Posts Tagged 'foundations'



The Business of Philanthropy: “Exit Interviews” with Former and Departing Foundation CEOs

By Richard Smith, President, The Pinkerton Foundation

How has the increasing influence of the tools and techniques of business affected the world of philanthropy? That was just one of the themes of a panel I had the privilege of moderating recently at Philanthropy New York. Entitled “Exit Interviews,” the panel included three genuine leaders in the field: Susan Berresford, the former head of the Ford Foundation, and two current CEOs, Lance Lindblom of the Nathan Cummings Foundation and Chris DeVita of The Wallace Foundation, both of whom have announced plans to step down later in the year. As a recent migrant from the land of commerce myself, I’ve been especially curious about the similarities—and differences—between business and philanthropy. The panel helped clarify the picture—although I hasten to add that the views expressed here are my own and do not necessarily reflect a consensus of all the panelists.
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A Weak Foundation

By Ilene Mack

I have spent more than three decades in the world of philanthropy, as a program officer at a major national private foundation. I entered with little or no knowledge about my new profession, but what I knew for sure was that it was worlds away from the for-profit, corporate sector that I had known for the prior ten years. I believed it was a sector that existed on a higher plain, which did its work with honor, respect, and integrity. There was no bottom line to be concerned with; we were in the business of doing good—of caring, and being compassionate—and good we did. We were idealistic, believing that with enough people of good will working together and as a community, positive social change could be achieved. Poverty would be alleviated, if not eradicated; education would be reformed; healthcare would become equitable; and discourse would be civil. We were in a partnership with our grantees. There would be accountability and transparency, leading to effectiveness and efficiency. The playing field would be leveled. We didn’t need a bulldozer—fairness, and the notion that we were all in this together, would do the job. I was, in short, part of a field that intended to be a “foundation” for change and betterment.

I treated my grantees as I treated my friends, relatives, business associates, and colleagues—with respect and humility. Just because I worked for an institution that gave out money did not make me superior to my grantees. Now that I am retired, my perspective, often from the other side of the desk, has altered. I am afraid that much of the field and some of my colleagues have forgotten the meaning of their positions at the foundations they work for and the roles that they play.
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Random Reflections By A New Author

By Jeffrey R. Solomon
President, The Andrea and Charles Bronfman Philanthropies

I recently heard the esteemed Israeli author, Amos Oz, remind us that when we dream we dream of perfection—whether of a person, an experience, or a country. Reality never gives us that same perfection. Since Charles Bronfman and I wrote The Art of Giving: Where the Soul Meets a Business Plan, we’ve been in a dozen states talking to numerous audiences, professional and lay, with serious interest in philanthropy. The give and take with these audiences provides a wonderful mirror to reflect upon some of the issues and challenges of the field. As with so many aspects of life, I am blessed from what I learn from these encounters and how these lessons inform my practice.
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Payout Redux

Charles Hamilton

By Charles H. Hamilton
Senior Fellow, Philanthropy New York

In recent years, much has been made of payout rates. On the one hand, many writers have favored increasing the 5 percent minimum required of foundations because it “reaffirms some of the basic principles of effective grantmaking, such as mission clarity, focus and impact” (Beyond Five Percent: The New Foundation Payout Menu). But it does no such thing; payout does not determine mission or effectiveness. Calling for higher payout requirements seems more related to political agendas or the unquestioned conceit that giving now is always better than later. On the other hand, much of the statistical research clusters around 5 percent as the minimum that allows foundations to be enduring institutions: taking into consideration market cycles, expenses, excise taxes, and inflation. But the minimum has become the unquestioned ceiling for most foundations because foundation officials and boards are cautious (or lazy) and fail to align budget and mission. This may be a good time to revisit the payout question.
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The Spend-Out Presumption And The Value Of Enduring Institutions

Charles Hamilton

By Charles H. Hamilton
Senior Fellow, Philanthropy New York

Foundations should explicitly consider their lifespan options. However, in my last contribution, I wrote that focusing simply on foundation perpetuity or spending out was, per se, a distraction from: (1) attending to mission and effectiveness first and foremost, and (2) considering other forms of foundation “existence,” such as foundation mergers. I remain distracted by two things: (1) much of the discussion about foundation lifespan tends to skew in favor of spend-out, and (2) the value of enduring, independent philanthropic institutions to civil society is unfortunately ignored.
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The Spend-Out/Perpetuity Distraction…and the Merger Option

Charles Hamilton

By Charles H. Hamilton
Senior Fellow, Philanthropy New York

There is renewed interest in the issue of lifespan for foundations (spend-out versus perpetuity). Nonetheless, these discussions seem like a distraction to me, for two reasons: 1) the perpetuity versus spend-out debate isn’t relevant by itself and distracts from questions of mission and impact, and 2) it diverts us from looking at other options for foundations.
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Philanthropy in Haiti: Don’t Miss Out on the Opportunity

Penny Fujiko Willgerodt

By Penny Fujiko Willgerodt
Executive Director, Prospect Hill Foundation

A catastrophic earthquake measuring 7.3 on the Richter scale hit Haiti on Tuesday, January 12th, shortly after 5 p.m. The epicenter of the earthquake was just outside of Port-au-Prince, the nation’s capital and the most densely populated area in the country. Thousands of people have died, and thousands more are wounded, most of them without access to adequate medical facilities. Millions are homeless. The national government’s infrastructure has been seriously damaged: the Presidential Palace; Ministries of Finance, Public Transport, Communications, and Justice; and Parliament have all collapsed. Many leaders are missing or known to be dead. The Hotel Montana (built in 1947), one of the most famous hotels in the city, where many U.N. staffers lived, apparently was pretty much destroyed; another famous hotel, The Christopher, home of the U.N. Mission’s headquarters, was badly damaged.

Since daybreak on the morning of the 13th, when people could finally see clearly what the earthquake had wrought, there has been a lot of pain and despair. However, the Haitian people are demonstrating that they are strong, creative, and resilient in the face of such catastrophe. Getting information is difficult, but Facebook and Twitter have emerged as the main vehicles for communication. #haiti and #haitiquake are active Twitter sites; so are those for organizations like Partners In Health and the Lambi Fund of Haiti and individuals like the musician Richard Morse and Melinda Miles, Co-Founder of Konbit Pou Ayiti/KONPAY (both of whom are on the ground in Haiti). Since January 14th, film students from the Ciné Institute in Jacmel have been posting short videos in Kreyòl, French, and English.
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The Haitian Earthquake: Response, Relief & Recovery

Philanthropy New York is currently working to coordinate and list our members’ support efforts and we will continue to track relief and recovery in the wake of the tragedy in Haiti. We encourage our members to visit our special webpage on the disaster in the days ahead for more information.

Tell us what your foundation is doing—please send us information about your support for Haiti.

Benchmarking Diversity: A First Look at New York City Foundations and Nonprofits

Benchmarking Diversity

 

 

 

 

 

Philanthropy New York is pleased to share a new, watershed report on diversity in the philanthropic and nonprofit sectors.

Benchmarking Diversity: A First Look at New York City Foundations and Nonprofits is the first study of its kind for the New York philanthropic sector, the first nationally to examine the racial and ethnic demographics of foundations and nonprofit organizations at the same time, and the first to ask nonprofits how they define/describe a minority-led organization.
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Private Assets and Public Space: A Conversation with John Tyler, Steve Johnson, and William Dietel

John TylerSteve JohnsonWilliam Dietel

 

 

 

 

One of the philanthropic sector’s most intriguing debates is on the nature of charitable funds—whether they are simply the private assets of autonomous entities or, due to the tax-exempt status of foundations, deserve some additional measure of public oversight or government regulation. In this Thought Leaders post, John Tyler (left), co-author of a recent monograph examining the issue; Steve Johnson (center), Vice President at The Philanthropic Initiative; and William Dietel, Former President of the Rockefeller Brothers Fund, discuss the issue with Smart Assets.
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