Archive for August, 2009

Philanthropy As “Invisible Aid”

Charles Hamilton

By Charles H. Hamilton
Senior Fellow, Philanthropy New York

Philanthropy was once described as “invisible aid.” Whatever Walter Gifford meant at the time (he was President of AT&T and Chair of the Organization on Unemployment Relief in the early 1930s), foundations and their work remain too “invisible.” If we don’t redress what makes philanthropy invisible, we cannot protect its unique role or legitimately participate in the public discourse about the challenges in this society.

I thought of this recently when I decided to read all of the profiles in the “30 Grants in 30 Days” section of Philanthropy New York’s website. There are now 32 profiles of “exemplary philanthropic initiatives.” (I decided not to name names, because I am interested in themes, but of the many good profiles, I would single out the New York Foundation and the Rauch Foundation as among the best.)

First, there are several senses in which philanthropy arguably should be invisible aid:
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A Unique Nonprofit Lender

Leonard Glickman

By Leonard Glickman
Chief Executive Officer
FJC – A Foundation of Philanthropic Funds

“Neither a borrower nor a lender be” is a well-known early seventeenth century sound bite (from Shakespeare’s Hamlet; Polonius’ advice to his son, Laertes). Yet sound bites or one-sentence quotes found in cute management books are no way to manage a twenty-first century organization.

Financial management of nonprofits has grown into a complex field requiring sophisticated expertise and, if one will excuse another borrowed idea from Hamlet, certain methods to what may well seem like madness. After all, nonprofit organizations are expected to be run as well as any successful for-profit enterprise.
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Why Are Foundations Often Absent From Major Policy Shifts?

Eugene Steuerle

By Eugene Steuerle

Over many years, I have been involved—through government, think tanks, and foundations—in numerous major policy turns in society, only to often find absent those foundations which are very interested in public policy. I don’t have an empirically valid statistical way to prove that statement; I can only provide anecdotal and admittedly personal evidence. Still, many of my colleagues in public policy and foundations agree with this claim.

Rather than debate the extent to which my assertion is true—as the saying goes, all generalizations, including this one, are false—I hope that this serves as an invitation to discuss how foundations can become better engaged in future major public policy shifts, whatever their past level of success.

But first, a bit of the anecdotal evidence.
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Spend Out vs. Perpetuity: Raising the Question

Anita Nager

By Anita Nager
Former Executive Director, the Beldon Fund

Nearly two months ago, the Beldon Fund closed its doors, completing the ten-year intentional spend out envisioned by our chair and donor John Hunting. We did it! With this act, we joined a small cadre of foundations, many in the New York region, which have already spent out, or announced their intention to do so.

A trend? Hard to say. Research by the Foundation Center shows a modest uptick in the decision to spend out by family foundations. If my private conversations with executive directors and foundation board members are any indication, the spend out vs. perpetuity question is on the table for a growing number of private foundations. They are hungry for advice and examples.
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