Measuring who Benefits from Philanthropy
posted on: Friday, June 26, 2009
By Julia Craig
A new report from The Philanthropy Collaborative, a Washington-based coalition of nonprofit and local government officials, estimates that 68 percent of health-related grant dollars from 2005 to 2007 was designated for “minorities, the economically disadvantaged, and other underserved groups.” This translates into $5.5 billion of institutional grantmaking funds over the three year period. The report’s author, Phillip L. Swagel, PhD, wrote: “One can only conclude from these findings that foundations have played the role expected of them in supporting those in our society who need the most help – and have done so in a financially significant way.”
Broad Benefits: Health-Related Giving by Private and Community Foundations examined both Foundation Center data on intended beneficiaries for health-related grantmaking and conducted additional analysis of a sample of 200 grants that were coded as health-related but not as intended to benefit marginalized groups.* The report found that 31.4 percent of grant dollars could be explicitly categorized as benefitting those with the least wealth and opportunity. Further, 53.4 percent of the foundation dollars from the additional 200 grants analyzed counted as benefiting such groups. Swagel extrapolated this to conclude that 53.4 percent of all grants not designated for marginalized communities could in fact be categorized as such. (68.6 percent of total health-related grant dollars). Hence, the 68 percent figure: 31.4 + (0.534 x 68.6).
The difficulty of relying on data from the Foundation Center’s sample and the (often inconsistent) 990PF form is one that researchers in the philanthropic sector know well. As Swagel showed, it is possible that some grants not previously marked as benefitting specific populations are in fact intended as such. By focusing on health-related grants – the largest category of giving according to the report – Swagel was able to dig deeper into the data. He also discussed the challenge of coding, even within his own sample of 200 unspecified grants.
Swagel explained his process using the example of a $74,929 grant from the Cleveland Foundation to Catholic Community Care. While the grant was initially categorized as benefiting the elderly, Swagel determined that based on Catholic Community Care’s mission and the demographics of the Cleveland area population, 40.5 percent of the grant could be designated as benefiting minorities and the economically disadvantaged. This example further highlights the difficulty of determining what “counts” when it comes to grantmaking for marginalized communities. An illustrative estimate seems to be the best possible outcome rather than a definitive number.
If you are familiar with NCRP’s work, you are probably asking yourself: If Swagel found that over 2/3 of health-related grant dollars are intended to benefit marginalized groups, why did NCRP write in Criteria for Philanthropy at its Best that just one in three grant dollars (or 33 percent) across all categories can be designated as such? Swagel posited the 2/3 figure only after conducting additional research on his 200 grant sample; the Foundation Center data initially categorized 31.4 percent of health-related grant dollars as benefiting underserved populations.
Swagel concluded that his findings highlight the importance of his grant-by-grant analysis. I agree: the deeper the researcher is able to dig to find answers, the better. However, the results remain illustrative, particularly given the subjectivity of the process of evaluating the additional grants. This study contributes to the ongoing discussion in the field about who benefits from philanthropy, why this is a crucial question for grantmakers to be asking themselves, the challenges of measuring intended beneficiaries and the need to improve reporting and data gathering.
Previous posts by Niki Jagpal, Kevin Laskowski, and me have discussed the importance of “targeted universalism” – essentially the reason why understanding who benefits from philanthropy matters. Targeted universalism holds that in order for society as a whole to improve, there must be a specific focus on those with the least wealth and opportunity. This is in contrast to a “trickle-down” approach, or one that assumes benefits will reach those at the bottom if applied to the general public. Further, by addressing the needs of those with the least wealth and opportunity, targeted universalism provides benefits to all people. Funders should ensure their grants are reaching those on the margins; in Criteria we call for 50 percent of grant dollars to be designated this way.
*The TPC report cites 11 constituencies per available Foundation Center data: racial and ethnic minorities; the economically disadvantaged; people with disabilities; victims of crime or abuse; people with terminal illness; people with AIDS; immigrants and refugees; lesbians, gays, bisexuals, transgendered individuals; ex-offenders and current offenders; substance abusers and; single parents. NCRP utilized nearly identical categories in its analysis for Criteria.Labels: marginalized communities, Philanthropy at Its Best, targeted universalism
A new report from The Philanthropy Collaborative, a Washington-based coalition of nonprofit and local government officials, estimates that 68 percent of health-related grant dollars from 2005 to 2007 was designated for “minorities, the economically disadvantaged, and other underserved groups.” This translates into $5.5 billion of institutional grantmaking funds over the three year period. The report’s author, Phillip L. Swagel, PhD, wrote: “One can only conclude from these findings that foundations have played the role expected of them in supporting those in our society who need the most help – and have done so in a financially significant way.”
Broad Benefits: Health-Related Giving by Private and Community Foundations examined both Foundation Center data on intended beneficiaries for health-related grantmaking and conducted additional analysis of a sample of 200 grants that were coded as health-related but not as intended to benefit marginalized groups.* The report found that 31.4 percent of grant dollars could be explicitly categorized as benefitting those with the least wealth and opportunity. Further, 53.4 percent of the foundation dollars from the additional 200 grants analyzed counted as benefiting such groups. Swagel extrapolated this to conclude that 53.4 percent of all grants not designated for marginalized communities could in fact be categorized as such. (68.6 percent of total health-related grant dollars). Hence, the 68 percent figure: 31.4 + (0.534 x 68.6).
The difficulty of relying on data from the Foundation Center’s sample and the (often inconsistent) 990PF form is one that researchers in the philanthropic sector know well. As Swagel showed, it is possible that some grants not previously marked as benefitting specific populations are in fact intended as such. By focusing on health-related grants – the largest category of giving according to the report – Swagel was able to dig deeper into the data. He also discussed the challenge of coding, even within his own sample of 200 unspecified grants.
Swagel explained his process using the example of a $74,929 grant from the Cleveland Foundation to Catholic Community Care. While the grant was initially categorized as benefiting the elderly, Swagel determined that based on Catholic Community Care’s mission and the demographics of the Cleveland area population, 40.5 percent of the grant could be designated as benefiting minorities and the economically disadvantaged. This example further highlights the difficulty of determining what “counts” when it comes to grantmaking for marginalized communities. An illustrative estimate seems to be the best possible outcome rather than a definitive number.
If you are familiar with NCRP’s work, you are probably asking yourself: If Swagel found that over 2/3 of health-related grant dollars are intended to benefit marginalized groups, why did NCRP write in Criteria for Philanthropy at its Best that just one in three grant dollars (or 33 percent) across all categories can be designated as such? Swagel posited the 2/3 figure only after conducting additional research on his 200 grant sample; the Foundation Center data initially categorized 31.4 percent of health-related grant dollars as benefiting underserved populations.
Swagel concluded that his findings highlight the importance of his grant-by-grant analysis. I agree: the deeper the researcher is able to dig to find answers, the better. However, the results remain illustrative, particularly given the subjectivity of the process of evaluating the additional grants. This study contributes to the ongoing discussion in the field about who benefits from philanthropy, why this is a crucial question for grantmakers to be asking themselves, the challenges of measuring intended beneficiaries and the need to improve reporting and data gathering.
Previous posts by Niki Jagpal, Kevin Laskowski, and me have discussed the importance of “targeted universalism” – essentially the reason why understanding who benefits from philanthropy matters. Targeted universalism holds that in order for society as a whole to improve, there must be a specific focus on those with the least wealth and opportunity. This is in contrast to a “trickle-down” approach, or one that assumes benefits will reach those at the bottom if applied to the general public. Further, by addressing the needs of those with the least wealth and opportunity, targeted universalism provides benefits to all people. Funders should ensure their grants are reaching those on the margins; in Criteria we call for 50 percent of grant dollars to be designated this way.
*The TPC report cites 11 constituencies per available Foundation Center data: racial and ethnic minorities; the economically disadvantaged; people with disabilities; victims of crime or abuse; people with terminal illness; people with AIDS; immigrants and refugees; lesbians, gays, bisexuals, transgendered individuals; ex-offenders and current offenders; substance abusers and; single parents. NCRP utilized nearly identical categories in its analysis for Criteria.
Labels: marginalized communities, Philanthropy at Its Best, targeted universalism
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