Think about all the assets you can bring to the table to advance your cause. Then deploy them! If philanthropists have anything, they have money. In fact, they have so much money that after taking care of themselves, their family, and their businesses, they’ve determined they have plenty left over to give away to help others. As a philanthropist, whether you earned the money, inherited the money, or you give other people’s money away as part of your job, you have access to wealth. But guess what? You have access to much more than just money. You have a staggering amount of assets you can deploy to help tackle whatever problem you are trying to solve. This includes: Your smarts … Continue reading Are You More Than Just Money?
Follow a program development life cycle to achieve the greatest funding impact. Our society focuses on getting things done. Check the box. Scratch it off the list. Move on to the next thing. But when it comes to making lasting change, funders should think of their work in terms of a cycle, not a linear progression. This doesn’t mean funders should run in circles, but they should realize that impact comes from a “life cycle” approach to developing and launching grantmaking programs and funding initiatives. The same process can be applied to funders. I call this the Foundation Program Development Life Cycle, and I have identified its six stages. Stage One: Plan Think about what you want to accomplish, then … Continue reading Are You Running in Circles or Making an Impact?
Determine which approach to grantmaking works best for your foundation In philanthropy, there is much written about responsive and strategic approaches to philanthropy. Which approach is the most appropriate? Meaningful? Effective? Grantmakers have many roles to play in a community, and how they define those roles can vary greatly, so it’s important for foundations to understand both strategic and responsive options to determine which approach may be preferable. Responsive grantmaking is being open to receiving proposals and ideas from any nonprofit and allowing the nonprofits to drive the agenda. Requests are initiated by the nonprofit, rather than by a funder seeking them out. This doesn’t mean that a foundation doesn’t have core areas of focus, but it does mean that within … Continue reading Responsive vs. Strategic Grantmaking: Which One is Right for You?
Here are five ways to elevate your outcomes and impact to extraordinary levels. I love to read about best practices — within and outside the field of philanthropy — and to gather examples from my work with foundations. I derive a great deal of satisfaction from thinking about ways that things done well can be replicated, scaled or embraced to positive effect. Over the years, I’ve come to recognize five best practices that “ordinary” grantmakers have adopted to elevate their outcomes and impact to extraordinary levels. Here’s what these extraordinary grantmakers can teach us: 1. Create a culture of innovation. Extraordinary funders cultivate conditions necessary to support innovation in organizations, and they follow a four-step process to help that innovation … Continue reading 5 Best Practices of Extraordinary Grantmakers
Giving happens in many different ways. When we see the images of horrific damage brought on by hurricanes in the Caribbean, Florida or Texas, or by the earthquakes in Mexico, we are moved to send money in response. Through a simple financial transaction, we’ve helped address an immediate need. The same is true when we support a local food pantry to provide a meal for a hungry family, when we donate to a homeless shelter to keep a single mother and her children off the street or when our gifts to a domestic violence service agency help a battered woman escape an abusive relationship. This type of transactional philanthropy is important and necessary to help those in immediate crises meet … Continue reading Transact Or Transform: What Kind Of Giver Are You?
What will you fund, and what will you not fund? It seems like a simple question on the surface, but any funder knows how quickly one can be overwhelmed by the complexity. Depending on your mission and capacity, your focus could include broad program areas such as health or education. Or, it might be concentrated in specific areas like increasing access to high-quality early childhood education. In general, there are three potential levels of change that I encourage my clients to explore to determine where they can effect change, based on their capacity: People Organization Fields For the sake of example, let’s assume your interest is in substance abuse treatment. Your funding focus could take one or more of the … Continue reading 3 Potential Levels of Change to Determine Your Funding Focus
On a recent trip to Mexico City, I was delighted to find a Starbucks right next door to my hotel. For a moment, I felt sort of guilty that I was being an imperialist coffee drinker and that I should go find an amazing Mexican coffee experience to try. But a quick gut check proved the opposite: I was jet lagged from an ill-advised red eye flight from San Francisco, and my priority was caffeine in the form of coffee that I could depend on. I like Starbucks’ Pikes Place blend and I needed the comfort and reliability of its consistent quality. A few weeks later, I was walking in Palo Alto to — you guessed it — a Starbucks. I walked … Continue reading Why Consistent Quality is Key to Your Philanthropic Relationships
Call ‘em what you want – in my 18 years advising foundations and philanthropists I’ve seen the terms “regional association of grantmakers,” “funder networks,” “affinity groups,” “philanthropy communities,” and more – and now the new term is “philanthropy-serving organization” (PSO). Whatever you call it, the value is timeless – bringing funders of similar interests, types, sizes, and/or geographic locations together to network and learn from each other. In my work advising foundation CEOs, I’ve noticed that as leaders transition to new roles and move to new organizations, and as foundation priorities and grantmaking strategies evolve, many funders fail to take advantage of – and sometimes fail to even notice – PSOs that might meet their evolving needs. For example: Consider … Continue reading There’s a Philanthropy-Serving Organization for That!
Too often foundations request “innovative ideas” from their grantees but fail to accomplish the same thing internally — or even define what “innovation” means to them. The implied assumption is that innovation “just happens.” Further, lack of clear definition has come to imply that innovation must be a dramatic, game-changing, disruptive new idea or practice: the iPhone of early childhood education, the Post-It note of economic development. As a result, the expectations for innovation are both so high and so fuzzy that most people naturally feel intimidated, not realizing that they too can create innovations and that innovation is not the exclusive domain of those who are smarter or more creative. After reading a book called The Innovation Formula by business gurus Michel … Continue reading 4 Steps for Fostering Innovation
Years ago, my father owned a company that made a business of storing information on microfiche. (Remember microfiche?) As the computer age dawned, he was definitely an early adopter and enthusiast in our home. He was swept up in the latest and greatest developments and it seemed as if he read everything published about computers and computing. He was caught up in all the chatter and noise about this new industry, but the irony is, he missed the one true signal he needed to hear: computers would revolutionize the information storage industry. If he had paid attention to the signal instead of the noise, perhaps his company would have been an industry leader today. But instead, he missed the opportunity … Continue reading What is Signal and What is Noise?