13:00:53 Our, the title of today's events is giving. Right. Giving my foundations trends and insights before we dive in.
13:01:05 I want to tell you a little bit about Alfred Group and go through some housekeeping items.
13:01:11 So many of you, most of you are familiar with who we are and what we do. But for those of you who may not be, offer group is a national full service consultancy.
13:01:22 We work specifically with the nonprofit community and have 6 flagship services seen here on the screen.
13:01:28 All thanks fundraising, strategic and organizational planning, governance and leadership development. Interim staffing, data management, analytics, and diversity, equity inclusion.
13:01:40 We are a proud sponsor and member of AFP. The Association of Fundraising Professionals, we're a certified women's business enterprise and a member of the Giving Institute.
13:01:54 I want to, pause and take a moment to acknowledge the land on which we reside.
13:02:01 I realize all of you are coming from many different places across the country, but we're going to acknowledge Chicago, Illinois, which is where I'll for groups headquarters is based.
13:02:10 Chicago is located on the traditional unseated homelands of the Council of 3 Fires. The Jibua, Ottawa, and Padawanami Nations.
13:02:20 Many other tribes such as the Miami, Ho Chunk, Menominee, SAC, and Fox also called to this area home.
13:02:28 The region has long been a center for indigenous people to gather trade and maintain kinship ties.
13:02:36 A few housekeeping items before we get started. This webinar is being recorded. We will share the recording of the webinar with you via email, within 24 h of today's session.
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13:02:55 Would love your feedback. Everyone today is in listen only mode for the duration of the webinar. However, the chat is open and we encourage you, to use the chat, for reactions, comments throughout the presentation.
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13:03:26 So we will better be able to track the questions as they come in and we will answer as many questions as possible at the end of today's presentation.
13:03:36 Want to let you know that our session today is approved for one CFRE credit for anyone seeking certification or.
13:03:42 Certification for your CFRI credentials. And then finally, please join us, on social media as well.
13:03:52 So you can use our handle at the Alfred group and the hashtag giving you a say, 2,023.
13:03:58 And, we will. Engage in conversation there as well. So without further ado. I will hand things over to our moderator.
13:04:07 Today who is Sharon Tickness. Sharon is the chief. Client experience officer with all for group and she will lead us through today's session.
13:04:19 Thanks.
13:04:17 Hello everyone happy Thursday happy foundation learning day. We're so excited to have this time with you this conversation with you as Lucinda said I'm Sharon tick this I used the pronoun she her I'm sitting in my home office wearing a gold top and pearls have short brown hair and behind me is a bookshelf and a mirror and a lamp.
13:04:42 And I wish we were in a room together so you could see that and be with us all in person and in in eye eye with each other.
13:04:52 As we get started here, just wanna let you know that I'm gonna just quickly go through touch on some key metrics.
13:04:59 Around the Giving U.S.A. data that was released this summer. Specifically with the focus on foundation giving, our group loves to base our, our thinking, our thought leadership, our work with clients around data.
13:05:14 And helping that to inform how we think about the way that we approach our work. And then I know that you are, as I am so excited to have a conversation with our 3 panelists and I'll introduce them to you in just a few moments.
13:05:29 So let's jump in. I'm giving U.S.A. is the longest running report on philanthropic giving in the United States.
13:05:40 It's developed by the giving U.S.A. Foundation, which is part of the Giving Institute.
13:05:46 Alpha Group is a proud member as Lucinda said at the Giving Institute, a group of consulting firms like Alfred Group and those in the social sector who help to bring strength and wisdom to the way that we can all be informed in the way that we work and utilize philanthropic dollars to have its greatest impact.
13:06:08 We're also so thrilled that Brenda Asari, our president and CEO of Alpha Group, is now serving as the chair of the board of the Giving Institute.
13:06:17 We are so grateful to our research partners and the Indiana University Lilly School of Philanthropy who compiles the research and writes the report along with members of Giving Institute firms.
13:06:32 It is a big data project. It's 100 and it represents a hundred 28 million households.
13:06:38 1 point nearly 5 million nonprofit organizations, 90,000 foundations plus businesses of all sizes. So maybe we'd love to hear from you how you use the Giving U.S.A. data in your organization, feel free to drop in the chat.
13:06:59 You use it with your board, you use it as a benchmark to your giving. How do you use the Giving U.S.A. data?
13:07:04 We're dying to know. We hope that it's something that lives and breeds and the way you think about your approach.
13:07:14 And the report is available to you with a 30% discount. You can write to info at alford.
13:07:21 Com and get the link and the code to by the report it comes in a subscription model. It's great information for you to be able to use in your work.
13:07:32 So real quickly, 3 quick takeaways from the Giving U.S.A. data. In 2022 giving was down after 2 years of record generosity.
13:07:43 Foundation giving is up and comprises a larger percentage of overall giving. And now more than ever strategies to stay in relationship with your donors could not be more essential.
13:07:57 So just looking at the big takeaway around giving overall, the data came out last, again, a couple of months ago, with a total of 499.3 3 billion dollars in total giving.
13:08:12 That was a decline of 3.4% in current dollars and a decline of 10.5% in inflation adjusted dollars.
13:08:21 I'm going to be using inflation adjusted dollars as the comparison. The report comes in both, but from our vantage point, inflation adjusted daughter's dollars gives you a better year to year and decade by decade comparison.
13:08:37 So as we look at total giving over, the last 40 years, you see here how the the trend in giving has continued to go up except for as you see in the green bars periods of recession.
13:08:52 However, in our great shared experience around the pandemic, while we had a reception recession in 2020 giving did not go down it continued to soar so we we just want to take that frame of reference about the generosity of giving and how giving, to take that frame of reference about the generosity of giving and how giving follows trends relative to economic performance about the generosity of giving and and how giving follows trends relative to economic
13:09:21 performance. Economic in 2022 we saw a reduction in personal income personal household income. Personal income, personal household income, obviously related to inflation, personal household income, obviously related to inflation.
13:09:31 The S and P declined by 19.4% GDP was down by 2% GDP.
13:09:38 I love to talk about GDP, but I'm not going to go into it. But it represents the value of all goods and services.
13:09:44 Within a nation's economy and it was down in 2022 as well. And then we know inflation was a big story last year, the highest in 40 years reaching 8%.
13:09:56 I checked this morning it was 3.6 7% so we've come down significantly and at alpha group we're finding that our clients are feeling confident about the economy and giving it higher levels while there was some pull back and wait and see kind of thinking in the last year.
13:10:15 But we're here today to talk about giving by foundations, asset has grown as a share of total giving in recent years.
13:10:24 And you can see here how the makeup of giving across the the categories of giving is distributed and so while we see here that individuals are 64% and bequests which obviously represents giving from individuals.
13:10:47 It's 9%. When we look at foundations as 21%. We want to recognize that about half of foundation giving is from individuals either through individual family foundations or through giving to donor advice funds at foundations.
13:11:06 So just to remind ourselves of, you know, giving by individuals whether it's directly or through a foundation or a foundation via, such as a community foundation, is represents 83.5% of all giving and I know how important it is for us all to be able to share that context as we talk with donors and volunteers and board members relative to the significance of giving.
13:11:36 But going deeper just, you know, looking even at mega gifts, we think about these as being, we read about make a gifts all the time.
13:11:44 A mega gifts is. Calculated at a 500 million dollar or more gift. When we look at these mega gifts in 2022 you see that the majority of them are by individuals to their family foundation.
13:12:00 Bill Gates giving to the Gates Foundation. Mackenzie Scott is the exception here.
13:12:05 She has been, you know, fantastically giving in deeper and broader ways to many sectors throughout the country.
13:12:13 Warren Buffett, gave 758 million, but to, 4 different foundations.
13:12:20 So again, you can see how a lot of the mega gift giving is going into foundations, which is why we're here to talk about how to have the strongest possible relationship with foundations.
13:12:32 But just to note that only 5% of total giving comes from mega gifts. So some people are, you know, want to keep their eye on that shiny object of, you know, where does, where can we get a mega gift, but realize that it's everyday gifts.
13:12:50 It's the long time donors. It's the long time partnerships with foundations and corporations that will result in major gifts to your organization.
13:12:58 Just taking a quick look here and giving by source over 5 year increments. I want to call your attention here to this.
13:13:07 This green line. You see it goes from 6 to 7 to 8 to 11 to now 19% of total giving coming from foundations.
13:13:17 So again, this just demonstrates this trend that foundations are now representing a larger, a larger method of giving philanthropic dollars to your organization.
13:13:32 Again, just providing this for context that you all represent organizations in each of these sectors. You can see here, find your sector and see what percentage of giving is coming to you.
13:13:48 We do want to recognize that gifts made to grant making foundations as well as giving to public society benefit, which includes foundations such as associations such as organizations that are giving to distributing gifts to organ to the nonprofit sector.
13:14:17 So, the nonprofit sector. So, distributing gifts to, to, the nonprofit sector.
13:14:22 So, again, giving 2 foundations shows up even as we look at, Again, just looking here at this foundation line, the lime green, which here you see a 6 oops sorry go back.
13:14:30 6% and then giving to foundations over here. 11%. So again, just to show, how as a portion of total giving to nonprofit organizations by sector has increased in the foundation realm.
13:14:49 So, jumping back to our third takeaway as Alpha Group looked at the overall data for this year that, you know, giving is shifting, giving is intentional, the ways that people give is changing and now more than ever the tried and true reality that giving is relational not transactional is such an important perspective for us all to remember and the way that we approach our communication our engagement of donors and we just want
13:15:24 to invite you to think about your work. As really boiling down to how you can engage your partners, your foundation partners.
13:15:35 In the, the most relational and authentic ways. Just a reminder that foundations are independent foundations, they're public foundations, their private foundations, their community foundations.
13:15:52 So the spectrum of foundation giving that we're talking about today is everything from a new family foundation to a longtime foundation to the foundations that you hear about every day and the consortium of community foundations, which are such an integral part of so many communities across the country.
13:16:12 So with that, I just want to invite you all to, jump in and respond to a poll.
13:16:23 How do you think foundations are prioritizing their giving strategies today? What do you seeing in your relationship and your engagement of foundations.
13:16:32 You see here 4 areas and we ask you to choose 2. This isn't scientific, but just to give us a bit of a pulse of how you all are thinking about your foundation engagement and we're eager to hear.
13:16:47 What you all think and see here. And while you're doing that, I'm going to take a moment to introduce our panel who like you I'm sure are excited to hear about how they're approaching their work in foundation.
13:17:05 So first and Liz, Philip and Don, I invite you to come on camera and join the the conversation here.
13:17:13 Liz is the CEO of the Cleveland Avenue Foundation for Education Group. I love the acronym Cafe, which is the the way that they talk about their focus work on with college access career readiness and attainment.
13:17:28 Liz is just a phenomenal volunteer and part a board member and advisor to so many nonprofit organizations.
13:17:37 I've had the great privilege of working with her at Chicago Community Trust and the We Rise Together project.
13:17:43 She's really passionate about mentoring students and young professionals as they try to transition into their adult life.
13:17:51 Philip Lanham, a wonderful friend, is the president and CEO of the Gulf Coast Community Foundation.
13:17:57 He guides the foundation's strategy programs, operations and investments. I was so fortunate to work with Philip at the Greater Cincinnati Foundation, where until recently he served as the chief philanthropy officer and he also has served as the past president of AdNET, a consortium of philanthropy professionals throughout the community foundation network.
13:18:23 And then Don Cook, who's now a colleague at Alfred Group and delighted to be working with him with clients, but until recently was senior vice president for philanthropy at the Robert R.
13:18:34 McCormick Foundation based in Chicago. At his work was to provide strategy and oversee grant making with the focus on supporting and partnering with organizations and communities addressing democracy, education, violence, justice reform, and supporting veterans.
13:18:53 So with that, let's jump in and I just invite you all to just say a few words about you know your thinking about what we're seeing in our foundation.
13:19:06 Trends and how that resonates with you in your work. And Liz, may I invite you to begin?
13:19:11 Certainly. Thank you, Sharon. It's such a pleasure to be here. My name is Liz Thompson.
13:19:18 My pronouns are she and her. And a new practice that I'm learning describing my background.
13:19:25 I am sitting in my office in Chicago and my background includes 2 windows as well as a lot of important ch to me.
13:19:35 What I will say first of all is what a pleasure it is to be here today. Sharon, thank you.
13:19:41 I don't take it lightly that I'm speaking to hundreds of people that have chosen a career in philanthropy that have chosen a career in philanthropy.
13:19:49 You could be doing a career in philanthropy. You could be doing anything and yet you've chosen.
13:19:52 Raise money for issues and missions that mean so much not only to you but to this world and I respect you I see you and I thank you for making those career choices so I wanna just honor you first for that.
13:20:08 And the next thing I do want to say is as Sharon mentioned, we all have such different perspectives.
13:20:14 I'm representing my very small family foundation. I'm a philanthropist that is proud to invest the money that we've been blessed with the resources.
13:20:24 I am a fundraiser that runs a 501 c 3 that has to fundraise so I identify with the hundreds of you on the call.
13:20:32 But I run a foundation that is beholden to the rules, the laws of the IRS.
13:20:38 And so as I see these trends sharing that you highlighted for us today, I'm both encouraged because of how much foundational giving is up historically over these last few years.
13:20:50 And also, you know, concerned about it being down slightly and I understand from an economic perspective why that is but I also feel deeply that what we saw in 20 and 21 was as a response to the multiple pandemics that we had.
13:21:06 And what I'm hopeful, but. Honestly, not entirely sure. Is that that trend won't completely go away, that people won't.
13:21:16 Have just given because the moment called for it, but the moment has been calling for it for centuries. And so I hope Sharon is that
13:21:23 Hmm.
13:21:27 People dug in, understood the problems, the issues and that, what they saw. Has called them to continue giving at the pace that we did before.
13:21:37 Hmm. Thank you. Les. Philip, would you like to say hello next?
13:21:44 Oh, can't hear you.
13:21:49 Yeah.
13:21:47 Yeah, 3 years later and we're still, Sharon, thanks for having me invite me to be part of this important panel.
13:21:55 My name is Phillip Lano. He, him. I am currently located in Sarasota, Florida at our, the Gulf Coast Community Foundation.
13:22:05 So, the Flanthropy Center. As Sharon mentioned, I've been the CEO here since June first.
13:22:08 And, And I am, in front of a dark background with shoving and I have white shirt on with a blue jacket.
13:22:18 And, I am. Glad I'm really, it's rewarded to be here because the audience are my people.
13:22:29 Okay.
13:22:26 I have been a grant seeker unless my entire career and I I get you I see you as Liz said and I think every grant maker should have been a grant seeker at some point in their career to understand the how stressful it is and to have that lived experience to relate to other grant seekers as we make decisions.
13:22:48 That's I can all myself box on that front. I want to give a shout out to Kristen from the Florida Center for Early Childhood.
13:22:57 I saw you check in in the chat and a local Sarasodian. So we'll give shout to you.
13:23:01 Sharing to your question of my overall thoughts about it. It's exciting to see foundation growing, foundation giving growing over.
13:23:09 That trend for 1983 i think it went back to i'm excited to see that it does speak more to where the wealth is in our society that it's the rich are getting richer and the 1% is becoming you know the point 9% and they are the ones who are establishing the foundations which is good for the rest of society.
13:23:29 I also the fundamental issue with private foundations and I know this is probably foundations. It was always meant to be a floor, not a ceiling.
13:23:43 And I think one of the issues we're seeing after 20 and 2020 2021 is people are going back to it being a ceiling.
13:23:49 And they had so much carry over from 2020 and 2021 because they did they dug deep between.
13:23:56 The COVID pandemic and the racial awakening that we had in 2020 people dug deep and went into beyond the 5% but then they got that carryover from the IRS and they didn't have to give as much they weren't required to give as much in 2022 and I'm I fear that might been one of the reasons we're seeing that decline in 22.
13:24:19 Yes.
13:24:17 Right. Thank you. God, I should have noted speaking of a grant maker and Grant Seeker that before your work with the McGuire Foundation, you were the Chief Development Officer at the Field Museum and Philadelphia Orchestra and and certainly come from the Grant Seeker mode as well.
13:24:36 Yep, thanks, Sharon. That's, I was thinking of sharing that because it is, I agree with Philip, a hundred percent.
13:24:45 It was very important to have raised money. For a number of years and gone through that in order to come over and have more sensitivity and understanding of the dynamic between the people who can give it away and the people who who need it to do their work.
13:25:07 Yeah.
13:24:59 Yeah, name's Don Cook, programs, or he, him. I'm in front of a wall of stuff that includes a commemorative baseballs that I collected at World Series and All-star Games over 10 years at McCormick Foundation working with Major League Baseball to help veterans coming home with post-traumatic stress.
13:25:20 And we set up clinics across the country and and had a great program but one of the benefits was I got to go to some games and and pick up baseballs which are you know now collecting dust.
13:25:32 Yeah.
13:25:32 I agree completely with both Liz and Philip on this issue of the decline. I think that that I know many of our colleagues in Chicago really reached beyond.
13:25:46 Beyond the ceiling or as as Philip put it and and probably have come back a bit. I also very concerned and would love to see more detail on this at some point of of the smaller givers and and how the situation with the pandemic and and in inflation.
13:26:07 You know have affected their their giving overall you know the rich have gotten richer and even though rich have gotten richer and even though there's sometimes there's concern about you know the rich have gotten richer and even though there's sometimes there's concern about you know the feeling about the stock market affects them psychologically in terms of their giving.
13:26:24 I think the stock market affects them psychologically in terms of their giving. I think really we've been sort of, you know, hurt in the middle of giving pyramid.
13:26:31 And I would love to see some more information on that. As of foundations, I think a lot more in donor advised funds, a lot more people setting up family foundation.
13:26:41 So big growth there and and you know the the stock market despite ups and downs is higher today than it was before the pandemic and so when foundations are working off rolling averages and and calculating the 5% it's you know there's going to be continued growth in that as long as the markets do well.
13:27:05 Hmm.
13:26:59 But I think that I think so much has to do with psychology in this in this world and and particularly in giving at all levels.
13:27:08 Right. Philip, I want to go back to you when we were thinking about this, like what is changed?
13:27:16 How did the pandemic impact giving and what is changed? You had an interesting point about how federal giving is perhaps playing a part then and now.
13:27:25 Yeah. The well I was seeing so just for the participants I have 2 perspectives I have my Cincinnati experience which goes up until March 30 first of this year and then my Cincinnati experience which goes up until March 30 first of this year and then my Gulf Coast experience as of the summer so I'll go back and forth I'll try to be clear what you
13:27:45 experience, as of the summer. So I'll go back and forth. I'll try to be clear what you experience.
13:27:48 I'm leaning into. I was in Cincinnati at the time and, many of our donors who wanted to be generous would say, okay, I wanna understand how early childhood needs my support right now and we lean out to our partners.
13:28:01 I reach out to our partners to find out. And they couldn't tell us because some of the federal funding was approved in 2020 or 2021.
13:28:03 It was still flowing through the system. And, I personally, many of our, believe that government could go, should go first, and, should follow on fill gaps.
13:28:13 And so we were waiting for how the federal money was going to be spent. And so then there wouldn't be that gift from the donor advise fund going to the early childhood.
13:28:23 Space because it's federal dollars. They didn't know how to spend it or they weren't sure how they were going to spend or they were gonna be approved and there was a lot of unknown and, depending on the donor who were counseling, they are not comfortable with the unknown.
13:28:35 So, how, trying to have that information with the federal money flowing through the system and it's sparked the inflation that we saw.
13:28:42 When there's that much federal money flowing, it just causes a lot of uncertainty.
13:28:47 And Liz, I invite you to share your perspective about how foundations adapted new practices to help expedite giving and understanding requests and where we are today.
13:29:03 What's stuck and you know, where do we have work to do still in helping foundations to be the most efficient and helpful as possible?
13:29:12 Sharon, one of the, trends that I saw personally, that was very encouraging with people started reaching out.
13:29:22 Let's take for example the racial awakening. People were reaching out saying, what can I do?
13:29:29 They were looking for people were reaching out saying, what can I do? They were looking for people that were closest to the issues.
13:29:33 You know, let's just put it out there. They were looking for people that were closest to the issues. You know, let's just put it out there.
13:29:37 They were calling their black friends saying, Hey, tell me, what can I do tell me something? And that was encouraging from the perspective that said somehow something clicked that people understood that we need to understand at a deeper level what is happening.
13:29:51 Hmm.
13:29:52 In the nation around us. That was very encouraging, a little baffling why it took this event, but encouraging that that was happening.
13:30:02 And the same thing was happening in foundations. They were reaching out to different members of the community. They were reaching out to different aspects of government, local government, local religious leaders to say what is happening around us, how can we understand and what can we do to help?
13:30:19 These are practices that I saw that I hope for the life of me continue. The other practices that we saw was that rules and regulations that foundations once had in place, you got apply and then it's gonna take 6 weeks, 6 months, 6 years before you get something.
13:30:38 Okay.
13:30:38 That all got compressed and now people were getting money pushed out into the field in weeks. And it was necessary.
13:30:47 It was life giving to many organizations. Many of those practices unfortunately I have seen fall to the wayside and revert back.
13:30:57 But I find it impossible to think that some of those practices won't stick for the long term. I think they will.
13:31:03 I think people will understand that that proximity that they now have to community leaders, to religious leaders, to people that are doing the work.
13:31:19 Right.
13:31:14 That proximity once you have it, it's hard to. To let it go. And so I would say those 2 things, Sharon, the proximity that they gained and the nimbleness in their giving, I hope to see continue.
13:31:27 Hmm. Fell up as we were talking together about this, and sort of carrying on that topic, you brought forward that one of the elements that foundations really adapted in a new way.
13:31:45 You, you called trust based philanthropy. I'd love for you to talk a bit about that.
13:31:49 Sure, yeah, it is not my phrase. It is a practice that. Many funders follow and many donors follow.
13:31:56 And it's trusting getting to end it's fundamentally based on getting to know organization so well that you don't need a twenty-page application to know how they're gonna spend the resources and it's built on trust that they're gonna be candid with you.
13:32:12 It's trust both ways but the nonprofit will be candid and share the good the bad and the ugly with the with the foundation, the foundation will lean in and not penalize them for that or approach it with a punitive mindset but how can we help you get through that challenge if you don't hit all your measures that you said you're gonna hit and that's also important part they set their metrics not
13:32:35 the funder and that's I think that'll be the biggest challenge in the funding community is for us not to force our own metrics on another organization.
13:32:45 In the funding community is for us not to force our own metrics on another organization. During the pandemic, we didn't have time for applications applications.
13:32:49 We had to get money out. And in, I'm learning how to get money out.
13:32:55 And in, I'm learning how to be a resident of Florida in a hurricane prone territory.
13:33:02 And, I was not here for hurricane, Ian last fall. Which will be one year and a couple of days.
13:33:05 But our foundation, Gulf Coast Community Foundation was making grants for the 24 h to the nonprofits who were serving the people affected by it.
13:33:14 And those nonprofits were affected, right? It's not like the nonprofits weren't protected.
13:33:18 So, we're trying to support them as quickly as possible, get money out and our donors responded.
13:33:24 So it's that quickness and particularly community foundations are well positioned to have that urgent, or flexible renewal, we can, we can really get resources out the where it's needed most in those crisis.
13:33:37 And it's it's it's unfortunate we have those prices but i'm glad that can be foundations can help address them.
13:33:44 Absolutely. And Offer Group is so honored to work with dozens of community foundations across the country and certainly community foundations have been the just so essential in moments of crisis in a community, whether that be due to violence or wildfire or a hurricane or SS we learned all foundations community foundations and foundations learned in a pandemic how foundations and particularly community foundations can be that centrifuge to gather and and
13:34:21 help in such an urgent way. I'm, I think I'm gonna move on to giving strategies, but Don, if there's anything you want to jump in and say quickly, then I'll give you anything you want to jump in and say quickly then I'll give you a moment.
13:34:35 I just wanted to add that the general operating support got to be very important during the pandemic. And that's another area that I would hope would continue to go along with Liz and Phillips points.
13:34:48 You know, I've also, can't understand why foundations can't come up with a common application given that the universities can.
13:34:58 Right.
13:34:58 I mean, I think we would save, you know, endless amounts of time. Not having people have to reinvent the wheel and fill in our forms our way.
13:35:06 And there's been some efforts on that. And during the pandemic, you know, we made it very simple for people to apply.
13:35:14 You know, somebody we'd given money to for 10 years. We really didn't have to have them have a paragraph of what they do.
13:35:17 You know, and so this is this is back to the trust and the confidence and people giving to people.
13:35:24 Right.
13:35:24 So, but I think that general operating support was really important getting it out the door quickly and I would wish that would continue again trusting that the people know what they're doing and getting their job done.
13:35:36 Here, here. Well, I want to ask Lucinda to pull up the poll results. We're going to move to, how our panelists are thinking about identifying giving strategies and want to see what you all are experiencing in your relationships with foundation.
13:35:55 So it looks like projects with a clear approach and special specified impact has the highest response rate at 65% followed by projects that advance equality and social justice.
13:36:11 But they all have a strong response of 25% or more. So we are going to talk a bit now about how foundations think about identify their giving strategies and also move into how we all as partners with foundations can demonstrate our impact and and get some insight on that as well.
13:36:33 But Don, let's start with you. Our foundations moving toward or away from general operating impact you operating funding.
13:36:45 You just brought this up but I'm just curious to hear each of you share your perspective on this.
13:36:54 Right.
13:36:49 Well, as I said, I wish they were moving more toward it. You know, the general operating support grants tend to be smaller, projects that are multi-year projects, capital, so on.
13:37:03 They're they're the larger grants. So there's a bit of a trade-off there.
13:37:07 But I just would continue to hope that there's room for that. McCormick did a lot of general operating support grants when I was there, but we also did, you know, specific things.
13:37:20 For early childhood programs and our veterans work and so on. So it was kind of a combination of both.
13:37:25 But as a fund, or as a fundraiser, my first 25 years, general operating support always came first.
13:37:32 We, you know, had to. We had a lot of costs that we understood and needed to do and and weren't always fundable or easily fundable through project grants.
13:37:41 So I would love that to continue. And be expanded after the pandemic. I think it was a lesson learned.
13:37:51 Liz, do you have anything to add there?
13:37:53 I do. I think it goes towards what Don and Philip said earlier, having philanthropist or people that have careers in philanthropy be fundraisers because I remember when I was raising money for the organizations I ran and now raising money to do the philanthropic work we do, all of our giving is general operating support.
13:38:17 And while we, you know, are on the smaller side, we give away, you know, 6.5 million dollars a year.
13:38:25 But nonetheless, every bit of that is general operating support because we fund. A, it's most necessary and B is what our executive director struggles so hard to find.
13:38:38 So for me, and B is what our, executive director struggles so hard to find. So for me, and I think for others that are new or doing their own philanthropy, we understand this is essential for our organizations.
13:38:53 Yes.
13:38:50 Well, so you do, which is amazing. And however many foundations do have, you know, very specific.
13:39:01 And however, many foundations do have, you know, very specific giving areas and strategies. So, Philip, what is your thinking about how nonprofits can align a position their work with foundations.
13:39:12 Okay, and this is the, the most unsatisfying response ever. It depends. Unfortunately on, the funder, everyone approaches this very differently.
13:39:26 And, for example, Gulf Coast, just this week we hosted a breakfast on Monday morning.
13:39:29 With all of the organizations we have supported over the last year or 2 and provided the what i believe is one of the most transparent grant makingmaking, presentations to the folks who receive funding from us.
13:39:47 We told, we told them how much we have in our discretionary budget every year, how much is going to each of the initiatives.
13:39:50 And so they knew where the resources were that our 3 initiatives focused on affordable housing, mental health and the environment with a focus on water quality like that is where the bulk of our resources are.
13:40:01 So if you don't play in that space, this is how much is left for the other areas that we do care about.
13:40:05 But they're just not our key priorities. And because we believe these 3 are the ones that are affecting, Sarasota County, the most right now.
13:40:14 And so I think believe I believe in transparent and authentic relationships. And, when you have those, you can be candid with your, nonprofit partners.
13:40:23 And I said it on Monday and I'll say it again to this group like the secret that most funders won't tell you is we need you.
13:40:29 We have to give our money away and it's to the nonprofit community and we need you to deliver on that.
13:40:34 The distribution model for the community change we seek is through the nonprofit sector. And so the more authentic and candid we can be with our partners so that they can be their best bring the best programs and best missions that align with our priorities the better our work will be and the better the community will be overall.
13:40:51 Hmm. Please.
13:40:52 Can I hop in? Cause sometimes we don't. You know, I think pay enough attention to the fact that many foundations are operating off of the instructions of people that set them up who have been long gone.
13:41:07 And so very often, you know, the people that are working within those organizations. Have tied hands in many cases around what they can give to and what they can't.
13:41:18 So I do want to make sure we give the knot and everybody knows this but I just think it bears repeating.
13:41:25 Sometimes your hands are tied by what you can give based on who set that foundation up and what they were interested in giving to.
13:41:35 So we recognize that in, you know, we know that people have to live within those guidelines, but where those guidelines don't exist, I think general operating support is more on the front lines now.
13:41:48 Let's see.
13:41:48 Can I just add though, I think, There is a reason to have guidelines and and I think we need to recognize that as well.
13:41:58 Nobody has enough money to do everything or and so where can you focus? And I always looked at this and and I know how frustrating it was when I was a fundraiser because we didn't fit in certain places and or we didn't fit in a lot of places if you're the Philadelphia Orchestra.
13:42:12 And, and so You know, but I recognize that the importance of focus, if you want to have impact with your investments, and so So as Philip said, these are partnerships.
13:42:25 We need the partner doing the work to accomplish, you know, what we want to get done. And what we want to get done together.
13:42:33 But, but that's the reason that we have guidelines is because we need to focus and not to scatter things wildly.
13:42:40 So within that focus, in the case at McCormick, we were in early childhood education for 30 years, but 20 years before I got there.
13:42:47 But that was a focus here, but that didn't mean we can't do general operating grants within that focus area.
13:42:52 Ready. Yeah.
13:42:52 So and and and should as along with project grants. But I just wanted to underscore that's why the guidelines exist to have to increase.
13:43:02 The likelihood of achieving impact. For some goals. We were lucky at McCormick. We had very broad Godlines from our founder.
13:43:12 They were to help the people of Illinois and, and, and, Ed, port you know people in poverty and so on so we were very lucky that we had a lot of a lot of leeway in that so and that's what we tried to do.
13:43:28 I spent the last several years working on economic opportunity on the south and west side. So we were allowed to to to maneuver within those guidelines pretty well.
13:43:38 Not everybody can.
13:43:40 I'd love us to spend the next few minutes thinking about how our participants here today can share the impact that they're making.
13:43:50 And what foundations are looking for that demonstrates not just the outcomes and outputs, but what what do you want, how can an organ, how can a nonprofit organization best position itself to demonstrate to you that the work that they're doing is having achieving the long-term impact and solutions that you're hoping philanthropic investments will achieve.
13:44:21 Liz, let me invite you to start.
13:44:23 Yeah, thanks, Sharon. One of the processes that we use with our grantees and I let me just take a second because I want to explain we have something called the 1,954 project where we identify 10 to 12 leaders a year, 5 of which each receive a million dollars and the others each receive $50,000.
13:44:46 We will very closely into a lot of deep diligence on the over 400 applications we get each year for those awards.
13:44:54 And what we look at is what is it that you say you are doing in 3 areas that we look at economic mobility, innovation and teaching and learning and diversity in the teaching pipeline.
13:45:05 What have you said you wanted to do and how have you performed against what you said you were going to do?
13:45:13 And how have you performed against what you said you were going to do? So for us and what another trend that I see and I think Philip mentioned this.
13:45:18 What is it that you say? You want to measure what are you doing and how are you measuring what you are doing and what progress have you seen?
13:45:29 Those are our measures. We sit down once a year with each of our grantees and we say, how are you doing compared to what you said you were going to do and how can we be helpful to you along those lines.
13:45:41 And so there is no one set of metrics that we're looking at if we have 5 leaders we're looking at 5 sets of metrics in order to measure impact.
13:45:51 It may not have the kind of broad base scaling impact, but it has impact to that organization based on what they said they were going to do.
13:46:01 And that kind of bespoke. Measurement and evaluation is how we, to, is the approach that we take.
13:46:08 Thank you. Philip?
13:46:18 Can you repeat the question? I was so into Liz's response. I was picked up on everything and I was like the program that she finds.
13:46:24 Okay, I can make sure my response.
13:46:23 What? What are the best practices you see and how organizations can, report the impact of their work.
13:46:38 The. I also believe it's on the funder to do some of the, data analysis on what the impact.
13:46:46 So you have core focus areas like Gulf Coast Community Foundation does. We do a regional scan every 2 years to assess how the ecosystem is changing in those 3 that I mentioned.
13:46:58 And we can see if it's directionally moving the way we want to move it. And it's, it doesn't necessarily hold the organization accountable, but we can tell it the strategies we chose.
13:47:12 To invest in our making the impact we want to see. Cause as a community foundation, we want to give that, bird's eye view of what's happening in the community.
13:47:22 And we believe that's on our shoulders to assess.
13:47:27 I think that's so powerful. I love that and it just goes to show the distinctive nature of how community foundations can be a guiding force.
13:47:41 Okay.
13:47:39 A convener around community focused solutions. So thank you for sharing that. I'm Don, I'd love to you to share an example of an organization that you worked with at the McCormick Foundation in developing impact measures.
13:47:58 And a baseline.
13:48:00 Well, this was a this gets right to your your point your question sharing the the, I'm not gonna sugarcoat it.
13:48:07 The, the impact. Is it really complex difficult thing and you can make progress and then there's a recession and you can make progress and then there's a pandemic and and so there's so many outside factors.
13:48:20 Out outputs outcomes a lot easier to measure. So so we did a really interesting project with Heartland Alliance with their research center here in Chicago where we worked with them to create a database of 50 or 60 individual metrics on health.
13:48:38 Education, economics, population, age, etc. For every all 77 communities in Chicago. And you can, and this was to gather data over a long haul so that we could see 10 years from now.
13:48:56 What the trends have been. And, you know, education attainment, household wealth, you know, all these things.
13:49:05 You could compare and contrast communities. You can look at the average of Chicago overall and compare. And, and we work closely with, with communities on this, on using this data and looking at trends that tied into their quality of life.
13:49:19 Plans that the community said established. The city started using it because it was easier to use the data all in one place than from all the different dispersed.
13:49:27 Places that they had data coming in. And I think we're probably, now I've been away a year, but I think probably 6 or 7 years into that.
13:49:35 So we are accumulating the data. And you can graph it and track it and so on but to Philips point we took this on because The question is, how do you know over the long haul?
13:49:45 That you're that things are going the direction you want them to go. And it's extremely difficult and some communities do better than others.
13:49:55 And in different metrics, but, but it was, it's a way to think about all the investments being made, not just by us, but by the city, by the state, federal government, other philanthropy.
13:50:06 And so we found this to be a pretty useful tool and working with communities using it.
13:50:11 It's just fascinating. I think that's the most. Enlightening data to inform where, where and how impact can be made.
13:50:24 We're going to go to Lucinda in just a moment to bring forward a handful of questions from you all, but before we do that, Liz, could I just ask you to share your thinking around the Supreme Court's reversal of affirmative action in June of this year and how you feel foundations might help to address the reality of that decision.
13:50:48 Yeah, Sharon, I think we're gonna see as many reactions to that as there are.
13:50:54 Individuals in the world, right? Because some people are gonna hit for the heels because they didn't want to do it in the first place and some people are going to double down because they understand that's what's required.
13:51:04 So I think foundations can be helpful by signaling to organizations that we are here for you while this court decision is what it is.
13:51:16 We know that organizations are doing the necessary work of this nation and so, to double down. On their support and not head for the hills and not try and nuance it and not try and come up with different language that won't be scrutinized by those but to call it what it is and continue giving that level of support.
13:51:38 That's what we're doing. We started off doing, you know, supporting black leaders in education.
13:51:45 We're gonna continue supporting black leaders in education and we want to be that organization that may be people that may not have the same level of risk tolerance, you know, come to us because we'll say the thing and you don't have to.
13:51:57 So there will be many, many different approaches to it. But I'm hopeful that foundations and people like our on this panel.
13:52:07 Will double down on their support of the organizations and people like are on this panel, will double down on their support of the organizations that are doing the necessary work.
13:52:13 Yeah.
13:52:12 Right. Thank you, Liz. Okay, Lucinda, help us cover as much territory as we can here.
13:52:19 I will. A lot of really great questions. Thank you to everyone who is. I'm dialogging in the chat.
13:52:27 That's been a really good conversation and there are a lot of questions that have come in. So we will try to get to as many as we can in the time that we have left.
13:52:35 So I'm just gonna jump right in. So one question, this participant notes.
13:52:40 Really appreciate Phillips reference to the 5% payout as a floor. What are your thoughts on foundations like Ford who took radical steps to significantly increase their payout?
13:52:52 Might this continue as a trend going forward? What are your thoughts?
13:53:00 I don't know. There will be a trend. I think, when we have funders who, take the lead and are blazing trails never done before.
13:53:13 It's such an example, whether it's Ford, whether it's Mackenzie Scott making mega contributions unrestricted to nonprofits.
13:53:21 The trend that the Gates Foundation is creating that it will sunset 20 years after the last 3 of them pass away.
13:53:27 Like those are trends that I see the Gates Foundation trends, in my individual donor conversations.
13:53:34 They don't believe in endowment. They want it gone 20 years after they passed or 10 years.
13:53:37 So we need those trailblazers in the world to lead, and set an example for the rest.
13:53:46 I, it would be great to see more philanthropic resources, especially if the trends are showing a bigger return, that some of those foundations are seeing, financial, investment returns.
13:53:55 It'd be awesome to see more than 5%.
13:53:58 Thank you. Lucinda, I know everybody could comment, but I want to cover as many questions as possible.
13:54:07 So please go ahead.
13:54:04 Sure. Sure. Next question.
13:54:11 So are there speaking of trends? Are there notable trends in the size versus quantity of foundation gifts?
13:54:17 Any shift in more smaller gifts or fewer larger gifts? Is it a case by case basis based on each?
13:54:26 Any trends to share what have you been seeing
13:54:33 Liz, please go ahead.
13:54:35 Yeah, I, You know, I'm seeing both. I think the McKinsey phenomenon is encouraging people to try and understand what they can do with significant dollars invested.
13:54:50 And so I think people with that level of resource are coming in and doing that. But one of the comments I was going to make earlier when we first started off was we saw an increase in giving to the work that we're doing from people that could give 5 billion dollars.
13:55:02 Okay.
13:55:03 And so I think it. You know, those numbers may not be reflected in the survey results that you showed, but I think people have this overwhelming sense of what can I do.
13:55:14 And when they realize that that 5 or $10 can make a difference, they will write those checks. So I think the trends are going in multiple directions.
13:55:24 I am most encouraged, honestly, by people that are writing the 5 and $10 checks because they see themselves as part of the solution, no matter how small a part of that solution that they are.
13:55:37 Okay. Lucinda, go ahead.
13:55:39 Yeah. This is in the evaluation bucket. So if evaluation of a project or, a grants deliverable shows in the data that it's not where the organization was hoping to be.
13:55:57 And so they're reporting back to the foundation. Is your instinct or policy to see how you can help that organization get back on track.
13:56:09 Or do you move on? How do you handle those situations?
13:56:15 Don, if you could take just 30 s or a minute to respond, we were coming to time here.
13:56:19 Sure. Sure, well, I think this is this is gets to the trust issue again of being able to have legitimate conversations and authentic understanding of what works and doesn't work.
13:56:31 And that foundations shouldn't be penalizing people if a project didn't work. And at the same time, I think that we don't have to prove everything.
13:56:42 Works because we know things work and if somebody else does it with fidelity it should work also and we don't have to spend lots of time and money trying to track down whether every project is working.
13:56:54 Exactly. But I do think it's trust. I think we should have the conversations, try to iterate, move on, not from from the relationship but move on to a better way to get the work done.
13:57:04 And, I, again, I think that's, the relationship business that, we're really in when, when we deal with people.
13:57:14 Thank you. Well, we are, at time to wrap and turn it back to Lucinda.
13:57:21 I just can't thank you enough Liz, Philip, and Don for your joining in the conversation today.
13:57:26 From the unique and important perspective that you've brought to us all and for the work that you do every day to to forge solutions and communities across the country and Alpha Group is so grateful for our partnership with with you and the work that you do.
13:57:44 Lucinda, please take it away.
13:57:48 Sure, I'm happy to wrap us up. I echo everything Sharon just said. Thank you, thank you.
13:57:53 And again, thanks to everyone who's participating. The dialogue and the conversation has been robust and wonderful.
13:57:59 I want to remind you that we can, we're excited to offer a 30% discount to any, anyone who wants to purchase the full report, send us an email, info at offer.
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13:58:17 The session today was recorded and we will be sharing that with you via email within the next 24 h.
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13:59:10 So again, thank you to the panelists. Thank you, Sharon, for moderating. Thank you to everyone for participating.