Rockefeller Philanthropy Advisors

Pursuing Operating Support: Tips From Experts, 5/13/08

Friday, May 16th, 2008

In pursuing operating-support grants, experts say, charities can improve their chances of success by taking the following actions…

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New Report Examines Foundation Diversity, 4/29/08

Friday, May 16th, 2008

Over the past twenty-five years, the share of grant dollars targeting minority populations has grown modestly, even as staff diversity at foundations doubled, a new report from Rockefeller Philanthropy Advisors finds.

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New Report Provides Data on Foundation Diversity

Friday, April 25th, 2008

First in series of Rockefeller Philanthropy Advisors publications on diversity in philanthropy analyzes 25 years of progress among the nation’s foundations

NEW YORK, April 25, 2008 - Rockefeller Philanthropy Advisors today released the first of three publications that examine the state of diversity in philanthropy. The series arrives as public pressure grows for foundations to be more responsive to underserved and diverse communities and foundation leaders reconsider the many ways to incorporate diverse perspectives into solving our greatest challenges.

Published with the goal of encouraging open dialogue in the field, highlighting accomplishments and promising programs, and recommending strategies to address institutional and field changes, the series will include quantitative data, analysis of model diversity programs and commentary by leaders in philanthropy and related fields.

The first report, Philanthropy in a Changing Society: Achieving Effectiveness through Diversity, is the most comprehensive examination to date of the major approaches to foundation diversity over the past 25 years. The Rockefeller Philanthropy Advisors team thoroughly analyzed grant data collected by the Foundation Center and staffing and board composition trends from the Council on Foundations. The team tapped the advice of more than 50 philanthropy professionals and reviewed relevant literature to collect, describe and assess diversity programs and resources, and solicit comment on successes and challenges. These philanthropy leaders include scholars, directors of diversity programs, program participants and executives of major private, community and family foundations and philanthropic associations. Key findings include:

Overall, there was much progress from 1982 through 2006 among foundations. 2006 staff diversity had grown to 23.2 percent, from 12.6 percent in 1982, with board diversity at 13.0 percent from 4.3 percent. Program officer diversity reached 35 percent compared with 15.4 percent in 1985.

The share of grant dollars targeting minority populations increased modestly from 5.9 percent to 7.4 percent of foundation giving analyzed by the Foundation Center in its annual grants sample.

First half of 25 years saw greatest progress, with growth slower thereafter. While CEO and board diversity more than tripled during the entire period, only 41.5 percent and 32.7 percent of this change, respectively, took place between 1994 through 2006. Since the early 1990s grant dollars targeting minorities hovered just above or below eight percent.

Diversity within foundations varies greatly by staff title, with program staff representing the greatest diversity and more senior or executive roles less so - a situation similar to other sectors.

Diversity across foundation types also varies: independent foundations are most diverse among all staff, public foundations have the most diverse boards, and corporate grantmakers the most diverse pool of CEOs.

While number of grants and grant dollars targeting minority populations did not increase in direct proportion to increases in staff and board diversity, they did seem to increase and stabilize during similar periods.

Diversity programs evolved as the field became more aware of “inclusiveness” as the ultimate goal, i.e. ensuring the participation of diverse voices, rather than just on diversity head count.

Generally, programs had positive impact on individual participants and foundations, but limited resources, scale and duration, lack of coordination across foundations, isolated operations, and lack of outcome-oriented evaluations hampered replication or field-wide advocacy.

Affinity groups that began as informal support networks among staff of color have been the most consistent advocate for increasing diversity and inclusiveness.

“World events have made us increasingly aware of our global interdependence, and the case for diversity has evolved as we gain a better understanding of what it takes to be a truly inclusive society,” said Melissa Berman, President and CEO of Rockefeller Philanthropy Advisors. “We are especially proud to be providing our colleagues with objective information to help them further their institutional missions while reflecting and adapting to a changing society.”
Philanthropy in a Changing Society is the result of a grant from the Charles Stewart Mott Foundation.
“Upholding human and individual rights has always been one of our guiding principles,” said Maureen Smyth, senior vice president of programs for the Charles Stewart Mott Foundation. “We hope our colleagues will join us in exploring and implementing models that will promote greater inclusiveness within the field and in turn, better help society’s underserved communities.”
Noting that efforts to mobilize leadership are underway through the Diversity in Philanthropy Project, the Council on Foundations and regional associations of grantmakers in California, Massachusetts, Michigan and New York, the authors also recommend the following strategies:
Increase advocacy, outreach and peer support by networks of foundation leaders grappling with improving effectiveness and responsiveness in the face of rapidly changing demographics.
Collaborate with emerging donor communities to connect leadership among diverse communities with the larger institutional philanthropy field.
Improve and expand existing programs that increase the pool of diverse candidates for staff and board positions, support institutional efforts to include diverse voices in all aspects of their work, or efforts to reach out to disadvantaged and vulnerable communities across all program areas.
Promote field impact through coordinated multi-program strategies to leverage resources focusing on increasing diversity and inclusiveness, particularly at regional levels.
Increase research on trends in staffing, board composition and grantmaking so foundations have data to establish benchmarks and monitor progress.

Philanthropy in a Changing Society: Achieving Effectiveness through Diversity is available at no cost by contacting info@rockpa.org. A PDF can also be downloaded from www.rockpa.org/ideas_and_perspectives/publications.

About Rockefeller Philanthropy Advisors
Rockefeller Philanthropy Advisors is an independent, nonprofit service that develops and manages thoughtful, effective giving programs for individuals, families, foundations and trusts. Rockefeller Philanthropy Advisors advises on more than $200 million in annual giving in 60 countries. Headquartered in New York City with offices in San Francisco and Los Angeles, the organization was originally developed as the private philanthropy service of the Rockefeller family and traces its antecedents to John D. Rockefeller, Sr., who in 1891 began to professionally manage philanthropy “as if it were a business.”

Analyses include grants of $10,000 or more, as reviewed since 1989, and grants of all amounts examined prior to 1989.

Public firms face host of social and environmental concerns, 4/17/08

Thursday, April 17th, 2008

Here’s a different campaign story: Foundations or their investment managers are poring over shareholder proxy statements to determine how to vote during Corporate America’s annual meeting season.

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Guide explores mission-related investing - Philanthropy Journal, 3/20/08

Monday, March 24th, 2008

Philanthropy Journal
Guide explores mission-related investing
March 20, 2008

The emerging practice of mission-related investing, or investing assets to achieve social as well as financial returns, is the focus of a new guide published by Rockefeller Philanthropy Advisors.

In addition to outlining policies and procedures to be used by foundation trustees, “Philanthropy’s New Passing Gear: Mission-Related Investing” includes case studies from funders like the W.K. Kellogg Foundation, Robin Hood Foundation and F.B. Heron Foundation.

“Foundations in the United Sates have $600 billion in their endowments and can unleash more of their resources to positively change societies today,” Doug Bauer, senior vice president of Rockefeller Philanthropy Advisors and co-author of the guide, says in a statement. “As a result, mission-related investing is an idea whose time has come.”

The guide provides information on a variety of topics for foundations, including

• structuring a policy discussion among board members
• integrating mission-related investing into existing programs
• choosing investment consultants
• monitoring portfolios

First Practical Guide to Mission-Related Investing by Foundations

Friday, March 21st, 2008

Published by Rockefeller Philanthropy Advisors

Policy manual offers comprehensive information to launch effective MRI programs

NEW YORK (March 7, 2008) - Rockefeller Philanthropy Advisors has announced the publication of a comprehensive, practical guide that translates the concepts, ideas and philosophy of Mission-Related Investing (MRI) into useable policies and practices for foundation trustees.Building on a growing body of knowledge and practice areas,

Philanthropy’s New Passing Gear: Mission-Related Investing marks the first comprehensive implementation guide available to ensure the effective launch of an MRI program and its integration with existing policies and processes. “Foundations in the United States have $600 billion in their endowments and can unleash more of their resources to positively change societies today. As a result, mission-related investing is an idea whose time has come,” said Doug Bauer, senior vice president of Rockefeller Philanthropy Advisors and a co-author of the guide with Steven Godeke, a noted expert in the field. “An MRI program can be daunting to execute,” says Godeke. “Our goal is to provide the knowledge and tools that enable foundation trustees and executives to be energized by the opportunities and outcomes that MRI makes possible, and to move philanthropy into a new leadership position for effecting change.”Broadly defined, mission-related investing encompasses any investment activity designed to generate a positive social or environmental impact in addition to providing a financial return. It is receiving attention, in part, because the field of philanthropy has changed dramatically and donors of all types and sizes are recognizing that traditional grantmaking models are neither the sole route, nor always the most effective one, to achieving social impact. In fact, industry pioneers are advancing entrepreneurial, market-based approaches to creating social capital and impact that often involve a foundation using endowment assets in excess of the usual five percent allocation to grants. According to Bauer, there is also an increased interest to change operating structures, rethink grantmaking efforts, and to foster collaboration between program and investment professionals on advancing new philanthropic models like MRI.

Philanthropy’s New Passing Gear: Mission Related Investing outlines how foundations can:

• Ground a strategy within their values and mission;
• Understand various catalysts for MRI;
• Structure a policy discussion in the boardroom;
• Integrate MRI into existing program and investment processes;
• Link investment asset allocation with program goals;
• Determine the appropriate MRI investment tools and strategies;
• Select program and investment consultants;
• Organize their board, staff and consultants to find, evaluate, approve and execute MRI investments;
• Monitor investment performance of an MRI portfolio; and ultimately,
• Integrate social returns into the ongoing investments and program decisions of the foundation.

“What we’ve learned from our research and our work with the pioneers in this field is that a modest start in MRI can have great impact,” continued Bauer. “This book will be essential to helping with those first critical steps and building ongoing support for an MRI strategy. Foundations can not and should not wait for a perfect system.”

Philanthropy’s New Passing Gear: Mission-Related Investing includes 12 case studies that reflect the diversity of approaches used by organizations currently practicing MRI such as The F.B. Heron Foundation, W.K. Kellogg Foundation, KL Felicitas Foundation, Robin Hood Foundation, the New Hampshire Community Loan Fund and The Russell Family Foundation. The guide and its appendices also contain tools and templates for creating and executing MRI strategies.

“There is little that is more exciting in philanthropy today than mission-related investing. By putting investment assets to work for mission, MRI allows trustees to uphold their fiduciary duty while increasing the effectiveness of foundations in serving their mission. This excellent guide goes a long way in showing us how to do it,” said William Dietel, Special Counsel and former Chairman, F.B. Heron Foundation.

Additional underwriting for the project was provided by the Flora Family Foundation and the Woodcock Foundation. Philanthropy’s New Passing Gear: Mission-Related Investing, A Policy and Implementation Guide for Foundation Trustees, is available at no cost by contacting info@rockpa.org or calling 212-812-4369. A PDF can also be downloaded from www.rockpa.org.

About Rockefeller Philanthropy Advisors
Rockefeller Philanthropy Advisors (www.rockpa.org) is an independent, nonprofit service that develops and manages effective giving programs for individuals, families, foundations and trusts. In 2007, Rockefeller Philanthropy Advisors advised on more than $165 million in giving in 30 countries. Headquartered in New York City, with offices in San Francisco and Los Angeles, it traces its antecedents to John D. Rockefeller, Sr., who in 1891 began to professionally manage philanthropy “as if it were a business.” He set the style of family giving by specifying that grants would be used “for the well-being of people throughout the world.” Rockefeller Philanthropy Advisors also includes The Philanthropic Collaborative, a special charitable gift fund vehicle managed solely as a service to clients.

About Godeke Consulting
Godeke Consulting (www.godekeconsulting.com) is an independent investment advisory firm which works with foundations, corporations, and non-profit organizations to integrate their financial and philanthropic goals. Founded in 2001, it advises clients on the creation and execution of mission-related investment strategies across asset classes and program areas. Its services include strategy development, due diligence, negotiation, and documentation of mission-related investments, investment manager searches, and portfolio performance measurement. Clients include The Rockefeller Foundation, Robin Hood Foundation, The Conference Board, The F.B. Heron Foundation, The Altman Foundation, Common Ground, The World Economic Forum and corporate clients in the financial services and pharmaceutical industries.