Foundations

Best First Step?

I received a copy of the following letter today:

Thank you for your time in reviewing this letter.  The intent of this communication is to determine if your foundation goal and the special project goals of the ____ (organization) are complimentary.

The letter goes on to list ten funding opportunities.  I felt a bit like a trout sitting on the bottom of a stream watching a fly with the price tag still attached floating on the surface.  If you cannot customize the presentation in any meaningful way then the most likely catches will be the uninitiated or unmotivated.  Direct mail in the social sector is shown to get 2-3% return rate.  Since this letter was addressed to “Foundation Administrator” I project that very few individuals will feel a personal connection.

How could this invitation be improved?  Would a personal salutation help?  Had the letter noted previous grants made by the foundation that aligned with this organization’s funding opportunities would it resonate more?  Would a follow-up call to expand on the communication be compelling?  What would attract your interest?

Deadlines

I am involved with a small foundation that provides scholarships to youth so they may attend events that will have profound impact on their character.  There are three grant cycles during the year.  Invariably a youth group will forget to submit an application during there preferred grant cycle and contact us after the funds have been distributed.  Some of these groups are organizations the foundation has historically funded and some are new.  I am often find myself trying to accommodate the late applications but inevitably the size of the grant these tardy applicants receive are deeply discount compared to what they might have been awarded if the organization had applied on schedule.


How firm should grant deadlines be?  Ultimately, it is the youth who are impacted by fewer scholarship dollars since the funds are restricted and do not go towards general operating expenses.  If the foundation is trying to achieve a mission of adding value, is it best to stand firm on principal or better to increase the number of opportunities?  Is it better to benefit the intended recipient or sharpen the youth organization’s attention to detail?

Should the Goverment Determine Who a Foundation Gives to and How Much?

A debate is underway about ‘who’ private foundations grant funds to on an annual basis. The question at hand is if foundations are serving the public good or have they become tax shelters for the wealthy? Does a foundation’s grant making serve the basic needs of the public or have the grants become focused on serving only a few? Giving USA provides an annual breakdown of the giving philanthropic giving by Americans (foundations, corporations, individuals). See a report on the most recent data from 2006 philanthropic giving.

Now the debate is part of the Obama Administration’s conversation on reshaping America.

Excerpt from WSJ article:

The report, titled “Criteria for Philanthropy at its Best,” advises foundations to “provide at least 50 percent of grant dollars to benefit lower-income communities, communities of color, and other marginalized groups, broadly defined.” The committee looked at 809 of the largest foundations in the country, whose combined three-year grants totaled almost $15 billion, and concluded that the majority of foundations are “eschewing the needs of the most vulnerable in our society” by neglecting “marginalized groups.”

http://online.wsj.com/article/SB123604548985015461.html