Grant-funded agencies? Get ready for rough waters!

The latest from Financial Advisor:

Foundations To Cut Grants in ‘09

Market losses last year have prompted U.S. foundations to cut back on their planned donations in 2009, according to a new survey.

Of the 350 foundations surveyed, about half suffered portfolio losses of 20% or more in 2008 and 30% endured losses of between 10% and 20%. Just 12% of the foundations broke even or achieved gains in their portfolios.

The joint survey by Citi Institutional Consulting and the Association of Small Foundations (ASF) also found that more than 60% of the foundations plan to reduce their grant budgets by between 10% and 50%. Some foundations said they will no longer accept new grant applications or designate new grantees, and will avoid multi-year commitments.

Most foundations said they foresaw few changes in their asset allocations and would continue with their long-term investing strategies, according to the survey.

“In the face of very challenging circumstances, our members are trying to minimize the damage to their foundations and maximize the ability to fulfill their missions," said Tim Walter, CEO of ASF. "What this tells us is that small foundations are doing their utmost to balance responsiveness and prudence."

Bill Gates, "How I'm trying to change the world now"

Bill Gates recently spoke at the TED (Technology, Entertainment, ) annual conference on the topic of philanthropy. You can watch the video here:

http://www.ted.com/talks/bill_gates_unplugged.html

Thanks to STLToday for this piece:

Bill Gates gave the opening session of the TED conference today a peek at his new life as a full-time philanthropist, focusing on two of his top priorities: global health and education.

As the CEO and founder of MIcrosoft, Gates had a reputation as a ruthless competitor with a laser  focus on his business. In his wide-ranging talk today, Gates seemed relaxed, but no less intent on success.

“I think there are some very important problems that we don’t work on naturally,”  because the market does not drive scientists, government and others to focus on them, he said.

He described his foundation’s work to eradicate malaria and the importance of developing good teachers.

His foundation has funded initiatives to improve education for nine years, and experience that convinced him that the key is “making great teachers.”

The foundation set out to determine how much variation there is in teacher quality and found it was “unbelievable,” Gates said. “A top quartile teacher will increase the performance of their class by over 10 percent a year.”

The U.S. education system does not reward these teachers or find ways to transfer their methods to other teachers, he said. “But I’m  optimistic,” he added. He briefly listed steps to address the problems, including more systematic measurement of teachers’ performance.

In a brief post-talk interview onstage with TED Curator Chris Anderson, the subject turned to the economy. Gates said he thought it was “good that the mood was bleak” at last week’s annual World Economic Forum summit in Davos, Switzerland.

“We’re going through a period of years where a 50-year expansion of credit is contracting,” he said. People should stop expecting that the government to magically change that because that would just delay the economic reckoning, Gates said.

“I know we are going to get past it,” he said. “But I think we have three, four, five years that will be very tough.”

Anderson asked Gates what he wanted his legacy to be, setting off some  gentle sparring. “I don’t think anyone optimizes for  having a good funeral,” Gates said, prompting Anderson to ask him if the philanthropy is a hobby.
“I’m as engaged in the new work as I’ve been in anything,” Gates responded. “It’s because of the day-to-day activity and the goals. It’s not about legacy.” He said it is fun to work on the problems and “fun when you achieve these ambitious goals. In that sense, it’s magic in the same way software was.”

The full video of Gates’ talk is now posted on the TED site, along with live Twitter and photo feeds from the conference.

2009 Annual Letter from Bill Gates

I encourage you to read the first Annual Letter from the Chairman of the largest charitable organization in the history of the world:

I am writing to share with you my first letter about working at the Gates Foundation. I'm eager to tell you about some of the amazing progress in health and education that is helping millions of people improve their lives. Each year I plan to write about what has gone well, what hasn't, and what we are learning along with our partners. You can read this year's letter at gatesfoundation.org/annual-letter.

Despite the unprecedented economic downturn we are in, I remain fundamentally optimistic about the years ahead. I feel sure I will have lots of success stories to share in the future, and thank you for taking the time to read my letter.

Sincerely,

Bill Gates
Co-chair, Bill & Melinda Gates Foundation

November Funders' Forum

Michelle Monse of the Carl B. & Florence E. King Foundation will join a panel of funders at this important event

The Center for Nonprofit Management has a strong line-up for the November Funders' Forum on Friday, November 7:

Join your peers and a group of the Metroplex’s community support leaders to hear the latest about their funding priorities, initiatives, guidelines, success stories, and partnership opportunities. Learn how to best approach them to request support.

Among the Anticipated Panelists:

Patricia O. Alexander
Dallas Women's Foundation

Michelle Monse
Carl B. & Florence E. King Foundation

W. Andrew Smith, Jr.
Texas Instruments Incorporated

Event Location
Center for Community Cooperation
2900 Live Oak
Dallas, TX 75204

Event Time

Friday, November 7, 2008
9:00 AM - 12:00 PM

For more info, or to register, visit:

http://my.cnmdallas.org/source/Meetings/cMeetingFunctionDetail.cfm?section=unknown&product_major=FF071107&functionstartdisplayrow=1

[where: 75204]

Why the revolution will not be funded: The Twelve Most Common Objections to Social Justice Philanthropy

The Revolution will Not Be Funded: Beyond the Nonprofit Industrial Complex, edited by INCITE! Women of Color Against Violence

Albert at the wonderful White Courtesy Telephone blog offers this list of U.S. Foundations that fund social justice work in his insightful analysis "The Twelve Most Common Objections to Social Justice Philanthropy."

I post the list because I find it more encouraging... but you will certainly not want to miss the full list of objections:

Arcus Foundation
http://www.arcusfoundation.org/pages_/home_.cfm

Ford Foundation
http://www.fordfound.org/

Gill Foundation
http://www.gillfoundation.org/

Haymarket People’s Fund
http://www.haymarket.org/

Hill-Snowden Foundation
http://www.hillsnowdon.org/beyond/index.asp

JEHT Foundation
http://www.jehtfoundation.org/

Liberty Hill Foundation
http://www.libertyhill.org/libertyvote/

Marguerite Casey Foundation
http://www.equalvoice2008.org/

Open Society Institute
http://www.soros.org/initiatives/regions/usa/usa_overview

Otto Bremmer Foundation
http://www.ottobremer.org/gag.php

Public Welfare Foundation
http://www.publicwelfare.org/

The New World Foundation
http://www.newwf.org/

Open Society Institute Expands U.S. Programs Initiative

One of the projects of the Open Society Institute is 'Katrina: An Unnatural Disaster'

The Open Society Institute has recently announced that it will expand its U.S. Programs Initiative by $75 million annually.

Under the leadership of human rights advocate Ann Beeson, the U.S. program
will work to promote equality, ensure transparency in government, and reform
criminal justice and national security policies. To that end, OSI's new

Criminal Justice Fund will work to improve the administration of justice in
the U.S. and reduce the country's over-reliance on mass incarceration and
increasingly harsh punishment, while its

Transparency and Integrity Fund will work to restore credibility to key
government agencies, revitalize congressional oversight, and increase the
military's accountability. Other initiatives include the

Equality and Opportunity Fund, which provides support for communities of
color, immigrants, women, and the lesbian, gay, bisexual, and transgender
community; and the

Democracy and Power Fund, which will work to mobilize youth and communities
of color across a range of progressive issues.

In addition, OSI has announced the launch of two three-year initiatives:

Black Male Achievement, which will work to confront the stigmatization,
criminalization, and exclusion of African-American men and boys from the
economic and political mainstream; and

National Security and Human Rights, which will challenge U.S. policies on
torture, surveillance, arbitrary detention, and racial profiling.

"In shaping these programs, we have tried to capture the sense of urgency and
optimism that our grantees bring to today's formidable challenges," said Beeson.
"U.S. Programs will use its resources to ensure that democracy can flourish and
that everyone in this country can participate fully and equally in society."

More info here:

“Recognizing Profound and Urgent Threats to Democracy, the Open Society
Institute Charts New Direction for Its Work in the United States.” Open
Society Institute Press Release 6/12/08.

[where: 75223]

Grant Central Station for North Texas

Thanks to Murray L. Covens, Principle, and Sherri Barrett, Associate, at Dallas Nonprofit Resources for joining the development team at Central Dallas Ministries. I look forward to working with you over the coming months!

Looking to hire a contract grantwriting team? Check out Dallas Nonprofit Resources:
http://www.dallasnonprofitresources.org/aboutusservices.html

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May Grant Opportunities

Thanks to ChristianGrants.com for these May Grant Opportunities:

Dollar General Back-to-School Grants

Dollar General is accepting applications for the Back-to-School
Grants program. This program provides funding to help schools meet some of the financial challenges they face when implementing new programs, or purchasing new equipment, materials, or software for the school library or literacy program. Applications for grants of up to $5,000 will be accepted from throughout Dollar General's 35-state service territory. All applications must be received by June
12, 2008. To learn more, visit the website provided above.

Staples Education Grant
The Staples Foundation for Learning is accepting applications for the next round of 2008 funding. The Foundation provides funding to nonprofit organizations for programs that support or provide job skills and/or education for all people, with a special emphasis on disadvantaged youth. Applications will be accepted online from organizations throughout the U.S. (excluding Hawaii and Alaska) between June 2 and June 16, 2008. The next deadline is October 24, 2008. To learn more, visit the website provided above.

CVS Pharmacy Community Involvement
Community Grants target effective and innovative programs that align with our philanthropic values and criteria. To ensure that we make a positive impact, the 2008 Community Grants Program will focus on these two key areas:
- Programs targetting children under the age of 18 with disabilities including:

• Health and Rehabilitation Services


• Public schools promoting a greater level of inclusion in student
  activities and extracurricular activities


• Creating opportunities or facilities which give greater access to physical
  movement and play


• Healthcare services for uninsured people

Deadline: June 15th, 2008

Walgreens Community Giving
Most Walgreen grants are made to eligible nonprofits working in local Walgreen communities. A portion of the budget is reserved for select national organizations. Walgreens awards grants in the following program areas: non-hospital based health agencies, Walgreens One-on-One tutorial programs in inner city neighborhoods where we operate, and a small share is reserved for eligible community and social service agencies that serve areas where Walgreens has a significant presence. Health is our major area of focus, and the largest share of our annual contributions budget is allocated to programs that address the health needs of our patients.

Deadline: Open

Lego Children's Fund
The LEGO Children's Fund will provide grants quarterly for collaborative programs, either in part or in total, with a special interest in providing matching funds to leverage new dollars into the receiving organization. We will give priority consideration to programs that both meet our goals and are supported in volunteer time and effort by our employees.

The Foundation awards grants to qualified tax-exempt organizations (as determined under section 501(c) (3) of the Internal Revenue code) including educational organizations as defined in USC 26 § 170 (C) with specific, identifiable needs primarily in these areas of support:

• Early childhood education and development


• Technology and communication projects that advance learning opportunities


• Sport or athletic programs that concentrate on underserved youth

Grant Amount: Most awards are between $500 and $5,000

Deadline: None

Gannett Foundation Community Grants
The Gannett Foundation's mission is to invest in the future of the communities in which Gannett does business, and in the future of our industry. They value projects that take a creative approach to fundamental issues such as education and neighborhood improvement, economic development, youth development, community problem-solving, assistance to disadvantaged
people, environmental conservation and cultural enrichment.

Eligibility: 501(c)(3) organizations in neighborhoods where Gannett has a newspaper or tv station.

Preferred Approach: Complete the application form available from the website, attach your proposal and send it to the newspaper publisher or TV station in your area. A list of newspapers and TV stations is available on the website.Deadline: There are three deadlines per year: January 15th, May 15th and August 15th.

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Foundations rallying to the cry of the poor?

Thanks to Philanthropy Journal for the good news in this article:

Foundations aid struggling families

As the economy continues to falter, nearly all U.S. foundations are working in some way to help the families hardest hit, a new study says.

Almost nine in 10 foundations support grantmaking that either directly or indirectly aids struggling families, says the Council on Foundations, based on a survey of its 320 member funders.

Almost one in three foundations has increased its funding in this area this year, and about four in 10 expect another increase next year.

And one in 20 funders added this area to its grantmaking mix this year.

About 15 percent say they are funding efforts directly related to the subprime-mortgage crisis, the study says, and 8 percent expect to increase that assistance next year.

With worries about the stock market looming, more than half of foundations overall, and two-thirds of corporate and independent foundations, say future market declines will not affect their grantmaking.

However, more than half of community foundations expect to give less next year, the report says, and 46 percent anticipate maintaining current giving levels.

See full story here:
http://www.philanthropyjournal.org/news/foundations-aid-struggling-families

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The Passing of El Sombrero Grande: Gates Foundation Names new CEO

NPR reports on the naming of the New Head of the Bill and Melinda Gates Foundation, Jeff Raikes.

Good luck, Mr. Raikes. The world's eyes are on you.

No pressure, though: you're only out to tackle global poverty, disease and homelessness.

Quoth the Chairman:

"In the rich world, problems like baldness get funded with billions, whereas the things that really kill lots of people, like malaria and TB, used to get basically nothing. Those are what we're going after in health."

That's a big hat you gotta wear, Mr. Raikes. Hope you've got some strong shoulders.
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The Harry Chapin Self-Reliance Awards

Thanks to the Foundation Center's Philanthropy News Daily - Requests for Proposals for this notice:

The Harry Chapin Self-Reliance Awards program, a partnership of World Hunger Year and the Harry Chapin Foundation, distributes cash grants to outstanding grassroots organizations in the United States that have moved beyond charity to creating change in their communities. Organi- zations selected as Harry Chapin Self-Reliance Award winners are judged for their innovative and creative approaches to fighting domestic hunger and poverty by empowering people and building self-reliance.

Applicants must have 501(c)(3) tax-exempt status. The total bud- get for the program cannot exceed $500,000. Applicant organiza- tions' programs must go beyond emergency food, shelter, and other types of assistance to address the root causes of poverty. The program will not consider applications from organizations provid- ing only emergency services.

Grant amounts will range up to a maximum of $7,000 each.

WHY will include program applicants in a database that allows information sharing among community-based organizations, the media, funders, and government agencies. See the WHY Web site for complete program information and application instructions.

RFP Link:
http://fconline.foundationcenter.org/pnd/15012802/worldhunger




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Bank of America Introduces Web Site for Non-profit Organizations Seeking Foundation Grants

The Sun Herald reports that Bank of America Introduces Web Site for Non-profit Organizations Seeking Foundation Grants.

Large-scale Online Resource Dedicated to Helping Non-profits Search and Apply for Grants
Bank of America today announced a new, national Web site through which non-profit organizations can research and apply for grants from nearly 70 foundations managed by Bank of America. In its role of distributing more than $350 million annually to charities on behalf of the foundations for which it serves as trustee or grant-making agent, Bank of America Philanthropic Management now offers enhanced search and online access to detailed information about an array of foundations.

The Web site is here:
https://www.bankofamerica.com/philanthropic/grantmaking.action

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Communites Foundation of Texas to double its giving

The Dallas Morning News' Robert Miller reports on the long-term impact of Mabel Peters Caruth's $24 million gift to the Communities Foundation of Texas, which "will increase the amount awarded annually through ... competitive grants process from $1 million to nearly $2 million."

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The Mission of Rees-Jones Foundation

The newest $400+ million foundation in Dallas has said that "the vision of Mercy Ships matches ours exactly."

They gave Mercy Ships $2M and leveraged a match of $2M from Boone Pickens, as well. More here:

http://www.prweb.com/releases/hospital_ship/Africa_Mercy/prweb864354.htm

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Inspired Change: Online Journal

Thanks to Gray Consulting Group for putting together another edition of Inspired Change, an E-Magazine of "Ideas, Inspiration and Innovation for Nonprofits."

This edition's Feature Articles

• Does Your Organization Need a Development Plan
  
• Navigating Relationships with Foundations
  
• Why Boards Don’t Fundraise
  
  Regular Features
• Inspired Faith: How’s Your Bottom Line
  
• Inspired Leader: Planning for a Year of Excellence
  
• Tools You Can Use

You can view the E-Magazine for free at http://www.InspireChange.net/

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Finance and Commerce

Kendall Anderson of Finance and Commerce writes an insightful article entitled, "Nonprofits aim to stay afloat in tough economy."

So, what will keep Twin Cities’ nonprofits afloat and effective in today’s choppy economic times?

Innovation, strategic partnership and “out of the box thinking,” said Kate Wolford, president of the McKnight Foundation, the state’s largest private foundation.

She and other leaders in the local nonprofit sector spoke this week about the tough economy and its impact on nonprofits at an event hosted by the Minneapolis Federal Reserve Bank of Minneapolis.

The nonprofit sector, which represents a greater percentage of Minnesota’s economy than the sector does nationally – 10 percent here vs. 8 percent in the U.S. – typically feels the bulk of the impact of a recession a year after it hits.

When a tough economy results in lower investment returns for foundations, a corollary is often that the people and entities that normally give money to nonprofits to do the bread-and-butter work of alleviating poverty and improving an area’s quality of life have less to give.

Read the full article here.

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A Fundraiser's Dilemma (or, Not Exactly Sonnet 18)

Shall I beseech thee on a Summer’s day
With tales of how our fund’s grown temperate?
Or send roughshod appeals that graph how May
Brought greater need than any month to date?
Sometime too haughty is this heart of mine,
And oft’ is its perception coarsely trimmed;
And every need for need sometime withdraws,
By chance or truth’s prevailing light is dimm’d:
But thy eternal Foundation won’t fade
Nor lose possession of that grant thou payest;
Nor Charity brag thou wanderest in its shade
When with eternal funds thou growest:

So long as men can breathe, or eyes can see,
So live these needs, and these gives life to thee.



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Much thanks to Ol' Bill for penning Sonnet 18, borrowed and abused above with neither permission nor remorse. Let the Bard's ghost take it up with me, if 'e will.

Passing on the Biggest Baton in Philanthropy

Patty Stonesifer calls her transition out of the role of Chief Executive of Gates Foundation "a tune-up, not a radical change."

I'm not gonna lie, I've applied to about every job ever offered by the Gates Foundation. I could not imagine a better place to work for anyone interested in guiding the direction of our sector.

What do you think will be the ramifications of this transition?

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How much does the leadership of an Executive Director or C.E.O. effect fundraising?

The blog Nonprofit Leadership, Innovation, and Change is the host of the December Giving Carnival. Written by Christopher Scott, the blog asks:

"How much does the leadership of an Executive Director or C.E.O. (a)ffect fundraising?"

This begs a deeper question... the answer to which is, itself, the key to successful fundraising.

"Why do donors give money to your non-profit?"

The answer is far different than the answer to "Why do PC users buy Microsoft products?" or "Why do travelers fly on Southwest Airlines?"

While the leadership of CEOs like Bill Gates and Herb Kelleher have greatly influenced the sales of their respective organizations, the reality is that the leadership of CEOs in the for-profit world rarely drives as significant a percentage of overall revenues as the leadership of CEOs in the non-profit sector.

The reason is fairly simple:

The customers of Microsoft are buying a product and the customers of Southwest are buying a service; the donors to your organization are not buying anything.

Why then are people giving you money?

Because they trust you.

Because they love you.

Because, when it all comes down to it, they believe that your CEO is someone more like Jan Pruit from the North Texas Food Bank and not someone like Carl Yeckel, formerly of the Carl B. and Florence E. King Foundation.

Would Boone Pickens have donated $6M to Jubilee Park without Ana Maria Narro, the Executive Director, to oversee the administration and use of his funds?

Clearly, Mr. Pickens was also heavily influenced by the organization's chair, his friend Walter Humann, as well as Dallas Mayor Tom Leppert, who promised revitalization of such areas as Jubileee Park in his run for office.

But as I listened to his remarks at the groundbreaking, I could not help but realize that he was not investing in the bricks and mortar that would occupy the corner of Parry and Bank Street where we stood. Nor was he investing in the plans to operate that center as a source of hope and support for this rebounding community.

He was investing in the leaders who would bring that plan to fruition, and whose spirits would fill that building with life.

The CEO of Central Dallas Ministries, Larry James, has frequently told me:

"Money follows people and ideas."

Mostly, money follows people who can bring those ideas into reality.

Bill Gates and Herb Kelleher are CEOs who have done this in the for-profit world. Jan Pruitt and Larry James are CEOs who have done this in the non-profit world without the benefit of revolutionary technology or favorable market conditions.

I think that every non-profiteer -- particularly those in the CEO role -- should read "Good to Great and the Social Sectors: A Monograph to Accompany Good to Great" by author Jim Collins. In the book, Mr. Collins argues that "true leadership is more prevalent" in the non-profit sector than in the business sector for these same reasons.

There are few things that can have a greater effect on fundraising than the leadership of a CEO. If your CEO doesn't get this, I'd suggest you have three options:

• Work on getting your Board to take its fiscal responsibility seriously so that they will provide the leadership that you need;
  
• Send her/him over to Phil Cubeta for some smacking around;
  
• Dust off your resume and head over to Opportunity501.org

One Post Challenge

Thanks to Sean at Tactical Philanthropy for the invitation to submit a blog to the One Post Challenge. Thanks to the encouragement of Phil Cubeta at GiftHub, I submitted my blog, "The Secret Leaders of the Philanthropic Revolution.

Please view the entry and add your nominations here:
http://tacticalphilanthropy.com/2007/11/the-secret-leaders-of-the-philanthropic-revolution

Of course, despite all that I say in this blog, there is some truth to the power of wealth, reputation and influence...

Gates Keepers :: China says it will change a policy the same week the Bill and Melinda Gates Foundation announces its programme there

I am still interested in discovering who is quietly shaping the future of our sector, but we would all be fools to ignore the actions of the Bill and Melinda Gates Foundation. The institution is easily the largest private foundation on the planet, and likely one of the most important actors on the stage of global health.

Let us all hope that they use their power wisely. The future of our world, let alone our sector, depends heavily on it.

(Extra points for those who can identify the attached picture)