Being Grounded in Philanthropy

Navigating Legal and Ethical Issues

Making Sound Funding Recommendations

Communicating Funding Recommendations and Decisions

Managing Your Grant Portfolio

Maximizing Grant Impact

Strategies for Professional Excellence and Personal Satisfaction

WELCOME TO

Being Grounded in Philanthropy

3

Faculty – Being Grounded in Philanthropy

SESSION 1:Being Grounded in Philanthropy

Meet the Faculty

Insert Picture Here

Maggie Gunther OsbornVice-President

Florida Philanthropic Network

4SESSION 1:Being Grounded in Philanthropy

Session Goals (P. 1)

This session will prepare you to…• Function with awareness of the macro context of field• Benefit from others’ experiences and knowledge of

philanthropy

…by helping you understand:• The role of philanthropy in society • Key events in the development of philanthropy• The infrastructure that supports philanthropy• Current issues and debates about philanthropy

5SESSION 1:Being Grounded in Philanthropy

Session Agenda

• Introduction and icebreaker

• Definition and types of grantmaking entities

• Size and scope of philanthropy

• Critical events in organized philanthropy

• The role of philanthropy in society

6SESSION 1:Being Grounded in Philanthropy

Exercise: Philanthropy Bingo (P. 2)

• Move around, talk to others, and fill in the cells. (You may use the same person’s name in multiple cells.)

• Try to be the first person to complete one full line (vertical, horizontal, or diagonal).

• Yell “BINGO” when you fill in one full line!

7SESSION 1:Being Grounded in Philanthropy

A Foundation Is… (P. 3)

• An entity established as a 501(c)(3) or charitable trust

• Principal purpose is to make grants to unrelated organizations, institutions, or individuals

• For scientific, educational, cultural, religious, or other charitable purposes

8SESSION 1:Being Grounded in Philanthropy

Types of Grantmaking Entities (P. 6)

• Foundations:Private. Funded mostly by one donor or family:

Corporate Family Independent (grantmaking or operating)

Public. Funded by many sources: Community foundations Funds serving certain population groups or issues, e.g.,

women’s or health funds

• Other: Corporate giving programs, trusts

9SESSION 1:Being Grounded in Philanthropy

Philanthropy Facts

(Source: The Foundation Center – 2011) (Page 8) • 76,545 foundations in the United States

• Over 72% are unstaffed

• 63.2 percent have under $1 million in assets

• $590.2 billion in assets, $45.7 billion in grants

• 89% are private, grantmaking

• Philanthropy: 13% of charitable giving

• Five states hold 49% of assets. Which ones?

10SESSION 1:Being Grounded in Philanthropy

Figure 1. Non-Operating Foundations Make Up the Majority of the 76,545 Foundations (Source: The Foundation Center – 2011)

1.0%

3.6%

5.9%

89.6%

Private “non-operating” (68,508) 89.6%

Operating (4,567) 5.9%

Corporate (2,733) 3.6%

Community (737) 1.0%

11SESSION 1:Being Grounded in Philanthropy

Number/Size of U.S. Foundations (P. 7) (Source: The Foundation Center – 2011)

ASSETS

$1b or larger

250m–1b

50m–250m

10m–50m

1m–10m

Under 1m

NUMBER

60

200

1,245

4,558

22,101

48,381

PERCENT

0.1

0.3

1.60

6.00

28.90

63.20

12SESSION 1:Being Grounded in Philanthropy

Figure 2. Private Non-Operating Foundations Do Most of the $45.7 Billion in Total Giving (Source: The Foundation Center – 2011)

9.0%

10.3%

7.4% 71.1%

Private “non-operating” ($32.8 billion) 72%

Operating ($4.2 billion) 9%

Corporate ($4.7 billion) 10%

Community (4.2 billion) 9%

13SESSION 1:Being Grounded in Philanthropy

Figure 3. Health and Education Receive the Most Grant Dollars (Source: The Foundation Center – 2011)

11.8%

5.5%

13.1%

23.3%

Arts/Culture 10.5%

Education 23.3%

Environment/Animals

7.4%

Health 22.4%

Human Service 13.1%

International Affairs 5.5%

Public Affairs 11.8%

Science/Technology 2.6%

Social Science 0.9%

Religion 2.0%

10.5

7.4%

22.4%

2.6%0.9%

2.0%

14SESSION 1:Being Grounded in Philanthropy

Exercise: History of Organized PhilanthropyWrite your name, position, foundation’s name, location, and year founded on the 8.5’ x 11’ paper with marker.

If you are not sure of the founding year, guess.

If you do not currently work for a foundation, use the organization you most recently worked or volunteered for.

15SESSION 1:Being Grounded in Philanthropy

Exercise: History of Organized Philanthropy• Create a “human timeline” by standing chronologically

by the founding date of your foundation.

• Bring your paper with you. Hold it up.

16SESSION 1:Being Grounded in Philanthropy

Number of Foundations Established by

Decade (P. 11)

(Source: The Foundation Center – 2011) YEAR ESTABLISHED

Pre-1900-19191920–19391940–19591960–1969 1970–19791980–19891990–19992000–2009

Data limited to 32,131 grantmaking foundations with at least $1 million in assets or making grants of $100,000 or more in 2008-2009. *Data incomplete for the period 2000–2009.

NUMBER

205356

2,5371,8571,2674,471

10,143*8,602

17SESSION 1:Being Grounded in Philanthropy

Key Events: Growth of Philanthropy (Pages 10-11)

1910–30: First private/community foundations

1930–50: Corporate giving tax incentives

1950–70: GE Fund matches employee contributions;United Negro Appeal founded

1970–90: Growth of philanthropic infrastructureorganizations, social venture philanthropy

1990–present: Corporate: Gates, Buffet, Google;identity-based philanthropic groups

18SESSION 1:Being Grounded in Philanthropy

Growth of Diversity in Philanthropy (P. 14)

1960 Combined Jewish Philanthropies 1971 21 Century Foundation; Association of Black

FoundationExecutives

1980 First Nations Development Institute1982 Funders for Lesbian and Gay issues1984 Hispanics in Philanthropy; Seventh Generation Fund

for Indian Development (1984)1985 Women’s Funding Network, Hopi Foundation1989 Latino Community Foundation1990 Asian Americans/Pacific Islanders in Philanthropy,

Native Americans in Philanthropy, Disability Funders Network, Asian Pacific Community Fund of Southern California

19SESSION 1:Being Grounded in Philanthropy

Summary: Themes in Evolution of Philanthropy• Expansion – of foundations

• Regulation – Tax Act of 1969

• Diversification – types of foundations, giving circles, identity-based giving

• Infrastructure – 50 affinity groups, national and regional associations, academic centers, consultants

20SESSION 1:Being Grounded in Philanthropy

Role of Philanthropy in Society (Pages 17-19)

• Are foundations unfairly privileged? Should they be more accountable? How and to whom?

• Is organized philanthropy making a difference?

• What is the impact of the Gates Foundation – a mega foundation – on the face of philanthropy?

• Are foundations at the pinnacle of their growth and contribution? Will they decline in prominence in the future?

21SESSION 1:Being Grounded in Philanthropy

Reflections

• Has anything surprised you about philanthropy’s past or present? What did you learn?

• Where do you think that philanthropy is headed?

• Welcome to the field. You are a part of its future.