Helping People Help Themselves

December 22, 2008

A report was recently released that relates directly to the work that I am doing with the Minnesota Council on Foundations and the Public and Nonprofit Leadership Center. The report was published by the National Committee for Responsive Philanthropy and is titled Strengthening Democracy, Increasing Opportunities: Impacts of Advocacy, Organizing, and Civic Engagement in New Mexico. The report is the first in a series to be produced in regions across the country; Minnesota is scheduled to be one of the regions for a future report.

In this report, NCRP studied 14 organizations in New Mexico that work with underrepresented constituencies to organize and advocate on a range of issues. One startling accomplishment was that “for every dollar invested in the 14 groups for advocacy and organizing, the groups garnered more than $157 in benefits for New Mexico communities.” These benefits help workers meet their basic needs and provide significant economic stimulus for communities. “For example, every new dollar in state Medicaid funds results in $4.74 of business activity.” During the current economic crisis, policymakers should consider expanding public programs (e.g. health care, child care, food support, and energy assistance) as part of the overall economic recovery package.

The report also makes a great case for why foundations should be funding advocacy, organizing, and civic engagement activities. “If foundations truly want to maximize their impact and effectiveness, NCRP recommends providing general operating support and multiyear funding to effective organizations… so that disadvantaged residents can advocate and organize to strengthen their communities.”

- Ryan Johnson, MCF’s public policy fellow. This entry was also posted at the Humphrey Institute of Public Affairs’ blog, Pub Talk.

Comments Off | economy, nonprofits, public policy, research | Permalink
Posted by Ryan Johnson

In the Media

December 19, 2008

Articles published about nonprofits and philanthropy.

Economy:

Local:

  • Vikings Kick In $15,000 for Elliot Park Planning
    Finance and Commerce: The team’s check is small, but symbolic: a first-of-its-kind donation for the team to local community planning and development efforts. The contribution matched a “Challenge Grant” from the Minneapolis-based McKnight Foundation.
  • Team Approach Will Enable Lake Superior Zoo To Make Comeback
    Duluth News-Tribune commentary: Local foundations supported the transition of the zoo from public to nonprofit management with substantial funding from the Duluth Superior Area Community Foundation, the Northland Foundation and the Donald Weesner Foundation.
  • MinnPost Gets Knight Grant for Local Reporting
    MinnPost: The John S. and James L. Knight Foundation said they would help the nonprofit sites draw a larger audience by providing more local news, a key to their long-term viability.

National:

  • New Retirement-Plan Regulations
    Philanthropy Journal: Essentially, the new regulations for the 403(b) plans require more of a resemblance to corporate group 401(k) retirement plans. Employers will need to be more involved in the day-to-day aspects of how the plan is being administered and serviced.All 403(b) plans must come into compliance under these new regulations by Jan. 1, 2009, though there are some exceptions for church organizations.
  • Wall Street Fraud Leaves Charities Reeling
    New York Times: Charities that depended on foundations that have been forced to close have now added the Madoff scandal to the list of reasons that fund-raising has been crimped this fall.
  • In Clinton List, a Veil Is Lifted on a Foundation
    New York Times: Some of the world’s richest people and most famous celebrities handed over large checks to finance his presidential library and charitable activities.
  • Starting Over, with a Second Career Goal of Changing Society
    New York Times: A new Harvard yearlong program will train them learn how to be successful social entrepreneurs or leaders of nonprofit organizations focused on social problem.
  • Grassley Targets Nonprofit Hospitals on Charity Care
    Wall Street Journal: The proposed legislation would require nonprofit hospitals to spend a minimum amount on free care for the poor, also known as charity care, and set curbs on executive compensation and conflicts of interest.

Comments Off | arts, economy, government, in the news | Permalink
Posted by MCF Webmaster

United Way Video Campaign Shows Even Little Donations Make a Big Difference

December 18, 2008

The Greater Twin Cities United Way is experimenting with a new way of raising money. Instead of relying on a few people to give large donations, they’re asking a lot of people to give a little — just $5.

The Give5Now campaign is a one-minute video that shows how people can use a small contribution to make a big impact:

  • One person gives $5 to help people in need
  • … then passes the message to 5 friends, who each also give $5
  • The “ripple effect” will be felt across the Twin Cites

The simple website — just the video and a “click here to Give5 now” button — is an effort to take advantage of technology that allows individuals to spread the message on social networking sites such as Facebook and Twitter. “Giving trends show that young people, in particular, are more likely to give small donations online that respond to immediate causes,” said the United Way’s Randi Yoder.

In the media:

Comments Off | community foundations, in the news, individual giving, technology | Permalink
Posted by Crystal Colby

Notes from MCN’s Economic Briefing

December 17, 2008
The MCN Nonprofit Current Conditions Report shows that more than 54 percent of nonprofits are experiencing a decline in total revenue, while nearly 50 percent have increased expenses. Find this report and the Minnesota Nonprofit Economy Report (PDF files) on MCN’s website.

The Minnesota Council of Nonprofits held a briefing yesterday on the economic outlook for nonprofits. MinnPost (Economic briefing for nonprofits offers some optimism, plus reality checks and strategies, for 2009) and the Star Tribune (Minnesota nonprofits slash staff, budgets) each published articles today about the session.

While the statistics and surveys may sound bleak, there was a modicum of hope within the nonprofit community at the meeting. We came away with a number of great ideas worth passing on:

  • Consider all ideas and solutions. Nonprofits Assistance Fund can help you assess your business model and think through different financial strategies for your organization. At a time when credit is tight, they recently received an additional $1 million specifically to lend to nonprofits over the next three years. Struggling nonprofits can contact them for financial assistance, training, and guidance.
  • You are not alone! It will be beneficial for more nonprofits to reach out to partners in their sector and community to collaborate on more projects. Network with similar nonprofits. How can you collaborate? Who can do deliver the service?
  • Mergers are certainly an option, and in times like these and it is often common to see nonprofits merge to gain efficiencies. MAP for Nonprofits’ Project ReDesign is a resource for support.
  • Nonprofits should think long term in terms of organizational capacity and financial planning – not just the “quick fix” approach.
  • Tap into your volunteer pool in new and creative ways. One organization has a volunteer who does nothing but fundraising.
  • Develop a for-profit business, or social enterprise, that can help support your nonprofit:
  • Return on Investment (ROI) studies will help nonprofits build their case for funding and help shape public policy. Wilder Research has found a positive ROI correlation on a recent childcare study.

Join the conversation: What are more ideas for how nonprofits can weather the recession?

Comments Off | economy, nonprofits | Permalink
Posted by MCF Webmaster

Roundup of New Giving Reports

December 16, 2008
The Social and Economic Value of Private and Community Foundations
In perhaps the first broad analysis and estimate conducted in the U.S., the new organization The Philanthropic Collaborative says that every $1 philanthropic contribution produces an estimated average return of $8.58 in economic benefits.
> Download (PDF)
International Grantmaking Trends
This updated report from the Foundation Center and the national Council on Foundations shows that more than 72,000 U.S. foundations gave $5.4 billion to international causes in 2007, a record amount and an increase of more than 70% over the $3.2 billion given in 2002.
> Order from the Foundation Center
> More information from the Chronicle of Philanthropy
Giving in Numbers 2008
The Committee Encouraging Corporate Philanthropy’s latest annual report of 150 US. companies shows that giving was “decidedly higher” in 2007 than the previous year, despite a mixed economic climate. The report also gives recommendations for how companies can support nonprofits in the future.
> Download (PDF)
> Read more from the Chronicle of Philanthropy

Comments Off | corporate, economy, international, research | Permalink
Posted by MCF Webmaster

Madoff Scandal Forces Three Foundations To Close

December 15, 2008

The Chronicle of Philanthropy reports that three foundations have been forced to close, and other charities and foundations have suffered losses, due to the alleged Ponzi scheme by Bernard Madoff:

  • The Massachusetts-based Robert I. Lappin Charitable Foundation, which provided programs such as Jewish day school and Jewish overnight camping, announced that its programs have been discontinued and its staff terminated. The Washington Post covered the story on Saturday: “Deborah Coltin learned yesterday morning that the $8 million foundation she has led for a decade, which supported a wide range of Jewish programs on the north shore of Massachusetts, did not actually exist.”
  • The New York-based JEHT Foundation (Justice, Equality, Human Dignity and Tolerance), which promoted reform of the criminal and juvenile justice systems, announced it has stopped grantmaking and will close at the end of January.
  • The Chais Family Foundation, which was headquartered in Jerusalem and supported education and Jewish causes, closed on Sunday.

Read about other foundations and charities affected at philanthropy.com.

Update: The St. Paul Pioneer Press has an article today about how local nonprofits have been hurt by the closing of the JEHT Foundation.

Comments Off | in the news | Permalink
Posted by MCF Webmaster

In the Media

December 12, 2008

Roundup of stories about nonprofits and philanthropy.

Economy:

  • Some Charities See Good News and Bad in the Economy
    Minnesota Public Radio: For organizations like Goodwill Industries, which sell donated items in second-hand stores, these tough economic times bring both good news and bad news.
  • More From Foundations Now Means Less in the Future
    Financial Times:     Board members, donors and managers in the social sector will need to summon their courage and embrace an “equity ethic” to ensure that they and the organisations they support will be able to stay the course for the people who need them. To do so, they will need to tame one of their strongest impulses: to do more.
  • The Future of Corporate Philanthropy
    BusinessWeek: In the downturn, corporate chiefs like GE’s Immelt say social responsibility will remain vital, but it must be cost-effective and fit corporate needs.

Local/national/international:

  • St. Kate’s Receives Record $20 Million Gift
    Star Tribune: The anonymous endowment gift guarantees the St. Paul college’s School of Health will get at least $1 million a year in perpetuity.
  • Alternative Fuels Company Receives Initiative Foundation Financing
    Brainerd Dispatch: The company will build a new facility to manufacture cleaner-burning pellets; the rising costs of energy and corn have caused orders for the pellets to outpace their production capacity.
  • That Donation Just Cost You $25,000
    NonProfit Times: The credit card companies are paying attention to what you’re doing and are tightening the screws to persuade organizations to make changes in the way they think about and handle credit card information.
  • Let Foundations Go Forth, Multiply and Prosper
    Dallas Morning News editorial: A new study by Washington, D.C., economists Robert Shapiro and Aparna Mathur offers a revealing look at their contributions. We suggest members of Congress read and absorb it, and think twice before eyeing these foundations as piggy banks for potential tax revenues.
  • Some Companies Donate their Holiday Party Budget to Charity
    USA Today: Company-sponsored holiday galas hit a 20-year low in 2008, according to a survey. But instead of saving cash, some firms are pursuing a more selfless mission.
  • Family Charities Get Focused
    Wall Street Journal:     As wealthy families reassess their investment portfolios and look to preserve their wealth amid today’s weak economy, many are also rethinking their charitable giving.

Comments Off | economy, in the news | Permalink
Posted by MCF Webmaster

Schulze Family Foundation Gives $40 Million for Diabetes Research

December 12, 2008

The Richard M. Schulze Family Foundation will give the University of Minnesota $40 million over five years for diabetes research. University physician-researchers hope they can help many more people with type 1 diabetes achieve insulin independence.

Through pioneering work at the newly named Schulze Diabetes Institute and other University resources, three promising conceptual cures have been identified; the donation will support research focused on efforts to implement these cures.

“We have the capacity to cure this devastating disease and help people enjoy a happy and productive life no longer constrained by diabetes and constant fears and worries,” said Bernhard Hering, M.D., an internationally recognized diabetes researcher and codirector of the institute. “Curing type 1 diabetes is possible. We only need to declare it possible, engage the brightest minds, be contagiously committed, and break all barriers. This gift is breaking big barriers by boosting resources, raising awareness, and injecting a sense of urgency and responsibility.”

The gift is the second-largest in the university’s history and reportedly the second-largest by an individual or family foundation to U.S. diabetes research.

In the media:

Comments Off | family foundations, health | Permalink
Posted by MCF Webmaster

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