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.

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.

In a sharp break from past practice, major charitable foundations are initiating or strengthening efforts to harmonize the social and environmental effect of their endowment investments with their philanthropic goals.”A head of steam has been created around the issue of ‘mission-related investing,’ ” said Douglas Bauer, senior vice president of Rockefeller Philanthropy Advisors, which consults with foundations. “More and more foundations are wrestling with the issue.”

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When casting about for ways to spend on others at this time of year, people whose hearts are as big as their appetites turn to food-related charities. But figuring out where to direct help can be complex, especially in an era when tens of thousands of such programs exist.

Charitable groups dedicated to saving farms from bankruptcy or delivering vegetables to poor urban neighborhoods have popped up in recent years. So have groups that build organic gardens in struggling school districts or protect endangered indigenous foods like the O’odham pink bean.

Then there is the question whether to go local and support the food pantry in your neighborhood or get global and become, say, a microlender with kiva.org, where your money might provide a low-interest loan to a yam seller in Ghana.

Sifting the options can be daunting. So philanthropy experts suggest starting with some introspection.

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By: Kathy M. Kristof, Los Angeles Times Staff Writer

You know the holiday season has begun when the Salvation Army kettles start appearing at malls and grocery stores. This is the busy time of the year for charities in general, when about half of all donations made by Americans are given out.

“The October-through-December corridor is the big giving time,” said Bennett Weiner, chief operating officer of the Better Business Bureau’s Wise Giving Alliance. “Charities want to get a donation before the year is out and when the holiday spirit is in. Donors are interested in the same thing — and about being able to claim a tax deduction.”

But giving to charity isn’t just about parting with some money. You also must decide which organizations should get your money. And ideally, you’d like to know that those precious dollars will be well spent. With pressing needs all around and more than 1 million charities to choose from, how can philanthropists ensure that they’re getting a decent bang for their buck? Here are some tips from the experts.

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There was a nasty surprise waiting for Troy Wiseman in Zambia. The founder of InvestLinc, an investment and wealth-management company, flew into that African nation in the summer of 2005. On the agenda: taking Zambia’s first lady on a tour of several institutions financed by his charity, World Orphans. Unfortunately, the orphanages seemed not to exist. Nor could Wiseman locate the supervising pastor, to whom he had wired almost $70,000 over the past year. After half a dozen phone calls failed to clear things up, Wiseman made his apologies to the president’s wife and headed anxiously back to Chicago.

The Zambia debacle was especially troublesome because World Orphans had recently begun soliciting outside donations. What if this wasn’t an isolated situation? Wiseman wondered. How could he pitch his organization to donors if it was beset by fraud? So he hired a veteran philanthropist, Paul Myhill, who visited 53 of the charity’s 400 sponsored orphanages and compiled a detailed report. It painted a grim portrait. Many of the orphanages were poorly maintained or were being used as old-age homes. Some had never been built. Wiseman estimates about half the projects Myhill visited did not fit the mission statement. About 20 turned out to be outright frauds.

Many entrepreneurs reach a point in their lives when, having tackled the problems of customers, employees, and industries, they are tempted to take on the world’s ills. Inspired by the likes of Bill Gates and George Soros, some launch philanthropies aimed at providing aid to developing nations. They assume that the skills responsible for their for-profit successes will translate easily into the nonprofit realm.

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By Terri Rupar
Washington Post Staff Writer

At a bar in Adams Morgan on a recent Saturday night, Miss D.C. USA was cracking jokes onstage when she was joined by Mahmoud Ahmadinejad, Mike Ditka, Ron Burgundy from “Anchorman” and Milton from “Office Space” — or, at least, their mustachioed look-alikes.

Young revelers had paid a $10 cover to get into the bar for a charity event called the Glorious ManPageant. The evening was organized by the Society of Mature Adults Seeking to Help, Entertain and Donate, known as SMASHED. It raised $3,500 that went to Capital Queen for a Day, a local organization that sends beauty pageant contestants out to hospitals to host special events for pediatric cancer patients.

While many of the patrons showed up mostly for the mustaches and beers, SMASHED was quite serious about where their contributions would go. It takes a careful look at the groups it singles out for donations. Kate Larned, 29, a charity coordinator for SMASHED, said the organization compiles as much information as possible on each charity it chooses.

With about 1 million charities worldwide, it’s important to carefully vet the organizations you select for your donations. Matching your heart to the right group can be complicated and time-consuming. And giving to a charity that turns out not to satisfy your goals or, worse, makes off with your money can sour the experience.

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Last February, Jerry Yang and his wife, Akiko Yamazaki, pledged $75 million to Stanford University for a variety of programs. Two-thirds of their gift will go to build a new environment and energy site. The balance will go to the medical school.

Like other prominent Chinese-Americans, Mr. Yang, who is the chief executive of Yahoo, is loyal to his and his wife’s alma mater and enthusiastic in its aid. The fact that the beneficiary is a university is emblematic of what Chinese-Americans have accomplished as they have moved into the realm of multimillionaires and billionaires. Influenced by the Confucian respect for the importance of study, they have viewed American universities as the way up the ladder to success.

And now second- and third-generation Chinese, and even some of the newer immigrants, are broadening their reach beyond education and the arts to social services. Or they try to wrap both agendas together — like helping poor Chinese get a better education in the United States.

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By: Mike Foster

Paul Dickinson, chief executive of the London-based Carbon Disclosure Project, has spent seven years persuading institutional investors to back his efforts to convince companies to disclose carbon-emission levels. Today, institutions managing assets valued at a total $41 trillion are backing the project.

The not-for-profit initiative has been financed by family endowments, led by Rockefeller Philanthropy Advisors, and won the support of former U.S. President Bill Clinton, who said at its September conference that you can never get a handle on the way companies cut emissions without measuring what they produce at the outset.

The Carbon Disclosure Project is an independent lobbying organization that works with 315 institutional investors and 2,400 of the world’s largest companies to focus on reducing carbon emissions and energy consumption.

It surveys participating corporations about emissions accounting and management, regulation and changes in technology. It also keeps a database on corporate greenhouse-gas emissions. In its most recent survey, for instance, the initiative found that total greenhouse-gas emissions reached nearly seven billion tons of carbon dioxide, more than 50% of which is accounted for by FTSE 500 publicly traded companies.

Mr. Dickinson says he is encouraged by the European Union’s decision to put tough second-round emissions standards in place after being too generous with permits in the past.

As carbon taxes and regulation are introduced, accounting bodies will start to audit corporate emissions, and Mr. Dickinson is preparing for the change. “The authorities, including the U.S. Environmental Protection Agency, have started to pick up on our work,” he says. “It will only be a matter of time before accounting bodies realize we are measuring issues that will affect future profitability.”

Accounting scrutiny for carbon emissions is likely to mimic recent events in the pensions sector. When schemes were relatively small and liabilities stretched into the future, accountants could overlook their economic impact.

When liabilities started maturing, making a material impact on near-term profits, accounting standards boards started telling companies to report on their funding positions in a disciplined fashion.

When the initiative started in 2000, Mr. Dickinson had strong support from Chairman Tessa Tennant, who started Jupiter Asset Management’s socially responsible investment initiative. Ms. Tennant is now chair of the ICE Organization, which aims to encourage individuals to grasp the importance of limiting emissions.

Kicking off with Legal & General Group PLC, Mr. Dickinson and Ms. Tennant persuaded a growing number of institutions to back emissions disclosure. Companies were asked how many tons of carbon dioxide they either produced or bought through energy purchase. They were also asked to calculate the amount produced by other activities, such as business travel.

At first, Mr. Dickinson was infuriated by the lack of response, but as concern about climate change grew, more companies started filling in its surveys, vetted by third-party environmental groups.

By 2003, Ms. Tennant said, more companies started to respond. “There’s nothing like peer-group pressure. For companies to see what their competitors are doing is a great spur to action,” she said.

The latest Carbon Disclosure Report issued in September on the world’s 500 largest publicly traded companies revealed that 77% of them had answered the questionnaire, up from 72% last year. Of these, 76% had initiated an emissions-reduction program, up from 48% in 2006.

Mr. Dickinson believes corporate initiatives will multiply following the decision of some of the world’s largest retailers and manufacturers to ask their suppliers to provide data for the Carbon Disclosure Project. “We have just signed Wal-Mart, and it has agreed to write to 68,000 suppliers,” he said.