Spring 2008
Giving Stories
General Mills: Mission-Driven Giving
For some foundations and corporate giving programs, the commitment to providing general operating support runs deep. For the General Mills Foundation, the commitment has been long embedded in the company's history of community giving.
"It's not a recent decision," says Ellen Goldberg Luger, the foundation's executive director. "We have a long history of providing general operating grants out of belief in the mission of an organization and in trusting those in leadership to be strategic and use funds effectively."
In fiscal 2007, the General Mills Foundation contributed more than $20 million in community grants, and a large percentage were committed to general operations.
She emphasizes the importance of long-term relationships. "It's all about building trust: working closely with organizations to understand what their challenges are, knowing what our focus areas are, and determining the best ways we can together make a difference in the community."
Hawthorne Huddle: Ongoing Dialogue and Evolving Relationships
Luger notes that one way General Mills builds partnerships is being "on the ground" in the community. An example of this work is the company's 10-year commitment to convening monthly gatherings in the Hawthorne neighborhood of North Minneapolis. Known as the Hawthorne Huddle, this community initiative brings General Mills face-to-face with community residents, educators, police, faith leaders and elected officials.
While the monthly forum gives everyone a chance to discuss issues and identify community solutions, it also opens up opportunities for General Mills to partner with neighborhood nonprofits. Over time, relationships have grown and changed. In some cases General Mills started out providing project funding, which later led to long-term operating support.
"It's been an evolution," says Luger about the Hawthorne project. "Different organizations have been at the table, and some newer organizations have found a place there to connect with the same priorities we have." For example, General Mills' focus on K-12 education has led to a long partnership with Nellie Stone Johnson Community School and Achieve! Minneapolis. Other company priorities include youth, nutrition and fitness, and other social services that contribute to the general well being of families and children.
More Than Financial Resources
General Mills, like many foundations and corporate giving programs, searches for other ways to connect with, understand and support nonprofits. Perhaps, says Luger, it's time to reframe the discussion: "Some of the terms [general operating, project support] are outdated and continue to hang on. What challenges do nonprofits have in meeting their mission? What funding or other resources will best assist our partners in meeting their mission?" She emphasizes that financial support is just one type of resource: "At General Mills, 78 percent of employees volunteer. That's an incredible resource that can generate new ideas, help nonprofits problem-solve and offer additional support."
General Operating Doesn't Mean "No Impact"
Luger notes that she has seen a shift in the field of philanthropy toward more accountability and measurement, which in turn has driven organizations to focus more on restricted grants. Despite that change in the giving environment, the commitment of General Mills to general purpose support has not wavered.
Luger agrees with other grantors that accountability is important. "But by making a general operating grant you're not saying you don't want your dollars used in the most impactful way," she explains. "It's about looking at a nonprofit as mission-driven; if you support that mission, you have to look through a broader, not more targeted, lens."
Accountability can be achieved through evaluation, written reports and face-to-face meetings to discuss what was accomplished and what can be learned. But, Luger adds, when making 600 grants a year, it's difficult to talk in-person with everyone. "We're working on a more systematic approach to meet face-to-face with grantees at least every other year, but it's a challenge for everyone, including the nonprofits.
"How can we best assist nonprofits to achieve their mission? How can we most effectively use our limited resources to make a difference in the community?" she concludes. For General Mills, the answers to those questions will emerge from open conversations and trusting relationships.
The McKnight Foundation:
Long-Term Flexibility
When you've established a long-term relationship, general operating funding just makes sense. According to Neal Cuthbert, vice president of program at The McKnight Foundation, mutual goals and good communication lead to more flexible funding.
At McKnight, there is no solid line between consideration of general operating or project support. "We try to be as flexible as we can when we're in an ongoing relationship," Cuthbert explains. "After some time funding a project, the program staff and grantee say to each other, ‘Are we really talking about operating support?' It naturally evolves."
General Operating Support Long in the Mix
The McKnight Foundation has offered general operating support for decades to a variety of arts institutions, multi-service human services agencies and other nonprofits. "For instance, we understand that arts groups need general operating support. Look at theater companies. It would be artificial to approach each new play as an individual project or program," he explains.
But each funding relationship and focus area is unique. Cuthbert points out that some of McKnight's social service funding fits into the project model. An organization may propose a program that fits within McKnight's goals. Over time, the project may be repeated, be adjusted, or come to an end as needs and goals change.
Interdependency and Mutual Goals
Cuthbert notes that some funders have shied away from general operating funding because they believe it creates a greater sense of dependency. That concern may be diminishing as more grantmakers embrace greater flexibility.
At McKnight it's more about interdependence than dependency. "It's a mutually interdependent relationship between foundations and nonprofits," emphasizes Cuthbert. "It's not a one-way thing. We all need to acknowledge good work and focus on the work in order for all of us to meet our goals and create community change."
"It comes down to the quality of the relationship," he continues. "The foundation needs to be clear and honest about its goals, and the nonprofits need to be clear about what they are trying to accomplish. If the goals line up, funding may continue for one year, or a decade or more."
Clear Accomplishments from the Outset
Like many grantmakers, McKnight is searching for new ways for grantees to demonstrate accountability. The organization uses traditional methods, requesting interim and final reports to determine if the purposes of the grants were met. "But that is only one layer of what's going on," comments Cuthbert. "We're actively trying to figure out systematic, practical ways to measure the impact of the work we do."
Cuthbert doesn't believe measuring the impact of general operating grants is any harder than showing the results of program grants. "Program support feels simpler because there are things to count," he notes. Documenting the outcomes of general operating support requires examination of the overall goals of the foundation and the organization funded, then taking a more holistic view. One key is to be clear going into the funding relationship. The grant proposal should outline proposed accomplishments at the outset, and evaluation can be planned and conducted accordingly.
Fewer Labels, More Effectiveness
Many McKnight grants don't fit neatly into the general operating and project support buckets. "A good number of our grants are labeled multi-purpose," said Cuthbert. A challenge to grantmakers is the increasing number of nonprofits that work in multiple areas. Cuthbert cites examples: "Youth development and the arts, education and health, environment and community development. We struggle with organizations wearing several hats. The grantee may think they're a better target [because they work in multiple McKnight interest areas], but they run the risk of becoming orphans in our organization. We're actively trying to improve our internal and cross-program communication and information-sharing, so that one organization isn't meeting with one program officer in the morning and another in the afternoon."
Concludes Cuthbert, "Our board is certainly interested in being more effective and responsive and strategic all at once. No one is wed to specific categories; it's not about general operating or program support, it's about how to be more effective."
© Copyright 2008 Minnesota Council on Foundations
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