Category Archives: Resources

Phil Cubeta Joins The American College

I missed this news from a month ago and wanted to mention it now. Phil Cubeta, who blogs at Gift Hub, has been named the new Sallie B. and William B. Wallace Chair in Philanthropy at The American College.

The purpose of the chair is to raise the overall level of charitable giving by educating professional fundraisers serving the more than 1 million nonprofit organizations throughout the United States, in particular though the establishment of the Chartered Advisor in Philanthropy certificate program. The program will cover the technical aspects of estate planning, trusts, and charitable giving, as well as the nontechnical aspects of fundraising, including communication and motivation.

The Chartered Advisor in Philanthropy program is the leading certification program for philanthropy advisors. It is offered by The American College, a financial services certification organization, which also offers the very well established Certified Financial Planning (CFP) program (which has become a must have credential in the field). I hold the CAP designation and think that a certification process is an important element to the expansion of the Second Great Wave of Philanthropy.

In 2006, I wrote a chapter titled “The Evolution of the Tactical Philanthropist” for a book called Mapping the New World of American Philanthropy in which I wrote:

As awareness of philanthropic vehicles continues to rise, advisors from many different disciplines must prepare to serve the needs of the new breed of Tactical Philanthropists. Just as falling costs and increasing wealth attracted a flood of new investors into the financial markets during the 1990’s, the falling costs and increase in philanthropic capital will spur on the rising tide of donors who want to structure their giving in the most efficient way. New technology will allow some donors to achieve their goals without much professional guidance, but unprecedented demand will exist for advisors who can help clients navigate the complex world of charitable giving.

Donors now consult with a broad array of advisors such as lawyers, accountants, financial advisors, and nonprofit planned giving officers. Unfortunately it is difficult to judge the quality of advice they receive because professional philanthropic credentials for such advisors are still being developed. Accountants must earn a CPA designation, lawyers must pass the bar, and doctors must get a medical degree, but there is no “must-have” credential for philanthropic advisors. In response, the American College, which administers the well-regarded Certified Financial Planning program for financial advisors, launched the Chartered Advisor in Philanthropy program in 2003. As of this writing fewer than 200 individuals across the country have completed the program, but it is a substantial first step toward creating a new generation of advisors to give tomorrow’s Tactical Philanthropist the advice they need to make sense of the complex world of philanthropy.

I think the CAP credential process is very good. My main criticism would be that the majority of the study material treated philanthropic planning as a type of tax planning. While tax planning is an important element of philanthropic planning, it should not be the tail that wags the dog. When I examine the “philanthropic planning” offered by most wealth management companies and look under the hood, I generally find nothing but an attempt to leverage the charitable tax code to maximize personal wealth. But philanthropic planning should be so much more than that! What about the mission of the client? Why are they giving and what are they trying to achieve?

Phil Cubeta and I don’t see eye to eye on everything. Long time readers of this blog know that he and I made it a habit to spar over various issues in some of the very earliest posts I ever wrote. But I can think of no better person to shape the future of the CAP program. We can absolutely count on Phil to shake things up, to demand better and to honor the deep human values that drive philanthropy.

Congratulations to The American College for having the guts to bring Phil on board. They’re lucky to have him.

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GiveWell in the Chicago Tribune

The Chicago Tribune has a long article about GiveWell on the front page of their business section today. I’m amazed. It is really wonderful to see an innovative startup like GiveWell get written up in the mainstream press.

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All The Links That Are Fit To Click

The coolest part of the newly redesigned Tactical Philanthropy is nothing that I write. The coolest thing is the new feeds of blog posts, news stories, videos and opinions that reside in the far right column. If you’re reading this in a feedreader or via email, click here to come see the actual site and the new redesign.

In the feeds now:

  • Hacking Philanthropy
  • A podcast about microfinance
  • A brand new philanthropy blog that is pioneering a whole new model for the sector
  • A simple, but breathtakingly effective fundraising video that might make you cry
  • An eBay sponsored microfinance website
  • An article why nonprofits are going to start paying their “volunteers”
  • A great video from the Global Philanthropy Forum with the speaker invoking Martin Luther King
  • A (not quite) magical way to help Delaware
  • Why fantasy sports are going to transform philanthropy
  • The slingshot fund
  • Why Jewish philanthropists are about to change everything
  • A site that let’s you bet on the future and give to charity
  • A new investigative journalism project, being run as a nonprofit
  • A study showing tech companies give more to charity than everyone else
  • An argument that without philanthropy, economic systems would all collapse
  • And an Audacious Idea

I can’t possible write posts about all this stuff, but you can keep up with the cutting edge of philanthropy by staying on top of the new feeds.

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Foundation Center Blog

The Foundation Center has been publishing Philanthropy News Digest for some time. Now they’ve launched a blog called PhilanTopic. Recent posts have discussed the Giving Carnival, Stephanie Strom’s controversial article about the tax breaks for charitable gifts, and the impact of 9/11 on philanthropy.

Check it out.

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Top Five Ways to Know Everything About Philanthropy

Philanthropy is changing fast. We’re use to technology changing fast, and business, and politics. But philanthropy? The philanthropic sector began seeing an increase in the rate of change during the 1990’s, fueled by for-profit entities entering the field and the emerging influence of the internet. Things came to a head in the early part of this decade and now the community-focused nature of Web 2.0 has turned up the heat in the community-focused field of philanthropy. We are now seeing the growing power of The Second Great Wave of Philanthropy.

So how do you keep up with all the change? If you don’t want to be the last foundation to hold a conference in Second Life (or don’t even know what that means). If you aren’t ready to explain why an organization like Green Dimes can improve the world more and faster as a for-profit than as a nonprofit (or don’t even know that Google.org is a for-profit foundation). If you’re not LinkedIn, ego searching and getting Xigi with it (or think that sounds like your teenager talking). Than this post will show you the Top Five Ways to Know Everything About Philanthropy.

  1. Start reading the blogs: Most people think of bloggers as people who have an opinion about something. That’s true, but bloggers in niche areas like philanthropy (which does not have much mainstream media coverage) also act as your personal crack research team. Reading blogs will lead you to great articles and research from such mainstream sources as the New York Times and such obscure, but important sources as Angela Eikenberry of Virginia Polytechnic Institute and State University. The Chronicle of Philanthropy’s Give & Take blog offers a daily round up of important blog posts as well as links to just about every blog in the sector. If you read the blogs, you’ll stay up to date. If you enter the blog conversation (via posting comments, emailing the authors or even… gasp… starting your own blog), you’ll find yourself making a ton of new contacts and building your network.
  2. Get LinkedIn: If you work in the nonprofit or philanthropy field then I’d guess you’ve been to one or two conferences. You hear great presentations, meet neat people, then get back to the office and file your notes away. The info you learn at conferences might stick with you, but what about all those people? If you’ve got an email address you can use LinkedIn, a social networking site for “grownups”. Rather than being used to share your silly photos from last weekend, the way most social networking sites are used, LinkedIn let’s professionals connect with each other and each other’s contacts. Think Six Degrees of Separation and you’ll understand why my relatively small network includes 180,600+ people. What can you do with this network? Ask questions to the group and get answers from experts, find a new job, hire someone, and stay in touch with that super smart consultant you met at that conference you can’t remember the name of anymore.
  3. Use Google Alerts: Want to stay on top of trends, your organization’s reputation, or a specific topic? Until we have 24-hour, philanthropy focused news (which we’ll see in the next decade, seriously), you can use Google Alerts. This super simple, email powered service scours news sources, websites and blogs for any mention of the words you specify. You’ll have links and summaries delivered to your inbox the instant your topics show up, once a day or once a week. In a world where information is worthless and relevant information is priceless, Google Alerts helps you focus in on what is most important to you.
  4. Get Xigi With It: Are you on the map? In their own words, “xigi (pronounced "ziggy") is a social network providing market intelligence and mapping tools to make sense of the capital market for good.” Xigi let’s everyone and anyone find the connections between various players
    in the fields of philanthropy, social enterprise, and the other
    constantly evolving fields of “doing good”. Find the people and
    entities participating in the philanthropic capital markets and
    identify the deals they’re working on together. Try browsing the
    various member of the network and you’ll quickly find people and
    organizations you’ve never heard of who are working on amazing projects.
  5. Uh… Read Books: OK, I hate when people say things like, “This changes EVERYTHING!” The impact of the internet and web 2.0 technologies on the social sector is huge, but it is just beginning to be felt. If you really want to be well informed, you need to be well read… of books. The ability of anyone and everyone to put their thoughts online is great. But if you want thoroughly researched, deeply explored ideas by established experts, nothing beats books. You can find a great list to start with here. The list was put together by philanthropy bloggers, that crack research team I was telling you about.

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Philanthropy Radio on NPR Member Station

National Public Radio member station WXEL has a show called Fundraising Success. Since they launched a couple of months ago, they have featured Peter Panepento of the Chronicle of Philanthropy’s Give & Take blog talking about various philanthropy and nonprofit blogs. This week, Peter brought me on the show to talk about Tactical Philanthropy. You can find podcasts of archived episodes on WXEL’s podcast website. You can hear my interview by clicking the play button next to the July 15, 2007 episode. My segment begins at the 47:16 mark and runs about 10 minutes.

Peter profiled this blog back in May and in various other episodes has talked about:

Most bloggers use a combination of Google Alerts, Technorati and some sort of blog stat program (I use MyBlogLog) to keep on top of when their blog is mentioned online. I don’t know of any program that can track audio mentions. Since no one has blogged about Fundraising Success that I know of, I assume the bloggers being talked about are unaware of the show.

Does anyone know of any other audio or video programming that has mentioned philanthropy blogs? If so, let me know. I guess it still takes good old fashion word of mouth to stay on top of these mediums. Or maybe Beth Kanter will save the day and point us all to a nifty new gadget that makes things easier (Beth Kanter: The Batman of nonprofit technology! “Where does she get all those wonderful toys?").

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Tactical Philanthropy Podcast: Clara Miller

Today’s interview is with Clara Miller. Clara is president and CEO of Nonprofit Finance Fund. NFF helps nonprofits match their passion and dedication with financial strength and sustainability. They provide impartial analysis, and flexible, frequently unsecured financing that nonprofits typically can’t get from other sources. Clara was voted one of 2006’s Power and Influence Top 50 by the Nonprofit Times. She has written and spoken extensively on nonprofit capitalization, and is the author of a number of articles on the subject.

I just got back from the Council on Foundations conference where I saw Clara speak. In this interview she explains the challenges that nonprofits face when trying to grow and how NFF is able to finance their expansion.

Expand this post using the link below to read the transcript.

Read More »

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Keeping the Discussion Going

The moderator of almost every session I’ve attended here in Seattle has begun by saying that they really wanted the session to be discussion rather than just having speakers talk at the crowd. All 100+ people in the room would nod their heads and then a traditional conference format unfolded with a Q&A at the end. Conference sessions simply aren’t the place for a discussion. There’s to many people and too much authority vested in the speakers for any real conversation to emerge. But discussing the topics raised at the conference is what blogs are for.

As conference participants head back to their respective foundations, remember that online the discussion is really heating up. Did you enjoy the session “Changing Poverty Through Profit”? Did you know some people refer to this set of topics as Micro Loan Sharking? Were you interested in the mission aligned investing concepts that came up in a number of session? The online discussion of foundation investment policies held here in January was called “unprecedented” by the Aspen Philanthropy Letter. Did Clara Miller and Nancy Roob get you thinking about growth capital and scaling nonprofits? Listen to my interview with Clara Miller that will be posted tomorrow and then leave your comments or questions. Is your foundation experimenting with transparency? Let me know what you’re doing and I’ll showcase your project.

At the end of the Demonstrating Impact session, Mark Sedway had a stack of written questions from the audience that had not been answered. He announced that he would be posting them at the Philanthropy Awareness Initiative and asking the panelists to blog their answers. You don’t have to wait until next year to learn more about the subjects we’ve all explored over the last few days. The information capabilities of the web are already being utilized by a number of people to learn and discuss philanthropy. Spend some time on the blogs I list in the right-hand column or at least use the Chronicle on Philanthropy’s Give and Take blog to stay on top of the discussion.

Last night, Jeff Martin, who had invited me to attend the conference and two foundation staff members, got into a debate about foundation payout rates. It was a good debate, with the two foundation employees holding diametrically opposed views. I told Jeff that he should invite them to record a podcast (online audio) and post it to the Council on Foundations website. Everyone thought is was a good idea. It would take about 20 minutes and cost about $20 or less to make happen. These tools are available, they’re effective and cheap. Nonprofits have been quick to start using these tools. Now it is time for Council on Foundations members to do the same. I believe deeply that we are witnessing a Second Great Wave of Philanthropy. I see the way that technology has revolutionized many industries including the financial services industry that I work in. The time is now for philanthropy to embrace information technology and accelerate the cultural significance of philanthropy as a defining aspect of the early 21st century.

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Demonstrating Impact: Philanthropy’s Urgent Call to Action

Before I came to Seattle, I told my readers that they could assign me to cover the sessions they found most interesting. Holden Karnofsky, whose project GiveWell he refers to as The World’s First Transparent Grankmaker, dropped me the following note:

To me [Demonstrating Impact: How Foundations Can Show Their Value] is the one that you most have to go to. You have argued consistently (and strongly) for more foundation transparency. You should ask the foundations the questions you pose in your posts: why not share everything they have on a website? Why not publish things that are currently “internal,” like evaluations of specific charities (as opposed to “overall programs”)? Why not blog?

Mark Sedway, director of the brand new Philanthropy Awareness Initiative, had shot me an email last week encouraging me to attend. Reading the description of the session it looked like a class on how foundations can engage in better PR.

I was wrong.

Demonstrating Impact was an incredible session. The room was packed, every corner of the room full of people pressed against the walls and people outside trying to poke their heads in through the doorways. I have over five pages of single-space, type written notes. What I want to share with you isn’t just a blog post. I’m going to have to figure out how to put this all down on paper in a more comprehensive way, but I’ll share some highlights now.

The panelists were:

  • James Canales, CEO, The James Irvine Foundation
  • James Knickman, CEO, New York State Health Foundation
  • Joel Fleishman, author of The Foundation: A Great American Secret

The discussion was nominally about how foundations can do a better job letting influential Americans and the general public know about the good work they do. But at the root of this is a discussion about identifying and measuring the impact of foundation grantmaking. And at the root of that is a discussion about transparency and the sharing of information about what works AND what doesn’t work.

Yes, foundations do great things and most people don’t understand the magnitude of these good works (the very existence of emergency 911 service is attributable to the Robert Wood Johnson Foundation, Fleishman pointed out). But what I found so incredible about the session was the advocating for communication to be designed right into the program strategy from day one. Fleishman talked about The Wallace Foundation and how they do grantmaking in teams with Program, Research and Communications all taking part in strategy design from the beginning.

To me the most important part of Fleishman’s message, the most important message of the session and maybe the conference, is that transparency is NOT about public accountability, it is about improving the sector of philanthropy. It is about improving the way that all of us do our jobs. It is about transforming ourselves from a series of silos to an integrated, robust intellectual capital platform upon which all future grantmakers, big and small, can draw.

Sharing the good works of philanthropy is not enough. A good bit of debate centered on how and why foundations should share their failures as well. To me the issue of why failures should be shared, and why doing so is not a risk for the organization if handled correctly, was nailed by James Knickman:

“We need to frame our release of “failures” as an attempt to learn. No one tells scientists they are a failure when one of their experiments don’t work!”

That’s it right there. What philanthropy is engaged in is an experiment. An experiment in how we can all make the world a better place. We don’t know what the right answer is. In fact, the “answer” is probably evolving as quickly as we can design experiments. But by being transparent, by sharing successful ideas and failed ideas. By judging ourselves not on the outcomes of each grant, but on the body of knowledge that we contribute to the field, we will truly transform philanthropy.

Knickman gave as an example a project that The James Irvine Foundation did on end of life care (if readers know more about this project, email me the relevant links) (see correction). He called it “the most successful failure I’ve ever seen”, because it really changed the way people approached the issue since the project really seemed like it should have worked.

Humans don’t like to talk about their own “failures”. But halfway through the session, someone from the audience who identified herself as a professor of marketing stood up to say that people who admit their mistakes publicly are viewed with more trust afterwards. We need to reframe transparency away from some sort of thing that philanthropy is being forced to consider by outside forces and instead celebrate transparency as the mark of an organization that is truly committed to improving the field.

I’m writing furiously in a Starbucks with a half eaten sandwich next to me. I have another session I have to attend soon. The great thing about blogging is that there is no page limit and there is no final draft (the same could be said of philanthropy). I wanted to get my first impression of the Demonstrating Impact session down while it was still fresh. I’ve completely ignored important themes of the debate that I can’t cover right now. But I’ll be returning to this topic frequently.

Thanks for reading.

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Clara Miller

Clara Miller is the CEO of Nonprofit Finance Fund. On Wednesday, I’ll be releasing a podcast interview I recorded with her a couple weeks ago. Yesterday she sat on a panel with Nancy Roob, president of The Edna McConnell Clark Foundation to discuss “Linking Money to Mission: Structuring Your Grants to Promote Grantee Performance”.

This was my favorite session so far. Clara challenged the notion that nonprofits need to “scale”, get bigger, to be most effective. She pointed out that since nonprofits, by definition, lose money on every “sale” they can’t make up the losses by doing more volume. Instead, in order to get larger, they have to grow both their core business as well as their subsidy business, the fundraising that they do in order to continue an unprofitable business.

Her point, and the message of Nancy Roob, was to discuss how grantmakers can support nonprofits by supplying the growth capital they need to scale. I took away a more general message about which kind of nonprofits philanthropists should even attempt to help grow. Clara mentioned a paper written my her colleague George Overholser, Building is Not Buying:

Building an enterprise is fundamentally different than buying services from that enterprise. And yet, standard nonprofit accounting sheds no light on the building vs. buying distinction. George Overholser believes that this missing distinction is a major reason why a market for nonprofit growth capital has failed to materialize. The good news is that the system can be fixed more easily than one might expect.

When thinking about the difference between a great nonprofit that should simply be funded and one that should be given growth capital, Clara suggested we consider a neighborhood diner that served an incredibly good breakfast menu. Should it scale up? How many national chains serve an incredibly good breakfast menu? Not many, quality is difficult to scale. In this case, the customer should be content eating at the diner (funding its annual needs), but not provide growth capital to open new locations.

I’ve asked for a copy of the presentation to be emailed to me. If I get it, I’ll post some of the relevant slides. The last page of the presentation was four simple tips for grantmakers on how to structure grants. If you’ve been reading GiveWell, none of them will be a surprise, his advocacy of ignoring overhead cost ratios and making unrestricted grants mirrored Clara’s suggestions exactly.

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