Winter 2009
Grantee Communications:
Candor, Clarity and Transparency
Proactive communication with grantees is always important. But in this economic climate, it's even more essential that foundations and giving programs share guideline and grantmaking changes quickly, as well as actively listen to grantees.
MCF Members Committed to Transparency
All members of the Minnesota Council on Foundations subscribe to the Principles for Minnesota Grantmakers. One of the eight principles, the Transparency Principle, specifically addresses communications with grantees: Grantmakers vow "to achieve transparency in our relationships with the public, applicants, grantees and donors by being clear, consistent and timely in our communications with them."
To that end, grantmakers large and small have made major announcements in recent weeks to formally report on how the economy will impact their giving in 2009. The McKnight Foundation sent a letter from president Kate Wolford to all grantees in mid-December outlining grant payout plans for 2009.
The letter encouraged grantseekers with immediate questions to talk with appropriate program staff, and it invited grantees to participate in "open table" discussions at the foundation in January. About 160 people from as many organizations signed up to attend, reports Tim Hanrahan, McKnight communications director. Described as relatively unstructured opportunities to ask questions and share thoughts among colleagues, the sessions were also designed to field perspectives on the economy's impact in the community and to gather innovative ideas to support everyone's work.
Grantmakers Listening to Nonprofits
Other foundations are also being proactive about setting up meetings to directly hear what grantees are experiencing.
"For our foundation, one of the main ways to get information is convenings in communities," describes Randi
Ilyse Roth from the Otto Bremer Foundation. "We go on the road several times a month, meeting with nonprofits in their own communities, hearing from thought leaders in different segments. In-person communication is a significant source of information."
Duluth Superior Area Community Foundation is using a similar approach. "We convened a group of grantees to give them an opportunity to talk about their organizations and what they're facing, given the economic downturn," says
president Holly Sampson. "We also wanted to get their thoughts about ways our foundation could be helpful to them. What we learned was a pretty sobering message. Clearly, they're seeing increased demand as well as increased cost for services."
Creating Audience-Focused Communications
Community foundations are focused on multiple audiences: donors, as well as grantees, are central to their mission. To assure they would reach everyone, staff members at the Lutheran Community Foundation created a communications plan in the first week of October as the economic situation deteriorated.
In addition to segmenting their audiences, they identified potential issues that could shape messaging, and they identified how they could use ongoing communications as well as newly-scheduled tactics to communicate effectively.
They've employed multiple strategies over the ensuing months, publishing updates on their website, sending letters to donors describing implications for different types of gifts, and proactively making calls to donors and financial advisors. The theme of the foundation's autumn newsletter was "Giving in Tough Times."
Reassuring Nonprofit Groups
With so much volatility and anxiety these days, it's sometimes difficult to craft messages that are timely and clear. The Jerome Foundation, a major arts funder, tried to be thoughtful and forthcoming in writing a letter to its grantees describing the decisions of its board for the current fiscal year. But executive director Cindy Gehrig still received quite a few questions.
The letter referred to the need to make a 2-percent cut in funding to current grantees. "Some called to receive reassurance that they are continuing grantees," notes Gehrig. "We defined this as organizations that the foundation has supported within the last two years."
She also received questions about what will happen on May 1, the beginning of Jerome's 2009-2010 fiscal year. "People are anxious for any additional information, but we have to be careful because the foundation's board has not yet determined spending policies for the new fiscal year," she explains. The board believes that a decision made now may be premature and is watching market performance and governmental actions in the first quarter of this year.
Every group within the nonprofit sector is extremely concerned about the outlook for 2009, but arts groups seem particularly nervous.
"Many early responses to Kate Wolford's letter came directly from arts grantees," reports Hanrahan at McKnight. "They are primarily seeking confirmation that current grants will be honored.
"Our arts team, led by program director Vickie Benson, has been responding to inquiries and proactively meeting with grantees for months, providing assurances and guidance for future proposals. We're also pursuing opportunities to encourage collaboration and shared knowledge and resources among arts (and other) grantees," he notes.
Balancing Immediacy with Context
Over the past few years, foundation websites have become critical sources of current information for nonprofit organizations. Now more than ever, grantmakers are paying attention to their electronic communications.
"We've always tried to use our website to get our message out," says Kerrie Blevins, director of the Patrick and Aimee Butler Family Foundation. "Our foundation is modestly staffed, so we try to be as transparent and as current as possible on our website, and give a snapshot of where the giving is going to be. We're also very responsive by phone and e-mail because we appreciate the anxiety nonprofits are feeling, and we try to be respectful of that."
To communicate about the John S. and James L. Knight Foundation's accomplishments, challenges and future plans, president and CEO Alberto Ibargüen was featured in a video that was posted on the organization's website.
The Bush Foundation posted a letter from president Peter Hutchinson, describing the difficult choices that the foundation is making and why it's essential to stay focused on its "Goals for a Decade" despite the immediate circumstances.
Taking the long view can be difficult. While websites and other electronic communication tools are useful, senders and receivers of information must maintain perspective and not jump to premature conclusions. Eagerness to receive the latest news must be balanced with context.
"This certainly is a challenging time, but I've worked at the Jerome Foundation for 31 years and this is not the first time that the foundation has been challenged by a substantial decline in its assets and has had to adjust its spending," remembers Gehrig.
"When the foundation was this size 15 years ago, it managed an effective grantmaking program. It's important not to let negativity overshadow the fact that grantmakers can be purposeful and make informed decisions about their programs, no matter what their size. That's our challenge," she concludes.
© Copyright 2009 Minnesota Council on Foundations
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