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Summer 2006
New Philanthropy Challenges and Opportunities
Abound for Community Foundations
Giving Forum asked three leading community foundation executives — Dr. Emmett Carson of The Minneapolis Foundation, Carleen Rhodes of The St. Paul Foundation and Holly Sampson of the Duluth-Superior Area Community Foundation — to respond to questions about the impact of the "new" philanthropy on their present and future work in their communities.
What is new about "new" philanthropy?
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Emmett Carson, Ph.D., president of The Minneapolis Foundation, has just stepped down as board chairman of the national Council on Foundations.
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Carson: There is an old saying that everything old becomes new again. The new philanthropy is not new to the African, Asian and Latino communities who have long relied on their self-directed mutual aid associations to provide both direct services and support for their social justice efforts. Neither is it new for immigrants to send money home. What is new is that community foundations have begun to recognize the importance of these giving vehicles and have started to develop relationships with these communities to facilitate their giving interests. For example, The Minneapolis Foundation partners with the Chinese Heritage Foundation Fund, Social Venture Partners and Community Capital Alliance, all of whom rely on the concept of giving circles.
Rhodes: Today's philanthropy is not old or new. The real thrust is that more people are engaged in philanthropy, as part of giving back during their lives. Community foundations have a long tradition of partnering with others to address critical issues, and we are seeing an influx of individual donors who are more engaged in strategic and impactful grantmaking. People want to make a difference, and building community assets is a key way to provide flexibility to meet the changing needs of the community. We're helping the next generation of donors see the power — and the fun —
behind generosity.
Sampson: The Duluth-Superior Area Community Foundation is working very closely with four affiliate community foundations in very small communities. What does each of these communities have in common? Philanthropic leadership has emerged from very small communities that didn't see the possibilities before. And they are bringing many voices together to encourage private giving for the public good.
In Two Harbors, community leaders joined together to encourage philanthropy from their friends and neighbors. Long-time Bayfield, Wisconsin, residents brought newer residents from Madeline Island together with Red Cliff tribal members to build community across those isolated but contiguous communities. Grand Marais residents connected with urban retirees and Grand Portage tribal members to form the first Cook County Community Fund Advisory Board. And in Hermantown, the mayor brought together public sector and business representatives to encourage mission-driven philanthropy.
What opportunities do new giving strategies offer community foundations?
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Holly Sampson, president of the Duluth-Superior Area Community Foundation, just completed service on the national Council on Foundations' Community Foundation Leadership Team.
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Carson: Community foundations have traditionally viewed giving as focused on the individual giving by the wealthy. The new giving methods focus less on individual wealth but rather on establishing a community of people who developed shared interests in solving a problem. In fact, some giving circles create equality by requiring each individual to contribute the same amount and no more. The exciting opportunity for community foundations is that giving circles and related vehicles foster an approach to building community and shared values. Such approaches make community foundations more accessible by different groups and brings greater balance to balance to their fund development efforts, e.g., endowment growth is not the only measure of success.
Rhodes: Philanthropy provides a powerful grassroots way for citizens to shape their communities. Nonprofits of all kinds have been stretched in terms of human capacity and financial solvency. We are all facing increasing scrutiny in our governance and accountability. We recognize that various government programs have reduced and redirected their funding streams, and while we as a sector cannot fill that gap, we do have influence in determining what requires resources — our power is in our partnership with each other.
Another opportunity comes from an interesting model we have developed at The Saint Paul Foundation. We support two community foundations and two private foundations with one staff. We can have greater impact through increased efficiencies.
Sampson: Participation is encouraged from all sectors of these communities to work together to build better communities. Diverse membership on the advisory boards and committees bring people together to focus on a common purpose. Building unrestricted funds and establishing family funds has been very popular in these small communities. Unrestricted giving recognizes the importance of supporting the broad community with its many changing needs. Establishing family funds, which has been very popular, recognizes the pivotal role families play in these communities.
What challenges arise in this new environment?
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Carleen Rhodes, president of The Saint Paul Foundation, is a member of the national Council on Foundations' Community Foundation Leadership Team.
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Carson: The growing interest of community foundations in new forms of philanthropy will require them to broaden their traditional model of giving and how they measure success. Giving circles are less likely to focus on building endowment, generate smaller gifts relative to individual wealthy donors and require significantly more staff time to facilitate their work. Moreover, giving circles are likely to support unconventional or controversial approaches that the community foundation may not want to be associated with. Many of these issues can be avoided if there is open and candid discussion and the community foundation recognizes that their role is to facilitate and not direct the charitable giving interests of others.
Rhodes: We can all help donors give with confidence and agility. As the options for our donors increase, we can all be vocal advocates for expanded philanthropy as a tool to meet human needs, effect community change and build connections throughout the world. Community foundations need to articulate the link between their demonstrated, principled leadership and the promise that permanent resources can be used nimbly and effectively to address pressing problems of the future. We can create excitement as we work within this burgeoning philanthropic environment.
More
Information from the
Summer 2006 Edition of Giving Forum
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Thank you to the sponsors of this issue of Giving Forum:
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| $5,000 Sponsor |
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| $5,000 Sponsor |
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| $1,000 Supporter |
West Central Initiative |
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© Copyright 2006 Minnesota Council on
Foundations
Reproduction in any form without the written permission of the publisher
is prohibited.
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