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

Our Voices, Our Stories: A Look Back on 2010 Listening Sessions

As part of the Foundation’s commitment to listen directly to those experiencing poverty in South Carolina, the Sisters of Charity Foundation of South Carolina conducted four community Listening Sessions in Allendale, Johns Island, Greenwood and Bennettsville in 2010. Each location was strategically selected because of the different levels of poverty. For example, one community had a 16 percent poverty rate, while another one had 32 percent.

The response to the Foundation’s Listening Sessions was overwhelming with over 270 individuals participating, representing nearly 100 organizations across the four locations. Specific attention was given to obtaining diverse representation and perspectives. More than half of the participants voluntarily provided demographic information. The demographics of those that responded included:

• 57% female, 40% male;
• 34% African American, 27% Latino/Hispanic; 23% Caucasian/White, 5% were Native American;
• 36% were unemployed while 15% were working part-time;
• 24% had attended middle school or some high school as their highest level education, 17% had either a GED or high school diploma;
• 19% had an income range of $25,000 or below while 15% had an income range of $25,000 to $49,000.

During each Listening Session, a Foundation board of trustee’s member or staff member facilitated small focused table discussions among attendees to elicit their perspectives on their experience of poverty and its impact on their community. Throughout the Listening Sessions, families experiencing poverty shared―in a heartfelt way―their struggles, joys and pain.

They were remarkably open with us as they invited us humbly into their lives. We witnessed first-hand tremendous strength and resilience among those we talked with, felt their deep sense of heritage and heard the importance of informal support systems (friendships and family ties). Perhaps what resonated most was the importance and fundamental role faith and spirituality plays in their lives.

One Johns Island Hispanic resident shared, “we believe in God and have faith, that’s all we have.”

Those with a strong spiritual foundation and faith used this faith as an inspiration as they work to overcome so many barriers in order to move out of poverty.

“We’re just trying to make it from day to day," shared one Greenwood resident.

We wrapped up our Listening Sessions by asking participants to share their potential ideas, solutions and resources needed in their community in order to reduce poverty.

As one resident in Allendale shared, “people need to be given a chance to do something with their lives.”

“I need to see the hope to believe there is hope. Instead of telling me, show me the hope,” said one Bennettsville youth. 

Across the locations, twelve recommendations for action fell in four primary areas: social services, education, health and strengthening the community. Families experiencing poverty want to know that people care and are invested in their success.

Read the full summary and recommendations made during the 2010 Listening Sessions



Stephanie Cooper-Lewter is the senior director of research for the Sisters of Charity Foundation of South Carolina.

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.