Floyd Keene

Happy Anniversary, Exponent Philanthropy

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By Floyd Keene, The Triple EEE Foundation

It was bitter cold on December 3, 1997. I was driving to a monastery in Mundelein, Illinois, an unusual place to be driving at any time of the year.

I was headed to a conference sponsored by a new group called the Association of Small Foundations (now Exponent Philanthropy). I was attending the conference for two reasons: the group sounded interesting, and the conference was dirt cheap, a little over $200. Since I was local to the area, I would not have to pay for room and board. That was fortunate, since monasteries are not known for their luxurious accommodations.

I arrived at the conference five minutes early. There were about 25 people in the room, and the conference started right on time. We were about 10 minutes into the conference when a crazy thought hit me: WOW, these people are just like me. They are trying to run a foundation without really knowing how best to do it. My second thought: These people are not about putting on a show. After all, we are meeting in a monastery in Mundelein. Rather, they are about addressing real issues and helping me figure out how to deal with them.

This coming September, Exponent Philanthropy will hold a similar meeting in Chicago. No, not at a monastery, but I have full confidence that the substance of the 2016 National Conference will be the same as in 1997: knowledgeable staff, guests, and peers trying to help me solve my problems. You see, this is what Exponent Philanthropy has been doing for its entire lifetime.

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The Iran Nuclear Deal and Its Message to Philanthropists

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By Floyd Keene, The Triple EEE Foundation

Right now, the world is discussing the proposed Iran nuclear agreement. The Obama administration sees a massive foreign policy achievement; certain American politicians and other world leaders less so. Many U.S. philanthropic and religious organizations have taken a “wait and see” approach, wanting time to study and analyze before taking a stance pro or con.

Frankly, understanding the details of the agreement is above my pay grade. Thus, I am waiting for organizations I trust to reach their conclusions. Yet, whatever the fine print, the agreement screams out with various messages for the philanthropic community. These messages are important and urgent, no matter what happens to the deal itself.

What truly stands to threaten our way of life?

I grew up in the late 1950s and 1960s. Once a month at school we had an “air raid” drill, with all students marched into the basement and taught the “protection position” to protect our heads from the effects of an air attack. In those Cold War days, the fear of nuclear attack from the “evil” Communists was real. Fortunately, decades later, a nuclear attack on the United States has never happened, even though many regimes of questionable stability possess that power, including Russia, Pakistan, and perhaps even North Korea.

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One Great New Idea: Social Issue Specific PACs (SISPACs)

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By Floyd Keene, The Triple EEE Foundation

In his recent blog post “Philanthropy and the Trends of Our Times,” Andy Carroll states that the America of the future will see decreasing social spending coupled with increasing human needs. This will result in more challenging, less meaningful lives for millions of Americans. He is 100% correct.

Andy challenges philanthropists to create “promising ideas for how philanthropy can make our country stronger.” Luckily, there’s good news on the horizon. Largely unnoticed and not yet classified as a “movement,” one idea could well change America—and do it quickly. It could force government to make rational public policy decisions to address major societal issues.

This incredibly promising and emerging new trend is the SISPAC (Social Issue Specific Political Action Committee).

SISPACs run and act like any other PAC (Political Action Committee) but with one big difference: They concentrate on one social issue. They have been around for a while but are just starting to become more commonly known.

A logical evolvement of the Super PAC trend and created under IRS Code Section 501(c)(4), money given to a SISPAC would not be deductible. Yet there are many other reasons why SISPACs will become more and more prevalent, effective, and important—for philanthropists specifically and for our society in general.

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White House “Insider” Inspirational – Changes Are Coming to Philanthropy

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By Floyd Keene, Triple EEE Foundation

Recently I attended a special reception at Exponent Philanthropy headquarters. In attendance were fellow board members, D.C. area foundation leaders, corporate partners, and a special guest from the White House: Jonathan Greenblatt, Special Assistant to the President and Director of the Office of Social Innovation and Civic Participation in the Domestic Policy Council. As Director, Jonathan leads the Office’s efforts to use human and financial capital to bring attention to community solutions.

Jonathan was kind enough to join us even though he had a very busy day. At a White House conference that day, the administration announced a number of actions to stimulate impact investing, including $1.5B in commitments from a group of dedicated private and philanthropic entities.

At the reception, Jonathan described the conference and President Obama’s views on philanthropy and public/private partnerships. My fellow board members told me that I beamed during Jonathan’s entire presentation. I cannot disagree. Never before had I heard a speaker talk about conceptual topics, where I felt like he was plucking them directly out of the beliefs of my heart and the depths of my soul. At the conference, and in the press, the Obama administration indicated the following, with my reactions stated in italics:

1. President Obama’s new stress on philanthropic initiatives was inspired by a site visit to the B.A.M. (Becoming a Man) program run by Youth Guidance in Chicago. The visit helped spawn My Brother’s Keeper, a far-reaching Presidential initiative announced in February. 

Whenever I hear this story, I almost have trouble keeping it together. My foundation has long supported Youth Guidance, which began B.A.M. as a small pilot program several years ago. To now see it inspire an entire Presidential initiative is indescribably moving.

2. The Obama administration believes that governments and philanthropists alone cannot solve social problems. Rather, the private sector must be a key player in addressing social concerns.

This thought—almost an irrefutable reality—is rapidly becoming the mainstream view. It implies a changed world of philanthropy not considered possible 10 years ago. Jonathan’s words reminded me of a belief I have held for years: World hunger will not be solved by a big food drive. It will be solved by one brilliant entrepreneur, who figures out how to make money by solving world hunger. 

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Our Brand Catches Up With Our Reality

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By Floyd Keene, Triple EEE Foundation

The world of philanthropy is changing. Welcome to this new world, Exponent Philanthropy.

As the Association of Small Foundations (ASF) changes its name, the Triple EEE Foundation is both supportive and very excited about the reality encompassed by the new brand. Here in the Chicago suburbs, our foundation has for years tried to impact the world in a way far beyond our means. Our old friend, ASF, has stood at our side and helped us. Now our new friend, Exponent Philanthropy, continues to stand there to help, but also to excite and to motivate us anew.

Our foundation’s deep respect for ASF started in 2000. That year I went to an ASF meeting in Chicago and attended an investing workshop. The workshop addressed impact investing, which was then called “mission investing.” I really don’t remember what exactly was said at that workshop, or the names of the speakers. But I do remember leaving the room thinking, “Wow! This mission investing idea is the most amazing concept I have heard in a long time.”

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5 Trends That May Change U.S. Philanthropy

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By Floyd Keene, President, The Triple EEE Foundation

trends

Recently, I began thinking about major trends that will affect philanthropy in upcoming years. I concluded that the following five are likely to occur, and, if they do, they will change the face of American philanthropy forever. In fact, the fifth trend alone—the emergence of social issue-specific Super PACs—has the power to forever change the flow of philanthropic funds within America. 

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Save the Charitable Tax Deduction from the Fiscal Cliff

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By Floyd Keene, The Triple EEE Foundation

Currently, the charitable tax deduction (CTD) is under attack. As our nation approaches the “fiscal cliff,” limiting the CTD for wealthy taxpayers is one part of a possible fiscal cliff remedy.

  • Recently on national TV, Sen. John McCain said he is “very much opposed” to a tax raise but would support closing loopholes such as the CTD.
  •  For years, the Obama administration has submitted budget proposals that limit charitable deductions for persons above the 28% tax bracket.

Wait! Is this really happening? The Democrats and at least one major Republican agreeing on something? It could happen. And the victim would be the American people (giver and receiver alike) that the CTD serves.

THE NEW REALITY

There is a new reality in our nation that is likely to continue no matter how the fiscal cliff is vaulted, and no matter which party wins future elections:

  1. There will be less government spending on social programs, and
  2. There will be an ever-increasing need for social programs, caused by a slow-growth economy and aging population base

These are truisms. Together they create an environment where there is a greater need than ever before for private social spending. Reducing the CTD in such an environment is, put simply, an irrational public policy motivated by political compromise rather than logical thinking. Continue reading →

Society and Philanthropy – A New Paradigm

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By Floyd Keene, The Triple EEE Foundation

“Paradigm” is an overused word. However, there is no question that today a new paradigm is staring U.S. society squarely in the face. This new paradigm encompasses:

  • Less government spending on social programs  (no matter which party wins this fall’s and future elections)
  • An ever-increasing need for social programs, caused by a slow-growth economy and aging population
  • The need for American philanthropy to find new ways to address the above truisms.

Yes, over the next ten years American philanthropy must change. If it doesn’t, then it will be missing an amazing opportunity to serve the American people. Philanthropy should act as a wonderful orchestra, composed of talented and diverse individuals, providing needed sustenance to society.

However, all too often in the past, philanthropy has been reactive to specific social needs, satisfied with feeling good about itself. Instead, philanthropy must find innovative ways to utilize its existing resources more effectively, so as to significantly aid society, the economy, and most importantly, its own intrinsic and diverse social values.

The coming change in American philanthropy will likely involve the following:

NEW FORMS OF ORGANIZATION

1.  Future philanthropy will involve an ever-increasing transformation towards organizational entities that are created both to make a reasonable return on investment and serve specific societal needs. In short, the line between for-profit and non-profit entities will be blurred.

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Stress Test Your Portfolio – and Do It Now

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By Floyd Keene, The Triple EEE Foundation

In today’s world of economic uncertainty, many foundations are concerned about world events and how bad developments could affect their portfolios.

Europe, Washington politics, a large slowdown in China, Middle East uprisings, a new liquidity crisis. All these events could clearly affect the market and have very bad effects on a foundation’s portfolio.

Are you having trouble sleeping at night? Are you timid in your investment policy for fear of a world calamity? If you are, you are not alone. Many investors share your fear.

But there is one easy way to control your fear, so it does not adversely effect solid investing decisions: Do a stress test on your foundation’s portfolio. Moreover, given the incredible volatility of the market in recent months, do it now. Do it before world events surprise us all with a massive market correction, which could happen at any time.

In the words of the Boy Scouts: Be prepared.

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