Is your foundation investing in a diversity of assets across the communities it serves? Does your organization struggle to get funding because of perceived capacity restraints?

In our first As the South Grows report, “As the South Grows: On Fertile Soil,” NCRP and Grantmakers for Southern Progress revealed five key Do’s and five key Don’ts for how foundations and donors can invest in existing capacity to build power in the communities they serve.

The second and latest As the South Grows report, “As the South Grows: Strong Roots” unveiled three additional Do’s and three additional Don’ts to help foundations and donors build wealth in local economies.

DOs and DONTs
We hope the As the South Grows series inspires you to take a serious look at investing in wealth- and power-building in Southern communities.

“How do we respond to our new political and social reality?” Many in philanthropy are grappling with this question at this very moment.

Some foundations have taken bold steps in providing much-needed funding to groups working on the ground to mobilize and organize communities against harmful policies. More are either still trying to figure out what to do or are opting to take a wait-and-see approach. But there is an urgency for grantmakers to get involved.

“Time and again in our nation’s history, philanthropy has demonstrated its power and potential to help solve urgent problems and ensure that this country lives up to its democratic ideals,” writes Aaron Dorfman, president of the National Committee for Responsive Philanthropy (NCRP), for the group’s journal “Responsive Philanthropy.” “Now could be another of those times.”

The spring edition of “Responsive Philanthropy” highlights some of the different ways that funders can make a difference in communities and issues they care about.

Can philanthropy help rebuild trust in news and the public square?

Josh Stearns, an associate director at Democracy Fund, writes about the prevalence of misinformation and why it’s important for our country to reclaim “truth” and regain trust in our democratic institutions, including the press. He shares some of the innovative trust-building efforts underway and how grantmakers can support them.

In today’s complex and uncertain times, philanthropy associations and networks are more vital than ever

Forum of Regional Associations of Grantmakers chief executive David Biemesderfer highlights the various leadership roles of associations, affinity groups and other philanthropic networks. For example, he writes that these organizations can help foundations in getting more involved in policy and advocacy “while learning from experts and sharing with colleagues within a critical state and local context.”

Long-term general support: The elusive Bigfoot in philanthropy

Nonprofits across the country, especially those fighting the resistance, continue to need long-term, general support. Yet these grants are nearly as rare as the mythical Bigfoot. So NCRP asks its nonprofit members: “Why do you think funders shy away from awarding flexible, multi-year grants?” And how would they respond to these concerns?

Rebuilding the middle: How United Ways and foundations can get in the fight to bring communities together

Pete Manzo, chief executive of United Ways of California, believes that it is possible and important to find common ground to ensure that our communities to thrive. Philanthropy has an important role to play, he says, such as by advocating for policy changes “that can increase the odds of success for the people and communities we serve.”

Funding change in the Deep South

There’s a need for more philanthropic investments in the South. Bill Bynum, a board member of NCRP, shares lessons for foundations based on his experience leading HOPE, a Mississippi-based community development credit union serving families and businesses in the region.

Member Spotlight: The Economic Policy Institute

EPI, based in Washington, D.C., aims to “inform and empower individuals to seek solutions that ensure broadly shared prosperity and opportunity.” Members of its Economic Analysis and Research Network (EARN) in 43 states produce research and conduct policy advocacy at state and local levels to improve the economic security of low- and middle-income working people.

Responsive Philanthropy articles are available at no cost on NCRP’s website. NCRP members receive hard copies for free.

Let us know what you think of these stories in the comments or on Twitter @NCRP.

Will history look favorably at philanthropy’s efforts to protect and promote equity during the Trump Administration?

Attendees of the Northern California Grantmakers Association’s annual conference were treated to a rousing debate over this very question. The panelists were a group of inspiring and passionate leaders from the sector: Cathy Cha of the Evelyn and Walter Haas Jr. Fund, Jacqueline Martinez Garcel of Latino Community Foundation, Lateefah Simon of Akonadi Foundation and NCRP’s Aaron Dorfman.

The verdict from the nearly 400-person audience was a resounding “No.”

If you missed it or would like to relive the experience, NCG recently posted a video of The Great Debate on its website.

Many commentators, including NCRP and various authors we’ve featured on this blog and our journal, have penned articles about what the foundations and the whole sector should do in this current moment.

And indeed, Aaron and Cathy shared during the debate how a number of foundations have stepped up in their leadership and commitment to vulnerable communities. But, as Jacqueline and Lateefah highlighted, there are many ways that the sector is still falling short of its potential for impact.

A time for soul-searching

In The Chronicle of Philanthropy, Cathy, Jacqueline, Lateefah and Aaron invited foundation leaders to look inward and ask themselves: Is my foundation responding appropriately? Is it doing enough? How can we challenge ourselves to do more?

They offer five guiding questions, among them:

  • Are we dedicating serious money so grantees have the resources they truly need?
  • Are we investing in building the power of people of color and women?
  • Are we moving money quickly?

And NCRP’s Jenny Choi encouraged grantmakers to be “bold, thoughtful and inclusive” in a Center for Effective Philanthropy blog post.

What do you think?

I hope you’ll check out these thoughtful resources and share with us your own ideas for what effective, high-impact philanthropy looks like in these times.

Yna C. Moore is senior director of communications at NCRP. Follow @ynamoore and @NCRP on Twitter.

In a recent piece in the Chronicle of Philanthropy, sector leaders, including NCRP President and CEO Aaron Dorfman, asked if foundations are doing enough to respond to the challenges posed by the Trump administration. They mentioned foundations that, in addition to their grantmaking dollars, have used their influence to uphold their values. The Wallace Global Fund, for example, fired its law firm, which also represents the new president.

In refusing to do business with firms that undermine what your foundation stands for, we can also look beyond law firms to the money managers who’ve fueled Trump’s rise to power. A next step we’re hoping to see is for foundations to stop investing with hedge funds and private equity firms that use their earnings to work against everything many funders hold dear.

Aligning investment strategies with foundation values isn’t a new concept. Some 140 foundations have pulled investments out of fossil fuel companies, and The California Endowment joined an increasing number of universities and municipalities in divesting from private prison corporations. Foundation endowments are among the largest institutional investors employing major hedge fund and private equity firms who’ve been central to President Trump’s rise to power.

Stephen Lerner, a fellow at Georgetown University’s Kalmanovitz Initiative for Labor and the Working Poor, put it this way:

“Increasing numbers of bankers, hedge fund and private equity managers are supporting and collaborating with Trump, hoping to cash in on his presidency. Beyond searching for tax breaks, and gutting laws designed to protect workers and consumers, they hope to profit off of private prisons, detention centers and other policies that endanger immigrants, people of color and threaten the climate. This is a critical moment for endowments and philanthropy to stop enabling Trump and his racist policies. It is a form of assisted suicide to invest in funds whose managers, policies, investments and actions are in direct conflict with the missions of their organizations. By refusing to invest in, and divesting from, funds managed by collaborators with Trump, philanthropy can send a powerful moral and financial message by cutting off capital to those who profit off of hate.” 

Some of the top hedge funds and private equity investors who support Trump and also manage major foundation investments include Blackstone Group’s Steve Schwarzman and Steve Feinberg of Cerberus Capital Management.

Probably most notorious for having compared the Obama administration’s proposal to increase taxes on private equity managers like himself to Hitler’s invasion of Poland, Schwartzman was tapped to head Trump’s Strategic and Policy Forum and stands to benefit personally for policies on which he’s advising the president. He donated $250,000 to Trump’s inaugural committee. Schwarzman is CEO of the Blackstone Group, which manages funds from some of the largest foundation endowments in the country.

Feinberg’s Cerberus Capital Management and invests endowment funds for the largest foundations. A major Trump campaign contributor and economic advisor, his firm has profited handily from sales of semi-automatic rifles of the type used in the Sandy Hook massacre.

If the foundation’s moral values aren’t enough to motivate you to stop enriching these money managers, consider this: they’re also ripping you off. As Warren Buffett noted in a recent letter to investors: “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds.”

Two organizations that research and map the financial and political interrelationships are Hedge Clippers and LittleSis.

Is your philanthropy doing business with these firms? Which foundation will be the first to publicly pull its investments?

REFUSE TO DO BUSINESS WITH FIRMS THAT UNDERMINE WHAT YOUR FOUNDATION STANDS FORDan Petegorsky is NCRP’s senior fellow and director of public policy. Follow @NCRP on Twitter.

Despite the GOP seemingly lacking the votes to repeal the Affordable Care Act (ACA), ACA isn’t out of the woods just yet. Nor are Medicaid and Medicare.

How do we stay in front of protecting affordable health care for the communities that we serve?

NCRP’s new brief “Foundations, Donors and Health Policy” is a handy resource for grantmakers and donors who are not yet sure how to respond to attempts to un-do recent advances in health equity.

The brief is not just for “health funders.”

“Whether or not your giving focuses specifically on health issues, it is likely that the current federal and state policy proposals and debates have implications for your causes and communities,” writes Lisa Ranghelli, author of the brief and senior director at NCRP.

Do you care about people with disabilities? The elderly? Racial equity? Gender equity? Creating jobs?

Regressive health policies will have an impact on these and other issues.

 

The guide includes seven concrete and effective actions you can take now to help protect the health and well-being of our communities.

 

Action #3: Elevate stories of impact

Fund efforts to gather and tell the stories of how federal and state health programs are good for families and communities.

Keep reading

 

Not a funder?

Then help us get this to the hands of grantmakers and donors so they can start thinking about how to put their money behind the health of our communities.

We can’t afford to stay on the sidelines.

Imagine a world where all families have access to quality, affordable health care and all communities are thriving.

Learn and be inspired by what some funders and nonprofits are already doing to help make this a reality. You can, too.

Jennifer Choi is vice president and chief content officer at NCRP. Follow @jennychoinews and @NCRP on Twitter.

 

Photo courtesy of SEIU.

When I was a kid, I sometimes paced around my room at night thinking about all the responses I wanted to give to things people said to me throughout the day. I usually promised myself that next time I was in a similar situation, I would use the clever lines that I had held back. Of course, life rarely puts you in the exact same situation twice, so most of my witty lines went unused.

Sometimes you only have one opportunity to say what you really think, and when you are engaging in a relationship with people or organizations who have more power or resources than you do, it’s even more important to take the opportunities to give feedback as they arise.

Many of us struggle to do that – I certainly have in my career serving in a variety of nonprofit organizations. But there’s an opportunity to shift the larger dynamics between funders and nonprofits in the long term if more us are courageous and say what is really on our minds (in a constructive way, of course).

Over the years, NCRP has offered insight to nonprofits about how we can all have more courageous conversations with funders. Here are a few of the themes we’ve heard and suggested:

1. Remember that you know things that they don’t. You are the expert in your work.

In relationships of mutual respect, both parties know that the other offers something of value and that they can learn from one another. Remind yourself of this to build confidence and prepare yourself to give honest feedback to funders.

2. Seek to understand their priorities – as individuals and as organizations. Ask your program officer about their interests and passions.

The better you understand your program officer and the funding organization, the better you can relate your work and your feedback to their priorities.

3. Invite them to experience your work first hand.

Your experience, and the experiences of the people you serve, are critical pieces of information for funders. But not every funder prioritizes time to learn about your work first hand. Take initiative to invite them to see what you do, especially if it will reinforce a perspective that the funder isn’t seeing.

4. Be specific, but constructive.

Critical feedback is hard to give and to receive, and being specific helps communication on both ends. Share your observations and how behavior or language impacted or triggered you, and, if you can, offer solutions or alternatives. Resources from sector groups like NCRP, Center for Effective Philanthropy and Exponent Philanthropy, and from nonprofit leaders like blogger Vu Lee, can help provide context for a courageous conversation.

5. Be “kind” – not “nice” just for the sake of politeness.

Being “nice” can lead us to avoid telling hard truths or addressing conflicts. However, we can share feedback in a way that respectfully explains harmful impacts whether it was intended or not.

6. Identify and communicate your self-interest beyond the grant, i.e. introductions to other funders, technical assistance, capacity building resources, etc.

Even if your primary relationship with a funder centers on grants, remember that the funder may have other resources that can be helpful to you. Your requests, and your constructive feedback, can include references to these resources. 

Even if we practice these habits, feedback conversations can still be challenging. But without more courageous conversations, the harmful power dynamics between grantmakers and nonprofits will persist, stunting the benefits we collectively seek for our communities.

We recently had a conversation with an organization that had been receiving program funding for three years, but as they waited for their renewal, the foundation providing the support became increasingly unresponsive. After a few months the foundation’s president requested a phone call, during which they said that they’d likely be pulling funding for the program in question. The foundation head proceeded to ask questions about the organization’s other programs that the staff member found random and confusing.

Our nonprofit friend wished they could have been honest about how pulling funding would leave them in a lurch and directly ask why the funder was inquiring about other programs. Given the power dynamic and surprise of the unwelcome news, the nonprofit didn’t feel like they were in a position to have this courageous conversation.

How would you provide feedback in this situation? What has helped you have courageous conversations with funders? Let us know below or on Twitter if you have additional suggestions for how nonprofits can approach direct feedback to improve philanthropy.

Jeanné Isler is vice president and chief engagement officer at the National Committee for Responsive Philanthropy. Thanks to senior associate for learning and engagement Caitlin Duffy for support with this post. Follow @j_lachapel and @NCRP on Twitter.

Do you remember a time when you prompted a “bless your heart” from a Southern friend, family member or colleague? It’s one of those phrases that packs several sentences’ worth of meaning into three little words. It could mean anything from an expression of sympathy or concern to pointing out well-meaning naiveté.

Earlier this month, I joined my colleagues Jeanné Isler, Stephanie Peng and Ben Barge, along with dozens of Southern funders and grantees in Charleston, South Carolina, for Grantmakers for Southern Progress’ first annual Gathering. The energy in the room was electric – I think just about all of us left South Carolina with a renewed sense of excitement about the South’s potential to change the country and the world in the coming decades. But I was bound to get hit with a “bless your heart” at some point, given all I have been learning from our Southern partners.

I had a whole slew of energizing and productive conversations in Charleston about the best way to utilize the more than 100 interviews NCRP collected during the research process for our new report series “As the South Grows” and how we could continue conversations with Southern and national funders about increasing support for equity and justice.

You’ll be hearing a lot more from NCRP, GSP and our allies over the next six months and beyond about what we heard in the South. For now though, one conversation I had last week stands out. It was the most recent in a handful of examples of when I’ve caught myself doing some of the very things we encourage funders NOT to do when they engage with Southern leaders and nonprofits.

A program officer from one of the Southern funders with whom we’ve been working over the course of the “As the South Goes” research process attended the Gathering. This program officer has been immensely helpful pointing us in the right directions for our outreach and interview processes, and she has two decades of experience in philanthropy in her Southern community. For the purposes of this blog post, let’s call her Rae.

On the last day of the Gathering – all fired up about the sessions and conversations I’d had in Charleston – I saw Rae getting her lunch. I said “hello,” and asked if I could follow her to her table and eat with her; I had some ideas to run by her. I’d gotten in my head over the previous weeks that a peer funder of hers, a foundation in her community, was an important target for our “As the South Grows” campaign.

This funder is relatively large, and there had been talk among NCRP’s staff about how to use “As the South Grows” as an entry point to begin shifting their grantmaking toward greater investments in equity and justice. How could we target this foundation?, I asked Rae. How can we use “As the South Grows” to persuade them to move more money for social justice? How could Rae and her colleagues help us?

Rae chuckled, and said warmly but assertively that I was welcome to waste my time if I wanted. The subtext, as is so often the case when Southerners confront well-meaning Northerners, was something in the area of “bless your heart.” The funder in question was, for the foreseeable future, immovable, Rae added. If we really wanted to punish ourselves we could go ahead, but there were other, better prospects for moving money in her community.

At this point I realized I’d tread down the same problematic path that so many funders and especially national organizations like ours do when they work in the South. I’d come to this expert on her community and on philanthropy in her community especially with a specific agenda in mind and asked her to help do the work. Race played a role too. Rae is a Black woman; I’m a white man. I’ve been conditioned to assume my ideas will be heard and validated, even when they come from a place of inexperience as this one did.

I paused a beat and reoriented myself. I’d gone about this wrong, I said, and I was sorry. I asked Rae what her vision was for philanthropy in her community, and how NCRP and the “As the South Grows” project could plug into and boost that vision. From this point, Rae spoke at length about the foundations in her community who were ready to hear NCRP and GSP’s message – ready largely because of the hard organizing work Rae and her network had put in for years getting them to that point.

If I was willing, Rae and her colleagues would set up conversations with these other funders and bring in NCRP to support their message. Rae had a vision and a plan, and I’m glad I caught myself before I left the conversation without asking her to include us in it.

Probably the most important lesson we hope As the South Grows will communicate to funders is that listening and learning – from both sides of the table – is crucial to sustainable partnerships in the South.

The work of “As the South Grows” is just beginning, and there will be more opportunities for NCRP to walk the talk, so to speak, as we learn and grow into this work in the South. I speak for Jeanné, Stephanie, Ben and myself when I say we left Charleston grateful for the continued grace we’ve been shown by Southern leaders, for the continued opportunity to learn from them and for the “bless your hearts” along the way that let us know when we’ve headed down the wrong path.

Ryan Schlegel is senior research and policy associate at NCRP. Follow @NCRP on Twitter.