Increasing professionalism: the role of trustee companies in philanthropy

Posted: 3 May 2012 | Author: | Filed under: Australia, culture of giving, grantmaker/grantee relationship, grantmaking, philanthropic sector, Philanthropists, Uncategorized | Tags: , , , , , , , , , | 6 Comments »

It has been expressed to me on more than one occasion that philanthropy is becoming too professional. I work in the sector, so I try not to take it personally but I think it is time to pick apart the debate a little. We’ve previously tackled on this blog the delicate balance that good philanthropic grantmaking must attempt to strike: a warm heart and a cold eye. There have been a number of good posts and speeches about the nature of philanthropy and the belief that altruism is unique and embedded within human nature. There are also the economists of this world and other theorists who believe altruism, like all other human behaviours, is incentivised and can be moulded into form.

It appears the nonprofit sector, with the exception of a couple of amateur sporting codes (Gaelic football comes to mind), is the final domain of debate around whether increased professionalism diminishes rather than increases the value of a sector. Does increased professionalism, and the development and employment costs it carries, remove much needed funding from the service coal face, or ultimately help to deliver more while building efficiencies?

With relation to professionalism within philanthropy I hear two main complaints:

  1. There are a lot of people making a lot of money out of spruiking the value of professional organised philanthropy and/or;
  2. Philanthropy has lost its benevolent heart and is no longer organic or enjoyable.  In short, it’s become work rather than play.

The question of philanthropy profiteering is more often than not pointed in one direction – trustee companies. With the enormous growth in private ancillary funds and the governance arrangements they carry there is suddenly money to be made in giving away money. Of the 5,000 or so estimated trusts and foundations in Australia more than half are thought to be held within trustee companies.  These pots of funding are held outside of the public view and are managed and coupled with investment and other financial services. To the cynical, trustee company philanthropy is perceived as tax-break grantmaking and the philanthropic services they offer is viewed as being muddled up with, and merely ancillary to, the bigger bucks of the financial services game.

Equally, those who lament the loss of the benevolent heart of philanthropy are genuinely fearful that philanthropy is the latest victim of fads and bureaucracies that add little value and ultimately deter people from giving. In the world of strategic grantmaking, venture philanthropy, philanhrocapitalism and engaged philanthropy, the concern is that the joy of giving has been lost and with it, potential philanthropists.

It would surprise some detractors perhaps to learn that despite concerns around profiteering and the loss of the joy of philanthropy, it appears that financial advisers and trustee companies might actually be playing an important role in both attracting people to and educating people about philanthropy.  A report from the Queensland University of Technology, Foundations for Giving: why and how Australians structure their philanthropy, documents responses from 40 people involved in structured, formalised philanthropy.  Virtually all respondents indicated that advisers and other intermediaries played some role in their philanthropy and the views expressed were generally positive.  In fact, the negative views expressed by respondents around advisers seems to suggest a greater level of expertise in philanthropy and skills in grantmaking would be preferable.

Philanthropy is and always will be a ‘people’s’ game.  Its about people being inspired by other people.  Its about people trusting and believing in other people.  Most of all it is about people wanting to create better lives and communities for others. It is hard to imagine that the heart of philanthropy will be lost simply through increased professionalism. In fact there is mounting evidence to suggest that the opposite may actually be true. Some of Australia’s trustee companies are driving not only increased professionalism within philanthropy, but also a greater diversity in practices and approaches to grantmaking. Some of our most vocal proponents for greater levels of giving among Australia’s wealthy, increased investment in organizational capacity support and improved engagement and evaluation of grantmaking approaches, are coming from within the trustee company sector. The gags many individual philanthropists are compelled to wear when talking about their philanthropy are less evident within adviser circles.

Good trustee companies will be passionate about their philanthropy and the approaches available to their clients.  Poor trustee companies will see philanthropic services as ancillary, and more than likely will charge a hefty price for the pleasure. As is the case with all services, donors should shop around, the cream of the crop will quickly become evident.

The professionalism that trustee companies bring to client services is beginning to have an impact on philanthropy as it is delivered in Australia.  It’s a diversity that the sector absolutely needs.  More choice for donors and potential philanthropists is important as is greater debate on grantmaking approaches and philosophies.

You can follow the musings of Caitriona Fay via @cat_fay on twitter and the eggs via @3eggphil

2012 Trends in Philanthropy: Data

Posted: 14 February 2012 | Author: | Filed under: Australia, crowd funding, culture of giving, evaluation, grantmaking, NFP, philanthropic sector | Tags: , , , , , , , | Leave a comment »

This is the final installment of our three-piece post examining what 2012 has in store for philanthropy. We’re taking our lead from Lucy Bernholz’s Philanthropy and Social Investing: Blueprint 2012 which notes three big shifts in store for the sector this year. Today we’ll be taking a look at data and it’s role in creating the social good.

Data and the desire to accumulate it tends to fall in and out of fashion in Australian philanthropic circles. Opponents compare the collation with the chains of government bureaucracy or worse still, that overly self-indulgent practice of ‘naval gazing’. On the flip side of the argument you have proponents espousing data as a commodity every bit as important as the currency distributed through grants.

Gone are the days of data being considered simply numbers on a spreadsheet.  The Blueprint paints a wonderful picture of the changing face of data and how we use them:

In reality, anything that can be digitized can become data. This includes items that start out digitally – photos, videos, cell phone calls, text messages, Facebook posts, and blog comments. It also includes things we convert to digital form – books, old newspapers, films, music, and the content of our file cabinets. Once this material is digitized and we can click on it, “like” it on Facebook, or share it via Twitter with friends we create another layer of data.

Data allows for the impact of our philanthropy to be captured, shared and understood in ways like never before. Equally we can better and more quickly measure the campaigns people respond to and as a result help to bring resources and effort to major issues more quickly. As individuals we can donate via text messaging (not as well as we should be able to here in Australia), crowd funding, Twitter, Facebook, online newspapers, and an array of other web tools – all of which leave a trail of giving data behind. We respond and interact with data in today’s world – we are the creators the next role is to become the curators.

So has philanthropy in Australia responded to this changing landscape of data collection and use? In grantmaking philanthropists have long backed data collecting and building in the area of medical research but the sciences have a longer history of utilizing the power of data in their research and storytelling.  For the community sector the sell to philanthropy is much tougher. Research, evaluation and data collection doesn’t excite philanthropists in the same way that getting tangible things done on the ground does.

The community sector is not alone in being under resourced to measure and understand its own impact. The philanthropic sector, which houses huge amounts of data, makes precious little use of any of it. The tide is slowly turning however.  The Centre for Social Impact is undertaking mapping work, led by former Philanthropy Australia CEO – Gina Anderson,  to examine where some of Australia’s major trusts and foundations are making gifts. Research at Queensland University of Technology’s Australian Centre for Philanthropy and Non-profit Studies is exceptional and building, while Swinburne University continues to grow its credentials in this space.  All of these are positive advances but more can be done and is required.

Data is powerful.  It helps us to tell our stories.  To excite and teach us.  Data helps us to build a picture of where we are as a society and where we might be headed.  How we use and interact with data in 2012 has the potential to influence the trends we will be seeing in 2013.  Is Australia’s philanthropic sector ready for this shift?  I have my doubts but there is a slow movement occurring. Let’s revisit at the end of the year.

If you have not already done so, head to the Philanthropy 2173 Blog to get your hands on a copy of the Philanthropy and Social Investing: Blueprint 2012

You can follow the musings of Caitriona Fay on Twitter via @cat_fay or the Blog via @3eggphil

2012 Trends in Philanthropy – Political Advocacy

Posted: 24 January 2012 | Author: | Filed under: Advocacy, Australia, culture of giving, grantmaking, NFP, philanthropic sector, Philanthropists, USA | Tags: , , , , , , , , , | 1 Comment »

As promised this post is going to continue to examine some of the trends for 2012 highlighted in Philanthropy and Social Investment Blueprint 2012 – the annual industry forecast produced by Lucy Bernholz.  In my last post I looked at the first of three major shifts identified in the Blueprint, today I’ll be moving on to trend number two: the implications of the US Supreme Court‘s Citizens United ruling on philanthropy and social investing.

There is no doubt that grantmakers here in Australia have a lot to learn from philanthropy overseas. I am often reminded however that much of how and why we practice philanthropy is unique.  By constantly casting an eye towards North  America and Europe we risk failing to recognise and value the innovation taking place in our own backyard. So what can we here in Australia possibly learn from examining the potential implications of the Citizens United US Supreme Court decision?

Before I address that question in detail, it probably serves to give a quick rundown on what that Supreme Court decision actually amounts to. In short Citizen United removed prior restrictions on spending by corporations on election campaigns; in essence allowing these bodies the similar first amendment rights to free speech as everyday American citizens. These newly available dollars will certainly come into play in 2012, the first presidential election year since the ruling was handed down. Rather than promoting and opposing political candidates or parties directly, much of the funding from corporations is likely to flow via non profit organisations advocating on issues that serve their purpose. It is the implication of that funding process has some interesting cross over with Australia.

Around the same time that Citizens United was taking it’s case to the US Supreme Court, here in Australia an international aid watch dog called Aid/WATCH was taking its fight to hold on to its charitable tax exemptions to the High Court. In Australia, like in the US, the judges ruled in their favour. The decision asserted that Aid/WATCH, as an independent watch-dog examining how aid is distributed, may well be involved in political advocacy.  Because the generation of public debate created by Aid/WATCH through their advocacy focused on the relief of poverty through foreign aid, the Judges ruled that it should not be excluded as a charitable activity. This ruling opened up direct funding of political advocacy by charitable trusts and foundations, ensuring that neither the donor, or the non-profit they were supporting, put their charitable status at risk. The Eggs have posted previously on the new place for advocacy in the Australian non-profit sector, but perhaps we have not explored the potential implications for donors in full.

In an environment more open to political advocacy from our non-profits, what are the potential implications on donors and ultimately donations? In the US, it’s likely that the Citizens United decision will lead to not only more political advocacy from non-profits but also more non-profits being created with a focus on raising money for or against their preferred candidates and issues.  Here in Australia, the likelihood is that we’re gong to see a greater intensity of out and out advocacy.  For some funders, the thought of seeing their long supported charities engaged in the political might be too much to bear.  For other funders it will open up spheres of influence like never before.

I’ve spoken with people on both sides of the advocacy fence, those that find philanthropic support of political advocacy unseemly and those that see it as critical vehicle in mission based philanthropy. Not all philanthropic organisations in Australia believe or want to be mission driven, the warm heart of benevolence for many is still the greatest motivator. There will always be a place for both. I do sense however, that the new wave of youth and online philanthropy in this country will drive a new era of donor funded advocacy.

Should you wish to learn more about the trends in philanthropy and social investment for 2012, I’d encourage you to get your hands on a copy of Blueprint 2012:

  • Hard copies from Lulu
  • PDFs at Scribd
  • Kindle version from Amazon
  • eBook from Smashwords. Also available for Amazon Kindle, B & N Nook and others.

You can follow the musings of Caitriona Fay on Twitter via @cat_fay or the blog via @3eggphil

Blueprint 2012 – Looking at the new social economy

Posted: 18 January 2012 | Author: | Filed under: Advocacy, Australia, grantmaker/grantee relationship, grantmaking, philanthropic sector, Philanthropists, Uncategorized | Tags: , , , , , , , , , | 1 Comment »

Religious readers of this blog (my parents) know that more than once I’ve spruiked the value of Lucy Bernholz’s Philanthropy 2173 blog. It’s a great read for those interested in emerging trends in philanthropy and social investment. Lucy, a self confessed philanthropy-wonk and  visiting scholar at the Stanford University Center on Philanthropy and Civil Society, also publishes a much anticipated annual industry forecast.  I got my hands on a copy of the Philanthropy and Social Investing 2012 Blueprint just before Christmas and it was a great way to both end 2011 and prepare for 2012.

The 2012 Blueprint is ultimately aimed at assisting “donors, investors and enterprise leaders address three big shifts in 2012”.

  1. Finding your way in the new social economy in which philanthropy and impact investing now operate
  2. Considering the implications of the Citizens United decision on philanthropy and social investing
  3. Making sense of data as a public good

On initial reading you’d be forgiven for thinking points 1 and 3 are the only ones that could possibly relate to an Australian context, but interestingly the potential implications of the Citizens United Supreme Court decision in the Unites States provides a couple of ‘ah-ha’ moments around the potential future of Australian philanthropic investments in light of our own High Court’s Aid/WATCH ruling (more on that later). I’m going to explore all three big shifts on this blog a little further over the next week. Today I’ll be taking a peek at the first of the identified big shifts; Finding your way in the new social economy.

One of the big statements of the 2012 Blueprint concerns the need to shift our traditional perspectives on non-profit/donor interactions to a much broader frame that encompasses the multiplicity of ways private resources are today being used for public good. This is a shift to the social economy frame and acknowledges a greater diversity of players, stakeholders and influencers in the resourcing of the ‘public good’. Lucy lists three main ‘galaxies’ as being at play within the social economy: impact investing, political giving, and charitable giving. Here in Australia are we too focused on exploring charitable giving without consideration to the role of those two other galaxies?

It’s fair to say impact investing in Australia is lagging well behind the United States and UK, but 2011 was a big year for the sector (think SEDIF, Hepburn Wind & the NSW Government Social Impact Bonds* announcement). While political giving may not be natural space of play within our system, the Australian High Court’s Aid/WATCH ruling has the potential to change traditional interactions between political parties, donors and non-profits (if donors and non-profits can cope with the cultural change required in this sphere of influence).

In short the interactions between these galaxies within the Australian context are happening at a growing rate and the influence each is expelling on the other needs greater examination.  The 2012 Blueprint helps to explore this beautifully:

Donors today are choosing between and among philanthropy, impact investing and political giving to pursue their goals…the line between the galaxies are clear, other times they are blurry.

As an example, a donor today may choose to pursue their interests in protecting the environment by funding direct landscape restoration & maintenance.  Alternatively they may decide to invest in a community wind farm project or support direct political advocacy with the aim of removing cattle grazing from a national park.

Lucy’s exploration of the social economy and the different galaxy of players has me thinking more and more about who is in the room when conversations about funding and tackling social and environmental problems are actually being had. Are we (donors & doers) actively excluding each other and if so, why? Lucy once again sums it up best:

It is not enough to focus only on philanthropy and nonprofits; rather we need to understand the changing dynamics of the whole economy over time…..The key to our future is accepting that our old assumptions about “which sector does what” may no longer hold.

It’s fair to say that despite opening with a statement on American political giving in the 2012 presidential campaign year, the Blueprint is packed with an enormous amount of content that will be of interest to Australian social investors. For those interested in where the shifts are happening, what the buzzwords of 2012 are likely to be, as well as a prediction on where the social economy is heading, then a copy of the 2012 Blueprint is a must.

You can get your hands on the 2012 Blueprint the following ways:

  • Hard copies from Lulu
  • PDFs at Scribd
  • Kindle version from Amazon
  • eBook from Smashwords. Also available for Amazon Kindle, B & N Nook and others.

*Interestingly Social Impact Bond is on the 2012 Blueprint Buzzword Watch List

 

You can follow the musings of Caitriona on Twitter via @cat_fay or the blog @3eggphil

Verbal reporting… the next step in effective philanthropy?

Posted: 16 January 2012 | Author: | Filed under: evaluation, grantmaker/grantee relationship, grantmaking, NFP, philanthropic sector, Philanthropists | Tags: , , , , , | 9 Comments »

Louise Kuramoto is a Grant Researcher at the Myer Family Company. She works with families, foundation and corporates providing philanthropic research, administration and strategic advice with regard to their philanthropy.

Engaging effectively with grantees is something that many philanthropists and philanthrocrats alike strive to achieve but are we really getting it right? And when I talk of ‘engaging effectively’ I am not talking of post application feedback but rather the day-to-day relationships you hold with your grantees.

So, where do you sit on the spectrum? Think of a program you have funded and ask yourself three questions;

1. Do I have the direct contact details of the person managing or responsible for the program and have I had a conversation with them?

2. Can I explain the program’s three main challenges to achieving its objectives?

3. Am I aware of the program’s progression (or otherwise!) in the last six to twelve months?

For those of you who could not confidently answer ‘yes’ to each of the above questions you may want to give verbal reporting further consideration.

Otherwise known as face-to-face reporting, verbal reporting is a tool that some foundations have been using to varying degrees as a way to truly understand the organisations they fund and the complexities and challenges of the areas in which they work. Foundation staff cite that the reduction of paperwork for both the funded organisation and the philanthropic body is a bonus, but the real benefits of verbal reporting lie in the face-to-face interactions they have with their grantees. It is these face-to-face meetings they state, that have proved to facilitate a more open and honest dialogue between the two parties, consequently enabling the foundation to form a true partnership with its grantees and in turn, yield better results.

The Myer Family Company, in collaboration with The Portland House Foundation, held a forum late last year to explore this topic further, specifically focusing on The Portland House Foundation’s reporting model which encompasses:

  • A high trust, low documentation process;
  • The CEO or leader of the funded organisation committing to attend at least one face-to-face reporting meeting per year (this meeting would also include a number of other funded organisations who verbally report on their projects); and
  • Supplementary documentation (such as financials etc.) is requested as needed.

The organisations represented at the forum also described the verbal reporting process as highly beneficial to their work because it provides a ‘safe’ environment whereby their organisational and project challenges can be offered for discussion and brainstorming with the donor and other attendees. This point is especially pertinent for us philanthropists/crats, who have a tendency to focus on financial giving and at times underestimate the value of the non-financial support we are able to offer. Whether it’s as a sounding board to discuss program design or harnessing the skills, knowledge or networks of board members, the value these links and expertise can leverage is often much more than any monetary figure the donor could provide.

So next time you seek an update on a particular project or receive an application in the mail, think about picking up the phone and organising a meeting with your grantee, it might change your outlook entirely.

You can follow Louise on Twitter @LouKuramoto or the Myer Family Company via @MF_Philanthropy

The LLEAP Survey Report: A conversation starter for education funders

Posted: 8 November 2011 | Author: | Filed under: Australia, culture of giving, evaluation, grantmaker/grantee relationship, grantmaking, NFP, philanthropic sector, Uncategorized | Tags: , , , , , , , , | 3 Comments »

It was exciting yesterday to see the release of the 2011 Survey Report for the Leading Learning in Education and Philanthropy (LLEAP) research study. The Report documents the responses to the inaugural LLEAP survey provided by 300 schools, non-profits and philanthropic bodies working in the education space.

The release of the Report marks the first real milestone for the LLEAP team and everyone involved in shaping the research program. Those organisations and individuals who have given their time generously to be involved in the interview phase, focus groups and in the completion of the survey have done so out of a commitment to finding better ways to work towards improving educational outcomes.

The LLEAP research is the first of its kind in Australia to bring together schools, non-profits and trusts & foundations to examine the role and impact of philanthropy in education.

For me, one of the more eye-opening aspects of the Report relates to the number of disconnects in priorities and target audiences among respondent schools, non-profits and philanthropic organisations. This is perhaps best demonstrated by schools clearly ranking teachers and teacher quality highly in terms of need for support and yet this need is not reflected in the highest priorities of philanthropic and non-profit respondents.

There are three main themes to come out of the Report with respect to the barriers faced by schools, non-profits and philanthropy.  For schools, it’s that their capacity to find and access philanthropic dollars is poor. For non-profits, the issue of short term funding and program sustainability is hindering their capacity to be as effective as they could be. For philanthropy the barriers are what the report refers to as “knowledge issues” (specifically the who, how and why of collaboration and best practice).

The great thing about the Survey Report is that it is a conversation starter.  The survey results are simply that; survey results. How we use and interpret the results however can potentially influence our practices and decision making. We’ll be exploring some of the issues the Report has thrown up on this blog in the coming weeks and would love you to join in the on the conversation.

Caitriona Fay is a member of the LLEAP Project Team. You can follow her musings on Twitter via @cat_fay and get the latest from the Eggs via @3eggphil

More than money

Posted: 14 October 2011 | Author: | Filed under: grantmaker/grantee relationship, grantmaking, NFP, philanthropic sector, Uncategorized | Tags: , , , , , , , , , | Leave a comment »

Each year since 2009 The Myer Foundation has offered a six month internship to a graduate of the  Centre for Philanthropy and Nonprofit Studies (CPNS) at Queensland University of Technology. The internship provides an opportunity for the graduate to get their hands dirty at one of Australia’s largest family philanthropic foundations. While learning the ropes, the intern is also expected to undertake a piece of research that examines contemporary issues in philanthropy and the nonprofit sector.  The result is an experience that is valuable for the intern and the broader philanthropric and Not For Profit (NFP) sector alike (check out some posts from 2010 Myer Intern, David Hardie, on this blog).

The Myer Internship Program is a form of value-add philanthropy.  It’s no wonder then that the 2011 Myer Intern, Lesley Harris, decided to focus her research piece on what other value-add activities philanthropy in Australia was undertaking. Her report, An Exploration of Non-Grantmaking Activities in Philanthropy, explores the activities philanthropic organisations in Australia are currently undertaking beyond the provision of grants. There is a surprisingly diverse range of capacity building, policy and practical support currently being offered to NFPs by trusts and foundations.

While Lesley has been pulling together her report, counterparts in the UK have been doing the same. There, a group of funders commissioned some research around what the sector in the UK refers to as Philanthropy-Plus activities. The report, called Beyond Money: A study of funding plus in the UK, makes for fascinating reading. It captures the pros and cons of funders taking on a more engaged and hands-on approach with their grantees.

On the surface you might think funders bringing more than cash to the table is a good thing.  Great funders can help their grantees leverage extra dollars, negotiate policy outcomes and collaborate and connect like-minded organisations. This approach is best harnessed by those trusts and foundations who, rather than seeing themselves as being outside the NFP sector, consider themselves as a mission driven piece of its complex tapestry.

There are however important considerations for philanthropy to make before jumping into this ‘more than money’ approach. Equally, NFPs who are offered more than grants by funders need enter into the arrangement with their eyes wide open.

The UK study into philanthropy-plus activities lists capacity building as one of the primary activities undertaken by grantmakers beyond their financial contributions. I’ve previously posted about the challenge funders face when trying to support capacity building in a way that respects the power-dynamic that naturally exists between grantor and grantee. There can be just a subtle difference between a funder enabling and a funder encroaching on the work of their grantee. Being aware of the existence of that power-dynamic is important. Being respectful of it is essential.

It’s important that funders remember the diversity of grantee organisations they are working with. Not all will want, or have the time, energy or need, for the non-grantmaking support the funder can bring to the table. A standardised approach to non-grantmaking activities can be counter productive and result in poor outcomes.  The authors of the UK philanthropy-plus research encourage a bespoke approach that recognizes the different needs and resource requirements of each grantee .

The ultimate challenge for those funders wishing to add non-grantmaking activities to their service provision is the ability to recognise their own strengths and weaknesses.  Further, it is essential that the funder has a clear understanding of why they want to engage in non-grantmaking activities and what value it will bring.  If you are going to do it, then know why and, while you’re at it, measure whether or not you are having the intended impact.

This engaged approach can be resource intensive, it’s important therefore to be sure that you are adding value. When measuring, be realistic, the delicate power dynamic means sometimes your grantees won’t feel like they can say no to the extra support you are offering.  You’ll need to provide mechanisms for anonymous feedback and empower your grantees to be honest.  Better yet, resource the evaluation so a third party can ask the difficult questions.

Done well and with purpose, these non-grantmaking contributions can be incredibly valuable.  Done poorly, they can be harmful and deflating for all involved. The funders of the UK report into philanthropy-plus activities perhaps best sum it up in their foreword to the report:

Our work is our work. Their work is their work.
Our joint achievements are joint achievements. Our job
is to enable where we can and stand back, except where
we bring things to the table which only we can. Where
that is money, it should be given without expectation of glory.

Sara Llewellin, Barrow Cadbury Trust;  Sioned Churchill, Trust for London; Andrew Cooper, The Diana, Princess of Wales Memorial Fund

You can follow the musings of Caitriona Fay on Twitter via @cat_fay or the the Eggs @3eggphil

Prevention at the expense of the cure

Posted: 29 September 2011 | Author: | Filed under: culture of giving, disadvantage, grantmaking, philanthropic sector, Philanthropists, Transparency | Tags: , , , , , , , | 1 Comment »

Let’s face it, these days it’s simply not in vogue to be considered a philanthropist (or philanthrocrat) driven by a spirit of benevolence.  We have entered the era of the venture philanthropists, the philanthrocapitalists, the tactical philanthropists.  In philanthropy, strategy is now the name of the game. Philanthropists and their foundations are finding smarter ways to give and more innovative ways of funding for impact. If this group of strategy driven philanthropists had a mantra it would likely be prevention, prevention, prevention. But when everyone wants to be the funder helping to build the fence at the top of the cliff,  what does that mean for those people who need the ambulance at the bottom of it?

The philanthropic sector in Australia is racing towards a new level of maturity.  It’s vastly more professional than it was as little as five years ago. But professionalism has led to a recognition that supporting prevention and mitigation programs offers greater bang for the funder’s buck.  There is no disputing the fact that prevention is less costly than the cure. However, if we as a sector are encouraging a greater focus on prevention, perhaps it’s important to stop for a moment and consider at what cost?

Photographer : Cybele

I’m fortunate enough to work for a foundation that has the capacity and the inclination to fund across the grantmaking spectrum. Funding programs that seek to mitigate against homelessness are great, but there is still a desire at Board level to make sure issues of food security and the need for refuge are also addressed. For some, funding the ambulance at the expense of the fence might appear counter-productive but we’ll always need the balance.

I wrote recently about the growing recognition that great philanthropists can balance the head and the heart. Perhaps the reality is that the benevolent urge to help those in need is the heart of funding. Trying to make progress on the problems and difficulties (a great post here on the difference) that affect our communities is more a challenge for the head.

I remember reading once that Bill Gates sat his young daughter down and tried to explain to her the work the Gates Foundation was doing to find a vaccine for malaria. As they flicked through pictures of the devastation caused to those individuals already struck down she asked ‘who is helping them?’.  It was a reminder to Gates, and should be to all of us, not to forget those with immediate and real need for support. It’s important that we don’t leave behind those organisations working at the bottom of the cliff for the sake of increased bang for the buck.

For some funders, prevention is the best way to give within their limited resources.  For others, their philanthropy will be driven by a desire to address the need they see every day. I don’t ever think we’ll get to a stage where all funders are focusing prevention at the expense of the  ‘cure’. We do however, need to be careful not to dismiss programs and organisations working to provide immediate support,as having no place in strategy driven philanthropy.

As a sector, philanthropy needs to be more introspective.  Perhaps it’s time to shift our focus from funding where government can’t or won’t and start looking more closely at where the philanthropic gaps are. That requires new levels of collaboration and a transparency around our foundation missions and objectives.  If we can get the balance right and find a way to solve problems and service our society’s greatest difficulties, then as a sector we will be more impactful.

You can connect with Caitriona Fay on Twitter via @cat_fay or any of the eggs via @3eggphil.  

It’s Follow Friday (#ff)!

Posted: 22 July 2011 | Author: | Filed under: Australia, philanthropic sector, Philanthropists, Transparency, Uncategorized | Tags: , , | 2 Comments »

Happy Follow Friday! Don’t know what Follow Friday is?  Well, it’s Twitter speak for these people are worth listening to.  Every Friday, tweeps (slang for people who use Twitter) share the list of people they think are worth following by using the hash tag #ff.

If you’re in the philanthropy game and are wondering why you’d even bother getting into Twitter, it’s worth checking out Lucy Bernholz’s (@p2173) blog Why Would A Foundation Tweet. Her advice is pretty simple, Twitter is a great listening tool.  When you start to get your Twitter legs you’ll begin to find it’s a great way to network, connect, share and talk with an incredibly diverse (and impressive) group of people.

So here’s a #ff list for those new to Twitter and for those interested in philanthropy

Influential Philanthropy Tweeps

#1 @Philanthropy – The Chronicle of Philanthropy is a must follow and considered one of the most ‘influential’ (there is a way of measuring that) philanthropy tweeps in the twitterverse

#2 @Kanter – Beth Kanter is the doyenne of all things social media and nonprofit

#3 @p2173 – Lucy Bernholz is fab, follow her on Twitter and follow her blog

#4 @phijo – The Philanthropy Journal online is a great source of nonprofit and philanthropy news

#5 @Newphilanthropy – From the best of the US to the best of the UK, I really enjoy the work of New Philanthropy Capital

#6 @Alliancemag – it’s the leading global magazine on philanthropy and social investment and definitely one to follow on Twitter

#7 @philaction – Another great news source for international philanthropy

#8 @tactphil – best way to follow Sean Stannard-Stockton, the man behind Tactical Philanthropy Advisors

#9 @philanthropy411 – Great philanthropy blog and if you follow this link you’ll find a some great resources on who else to follow on Twitter from philanthropy

#10 @fndcentre – The Foundation Centre, I absolutely love the work of this group, supporting trusts and foundations since the 1950′s, they are a great source of information, thinking and strategies for people who give.

There’s a significant international philanthropic presence on Twitter and there has been for a good couple of years now. Nonprofit organisations are embracing social media in Australia and while philanthropy has been a little slower, its fair to say the Aussie philanthropy contingent has been growing rapidly over the past 12 months.

So let’s get started on a list of the Aussie philanthropy tweeps we all should be following, connecting with, talking with and listen to.  I’ll kick us off, but I’d love to hear from, and of, those Aussie philanthrocrats who are tweeting their stuff

@PhilanthropyAus

@Thomstac

@jonmeyer

@CPNSinsides

@moutou

@VanessaMeachen

@ChristopherSWIN

@InnerNorthCF

@LBA412

@Absherd

@Grant_Hooper

@awesomemelb

@Myer_Foundation

@Artsupport

@AusPhilanthropy

 

@sharonnagoanna

@strategicgrants

@SciPhilanthropy

@stevenhlynch

@Artfuljohn

@mrgregjohnson

@AEMGartmann

And of course there’s the contributors of this site @ClaireMRmmer, @3Eggphil, @Debmorgan22 and me, @cat_fay. Share with us the tweeps you know that are talking about philanthropy on Twitter by leaving a comment. It will make the beginnings of a great resource.

Keep in mind that the above list is just those people who do a lot of talking on the why’s and how’s of philanthropy in Australia. Not included in that list are the wonderful nonprofits many philanthropics support across Australia.  Twitter is a wonderful tool for staying connected to those organisations.

If you still need to be convinced about social media and it’s value then watch the following 2min video:

So if you’re now convinced that it’s time to set up your Twitter account, check out this great infographic from @Partyaficionado.

I look forward to seeing you out in the twitterverse.

What’s innovation anyway?

Posted: 12 July 2011 | Author: | Filed under: NFP, philanthropic sector, Uncategorized | Tags: , , , , | 7 Comments »

I’m not embarrassed to say that much of my twenties was spent jumping from high-horse to high-horse. I had views on everything and felt that it was incumbent on me to share those views with any poor soul who would listen.  More often than not, like many twenty-somethings, what I lacked in eloquent reasoning I made up for in passionate rhetoric. Unfortunately, as well meaning as I was (and am) I was occasionally guilty of sweeping statements, the kind of which I had no real right to make.  I recall one occasion being in conversation with the eminent historian Professor Geoffrey Blainey, where I suggested to him my belief that the world had never faced an issue as critical or important as climate change.  He warmly, and without the slightest hint of denigration, suggested there were very few things the world had not faced before. It wasn’t that he disagreed with my views on the importance of action on climate change (I can’t actually speak to what his views are on that), it was simply my use of sweeping sentiments that he wanted to highlight.

There are a few years between me and my twenties now and my passionate youthfulness battles daily with my maturing sense of cynicism at the world around me. I’m still prone to jockeying my way on to the occasional high-horse or two but I have mastered the art of picking my battles much more carefully. All the while the words of Professor Blainey have manifested themselves into my thinking about philanthropy and specifically into the philanthropic obsession in Australia with ‘innovation’. Could it be the sector suffers from the same passion filled rhetoric that afflicted me in my twenties?

I was recently speaking with Stacey Thomas, from Myer Family Philanthropic Services.  She runs a weekly philanthropy popquiz that poses some of the questions facing philanthropy in Australia (you can follow Stacey and the quiz on twitter @thomstac). Stacey and I were having a chat over the meaning of ‘innovation’ and what it looks like in program or project form when philanthropy is asked to fund it.  Stacey kindly agreed to make the idea of innovation the focus of her popquiz in the week just gone and she increased her altruistic credentials further by sharing the results with me.

As I was reading over the comments left by the 29 respondents to the quiz there was one statement that caught my attention, I am always reminded that the innovation of contemporary dance is firmly rooted in classical ballet. For me this statement sums up some of my concerns with the philanthropic approach of supporting ‘innovative’ programs only. What actually constitutes innovation?  Is it something entirely new that’s never been seen before (which, as Professor Blainey alerted me to, is very hard to find)?  Or do we accept that innovation is more regularly built on the back of the work of many others. Is innovation a successful program that has worked in Fitzroy, rolled out in Sunshine?  In other words, how much innovation is enough?

My view?  Well it’s my position that innovation shouldn’t simply = new. If philanthropy wants to support innovation, then it should be the NFP sector and broader community that is dictating what that looks like.  If a community genuinely identifies that a well established program is the answer to its needs, then perhaps that should be innovation enough?

While I do believe philanthropy should be a little more flexible with what it defines as ‘innovative’, there will always be that passionate part of me that holds out hope for that one ‘thing’ that solves some of our most pressing problems.  It is important that philanthropy helps to keep the fires of creativity burning among our the leaders, thinkers and doers of our community. Just because the task appears impossible does not mean that it is.

The Innovation point is the pivotal moment when talented and motivated people see the opportunity to act on their ideas and dreams

- W. Arthur Porter

Everything that can be invented, has been invented

- Charles H. Duell, Director of US Patent Office 1899

You can follow the musing of Caitriona Fay on Twitter @cat_fay and the blog @3eggphil

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