Press Releases

For Immediate Release
4/29/2002
Contact: Sloan C. Wiesen
(202) 387-9177
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NCRP'S FIRST STATE OF PHILANTHROPY REPORT OFFERS SENSIBLE SOLUTIONS TO IMPROVE FIELD OF GRANTMAKING
Nonprofit Leaders Suggest Greater Foundation Responsibility and Increased Funding for Advocacy, Equality and Core Operations
WASHINGTON ­­­­- The National Committee for Responsive Philanthropy (NCRP) today released The State of Philanthropy 2002, a compendium of thoughtful analyses on the current state of affairs in the field of grantmaking - where the field is now, where it is going and how it can do better.  The first in a planned series of such publications, the 104-page report presents diverse perspectives from 20 nonprofit, academic, foundation and advocacy leaders, and offers a wide range of solutions the philanthropic community can act upon in order to live up to its promise of securing social and economic justice for all.

"The State of Philanthropy 2002 aims to help philanthropy live up to its best intentions of investing in common-sense social change to improve the quality of life for all Americans," said NCRP President Rick Cohen.  "This new publication offers the kind of constructive critical thought and sensible solutions that could greatly benefit nonprofits and funders alike - and ultimately the communities we are all striving to serve."

The report addresses a broad array of topics, including philanthropy and: public accountability, poverty, race, gender, sexual orientation and gender identity, public policy, social justice advocacy, community foundations, venture philanthropy, foundation payout rate, progressive policy making, workplace giving programs, the aftermath of Sept. 11 and youth organizing.  While the perspectives presented are wide-ranging, several important themes emerge.  Among them:

  • Foundations should invest a higher percentage of their endowments in grants to nonprofits.  The foundation community's own research confirms that foundations can afford to increase their "payout rate" - making this sensible investment in social change while preserving their long-term fiscal stability.
  • Funders should shift their giving significantly toward core operating support for nonprofits. Foundations and the nonprofits they fund would all benefit tremendously if foundations significantly stepped up their investment in core operating support for nonprofits' day-to-day operations. The alternative - foundations current overwhelming focus on short-term project funding - leaves nonprofits to jump from project to project in an endless money chase that hampers organizational effectiveness and hinders broader mission fulfillment.
  • Fund social change advocacy - not just direct social services and cultural programs.  Successful democracy depends on all sectors of society becoming engaged in the development of public policy.  Funding advocacy by nonprofits is crucial to the creation and implementation of sound public policy.  The IRS clearly permits significant advocacy by nonprofits - and the funding of nonprofits that engage in advocacy.  Both funders and nonprofits must embrace this critical component of their work.
  • All Americans merit an equal place at the philanthropic table.  Philanthropy must become a vehicle for positive social change that is equally effective for men, women and children of all races, faiths, ethnicities, sexual orientations, ages, abilities and socio-economic backgrounds.  There are still many steps that need to be taken to ensure that the drive for equality, fairness and non-discrimination reaches throughout society and permeates all aspects of philanthropic activity.
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