Will the Council on Foundations revise its letter to members? Weigh in!
posted on: Monday, November 03, 2008
By Niki Jagpal
On October 10th, the Council on Foundations posted an open letter to its members outlining three recommendations for grantmakers impacted by the global “challenges of our times.” Authored by Ralph Smith, Chair of the Board, and Steve Gunderson, the Council’s President and CEO, the letter acknowledges that “even if fully implemented, these three recommendations do not constitute a sufficient response.” The Nonprofit Quarterly offers excellent insight into the deficiencies of the recommendations and suggests an alternative approach that would help foundations take the right steps towards making their response more sufficient.
Nonprofit Quarterly speaks to many of NCRP’s longstanding core beliefs and underscores the vital role that civil society in the United States must play in supplementing government efforts to address the current global economic crisis. Now is not the time for foundations to pull back funds. Instead, it’s time for them to maximize the impact of their payout requirements, which economic turmoil isn’t going to exempt them from. The nonprofit sector must continue to receive foundation funds if grantmakers want to keep their tax-exempt status.
As noted by the Quarterly, now is the time for increase in overall grantmaking, core support grants, program-related and mission-related investments, support for nonprofit advocacy, and commitment to the nonprofit sector. Now is the time for foundations to acknowledge their reliance on their grantees to carry out their charitable purpose and help the U.S. and the world recover from this global crisis. The Quarterly wants to hear from us all – take a minute to read their excellent letter and join the discussion.
Share your ideas on how foundations can be more responsive to the needs of lower-income and other marginalized communities through support of those nonprofits that serve these groups, especially in tough economic times.
Niki Jagpal is research director of the National Committee for Responsive Philanthropy.
Labels: Best Practices, core operating support, Foundations supporting advocacy and organizing, Mission-related investing, Payout, Philanthropy's role in society
On October 10th, the Council on Foundations posted an open letter to its members outlining three recommendations for grantmakers impacted by the global “challenges of our times.” Authored by Ralph Smith, Chair of the Board, and Steve Gunderson, the Council’s President and CEO, the letter acknowledges that “even if fully implemented, these three recommendations do not constitute a sufficient response.” The Nonprofit Quarterly offers excellent insight into the deficiencies of the recommendations and suggests an alternative approach that would help foundations take the right steps towards making their response more sufficient.
Nonprofit Quarterly speaks to many of NCRP’s longstanding core beliefs and underscores the vital role that civil society in the United States must play in supplementing government efforts to address the current global economic crisis. Now is not the time for foundations to pull back funds. Instead, it’s time for them to maximize the impact of their payout requirements, which economic turmoil isn’t going to exempt them from. The nonprofit sector must continue to receive foundation funds if grantmakers want to keep their tax-exempt status.
As noted by the Quarterly, now is the time for increase in overall grantmaking, core support grants, program-related and mission-related investments, support for nonprofit advocacy, and commitment to the nonprofit sector. Now is the time for foundations to acknowledge their reliance on their grantees to carry out their charitable purpose and help the U.S. and the world recover from this global crisis. The Quarterly wants to hear from us all – take a minute to read their excellent letter and join the discussion.
Share your ideas on how foundations can be more responsive to the needs of lower-income and other marginalized communities through support of those nonprofits that serve these groups, especially in tough economic times.
Niki Jagpal is research director of the National Committee for Responsive Philanthropy.
Labels: Best Practices, core operating support, Foundations supporting advocacy and organizing, Mission-related investing, Payout, Philanthropy's role in society
posted by NCRP at
11:04 AM
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Northern California Grantmakers and NYRAG Report Takes On Foundation Payout
posted on: Monday, October 22, 2007
The question of foundation payout remains to be a highly contested issue in philanthropy. The minimum annual payout requirement under U.S. laws is 5 percent of foundation assets, and this amount can include both foundation grants and administrative costs. For over a decade, NCRP has been calling for a 6 percent all-grants minimum payout (see Recommendations for Reform of the United States Philanthropic Sector).
The Northern California Grantmakers and the New York Regional Association of Grantmakers adds to the dialogue with their recent report Beyond Five Percent: The New Foundation Payout Menu. The report looks at 13 foundations, each with assets sizes ranging from a few million to several billion dollars, and how they’ve gone beyond the traditional minimum payout rate and the variety of approaches they used as alternatives.
The case studies offer an interesting look at the different goals of these foundations, demonstrating how that the above-5 percent route is not necessarily limited to foundations seeking to spend down by a certain period of time. It also illustrates the actual and potential impact these foundations have on their grantee organizations and the communities these organizations serve.
Other foundations should look at Beyond Five Percent as a challenge and inspiration to become more responsive stewards of their tax-exempt assets.
Labels: Payout
The question of foundation payout remains to be a highly contested issue in philanthropy. The minimum annual payout requirement under U.S. laws is 5 percent of foundation assets, and this amount can include both foundation grants and administrative costs. For over a decade, NCRP has been calling for a 6 percent all-grants minimum payout (see Recommendations for Reform of the United States Philanthropic Sector).
The Northern California Grantmakers and the New York Regional Association of Grantmakers adds to the dialogue with their recent report Beyond Five Percent: The New Foundation Payout Menu. The report looks at 13 foundations, each with assets sizes ranging from a few million to several billion dollars, and how they’ve gone beyond the traditional minimum payout rate and the variety of approaches they used as alternatives.
The case studies offer an interesting look at the different goals of these foundations, demonstrating how that the above-5 percent route is not necessarily limited to foundations seeking to spend down by a certain period of time. It also illustrates the actual and potential impact these foundations have on their grantee organizations and the communities these organizations serve.
Other foundations should look at Beyond Five Percent as a challenge and inspiration to become more responsive stewards of their tax-exempt assets.
Labels: Payout
posted by NCRP at
2:51 PM
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