Elaine Gast Fawcett

Inside Look at a Funder Collaborative

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By Elaine Gast Fawcett, Four Winds Writing, Inc.

The Ohio Transformation Fund (OTF) wants to change its state’s justice system from one of mass jailing, particularly of young people and people of color, to one based on stable families, economic security, and access to health care and education. It began with the vision of a national funder building a model together with local funders and key partner organizations.

In early 2015, after considerable research of criminal justice reform, the Ford Foundation identified Ohio as a place with potential for statewide change.

“Whereas criminal justice reform is getting a lot of attention at present, in many states, the issue has historically been an issue that politicians and funders don’t want to touch,” says OTF executive director Judy Wright. “In Ohio, leaders on both sides of the political spectrum agree that we have the opportunity now to get something done.” Pair that with Ohio’s long history of organizing capacity, grassroots strength, and committed group of funders invested in safe communities.

Inviting Fund Partners

The Ford Foundation invested $1M to the Fund, with a matching requirement to raise half that amount. The Fund then approached Ohio-based funders, or those who have invested in Ohio, in any of three areas: community organizing, policy/advocacy work in criminal justice, and civic engagement. “Our theory of change is that, whereas each of these areas is important and necessary, none on its own can create sustainable, statewide change,” says Wright.

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Sabbaticals for Nonprofit Leaders and Their Funders

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By Elaine Gast Fawcett, Four Winds Writing, Inc.

Funders are supporting sabbaticals for nonprofit leaders—and taking sabbaticals themselves—as a way to step back from professional identity, let go of routine, and restore their energy for the long haul. 

The Durfee Foundation has been a leader in funding nonprofit executive sabbaticals for 20 years. “Since the beginning, our board has focused on leadership and investing in strong individuals who make a difference,” says foundation president Carrie Avery. “What we observed was a lot of nonprofit executive directors who loved their jobs, but left their jobs, because they were burning out.” “We wondered,” continues Avery, “‘What if we could offer people a safe space to step back, take a breather, and return to their organizations after a period of rest and reflection?’”

Now every other year, the Durfee Sabbatical program offers up to six stipends of $45,000 for nonprofit executives to travel, reflect, or otherwise renew themselves in whatever way they choose, for a minimum of 3 consecutive months.

Yet sabbaticals are much more than time to “rest and feel good,” says Avery. Sabbaticals elevate leadership and increase organizational capacity. “Time and again, after leaders return from sabbatical, their organizations take a big leap in creativity and productivity. This is a powerful organizational effectiveness tool.”

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How Do Funders Navigate the Power of the Purse?

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By Elaine Gast Fawcett, Four Winds Writing, Inc.

Too often, grantees do the asking, reporting, and proving, while donors sit in positions to say yes or no, how much, when, and what’s required. Navigating the complex grantee–grantor relationship takes more than just good intentions—it takes flexibility, finesse, and a sincere desire to balance the power dynamics at play.

Katherine Lorenz, president of the Cynthia & George Mitchell Foundation, knows about the dynamics between funders and grantees. Before becoming a funder, Lorenz spent years as a fundraiser and grantee. In 2003, she cofounded a nonprofit in Mexico to advance food sovereignty in rural Oaxaca. That experience gave her perspective on the challenges grantees face.

As a fundraiser, Lorenz always felt “like we were asking for a favor: ‘Would you mind’ or ‘Would you maybe consider giving to us?’ ” In addition, she found that many funders were opaque in what they wanted; it was never that clear how to get in the door. “Every funder had different rules and requirements, how they wanted the proposal and budget to be,” she says. Especially with small funders, the process seemed impossible to navigate.

Build Transparency and Trust

Lorenz says the greatest gift funders can give upfront is clarity about what they do and do not fund. “When you have a focused strategy,” she says, “it enhances the relationship with the people you say yes to, as well as the people you say no to. This kind of transparency helps ease the power dynamic.” To this end, one of the first things Lorenz did as president of her family’s foundation was create a website. “Even in the midst of transition, we’ve tried to be as transparent as we can about what we fund, the program areas we think we’re moving into, and the timing of it all.”

Although the Mitchell Foundation doesn’t tend to fund many unsolicited grantees, it nonetheless offers an online grantee portal, where any organization can engage with the foundation. “This is an entryway for organizations to apply and be seen by program staff, and it helps us, as funders, to know who’s out there.”

“There’s a lot of talk in the funder world about grantees being partners, but it does not feel like that in the grantee experience,” she says. “To be able to be honest with a funder and be treated as a true thought partner—that’s a rare and wonderful experience.”

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Readying Your Philanthropy for an Influx of Assets

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By Elaine Gast Fawcett, Four Winds Writing, Inc.

Ramping up—or significantly increasing charitable giving or activities—can be an empowering transition point in your philanthropy. It can also leave you bewildered by the complexities that come with your new normal.

What does it mean to ramp up in response to an influx of assets—perhaps the most common reason funders increase their charitable giving and/or activities? Here’s how one family foundation is managing this transition.

Case Study: The Cynthia and George Mitchell Foundation

When Texas oil giant George Mitchell died in July 2013 at age 94, he left behind a thriving family of 10 children, 23 grandchildren, and 5 greatgrandchildren. A lifelong environmentalist, Mitchell signed the Giving Pledge committing the majority of his wealth to charity. Upon his death, he bequeathed an estimated $750 million to the family foundation he and his wife (who died in 2009) established in 1978—The Cynthia and George Mitchell Foundation.

The foundation, which to date has been operating with $115 million in assets and a small staff of three, is now charged with ramping up its operations to prepare for this influx of assets—expected in full by 2018.

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Telling Your Story on Social Media: Family Funders Share Tips

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By Elaine Gast Fawcett, Four Winds Writing, Inc.

This post originally appeared on Philanthropy Writing: The Heart of Giving (February 26, 2014).

Family foundations are a modest bunch. Most prefer operating quietly in the background, out of the limelight, away from any undue attention. What this means is that, many foundations—particularly those that keep their operations on the smaller side—have been slow to take advantage of social media.

This is starting to change. Foundations are finding that social media is important for advocating for the causes they care about, and deepening community connections. In a recent National Center for Family Philanthropy webinar Telling Your Story to Maximize Community Impact, four funders shared how they use social media, and why.

The most compelling reason: “If you don’t define yourself, others will define you,” said Jay Ruderman, president of The Ruderman Family Foundation. Sure, social media means putting yourself out there—which, for family foundations, can mean increased exposure and more funding requests. Yet foundations have a tremendous power to leverage the stories they tell—and their stories can help grantees. Here are more lessons learned:

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How to Save Yourself From Your Smartphone – and Find Balance in Today’s Connected World

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By Elaine Gast Fawcett, Four Winds Writing, Inc.

E-mails, texts, and voicemails to answer. Links to follow. Comments to read. Tags, posts, feeds, filters, usernames, and passwords. We navigate a dizzying amount of information every day, and it takes work to manage this connectedness. Plus, it’s hard to pull away from the allure of a lighted screen and the promise of something new.

In the face of today’s constant flow of information, here are six small but meaningful changes you can make to keep your productivity high and your spirits happy.

  • Define what balance means to you. Take a few moments to answer these questions in writing: I know I am out of balance when… (e.g., I’m not able to find time to reflect, or go for a run, or cook for myself.) I know I am in balance when… Now compare the two. Notice the times when you feel in balance. How can you spend more time in that space?
  • Use technology tools to moderate and manage. There are plenty of tools and apps to help you manage distraction and even schedule time to relax. You can track your computer use at TimeDoctor.com. Or set up an online Mindfulness Bell, which reminds you to take a break. You can turn off your e-mail, text, and Facebook alerts. You might use Outlook to block 30 minutes of time for yourself. Or you can set up inbox filters to block or manage nonessential e-mails.

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Get Your Fellow Funders to the Table

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By Elaine Gast Fawcett on behalf of ASF

Many small-staff foundations are looking to funder collaboratives as a way to leverage resources and work on a larger scale. Some come together to learn, others to align grants for publicity and impact, and yet others to pool funds. How are they finding collaborators, and what are they learning about how to succeed?

The ASF member Jim and Carol Trawick Foundation in Bethesda, MD, formed a funder collaborative in 2010 when it invited three local funders to contribute $30K each and participate in the decision making for one of its initiatives.

“It was the smaller foundations like us that were more open to collaboration,” says President Carol Trawick. She could reach the decision makers of these foundations right away, and she found they can move quickly without a lot of organizational structure in the way.

Yet the burning question is this: How do you get other funders to the table? 

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Debunking 4 Myths About Hedge Funds

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By Elaine Gast Fawcett on behalf of ASF

Myths

Some small-staff foundations are turning to hedge funds to diversify their portfolios and stabilize returns in a volatile market. Is your foundation saying yes or no to hedge funds for the right reasons?

Once a little-known corner of the market, hedge funds are becoming increasingly mainstream among nonprofit investors including foundations, college endowments, and the like. Yet investors have many misconceptions.

According to Brian Gray and Alan Lenahan of Fund Evaluation Group, LLC, here are some of the popular myths:

  • Hedge funds are high risk. This is something you may have heard in the media. In fact, the goal of most hedge funds is to reduce risk, but that doesn’t necessarily make for an exciting news story. What can be seen as risky is the illiquidity and lack of transparency.

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Convening to Build Capacity

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By Elaine Gast Fawcett on behalf of Exponent Philanthropy

Lindsey Stammerjohn, Juanita Garcia

Exponent Philanthropy member Lindsey Stammerjohn (R) and board member Juanita Garcia

When it comes to learning about important issues and moving the needle in the right direction, convening is a low-cost and high-impact leadership tool you can’t overlook.

The Exponent Philanthropy member John Gogian Family Foundation and executive director Lindsey Stammerjohn began convening grantees in 2010 as part of a capacity building initiative. They recognized common struggles that many grantee partners shared, and chose convening as one way to address these needs while connecting the organizations to one another.

At its first gathering of grantees, Stammerjohn sat in the back of the room. “We wanted our grantee partners to drive the process, and tell us if gathering as a group was valuable to them,” she says. “It became apparent quickly that we needed to have a clear purpose for convening. We had to do more than get everyone together for doughnuts and coffee.”

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Why We Convene

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By Elaine Gast Fawcett on behalf of Exponent Philanthropy

When it comes to learning about important issues and moving the needle in the right direction, convening is a low-cost and high-impact leadership tool you can’t overlook. In fact, many consider it to be a funder’s most underrated. In part 1 of a 2-part series on convening, hear how an Exponent Philanthropy member foundation uses convening to reach its goals. Read part 2 in the series

The Hau’oli Mau Loa Foundation started convening 10 partner grantees with two goals in mind: to provide a space where they could share and learn from one another, and to help them feel excited and renewed.

“It started as a way to bring partners together. We thought there would be value in them sharing experiences, challenges they face, and successes they see,” says foundation executive director Janis Reischmann. “Someone reminded us that grantees get caught in the day-to-day of their work, and, if we could do nothing more than to re-inspire and re-energize them, that would serve them well.”

Still, the foundation stepped in with caution.

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