Nonprofit Literature Blog

Foundation Termination: Learning From Other Grantmakers

You have been thinking about starting a foundation and wanted to consider including a sunset requirement. Before making any final decisions, you researched the topic and have reviewed the Foundation Center’s report Perpetuity or Limited Lifespan: How Do Family Foundations Decide? You have also learned from the experiences of other funders, reading Giving While Living: The Beldon Fund Spend-Out Story.

You next case study might be the Mary Flagler Cary Charitable Trust (1968-2009), which terminated earlier this week after spending out its assets supporting ecosystem studies, music, conservation, and the urban environment.

The Trust’s final report not only describes the Trust’s funding strategies and the impact of its programs, but also includes brief sections that describe its termination strategies and other considerations.

In 1997, trustees decided to spend out in 2009, which was nine years earlier than the intended termination period of fifty years. There were several reasons for this. One factor was the evaluation of the grant programs, which convinced trustees that “the Trust had accomplished most of what it had set out to do under Mrs. Cary’s will.”

For more details, look for the report in the new books section of our library:
Trust Fulfilled: Four Decades of Grantmaking by the Mary Flagler Cary Charitable Trust.

Recent "Off the Shelf" Book Reviews

Here are highlights from Philanthropy News Digest's Off the Shelf book reviews:

The Life You Can Save: Acting Now to End World Poverty. Peter Singer (Random House, 2009)
“…Singer, a philosopher and professor of practical ethics at Princeton University, thinks the plight of so many poor people amid such abundance is immoral, and he has written The Life You Can Save to explain why and, at the same time, shake the "haves" out of their moral lassitude. In it, Singer asks — and answers — such questions as, How far does our obligation to the poor go? How much does it cost to save a life? Which charities do it best? And how much is my fair share?” More…

A Philanthropic Covenant With Black America. Rodney M. Jackson (Wiley, 2009)
“…Edited and with a thoughtful introduction and final chapter by Rodney M. Jackson, founder and president of NCBP, A Philanthropic Covenant delves into many topics related to philanthropy within the black community, including the roles of religion, civic engagement and volunteerism in shaping black philanthropy; the important role of family and friends in black communities; and the African American response to hurricanes Katrina and Rita.” More…

You've Gotta Have Heart: Achieving Purpose Beyond Profit in the Social Sector. Cass Wheeler (AMACOM, 2009)
“…Wheeler has written a very helpful guide, complete with bullet points and chapter summaries, for nonprofit leaders who aspire to lead their organizations to the next level of effectiveness. Along the way, he offers advice on both the more regimented aspects of nonprofit work — business model development, branding, collaboration and partnerships — as well as the traditional nuts-and-bolts aspects of charity work — advocacy, volunteer management, developing a mission statement. His greatest achievement, however, might be the way he seamlessly weaves his discussion of business-minded practicality and charitable-minded idealism into a compelling, coherent presentation that does justice to both without slighting either." More…

For a full list of archived Off the Shelf reviews, click here.

In-Kind Gifts and Donations

If you are interested in supporting a nonprofit that works with in-kind contributions, take a look at the latest issue of Wise Giving Guide (published by the BBB Wise Giving Alliance). The main article helps charities and their supporters think about key questions and challenges unique to groups that receive donations in the form of products, food, or pharmaceuticals. Here are some examples:

• Is the charity successfully obtaining the types of goods that communities need most? (rather than just items that are in oversupply?)

• Is there are distribution system in place so that donations are not sitting idle or wasted?

• Has the charity discussed with the community the impact of the products on the local market?

• How is the dollar value of contributions measured for financial reporting? (and what is the fair value of expired items?)

Learn more by about this topic by reading, “Charity by the Truckload: Gifts-in Kind.” Wise Giving Guide. (Summer 2009) p. 2-8.

See also:

The Foundation Center's FAQ: What are in-kind gifts and how can I find out more about them?

Donor Databases / Donor Management Software

If you are finding that the spreadsheets and the database that you created to track donations and donor information are not meeting your needs, you might consider using more advanced donor management systems to help organize this data. How can you decide on which software to use for your nonprofit organization?

You can get started by browsing NTEN and Idealware’s Consumers Guide to Low Cost Donor Management Systems (2009). The authors examine 33 systems, explain the various features available, and provide recommendations based on user needs. Several comparison charts are included.

The guide is available on Idealware’s web site, where you will also find other articles and guides on technology-related issues. For example, grantmakers and foundations interested in selecting software can take a look at the Consumers Guide to Grants Management Systems (2008).

Arts Groups and Media Projects

Many observers are concerned about the future of arts groups during these difficult times. If this is an area you would like to explore, take a look at the Spring 2009 issue of the Grantmakers in the Arts (GIA) Reader and turn to the article, “Puget Sound Funders Act Together: The Impact of the Economic Recession on Cultural Organizations.” The article by Holly Sidford and Helicon Collaborative describes research based on interviews with representatives from 28 cultural groups. Among the findings are suggestions for grantmakers when funding is limited:

“None of those interviewed expect increased funding from foundations and public agencies, at least in the short-term. But all suggested that funders could help in other ways: by reducing application paperwork or extending current grants an additional year; encouraging program collaborations, joint marketing and resource-sharing; offering loan guarantees or lines of credit; hosting workshops on effective ways to manage the recession; and encouraging arts groups to find solutions in concert with nonprofits outside the arts.”

The rest of the article can be accessed at the Grantmakers in the Arts web site. In the issue, the editors of GIA Reader also note the new blog, Economic Turmoil and Change, which will allow GIA to provide information and updates more effectively.

For example, a June 1st entry mentions the launch of Grantmakers in Film + Electronic Media’s database of media projects in progress. Grantseekers that meet eligibility requirements can submit profiles of their projects. The database will help grantmakers target media projects that match their mission and interests. Click here to access the database.

Funding for Education

June is Funding for Education Month at the Foundation Center. We have developed a topical resource list to highlight a number of readings in the area of education philanthropy. Here are a few examples from the list:

2008 Index of Higher Education Fundraising Performance: Summary of Annual Fund Key Performance Indicators. Cambridge, MA: Target Analysis Group, 2009. 12 p. Subject File Number: 703.
Analyses are based on fiscal year 2008 donor transactions from 33 public and 32 private universities and colleges. Available online

Benchmarking 2008: Trends in Education Philanthropy. Portland, OR: Grantmakers for Education. 2008. 20 p.
Analyzes a survey of 152 funders to assess the current state of educational grantmaking, and examine the ways in which funders' priorities have been shifting in recent years. Includes numerous statistical charts and tables. Available online

Cohen, Rick. Strategic Grantmaking: Foundations and the School Privatization Movement. Washington, DC: National Committee for Responsive Philanthropy, 2007. vi, 34 p. Subject File Number: 211.
Cohen shows how philanthropic capital from small and large foundations has helped build political support for the school privatization agenda using movement-building grantmaking strategies. Available online

For additional tools on this topic, the Foundation Center has also created a new Focus on Funding for Education area of the Center’s web site, which serves as a “one-stop shop” for information on events, classes, interactive charts, news, and more. Visit the new site.

New Foundation Center Reports

Take a look at the latest giving statistics released by The Foundation Center this month:

Key Facts on Corporate Foundations
While giving by corporate foundations remained at an estimated $4.4 billion in 2008, the figure represented a 3 percent decline after adjusting for inflation. About half of the survey respondents expected decreases in giving in 2009. Download

Key Facts on Community Foundations
Community foundations increased their giving to a record $4.6 billion in 2008, which translates to a 2.7 percent increase after adjusting for inflation. Nearly 75 percent of the community foundations in the survey indicated that their giving will decline this year. Download

These reports also present trends in giving from 1990 through 2008 and include analyses of giving by subject focus, type of support, and region.

New Fundraising Book Discusses Scenario Planning and Strategies

What is the outlook for our economy? Will the graph of recovery indicators look like the letter V, U, or L? Nonprofits may use scenario planning to help decide on an appropriate strategy for the future. In his new book, Fundraising When Money is Tight, Mal Warwick explains the disadvantages of aggressive or defensive strategies, and explains why he favors a more selective approach that is suitable for any scenario.

Warwick also nine specific steps nonprofits can take to help them survive for the short and long term. Chapters from the book cover a number of topics, including: resource allocation, cost reductions, direct mail, donor segmentation, donor relations, questionnaires, online fundraising, and other areas.

Find out more:

-Look for the book at our library/learning centers: Fundraising When Money is Tight: A Strategic Guide to Surviving the Tough Times and Thriving in the Future.  A limited preview is also available at Google Book Search.

-Listen to the podcast with Mal Warwick, where he explains how to plan for leaner times, avoid common mistakes, strengthen your case for giving, and step up your efforts

-Or join us for the webinar with Warwick on Tuesday, July 14, 2009.

Philanthropic Leaders Share Thoughts on Achieving Social and Economic Equity

What are the limits of philanthropy? As Mark D. Constantine reminds us in his new book, Wit and Wisdom, “Organized philanthropy—while small in comparison to the charitable contributions of individuals—is miniscule when compared to the budgets and resources of federal, state, and local governments. Philanthropy must respond to the profound challenges of 2009, but there are limits to what philanthropy can and should do.”

Faced with declines in asset values as a result of the economic downturn, program officers will be thinking even more strategically to devise approaches for effective change.

When dealing with complex race and poverty issues, they can draw upon the professional experience and knowledge of philanthropic leaders who understand the challenges to promoting social and economic equity.  In Constantine's collection of interviews, a number of individuals in the philanthropic community share their perspectives and advice for current and future leaders: Ambassador James A. Joseph, Linetta J. Gilbert, C. Thompson (Tom) Wacaster, Gayle Williams, Sybil Jordan Hampton, Jack E. Murrah, Sherry P. Magill, Karl N. Stauber, M. Lynn Huntley, and Emmett D. Carson.

These interviews will provide inspiration and candid insight that will help continue the dialogue on what philanthropy can do to advance social justice, diversity, and other key areas.

Mark Constantine's Wit and Wisdom: Unleashing the Philanthropic Imagination is published by Emerging Practioners in Philanthropy (EPIP).

Click here to learn more and download the book.

Tip: View a list of related readings from our Catalog of Nonprofit Literature.

A Look at Fundraising Strategies and Funding Models

If you are interested in the funding approaches used by the nation’s largest nonprofits, take a look at the article “Ten Nonprofit Funding Models” in the Spring issue of Stanford Social Innovation Review. William Landes Foster, Peter Kim, and Barbara Christiansen of the Bridgespan Group have developed a classification of the funding strategies by analyzing organizations in the NonProfit Times “Top 100” list of organizations and Bridgespan’s list of 144 large organizations that were established after 1970.

Can you think of examples of major organizations that utilize these models?

Individuals are the major source of support:
Beneficiary Builder
Heartfelt Connector
Member Motivator

Individuals or foundations are a major source of support:
Big Bettor

Government is the major source of support:
Policy Innovator
Public Provider
Beneficiary Broker

Corporations are main supporters:
Resource Recycler

Mixed Models:
Market Maker
Local Nationalizer

Look for a chart in the article that compares each model’s characteristics, examples, tools, and funding motivation.

The Spring issue also features the articles “Offsetting Green Guilt” by Matthew J. Kotchen and “Creating Social Value” by Philip Auerswald.