Capacity, Culture, Commitment and Comfort: Finding Public Policy Strategies That Fit Your Foundation

July 20, 2010

How much change can a foundation catalyze by simply – albeit generously – writing checks? Not as much as it could if it also engaged in public policy activities. In fact, public policy work should be viewed as an essential part of a foundation’s efforts, say several members of the Minnesota Council on Foundations.

In our Summer issue of Giving Forum, “Public Policy and Philanthropy: Many Roads Lead to the Same Destination – Change,” John Larsen, trustee and administrator of the John Larsen Foundation, says, “Ultimately, the work of our foundation is about creating real, systemic change, and that can only happen when we start talking to government. Whether you’re a small family foundation like us, or a very large foundation, we all need shifts in public policy in order to achieve really significant lasting social change.”

The challenge is that working to achieve shifts in public policy is often equated with lobbying. And the thought of walking up the steps of the Capitol or testifying before a legislative committee is more than many funders can fathom.

Lobbying, however, is not the sole avenue to influencing public decision making and advocating for causes. Although it is the most recognized public policy engagement tactic, it is only one of 18 distinct policy strategies that Julia Coffman outlines in “A User’s Guide to Advocacy Evaluation Planning,” published by the Harvard Family Research Project.

A “Framework of Public Policy Activities,” which we include in Giving Forum, also includes using electronic outreach and social media, coalition and network building, grassroots organizing, briefings and presentations, polling, pilot projects, research investigating issues and identifying solutions and policymaker education, among others – all of which can impact public decision making, which ultimately shapes policy development, approval and implementation.

A foundation can engage anywhere along the continuum, pursuing those activities that fit its capacity, culture, commitment and comfort levels. A public policy activity that feels right for one foundation may not fit another.

Many foundations choose a combination of strategies, leveraging their resources to: raise awareness of where the public stands on particular issues; bring together divergent points of view to first converse then collaborate; empower community members to advocate on their own behalf by providing technical assistance; increase the capacity of nonprofits to mobilize others; identify messages that resonate with policymakers and the public; determine what would happen if the status quo was allowed to prevail; aggregate what is known already about an issue and put that to work to further discussion; or identify possible solutions and best practices.

These MCF members have each chosen distinct strategies to impact public decision making that fit their capacity, culture, commitment and comfort level. Read more about their work in our just-published Giving Forum:

Lead article:

Southern Minnesota Initiative Foundation: An outgrowth of its grantmaking and programmatic activities, community dialogues and business loan work, SMIF’s public policy activities, including building coalition and networks and partnering with the media to draw attention to the issues and how public policy could impact the success the foundation seeks.

The Minneapolis Foundation: As part of the School Readiness Funders Coalition, a group of funders with diverse strengths and abilities in advocacy work, The Minneapolis Foundation brings to the group its ability to lobby and testify at legislative hearings to advocate for the coalitions “Agenda to Achieve Learning Readiness by 2020.”

John Larsen Foundation: When awarding grants supporting work toward LGBT equality, the foundation  considers if educating policymakers is an end goal of the nonprofit’s work and if the organization has a research plan and a track record of communicating those findings to policymakers.

Indian Land Tenure Foundation: Striving to ensure that lands within the original boundaries of reservations is acquired, owned and managed by Indians, the foundation views education about land issues a priority, as well as identification then pursuit of strategies for achieving legal reform.

Women’s Foundation of Minnesota: The explosion of social media has created a new landscape for the foundation to leverage its expertise to educate, engage and broaden its reach to shift attitudes, behaviors and institutions that limit equality for women and girls.

Voices of Philanthropy articles:

Bill and Melinda Gates Foundation: Identifying partners best qualified to successfully implement strategies and measuring what’s important to guide future initiatives drive the foundation’s advocacy work.

Initiative Foundation: Based on the belief that local people are the key to strengthening communities, the foundation increases civic engagement by providing training, technical assistance, resource referral and grants to help citizen-based teams develop and carry out strategic plans.

While these efforts are diverse, the common thread amongst them is the recognition by these foundations that strategically developing goals to influence public decision making and intentionally engaging in public policy activities and advocacy work can move systems change forward.

- Chris Murakami Noonan, MCF communications associate


Making More and Better Key to Economic Recovery

June 11, 2010

This week at United Front 2010, Minnesota Economist Tom Stinson started out on a positive note. “I’ve got some good news,” he said. “The recession is over.”

“But,” (there’s always a “but” isn’t there?) he continued, “…we’re not going back to where we were.”

Where We Will Be, and Why

Stinson went on to explain to me and the 900 other nonprofit, grantmaker and government workers and representatives in the audience that the “New Normal” will most likely mean:

  • Higher interest rates
  • Slower economic growth
  • Increasing numbers of retirees
  • Less consumption; more saving
  • Creative destruction/disruptive innovation will change the way we deliver services
  • A shift in the balance between private and public sectors
  • More uncertainty about the future

The two broad factors shaping these trends are the combination of the recession and our aging population. Research shows that the U.S. economy lost 8.4 million jobs during this recession. It’s estimated that it will take 2.5 years for Minnesota to recover  its lost jobs. Unfortunately, due to the aging of our population, there’s concern that once those jobs become available again, eventually we will not have enough people to fill those positions.

Why is this a problem? Past recessions have taught us that productivity is the key to economic recovery. Traditionally growth happens when “More people make stuff, or people make more stuff per hour.” With out the people-power to drive production, Minnesota faces a shrinking tax base, coupled with a dramatic increase in demands for health services, as aging baby boomers require increased medical assistance.

The Key to Growth — Individuals and Organizations Making Better Choices

Stinson noted that although the future looks gloomy, Minnesota is fortunate in that the new economic reality plays to our strengths. Future economic growth will depend on increasing productivity without corresponding increases in the size of the labor force. The key to increasing productivity without more labor is innovation. The key to innovation? Education — something that we Minnesotans traditionally do well, but must continue to invest in.

Nonprofits, he explained, will be crucial to helping individual Minnesotans make better decisions and produce better outcomes in key areas such as:

  • Creating healthier habits to reduce lower lifetime health care costs
  • Reducing recidivism rates
  • Improving graduation rates

Simultaneously, the very economic straits that demand nonprofits help individuals make better choices, will also demand that nonprofits make better choices too about how they deliver service.

How can nonprofits make better choices about service delivery? There are many paths to providing better service, and the methods of doing so are sometimes very unique to individual organizations. However, there are some key areas common to nonprofits where efficiencies can be found and better practices to foster innovation put into place.

I’ll be exploring some of those paths to better outcomes that I learned about at United Front 2010 in future posts.

- Cary Lenore Walski, web communications associate

Join the Conversation: Did you attend the United Front 2010 conference? What were your take-aways? How is your organization planning on doing more, better in the coming years?


Over 80% of Nonprofits Innovating, Measuring Effectiveness

May 27, 2010

Eighty-two percent of nonprofit organizations reported implementing an innovative program over the past five years, according to a new survey released by Johns Hopkins Center for Civil Society Studies. This trend remains strong across small and large organizations — challenging the myth that larger, more established organizations can not re-think their approach to their work.

Plastic Ruler

As more nonprofits measure success, government and grantmaker support falls short.

The study, conducted as part of the Listening Post Project, surveyed 417 nonprofit organizations working within major areas including children and family services, elderly housing and services, community and economic development and arts organizations. An “innovative” program or service was defined as “a new or different way to address a societal problem or pursue a charitable mission that is more effective, efficient, sustainable, or just than prevailing approaches.”

Eighty-five percent of respondents also indicated that they have been measuring their effectiveness as well. Despite the rosy picture that these numbers paint, two-thirds report that they have been unable to start an innovative program or service over the last two years.

The major barriers to nonprofit innovation reported:

  • Lack of funding (86%)
  • Inability to bring to scale due to lack of “growth capital” (74%)
  • Narrow governmental funding streams (70%)
  • Tendency among foundations to encourage innovations, but not sustain support (69%)

Similarly, attempts to measure programmatic effectiveness were also stunted by a lack of funds. Respondents did, however, make some recommendations about different efforts that could be undertaken to improve the ease of measurement, and innovation.

Recommendations to overcome performance measurement and innovation include:

  • Creating better tools to measure qualitative impacts (82%)
  • Less time-consuming measurement tools (81%)
  • Financial resources to support measurement and research functions (79%)
  • Greater help from intermediary organizations to fashion common evaluation tools (67%)
  • Training for personnel on how to accurately use tools (63%)

The philanthropic and public sector have been challenging nonprofits to innovate and evaluate. Nonprofits have clearly answered this call to action. Despite strong adoption of these practices, there’s still important work that can be done to help nonprofits innovate, evaluate and maintain the best programs and services. The complete survey report can be downloaded here (pdf).

Join the conversation: Do you have any personal stories of innovation to share? What organizations, whether nonprofit or philanthropic, are doing things right when it comes to establishing easy-to-use scorecards for different focus areas? Please share your thoughts.

- Cary Lenore Walski, MCF web communications associate

Photo CC Mykl Roventine


At United Front 2010, Cross Sector Leadership Will Confront the New Normal

May 14, 2010

The stormy economic climate of the last two years has transformed the shape of the nonprofit sector. As the clouds part, and a new point of homeostasis in the market economy is reached, leaders across sectors are now seeking to chart out the new landscape that we have found ourselves in.

On June 9, the Greater Twin Cities United Way, with the support of General Mills, will convene nonprofit, philanthropic, and government leaders to take stock of the new reality at United Front 2010 at the Minneapolis Convention Center.

At this informative, interactive forum the latest state economic and fiscal data will be presented, along with an overview of the future of funding in health and human services. Attendees will be challenged to find ways to collaborate and lead the strategic and systematic changes converging in the human services arena.

To learn more and register for this program, visit UnitedFrontMN.org.


Nonprofits: Don’t Lose Your Tax-Exempt Status

May 7, 2010

Approximately 4,400 small nonprofits in Minnesota risk losing their 501(c)(3) tax-exempt status next week.  They will be ineligible to receive tax-deductible contributions unless they go online and file IRS form 990-N. 

A 2006 law requires that organizations with financial activity under $25,000 that operate on the calendar year file by May 17, 2010, or have their tax exemption revoked.  Previously, such organizations were not required to submit an annual IRS return.

Organizations can see if they need to comply by visiting the Urban Institute’s searchable database of organizations that are required to file but did not as of May 1.

Compliance is simple: the chief person from the organization can file online through an approved IRS 990-N e-file provider at http://epostcard.form990.org/. If the organization has been terminated, the IRS should also be notified through this form.

Organizations that fail to meet the deadline will have their exemptions revoked.  Reapplication costs up to $750, plus time, aggravation and attorney’s fees.

People involved in small nonprofits can find more information and double-check a list on the Minnesota Council of Nonprofits website at mncn.org.  See, also, the recent Star Tribune story that describes organizations that may be affected.