Funding for Libraries

The Foundation Center offers several tools that you can use if you are searching for financial support for your library:

If you are focused on conservation and preservation projects, browse our new guide, Foundation Grants for Preservation in Libraries, Archives, and Museums, published in collaboration with the Library of Congress. The volume is available for download in PDF format at the Library of Congress web site.

If you require a more general publication that contains grants for a wider range of library services and initiatives, stop by our library or cooperating collections and have a look at Grants for Libraries & Information Services. The volume, updated annually, is part of our series of Grant Guides.

Our library visitors who prefer databases can use Foundation Directory Online to create targeted keyword searches to find funders that support library programs.

One last tip: Visit the Philanthropy News Digest web site to look for library-related requests for proposals (RFPs) from foundations.

For articles and books on fundraising for libraries, click here to search our Catalog of Nonprofit Literature.

Decision Making for Nonprofit Managers

Business investors and nonprofit managers may have more in common than you think, especially when they are making difficult choices. West Chester University professor Roberta Snow and consultant Paul Phillips note in their new book, Making Critical Decisions (Jossey-Bass) that both groups need to evaluate costs, benefits, risks, and other issues. The authors have taken the decision matrix tool and due diligence processes used by businesses and have adapted them for nonprofit managers.

Phillip and Snow provide sample matrices and grids that contain key assessment criteria, such as strategic alignment, expertise, personnel, practicality, impact, and other factors. Sections of the book focus on relevant questions at various stages of due diligence: feasibility, pilot, implementation, and cutback. A chapter explores how board members, executives, funders, and managers can use matrices in different ways.

For other articles and books on decision making, click here to search our Catalog of Nonprofit Literature.

Foundation Management: Overcoming Barriers to Success

Readers of Joel J. Orosz’s popular Insider’s Guide to Grantmaking will be pleased to hear that a companion volume has just been released. In this new publication, the former program director at the W.K. Kellogg Foundation provides recommendations for addressing the key challenges and dilemmas facing grantmakers today. Some of the areas that Orosz explores include:

-developing an organizational culture
-taking measured risks
-determining appropriate overhead costs
-choosing a general or specialized approach to grantmaking
-weighing advice from experts and community representatives

Tips and advice for tackling these and other issues are supported with examples, anecdotes, and relevant data.

Learn more about Effective Foundation Management: 14 Challenges of Philanthropic Leadership- And How to Fox Them at the AltaMira Press web site.

Direct Mail Fundraising: More Pictures, More Money?

Let's look at this scenario: Your charity is planning another direct-mail fundraising campaign and you have been put in charge of the project. To get the attention of potential donors, you intend to add a full-color picture on the envelope.

Not so fast, according to a recent study on fundraising letters that was published in the International Journal of Nonprofit and Voluntary Sector Marketing.

The researchers sent nearly 90,000 letters to prior donors of a religious charity in the Netherlands and found that mailings with a color picture on the envelope resulted in a lower response rate and smaller donations. They note, "We interpret this finding from donor aversion against high fundraising costs."

What do the researchers suggest? Play it safe by starting with a simple package. If you are still considering the option of attractively designed envelopes, try it out with a small random sample and see how it goes.

Here is the full citation to the article:
Bekkers, Rene and Olaf Crutzen. "Just Keep It Simple: A Field Experiment on Fundraising Letters." International Journal of Nonprofit and Voluntary Sector Marketing. vol. 12 (November 2007): p. 371-8.

Search our Catalog of Nonprofit Literature to find more articles from this journal, or to look for other readings on direct-mail fundraising.

Nonprofit Communications: What's Your Message?

When nonprofits try to reach out to supporters through e-mails, newsletters, web sites, and other channels, the volume of information can be overwhelming and, at times, counterproductive. How can nonprofits be more effective and efficient in their communications?

According to consultant Rebecca K. Leet, the solution involves crafting a "strategic message," which she defines as "a set of statements that prompts targeted audiences to take a desired action." Strategic messages are successful because they:

-Seize the attention of your target listener

-Concentrate on the wants and desires shared by the listener and your organization

-Achieve a mutual goal

Keep in mind that you will develop a core message, but would also create related "subset messages" for different groups, including your funders, volunteers, and the people you serve. Rebecca Leet outlines five steps for developing your strategic message:

1) Determine the desired outcome
2) Identify your target listener
3) Understand the desires of your audience
4) Recognize commonalities
5) Determine the best way to convey the message

Learn more in Leet's new book, Message Matters: Succeeding at the Crossroads of Mission and Market, published by the Fieldstone Alliance.

For other articles and books on nonprofit communications, click here to search our Catalog of Nonprofit Literature.

Research on Nonprofit Advocacy and Lobbying

To better understand how nonprofits engage in public policy, OMB Watch, Tufts University, and the Center for Lobbying in the Public Interest embarked on the Strengthening Nonprofit Advocacy Project (SNAP) in 2000. Based on a national survey of 1,738 nonprofits, interviews with 45 survey respondents, and 17 focus groups, the researchers found that:

-About 75% of respondents have participated in public policy activity

-Frequency of policy participation, however, is "inconsistent and generally low"

-Nonprofits have a negative view toward the word "lobbying" and prefer "educating" policymakers

-Barriers to policy work include financial resources, tax laws, and staff expertise

-Foundation funding for advocacy and is often "limited and inconsistent"

Detailed results from the multi-year research project, including recommendations for the sector, can be found in the Aspen Institute's publication:

Seen But Not Heard: Strengthening Nonprofit Advocacy (2007)
Authors: Gary D. Bass, David F. Arons, Kay Guinane, Matthew F. Carter and Susan Rees.

The Strategic Philanthropist

When you are contacted by a charity to support their programs, you may respond by making a donation to the organization. Now let's think for a moment. Is your giving mainly based on a reactive approach to short-term needs or are your donations part of a proactive long-term plan to address the root causes of the problem?

In order to change the world, author Tracy Gray suggests that your philanthropy is most effective when you reflect on your passions and develop a carefully thought-out program for giving. Her book, Inspired Philanthropy: Your Step-by-Step Guide to Creating a Giving Plan and Leaving a Legacy (John-Wiley & Sons, Inc.) helps you shift your focus from "obligatory giving" to giving that is more strategic and transformational. You will find exercises and worksheets in the volume to get you started (Chapter 5 helps you decide how much to give). The new third edition contains additional information on giving circles and supporting the next generation of philanthropists.

Tools for Effective Philanthropy

If you were interested in last week’s posting on Stanford University’s lecture series on philanthropy, let me also bring your attention to "Effectiveness, Efficiency and Accountability in Philanthropy: What Lessons Can Be Learned From the Corporate World?" This volume, published last year by the Philanthropy and Foundation division of the Bertelsmann Foundation, contains summaries of arguments made at the International Foundation Management Symposium that took place in Berlin, Germany.

Speakers at the event included scholars such as Helmut K. Anheier, J. Gregory Dees, Joel Fleishman, and more. They explored major topics in foundation management, social entrepreneurship, accountability, marketing, quality management, sustainability, and other areas. Despite the complex issues facing nonprofits, the speakers pointed out useful concepts that can be transferred from the for-profit sector.

Heribert Meffert, Volker Then, and Nina Fritsch note in the first chapter:

“The competitive advantage of the corporate world is its market-driven allocation mechanism and the resulting efficiency and discipline. The competitive advantage of foundations is their legitimacy, which they establish through mobilizing private investment for the public good. What both sectors have in common is that their roles are subject to the scrutiny of the public eye.”

This is why transparency and accountability continue to be important issues for both businesses and nonprofit organizations.

Perspectives From Foundation Executives and Scholars of Philanthropy

If you were to organize a speaker series on philanthropy, whom would you invite? You could include current and former foundation presidents such as:

Susan Berresford (Ford Foundation)
James E. Canales (James Irvine Foundation)
Sandra Hernández (San Francisco Foundation)
Peter Hero (Community Foundation Silicon Valley)
Sally Osberg (Skoll Foundation)
Iqbal Paroo (Omidyar Network)

How about inviting some prominent scholars and thought leaders in philanthropy, such as:

Kathleen D. McCarthy (City University of New York)
Steven Schroeder (University of California San Francisco)
James Allen Smith (Georgetown University)
Thomas Tierny (Bridgespan Group)

These are just some of the individuals who spoke at a lecture series sponsored by Stanford University’s Center for Social Innovation and the Haas Center for Public Service.

The practitioners talked about the experiences that have influenced their approaches and strategies. The experts also examined the key issues and challenges facing philanthropy, including foundation accountability, the effectiveness of philanthropy, foundation perpetuity, and more.

The sponsors of the series have just released summaries of these presentations in the volume entitled Stanford Conversations in Philanthropy. We have added this title to our library collections to inspire further discussion on the field. Enjoy!

Recent "Off the Shelf" Book Reviews

Here are highlights from Philanthropy News Digest's Off the Shelf book reviews by Foundation Center staff:

Yours, Mine, and Ours: Creating a Compelling Donor Experience. Barry J. McLeish (John Wiley & Sons, 2007)

"...McLeish explains how nonprofit organizations can succeed in a rapidly changing philanthropic environment by shifting to a more donor-centric approach and, at the same time, addressing five "macro" internal management issues: the future, strategies and tactics, integrating stakeholders, communication and feedback systems, and creating an organizational culture." More...

How to Write Fundraising Materials That Raise More Money. Tom Ahern (Emerson & Church, 2007)

"In his new book, Ahern doesn't write about how to create individual types of PR materials such as annual reports, donor letters, Web sites, etc. And he doesn't provide whole examples, even though he refers to real examples for every instruction. What he does do is present a "donor-centric" outlook and method that should be at the core of any communications piece." More...

Angels in the American Theater: Patron, Patronage, and Philanthropy. Robert A. Schanke, editor (Southern Illinois University Press, 2007)

"...the volume is an excellent and readable introduction to the history of arts patronage, and includes richly textured biographies of early philanthropists such as Otto Kahn and the Lewisohn sisters, as well as an up-to-the-minute look at how contemporary media moguls such as David Geffen, philanthropies like the Ford Foundation, and companies such as Disney are transforming America's performing arts landscape." More...

For a full list of archived Off the Shelf reviews, click here.

Giving Circles: Selected Readings

We are glad so many of you were able to join us this past Friday for the New York Library/Learning Center's second annual open house. For those of you who missed the event, we distributed a brief reading list on giving circles that we'll share with you here:

Bearman, Jessica. More Giving Together: The Growth and Impact of Giving Circles and Shared Giving. Washington, DC: Forum of Regional Associations of Grantmakers, 2007. 36 p. Subject File Number: 458 (full text)
Reports on a survey of 160 giving circles, with a focus on groups that have existed for more than five years. This second report from the Forum of Regional Associations of Grantmakers updates basic giving circle data from the 2004 study, describes how giving circles sustain themselves, and encourages the formation of more giving circles.

Clohesy, Stephanie J. Donor Circles: Launching and Leveraging Shared Giving. San Francisco, CA: Women's Funding Network, [2004]. 58 p. (The New Wealth, Women and Philanthropy Project). Call Number: 580 CLO (full text)
Describes best practices for giving circles and provides guidance on evaluation.

Eikenberry, Angela M. Giving Circles and Fundraising in the New Philanthropy Environment. Center for Public Administration and Policy, Virginia Tech, 2007. 20 p. Subject File Number: 703 (full text)
Eikenberry interviewed fundraising professionals to determine how they are responding to new funding mechanisms such as giving circles.

Eikenberry, Angela M. Giving Circles and the Democratization of Philanthropy. Ann Arbor, MI: ProQuest, 2005. 254 p. Call Number: 458 EIK
Eikenberry collected data on giving circles through a survey, identifying 188 groups that qualified for inclusion. Information that was gathered includes membership fees, size and structure of the group, number of participants, and types of activities. Different types of groups are illustrated by case examples.

Krotz, Joanna. Giving Together: The Guidebook to Giving Circles. Washington, DC: Forum of Regional Associations of Grantmakers, 2005. 12 p. Subject File Number: 458
Provides direction for those who would like to create giving circles, as well as profiles of four well-established groups. According to the publisher, there are approximately 220 such groups, and more than 80 percent were founded in the last five years.

Robinson, Kim. Collaborative Grantmaking: Lessons Learned From the Rockefeller Family's Experiences. Washington, DC: National Center for Family Philanthropy, 2001. 88 p. Call Number: 454 ROC ROB
Relates the experience with six funding collaborations, sometimes called "giving circles" as practiced by members of the Rockefeller family, and housed at The Philanthropic Collaborative. The specific collaborations described are Population, Development and Environment Collaboration; Northern Forest Lands Collaboration; Youth, Community Gardens, and Urban Environment Collaboration; Rockefeller Preserve Collaboration; Genetically Modified Foods Collaboration; and Corporate Social Responsibility Collaboration. For each issue, indicates date of inception, amount distributed, grant range, family members who are sponsors, partners, staff, and current status.

Shaw-Hardy, Sondra. Creating a Women's Giving Circle: A Handbook. Madison, WI: Women's Philanthropy Institute, 2000. 67 p. Call Number: 450 SHA
Giving circles are groups of people who combine their donations to fund projects in their communities. This booklet provides a blueprint for establishing such a group, from determining its purpose, giving it a name, recruiting members, establishing giving guidelines, meeting routines and other issues. Includes worksheets and resource list.

For complete a bibliography on the topic, search the Catalog of Nonprofit Literature by entering “giving circles” in the Keyword search field (click here). Visit the Forum of Regional Associations of Grantmakers’ Giving Circle Knowledge Center to find a giving circle or to learn how to start one with sample templates and documents.

Nonprofit Organization Best Practices

Maybe you have read the Jim Collins book, Good to Great: Why Some Companies Make the Leap...and Others Don't, to understand the qualities of superior corporations. You may have even looked at the follow-up title, Good to Great and the Social Sectors, to explore his views on effective nonprofits.

Readers have been eager to learn about addition research on great charities. Now Leslie R. Crutchfield, managing director of Ashoka, and Heather McLeod Grant, adviser to the Center for Social Innovation at Stanford University, have released Forces for Good: The Six Practices of High Impact Nonprofits (published by Jossey-Bass).

The authors surveyed thousands of nonprofits and conducted interviews to examine the traits of great organizations. The book focuses on twelve case studies of the following organizations: America's Second Harvest, Center on Budget and Policy Priorities, City Year, Environmental Defense, Exploratorium, Habitat for Humanity, Heritage Foundation, National Council of La Raza, Self-Help, Share Our Strength, Teach for America, and YouthBuild USA.

The research indicates that great nonprofits often have advocacy programs, take advantage of market forces, encourage their volunteers to promote their causes, use networks and collaborate, adapt to changing conditions, and share leadership.

Corporate Philanthropy Best Practices

How can companies succeed at becoming good corporate citizens and achieve business objectives at the same time? This past summer, the Center on Philanthropy at Indiana University released a report that examined current and emerging trends in corporate philanthropy and explored best practices for supporting nonprofit organizations. The analysis for Corporate Philanthropy: The Age of Integration was based on interviews from with representatives from Boeing, Cisco, General Mills, IBM, Levi Strauss, Procter & Gamble, Starbucks, Target, Toyota, and Wachovia. Findings from the interviews are available at the Center on Philanthropy's web site.

Who Gives and Why: A Review of Academic Research

Are you looking for a systematic overview of research related to charitable giving by individuals? Look no further because René Bekkers (Utrecht University - Department of Sociology) and Pamala Wiepking (Vrije Universiteit Amsterdam - Department of Philanthropic Studies), have examined nearly 500 studies for their report Generosity and Philanthropy: A Literature Review. The authors explore various demographic indicators that may correlate with giving including religion, education, income, and age. Other factors may also affect philanthropy, such as the cost of giving, as well as psychological benefits. The authors also recommend areas for further research. The paper is available at the Social Science Research Network web site.

Special Book Signing Event With Author Tracy Gary, Inspired Philanthropy

Wednesday, November 14, 2007 (8:00-10:00 am)
New York Regional Association of Grantmakers

Join Tracy Gary, author of the newly released third edition of Inspired Philanthropy: Your Step by Step Guide to Creating a Giving Plan and Leaving a Legacy, and guest speakers for a conversation about women's philanthropic leadership, new trends in the nonprofit world, and how women donors are boldly changing the foundation sector. Attendees will receive a free copy of the book.

Hosted by the National Council for Research on Women and co-sponsored by the Foundation Center, New York Regional Association of Grantmakers (NYRAG), Financial Women's Association, and The Sister Fund, this program will be held at NYRAG, 79 Fifth Avenue at 16th Street in Manhattan. Please RSVP to Jessyca Dudley at the National Council for Research on Women, (212) 785-7335 ext. 200, or jdudley@ncrw.org. Click here for more information.

(Originally posted on New York Library News. Click here to subscribe to free newsletters from the Foundation Center.)

Legal Guide for Collaboration

Nonprofits may achieve their missions more effectively when working together with other organizations. The Lawyers Alliance for New York’s new publication, Building Successful Collaborations: A Legal Guide for Nonprofits, focuses on the careful planning required before organizations enter into binding agreements. The booklet provides discussion questions to help organizations analyze the benefits and risks of collaboration. A due diligence checklist is included to help identify appropriate collaborators. The guide also discusses the lawyer’s role, the negotiation process, the written agreement, and collaboration management. The appendices contain sample agreements in the area of workforce development.

While the guide is not intended to substitute for advice from an experienced lawyer, it will give nonprofits a head start in the planning process.

To find more readings on collaboration that are listed in the Catalog of Nonprofit Literature, click here.

Succession Planning for Nonprofit Organizations

There has been much discussion on what can be done to address the the leadership challenges the nonprofit sector may face as more baby boomers retire from the workforce. Should nonprofits hire interim executive directors during transition periods? What are some succession issues that board members face? How should family foundations get younger generations involved?

We hope that our new topical resource list, Succession Planning for Nonprofit Organizations, will help you explore some of these questions. Please let us know of additional readings that you would like to share.

Americans for the Arts: New Publications

As the nation's leading nonprofit organization for advancing the arts, Americans for the Arts represents and serves local communities in an effort to create opportunities to participate in and appreciate the arts.

Browse some of their recent publications to learn more about arts philanthropy and arts advocacy:

Congressional Arts Handbook 2007: Facts & Figures at Your Fingertips
Developed for Arts Advocacy Day 2007, the guide can be used to build government support for the arts in various communities. Contains issue briefs, voting records, statistics, and Congressional contact information.
Access: PDF


The Future of Private Sector Giving to the Arts in America
Summary of research and recommendations put forth at the 2006 National Arts Policy Roundtable. Research shows that funding for arts organizations is dropping across the philanthropic sector. The report lists policy recommendations by sector, including business, foundation, individual, and government giving.
Access: PDF


The Quality and Nature of Corporate Support for the Arts: A Pilot Study
Business executives were interviewed to explore their views on corporate philanthropy in the arts. Topics covered in the research study include corporate giving priorities, arts funding requests, arts-business partnerships, and the drop in corporate support for the arts. The report concludes with recommendations to help arts organizations strengthen relationships with corporations, noting that arts councils can play an important role in facilitating these efforts.
Access: Visit one of our five Foundation Center library/learning centers or purchase from Americans for the Arts

Corporate Giving Periodicals

There are currently two periodicals that can help you learn more about the giving programs at the nation’s largest corporations.

One well-known periodical is the Corporate Philanthropy Report from by LRP Publishers. Yesterday, the Foundation Center library received the November 2007 issue which spotlights airlines such as American Airlines, Continental, Delta, Southwest, United, and US Airways. The pharmaceutical industry is also highlighted with profiles of Abbott Laboratories, Bayer, GlaxoSmithKline, Novartis, and Pfizer.

The Committee Encouraging Corporate Philanthropy (CECP) is an international membership group that seeks to advance corporate giving and inspire other business leaders to make a commitment to philanthropy. CECP's publication, The Corporate Philanthropist, is available in full-text online. In a special issue published earlier this year, executives from businesses and nonprofits share perspectives and best practices on corporate philanthropy and the arts. Companies discussed include JPMorgan Chase, Bloomberg, Time Warner, and others.

Tip: If you are looking for a search tool to find company-sponsored foundations or corporate giving programs that may support your nonprofit, try using the Foundation Center subscription databases, Corporate Giving Online or Foundation Directory Online (specify “Type of Grantmaker” when searching). Foundation Directory Online can also be used free of charge at the Foundation Center’s library/learning centers and Cooperating Collections.

Governance Frequently Asked Questions

The Foundation Center libraries have acquired the new edition of The Nonprofit Board Answer Book: A Practical Guide for Board Members. The volume answers 80 questions on a variety of topics, including board functions, board structure, board development, committee meetings, fiduciary responsibilities, board-staff relations, and organizational change issues. The new edition contains more information on compensation, accountability, risk management, diversity issues, Sarbanes-Oxley and other legislation. Here are some sample questions that are addressed:

What is the best size for our board?

How does the board avoid the extremes of "rubber stamping" and micromanaging?

How can technology improve board and committee meetings?

Learn more at BoardSource's web site.

Grantmakers in the Arts Reader

Grantmakers in the Arts' GIA Reader discusses current and emerging issues facing it members, which include to foundations, government entities, and individual donors.

The latest issue of the GIA Reader (Fall 2007) is a compilation of essays collected for the Grantmakers in the Arts 2007 conference. Two of the essays in this special volume are from historian and former GIA board member, James Allen Smith. He discusses professionalism in philanthropy and looks at the unique characteristics of cultural giving.

The Summer 2007 issue of the GIA Reader contains the annual update, "Vital Signs: Snapshots of Arts Funding." The update provides an analysis of foundation grants to arts and culture in 2005, based on data from the Foundation Center. A brief article from the National Assembly of State Arts Agencies that covers government funding for the arts from 1992-2007 is also included.

If you are interested in any of these features, visit the Grantmakers in the Arts web site. Some articles from the GIA Reader are available in full text:

GIA Reader - Summer 2007
GIA Reader - Fall 2007

Philanthropy 2.0

Interested in learning how technology continues to change the way we support our favorite causes and collect information on our donors? Have a look at Contribute magazine’s September/October 2007 issue which contains the special report, “The Cause Web.” Here are some selected articles:

"Facebook Generation: 10 Tech Revolutionaries Redefining the Power and Face of Philanthropy." p. 44-53
In addition to Contribute's profiles of technology luminaries, the article also includes an edited transcript of an interview with Joe Green and Sean Parker, who created Facebook's Causes web application. The tool allows users to support and raise money for their favorite nonprofits.

"Pixel-anthropy: Second Life Gets Second Wind as Nonprofits Move In--and Reach Out". p. 54-61.
Describes the growing interest in virtual communities on the Internet, such as Second Life. The article also includes an interview with Anshe Chung, a Second Life real estate entrepreneur and philanthropist.

"Privacy Lost." p. 68-74.
An edited transcript of a roundtable discussion on new privacy and security risks facing donors as more personal information is captured in databases. Participants include Sree Sreenivasan, dean at the Columbia University's journalism school; Marc Rotenberg, executive director and founder of the Electronic Privacy Information Center; Laura Fredericks, author and fundraiser; Chris South, director of Blackbaud Analytics; Cynthia Wainwright, philanthropist; and Jeff Brooks, author of donorpowerblog.com.

For other articles and books on how nonprofits make use of the Internet, click here to search our Catalog of Nonprofit Literature.

Recent "Off the Shelf" Book Reviews

Here are highlights from Philanthropy News Digest's Off the Shelf book reviews by Foundation Center staff:

Financing Nonprofits: Putting Theory into Practice. Dennis R. Young, editor (AltaMira Press, 2006)

"Financing Nonprofits is a comprehensive, high-level examination of the theory underlying nonprofit finance and, in addition to nonprofit CEOs, CFOs, and trustees, should be of interest to scholars and students of nonprofit finance." More...

Encore: Finding Work That Matters in the Second Half of Life. Marc Freedman (PublicAffairs, 2007)

"While Freedman does not rule out the business world as a source of encore careers, it is clear that his vision is for boomers to become 'the backbone of education, health care, nonprofits, the government, and other sectors essential to national well-being.' He convincingly argues not only that boomers are particularly well-suited for these roles given their life experience, but that labor shortages in crucial fields such as teaching and nursing demand intervention from the boomer generation." More...

Mapping the New World of American Philanthropy: Causes and Consequences of the Transfer of Wealth. Mary Beth Martin, Susan U. Raymond (John Wiley & Sons, 2007)

"...how will this unprecedented transfer of wealth affect the nonprofits that stand to gain? How will nonprofits respond to the managerial and organizational challenges? And can American philanthropy continue to exist in its current form?...Those are just some of the questions addressed in Mapping the New World of American Philanthropy." More...

Reconnecting Education and Foundations: Turning Good Intentions into Educational Capital. Thomas Ehrlich, Ray Bacchetti, editors (Jossey-Bass, 2006)

"To commemorate its centennial, the Carnegie Foundation for the Advancement of Teaching commissioned two of its resident scholars, Ray Bacchetti and Thomas Ehrlich, to edit a collection on the faltering relationship between major foundations and educational institutions. The result, Reconnecting Education and Foundations, proposes a paradigmatic shift toward the accumulation of educational capital by grantseekers and grantmakers." More...

For a full list of archived Off the Shelf reviews, click here.

Funding for Basic Operating Support: Additional Readings

Cooperating Collections are free funding information centers in libraries, community foundations, and other nonprofit resource centers that provide a core collection of Foundation Center publications and a variety of supplementary materials and services in areas useful to grantseekers. This weekend, Cooperating Collection supervisors from across the country are in New York for the annual Cooperating Collections national conference.

In one of the sessions, foundation representatives spoke about a key component of most nonprofit fundraising needs, general operating support. To explore the issues related to unrestricted support for nonprofits, the speakers suggested the following readings:

Core Support
F.B. Heron Foundation, 2005.

General Operating Support: A GEO Action Guide
Grantmakers for Effective Organizations, 2005.

Highlights of Foundation Giving Trends, 2007 edition
Foundation Center.

In Search of Impact: Practices and Perceptions in Foundations' Provision of Program and Operating Grants to Nonprofits
Center for Effective Philanthropy, 2006.

Not All Grants Are Created Equal: Why Nonprofits Need General Operating Support from Foundations
National Committee for Responsive Philanthropy, 2005.

“No Strings Attached,” Chronicle of Philanthropy, Sept. 20, 2007, p. 32-33.
Abby Disney, co-founder and president of the Daphne Foundation, talks about the benefits of unrestricted gifts.

For other materials, search the Foundation Center's bibliographic database, the Catalog of Nonprofit Literature, by entering “operating support” in the keyword field.

October is Funding for Arts Month

As mentioned last week, we are celebrating Funding for Arts Month at the Foundation Center. Throughout October we're offering free special events, classes, and web resources aimed at helping artists and nonprofit arts organizations alike become better fundraisers.

View our library/learning center calendars to find a full schedule of Arts Month events:

New York
Cleveland
San Francisco
Atlanta

You can also explore key issues facing arts organizations by examining our updated Topical Resource Lists:

Corporate Philanthropy in the Arts
Funding and Managing Arts Organizations

To view a list of other arts-related materials that we have recently added to our library collections, click here.

"Philanthropy in Hollywood"

Some of you may be interested in learning how the entertainment industry is supporting their favorite nonprofit organizations. Our library has recently obtained a copy of the annual issue of The Hollywood Reporter that highlights the philanthropic activities of the major movie studios, television networks, talent agencies, and industry leaders.

The articles in the "Philanthropy in Hollywood" section explain Harvey Weinstein's involvement with the Robin Hood Foundation, HBO Films' filmmaking program for at-risk youth, and more.

These articles are also available on the Hollywood Reporter web site, where you can find a directory of nonprofits with significant entertainment-industry support.

For more information on celebrity philanthropy, be sure to have a look at the Foundation Center's Youth in Philanthropy site.

On a related note, we would like to announce that our New York library/learning center will be hosting the special event, "Successful Strategies for Engaging Celebrities in Your Cause" on October 16, 2007 as part of Funding for Arts Month. Click here to learn more.

Fundraising Effectiveness Survey

Many nonprofits may be too focused on how many new donors have been acquired without looking carefully at the number of lapsed donors. Do you know what your donor attrition rate is? How does your attrition rate compare with other organizations? Let’s find out.

The Association of Fundraising Professionals (AFP) has teamed up with the Urban Institute and other organizations to launch the Fundraising Effectiveness Project to help nonprofits evaluate and maximize annual giving.

A key element in the project was the Fundraising Effectiveness Survey, which involved collecting data from survey participants’ donor databases. The analysis of the pilot survey data from 275 participants indicate that giving at these organizations grew 10.6 percent from 2004 to 2005. What’s more interesting is that the growth is actually the net ratio of the gains (62.6 percent) minus losses in giving (51.9 percent). Indeed, maximizing annual giving involves acquiring and upgrading donors while implementing donor retention strategies.

The survey report’s appendix includes individual charts that compare ratios by organizational type, size, age, and region. The full-text of the FEP Pilot 2004-05 Survey Report is available at AFP’s web site.

Perspectives from a Former Foundation President

In Beyond the Money, Edward Skloot, the former president of the Surdna Foundation, shares his thoughts on more effective approaches to philanthropy and social change. The compilation of Skloot’s speeches touches on a variety of topics and issues, including funding collaboratives, advocacy, social entrepreneurship, governance issues, and more.

His critique of American philanthropy serves to promote constructive dialogue in the sector, as Joel Fleishman’s The Foundation: A Great American Secret has. Skloot writes:

“The little collection you are reading now is wider in its scope and more impressionistic in its tone than Joel’s finely honed, expert review of the philanthropic sector. But I hope this contribution will also be provocative and useful. Call it the 'sorbet course' in an ongoing dinner conversation about the uncommon challenges facing civil society."

To read more (and to find out what Skloot means by the “International House of Pancakes Theory of Philanthropy”) call the Surdna Foundation at (212) 557-0010, ext. 400, and request a free copy. The full-text is also available in PDF format:

Beyond The Money: Reflections on Philanthropy, The Nonprofit Sector and Civic Life, 1999-2006

New Report on Community Foundations

In Key Facts on Community Foundations, the Foundation Center reports that giving by the nation's 707 community foundations rose to a record $3.6 billion in 2006. Other findings:

Giving by community foundations in the sample increased at a higher rate than independent and corporate foundations.

While 60 percent of community foundations indicated that they expected to increase giving in 2007, 29 percent expected reductions.

Click here to view the full report.

Find out which community foundation ranked highest in total giving for 2005 (the answer may surprise you).

Bill Clinton's New Book

In Giving: How Each of Us Can Change the World, Bill Clinton describes his philanthropic activities, as well as the efforts of companies, charities, and other individuals. He also discusses how business and nonprofits can organize markets for the public good. The former President notes:

“In this book you’ll encounter givers old, young, and in between, rich, poor, and in between, highly educated, virtually illiterate, and in between. You’ll read about innovative organizations, about new ways of giving time and money, and about old-fashioned acts of individual generosity and kindness. I think you’ll find people with whom you can identify, groups you might want to join, companies you might want to buy from, projects you might want to start on your own.”

More information is available from the publisher, Alfred A. Knopf.

Stay tuned for Philanthropy News Digest’s upcoming book review on this title.

Core Periodical: Currents

One of the core titles in our library's periodical collection is Currents, published by the Council for Advancement and Support of Education (CASE). While the magazine is primarily for advancement professionals in educational institutions, the periodical often contains tips and advice that may be applied to other types of organizations. Here is a sampling of articles we have cataloged:

"On Board." (April 2007)
Discusses the importance of board members in capital campaigns, noting that board assessments should be included in campaign feasibility studies. Presents three brief case studies that explain the various roles board members may play in campaigns.

“Campaign Fatigue Syndrome.” (April 2007)
Explains how to keep development staff motivated by shifting responsibilities, rewarding staff, and providing growth opportunities.

“Messaging Donors: This Time It's Personal.” (February 2007)
Discusses ways to optimize campaign communications so that the right messages are targeted at the right people. Topics covered include database profiling, communications focus groups, RSS (really simple syndication) feeds, and Web analytics.

“Away They Go?” (April 2007)
Discusses the reality of donor fatigue, noting that donors may be dissatisfied with organizations or tired of incessant solicitations. Suggestions for addressing donor fatigue include expanding the donor base and developing new forms of recognition.

“Taken for Granted” (May-June 2007)
Explains the benefits of seeking grants from small foundations while noting some key issues to consider.

Visit the CASE Currents web site for a complete listing of articles from past issues. Online access to full-text articles is only available to CASE members. Remember, you can also stop by the Foundation Center (our library in New York has been collecting issues of Currents since 1986).

Using Evaluations for Greater Impact

Many nonprofits use evaluations to improve their services, but did you know that organizations are also using them to influence policy and legislation? Have you thought about using evaluation information for marketing and public relations?

If these ideas interest you, stop by our libraries and have a look at Information Gold Mine: Innovative Uses of Evaluation, published by the Fieldstone Alliance. The guide contains key questions to consider and several real-life examples to help you look at your assessment data more creatively.

Note: The Foundation Center’s Philanthropy News Digest has just launched PhilanTopic, a new blog and interactive platform for a broad range of opinion and commentary from foundation staff, nonprofit practitioners, and those who simply enjoy a good debate.

Recommendations for Generational Transition

Transitioning leadership from the baby boom generation to the generations that follow continues to be an important issue the nonprofit sector needs to address. The Building Movement Project, established at the Hauser Center for Nonprofit Organizations at Harvard University, has released a report that explores how 27 social change leaders view their contributions and their future roles. Here are four of the key recommendations presented in, What’s Next? Baby Boom-Age Leaders in Social Change Nonprofits:

1) Create collective resources and options for the baby boom generation’s leadership and life transition planning

2) Identify and develop opportunities for baby boom generations to continue their contributions

3) Promote cross-generational dialogue and learning to facilitate information transfer and share experience

4) Explore different models of organizational leadership that promote mutual learning and shared leadership

Find out about the suggested action steps for each recommendation from the full report, available at the Building Movement Project web site.

Rural Philanthropy

Foundations seeking to achieve greater impact often focus their grantmaking in areas with dense populations. Some grantmakers may also believe that rural nonprofits lack the sophistication needed to become effective and sustainable grantees.

These are among the findings described in the report, Rural Philanthropy: Building Dialogue from Within, published by the National Committee for Responsive Philanthropy. NCRP examines real and perceived obstacles that set rural nonprofits apart from foundations located in urban settings.

Strategies that NCRP recommend include providing flexible multiyear support and funding for reserves. In addition, rural philanthropy can be strengthened by expanding the role of capacity building intermediaries and funding collaboratives.

The full report was funded by the W. K. Kellogg Foundation and is available at the NCRP web site.

Awards, Honors, and Prizes

Are you an individual trying to find out if you are eligible for a prize? Maybe you are thinking of establishing a new award and would like to see what existing programs are out there. One good resource is Awards, Honors, and Prizes, an annual directory published by Thomson Gale. The publication covers all fields, including advertising, films, journalism, literature, music, science, and many others. Volume one includes awards given by organizations in the United States and Canada, and volume two includes listings from the rest of the world. The set is available for your review at the Foundation Center library/learning centers.

Remember, listings of selected awards and prizes from U.S. grantmakers can also be found in our publication Foundation Grants to Individuals, available in print and online.

Fiscal Sponsorship: Myths and Facts

Nonprofit organizations may extend their tax-exempt status to individuals or unincorporated groups under fiscal sponsorship arrangements. These arrangements are often misunderstood since there is a lack of literature and discussion in this area.

After conducting interviews with foundation leaders and experts in the field, the consulting group BTW has released a paper to help the sector address the following misconceptions:

Myth #1: Fiscal sponsorship is only good for incubation
Myth #2: Fiscal sponsorship is just financial management
Myth #3: Fiscal sponsorship has limited utility in the nonprofit sector

By debunking these myths, the authors hope to inspire discussion so that fiscal sponsorship can play a more important role in helping the sector become more effective.

Here is the link to the report: More Than the Money: Fiscal Sponsorship’s Unrealized Potential (2007).

For more information, you might also review the first ever survey of fiscal sponsors that was published by the Tides Center: Fiscal Sponsorship Field Scan: Understanding Current Needs and Practices (2006).

Funding the Gulf Coast Recovery Efforts: A New Report

To provide a more complete picture of the institutional giving that supported recovery efforts following hurricanes Katrina and Rita, the Foundation Center has just released the report, Giving in the Aftermath of the Gulf Coast Hurricanes: Update on the Foundation and Corporate Response.

The analysis reveals that U.S. foundations and corporations committed more than $1 billion in cash and in-kind giving for the rebuilding process. One of the key findings was that corporate giving was more directed toward immediate needs, while foundations concentrated their grants on long-term recovery.

Learn more from the press release or the full report.

Campaign Feasibility Studies

An effective capital campaign requires careful planning and strong support from donors. To increase your success rate, you organization may conduct a pre-campaign development planning study, also known as a feasibility study. According to fundraising consultant Elliott S. Oshry, "The process, therefore, is a planning exercise designed to develop the comprehensive campaign plan, to broker the case among key constituents, to raise the sights of prospective donors, and to accelerate the pre-ask cultivation process."

Oshry is one of the contributors to The Fundraising Feasibility Study: It's Not About the Money, published by John Wiley. This book presents a step-by-step model to help organizations prepare for their campaigns. Chapters cover the study timeline; the roles of various committees, trustees, officers, staff, and consultants; interview strategies; data analysis and other topics. The appendices contain sample documents including an action plan, interview schedule, telephone script, interviewer questionnaire, reports and various forms.

Learn more about this title at John Wiley's Web site.

Biographies of Philanthropists

As featured in Philanthropy News Digest, philanthropist Brooke Astor passed away earlier this month at the age of 105. Inheriting her late husband's fortune, she was known to have visited every organization or group that sought support from the Vincent Astor Foundation.

You can learn more about her life and philanthropic work in a new biography from W. W. Norton & Company, The Last Mrs. Astor: A New York Story. Written by Frances Kiernan, a former editor at The New Yorker, the volume is based on firsthand knowledge and interviews with Brooke Astor's friends and colleagues.

Here is a link to the New York Times book review.

To find more biographies of philanthropists in the Catalog of Nonprofit Literature, click here .

General Operating Support: An Action Guide

Perhaps you are a grantmaker interested in providing general operating support, but may not have a good grasp of the issues involved. Grantmakers for Effective Organizations has just published the guide that you have been waiting for.

Simply titled General Operating Support, this booklet explains what general operating support is, why it is important, and how grantmakers can approach this type of funding. A sidebar provides advice on making the case to the board. Here are two examples from the "Debunking the Myths" section.

Myth:

“We’re adequately supporting nonprofit infrastructure through the overhead associated with our project grants.”

Reality:

Grantmakers rarely cover all associated direct and indirect costs of funded projects. In some cases, this is because nonprofits lack the capacity to account for such costs accurately. More often, it is because the percentages grantmakers allow are arbitrary and too low.

Myth:

“General operating support grants are not as accountable as restricted project grants.”

Reality:

Because project grants are designated for a specific purpose and a specific set of activities, it is easier to track those funds. However, if you are interested in understanding the organization’s progress or outcomes, there is very little difference in accountability between project and general operating support. In both cases, the grantmaker needs to work with the grantee to design evaluation questions that clarify the impact of the grantee’s work.

Learn more about this guide at the Grantmakers for Effective Organizations web site. You can request a copy by contacting Dakota Fine at fine@geofunders.org.

Dashboard Reports for Nonprofits

Do board members and senior staff in your organization have access to key performance indicators to them make better decisions? Typically used by corporations, more nonprofits are using dashboard-style reports to make sure organizations are heading in the right direction. For example a quarterly dashboard report may contain the most important measures of financial health, customer satisfaction rates, human resources data, expenses, and other statistics.

Earlier this year, BoardSource published The Nonprofit Dashboard: A Tool for Tracking Progress to help you get started. The book discusses how to develop, implement, and maintain a dashboard reporting system. Chapters explains how to define the dashboard metrics and how to design the reports. Many examples are included in the guide and a dashboard generator is included in a CD-ROM. Learn more at the BoardSource web site.

Funding for International Students and Researchers

While many of the resources found in the Foundation Center's library collections are geared toward nonprofit organizations, we do maintain a section of publications for individual grantseekers.

For example, we recently added the Institute of International Education's Funding for United States Study 2007-2008. The directory provides information on more than 500 grants, fellowships, and scholarships for undergraduate and graduate study, as well as doctoral and postdoctoral research in the U.S. The publication lists funding opportunities from the following types of organizations:

U.S. and foreign governments
Colleges and universities
Educational associations
Libraries
Research centers
Foundations
Corporations
Other Organizations

Learn more about the directory and IIE's programs at the organization's web site.

Investment Benchmarks for Foundations and Charities

If you are interested in comparing your organization’s investment practices and performance with other groups, have a look at two new reports from the Commonfund Institute.

The Commonfund Benchmarks Study 2007 Foundations Report surveyed 279 private and community foundations while the Operating Charities Report surveyed 101 cultural, religious, and social service organizations. Both reports contain chapters that cover investment objectives, investment returns, asset allocation, spending, costs, management, governance, and other topics.

To learn more, visit the Commonfund Institute's web site.

Promoting Foundation Accountability

To help grantmakers achieve greater accountability, the Minnesota Council on Foundations (MCF) shares best practices with two new publications in its Philanthropy & Public Trust Series.

Principles for Grantmakers & Practice Options for Philanthropic Organizations presents statements of responsibilities that MCF members subscribe to and provides guidelines in several areas. Topics covered include governance, communications, programs, finance, human resources, fund development, and diversity. The booklet also contains an accountability self-assessment tool.

What Every Grantmaker Should Know & Frequently Asked Legal Questions addresses key legal issues including self-dealing, excess benefit transactions, compensation, conflicts of interest, investments, grantmaking, public policy, lobbying, payout requirements, reporting, public disclosure, and audits.

Both publications are available at the Minnesota Council on Foundations web site.

Foundation Board Manual

Looking for a manual for your foundation board of trustees? The Association of Small Foundations has published The Trustee Handbook to share best practices. Designed for boards of foundations with few or no staff, the guide covers a variety of topics including board effectiveness, grantmaking, legal and tax issues, and financial oversight. The handbooks contains many useful documents:

board member position description
board and grantmaking policies
grant guidelines
grant application
acknowledgment letter
declination letter
site visit report
grant evaluation report

Learn more at the Association of Small Foundations' web site: http://www.smallfoundations.org

Planning for Generational Change

As individuals from the Boomer generation leave the workforce, nonprofits need to explore how this trend will affect their leadership as well as the services they provide. Is your organization recruiting board members from all generations, including Gen X and Gen Y? What are the financial implications of generational change?

Nonprofit management expert Peter Brinckerhoff has written a practical guide “Generations: The Challenge of a Lifetime for Your Nonprofit” to help you plan for the transition. The book provides steps to deal with generational differences in human resources, marketing, programming, technology, and management. Each chapter ends with a summary and discussion questions. I think you will find the examples and action steps quite useful. More information about the title is available at the Fieldstone Alliance’s web site.

Library New Acquisitions Lists

We have just posted our bimonthly update of new books and articles that have been indexed and abstracted for the Catalog of Nonprofit Literature. On the right side of the New Acquisitions page, you will see links for main headings such as Corporate Philanthropy, Fundraising, International Philanthropy, and more.

Reminder: Get instant updates to the Catalog of Nonprofit Literature by subscribing to its RSS feed with a feed aggregator.

Recent Off the Shelf Book Reviews

Here are highlights from Philanthropy News Digest's Off the Shelf reviews that have been posted in the past month:

Taking Philanthropy Seriously: Beyond Noble Intentions to Responsible Giving. Susan Verducci, William Damon, editors (Indiana University Press, 2006)

"Largely comprised of essays from leading academics, third sector professionals, and former government officials, Taking Philanthropy Seriously examines the currents moving through contemporary American philanthropy, many of which — like venture philanthropy — aren't that new, and also traces the ethics and politics of more traditional giving, from the Greeks and Romans through the Rockefellers and Gateses." More...

A Billion Bootstraps: Microcredit, Barefoot Banking, and the Business Solution for Ending Poverty. Eric Thurman, Philip Smith (McGraw-Hill, 2007)

"...Philip Smith and Eric Thurman argue that microcredit — with its focus on tiny individual investments in the livelihoods of the poorest of the poor — is the most effective and promising philanthropic idea of our time. The book, one-third economics lesson, one-third folksy travelogue, and one-third matchless account of literal salvation, is a worthwhile and approachable read for anyone looking to understand the mechanisms of global poverty and how a new breed of "venture philanthropists" are reinventing international philanthropy." More...

Be Bold: Create a Career with Impact. Cheryl L. Dorsey, Lara Galinsky (New York, NY : Echoing Green, 2006)

"...Dorsey and Galinsky — president and vice president, respectively, at Echoing Green, an innovative nonprofit that provides first-stage funding and support in the form of two-year fellowships to visionary leaders with bold ideas for social change — relate how twelve Echoing Green fellows were moved to create nonprofit organizations that fill the unmet needs of society." More...

For a full list of archived Off the Shelf reviews, click HERE.

Volunteer Management: Exploring Legal Issues and Managing Risk

While many charities depend on volunteers to carry out their missions, volunteer managers may not understand the legal implications of working with volunteers and unpaid staff. The Lawyers Alliance of New York has just published “The Volunteer Workforce: Legal Issues and Best Practices for Nonprofit Organizations” to help nonprofit explore some of these topics. The first section covers the legal difference between volunteers and employees, best practices for screening and compensating volunteers, and how to manage volunteers. The second section deals with legal pitfalls and the consequences of mishandling the volunteer relationship. The guide’s appendix also contains sample forms. Although the book focuses on New York state law, non-New York employers may find it useful since much of the pertinent law is federal.

If you are interested in further managing risk when working with volunteers, consider browsing the Nonprofit Risk Management Center’s latest edition of “No Surprises: Harmonizing Risk and Reward in Volunteer Management.” Topics covered include young and senior volunteers, animals, corporate volunteers, public relations issues, insurance, and volunteer protection laws.

While these guides are not intended to be a substitute for legal advice, they are good publications to help you get conversations started on the legal issues related to working with volunteers.

To find additional readings from the Catalog of Nonprofit Literature on the topic of voluntarism, click HERE.

Nonprofit Governance Study Released

As the nonprofit sector continues to promote greater accountability and transparency, more research is needed to develop best practices and support policy debates. The Urban Institute’s Center on Nonprofits and Philanthropy has released "Nonprofit Governance in the United States: Findings on Performance and Accountability From the First National Representative Study."

The report analyzes data collected in 2005, which covers more than 5,100 nonprofit organizations. It addresses three areas of nonprofit governance: how accountability policies such as Sarbanes-Oxley affect nonprofits; factors that promote or impede boards' stewardship of organizations; and the board composition and recruitment process. Here is just one of the study's many findings:

"Substantial percentages of boards are simply not actively engaged in various basic governance activities—and if anything, this study, based on self-reports, likely understates the problem. Furthermore, we find a level of insularity among nonprofit boards in certain respects that is not consistent with their public-interest serving mandate. This is true in the areas of composition, where we saw high levels of ethnic and racial homogeneity."

See also consulting group Grant Thorton’s "2006 National Board Governance Survey for Not-for-Profit Organizations.”

To find additional readings from the Catalog of Nonprofit Literature, click on the subject headings below:

Nonprofit organizations-accountability
Board members

New Case Study of a Failed Social Enterprise

Seedco Policy Center's new report The Limits of Social Enterprise: A Field Study & Case Analysis presents an overview on nonprofit social enterprises and includes a case study of a failed venture (Seedco's Community Childcare Assistance program). It provides lessons learned as well as recommendations for nonprofit entrepreneurship. Here are two lessons from the study:

"When businesses are expected to meet for-profit goals while operating under nonprofit rules, the so-called double bottom line can easily become an impossible double bind."

"Nonprofit social-purpose businesses must resist the impulse to 'do more.' The more social responsibilities a venture assumes, the more difficult it is to succeed in the marketplace."

For more information on social entrepreneurship, I've created a canned search of the Catalog of Nonprofit Literature for you (click here).

Supporting Indigenous Populations

Some of our readers may be interested in philanthropy related to indigenous populations. Let's review a few of these items that I have come across, all of which are available online:

Delgado, Louis T. A Demographic Profile of Independently Incorporated Native American Foundations and Selected Funds in the United States. Minneapolis, MN: Native Americans in Philanthropy, 2006. 24 p.
Provides basic demographic information on 60 Native American-controlled philanthropic organizations: 36 Native American foundations, 15 nonprofit organizations, and nine tribal funds.

Adamson, Rebecca. "Indigenous Peoples and Philanthropy: Colonialism by Other Means?" Alliance, vol. 11 (December 2006): p. 40-1.
A degree of distrust between some foundations and indigenous organizations has emerged over time due to cultural misunderstandings. The author suggests that grantmaking can be more effective when funders employ a holistic approach to philanthropy that provides enough flexibility for indigenous peoples.

Gordon, Ken. "The Fine Line of Funding in Indian Country." Grantmakers in the Arts Reader, vol. 18 (Spring 2007): p. 13-5.
Gordon explains how important it is to respect the indigenous cultures of grant applicants when gathering information from them. He draws from his grantmaking experience as former chief executive of Trust Waikato, a community foundation in New Zealand. Gordon is currently the executive director of the Potlatch Fund, based in Seattle.

Foundations and Public Policy

Foundation Yearbook: Facts and Figures on Private and Community Foundations released just last month by the Foundation Center, estimated that overall foundation giving rose 11.7 percent in 2006 to an estimated $40.7 billion. While this is an impressive figure, we should note that the government annually spends hundreds of billions of dollars in areas nonprofits are interested in.

Indeed, one way foundations can achieve their missions and address long-term issues is by shaping public policy. Foundation leaders may not know enough about advocacy strategies or understand the legal rules and risks associated with such efforts.

Earlier this year, the Fieldstone Alliance, in collaboration with Grantmakers for Effective Organizations, published “Power in Policy: A Funder’s Guide to Advocacy And Civic Participation.” The various contributors to the book weigh what role foundations should play, and provide real-life examples, practical advice, and inspiration. Be sure to stop by our library/learning centers to have a look!

New Report on Giving Circles

Giving circles are groups of people who combine their donations to fund projects in their communities. The Forum of Regional Association of Grantmakers has been carefully tracking the emerging trend and has released "More Giving Together: The Growth and Impact of Giving Circles and Shared Giving." The Forum has identified more than 400 giving circles and has gathered in-depth information on 160 of them.

This second report from the Forum updates basic giving circle data from the original 2004 study, describes how giving circles sustain themselves, and encourages the formation of more giving circles. The full-text of the study is available at the Forum's web site. For more information on starting or joining a giving circle, be sure to visit the Forum's Giving Circle Knowledge Center.

Practical Advice for Launching a Publication

If you are planning to launch a magazine, newsletter, or web site for your nonprofit organization, Nolo Press has just released a comprehensive handbook that can help you get started. "Every Nonprofit's Guide to Publishing" explains in detail how nonprofits of all sizes can apply standard publishing strategies, techniques, and best practices to their products. Topics covered include the editorial mission, production process, content development, budgeting, personnel, design, printing, web publications, distribution, advertising, and getting feedback. The book also comes with a CD-ROM that contains sample forms, checklists, and worksheets:

Woodward, Cheryl and Lucia Hwang. "Every Nonprofit's Guide to Publishing: Creating Newsletters, Magazines & Websites People Will Read. 1st ed. Berkeley, CA: Nolo Press, 2007. 440 p. ISBN 1-4133-0658-6

Corporate Mergers and Philanthropy

The National Committee for Responsive Philanthropy and the Rockefeller Foundation have released the report "Banking on Philanthropy: Impact of Bank Mergers on Charitable Giving." Contrary to the belief that mergers would have a negative impact on corporate giving, an examination of several bank foundations' 990-PF tax filings from 1983 to 2005 reveals a significant increase in total giving. The report suggests that the growth can be attributed to a greater emphasis on strategic philanthropy by corporations, as well as the work of community advocates calling for regulators and banks to support community needs.

The data also revealed that a majority of bank foundations' tax filings were in violation of certain IRS rules. The report concludes with recommendations for increasing corporate giving as well as suggestions to achieve greater transparency in corporate philanthropy. The banks that were analyzed include Bank of America, JP Morgan Chase, Citicorp, SunTrust, Wachovia, Washington Mutual, and Wells Fargo.

The full text of the report is available at the National Committee for Responsible Philanthropy's web site.

How Funders Can Support Capacity Building

In addition to providing program grants to nonprofits, funders can help organizations achieve their missions more effectively by investing in capacity building projects. The management consulting firm, TCC Group recently released "Deeper Capacity Building for Greater Impact: Designing a Long-Term Initiative to Strengthen a Set of Nonprofit Organizations," a briefing paper supported by a grant from the James Irvine Foundation.

The document covers key decisions that grantmakers must make when developing capacity-building initiatives, including the duration of the initiative, the funder's role, the types of assistance to provide, and others. If you are interested in learning how grantmakers can plan, implement, and evaluate long-term capacity building programs, you can view the full text of the briefing paper at the TCC Group's web site.

Nonprofits Generous With Marketing Benefits

A recent study from sponsorship consulting and research group IEG found that nonprofits often include free marketing benefits in their pitches to corporate donors. These benefits range from special recognition on brochures that other donors do not receive, to rights to carry out cause-marking campaigns. Considering how valuable these marketing opportunities can be for the companies, IEG suggests that nonprofits should be charging extra fees for these perks.

Review the results of the Strategic Philanthropy Study in the latest issue of IEG Sponsorship Report, available at our New York library/learning Center:

"IEG Survey: Most Nonprofits Give Away Valuable Marketing Benefits." IEG Sponsorship Report, vol. 26 (25 June 2007): p. 1, 4-5.

Should More Nonprofits Merge?

Published by the Center for Social Innovation at the Stanford Graduate School of Business, Stanford Social Innovation Review (SSIR) is a key periodical that covers topics such as nonprofit management, social entrepreneurship, corporate social responsibility, and philanthropy.

In the Summer 2007 issue of SSIR, there are three interesting articles on nonprofit mergers:

Go Ahead--Pop the Question: Why More Nonprofits Should Merge"
Kevin T. Kilpatrick, executive vice president of the consulting company Metropolitan Group, explains that there are too many nonprofits competing for scarce resources, a situation that can lead to mission drift as organizations chase funding opportunities.

Before You Say "I do": Why Nonprofits Should Be Wary of Merging
Denise L. Gammal, managing director of the Stanford Project on the Evolution of Nonprofits, explains that nonprofits need to be careful when considering mergers because they often underestimate the time, cost, and effort involved in consolidations.

Uniting for Survival
The case study examines the ways that four Chicago-area cancer support centers collaborated before forming a fifth nonprofit to leverage their resources.

Also in the Summer 2007 issue, Aneel Karnani, associate professor of strategy at the University of Michigan’s Ross School of Business, presents an alternate perspective on microfiance. In Microfinance Misses Its Mark, Karnani suggests that in order to address long-term poverty issues, societies should invest in supporting labor-intensive industries rather than microfinance programs. The full-text of this article is available at the SSIR web site.

Stanford Social Innovation Review is just one of more than 60 periodicals that the Foundation Center library/learning centers subscribes to. Click here to find out about other periodicals in our collection.

2007 Terry McAdam Book Award Winner

In "Momentum: Igniting Social Change in the Connected Age" Allison Fine describes how newer technologies are being used to foster social networks and support activism. The title received this year's Terry McAdam Book Award, which recognizes outstanding books in nonprofit management. The award is sponsored by the Alliance for Nonprofit Mangement and the Chronicle of Philanthropy, and is supported by a grant from the New York Community Trust and the Conrad Hilton Foundation.

Visit the Alliance for Nonprofit Management's Web site to learn about books that received honorable mention or were considered worthy of note.

Michael Seltzer's "Securing Your Organization's Future" was the first Terry McAdam Book Award recipient. Click here to see a list of past award winners.

Book Reviews

Abstracts from the Catalog of Nonprofit Literature condense books down to a few sentences. To get a better sense of the items we collect, you might want to have a look at the Philanthropy News Digest's Off the Shelf feature.

The three most recent book reviews covered:

Transitioning to the Nonprofit Sector: Shifting Your Focus from the Bottom Line to a Better World

The Foundation: A Great American Secret: How Private Wealth Is Changing the World

Creating Change Through Family Philanthropy: The Next Generation

You would definitely want to read "The Foundation: A Great American Secret." It may very well be a classic in nonprofit literature, as noted in the review.

Please let me know where else you can find reviews of books related to the nonprofit sector.

Best Practice Guides for Grantmakers

I can think of two sets of best practice guides that grantmakers should be aware of. The first series, "Practice Matters: The Improving Philanthropy Project" is published online by the Foundation Center and available at no charge from the Center's Web site. The guides discuss best practices in ten areas, including policy commissions, intermediaries, community change, attracting and managing talent, creativity in grantmaking, organizational capacity, communications, partnerships, and evaluation.

Another key series, "Grantcraft: Practical Wisdom for Grantmakers," is published by the Ford Foundation and is also available free online (registration required). Recent guides covered executive transitions and program-related investments. We have just cataloged the new pamphlet "Grantmaking With A Racial Equity Lens" which explains how important it is for funders to be aware of race and ethnicity issues as they develop strategies and polices. Learn more about the series at: http://www.grantcraft.org

New International Grantmaker Directory

For grantseekers interested in funders in the Asia, Chapel & York released this month the first directory of grantmakers for that region. The volume profiles more than 900 grantmakers in 19 Asia Pacific countries: Australia, Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, Tibet and Vietnam. I have added the new publication to the Foundation Center's Topical Resource List: International Directories of Foundations. Please let me know if you hear about new international directories we may be unaware of.


Holly, Karina (ed.). Directory of Asia Pacific Grantmakers. Lingfield, Great Britain: Chapel & York Limited. 2007. 279 p.

Nonprofit Board Videos

I usually write about new books and articles, but it's worth noting that our library has acquired a few good videos for nonprofit boards. On Thursday, June 19th, the Foundation Center will be presenting "Building A Long-Range Plan" at our New York location as part of our Film Series. Board development expert Dan Cain explains how to develop a long-term plan for your organization. He discusses the purpose of planning, who to involve in the process, developing a mission statement, reviewing and tracking the plan, and other topics:

Cain Consulting Group. Building a Long-Range Plan [video recording]. Hawarden, IA: Cain Consulting Group. 2006. 45 minutes.

Pharmaceutical Companies: In-Kind Giving

In an earlier post, we told you about a Foundation Center mini-report on Corporate Foundations that included a note about the increase in product donations. In its one-year anniversary issue, Contribute magazine further explores the growth of in-kind giving by pharmaceutical companies, noting the tax benefits that the firms receive. While many have benefited from the donations, drug quality and oversupply issues remain. The author reminds individual donors to carefully research charities that receive drug donations, suggesting key questions to ask.

Berg, Stacie Z. "Pill-anthropy". Contribute vol. 2 (May-June 2007) p. 29-30.

Contact Contribute to obtain the issue or find it at the Foundation Center Library in New York.

New Tax Structure for Social Enterprises?

The Aspen Institute recently reported ideas and questions raised at a meeting titled "Exploring New Legal Forms and Tax Structures for Social Enterprise Organizations." Many leaders of the business and nonprofit worlds see organizations emerging that combine charitable missions and corporate methods. Issues raised include what model to use for new organizations, how to adapt existing laws to the changing environment, and current efforts in the field:

Billitteri, Thomas J. Mixing Mission and Business: Does Social Enterprise Need a New Legal Approach? Washington, DC: Aspen Institute. 2007. iv, 18 p. Full Text (PDF)

Mission Investing

Did you know that in addition to making grants, foundations can also used financial investments to advance their missions? These investments include market-rate investments, as well as below market-rate investments (such as program-related investments). Learn more from this new report from the FSG consulting group:

Cooch, Sarah; Kramer, Mark. Compounding Impact: Mission Investing by U.S. Foundations. Boston, MA: FSG Social Impact Advisors. 2007. 54 p. Full Text (PDF)

New Foundation Center Report: Corporate Foundations

Giving by corporate foundations rose an estimated 6 percent in 2006 to a record $4.2 billion, according to Key Facts on Corporate Foundations. Increased giving is expected in 2007 as well: 57 percent of those surveyed said they expect to give more again this year. In a separate development, a handful of pharmaceutical manufacturers continued to ramp up their giving through operating foundations, with support from these and other corporate-sponsored operating foundations totaling nearly $3.2 billion in 2005. Full Report (PDF)