The True Reality of Grantmaking Today

Today’s demand for philanthropic dollars is chaotic.  The need for resources is overwhelming and it is affecting both large and small nonprofits. Many non-profits believe that foundations such as the Sisters of Charity Foundation of South Carolina are going to be the “quick fix” to their current financial challenges. Unfortunately, it does not work that way.

Most foundations move very deliberately and purposefully. They don’t make quick decisions nor do they “knee jerk” to crisis needs. The one common denominator is that foundations do have dollars to spend and nonprofits need dollars to spend. Other than that, every foundation has a different set of giving principles, goals and desired outcomes. Often times, an organization will apply for and expect funding from a foundation simply because the organization has a similar mission to the foundation’s mission. But more and more, foundations are looking “inward” at what they want to accomplish, than looking “outward” at what others want or need to accomplish.

In other words, foundations are becoming more intentional about their grant giving. Foundations have their own set of indicators that determine whether or not they are successful or meeting their own mission. Sometimes it aligns with a nonprofit and sometimes it doesn’t. For example, the Sisters of Charity Foundation of South Carolina has limited resources which force us to make extremely difficult decisions about how and where the Foundation does its social investing. It is just the way it is. Equipping families with the resources to live out of poverty is ambitious and a very difficult hill for us to climb. It is our goal to have the greatest impact on reducing poverty, mostly through addressing causes rather than consequences. That is not to say that we don’t invest in consequences but it is not our priority. We are going to dig deeper and invest more strategically to influence change that defines who we are and the goals and outcomes we, as a funder, must achieve.
 

This may require fewer grants to fewer organizations but the organizations that are funded will clearly align with our mission, focus, desired outcomes and key indicators. We will be looking for more defined partners to help us meet our goals. It is the only way we can be truly effective and measure the changes we are able to affect in poor communities and neighborhoods. Some funds will continue to be directed towards meeting basic needs. A lot of individuals and families are struggling and we cannot, in good conscience, ignore that. However, true change in the lives of those living in generational poverty will require more of our attention and resources as we move “further upstream” to find the answers and create greater impact.

Our hope is that future consequences of poverty will be less severe because needed prevention, intervention, learning, skill building and life style changes have occurred on the front end.  There is no doubt that many nonprofit organizations are trying to do good work in communities across South Carolina. Unfortunately, we can only choose a few and align with them to further our goals and mission of lifting families out of poverty.

Tom Keith is the president of 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

2011 Tips for Nonprofits

As we embark on a new year with new goals, I want to offer a few “low cost” tips to our grantees and other nonprofit practitioners that can pay dividends for you. They are:

• Strengthen Your Boards- The staff can only do so much. If you find and recruit new board members that can be passionate about your organization and help you raise money, then you will be in a much better place by the end of the year. New board members can open doors and help you access and raise new dollars.
 
• Embrace Social Media- Today’s world requires immediate and up to date information. A stale Web site and a printed newsletter distributed a few times a year is not enough. You are missing opportunities to market yourself and let the larger community know what is happening with your organization. If you haven’t already done so, then start a Facebook page, connect your organization on LinkedIn, tweet on Twitter, create an electronic newsletter and begin to write a blog. All of these tools are essentially free. It is just a matter of taking the time to learn and implement. There are plenty of people that are knowledgeable about social media that would be willing to assist you. 
 
• Get in front of the Public- Clubs, organizations and business groups often meet every week. They are always looking for speakers. Make an effort to develop a presentation that you, your staff and your volunteers can use. Then make the contacts with Rotary, Kiwanis, Lion’s, Civitan, Chambers of Commerce, VFW’s, American Legion and many other clubs and ask them to get on the calendar for a presentation about your organizations. Many professional associations allot part of their meetings for presentations from nonprofits. Only good things can happen from these efforts. People will learn more about your organization and they may be willing to volunteer and even donate, once they are informed.
 
• Be Efficient- Spend wisely. Seek “in-kind” services. Some company may not give you money but they might print a brochure for free. In my former fund raising life, I asked a bank for a financial donation. They said no but they offered me five billboards for a three-month period all over town. They put me in touch with their ad agency and the agency donated the cost to prepare the billboard. Because the bank was such a good customer, the billboard company put the five signs up for free. We had free advertising for three months at no cost to our organization. 
 
• Network- We can all learn something from each other. When you attend a workshop or conference, make sure you walk away from the event with at least one new contact and, hopefully, at least one new idea.  If someone is doing something that is working, there is no reason it can’t work for you. It is worth a try.
 
• Be Willing to Change- Often times, we get use to doing things a certain way. We get stuck in our own organizational mindset. Be willing to welcome change. Look for new ways to grow and improve your organization and yourself. If the old model is not working, then change course. If your ideas are no longer enough, then find new ideas by learning from other people. It can only help your organization move forward progressively and positively and that is what you want.
 
There are no easy solutions to complex problems in today’s nonprofit world. Many times cost prohibits us from accomplishing certain goals. However, there are other ways to grow and succeed that do not cost anything other than your time and energy. I encourage you to consider these “tips” as you move forward in 2011. Remember the old adage “Nothing ventured; nothing gained.” Now is your opportunity to try a few new things that will, hopefully, bring positive results and at little or no expense.



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

The Beginning

 Celebrating 15 Years in Philanthropy
1996-2011

My, how time flies. It was the spring of 1996. Providence Hospital had entered into a joint venture with a Nashville, Tennessee, hospital system and the assets from that transaction were forming a new entity.  The organization, a grantmaking foundation, was named the Sisters of Charity Foundation of South Carolina. As I reflect back on the beginning, I can think of one word to best describe the situation: overwhelming. Overnight, the Sisters of Charity Foundation of South Carolina became the second largest grantmaking foundation in South Carolina with assets of $85 million. Our mission was to address the root causes of poverty, but we knew very little beyond the mission. There was much to learn and much to be done. A staff and board, grantmaking processes and procedures, a grantmaking plan, a budget along with an investment policy and a wide array of other things to be accomplished in a short period of time.

Our first board chair in 1996 was Carroll Heyward. He said, “Let’s roll up our sleeves and get started.” And we did. The Sisters of Charity of St. Augustine grounded us in mission first. Everything should be tied to the mission. We began to learn from other grantmakers across the state and the country. We met with the Kansas Health Foundation CEO Marnie Vliet and staff, and we met with Karen Wolk Feinstein from the Jewish Healthcare Foundation in Pittsburgh. We consulted with experts in the field like Drew Altman, Dennis Beatrice, the late Joe Brietenicher, Grantmakers in Health CEO Catherine McDermott and countless others.

On the state level we assembled a team of individuals with a passion for helping those living in poverty. I remember the team committed many hours towards helping us frame a strategic direction. Some of the members included: Marilyn Edelhoch; Bud Ferillo; Larry Fernandez; Catherine Fleming Bruce; Barron Holmes, Ph.D.; Leon Love; Barbara Morrison Rodriguez, Ph.D.; Jim Solomon; Kathy Wilson, Ph.D.; and a few more. Out of these meetings came a vision for impactful and strategic and proactive grants. We still use the seven dimensions of poverty that came from this statewide consortium of experts more than 15 years ago. The seven are: 1. Health, 2. Education, 3. Life Skills, 4. Economics, 5. Culture, Values and Attitudes, 6. Family Structure and 7. Community Structure.

A lot has happened in 15 years and much of this happened because of the people mentioned above and the many others that are not mentioned who also played a valuable role. I want to recognize the Sisters of Charity of Health System for their support at the beginning and, in particular, Sister Mary Ann Andrews and Sue Krey, along with Sister Judith Ann Karam, for providing many learning opportunities and significant support to the Foundation. I would be remiss if I did not mention our dedicated staff in 1996 which included Sister Mary Jacob, Pat Littlejohn and Georgia Roberts. So, in 2011 we will celebrate the 15-year anniversary of the Sisters of Charity Foundation of South Carolina. It is now a large book with many chapters. And like any good book, it starts with a good first chapter.





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

2010: A Snapshot

As we close out another year, it is a good time to reflect on the work and accomplishments over the past twelve months. In spite of a weak economy and financial challenges, 2010 has been an outstanding year for the Sisters of Charity Foundation of South Carolina.

The Foundation served thousands of South Carolinians and more than 60 organizations through over $2 million in grants.

More than 200 representatives from nonprofit organizations took advantage of the Foundation’s Carolina Academy for Nonprofits. The Foundation launched distance learning opportunities with five sites participating in South Carolina and Ohio allowing more than 75 people to participate from outlying locations. We completed our first Nonprofit Leadership Training Certificate Program, a partnership with Columbia College, and held a graduation ceremony in August.

In September, Bishop Guglielmone traveled to Columbia and met with individuals and representatives from organizations served by the Foundation.

The Foundation held four listening sessions around the state and learned a great deal from those living in poverty.

The Collaboration for Ministry Initiative (CMI) held its sixth annual statewide conference, and more the 70 women religious attended.  Through CMI, several Sisters in South Carolina were able to travel to Cleveland, O.H., to see the national exhibit Women & Spirit: Catholic Sisters in America.

The South Carolina Center for Fathers and Families, an outgrowth of the Foundation’s Fatherhood Initiative, ran its first fund raising campaign, The Ugly Tie Campaign, in conjunction with Father’s Day. The Center also had an article on its Alternative to Incarceration program published in the Child and Family Social Work Journal.

The Foundation served on the on the AmericaSpeaks Engagement Committee to recruit participants and promote the AmericaSpeaks 21st Century Town Meetings® on the budget and economy in Columbia, S.C., one of the six primary cities selected for the event. In the spring of 2010, the Sisters of Charity Foundation of South Carolina engaged all South Carolina gubernatorial candidates by asking them five questions around poverty and economic opportunity in the state. Additionally, the Foundation continued to raise awareness on the impact of Temporary Assistance for Needy Families (TANF) funding in South Carolina and advocate for TANF reauthorization.

A new branding campaign was implemented, and the Foundation launched a new Web site.

It has been an influential year as the Sisters of Charity Foundation of South Carolina implemented the first stages of its strategic plan. While these are just few highlights of 2010, the Foundation is already planning how we can maximize impact in 2011, and how we can strategically uses resources to reduce poverty through action, advocacy and leadership so that families in South Carolina have the resources to live out of poverty.

Senate Approves Extension of TANF Program

On November 19, the Senate approved a one-year extension of the Temporary Assistance for Needy Families (TANF) program, a federally funded block grant program to provide families in need with a combination of financial assistance and work opportunities. Coined “Welfare to Work,” TANF limits the amount of a time an individual can receive assistance with a goal to move families in poverty to work. To help these families move off welfare and into employment, they receive assistance for job training and job skills, and to reduce barriers to employment they receive assistance with transportation and childcare.

The bill now moves to the House, which is expected to pass the extension when they return from the Thanksgiving recess. The TANF program is currently operating under a two-month extension of the program to prevent its scheduled expiration in September.

The bill does not include an extension the TANF Emergency Contingency Fund (ECF)―passed as part of the American Recovery and Reinvestment Act of 2009―which expired September 30, 2010.  Almost forty states, including South Carolina, used the ECF to support subsidized employment programs, offering vital job opportunities for low-income parents and youth and decreasing the TANF caseload. In partnership with the state workforce agency, the South Carolina Department of Social Services’ (DSS)  developed a subsidized jobs program that helps businesses get back on their feet while helping parents go back to work.  DSS has referred more than 1,000 people to this program, putting them in jobs and keeping them off welfare. The agency also assists parents with transportation, child care, work uniforms and required on-the-job tools, providing what is needed to move families off welfare and back to work. However, with the lack of funding, DSS will be forced to shut down these efforts.

As passed by the Senate, the legislation would limit funding for the regular TANF Contingency Fund and cancel out a provision under the continuing resolution Congress passed this fall that provided $506 million for the Contingency Fund through the end of Fiscal Year (FY) 2011. The measure would extend authorization of TANF supplemental grants to eligible states through June 2011, but would limit funding to an amount equal to $490 million less the amount used to cover Contingency Fund obligations. Thus, marking the first time Congress has not fully funded the supplemental grant program.

What’s more, the bill imposes a 4% penalty for failure to submit two new required reports. Currently states are not required to track some of the data included in the new reports. Therefore, states will be expected to undertake significant additional administrative burdens at a time of limited resources and staff time.

As you may know the Sisters of Charity Foundation of South Carolina has been advocating for TANF reauthorization. Prior to TANF, funds were allocated based on a formula which required states to provide matching dollars to draw down federal funds. Thus, states with a higher tax base could draw down more federal funding. TANF is to help families TANF is to help families move from welfare to work; therefore, TANF funding should be based on need. Next year, our hope is that Congress re-examines the TANF program and alters funding to a distribution formula based on poverty. It would target federal dollars where they are most needed – to states with high poverty. A formula that equalizes the payments to states based on the percentage of each state’s population living in poverty would benefit 33 of the 50 states, including South Carolina. A formula based on poverty best matches the original intent of the TANF legislation, and is the most unbiased way to allocate new federal funds.

The Sisters of Charity Foundation of South Carolina will continue to watch this legislation and work with our Congressional delegation to be a voice for the underserved and those that serve the underserved. It is one way the Foundation can achieve its vision that South Carolina families have the resources to live out of poverty.

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

Immigration Reform

The debate on immigration reform remains a very hot topic. It continues in Washington and is also part of the discussion in South Carolina. States like Arizona have passed their own immigration laws because of the stalemate in Washington. The U.S. Government must step forward with real immigration law reform before more states follow Arizona’s lead.  The President has given it a high priority but, without bi-partisan support, it is unlikely that legislation will be passed.

The current immigration law in the U.S. is nothing short of confusing and outdated.  We are essentially patched together using pieces of the Immigration and Nationality Act of 1952. It is long past time to create a new law. 

According to the Immigration Policy Center, there are more than 180,000 undocumented immigrants in South Carolina.  This makes up about 4.4% of our state’s population.  Before determining what immigration reform needs to look like, let’s glance at some the economic data. Latinos (both foreign born and native born) wield nearly $3.8 billion in purchasing power in South Carolina. The Asian population makes up over $2 billion in purchasing power.  In the state of South Carolina, there are more than 3,000 Latino-owned businesses which employs more than 7,000 people and has annual sales in excess of $690 million. Many undocumented workers make up the workforce in agriculture, construction, housekeeping, restaurant and landscaping services to name a few. If all unauthorized immigrants left South Carolina, the state would lose more than $2 billion in economic activity, $782 million in gross state product and more than 12,000 jobs.

There is no denying that the immigration debate is complicated and divisive. Many children of immigrants were born here. Some immigrant children were brought here at a young age and know no other country. The vast majority of immigrants are contributing to their community with a strong work ethic and family values.

The answer to immigration reform is not to stop everyone on the street, ask for their papers, and if they are undocumented, ship them back to their home country.  First and foremost, it would be inhumane. Secondly, the cost would be exorbitant with no real way to pay for it, leading to an increase in our already skyrocketing debt. It is just not pragmatic. I am not suggesting that we open our borders and let everyone that wants to live in the United States enter freely. We have over 11 million immigrants without citizenship living in America now.  The Dream Act that was introduced by Senator Orrin Hatch is a good step forward. It allows young people who meet certain requirements to get an education and develop a pathway to citizenship.

True Immigration Reform will require compromise, practical thinking, fiscal responsibility and compassion. This country was founded by immigrants. That is how our forefathers got here in the first place. There are no easy answers but there is a way to make reasonable and thoughtful decisions in a bi-partisan manner. If we can have that kind of commitment to Immigration Reform, then we have a chance to do something meaningful and fix a broken system.

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