Foundations Must Rethink Their Priorities

Foundations today are in a tough spot and they have been in a tough spot for a few years. Since 2008, foundations have dealt with financial constraints they have not experienced in many years. From the outside looking in, most people feel that foundations have a large asset base and plenty of fluid resources to distribute into the community. This is not true. In 2008 and 2009, most foundations lost at least 25% of their asset value and some lost as much as 40%. This has a huge impact in many different ways. It causes a more conservative approach to grant making, less dollars to grant and likely fewer dollars in the coming years. It simply adds up to less and less money.
 
So foundations today must operate differently. No longer can they provide grant dollars at the level they have before. No longer can they count on a growing investment portfolio to sustain their current level of giving, let alone grow. 
 
So how do we meet our goals and mission with less money to offer? The answer is that we must find ways to maximize the dollars we have to work with to garner the best possible outcomes. We must rethink our priorities. Here is what the Sisters of Charity Foundation of South Carolina is doing to deal with fewer dollars at a time when the demand for support is at its highest level.

Leverage. Through partnerships with other funders, businesses and government, we try and leverage our money to make more collective dollars available for a common program our project. Collaboration is key, and pooled resources mean more dollars and a higher probability of success.

Policy. There are many issues that affect the poor that we address and advocate for oftentimes voiceless. The individuals and families that benefit from the grants we award can also benefit from our voice with government, community leaders and multiple stakeholders. Public awareness and education is a key component of this effort. Whether it is weighing in on the homeless issue, undocumented immigrants, low income fathers, TANF reauthorization or other important concerns, the Foundation can use its influence to affect public perception and thinking. It is an important role that we play, and can create positive outcomes. Taking a stand on issues affecting our mission is necessary and extremely valuable to us and to others.

Capacity Building and Leadership. Teaching and training nonprofit practitioners to be better at their jobs has become a hallmark strategy, beyond grant making, of this Foundation. By strengthening board and staff’s ability around governance, fund raising, marketing, strategy and leadership, the whole organization benefits and has a strong chance of being more successful and vibrant. It is a small financial investment with the potential for a large return for the nonprofits that participate.

Community Convening. Meeting with community leaders and individuals living in poverty gives us a whole different understanding of how life truly is, in a poor neighborhood or town. Sometimes a Foundation can be the voice of reason and thoughtfulness in a community where leaders have become polarized or the social and political dynamics have become too strong to overcome. Learning from others and sharing with others can be a valuable and important role for the Foundation to play. What you learn can also help drive grant making decisions in the future. Important issues rise to the top at many of these community convenings.

Foundations today must choose their priorities carefully and if they only focus on grants then they are missing an opportunity to have broader impact and greater results. There are not enough dollars available to accomplish what needs to be done to meet our mission and earn the greatest results. Casting our net wider using tools other than grant making makes sense. If we don’t use them, then our results will be limited just like our dollars.

Tom Keith is the president of the Sisters of Charity Foundation of South Carolina