Sticking to the Fundamentals While Becoming More Than Just a Grantmaker

This is a follow up from the Foundation’s January 19 post, The Beginning.

Celebrating 15 Years in Philanthropy
1996-2011

As the Sisters of Charity Foundation of South Carolina progressed from its early phase, the Foundation began to develop its own identity. We certainly used our early grantmaking decisions as an incubator for future decision making and direction. We learned from the grants we made and tweaked our process many different times. Our fundamental focus of working to alleviate poverty in South Carolina has never changed but how we approach it has.

We have gone from 100% of our dollars going to grantmaking to a combination of grantmaking, public policy work, communications, capacitybuilding and research and evaluation efforts. It is the Foundation’s belief that the more comprehensive and diversified the work becomes, the greater impact we can have on poverty. Grant dollars are important but they are not and should not be the only plan of action. There are just not enough grant dollars to go around. With this knowledge, the Foundation has invested in a host of programs, initiatives and partnerships that have created a philanthropic platform that transcends our dollars and allows us to create change in multiple ways.

Below are five key factors that were taken from the Foundation’s early grantmaking to the current, more-established organization:

• Have an engaged and dedicated board that embraces the mission and helps you strategically evolve as an organization. The Foundation’s board (even as the faces change) has always been completely immersed in the Foundation’s work and committed to the goals and principles. 
• Have a capable staff that can see the big picture and use their skills and ability to affect the overall mission. The Foundation’s staff is built on integrity, ability, mission effectiveness and teamwork. 
• Be willing to change direction as needed. A plan that is not working is not good for anyone. So, at times, the Foundation has changed course and improved its work. 
• Plan your work and implement it with the end in mind. Know where you want to go. The Foundation board and staff have truly grasped the idea of collective thinking and determining what kind of organization the Foundation becomes given multiple variables, including declining assets and a huge demand for Foundation resources. 
• Have an open door policy. Be willing to talk to people about their ideas and plans. Be willing to meet everyone as if they are a potential partner or friend. Sometimes it is not a good fit but many times it is. If the Foundation had been “hands off” with its approach to philanthropy, there would have been many missed opportunities.

This Sisters of Charity Foundation strives to change lives and communities each and every day. We do it with conviction and we do it with compassion and respect for others. We make mistakes like everyone else but I like to believe that we learn from our mistakes and grow from our experiences. That is what makes a good grantmaking organization.

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

Advice that May Help Achieve Nonprofit Success in the Remainder of 2009

In speaking with several nonprofit executives over the past few months, it is evident that nonprofit organizations, as are others, are still struggling. Money is really tight and fund raising is down. As we hit the halfway point for the year, many organizations are facing the reality that this is not going to be a successful year and certain changes are going to be necessary. Some of these changes may include staff layoffs, downsizing of office space, reducing or eradicating projects that involve printing and mailing costs and eliminating travel, conferences, training and other opportunities that would enhance the organization. I will share what I believe are important elements for surviving these difficult economic times.

• Go back to your core annual donors (both present and lapsed) and ask them to support you again. If the ask was made through an annual donor letter campaign in the past, you may want to make a personal phone call this time. Who knows, a $100 gift might turn into a larger gift if you have an opportunity to explain your circumstances.

• You should already have personal contact with your major gift donors, but I would use the same approach. If they gave $5000 last year or in previous years, have a frank conversation with them about your situation. It may help shore up the same amount of the previous gift or even secure a larger gift. But you need to walk away with something from these core supporters.

• Explore partnerships that may involve government dollars. There are a lot of funds are out there through the federal government and they are from a variety of sources. There is stimulus money, faith-based funds and other sources through various governmental agencies. Learn about these opportunities and see if there is a good fit for your organization. Do your homework and find a partner if that is what it takes.

• Build relationships with foundations whose mission coincides with your mission. Let them hear from you and learn about you. Communicate throughout the year and not only when you are seeking funding. A foundation feels much more comfortable providing funds to an organization it knows and trusts.

• Push your board and other internal stakeholders to give and to help obtain funds. They are as close as anybody to your mission. Fund raising should never be a complete staff function, but staff can facilitate ways for others to find donors. I would start with your board.

The economic climate is troublesome and there are many external factors that are affecting success, but make sure you are doing everything you can with your organization’s internal decisions and strategies. The year is only half over and there is still time to have some successes in the second half of the year. Good luck with your efforts.

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

Ethics are Important in Nonprofits

Ethics are extremely important in nonprofit organizations and for many different reasons. The challenges facing nonprofits today is greater than ever before. This is true with financial, operational and organizational issues. Ethical dilemmas face nonprofits in all three of these areas.

Recently, the United Way of Charlotte was placed under the microscope when the board’s executive committee, unbeknownst to many of the other board members, took nearly $1 million of donor funds and placed it in the retirement account of the CEO. Their explanation was that it was to make up for past commitments. The outcome of this dilemma was not pretty. The chairman of the board and several trustees resigned. The public relations fall out to the United Way of Charlotte was devastating. Their financial campaign was significantly down from the previous year, and the CEO was forced to resign and has since sued the United Way for wrongful termination.

Could this all have been avoided? Yes. First of all, there should be full disclosure among all board members. A commitment of this nature was the first mistake made by the board of trustees. You don’t want to promise things that you will have to pay for later, particularly if it involves a lump sum of nearly $1 million. If a commitment was made to the CEO then an equitable plan should be devised that is fair to the donors, fair to the CEO and protective of the reputation of the United Way.

Trustees are as responsible as staff for the health and well-being of a nonprofit. There should be a code of ethics, conflict of interest statements signed by every board member and other checks and balances in place to protect the integrity of the organization. In addition, the board should appoint a committee to monitor the board’s performance and behavior.

Every nonprofit is beholding to the public trust. When they accept a donation or grant from an individual or group, they have a fiduciary responsibility to protect these funds and use it for its mission and purpose. When one nonprofit falters then it has a very negative impact on other nonprofit organizations in that community. It is without question that nonprofit are, and should be, held to a higher standard. It is the role of the board and staff to insure that protective measures are put in place and certain standards are met continuously. Anything less is a recipe for problems which need to be avoided at all costs.


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