Posted in July 2012 …

Jul 30 2012
Leave a comment
Andras Kosaras, Tax & Legal

Quickest Ways to Determine a Charity’s Status

By Andras Kosaras, Arnold & Porter LLP

Even if your foundation collects an organization’s IRS determination letter (which is not required legally), your foundation must still ensure that the status is current through one of the methods below.

  • IRS Exempt Organizations Select Check is a free online database that is updated monthly providing basic data on nonprofits. Choose the option for organizations eligible to receive tax-deductible contributions and enter the organization’s information. An organization’s tax status will be reported with a code such as PC, SO, and PF, as nonprofits with similar deductibility and paperwork requirements are grouped together in the database.
  • Charity Check is a one-stop due diligence tool offered by GuideStar that provides up-to-date information on all nonprofits in a user-friendly format. ASF members can subscribe at a discounted rate.

Whichever tool you use, be sure your foundation documents the tax status by printing your search or storing it electronically. Continue reading →

Tagged , , ,
Jul 26 2012
Leave a comment
Administration, Rachel Miller

Sole Staffers: Embrace Opportunities to Connect

By Rachel Miller, ASF

The world of a sole staffer can be a strange place. In the words of Aladdin’s Genie: “Phenomenal cosmic powers! Itty bitty living space.”

Working on your own as a leader of a small foundation can be exhilarating and empowering as you exceed your own expectations for what you can accomplish. But it can also be overwhelming as you find limitations and realize how much you need coworkers. Sometimes, your dog just doesn’t have the answers you need.

For nearly five years, I was a sole staffer at for a nonprofit organization that led adult education programs in Washington, D.C. I felt so connected to my work and the community that I didn’t mind that my day never followed a traditional 9 to 5 model. I embraced the freedom as much as I embraced the comfy dress code. But mostly, I loved how self-reliant the position made me feel. Whatever the organization needed, I knew I could become. Continue reading →

Tagged , ,
Jul 25 2012
2 Comments
Danielle Oristian York, Next Generation

Philanthropcapitalism: A Next Generation Take on Philanthropy

By Danielle Oristian York, 21/64

Philanthropy is a sector of society that has long been drenched in tradition and social obligation; leave the risk-taking and creativity to the capitalist masses. Today, however, the conventional definitions of business versus philanthropy have been turned upside down by a new cohort of next generation donors who are actively seeking to blur the line between these two sectors. Members of Generation X and Generation Y (or the Millennials) are under 40 and full of innovative ideas about how the worlds of business and philanthropy can work together to create an even greater good.

Social Entrepreneurship
An entirely new class of business leaders has developed out of the school of thought that being good for humanity is not only good business, but also good for business. Social entrepreneurs are defined by Businessweek as “enterprising individuals who apply business practices to solving societal problems.” Huge names in business such as Tom’s Shoes and Ethos Water are proving that profit and charity are not ideological enemies but harmonious cousins. Continue reading →

Tagged , , , ,
Jul 18 2012
1 Comment
Henry Berman, Investments

Tolerate More Risk to Advance Social Change?

By Henry Berman, ASF

Most of us in the philanthropic world are often asked by financial advisors about our tolerance for risk. But lately I’ve been thinking about risk in terms of organizations I choose to partner with and fund as a philanthropist. Will I accept the fact that my investment in a nonprofit may fail to produce the desired results? Or not produce as quickly as I would like? And what do I have, aside from financial capital, that could leverage my investment and potentially minimize risk?

In a conversation I had with Paul Shoemaker, Executive Connector of Social Venture Partners Seattle and founder of Social Venture Partners International (SVPI) we explored this topic. In Paul’s words:

Obviously, in the private sector we’re used to failure and we say that’s part of the process, and we make bets, and occasionally there’s a failure. In this business [philanthropy], if you have a failure, it may affect real lives. So it’s got a different connotation to it. What I think is true is that we need to be willing to sometimes invest in things that we know work, and to scale them, but we also need to be willing to invest in some innovations. And some organizations may do one or the other, or maybe some of both.

So to me, I guess the definition of tolerance for failure would be: Are [you], as a philanthropic organization, willing to invest in innovation, either within an existing organization or a new organization? And are [you] willing to stick with that investment while it makes mistakes, and it trips on itself, and maybe even ultimately fails, but what comes out of that is something better or some knowledge that moves the field or moves the practice forward?

Listen to the complete interview in our free podcast, Strength in Numbers: Leveraging Human Capital to Amplify Impact. And let me know what you think.

Henry Berman

Henry Berman became ASF’s CEO in 2011, previously serving as acting CEO, board member, and committee member. Through his experience as a foundation co-trustee and ASF member since 2003, he brings a firsthand understanding of the needs of ASF members to his role. Berman’s early career included positions as an independent communications consultant and director, writer, and producer of film, video, and multimedia programs for education, motivation, and fundraising.

Tagged , , , , ,
Jul 17 2012
Leave a comment
Gary Castagnola, Impact & Evaluation

Making a Big Impact with a Small Grant

By Gary Castagnola, Ellen & Clarence Peterson Foundation

The following ASF member story was posted to the ASF Discussion List recently in response to the question: How has your foundation been able to create change, even without a large grant budget? Additional stories and like this will be shared at ASF’s 2012 National Conference in the session on “Making an Impact When You Grant Less Than $100K Yearly.”

During the initial years of our foundation, beginning in 1986, none of our trustees had any prior experience serving on a board of directors for a nonprofit organization. Our accountant told us the dollar amount of required distribution and we divided the dollars among the directors. Each of us then selected a nationally known qualified organization for our grant dollars.

After a couple years, none of the grantees ever sent even a postcard of thanks. Our dollars were indeed a drop in the ocean. Thereafter, we focused mostly on giving to local and much smaller organizations that each of us had encountered. This shifting of our resources had an immediate impact on both our grantees and our fellow board members.

Along with money, some of us came to know the grantees on a local and personal level, helping them with our business and management expertise. We could see the results of our efforts and leverage our dollars beyond anything we would have experienced by simply sending a check in the mail.

To illustrate one program in particular, a local, small food bank contacted us to ask for help with capacity building. They needed additional storage to place food goods for a growing population of homeless and underserved families in an extremely depressed community in south central Los Angeles. Rather than rely on a written grant request, we visited with them and came to understand their needs. Continue reading →

Tagged , , , , ,
Jul 12 2012
Leave a comment
Family, Next Generation, Sara Beggs

Engage your family in giving? Friends might be key.

By Sara Beggs, ASF

If you’re passionate about giving, it’s likely you want your own kids to follow suit. Isn’t that one of the key reasons family foundations are created? And, while some people want their kids to care about a particular cause, many donors simply want their children and grandchildren to care about something. Anything.

Whether you have millions to give away or something significantly smaller, teaching kids to care about something other than themselves is a worthwhile cause. As an ASF staff member, I don’t have IRS regulations demanding that I give out 5% a year, nor do I have millions of dollars to give away, but I sure want my kids to care about their community, both locally and internationally.

Lemonaid standSo, several years ago, I along with several friends started a group named Blooming Kids for Kindness. While we encourage the entire family to participate and don’t underestimate the value of that, it’s clear to me that some of the greatest enjoyment with our giving comes when we volunteer with friends.

Take our latest project of Lemonade Day, for example. Imagine 14 kids, ages 4-11, sitting together with their parents for 1.5 hours brainstorming stand names, determining optimal locations, testing recipes, calculating costs, estimating sales, and choosing charities that would receive all the profits. Add to this: tie-dying shirts for a common look, squeezing 336 lemons, painting our lemonade stand, and creating flyers. It was a boat-load of work! Continue reading →

Tagged , ,
Jul 09 2012
4 Comments
Impact & Evaluation, Paul T. Penley

How to Know You Made a Difference: Grant Impact Reports

By Dr. Paul T. Penley, Intelligent Philanthropy

Is my giving really making a difference? That is a question that haunts every giver. Every day individuals and foundations make decisions about where to give. Over a million active U.S. charities provide endless opportunities to support big visions and passionate leaders. The difficult task for those of us screening opportunities is how to know who is really making a difference.

The task should be easy. Charities should be measuring their performance and reporting the results. All of us who issue grants at foundations should have no more difficult a task than reading grant impact reports from previous gifts. But it’s not that simple. The quality and clarity of grant reporting is all over the map. So what do you do to raise the bar for grantee reports? Here are a few things we learned. Continue reading →

Tagged , , , , ,
Jul 05 2012
3 Comments
Henry Berman, Investments

The Future of Investing: A Conversation with Melissa Bradley of Tides

By Henry Berman, ASF

I recently sat down with Melissa Bradley, CEO of Tides, to hear her perspective on hybrid models of philanthropy and the future of social impact investing. At Tides, Melissa is leading the way to help others understand, in her words, “all of the new ways to do good,” including program-related investments, equity investments, and more.

During our conversation, I asked Melissa about venture capitalism and the risks of investing in social changes that may require long gestation periods. Where can small foundations come in? What about the individual philanthropist who is seeking to make a social impact but isn’t a “big capital” kind of investor?

On this matter, Melissa said:

“I think for philanthropists who are interested in impact investing, I think it’s important to understand that, on this long continuum, philanthropy still is just the beginning of any kind of major capital infusion. So we should not conclude or assume that philanthropists are going to be the next wave of venture capitalists. But I do think it’s important to recognize that there are indeed those small pots of money, the risk capital, that can really provide scale and allow others to come in after us. So it really becomes: How can I be catalytic through a grant or an investment that will allow others to have confidence and faith to come in and really take that to the next level?”

Listen to the complete interview in our latest free podcast, The Future of Investing. And let us hear what you think.

Henry Berman

Henry Berman became ASF’s CEO in 2011, previously serving as acting CEO, board member, and committee member. Through his experience as a foundation co-trustee and ASF member since 2003, he brings a firsthand understanding of the needs of ASF members to his role. Berman’s early career included positions as an independent communications consultant and director, writer, and producer of film, video, and multimedia programs for education, motivation, and fundraising.

Tagged , , , ,
Jul 02 2012
1 Comment
Cara Donley, Grantmaking

The Surprising Lessons of Discretionary Grantmaking

By Cara Donley, The Donley Foundation 

A few weeks ago, my family’s small foundation had its annual spring distribution meeting. The foundation’s trustees came together to review the cycle’s grant proposals and decide whether or not to fund them.

While none of these meetings is ever identical to the next, they all tend to feel pretty similar: grants are reviewed, some are recommended and some are not, justifications are given and final decisions are made. Some version of this scenario has happened at every one of the meetings I have witnessed – until now, that is. At the most recent meeting, a new element was added to the proceedings, which can be summed up as follows: I made my very first grant – ever!

I should explain that I am a third-generation family member on the associate board of our foundation, so I am not a full trustee yet. Consequently, this was a discretionary grant that had to be approved by the board of trustees. I, along with my sister and a cousin – all in our twenties and relatively new to foundation involvement – researched potential grantee organizations and each of us chose one for which to propose a discretionary grant. Continue reading →

Tagged , , ,