Government Should Support Philanthropy, But Can’t Rely on Foundations to Make Up for Budget Cuts

The Sisters of Charity Foundation of South Carolina recently joined other grantmakers in the state and across the nation to participate in Foundations on the Hill. The purpose of Foundations on the Hill is to inform and educate Congress about philanthropy, create visibility for foundations and philanthropy on Capitol Hill, advocate on issues affecting foundations and encourage Congress to view foundations as resources on key public policy issues.

Given the current economic climate, coupled with four new members in the House, it was very important for the Sisters of Charity Foundation of South Carolina to remind and educate Congress on the importance of the philanthropic sector and start building relationships with our new Congressional delegation. 
 
In a series of briefing sessions―hosted by the Council of Foundations―preceding the Hill visits, the group was able to hear from a variety of Members of Congress and their staffers. The majority of Hill staffers present vocalized their thoughts that foundations can make up for government shortfalls, especially as the budgets are cut. This is a huge misconception. Government can’t expect foundations to fill funding cuts.
 
Mother Teresa once said, “What we are doing is just a drop in the ocean. But if that drop was not in the ocean, I think the ocean would be less because of that missing drop.” This is also true of foundation resources; compared to government dollars, foundation funding is just a drop―albeit vital― in the ocean. 
 
However, philanthropy is still a resource for government. Philanthropy is independent, innovative and an investment in communities. It uses private resources to do public good, and its independence allows the philanthropic sector to takes risks, achieve greater results and affect change. Through leveraging resources, flexibility and ingenuity, philanthropy drives innovation and is a breeding ground for great ideas. Lastly, philanthropy invests in long term solutions for our country’s most challenging problems. 
 
Foundations tend to be more familiar with the issues in the communities they serve. While they may not be the ones on the ground doing work, they support these nonprofits and have built great relationships. Foundations can also identify, test and replicate best practices in communities.
 
More and more people are turning to philanthropy to address the challenges facing our communities. Thus, government must do all it can to encourage and support philanthropy and foster the charitable character of Americans. 

Brooke Bailey is the director of communications and public policy for the Sisters of Charity Foundation of South Carolina

Funding Shortfalls Continue to Challenge Us All

Funding shortfalls from government and the private sector continue to negatively impact South Carolina’s nonprofits. Organizations that previously seemed impervious to the economic downturn are now suffering tremendously. Nonprofits are cutting staff and programs and simply doing whatever is necessary to keep the doors open. The sad news is there is no immediate resolution on the horizon.

The reality is that organizations must operate using a scaled-down model. In some cases, nonprofits have reduced their staff by 50%, yet the demand for the services they provide has increased. Foundations must also be willing to change with the times. For example, the Sisters of Charity Foundation is funding operational expenses for nonprofits. This is something we did not consider for many years. To allow more organizations to apply for our Caritas Grants program, which are grants that meet basic needs, we have raised the operating budget limit for potential applicants. In an effort to be grantee-friendly, the Foundation is lifting a process that has been in place. If an organization is funded in one year, they can now apply for a grant the following year. Previously, a full year had to expire before this was possible, and often grantseekers were forced to wait nearly a year and a half to reapply for funding. Additionally, the Foundation is looking at providing restructuring and reorganization grants to allow nonprofits to look at new models, mergers and even dissolution. 
 
The fact is that our Foundation funds are tight. This is the smallest budget we have ever had in our 15-year history. We cannot let this stop us from reaching as many nonprofits as possible. We will have three grant cycles in 2011 and, along with our initiative funding, we will award more than $2.4 million across South Carolina. In addition to grantmaking, the Foundation will provide multiple learning opportunities and training sessions for nonprofits to attend free of charge. A current list is updated regularly on our Web site. These free sessions are geared towards helping organizations find ways to be more successful and to operate more efficiently. The programs will be available in Columbia, S.C., at the Foundation office as well as other locations in the state. So even though times are extremely challenging, there are still many opportunities.

Success may be measured differently this year. Our success will be measured by how many organizations we can assist and therefore, how many individuals and families living in poverty we can help.  It is my hope that every organization operating will find a way to garner the resources they need to operate necessary programs this year. Otherwise, needy individuals and families will continue to suffer and bear a large part of the brunt of these tough economic times.






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

We Have a Real Chance to Influence Change Now

In philanthropy, as we look at our sphere of influence in society today it has a wide range of entry points. Foundations are called upon to make important and tactical decisions every day. These decisions often have influence on multiple people and organizations. A great many of these decisions are internal and are based on a program, process or an initiative or an intentional direction that a foundation is headed. Boards and staff decide on size and types of grants that are awarded, a process and decision around strategy, how much to invest in program evaluation, how much to invest in communications, etc.

The sphere of influence, referenced earlier, is changing for foundations and it should be. Philanthropy is a significant contributor to communities and to society as a whole and, therefore, has a major stake in how we effect community change. So do a lot of other entities such as government, business, schools, hospitals and various other organizations. If foundations are not looking for ways to influence thinking around issues that can impact their community, region and state, then they are missing an important dimension of their work and an opportunity to get to necessary change.

For example, if a decision is being made by a municipality that will move homeless people 10 miles out of town without adequate transportation and they become isolated, shouldn’t we speak up? It is our job to look at all the issues that affect society and, in particular, see how decisions are going to affect those indigent and low-income people. Alone, these members of society do not have the power or voice to influence the decision makers.

Furthermore, decision makers are often influenced by non objective outsiders that have a vested interest in the outcome of the decision, preventing this influence from being pure and unbiased. Foundations should be objective, and their resources and connections should position them to ask difficult questions and to demand “the little guy” gets his just due in the process.

Whether we are asking tough questions of government, business or other people of influence within our societal sphere, we must step forward and be willing to play a role. Philanthropy has a lot of responsibility and it wields a significant amount of power and influence. It is our responsibility to use that influence for the greater good and let our external opportunities be just as important as our internal decision making. Foundations can no longer live and work in isolation. What we do and what needs to be done reaches far beyond the walls of our office and local town or city. Now is the time for all foundations to step forward and advocate for their grantees, constituents and those in the greatest need. If we don’t aggressively move in this direction then shame on us when the outcome is not to our liking and negatively impacts our state.


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

Health Care Thoughts

The ongoing debate around access to health care continues. People have become vocal with varying opinions and emotions are running high. I will be the first to say that I don’t think we need huge government and I don’t know how we are going to pay for a lot of what has already been spent via the recent bailout of several financial institutions. However, there are people in this country─some poor and some who simply have unusual circumstances─that need access to health care. They need it because they are sick or suffering.

I recently heard a story about a 59-year-old construction worker who could no longer work due to bad knees. He could barely stand. When he visited a Federally Qualified Health Center, the doctors worked with him. The treatment: give him pain medication until he reaches the age to qualify for Medicare; then, he can get the two knee replacements he needs. So for the next few years, this gentleman is going to suffer in pain, struggling to walk and he will wait. Guess what? He is waiting for government senior care to kick in.

What a sad commentary for a country with supposedly the best health care in the world. We may have the best health care but it says a lot about our system when these types of scenarios occur. Insurance companies are unhappy, doctors are unhappy and pharmaceutical companies are unhappy. Why? Because it threatens their bottom line and it weakens their market share and they will make less money, pure and simple. If I were a doctor or a big insurance company executive, I might not like that either.

However, health care should not be a privilege but a human right. People were put on this earth through no decision that involved them, and everyone’s health should be something we all care about – mine and yours. Right now, our uninsured are wandering into hospital emergency rooms and seeking assistance where medical care is at its highest cost. Hospitals are then forced to write off the expense and those that are insured end up paying more. What is right about that system?

I do not know what the answer is and do not profess to be a health care expert by any stretch of the imagination. However, as caring and compassionate human beings, we need to do some serious thinking about what is the “right thing to do.” Families are struggling through tough economic times and so are businesses. We don’t need bigger government, but we do need a plan that will allow any human being on this earth the opportunity to have or buy health care and not break the budget doing it. Cut through all the spin, scare tactics and opinions and this should be where we end up. Life is filled with challenges and sacrifices. People’s health should not be number one on the sacrifice list, particularly if your wallet is really thin. It’s just not right.


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