Why Give Now?

Traditional estate planning might call for bequeathing a substantial portion of your resources to philanthropic purposes upon death. Plenty of financial planning arguments can be made to support this approach (maximize wealth first, give later…) but what these plans overlook is the experience of giving now and the role that a philanthropist can play in shaping the impact of their own philanthropy.

Leaders make critical choices about how to run their businesses, parent children and engage friends, family and community…and they have the opportunity to see the effect of these decisions in real time. When it comes to deploying a substantial proportion of one’s wealth for charitable purposes, why would you leave it to an uncertain future when you have the chance to influence the impact of your support during your lifetime? Giving while living introduces the fulfillment of philanthropy, the opportunity to shape one’s giving and the ability to understand what can be accomplished with intentional decisions. It also provides the chance to share that philanthropic vision with others, whether peers in the funding community who can also offer support, family members, or those who may lead this philanthropic work in the future. And, finally, an often-overlooked benefit of giving now is witnessing the excellent work of nonprofit leaders, the people who dedicate themselves to improving the lives of others, who work diligently to identify lasting solutions, and who ultimately deploy philanthropic resources for community benefit.

There are many creative options for how to give, and private foundations offer the most flexibility and creativity for giving. For example, in additional to making grants, you can award scholarships and prizes, engage in impact investing by issuing program-related loans and making mission-related investments, or conduct direct charitable activities like starting a shelter for victims of domestic violence or running a tutoring program for children in need. Learn more ways that you can give with a private foundation.

Why Give More?

In the face of urgent and growing social needs across the globe, why would individuals and institutions with means choose the slow lane for the difference they can make in improving the lives of others? Intractable problems often require bold innovations and solutions, and the latter depend on aggressive support rather than incremental funding that lags behind need.

It is easy to view the work of the Bill & Melinda Gates Foundation and its funding counterparts as otherworldly: we don’t have the resources they do, we can’t do that kind of thing, etc. Perhaps…but this may be missing the point. The inspiration any funder can take from BMGF and others is the ambition to effect change in a way that aligns with your values, your foundation’s priorities or the needs of your neighborhood. It is not about giving as much as them, but giving as much as you can and daring to challenge old problems with new solutions.

The goal here is to aim high, bend those spreadsheets to your will and extend giving as much as possible. In this case, inspiration comes from an entirely different end of the financial spectrum. In the face of worsening global poverty, individual remittances are on the rise. People with arguably few financial resources (certainly when compared to philanthropists or funding entities) are finding it within their power to send money home to their families: to give and to give now.

Look also to your own funding peers. Over the course of more than 10 years, Foundation Source has found that its foundation clients persistently give more than the minimum that is required by the IRS. In 2021, for example, smaller foundations gave 19.2% of assets in response to the COVID-19 pandemic.

What Can Our Support Achieve?

Also in his 2024 letter, Suzman emphasizes that a greater proportion of high-net-worth giving goes to elite universities and cultural institutions than to addressing urgent societal needs. He commends philanthropists who either do both equally (adopting what he calls “yes, and” philanthropy) or who prioritize current and pressing needs over all else.

Rather than considering this an either/or decision, identify urgent needs in your priority program areas and geographies and incorporate support for these issues into your giving plan alongside support of existing cultural or educational institutions. Identify the funding gaps that Suzman discusses in the context of your own giving. Discover where your resources can have the greatest impact.

The choice to give now and to give more means that your support can help address urgent needs, accelerate solutions and prevent the worsening of systemic community problems. Where you choose to deploy your dollars is entirely your own decision; there is, however, no question that maximizing your support of urgent needs will help to mitigate and, ultimately, eliminate intractable social challenges.

Next door and across the globe, societal hardship is abundant. No matter the size and scale of your giving, you can make a difference by taking bold steps to maximize and accelerate your charitable donations. Aim high and hit the fast lane.

Elizabeth Wong is Head of Philanthropic Advisory Services for Foundation Source.

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The post Give Now and Give More to Meet Urgent Needs: An Inspiring Call from the Gates Foundation appeared first on Foundation Source.

To learn more about NGOsource and their dedication to the program’s history, growth and vision for the future, checkout their website that marks their 10-year anniversary.

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Some view nonprofit organizations and grantmaking foundations as parties on opposites ends of the philanthropic equation, however they are really partners working toward the same goal. “Foundation and nonprofit partnerships benefit most from communicating clearly and early in the process,” said Alexis Fish, director of product marketing at Foundation Source. Being honest and upfront with what your organization needs can go a long way toward a lasting partnership, but speaking up can be challenging for a nonprofit organization. “A best practice is for a foundation to always include an open-ended question at the end of an application or discovery conversation that provides a dedicated place for a nonprofit to add in anything that they haven’t already had a chance to ask or say,” said Alexis.

“Grantmaking foundations are just people looking to do good,” said Kate Piatt Eckert, mission sustainability initiative director at Forefront. “Many foundations have dedicated program staff whose job is to help the foundation make grants. Contact them and ask what they are looking for and what they want to fund.”

“Consider starting with smaller foundations,” said Margaux Ancel, director of foundation engagement at Foundation Source. “Often times, grant writers will only spend time applying for larger grants because of the time and effort, but spending a little time on the smaller grants is a great way to get to know the foundation and build meaningful relationships.”

#2: Bridge the divide.

Funders often only see the broader view and lack insight into the work happening on the ground at nonprofits. The charitable giving space is often likened to a tree, with nonprofit organizations down at the roots and funders up in the branches. By offering a holistic description of an organization’s funding needs, foundations may not only express interest in contributing financial support but envision opportunities for a more substantive relationship. For example, Foundation Source client, Carrie Morgridge, actively bridges this divide by not only making financial donations, but also facilitating relationships.

“We don’t give money and walk away,” said Carrie. “Not only do you get a grant from our foundation, but we also roll up our sleeves and connect people in our network, from great nonprofits to great philanthropists. Because we’ve done so many grants and come across so many wonderful people, we’ve put together an amazing group, and we’ve organized them into sector categories in which they work. They’re sharing ideas and amplifying their capabilities just by connecting.”

#3: Utilize technology.

Long-lasting partnerships can be difficult to build and maintain, but technology can help maintain ongoing relationships and close communication gaps. For example, an online portal can offer space not only to complete an application, but also for a nonprofit to invite colleagues, track grants, payments, manage progress and view outcome reports in one place. These technology-enabled features can help nonprofits and foundations align in real time, allowing for a deeper connection. They also provide a great opportunity for nonprofits to showcase the impact of foundation commitments.

Christa Chu, a private client advisor at Foundation Source, shares her advice as a former fundraiser who now works with private foundations: “Nonprofits should demonstrate how the organization’s overall health is essential to the success of the program and frame a proposal that incorporates requests for both designated program funding and general operating support.”

Making an impact as a nonprofit organization while juggling multiple tasks is a challenging but possible feat with the right tactics and infrastructure in place. Frequent and transparent communication between foundations and nonprofits cultivate meaningful relationships that yield more than just financial support.

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The post 3 Ways Funders Can Deepen Their Relationships with Nonprofits appeared first on Foundation Source.

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Challenge:

The foundation has its roots in a humble frontier feed store. Founded in the 1890s, the store eventually grew into a sizable company with a household name. Relatives of the three brothers who grew that company founded their foundation in the 1940s, and it has been in operation ever since.

Today, the board of the foundation, which is comprised of descendants of the brothers, pays homage to its history by keeping track of other descendants through familial records. There are now dozens of descendants and, upon reaching the age of 18, they are all eligible to join the foundation as a non-voting member and attend board meetings. The foundation will match up to three member gifts to charity for as much as $1,500 total in a given year. Members are also able to provide feedback via grant committees for organizations that have applied for funding.

The foundation’s tradition of making giving a (very large) family enterprise is one of its most cherished hallmarks. Even so, all that gift-matching and grant committee activity makes for an enormous amount of paperwork and a sizable administrative burden.

Collaboration:

Foundation Source set up their gift-matching program on Applications, our online grants management system for accepting, organizing, tracking, and replying to charitable requests. (Applications is available as an add-on to the robust platform our clients use to manage their foundations.)

Family members use Applications to apply for their gift match. Foundation Source verifies that the family member made a donation and that the recipient organization is eligible to receive grants from the foundation. We also customized Applications so that when a family member is a part of a grant committee, they can log in, review their committee’s applications, and then leave comments for board members.

Outcome:

Thanks to their experience with Applications, the foundation now benefits from a seamless, paperless process for its gift-matching program. The foundation is free to celebrate its heritage without worry that the growth of its family tree will outstrip its administrative capabilities.

The post How a Private Foundation Is Keeping An (Extended) Family Tradition Going Strong appeared first on Foundation Source.

Challenge:

The board of the Charles R. Wood Foundation carries on the work of its late founder by supporting children, the arts, and healthcare in upstate New York.

While traveling in rural North Carolina, the president of the foundation read an article in the local newspaper about Dolly Parton’s Imagination Library program and its outreach to the region. This national program, which is available to any community, mails a book to children under five years of age each month. The purpose of the program is to boost early childhood literacy and foster a love of reading.

As the Charles R. Wood Foundation wanted to promote childhood literacy in upstate New York’s rural counties, they asked their Private Client Advisor at Foundation Source to get them information on how they could get involved.

Collaboration:

The Private Client Advisor contacted the Dollywood Foundation, which was able to provide the demographic research the foundation required to assess regional need. Dollywood also identified possible literary agencies that might be willing to partner with the Charles R. Wood Foundation. Foundation Source coordinated the effort by discussing the program with the Literacy Volunteers of Clinton County, who agreed to handle the child registration process.

Foundation Source has streamlined the entire application process, saving the foundation significant time and administrative effort. The foundation is very pleased with their new process, but we revisit it each year and continue to refine it based on their evolving needs.

Outcome:

The Foundation now supports the Imagination Library program, enabling 3,500 children in Clinton, Essex, Franklin, and Hamilton counties to participate. The foundation is thrilled that Foundation Source could help connect them with the necessary partners to make this project happen, and they appreciate how easy we’ve made it for them to track its results, procuring semi-annual updates for their review.

The post Connecting a Private Foundation to An Opportunity for Literacy appeared first on Foundation Source.

If you plan to repeatedly support certain organizations, here are some changes to consider making to your funding application process for returning grantees:

1. Communicate Clearly. Be clear about your foundation’s capacity and willingness to repeatedly fund the same grantee. If you have a limit to the number of grants you will make to a single organization, communicate that information up front.
2. Assess Charitable Impact. Ask for details (ideally both statistical and anecdotal) about the charitable impact the grantee organization made from your previous round(s) of funding. What did the organization achieve? Are its accomplishments remarkable enough to warrant further support?
3. Look for Changes. Closely examine the grantee since you originally funded it. Has it grown? Changed staff or board leadership? Is there a greater or lesser need for its services?
4. Avoid Overfunding. Examine how much of the grantee’s budget is represented by the funding you’ve provided. Has your support helped attract additional funders or does the grantee rely mainly on you? It’s important to note that if a single foundation provides too much of a nonprofit organization’s funding year after year, the organization risks losing its status as a public charity. (Foundation Source clients can obtain further insight into this rule from our Tax and Legal Services team.)
5. Streamline Your Application. For efficiency, simplify your application to request only information that is new or that may have changed since the grantee originally applied for your support. Foundation Source technology offers this tailoring. With one click you can create rightsized electronic applications that request year-over-year data. Returning grantees can receive them automatically in the online GivingHub and complete them with ease. Such efficiency is appreciated by all parties and enables more impactful partnerships with multi-year funding applicants.

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We’re Here To Help
Our Philanthropic Advisory Services team has extensive experience in partnering with foundations. Foundation Source clients have access to customized advisory services, tools and resources that enable foundations to maximize the impact and efficiency of their philanthropy. To learn more, call 800.839.0054 or send us an email at info@foundationsource.com.

Get Exclusive Access to Experts
Our Philanthropic Advisory Services are available as add-on engagements for current and new Foundation Source clients. Whether you choose an individual, dedicated session with our subject matter experts or want to join like-minded peers in a small group setting, our virtual engagements are here to support your foundation’s unique needs and help you grow, adapt and thrive.

Ready to talk to a philanthropic specialist?
Schedule a call with us or reach us at 800.839.0054. Together, let’s #begiving.

The post Adapting Your Grant Approach Series: Tips for Funding Returning Grantees appeared first on Foundation Source.

As a funder, once you identify an organization you want to support, what’s the next step? In order to learn more and get the information you need to make a grant, you need to talk to the right person at the organization.

When considering a grant to a large institution, it’s a best practice to talk to the foundation relations staffer and not the staff person soliciting individual gifts. These types of organizations have a big development staff who work on fundraising, and they specialize in different types of funders. Make sure you reach out to the staff member whose primary role is working with private foundations.

The staff who work with individuals might be known as Development Directors, Directors of Alumni Relations or Institutional Advancement Staff. The foundation-focused staff are often Directors of Foundation Relations or a similar role. One staff member may reach out to alumni for checks, while someone else may work with high-net-worth (HNW) individuals or wealthy parents of current students.

Also keep in mind that foundation gifts and HNW gifts are different. With foundation gifts, there are typically proposals, grant agreements and recognition for the foundation. In addition, private foundations need specific information to ensure that the grant meets compliance needs before the grant is made. When it comes to HNW gifts, the individual writes a substantial check and the transaction is done—they’re not asking for reports or for any stipulations or programs, in other words. In larger institutions, the staff will understand these nuances in gifts, the process of getting funds from foundations, and what foundations may need for compliance or for their strategic agenda.

Don’t Sign On the Dotted Line

When making grants, it’s always a wise move to use a foundation grant agreement instead of signing a grantee’s pledge agreement. Private foundations benefit from using a grant agreement as it helps them clarify any terms and expectations. Foundations can use grant agreements as the appropriate mechanism for creating clarity when it comes to the terms of the grant, including details about the program and where the money should go as well as reporting and metrics that the foundation wants. Knowing that the grant funding is pending after a grant agreement is signed is also a benefit to the nonprofit organization, so both parties can mutually benefit from a grant agreement.

Sometimes organizations will present a foundation with a grantee’s pledge agreement that has their terms with what they want from the funding. Our experts recommend declining a request to sign a pledge as it may bind your foundation to unwanted or unexpected obligations.

A grant agreement is the key document that gives a foundation authority and control over the grant. Once funds are distributed, the transaction is complete. For foundations to protect themselves, be sure to be crystal clear about the terms of the grant upfront.

Foundation Example:

Recently, a foundation came to us and asked about this very topic. In this case, a grant recipient presented the pledge agreement as a requirement, but we advised against signing. For example, if the grantee is in a hurry to advertise that money came in, such as to raise funds for an upcoming match or a big event, there are ways to put it in writing that a foundation is working on this grant so that they can talk about it publicly to attract other funders.

Remember there are many ways to approach grantmaking and it’s easiest when the grantor and grantee can work together in partnership. At Foundation Source, our charity research tools put in-depth information on over one million nonprofits at your fingertips, so you can make informed funding decisions. If you have any questions in the meantime, our team would be happy to assist you!

Want to Dive Deeper Into This Topic?
Be sure to subscribe to our Blog to follow our Adapting Your Grant Approach series.

We’re Here To Help
Our Philanthropic Advisory Services team has extensive experience in partnering with foundations. Foundation Source clients have access to customized advisory services, tools and resources that enable foundations to maximize the impact and efficiency of their philanthropy. To learn more, call 800.839.0054 or send us an email at info@foundationsource.com.

Get Exclusive Access to Experts
Our Philanthropic Advisory Services are available as add-on engagements for current and new Foundation Source clients. Whether you choose an individual, dedicated session with our subject matter experts or want to join like-minded peers in a small group setting, our virtual engagements are here to support your foundation’s unique needs and help you grow, adapt and thrive.

Ready to talk to a philanthropic specialist?
Schedule a call with us here or reach us at 800-839-0054. Together, let’s #begiving.

The post Adapting Your Grant Approach: Tips for Giving to Different Types of Organizations appeared first on Foundation Source.

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