Foundation Legislation

An interesting article from Reuters caught my eye yesterday. It was about a proposal in New York to cut state tax deductions for charitable giving for the weathiest citizens. As the article reports, "New York lawmakers want to cut the tax break on charitable giving for about 3,500 people earning more than $10 million a year to 25 percent from 50 percent in a bid to raise $100 million in extra money for the state."

All the usual suspects are quoted in response to this article: foundation heads and nonprofit execs decrying the thought; Paul Schervish from the Center of Wealth and Philanthropy at Boston College saying it won't really be a big deal. The same arguments that have been raging on the national scene were all there. 

The big difference? This is about a specific state. 

As we know, ideas that are not completely salable to the national populous often become tested at the state level. But when it starts to happen in our field, which has, let's face it, lived in relative anonymity for decades, it can be a little jarring. And exhausting to contemplate. 

As states begin to focus more on foundation rules and foundation legislation, it means that foundations in those states must become more adept at educating lawmakers about foundations and sharing philanthropy information no just about their states as a whole, but by state representatives' districts. Gone are the days of simply adding a passive "amen" to the Council on Foundations' work in Washington. We've got to get busy here at home. 

I'm happy to know that the Southeastern Council of Foundations is leading the charge, supporting statewide grantmaker networks that are focused on policy, and providing several state-focused policy sessions at the upcoming 2010 Annual Meeting. Hopefully, this will help more foundations in our region understand the challenges ahead and how to tackle them most effectively. 

Which of the states in the Southeastern Council of Foundations' region will be the first to introduce legislation similar to New York's?

My money's on Florida. What about yours?

Over the past 10 days, the Southeastern Council of Foundations has sent out our "Top 10 Reasons" to attend this year's Annual Meeting in Mobile, Alabama, November 10-12. This is a great opportunity to stock up on loads of philanthropy information and grantmaking resources — but it's also one of the most congenial and "user-friendly" foundation conferences out there. 

So, for those of you who may have missed the emails, I'm replaying our "Top 10" here:

Reason #10 – November’s not really that far away.

Even though summer’s just begun, we’ll all only get busier as the year goes on. Don’t let the Southeast’s premier event for grantmakers get lost in the shuffle. Register now to secure your spot and check it off your list.

 

Reason #9 – The “Clash of the Titans” is for real.

Right now, there are two strong opinions in our sector about what foundations could and should be doing. How that conversation develops will doubtlessly influence how federal and state policies about philanthropy are shaped. No one represents the two sides of the debate better than Pablo Eisenberg and Dr. Leslie Lenkowsky. These two thought leaders will go head to head at the SECF Annual Meeting — and you can have a front row seat. 

Reason #8 – It’s better than having a crystal ball.

The SECF Annual Meeting follows immediately on the heels of what will to be a very critical election. You’ll hear the “morning after” impressions from experts about what the results could mean in terms of legislative policy for philanthropy, investment strategies for foundations and the short and long-term future of grantmaking.

 

Reason #7 – The Great Recession’s not over yet.

Things may be looking up, but we’ve still got a long way to go. At the SECF Annual Meeting, you’ll learn new strategies for tackling the full suite of recession-related realities — from internal investment approaches to ways to develop a community workforce and jobs.

 

Reason #6 — Powerful philanthropy starts with meaningful conversation.

There’s no place like the SECF Annual Meeting to gather with sector-leading peers in a format that encourages open, honest communication. In fact, the exchange of ideas in hallways and elevators alone has sparked ideas that have changed communities. Although we can’t promise everyone a life-changing moment, we can guarantee you’ll leave with plenty to think about.

 

Reason #5 — The Gulf Coast gets our support.

SECF secures meeting sites years in advance, and at the time we set this year’s Annual Meeting in Mobile, Alabama, no one could have foreseen the disastrous oil spill that now challenges the Gulf Coast.  While we wish the spill had never happened, we’re heartened that we have a chance to help by visiting the region, helping to generate revenue for the community, and learn about the role foundations will play in the ongoing recovery efforts.

 
Reason #4 — We ditched the stuffy dinner.

Conversation is key. Instead of plated entrees and podiums, we’ve heard the call for more informal networking — loud and clear. This year we’ve replaced the chairman’s dinner with a grand, Southern-style reception. We’re talking heavy on the hors’deouvers and mingling, and light on the interruptions. In fact, we’ve minimized the talking heads and stuffy panels throughout the entire Annual Meeting, and emphasized the opportunity for more discussion, interaction and collective reflection.

 

Reason #3 — Mobile invented Mardi Gras.

That’s right. Mardi Gras began in Mobile, Alabama, and the spirit of celebration and hospitality still imbues this beautiful city, along with great restaurants, breathtaking architecture and plenty of galleries and shops. What better place to celebrate and share the great work of your foundation? Although we’ll take a look at the serious issues facing our country, our communities, and our philanthropy, we’ve also made sure there’s time for you to enjoy a taste of Mobile and explore one of our region’s historic gems with your friends and colleagues.

 
Reason #2 — You just might sleep easier, because it’s free.

There’s nothing like a good night’s sleep — and yours could be free! Complete your SECF Annual Meeting registration by July 1 and you could win one free night at either The Battle House or Renaissance Riverview Hotel. All you’ll need to do is show up and snooze. (After a full day of action-packed Annual Meeting sessions, that should be a cinch!)

 

Reason #1 — All your friends and colleagues will be there.

We know what your mama told you: “If all your friends jumped off a bridge, would you do it, too?” But in this case, we think she’d approve. All of your friends and colleagues are coming together to share ideas, meet new leaders and thinkers, learn from experts and enjoy the fellowship of philanthropy. Shouldn’t you?

 

Don’t miss out. Learn more and register now. See you in Mobile!

 

 

I’ve just returned from the SECF Family Foundations Forum in Charleston, South Carolina. It was an incredibly rich and meaningful time together, complete with ample opportunities for foundation networking and much sharing of great grantmaking resources. Once again, I was impressed with the level of engagement among the 70 trustees and staff who attended. Their commitment to their foundations and communities, and their sincere desire to continually learn how to do their great work even better, is truly inspirational.

One saying popped up a few times during this meeting, “If you’ve seen one family foundation, you’ve seen one family foundation.” That’s very true. Family foundations are in essence extensions of the families that steward them, and are every bit as diverse. It spawned some great discussions and exchanges of ideas.

One topic that generated discussion was that of politics and philanthropy and, specifically, the relationship between our field and government in light of the new administration. To me, it underscored the point that the jury is still out on whether a deeper level of engagement from government will be a plus or minus for our field.

Some of the discussion centered around last week’s article in the Wall Street Journal about the very palpable mutual admiration between foundations and the current administration at the Council on Foundations meeting. But I was at that meeting, as well as other philanthropy conferences, and I've also heard a different view. Many were still feeling the sting of the proposed cap on charitable deductions in 2009, which was beaten back with bipartisan opposition, but has reappeared in the President’s 2011 budget.

Then there’s also the question of the Social Innovation Fund.  Many applaud it, and it will no doubt have a significant impact on some terrific organizations. There’s another perspective, however, that the White House, in creating this fund and the bureaucracy to support it, essentially is saying they think the government can affect change and invest this money better than foundations.

It’s still too early to tell. I believe that the real litmus test for the Obama Administration and its embrace of philanthropy and supportive philanthropy policy may not come until we see what happens when and if tax reform arrives on the front burner.

But there’s one key observation that comes from being among our family foundation members this week. Legislation and policy have alternatively targeted or all but ignored philanthropy for generations. And for generations, families with charitable values have found a way to keep the foundation fires burning.

 

In a recent column in Business Lexington, Anne Nash, a philanthropic advisor in Lexington, Kentucky, offered a fairly comprehensive summary of the ways in which the field of grantmaking is beginning to shift. In short, the lines between traditional grantmaking and business models seem to be getting more and more blurred. Perhaps one day, it will be difficult to distinguish between a grantmaking foundation and business empire.

Not that I completely disagree; there are plenty of arguments out there for adopting a more rigorous and results-driven approach to investing one's social capital. And no doubt new charitable foundations rules and regulations, along with ongoing foundation legislation, will evolve in response to these new trends. 

While it's great that a growing number of corporate and business leaders and thinkers are eager to make their marks in the philanthropic sandbox, it's also true that no one understands the real challenges of foundation grantmaking like those who have been toiling here for decades. That's why it's so critical that foundation executives and trustees make their voices heard among state and national policy and law-making bodies. And one of the best places to do that is at Foundations on the Hill, March 16 and 17th.

It's still not too late to sign up. The more of us who visit the Hill, the louder our voice and the stronger our influence as our field grows and changes. Get the details on the SECF Foundations on the Hill webpage.

To add your name to the list, contact Helen Ishii, Director of Member and Government Affairs, Southeastern Council of Foundations, (404) 524-0911 or helen@secf.org. 

See you in DC!

As a communications professional, I was in awe of Barack Obama's campaign for the presidency. He reached through the Internet and tapped the passion of thousands of people who had felt disenfranchised by the political system. He mobilized them and created a dramatic shift in the way politicians now view the public. 

To my way of thinking, that was a resurgence of true democracy: one person, one vote, re-engaged via social media. Not everyone liked it, of course, because it did tip the balance of power and shake up the status quo.

That said, it calls into question the value of evaluating and mobilizing popular will versus taking a more studied and strategic approach to creating change.

Now, I see this same question coming from inside the philanthropic sector. It started with Facebook's "causes" pages and other social media outlets, where like-minded individuals could rally around shared concerns, pool donations, get engaged as volunteers. But earlier this week, FastCompany posted an article about the new Chase Community Giving Program, a collaboration between Chase and Facebook that will allow users to vote on how Chase will spend $4 million from its corporate philanthropy fund. There are 500,000 charities in the running.

According to the article, "The charity receiving the most votes will receive $1 million, the top 5 runners up will get $100,000 each, and 100 finalists will get $25,000 each. It's all money that Chase would give to charities anyway, but this is the first time that the bank  is crowdsourcing its decisions."

"Crowdsourcing," or abdicating? 

To say I have mixed feelings about this is an understatement. 

On one hand, I'm excited that hundreds of thousands of Facebook users might engage in thoughts of philanthropy, learn about what different nonprofits are doing, and hopefully ignite a personal spark of giving and engagement that will pervade their behavior going forward and result in an even more generous society going forward. I recently heard Aaron Dorfman of the National Center for Responsive Philanthropy cite studies showing that the wisdom of a semi-educated crowd often resulted in better decisions than a homogeneous panel of "experts." That could be true, depending on your definition of "better decisions."

On the other hand, there's the danger that the "winners" in this type of contest are the nonprofits with the best social media engines, not the best or most effective programs. As nonprofits and foundations increasingly come under attack for not doing enough, popular support could be a tempting way to fend off proposed charity or foundation legislation or negative press. I worry that strategic philanthropy could go the way of politics — where popular support at all costs becomes the prize, rather than actually creating a positive impact. Support will come at the expense of doing the more difficult work of demonstrating true effectiveness.

That leads to a point about corporate social responsibility. Are the leaders of Chase's corporate giving just going to become keyboard jockeys? Have they all been laid off? Is crowdsourcing Chase's new attempt at free outsourcing? Or is it just a way to avoid making some tough decisions?

The blog Modern Giving examined a few of the pros and cons of crowd sourcing in July, including a description of the John S. and James L. Knight Foundation's Knight News Challenge as an example. (To me, the News Challenge was a great example of crowdsourcing ideas in a more defined and effective way.)

Don't get me wrong: I believe that crowdsourcing is here to stay. I also believe that it may prove to be an effective tool for raising awareness and potentially creating positive change. 

But I also think it won't make the difficult task of explaining the work and the value of private foundations, family foundations, community foundations or corporate philanthropy any easier. 

What to YOU think? 

There are already many people arriving in Memphis for the Southeastern Council of Foundations Annual Meeting, and watching people greet their colleagues is truly uplifting. 

Foundation executives, trustees, and staff of all stripes are converging here in the Peabody for three days of intense discussion about grantmaking resources, philanthropy policy, foundation legislation, and success stories and best practices from around the region. The content of this meeting will no doubt be phenomenal, but there's another lesson that's quickly learned by watching this group gather: Philanthropy is, and always will be, best facilitated through human interaction. 

The family foundations, corporate grantmakers, community foundations and private foundations gathered here all share a common passion to serve their fellow man. We will talk in depth about strategy and practice, internal concerns and external perspectives. We will engage in discussions about education, health, art, community development, economics, leadership, communications, governance, the environment, effectiveness, partnership, advocacy and stewardship. But we will also share the joy that the work of philanthropy brings, and relish the face-to-face dialogs that are harder and harder to come by. 

Relationships that are born and/or sustained throughout the year via technology will become stronger with a handshake or a hug. New ideas will be generated. Meaning and feeling and passion for those ideas will be communicated with facial expressions and tone of voice. 

In other words, we're all here together to truly appreciate one another and strengthen the work we do. 

It doesn't get much better than this.

With as fast as the world of philanthropy is changing, it's sometimes hard to keep up. Private foundation legislation about payouts morphs into new rules for community foundations about funding advocacy groups. Corporate philanthropy's impact on brands runs together in my head with arguments about perpetuity and why people set up a foundation in the first place.

For years, the Southeastern Council of Foundations has been a haven for all manner of philanthropic conversations to take place, and now, I'm proud to see this organization taking the conversation one step farther. In this new blog, you'll find posts about a variety of topics from a number of authors about foundation rules, philanthropic policy, key issues for foundation trustees, worthy stories of grantmaking from around the region, news, useful ideas, and more. 

But this blog is only a means to get the conversation started, so read often, share your thoughts frequently, and help us all raise the voice and vision of philanthropy further into our collective consciousness. 

There's so much to talk about!