The Family Foundation CEO: Crafting Consensus Out of Complexity written by Virginia M. Esposito, founder and president of the National Center, is based on input from executives and attempts to create some consensus on topics such as how to conduct a successful leadership search, the qualities of an effective leader, the ideal relationiship between the board and the CEO, and other leadership issues. Apparently there is a need for such standards, as the report states that about 80% of CEOs had no orientation to their new position, the field, or the board and family. Esposito also talks about the family member as CEO and special circumstances attendant to family staff leadership, such as the difficulty in conducting a review of family members. Another helpful chapter reveals the “board chair point of view” and outlines five themes for CEO effectiveness, such as the ability to understand family culture and dynamics.

The next three reports are written by Susan Crites Price, former V.P. of the National Center. The first, Help Wanted: The Complete Guide to Hiring a Family Foundation CEO examines the search process more in-depth, and tells how to form a search committee, conduct interviews, and compose job descriptions. Price reveals that one topic that is often “tiptoed around” is family culture and dynamics. Trustees want to put their best foot forward and don’t want to say “our family doesn’t play well with others.” Talking openly about this topic with individual board members during the interview process, including nonfamily members, is quite helpful.

The First Year: The Complete Guide for New Family Foundation CEOs and their Boards of Directors focuses on the initial year of a CEO's tenure at a family foundation, and offers practical advice for a smooth transition. Price discusses how to develop strong board/staff relations, suggests ways to learn about the foundation, the grantees and the community, and emphasizes that the top priority of any incoming CEO is getting to know the family. She stresses that a CEO “can’t make a single move on program until [they’ve] done that.” Price also recommends that incoming leaders "check egos at the door," explaining that many executive directors “flame out … [when they place their] ideas, passions, and needs before those of the family.”

Lastly, Performance Review: The Complete Guide to Evaluating the Family Foundation CEO shows how boards can effectively evaluate their chief executives. This volume is more of a workbook, and includes board review documents and evaluation worksheets, as well as a year-long goal setting plan for career development. The centerpiece is the Career Development Plan provided by the Knott Foundation, which is very detailed with specific goals, action plans, metrics, and timetables that can provide structure to the incoming CEO’s first year on the job.

Taken as a whole, all four guides (found under call number 514 in all Center libraries) should be enough for any family foundation to familiarize themselves with the process of hiring, orienting, evaluating, and keeping a good CEO on board. Other works at Foundation Center libraries targeted at family foundations include the popular Family Foundation Handbook (CCH Incorporated, 2011) and the bimonthly periodical Family Foundation Advisor at the New York Library. Both give advice on a host of legal, administrative, and financial issues.

--Rob Bruno
Catalog/Reference Librarian
The Foundation Center

The Center for Rural Development's Rickshaw Bank Project enables rickshaw pullers in India (over 8 million of them) to own the rickshaws they pull, and gain access to loans and insurance guarantees to raise themselves out of poverty.  Schwartz states that the project “has three dimensions that mimic the wheels of a cycle rickshaw….technical, financial, and … social.” Technically, the project helped redesign the rickshaws so they are 40 percent lighter and more ergonomic, making them easier to drive and ride. Financially, drivers can now make payments instead of rental fees so they can eventually own their rickshaws and make a better living down the line. Socially, the project has created a “loose association” which the drivers are proud to belong to, and feel like the are doing more than just surviving.

In Nigeria, Schwartz profiles a "toilet entrepreneur” that has created mobile toilets for a population that lacks private or any type of toilet for public usage. She discusses how Isaac Durojaiye created a “holistic vision” of sustainable waste management and is lifting taboos in a culture where toilets are viewed as a luxury.  Mr. Durojaiye came up with the idea after developing a security plan for a wedding and realizing they had only two toilets for 10,000 guests! With no availability of portable toilets anywhere in the country, he decided this was a need he could fill, and created 18 makeshift toilets the crowd could use. This was in 1999, when Nigeria had fewer than 500 public toilets (for a population of over 170 million); today, there are more than 5,000 and the government has contracted out 17,000 more to be placed in schools around the country.  Issac now feels his next challenge is to create sustainable solutions for 2.6 billion people in developing countries who do not have access to proper sanitation and are suffering from preventable diseases like cholera.

Schwartz goes on to describe over a dozen more efforts that illustrate the impact of small social enterprise initiatives, many of which can be scaled up to help solve more widespread social problems. Rippling can be found in all Foundation Center libraries under call number 733 SCH.

Other books on social enterprise include Driving Social Change: How To Solve the World's Toughest Problems and Citizen You: How Social Entrepreneurs are Changing the World. GrantSpace also offers a Knowledge Base Article on this topic that includes links to videos, podcasts, and other online resources.

--Rob Bruno
Catalog/Reference Librarian
Foundation Center--NY

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The book is based on extensive research and two generational surveys, one of which was conducted in 2011 and concentrated on Generation X and Y. Some information she provides includes the giving capacity of both generations. Generation X can be recruited for lifelong and annual giving, and as potential future major donors. Millennials, on the other hand, can be relied on mostly for online giving. She also found that while Gen X-ers tend to use giving to accomplish their goals, Millennials use it as a tool to make a difference in the world. 

“Engaging Philanthropy’s Next Generation” (Chapter 3) is the heart of the book and offers practical tips and advice for cultivating donors from these post-Boomer generations. Davis examines when and how much these "Next Gen" donors give, and how they learn about the organizations they donate to (surprisingly, over 80% learn through word of mouth, more than social media and web sites combined). She also emphasizes that younger donors like a good event—whether it is virtual or in-person. Other recommendations she suggests include partnering with young professional groups, walk-a-thons, and peer-to-peer networking to make philanthropic connections. The chapter concludes with a case study of GenNext, a program designed to engage young professionals in their 20s and 30s with the United Way of Greater St. Louis.

The rest of the book covers the use of online communications (with an emphasis on online social media) and using volunteering as a way to recruit these donors. Davis also discusses how to recruit Next Gen board members. Appendices provide many helpful documents, including a social media planning worksheet, a board recruitment plan, and even a blog post template.

Fundraising and the Next Generation can be found in our Atlanta, Cleveland, DC, and New York libraries under call number 743 DAV. Similar online sources include Convio's Next Generation of American Giving and Deloitte's Volunteer IMPACT Survey, which examined volunteerism activities and employee engagement of adults aged 21-35.

--Rob Bruno
Catalog/Reference Librarian
Foundation Center--NY

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The concept of voluntary social action in India dates back as far as Rig Veda, written about 1500 BCE; this sacred text discusses voluntary action and the practice of charity. Indian voluntarism took on a more institutionalized form in the early 19^th century, when Christian missionaries introduced a range of charitable and social development initiatives, such as the building of schools and orphanages.  In 1815, Raja Ram Mohan Roy (who was influenced by these Christian charities) formed the Atmiya Sabha, which later evolved into more formal organizations such as the Ramakrishna Mission, which was unique in the emphasis it placed on social service.

During the colonial period in the early 1900s, a major upsurge began in institutions resembling modern NGOs primarily through the Swadeshi Movement.  This movement created organizations that promoted “self-help in economic and social life” and its objectives were later championed by Mahatma Gandhi, who ultimately proved to be the most influential figure in the development of voluntary associations in India.  Gandhi argued that India’s development was only possible through voluntary action, and his religious beliefs manifested themselves in the philosophy of sarvodaya. His corresponding Sarvodaya Movement was perceived by many as the “guiding star” for the future welfare of India.

After India achieved independence, the number of voluntary agencies increased with support from the government, who viewed them as vital to provide services to areas unreachable by or unattractive to them.  However, the conflict between Gandhi’s grassroots and Prime Minister Nehru's strong government visions climaxed in 1975-1977 when Indira Gandhi declared an emergency period and a number of leaders associated with the Sarvodaya Movement were arrested. The ultimate outcome of this mistrust lead to greater government involvement in and restrictions on voluntary organizations.

Today, NGOs in India are grouped into charity, relief, and welfare organizations,  and are largely supported by and dependent on government funding. A 2003 survey of NGOs in India numbers them at about 1.2 million; a bare majority (51 percent) are registered. Over 10 million households report volunteering with them and the survey revealed that nearly 75 percent are either completely run by volunteers or have only one paid staff member. This makes India more reliant on volunteer labor than many other countries.

So who volunteers?  In Chapter 2 “Who is a volunteer?” an analysis of sociodemographic characteristics of volunteers found that the majority were married, college graduates, members of middle class, and had previously volunteered. While the analysis was largely aimed at the English-speaking population, it did correspond to other studies of international philanthropy that found that volunteers are better educated and well-off as compared to the general population. Another finding reinforced the concept of Seva in service: in a rank-order analysis of volunteer activities, those activities that rewarded the individual (for example, making personal connections or getting a free concert ticket) were consistently ranked lowest in public perceptions of voluntarism.

The book's final chapter offers a look at the latest trends in Indian volunteering, including Internet and virtual volunteering. This development is attracting the technologically savvy youth population, and now many NGOs are taking advantage of virtual philanthropy for activities such as translating, web site management, online mentoring, conducting online research, and facilitating the signing of petitions. It concludes with a handful of narratives representing this new generation of philanthropists, including a profile of a young engineer working through the Pune chapter of DreamIndia,  and a bio of the founder of Aseema in Mumbai, an organization that provides underprivileged children with a productive educational environment.

From Seva to Cyberspace is available in the New York library under call number 366 HAN. For additional reading, try Bain & Company's annual India Philanthropy Report, which provides an overview of individual monetary giving in the country, as well as the Charities Aid Foundation's World Giving Index: A Global View of Giving Trends which includes an examination of attitudes on volunteering around the world. 

 --Rob Bruno
Catalog/Reference Librarian
Foundation Center—New York

The handbook starts with an overview of the tax code, and then examines grantmaking to IRS-recognized charities with activities outside of the U.S., the most straightforward way to fund non-U.S. charitable programs. The guide then discusses the process of international grantmaking through direct corporate giving programs, public charities, and private foundations. I’ll summarize the book’s advice to private foundations as this may be most pertinent to the Foundation Center’s clientele.

Chapter 6, “Grants by Private Foundations” starts out by listing the best options for making grants to non-U.S. organizations, such as making a grant to a donor-advised fund that works with international charities, or making grants to a “friends of” organization.

The process for making grants to non-U.S. organizations not recognized by the IRS is clearly the most onerous. This section alone is over ten pages and lists the technical and legal requirements that often hinder the involvement of U.S.-based grantmakers. The two primary options for foundations are (1) making an equivalency determination of the potential grantee, or (2) exercising expenditure responsibility, which is easier (in most cases) than completing the equivalency determination. The chapter also looks at grants to governmental units, grants requiring special attention, and concludes with a matrix that outlines the types of non-U.S. organizations a private foundation can and cannot fund, and what granting options are the best for each type.

Multiple appendices contain helpful sample documents (i.e. grant agreements and an affidavit for equivalency determination) and explain in more detail key legal rulings affecting international grantmaking. One appendix includes a list of international organizations designated by executive order, all of which may be treated as public charities--meaning grants may be made to them without special procedures.

While Beyond Our Borders is essentially a legal handbook, it is required reading for those interested in the nuts and bolts of international grantmaking regulations and procedures. It can be found in all Foundation Center libraries under Call Number 330 EDI 2011.

Related publications include Jonathan R. Moore’s A Practical Guide to International Philanthropy (Cambridge, 2010) as well as the Foundation Center’s The Global Role of U.S. Foundations (2010) and our International Grantmaking series.

--Rob Bruno
Catalog/Reference Librarian
Foundation Center--New York

Zunz tells us that after Congress ratified the 16^th Amendment (the levying of income tax) in 1913, the Treasury Department created a single category in the tax code for exempting philanthropies; the exemption in turn nurtured and ultimately entrenched philanthropy in the U.S.  It also allowed groups with divergent interests to work together and foster a powerful and well-supported nonprofit sector.  

He points out that while the philanthropic sector operates on a much smaller scale than government, the resources available to charities and foundation are large and influential enough that the continual “debate about the proper relationship of government to philanthropy has become a distinctive feature of American society.” Throughout the book, he illustrates the constant dance between politics and civil society, and discusses how Americans of all classes invested an enormous amount of energy in philanthropy while in the process enlarging American democracy.

Chapters take the reader chronologically through time, starting with the period after the Civil War when an unprecedented number of Americans became rich and powerful enough to shape community and national affairs (i.e. John D. Rockefeller and Henry Ford). Zunz also examines the coming of mass philanthropy and how it became part of core American values beginning during the Great Depression, important regulatory compromises and their impact, and philanthropy’s ensuing role during the Cold War in 1950s through Civil Rights in the 1960s. 

The book ends with an examination of the globalization of U.S. philanthropy: American groups saw opportunities to promote capitalism and civil society as engines of democracy overseas after the collapse of the Soviet Union. A key moment in that transition was the massive response to the 1984 Ethiopian famine, which highlighted America’s special role in international relief. In joining global efforts to end famine, the nonprofit sector "trumped Cold War dynamics" and "claimed its independence from foreign policy." In the final pages, Zunz examines how the Bill and Melinda Gates Foundation merged the global with the local, focusing on pragmatic solutions to the global public health issues especially regarding the spread of diseases.

There are an extensive amount of other resources on the history of philanthropy and the role of foundations in the U.S. Two recent titles of note include The Foundation: A Great American Secret; How Private Wealth Is Changing the World (Public Affairs, 2007) and American Foundations: Roles and Contributions (Brookings Institution Press. 2010).

--Rob Bruno
Catalog/Reference Librarian
Foundation Center--NY

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The primer Strategic Uses of Donor Advised Funds by Ruth Masterson (2010) explains how donor advised funds (DAFs) work and how foundations managers can use them to further their organization’s philanthropic goals. It also looks at the process of opening a DAF.

What are Donor Advised Funds? DAFs are “accounts held within and managed by another organization, namely, a public charity known as a sponsoring organization.” Then, on behalf of their donors, the sponsoring organization administers the account, holds and invests contributions, and makes grants from the accounts to other public charities.

One way a DAF can be used is for making grants outside of a foundation’s mission. While in practice private foundations are used for more strategic, mission-focused grantmaking, DAFs are ideal for “informal, responsive giving.” An example of this is in response to an international tragedy (like the recent Tsunamis in Asia, or the Haiti Earthquake). A U.S.-based foundation deeply involved with local issues wishing to contribute funding may not have the time to identify fitting intermediaries, so they set up a DAF account at a national sponsoring organization to identify suitable grantees.

Strategic Uses also highlights other ways DAFs can be utilized by small foundations, such as honoring a legacy, highlighting an important cause, or giving after a foundation has ceased operations to avoid penalty taxes upon closing shop.

The second primer is titled Getting to Impact Through Planning by Sara Beggs (2011). It introduces planning options for foundations looking to make the biggest possible impact with the resources at hand.

“Impact” is defined as “a significant positive effect” that usually is only carried out using thorough strategic planning. It rarely happens accidentally or immediately, and typically requires multiple grants and multiple non-grant activities for an extended period. This primer sets out a road map small foundation can use to align its operations and grantmaking to achieve such impact.

The author illustrates how to sync governance and grantmaking  by outlining the strategy behind the funding of a college prep program (p. 31-32). For example, governance may want to invite an additional trustee with experience in this area; those with tax and legal responsibilities should review bylaws to ensure relevance; and investment managers may need to shift them for sufficient cash flow. On the grantmaking side, the work plan spells out the steps from discussing grant program details with staff and board through the creation of a web page to communicate guidelines to potential grantees.

The appendix to Getting to Impact includes an 11-page workbook that offers a framework for all planning needed to execute impactful operations and grantmaking at a small foundation.

Both Strategic Uses of Donor Advised Funds and Getting to Impact Through Planning are available at  Foundation Center libraries under call number 510 ASF.

Related resources include the previously blogged book Managing Foundations and Charitable Trusts: Essential Knowledge, Tools, and Techniques for Donors and Advisors by Silk and Lintott (Bloomberg Press, 2011); it devotes an entire chapter to DAFs.  For impact planning in foundations, try TCC Group’s Maximizing Foundation Effectiveness: Aligning Program Strategy, Organizational Capacity, Strategic Planning, and Performance Assessment to Achieve Success.

--Rob Bruno
Catalog/Reference Librarian
The Foundation Center--New York

The latest addition to this series is Ten Basic Responsibilities of Nonprofit Boards: The Companion Workbook (2012) which is intended to serve as a concordance to the original book. To give you an idea of how the two work together, I’ll look at “Chapter 6: Ensure Adequate Financial Resources” in each work.

In Ten Basics, chapter six discusses the two main dimensions of balancing your budget: finding dependable revenue streams and raising private support. Engram talks about how the board can help shape earned revenue as well as its role in fundraising, which can range from identifying potential donors to maintaining cordial relationships with them. It's a very short chapter (4 pages), although it does include a handful of questions the board should ask.

The Companion Workbook offers a variety of additional exercises and questions to amplify the chapter and help the board identify the rules, agreements, and traditions that govern its approach to fundraising. A “Board Culture Assessment” poses 15 yes/no questions such as “Does the board’s fundraising committee organize the board’s fundraising rather than actually doing the fundraising itself?” and “Is there a board-giving goal in the budget?” This is followed by open-ended questions and group activities, such as having board members list 10 people they know who would give $10-$100/$50-$500/$100-$1000 (new donors only) to the organization. The chapter concludes with three case studies posing dilemmas for the reader(s) to solve.

All chapters in the Workbook are handled in this fashion; questions, activities, and case studies that get the group reflecting about their roles and responsibilities. It really gives new life to the series, and being that there are five other titles, let’s hope BoardSource publishes companion workbooks for all of them. The entire Governance Series and the Companion Workbook discussed here are available at all Foundation Center libraries under call number 610 BOA GOV.

For further reading, the Center carries other similar workbook-style board materials: the National Minority AIDS Council’s Board Development (2003) under call number 610 NMA BOA and Hildy Gottlieb’s Board Recruitment & Orientation: a Step-by-Step, Common Sense Guide (2001) under call number 610 GOT. For online resources, take a look at the board-related Knowledge Base Articles in GrantSpace.

--Rob Bruno
Catalog/Reference Librarian
The Foundation Center—New York

The formula behind Five Good Ideas is simple: a leader in a certain field is chosen to do a 20 minute presentation on a management-related topic (fundraising, governance, etc.) which is followed by a 20 minute discussion. The catch is that each presentation must adhere to the “five” rule: give attendees five ideas they can take back to the office, share with colleagues, and apply to their work.

This is where the book comes in. Five Good Ideas: Practical Strategies for Non-Profit Success (Coach House Books, 2011) distills a few dozen of the these lunch-and-learn programs on the topics of leadership and vision, organizational effectiveness, human resources, resource development, communications, advocacy and policy, and governance. 

Robin Cordozo’s “Approaching Grantmakers Successfully” is perhaps the most relevant section to users of the Foundation Center, so we’ll look at that one first. Cordozo leads one of Canada’s largest foundations and conveys these five takeaways: 1) show how you can help a grantmaker achieve its objectives 2) do your homework 3) be aware of the competition for funding 4) be open to change and 5) pay attention to details. Some bits of advice in this chapter include "avoid approaching a grantmaker 'cold'" and to "be open to the possibility that grantmakers may suggest changes or alternative approaches to your work." As with all chapters in the book, the author provides suggestions for further reading and investigation (aka "five good resources").

Rocco Rossi’s discussion of leadership, on the other hand, conveys zen-like pieces of advice on being an effective leader, such as “focus on the journey, not the destination” and “we need to let go of the excess baggage in our lives.” The resources he suggests for further enlightenment are not your typical nonprofit texts.  Instead, he recommends reading inspirational material such as The Alchemist by Paulo Coelho or listening to The Eagle’s album Desperado. The key is the takeaway: people will probably remember a piece of fiction or music better than a dry tome on leadership.

Five Good Ideas is not a handbook, nor is it intended to be one. It falls more along the lines of self-help books such as Don’t Sweat the Small Stuff that can be turned to when you need a quick dose of inspiration. It’s available in all Foundation Center libraries under call number 604 FIV. 

Other recently acquired titles that provide similar guidance include Nonprofit Management 101: a Complete and Practical Guide for Leaders and Professionals (Jossey Bass, 2011) and You and Your Nonprofit: Practical Advice and Tips from the CharityChannel Professional Community (CharityChannel Press, 2011). Use the Catalog of Nonprofit Literature to see Foundation Center holdings.

--Rob Bruno
Catalog/Reference Librarian
Foundation Center--New York

In the introduction, author Linda Lysakowski tells us that her goals in writing the book are to “help organizations … learn how to assess readiness for a campaign, better prepare for a capital campaign, and how to organize [them] effectively.”

One of her contentions is that volunteers are the key to a campaign’s success. In Chapter Seven, “Recruiting and Organizing Campaign Volunteers” Lysakowski addresses questions such as “How many volunteers will I need to recruit?” and “Where can I find enough volunteers?” She discusses how to form your team, from recruiting the campaign chair to filling other cabinet positions such as co- and division chairs. She also provides sample position descriptions for all involved.

Throughout the book you’ll find practical tips, observations, and even warnings on bad practices. But perhaps the most useful part is the appendix. In it she provides two dozen campaign tools, including a 28-step plan of action spreadsheet, campaign assignment worksheets, sample case case statements, a full campaign timeline, and even a brainstorming form to identify new donors.

Capital Campaigns: Everything You Need to Know is one of many resources available on the topic, but its focus and practicality make it a worthwhile reference book for all fundraisers. It’s available in Foundation Center libraries under call number 713 LYS. To locate other In the Trenches titles mentioned at the beginning of this blog, search the Catalog of Nonprofit Literature.

--Rob Bruno
Catalog/Reference Librarian
The Foundation Center--New York