Community Foundations News Feed

Innovative models of community philanthropy cited in new report

Thu, 01 Mar 2012 12:00:00 GMT

By SHEILA BEACHUM BILBY

Community philanthropy is offering new ways for ordinary people using their own money, time and muscle to help fix problems and bring about deep-rooted change in their local communities, according to a new report, “The Value of Community Philanthropy: Results of a Consultation.”

Rather than relying only on outside help and external resources, people in local communities worldwide are increasingly putting into practice a philosophy of “taking what we have to build what we need” to create inclusive and equitable societies, according to Barry Knight, who authored the report.

“The Value of Community Philanthropy: Results of a Consultation” is available at no cost online.

Available online at no cost, the report examines the evolving field of community philanthropy worldwide and explores ways to support it as a means of helping build civil society and leverage the effectiveness of development aid.

The Charles Stewart Mott Foundation and the Aga Khan Foundation USA, with help from the Global Fund for Community Foundations, brought together leaders in the field for three roundtable discussions held over a year’s time that focused on community philanthropy. The subsequent report synthesizes the results of those consultations conducted in Washington D.C. in September 2010, Johannesburg in June 2011 and Dhaka, Bangladesh, in September 2011.

“Community philanthropy has the potential to transform the landscape of aid and philanthropy because it transforms communities from passive recipients to active partners in fulfilling their dreams,” said Knight, who facilitated the consultations.

Community philanthropy already is being practiced daily worldwide, from the U.S. to Asia to Africa and beyond. In Nepal, for example, Tewa (Nepali for "support") has been working for the past 15 years to train women to help raise money locally to be used to support small community development groups. The goal is to help create sustainable development without relying on foreign aid. To date, Tewa has 3,000 local donors and has raised a permanent endowment of 46,068,715 rupees, or roughly $589,689 in U.S. dollars.

But the next step, the consultation collaborators agree, is to collect the data and evidence that will help bring community philanthropy, working hand-in-hand with community foundations, recognition as an effective development strategy. Further, they say that community philanthropy needs to have an ongoing role in good development, not just an add-on part.

The Mott Foundation has long sought to help develop community foundations in the U.S. and around the world as a way to connect individuals with their communities. Indeed, Mott’s long-term support helped the number of community foundations almost double worldwide from 2000 to 2010, with 1,680 such foundations listed in 2010.

Barry Knight

But, increasingly, Mott became convinced that community philanthropy, though underdeveloped, has the potential to become what the report calls a “game changer” in building civil society — not only because it offers greater long-term sustainability but also because it is a powerful form of civic participation.

If successful, the report concludes, community philanthropy “leads to more lasting, entrenched outcomes by increasing local ownership and local accountability.”

While the traditional model in philanthropy has been wealthy people working from the top down, community philanthropy turns it upside down. Ordinary people work from the bottom up — donating their money, time and effort — to tackle local issues, with the potential to “help to solve some of the deeper problems in our society, such as poverty, racism and gender inequality,” the report notes.

The report suggests that the field of community philanthropy should be developed so “it can more effectively partner with foundations and development agencies.” To build capacity, it notes, there should be a joint program to “strengthen the infrastructure, build key links between partners and enhance technical features such as definition, performance and evaluation” while working to expand the pool of funders and inform development-aid practitioners about the value of community philanthropy.

The potential of community philanthropy to promote partnerships both within groups and across groups in local communities is rooted in one of its key tenets: “Help the other, but also help the other to help the other.”

Helena Monteiro explains WINGS' role in philanthropy

Tue, 10 Jan 2012 12:00:00 GMT

The Worldwide Initiative for Grantmaker Support (WINGS) was formally established in 2000, the same year the Charles Stewart Mott Foundation made its first grant to the organization. To date, Mott has provided seven grants, totaling $2.2 million, for WINGS’ support. During a recent visit to Mott’s home office in Flint, Michigan, Helena Monteiro — who became WINGS’ executive director in January 2011 — sat down with Communications Officer Maggie Jaruzel Potter for a brief chat. What follows is an edited version of that interview.

Helena Monteiro

Would you share a bit of your personal background?

Helena Monteiro (HM): I’m Brazilian-Canadian. I lived in Brazil until I was 24 and then moved to Canada. I’m an educator by training and did my graduate studies in social work. I’ve worked locally, nationally and internationally, but more on the grantee side of international development. I worked for nonprofits in Canada for 16 years and with the United Nations in Washington, D.C. for two years. I moved back to Brazil in 2005 and, since then, have been working in philanthropy — family, corporate and individual philanthropy.

What is WINGS’ role in the field of philanthropy?

HM: WINGS is a network of networks in philanthropy. Our mandate is global.

We are the only truly worldwide network representing and serving the broad community of grant makers, foundations and philanthropy-support organizations. With members and affiliates in every region of the world, WINGS convenes a diverse community of leaders with a wide range of grounded knowledge and experience in the field of global philanthropy.

The mission of WINGS is to strengthen philanthropy and a culture of giving through mutual learning and support, knowledge sharing and professional development among its participants. In so doing, WINGS gives voice and visibility to philanthropy at a global level. The vision of WINGS is to grow a strong, global philanthropic community that works to build more equitable and just societies around the world.

Why did WINGS’ leadership decide it was time for the organization to have a permanent home?

HM: WINGS was only incorporated in 2010. Before that, WINGS did not invest in a highly formalized institutional structure, but rather worked with and through its members, serviced by a small network secretariat that was hosted, in turns, by member organizations in North America, Europe and Asia. With the growth of WINGS and its program, the decision was taken in 2010 to incorporate WINGS as a fully fledged, nonprofit membership association with offices in Sao Paulo, Brazil. In 2011-2012, WINGS is bolstering its own sustainability through the introduction of membership fees. Currently, we have 147 network participants in 54 countries on every continent except Antarctica.

What has been the reaction to WINGS’ move to Brazil as its permanent home country?

HM: It may be the first time this nation is hosting an international organization that is not actually working in Brazil, but is working globally. The Brazil philanthropic community is thrilled about having WINGS based in their country because there is a lot of philanthropy development in Brazil now. For WINGS, it was very important that it be based in the Global South because there are already enough support organizations in the Global North. With its roots in the Global South now, it will surely be representing philanthropy groups there and developing contacts in Latin America, Asia and Africa.

What are the emerging regions or countries in the field of philanthropy?

HM: China is certainly a new frontier in philanthropy. It is growing fast with more than 2,000 foundations so far, but it’s too early to tell how it will take form and shape; same for the other BRICS countries [Brazil, Russia, India, China and South Africa]. WINGS will be working with the China Foundation Center in Beijing, which was greatly inspired by the Foundation Center in the States. They are doing amazing work there. We are also seeing a lot of development in Africa. As for the Arab region, there are a lot of changes happening that are in the news lately. Actually, there’s been quite a lot of movement in the field of philanthropy around the world in the past year.

Briefly discuss WINGS’ connection with the Foundation Center.

HM: Philanthropy is growing and gaining visibility around the world. There are new actors and new approaches to giving. The rapidly changing situation of global philanthropy makes the task of developing a simple and effective global-data platform for philanthropy an urgent one.

Recognizing this need for improved data on philanthropy worldwide, WINGS and the Foundation Center are working together to build a global-data platform and to promote common global-data standards for philanthropy. We will collect data on philanthropy in various regions of the world and make it available to the public and build a culture of data management, while promoting data standards by WINGS’ members.

Why is information sharing so highly regarded by WINGS’ members?

HM: In an era in which philanthropy is increasingly recognized as a powerful means to build more sustainable communities, WINGS facilitates dialogue within the global-philanthropy community to strengthen capacity and partnerships for social development. To extend and enrich the global conversation, it builds the capacity of its members to facilitate dialogue in their own countries and regions. In addition, members learn from their peers around the globe; instead of relying only on technical experts, WINGS mobilizes the philanthropy professionals in its network to share their real-life experiences and best practices with each other, bringing the collective wisdom of the networks together to find innovative solutions.

Would you give examples of the peer-learning topics WINGS members are discussing?

HM: The content of the WINGS’ peer-learning agenda is as diverse as its membership, ranging from governance to association and network building, good grantmaking practice, accountability, innovations in measurement of impact and results, investment and fundraising strategies, partnership building, strengthening community philanthropy, advocacy and policy influence, and much more. This is valuable for WINGS’ members, especially because in many countries [philanthropy network] leaders are the only ones in their field, so there are no others to share concerns with or to share ideas and experiences.

What big issues will be facing philanthropy in the next decade and beyond?

HM: When we look at the big issues — hunger, environment, migrations, sustainable development, food security, peace and security, health and education, and democracy building — we see that these issues are growing in the level of concern expressed by NGOs [non-governmental organizations]. These had been seen as regional concerns, but now are seen as interconnected. We’re seeing an advanced understanding of social welfare and well-being.

What do you see for the field of philanthropy when you look to the future?

HM: For WINGS, in particular, we will be seeing new demands from our members. We also will be looking at resources in broader terms, such as in-kind, pro bono, networking, etc. For the field overall, an issue that’s raising concern for our members is the sustainability of support organizations serving philanthropy. At the same time, we’re seeing new forms of philanthropy and new players. These are exciting times for WINGS and for philanthropy overall.

Russian tax law changes make giving to NGOs easier

Tue, 01 Nov 2011 12:00:00 GMT

By MAGGIE JARUZEL POTTER

In Russia, when a charity paid for specialized care for children battling ongoing health issues, such as cancer, their families owed taxes on all services following the first treatment because the contribution was treated as personal income. Volunteers who donated time to non-governmental organizations (NGOs) had their reimbursed expenses taxed as income, and NGOs accepting free advertising were required to pay taxes on the fair-market value of the donated services.

International Center for Not-for-Profit Law (ICNL)

“The taxes for donated services were huge — sometimes bigger than an organization’s annual budget,” said Maria Chertok, director of Charities Aid Foundation Russia (CAF Russia).

That all changed in July 2011 when the Russian Parliament adopted amendments to the tax code that resulted in wide-sweeping improvements for NGOs, including eliminating taxes in the situations mentioned above. The changes were the culmination of a decade-long educational and advocacy campaign by Russian NGOs, which provided input so the laws were crafted to help not-for-profit organizations, their beneficiaries, volunteers and supporters, Chertok said.

In late September 2011, CAF Russia — along with several other organizations, including Russia Donors Forum (RDF) — hosted “Legislation on Philanthropy in Russia and the European Experience.” The Moscow conference was designed to educate those in the philanthropic field about the practical implications of the recently passed legislation and to bring to the attention of experts and government officials the tax issues not yet addressed. It drew about 200 NGO leaders, attorneys, public officials, tax specialists and others interested in the reforms, she said.

CAF Russia and RDF both have received support in philanthropy development through the Charles Stewart Mott Foundation’s Civil Society program. Since 2002, RDF has received five grants totaling $392,000. CAF has received 40 grants totaling $6.8 million since 1988. Of the total, $3.5 million has been earmarked for work in Russia since 1994, including a $1-million grant to build an endowment. (Endowments are long-term investment funds that allow the interest earned to be spent while the principal amount is not touched).

Maria Chertok

By changing several tax laws, some of which already are in effect, Chertok says, the government has formally recognized the important role NGOs play in Russian society.

“For many years, nothing changed in the legislation and it seemed so hopeless. But here we are now seeing results, so there is progress,” she said.

The changes were partly aimed at reducing the tax burden on NGOs so they could become more self-sustaining, said Natalia Bourjaily, vice president at the Washington, D.C.-based International Center for Not-for-Profit Law (ICNL). A native of Belarus, she is responsible for overseeing programs for the Newly Independent States (former Soviet Union countries).

A Mott grantee since 1993, ICNL has received 21 grants, totaling $1.5 million.

On behalf of ICNL, Bourjaily and her colleagues provided informational and analytical assistance to Russian NGOs that helped open the door to this year’s changes, including extending to NGOs the tax exemptions previously available only to public institutions, she said.

For example, before the changes, NGOs that delivered social services — such as care for the elderly or mentally ill — were at a disadvantage when competing with public institutions for government contracts because they were required to pay Value Added Tax (VAT), bumping up the cost of their services. But Bourjaily hopes the legislative reforms will make services provided by NGOs more competitive cost-wise and also encourage more not-for-profit service providers to compete for government contracts.

Natalia Bourjaily

Another newly approved legal change offers tax deductions to individuals who donate to registered charities, religious organizations and other public-benefit NGOs. Russians can now deduct donations that do not exceed 25 percent of their total taxable annual income — even when the money is earmarked for building endowments. Allowing such deductions, Bourjaily says, could help strengthen NGOs’ sustainability in fields such as health care, education, the arts and culture.

“What I’ve learned is that deductions really do matter, although they influence more big donors to give than the average person,” she said.

But the tax deductions do not apply to all Russians with high incomes because those who generate money from interest and dividends instead of a regular wage are ineligible, Bourjaily says. That exclusion will be targeted in the next round of reforms, she says.

Most of the July 2011 tax law changes do not apply to businesses either, Bourjaily says, so they also will be highlighted in future tax law campaigns. In the meantime, she and her ICNL colleagues plan to stay busy hosting informational meetings and trainings about these recent legislative changes.

“We focus on legal issues for civil society organizations,” she said. “We believe in building local capacity so whenever new legislation is adopted we inform lawyers, government officials and NGOs about what it is and how they can comply with it.”

Vital Signs of Canada measures cities' quality of life

Mon, 25 Jul 2011 12:00:00 GMT

Vital Signs® is an annual community check up conducted by community foundations across Canada that measures the vitality of cities, identifies significant trends and assigns grades in at least 10 areas critical to quality of life. Vital Signs is coordinated by Community Foundations of Canada, a C.S. Mott Foundation grantee.