship between Māori and Pākehā is perhaps the kind of relationship envisaged in our country’s founding document, a treaty signed between Māori and the Britain called Te Tiriti o Waitangi (The Treaty of Waitangi). So how might this relationship play out in practice?

Philanthropy is dear to my heart – but most New Zealand foundations operate according to models imported from the US and Europe. Thinkers like Dr. Manuka Henare and Dame Anne Salmond have questioned this, and the small philanthropic trust my husband Dave Moskovitz and I set up over a decade ago is one of several funders trying to do things differently. Our very small foundation, Te Muka Rau has a specific focus on social cohesion, respectful relationships and the central place of Te Ao Māori (the Māori world) in Aotearoa New Zealand. We transparently state our commitment to the Treaty of Waitangi on our website and we are trying to run our trust as a partnership between Māori and Pākehā. So far this process has involved:

  • Moving to a bi-cultural governance model with two Māori and two Pākehā trustees;
  • Being gifted a new name Te Muka Rau, meaning “the many strands,” to replace the previous name of “Thinktank Charitable Trust;”
  • Aligning the way we run trustee meetings with Maori tikanga;
  • Experimenting with making small grants on the basis of a conversation between people requesting funding and our trustees, with the required checks and balances and paperwork managed internally;
  • Not asking for written reports on grants and instead meeting face to face;
  • Offering non-financial support like advice on fundraising and technology, writing articles in support of the causes we fund, and providing introductions to other funders;
  • Considering the role of reciprocity in philanthropy to better align with giving in Te Ao Māori;
  • Being transparent in who we are, how we work, where the money comes from, where it goes to - and being open and eager to learn from feedback.  (We are proud to be the first New Zealand foundation to become a GlassPockets funder.)

These changes have enabled Te Muka Rau to fund Māori-led initiatives like a project where Māori young people interview and film established Maōri leaders to gather learnings on authentic Māori leadership, and a project to reinstate and teach traditional food growing practices in local communities. Both of these projects are important for reclaiming cultural knowledge and practices, and it is unlikely that we would have known about either project before we changed how we worked.  In fact, it is even unlikely that we would have been trusted to fund these projects. This is because there is an uncomfortable irony in seeking resources from the coloniser to reclaim knowledge lost under colonisation, but this is at least somewhat addressed when half the trustees are Māori.

On the flip side, there have been some projects which looked good to our Pākehā trustees which we didn’t fund – because our Māori trustees had insights into implications and unintended consequences that we would never have become aware of.

Te Muka Rau Trust has not yet gone far along the path to becoming a true partnership between Māori and Pākehā, nor am I very far on the path to being a better Pākehā. But, through being transparent and open we have started to build trust. By listening and learning we have started to build stronger relationships. And by consciously sharing power we have started to build partnership. I think this path is creating better outcomes for everyone involved, and I personally am finding the journey exciting, challenging and enlightening.

--Kate Frykberg

New Report Sheds Light on Global Funding Trends by U.S. Foundations
August 23, 2018

Janet Camarena is director of transparency initiatives for Foundation Center.

Janet Camarena PhotoThose of us in philanthropy often hear that foundations are increasingly rising to the challenge and working to address the world’s most pressing problems, and new data now available demonstrates that in order to fully address these challenges, philanthropic dollars are transcending borders and prior levels of giving. A new report released this month by the Council on Foundations and Foundation Center reveals that global giving by U.S. foundations increased by 29% from 2011 to 2015, reaching an all-time high of $9.3 billion in 2015. Interestingly, despite reaching that new peak in global giving, the report also documents that just 12% of international grant dollars from U.S. foundations went directly to organizations based in the country where programs were implemented.

The State of Global Giving by U.S. Foundations is the latest report in a decades-long collaboration between the two organizations and aims to help funders and civil society organizations better navigate the giving landscape as they work to effect change around the world. A treasure trove of data from prior reports dating back to 1997 is publicly available here.

In terms of transparency and openness, the report offers a helpful data-driven perspective on some of the key global philanthropy debates, issues, and movements of our time. Are you concerned with whether increasing government regulations are preventing foundations from supporting efforts in countries that have enacted tougher funding restrictions? Or, do you want to know how much funding goes to groups on the ground vs. U.S.-based intermediaries? Or, how about getting a better understanding of where the $9.3 billion was spent and how it is advancing the 17 different Sustainable Development Goals? These are just a few examples of the kinds of data and analysis you’ll find in the new report.

Increased Restrictions on Foreign Funding

Global GivingAs governments around the world continue to pass legislation that places increasing restriction on civil society, these restrictions can complicate direct grantmaking to local organizations by U.S. foundations. Between 2012 and 2015, the International Center for Not-for-Profit Law found that almost 100 laws constraining the freedoms of association or assembly were proposed or enacted across more than 55 countries. And, perhaps of most concern to foundations, 36% of these laws limited intentional funding of local civil society groups. Common restrictions affecting international funding include: governmental pre-approval of all grants coming from foreign sources; routing of all foreign funding through government entities; or enacting funding caps or taxation.

Despite the growth of these potentially chilling restrictions, surprisingly the report data did not show a correlation between the funding flows to a specific country and its level of restrictions as ranked on the “Philanthropic Freedom” index. However, it’s important to note that this kind of analysis may be more accurate over time. Since this study used grants data from 2014-2015, it could be likely that the effects of recently enacted legislation on philanthropy would surface in future grant years after the laws take full effect. Based on the currently available data, what is clear is that when we look at the top recipient countries that most benefit from U.S. foundation funding, some of these high ranking recipient countries are the ones with very challenging legal environments. Of course, philanthropic funding flows are always determined by a multitude of factors, but this raises questions to explore, such as why are certain countries with difficult legal environments high on the recipient list while others are not?

Intermediary Giving vs. Local Support

Representatives from NGOs, and advocates of community-based groups have long pushed for increased philanthropic capital to flow directly through these groups rather than through large, U.S-based intermediaries. And growing movements like #ShiftThePower have continued to build momentum around direct investments in communities. However, perhaps due to the aforementioned increasing restrictions on foreign funding, the new report reveals that foundations continue to favor funding through U.S.-based intermediaries, and:

  • Direct grants to local organizations were substantially smaller in size, averaging just under $242K, while grants to intermediaries averaged just over $554K; and
  • In terms of dollar amount, U.S.-based intermediaries received $20.5 billion in total, while non-U.S. intermediaries received $10.5 billion, and direct support tallied $4.1 billion.
  • By number of grants, nearly 49,000 grants during this four-year period went to U.S. intermediaries, 7,514 went to non-U.S. intermediaries, and 16,948 grants were awarded directly.

Progress on Sustainable Development Goals

Readers of this blog might recall that last year around this time we added the Sustainable Development Goals to our “Who Has Glass Pockets?” transparency self-assessment framework. This allowed us to document examples of funders using this shared, multi-sector language to convey their priorities and ultimate goals of their work. The United Nations' Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. Some foundations have started aligning their funding with the SDGs, and some even using it as a shared language across philanthropy and across sectors to signal areas of common interest, and measure shared progress.

GlassPockets currently has tracked examples from corporate, community, independent, and family foundations that are using the SDG framework as a means to better communicate their work. Now, thanks to the new report, we now also have data about how philanthropic grantmaking is making progress on the SDGs, as well as trend data based on the Global Goals:

  • The Global Goals that represented the largest share of global grant dollars were Good Health & Well Being ($17 billion); Gender Equality ($4.9 billion); and Zero Hunger ($3.6 billion).
  • And among the Global Goals that showed the greatest reduction in grant support over the time period covered by the report were Affordable & Clean Energy which declined by 40 percent; Quality Education which dipped by 31.4 percent; and Clean Water & Sanitation which dropped by more than 30 percent.

It’s important to note that the SDGs formally did not go into effect until January 2016, and the data from this report begins from 2011. Still, the distribution of foundation funding by SDGs during the five year period before will serve as a baseline for tracking U.S. philanthropic efforts toward the achievement of the global goals.

With mounting challenges that transcend national boundaries, it’s increasingly important to understand how funds are being allocated to tackle global issues. Now, thanks to this report, we have a window into the scope and growth of institutional philanthropy as a global industry.

--Janet Camarena

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

Are You Over or Under-Protecting Your Grants Data? 5 Ways to Balance Transparency and Data Protection in Sensitive Contexts
April 12, 2018

Laia Griñó is director of data discovery at Foundation Center. This post also appears in the Human Rights Funders Network's blog.

Laia Grino photoOver the last few months, this blog has presented insights gained from the Advancing Human Rights initiative’s five-year trend analysis. Getting to these insights would not have been possible had not a growing number of funders decided to consistently share more detailed data about their grantmaking, such as through Foundation Center’s eReporting program. In a field where data can pose real risks, some might feel that this openness is ill-advised. Yet transparency and data protection need not be at odds. By operating from a framework of responsible data, funders can simultaneously protect the privacy and security of grantees and contribute to making the human rights field more transparent, accountable, and effective.

This topic – balancing transparency and data protection – was the focus of a session facilitated by Foundation Center at the PEAK Grantmaking annual conference last month. Our goal was not to debate the merits of one principle over the other, but to help provide a framework that funders can use in determining how to share grants data, even in challenging circumstances. What follows are some of the ideas and tips discussed at that session (a caveat here: these tips focus on data shared voluntarily by funders on their website, with external partners like Foundation Center, etc.; we recognize that funders may also face legal reporting requirements that could raise additional issues).

HRFN Graphic

  • Think of transparency as a spectrum: Conversations regarding data sharing often seem to end up at extremes: we must share everything or we can’t share anything. Instead, funders should identify what level of transparency makes sense for them by asking themselves two questions: (1) What portion of our grants portfolio contains sensitive data that could put grantees at risk if shared? and (2) For the portion of grants deemed sensitive, which grant details – if any – are possible to share? Based on our experience with Advancing Human Rights, in most cases funders will find that it is possible to share some, if not most, of their grants information.
  • Assess the risks of sharing data: Answering these questions requires careful consideration of the consequences if information about certain grants is made public, particularly for grantees’ security. As noted at the PEAK session, in assessing risks funders should not only consider possible negative actions by government actors, but also by actors like militant groups or even a grantee’s community or family. It is also important to recognize that risks can change over time, which is why it is so critical that funders understand what will happen with the data they share; if circumstances change, they need to know who should be notified so that newly sensitive data can be removed.
  • Get grantees’ input: Minimizing harm to grantees is of utmost importance to funders. And yet grantees usually have little or no input on decisions about what information is shared about them. Some funders do explicitly ask for grantees’ consent to share information, sometimes at multiple points along the grant process. This could take the form of an opt-in box included as part of the grant agreement process, for example. At a minimum, grantees should understand where and how data about the grant will be used.
  • Calibrate what is shared based on the level of risk: Depending on the outcomes of their risk assessment (and grantees’ input), a funder may determine that it’s inadvisable to share any details about certain grants. In these cases, funders may opt not to include those grants in their reporting at all, or to only report on them at an aggregate level (e.g., $2 million in grants to region or country X). In situations where it is possible to acknowledge a grant, funders can take steps to protect a grantee, such as: anonymizing the name of the grantee; providing limited information on the grantee’s location (e.g., country only); and/or redacting or eliminating a grant description (note: from our experience processing data, it is easy to overlook sensitive information in grant descriptions!).
  • Build data protection into grants management systems: Technology has an important role to play in making data protection systematic and, importantly, manageable. For example, some funders have “flags” to indicate which grants can be shared publicly or, conversely, which are sensitive. In one example shared at PEAK, a grants management system has been set up so that if a grant has been marked as sensitive, the grantee’s name will automatically appear as “Confidential” in any reports generated. These steps can minimize the risk of data being shared due to human error.

Transparency is at the core of Foundation Center’s mission. We believe deeply that transparency can not only help build public trust but also advance more inclusive and effective philanthropy. For that reason, we are committed to being responsible stewards of the data that is shared with us (see the security plan for Advancing Human Rights, for example). A single conference session or blog post cannot do justice to such a complex and longdebated topic. We are therefore thankful that our colleagues at Ariadne360Giving and The Engine Room have just started a project to provide funders with greater guidance around this issue (learn more in these two thoughtful blog posts from The Engine Room, here and here). We look forward to seeing and acting on their findings! 

--Laia Griñó

From Dark Ages to Enlightenment: A Magical Tale of Mapping Human Rights Grantmaking
April 4, 2018

Mona Chun is Executive Director of Human Rights Funders Network, a global network of grantmakers committed to effective human rights philanthropy.

Mona HeadshotOnce upon a time, back in the old days of 2010, human rights funders were sitting alone in their castles, with no knowledge of what their peers in other towers and castles were doing – just the certainty that their issue area, above all others, was underfunded. Each castle also spoke its own language, making it difficult for castle communities to learn from one another. This lack of transparency and shared language about common work and goals meant everyone was working in the dark.

Then a gender-neutral knight, clad in human rights armor (ethically produced of course), arrived in the form of our Advancing Human Rights research. With this research in hand, funders can now:

  • Peer out from their towers across the beautiful funding landscape;
  • Use a telescope to look at what their peers are doing, from overall funding trends to grants-level detail;
  • Use a common language to compare notes on funding priorities and approaches;
  • Find peers with whom to collaborate and new grantee partners to support; and
  • Refine and strengthen their funding strategies.

Armed with this knowledge, human rights funders can leave their towers and visit others, even government towers, to advocate and leverage additional resources in their area of interest.

Advancing Human Rights MapMapping Unchartered Territory

The Advancing Human Rights initiative, a partnership between Human Rights Funders Network (HRFN) and Foundation Center, has mapped more than $12 billion in human rights funding from foundations since 2010. Because of the great potential such data has to inform and improve our collective work, many years of work went into this. Ten years ago, HRFN recognized that in order to help human rights funders become more effective in their work, we needed to get a better understanding of where the money was going, what was being funded and how much was being spent. After our initial planning, we partnered with Foundation Center, brought in Ariadne and Prospera as funder network collaborators, formed a global Advisory Committee and hashed out the taxonomy to develop a shared language. Then, we began the process of wrangling funders to share their detailed grantmaking data.

It was no easy feat, but we published the first benchmark report on human rights grantmaking for 2010, and since then, we have worked to improve the research scope and process and trained funders to use the tools we’ve developed. In January, we released our first ever trends analysis. Over the five years of data collection featured on the Advancing Human Rights research hub, we’ve compiled almost 100,000 human rights grants from funders in 114 countries.

Adopting A Can-Do Attitude

In 2010, major funders in our network didn’t believe this could be done.

First, could we get the grantmaking data from members? For the first few years, we campaigned hard to get members to share their detailed grants information. We created a musical “Map It” parody (set to the tune of Devo’s “Whip It”) and launched a Rosie the Riveter campaign (“You Can Do It: Submit Your Data!”). We deployed pocket-size fold-outs and enormous posters thanking foundations for their participation. Several years later, we have seen our gimmicks bear fruit: 780 funders contributed data in our most recent year. When we began, no human rights data was being gathered from funders outside North America. In our first year, we incorporated data from 49 foundations outside North America and in the most recent year, that number more than doubled to 109. The value of participation is now clear. Repeated nudging is still necessary, but not gimmicks.

Rosie Collage
The Human Rights Funder Network celebrates its Rosie the Riveter “You Can Do It: Submit Your Data!” campaign. Photo Credit: Human Rights Funders Network

Data Makes A Difference

Once we had the research, could we get busy funders to use the data? With all the hard work being done in the field and so much to learn from it, we were committed to creating research that would be used. Focusing as much energy on sharing the research as we had compiling it, we aimed to minimize unused reports sitting on shelves. Global tours, presentations, workshops and tutorials have resulted in funders sharing story after story of how they are putting the findings to use:

  • Funders sift through the data to inform their strategic plans and understand where they sit vis-à-vis their peers;
  • Use the tools to break out of their silos and build collaborative initiatives;
  • Use the research to advocate to their boards, their governments, their constituencies; and
  • Enter into new areas of work or geographies knowing the existing landscape of organizations on the ground, search for donors doing complementary work, and discover the issues most and least funded.

Overall, their decisions can be informed by funding data that did not exist before, beyond the wishful daydreams of funders in their towers.

I wish I could say that we’ll live happily ever after with this data. But the pursuit of human rights is a long-term struggle. Those committed to social change know that progress is often accompanied by backlash. As we face the current challenging times together, sometimes we just need to recognize how far we’ve come and how much more we know, holding on to the magic of possibility (and the occasional fairy tale) to inspire us for the still long and winding, but newly illuminated, road ahead.

--Mona Chun

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Paradise Papers graphic
Source: International Consortium of Investigative Journalists

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

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

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

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

-- Janet Camarena

Eye On: Airbnb Co-Founders Joe Gebbia, Nathan Blecharczyk, and Brian Chesky
April 26, 2017

(Melissa Moy is special projects associate for Glasspockets.)

Two friends were struggling to pay their rent when they realized they could earn much-needed funds from travelers.  In 2007, they charged their first three customers $80 a night to sleep on an air mattress in their San Francisco apartment when local hotels sold out during a conference.

And the rest is history.

Joe Gebbia and Brian Chesky, friends and former Rhode Island School of Design classmates, expanded their enterprising idea.  With Gebbia’s former roommate, Nathan Blecharczyk, the trio founded Airbnb in 2008 and revolutionized the art of renting home space.  As Gebbia explained in a TED talk, Airbnb designs for trust to create a “culture of sharing… that brings us community and connection instead of isolation and separation.”

Within 10 years, the trio has groomed Airbnb into a $30 billion tech giant, a disruptive and controversial force that has transformed the travel and tech industry and popularized the idea of the “sharing economy.”  As Airbnb has grown, so have controversies and debates over its impact in already tight rental markets.  Criticism that the company has contributed to community displacement and a reduction in available long-term rentals have led to ongoing legal battles. Yet, despite the regulatory struggles, even hotels are rallying to find ways to imitate the trendsetting Airbnb.

 

Entrepreneur - Airbnb Trio
The Airbnb co-founders are among the youngest to join Warren Buffett and Bill and Melinda Gates in the Giving Pledge. It also marked the first time all of a company’s co-founders committed at the same time. Credit: Entrepreneur


Now the entrepreneurial trio – who are each worth an estimated $3.3 billion and among the youngest on the 2016 Forbes 400 billionaires list – have started making visible strides in the original sharing economy by engaging in philanthropy. 

The Airbnb co-founders are among the youngest to join Warren Buffett and Bill and Melinda Gates in the Giving Pledge, whereby wealthy individuals pledge to give away the majority of their wealth within their lifetime.  When they joined the Giving Pledge last year, it also marked the first time all of a company’s co-founders committed at the same time.

In a Fortune interview, the entrepreneurs credit Warren Buffett and Bill Gates with their decision to join the Giving Pledge.  Gebbia touted Buffett as a “Jedi master of philanthropy.”  And Chesky said Buffett’s argument resonated with him – wealth beyond a certain point has zero utility, and such wealth could have a greater social impact.

Still relatively new to philanthropy, the trio acknowledge they are taking their time to give away their wealth.  However, openness is at the heart of the sharing economy, and the Airbnb co-founders understand a public expectation of openness in philanthropy exists.

“I’ve always believed that you should [be public about giving], such that you can be very public about your values and what you stand for,” Chesky said in a Fortune interview.

Corporate Philanthropy

As the Airbnb co-founders design their philanthropic strategy, the company is experimenting with different ways to use its platform for good. 

The San Francisco-based company has created a disaster response platform that brings together hosts and community groups to provide free temporary housing for individuals and families displaced by disasters, as well as relief workers.  When a disaster occurs, Airbnb contacts local hosts who may volunteer to provide free housing; if no hosts are available, Airbnb will subsidize the housing cost.

“I’ve always believed that you should [be public about giving], such that you can be very public about your values and what you stand for.”

Airbnb connects hosts to help support local and national disaster relief efforts, and arranges disaster preparedness training.  Airbnb also contributes travel vouchers to support advance teams and large groups of relief workers for major national and international disasters.

More recently, the company has pledged to use its disaster response platform to aid refugees affected by President Donald Trump’s executive order. Over the next five years, Airbnb has committed to provide short-term housing for 100,000 refugees and those barred from entering the United States.  Airbnb also pledged $4 million to the International Rescue Committee over the next four years to support the most critical needs of displaced people worldwide.

Airbnb also recently announced a scheduled launch of a humanitarian division next month focusing on global issues such as displaced populations, rural flight and bias against strangers.

Given that building community is one Airbnb’s central philosophies, the company’s platform supports a number of opportunities for Airbnb hosts to make a positive social impact via global volunteerism and “Open Homes,” which provides housing at free or reduced costs for medical treatments, college visits, or family gatherings.

Through a “social impact experiences” program, Airbnb guests enjoy culture and learn about local causes in the cities they are visiting.  Local community leaders and volunteers are invited to create an opportunity that brings people closer to their work.  Nonprofit leaders and Airbnb hosts lead the experience, and the nonprofits receive 100% of the social impact experience fees. 

Airbnb hopes this will connect guests to issues they care about or introduce them to new causes.  The social impact experiences run the gamut, from visiting a local artist or animal shelter to attending a dinner and theater event, or spending a day with an urban gardener to create green space in Los Angeles. 

Airbnb has committed to fighting homelessness in New York City, where the company recently settled a lawsuit involving legislation that would fine Airbnb hosts up to $7,500 for renting out certain types of apartments and homes for less than 30 days.  Last year, the company donated $100,000 to WIN (formerly Women In Need), a group that helps homeless women and their children.  Additionally, Airbnb pledged to recruit volunteer hosts and guests to assist WIN clients with professional skills training, such as resume building and interviewing for jobs, and increasing children’s literacy.

Personal Giving 

The trio’s individual giving appears to be driven by a spirit of entrepreneurship; they want to give others the opportunity to achieve their dreams and support “future creatives and entrepreneurs.” 

Joe Gebbia

Joe GebbiaIn Joe Gebbia’s Giving Pledge letter, he described his hope to help other entrepreneurs: “I want to enable as many people as possible, especially in underprivileged communities, to experience this magic firsthand… and achieve their dreams.”

The 35-year-old Georgia native added, “I want to devote my resources to bring the moment of instantiation, when someone who has an idea sees it become real, to as many people as I can.  It can unlock the understanding that they can make things happen, that they can shape the world around them.”

Gebbia serves on the Board of Trustees at his alma mater, the Rhode Island School of Design (RISD).  In 2014, he pledged $300,000 to RISD for a $50,000 term scholarship and an endowed fund for talented students in need of financial aid.

Nathan and Elizabeth Blecharczyk

Nathan and Elizabeth BlecharczykIn Nathan and Elizabeth Blecharczyk’s Giving Pledge letter, the couple said they are in a “unique position to have significant positive impact” by giving away their wealth.  “We feel a responsibility to share our good fortune, and we pledge to dedicate the majority of our wealth over time to philanthropy,” the Blecharczyks said.

Nathan Blecharczyk, 33, who developed Airbnb’s website, demonstrated his entrepreneurial spirit early on.  When he was 12 years old, Blecharczyk learned how to code and wrote customized programs for clients; he developed popular programs for e-mail marketing.  By age 14, he founded an Internet software business and funded his Harvard University tuition with the sale of his business. 

The San Francisco residents cited their upbringing – his parents taught him to be inquisitive, confident and motivated, and her parents and teachers taught her to be self-aware and use her strengths to help others – as the reason to direct their philanthropy toward the “potential of children” and “transformative ideas.”

“Airbnb went from an off-the-wall idea to a transformative company as a result of assembling the right team – cofounders, mentors, investors, and later employees – and now we want to help others pursue unconventional ideas that can make the world a better place,” the Blecharczyks said in their letter.

The couple said their interests are in the areas of education, scientific research, medicine, space exploration, environment and effective governance.  “Our philanthropic approach will be reflected through the lens of our own passions and experiences but rooted in analysis to ensure we are choosing wisely,” the couple said.

Brian Chesky

Brian CheskyBrian Chesky, 35, wants his philanthropy to spur youth entrepreneurship.  “We all live with unknown potential.  The younger you are, the more unknown it is,” Chesky said in his Giving Pledge letter.  “But the clock ticks by each day of your life.  And each day someone young isn’t exposed to what is possible, their potential slowly dims.”

The New York native credited a high school teacher and RISD professors for helping him to dream and see that he could “design the kind of world I want to live in.”

“You can have a lot of impact on someone just by showing them what is possible,” Chesky said.  “With this pledge, I want to help more kids realize the kind of journey I have had.  I want to show them that their dreams are not bounded by what they can see in front of them.  Their limits are not so limited.  Walt Disney once said, ‘If you can dream it, you can do it.’  I would like to help them dream.”

To learn more, visit Foundation Center's Eye on the Giving Pledge feature and check out individual profiles for Joe Gebbia, Nathan and Elizabeth Blecharczyk, and Brian Chesky.

-- Melissa Moy

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About Transparency Talk

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

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

    Questions and comments may be
    directed to:

    Janet Camarena
    Director, Transparency Initiatives
    Foundation Center

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