Nonprofit Literature Blog

The Role of Private Foundations in Public Policy

If your foundation is interested in achieving its mission through public policy engagement, ask our library staff about the new publication, Foundations and Public Policy: Leveraging Philanthropic Dollars, Knowledge, and Networks for Greater Impact (2009). In addition to chapters that discuss the history and strategies related to foundation involvement in public policy, there are also sections that deal with specific policy arenas:

-Expanding and preserving health insurance coverage
-Protecting wetlands and conserving habitats
-Supporting child care
-Promoting school choice initiatives

Published by the Foundation Center, the book is edited by Dr. James M. Ferris, founding director of The Center on Philanthropy and Public Policy at the University of Southern California (USC).

Read more about Foundations and Public Policy at the USC News web site. The book is available for purchase at the Foundation Center Marketplace.

Do Charity Ratings Have an Impact on Donations?

Charities that receive positive ratings will experience increases in contributions and negative ratings will result in declines, correct? To test the validity of this hypothesis, Margaret F. Sloan at the University of Kentucky studied a sample of organizations in New York that received ratings from the Wise Giving Alliance. She found that “pass” ratings resulted in higher levels of donations the following year, but “did not pass” ratings did not result in declines in giving. 

What is the cause of this inconsistency?  Sloan cites several reasons, noting that some donors are more influenced by their emotional attachment to the charity, and other donors may understand that there are reasonable explanations as to why the charity was rated negatively.

Another key factor, Sloan explains, is the “information asymmetry” between donors and nonprofits. In other words, charities may promote positive ratings to potential donors, but donors may not have access to negative information about organizations.

Sloan suggests that increasing the visibility of watchdog rating systems may help. What are your thoughts on this “information asymmetry” issue?

Read more about Margaret Sloan’s study in “The Effects of Nonprofit Accountability Rating on Donor Behavior,” published in the April 2009 issue of Nonprofit and Voluntary Sector Quarterly.

Additional note: This issue also contains an article by Michael O’Neill (University of San Francisco) which re-examines the “crisis of confidence in charities” hypothesis by looking at behavioral and attitudinal data.

Time Out: Taking a Look Back at 2008

You’re keeping up with the latest developments in the sector by subscribing to newsletters, listservs, blogs, and RSS feeds. Are you feeling a bit overwhelmed with the continuous stream of updates? Maybe it’s time to take a step back and reflect on the news, people, and giving trends shaping the field with the Foundation Center’s Philanthropy Annual: 2008 Review.

Once again, you will find exclusive interviews and commentary, listings of notable books, and other useful resources. Don’t forget to try the crossword puzzle!

Click here to download or purchase Philanthropy Annual: 2008 Review

Foundations: Sharing Lessons Learned

The nonprofit sector generates many creative ideas for social change. Why reinvent the wheel when another foundation or nonprofit has already spent valuable resources exploring a specific issue? Instead of starting from scratch, make use of the knowledge from leaders in the field.

The Foundation Review is a new platform for grantmakers to communicate with other foundations, nonprofits, and the public. The peer-reviewed journal is published by the Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership at Grand Valley State University. The first issue focuses on comprehensive community initiatives and profiles several projects.

The issue also includes an article by Robert Giloth and Susan Gewirtz that discusses the importance of sharing lessons learned. Read “Philanthropy and Mistakes: An Untapped Resource” and other articles from the first issue on the Foundation Review web site.

Remember: You can find more information about the field by browsing the Foundation Center's PubHub for foundation-sponsored reports, or the Catalog of Nonprofit Literature for related books and articles (search for the keywords “Foundations case studies”).

Form 990

If you are looking for a comprehensive analysis and detailed instructions for the redesigned Form 990 that will be effective for the 2008 tax year, take a look at the new book The New Form 990: Law, Policy, and Preparation. The volume discusses the legal issues behind each section and takes a line-by-line approach to explaining the information return. You will learn about the expanded sections related to governance, compensation, foreign activities, non-cash contributions, and other areas.

The book is published by John Wiley & Sons, and written by several legal experts: Bruce R. Hopkins, Douglas K. Anning, Virginia C. Gross, and Thomas J. Schenkelberg.

If you are unable to visit our library/learning centers to view the guide, these FAQs may also be helpful:

“What do nonprofit organizations need to know about the new Form 990?”
“Where can I find "pro-bono" legal assistance for my nonprofit organization?”

Nonprofits and Government Partnerships

If your nonprofit is struggling under the current economic circumstances, you probably want to reach out to any avenue that can help your organization achieve its goals. Mike Roque, director of the Denver Office of Strategic Partnerships, suggests that you try forging a bond with your local government and its agencies. In the new March/April issue of Grassroots Fundraising Journal, Roque offers advice on this topic in his article, “Looking Downtown: How Nonprofits Can Partner with Local Governments.” The article provides detailed tips on how to connect with managers in government agencies and introduce them to your organization’s work, and how to get the most out of a government partnership.

In addition to this article, there are other useful resources on government partnerships available in the Foundation Center’s library/learning centers. Nonprofits and Government: Collaboration and Conflict (2006) examines the relationships between nonprofits and government in depth. Also try looking at “The Networked Nonprofit,” from the Spring 2008 issue of the Stanford Social Innovation Review, which discusses some ways in which small nonprofits can accomplish large projects by partnering with local governments or with other nonprofits. Finally, the September 2007 issue of the Nonprofit and Voluntary Sector Quarterly features a discussion of the advantages and disadvantages of public/private partnerships in “The Purpose (and Perils) of Government-Nonprofit Partnership.”

-Tracy Kaufman

Grantmaking in 2009: What Can We Expect?

Nonprofits uncertain about their financial outlook may find planning and budgeting especially challenging during the current economic downturn. Charities will estimate with varying levels of success how much they will be able to raise with their next campaign.

To help ease the level of uncertainty faced by charities, some foundations and corporate funders have issued statements regarding their grantmaking.

"These grantmakers deserve credit for letting their grantees know what to expect over the coming year, so they can prepare,” said Steven Lawrence, senior director of research at the Foundation Center.

You can track statements from grantmakers at the Foundation Center’s Focus on the Economic Crisis web site.

For an analysis of these announcements and plans, read the new research advisory Grantmakers Describe the Impact of the Economic Crisis on Their Giving, co-authored by Steven Lawrence and Lawrence T. McGill, senior vice president for research.