I’m preparing for a small convening of grantmakers called “Moving Your Philanthropy Closer to Social Justice and Racial Equity” that will be taking place in Minneapolis this week. The meeting is being hosted by Community Philanthropy for Racial Equity. I’m excited because the topic is close to my heart and also because I think a lot of action will come out of the convening.

Colleagues have been asking me how things are different running a foundation, compared to being a program officer for one. I think the largest difference has been that a lot of my time is spent learning and spending time representing Headwaters at conferences. That visibility piece is key for us because we have the luxury of being the public face for the issues that our grantees are so hard at work at changing. Things like economic justice, human & civil rights, environmental justice, political power, and racial justice do not get the attention that they need in the foundation world. It is my job to make sure that those issues are at the table. Needless to say, I am loving it.

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First of all, let me say that I forgot how much reading is involved in a graduate level class. I saw the syllabus and almost fainted with the amount of reading that must be done on top of what I read for work. But the weekly topics will be very interesting and so I’ll try to consider it as “reading for pleasure”…

This week we discussed the regulation of foundations since the Tax Reform Act of 1969. The reading the struck me the most was “The Long Recoil from Regulation” by Peter Frumkin (1998). In it he discusses the results of the regulations imposed on foundations in 1969; of particular interest to me was his discussion of the change in foundations funding innovative, long-term programs and operating support to small, short-term targeted grants that are administratively heavy. When I was writing a paper for a fellowship last year, I read several articles with the same criticism of foundations being more interested in project-specific grants instead of funding general operating support or long-term investments in innovation. The unfortunate result is that nonprofits wind up creating new projects and programs to meet the requirements of the foundation when in fact all they need is money to continue to support their staff salaries or buy a new computer. So they create a new program (or reconfigure an old one) and fold in the operational expenses. It becomes a vicious cycle of grant after grant just to ensure that a key staff member still has a job.

In 2006 the Center for Effective Philanthropy released a report highlighting the need for operational support from nonprofits. In the findings, only 16% of the foundation CEOs surveyed were in favor of grants providing operational support. On the flip side, nonprofits preferred larger, long-term grants that supported their general operating expenses. The foundation I worked at in St. Louis, MO funded operational support and it was our most popular program. It was the one allocation that was completely spent every year. I’ve felt for a long time that more foundations should support operating expenses. There are many small nonprofits doing phenomenal things but they struggle to keep their doors open. So why not just help them maintain their programs? Why do many foundations essentially force nonprofits to reinvent themselves repeatedly so they can sustain their operations? Certainly there are new programs to be created but if something is going well and the organization is fulfilling its mission then it needs to be sustained, nto made to repackage its efforts for a 1 or 3 year grant.

I’d love to hear from those of you who do support operational expenses in your foundations and what you’ve heard from your grantees. I’d equally love for those who don’t fund operational support to make comments with their thoughts.

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The National Committee for Responsive Philanthropy, which is one of my favorite organizations because they promote philanthropy that serves the public good and helps keep foundation’s feet to the fire when it comes to accountability and transparancy, is hiring. This Washington, DC-based organization is looking for a field associate to plan and support programmatic work and field outreach of the nation’s premier philanthropic watchdog organization. The person in this position will be responsible for coordinating membership services, and support the field department in national partnerships, collaboratives and other special initiatives. More about this position can be found here.

A friend of mine from the Jaycees is looking for nominations for outstanding young Minnesotans ages 18-40 who deserve recognition for their leadership in the community. The Ten Outstanding Young Minnesotans (TOYM) program is Minnesota’s only statewide recognition program for outstanding young leaders. The program acknowledges the efforts of young leaders that have contributed to our state through their service, thought/influence, community involvement, or entrepreneurship. To submit a nominee go to: http://www.mnjaycees.org/ The deadline for submitting a nominee is this Friday, September 26th, 2008.

It’s great to see such a longstanding organization in the community recognize and nurture young leadership.

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Rosetta Thurman is one of my favorite nonprofit bloggers because she is willing to not only complain when she sees something that isn’t right, she moves people to action. Her recent letter to the publisher of the Nonprofit Times in response to little minority representation on the Power & Influence Top 50 list was timely and needed. From Rosetta:

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Clay Collins, author of the blog The Growing Life wrote this guest post for Penelope Trunk’s blog about why Generation Y is so productive. His reasons include:

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This week I’m going back to school. I will be auditing a course that I think will not only help me figure out the higher education conundrum (see my 7/10 post), but will also help me be a better new generation philanthropist by learning its past, present and future. The professor has allowed me to blog on the class, but requested that I not specify the class to maintain its integrity with the students who are taking it. So between this month and December, expect weekly musings and insight about the readings (which are in the public domain) as I progress through the semester. I hope good conversation can occur on this site as we all go forward in our philanthropic and foundation work.
And just to whet your appetite, here’s an excerpt from the school’s website about the class:

…some foundations, especially large ones, have grander and more aggressive ambitions. They aspire to function as proactive change agents that are instrumental in incubating and creating new institutions, fostering and deploying new knowledge, cultivating and spreading innovative ideas, spawning and
sustaining social movements, informing and shaping public opinion, reforming major institutions and service delivery systems, and impacting public policy.

…we will examine: (1) the original and continuing rationale for the existence of foundations; (2) significant examples of this catalytic role achieving its intended purpose; (3) high profile instances where best intentions backfired; and (4) the controversies that can arise when foundations choose sides in ideologically charged debates. The seminar will also concentrate on the spirited criticism that occasionally erupts over whether foundations are sufficiently transparent and accountable for their expenditures and impact; whether they should exist in perpetuity or be required to spend their way out of existence; whether and how they should be held responsible for the dubious actions of grantees; and whether they should be subjected to more rigorous legislative and regulatory strictures and oversight.

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Whenever I talk about next generation issues in the philanthropic field, someone in the audience usually asks how to engage the next generation of donors in their nonprofit organization. People seem to think that there is some magic password or special program that will make younger donors interested in their organization. There isn’t. Younger donors require the same relationship building and interest in your organization that any other donor requires. The key to engaging donors is a personal invitation to a relevant event that will help that potential donor learn more about your work. That invitation coming from a trusted source makes all the difference in the world. I recently received an invitation to a nonprofit fundraiser from one of my most well-connected friends, Lars. The part that most impressed me about the invitation that he asked me to share the invitation with my networks and those individuals would receive a discount to the event. The invitation that Lars sent me is below (feel free to contact him if you are interested in tickets to the event in Minneapolis:

I’m writing with a special invitation for you and your broader networks on behalf of Faith’s Lodge to join me in attending their first annual Hope Rocks! gala the evening of Saturday, September 20th; an event that will bring together hundreds of leaders, catalysts, and connectors from across the Twin Cities to join in supporting this great organization with an incredible party – a philanthropic model you all know well from your leadership within this community to engage next generation donors.

What is Faith’s Lodge? It is a unique retreat in northern WI for families who currently have a seriously ill child or have suffered the loss of a child.

You can view the very innovative and unique flash event invite here.

There will be a private performance by Soul Asylum and a killer silent auction and raffle including a concert package for the Coldplay show in St. Paul in November that includes attending the soundcheck, backstage access, and time with the band.

You can get an advance glimpse of what that would entail here. (password is “bestbuypics”)

Faith’s Lodge board has set aside a batch of individual tickets at a 30% discounted rate of $100 per ticket that will be made specially available to you and your respective networks on a first respond, first served basis as a special effort to engage next generation leaders in our community.

If you, or anyone in your network, is interested in attending through this special offer, please email me back directly at larsl (at) keystonesearch (dot) com asap so that we can get your tickets reserved.

You can see who else is serving as sponsors and members of the event host committee member here.

We hope you and others from your network will join us on the 20th. Thanks very much for your time and help spreading the word.

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This is my first week as the Executive Director of the Headwaters Foundation for Justice, so I thought it would be a good time to write about managing a job promotion. I have moved from a front-line position where I have a responsibility for a specific task that moves the organization’s mission forward (grant review) to a position where my job is to figure out what our strategic direction is and make sure that my staff has the resources and systems to support them in doing that work. I have always loved strategy work and have been preparing for the last month or so by learning as much as I can about the organization’s operations and the landscape of the community foundation and social justice fields. What I have realized, now that the job has started, is that you have to mentally adjust into that role as well. Here’s what I have been doing to manage this mental transition:
Set aside large chunks of time to do strategic thinking- I have found that there is a adrenalin high that I got from finishing a specific project (or a grant review) because it was complete and I could check it off of my to do list. Strategic thinking is never finished, so I have been breaking it into small areas that I am developing plans for.
Talk to others that have been in your shoes- There are lots of great philanthropic leaders in my community and nationally that have been amazing sources of advice and support. I am using these sources to learn more about how they managed the transition from front-line staff to strategic thinker.
See the forest through the trees- Being new on staff allows you the opportunity to see the organization with a fresh perspective. Those fresh eyes only last so long, so I have been writing down any trends or processes that jump out at me as areas that might need work in the future. Rome wasn’t built in a day but it is important to have a long-term blueprint so you remember what needs to be fixed or created.

Do you have any advice on how I manage this job transition?

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Minneapolis St. Paul is hosting the Republican National Convention this week. The influx of political junkies is intended to jumpstart our local economy and prove to the world that Minnesota is not just flyover country anymore. I’m not sure if either of those things will happen but I have been impressed with how local community activists are using this as an opportunity to merge art and political discourse to create a variety of community building events, including the UnConvention. A non-partisan collective of citizens and cultural institutions, The UnConvention provides a forum for promoting the democratic and free exchange of ideas during and after the Republican National Convention in St. Paul, Minnesota from September 1-4, 2008. My favorite project by far is the My Yard Our Message project.

My Yard Our Message is a user-created yard sign project, launched in conjunction with the United States presidential election. The project is divided into three phases: in June 2008, artists and designers were invited to submit political yard sign designs exploring ideas about what it means to actively participate in a democracy. Beginning July 1, with design submitted, and a month-long public voting process began, where browsers could cast votes for their favorite yard signs. And now that the citizenry has spoken, the top 50 vote-getting designs are available for individual purchase.

In addition, the Walker Art Center and mnartists.org will print the winning yard signs and place them in neighborhoods throughout the Twin Cities metro area, including those immediately surrounding the site of the Republican National Convention.

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