What Can Philanthropy Do Now?

As our state and country’s economy continues to struggle we find ourselves in the midst of a major dilemma. The questions become, “What can philanthropy do now through foundations and with other non-profit organizations to have impact during tough economic times?” There are several options that I would like to offer for your consideration.

• Foundations can expect and foster more productivity and efficiency from non-profit organizations, and demonstrate this expectation by operating in this manner.

• Invest in more education and training for non-profit organizations, beyond making direct grants. Every non-profit can benefit from new techniques around financial management, operational management, fund raising, board governance and marketing.

• Foundations must take a public stand on issues that impact non-profit organizations and the constituencies they serve. For example, inefficient government systems and punitive and illogical policies and decision making that have a negative impact on the poor and underserved needs to be addressed. In addition, Foundations should publicly support those policies that benefit the communities they serve. Foundations must be crusaders for those who cannot advocate effectively for themselves.

• Invest in innovative ideas, even if it is risky. Be willing to move forward if the outcome could help more people and offer solutions to problems.

• Expect accountability. Every financial investment into the non-profit sector should have a return. Some are easier to measure than others but every organization accepting grant funds needs to be able to report its successes and, yes, failures. This needs to be a meaningful and dynamic process and not a perfunctory “after the fact” exercise.

• Promote more volunteerism. There are thousands of retirees in our state and country that have the time, experience and knowledge to make an impact on the non-profit sector. We must mobilize and involve more of these individuals. We must also call on our young people to become engaged in philanthropic endeavors. Our next generation must see the need and take responsibility for community service now.

• Encourage philanthropy. There are a lot of people who have become wealthy over the last ten years, and for what ever reason, have not shared this wealth. We must find a way to create new foundations or endowments through community foundations. We also must give relief to those who are able to give but need some incentive. For example, the IRA Charitable Rollover under the Pension Protection Act of 2006 allowed taxpayers 70-and-a-half or older to give money to charity from IRA’s without penalty. This was a good decision and generated millions of dollars for non-profit organizations in a short period of time.

These are just a few ways that we can make a difference now. Let’s all work together to find other ways to encourage and build philanthropy. It is how we will continue to change lives and communities for the better.

Tom Keith is the executive director of the Sisters of Charity Foundation of South Carolina.