Philanthropy Front and Center-San Francisco

Reporting from the SF Business Times Corporate Philanthropy Summit & Awards

This morning I attended the 7th annual San Francisco Business Times Corporate Philanthropy Summit & Awards.  This event is designed to acknowledge and celebrate the good corporate citizens in the Bay Area who are the most generous or innovative (or both) in the way in which they support the communities in which they operate.  According to the SF Business Times, the total amount of giving by the top 70 companies was up again this year.  Companies ranked on the list gave $154.9 million to Bay Area nonprofits in 2007, up from $140.3 million in 2006.  There was also an increase in the number of companies giving at least 1 percent of their profits to charity.

The first part of the morning was a straight roll call, honoring the Top 70 most generous Bay Area corporate philanthropists and unveiling the rankings of companies who gave the most cash to Bay Area causes (nine county Bay Area).  I have included an abridged list of the Top 15 companies below.  The complete list is available in the SF Business Times current edition, available for reference use in our library now.   

1. AT&T

2. Wells Fargo & Co.

3. Safeway Inc.

4. PG&E Corp.

5. Bank of America Corp.

6. Intel Corp.

7. Chevron Corp.

8. Wachovia

9. Genentech Inc.

10. Applied Materials Inc.

11. Citigroup

12. Washington Mutual Inc.

13. Levi Strauss & Co.

14. Union Bank of California

15. Adobe Systems Inc.

The next part of the awards presentation was devoted to the "Beyond the Check" awards, which are designed to look beyond the numbers to a company's voluntarism, special programs and innovation.  Here is a list of those awards:

-Community Change and Impact in Philanthropy Award: Give Something Back Business Products Inc. for giving more than half of its profits to community groups.

-Education Partner of the Year Award: Merrill Lynch for increasing financial literacy and business savvy among youth. 

-Judges Choice for Innovation Award: Adobe Systems for its support of programs that teach young people multimedia skills.

-Health Partner of the Year Award: Kimpton Hotels & Restaurants for its commitment to fighting HIV/AIDS in a number of ways, including fundraising bashes in its hotels.

The second half of the morning was devoted to a fascinating panel discussion designed to give us a glimpse of how company executives balance social responsibility with bottom line concerns, and explain how they make their giving decisions.  The panel was made up of:  John W. Thompson, Chairman and CEO, Symantec Corporation; Deborah Alvarez-Rodriguez, CEO and President, Goodwill Industries of San Francisco, San Mateo and Marin; and Robert Hanson, President, Levi Strauss Americas.  Here are some highlights from that conversation:

-When asked to give an "establishing shot" of their philanthropy:

-Robert Hanson: Spoke in a very inspirational way about the Levi Strauss Company's longtime core value of using philanthropy to effect positive social change.  He cited Levi Strauss' early and longtime support of the fight against HIV/AIDS, and how they have a tradition of going where other companies won't go and liking that role of "being the mouse that roars."  In recent years this has led them to fund things related to syringe access to reduce the spread of HIV/AIDS through drug related transmission, and hoping to influence other companies to follow their lead. 

-John W. Thompson: Illustrated Symantec's giving by highlighting its support of Teach for America.  Symantec is very concerned about the achievement gap in low-income communities, and Teach for America helps address that disparity by deploying talented young people around the country to teach in economically disadvantaged communities.  As a member of the Silicon Valley corporate community he also echoed what we have heard from other technology companies about the need for workforce development and education to prepare our young people for technical careers and the need to support curriculums that emphasize math and science abilities.

-Deborah Alvarez-Rodriguez: As a representative from Goodwill, the oldest nonprofit social enterprise organization in the Bay Area, she had much to offer about how to cultivate corporate support.  Deborah underscored the importance for nonprofits of looking for corporate partners by identifying where there is a synergy of perspectives and approach, and an alignment of values.  "How can we create value for ourselves and for the company?"  She talked about Goodwill's longtime workforce development programs and its new Trucking Academy, which offers companies and organizations like MUNI/UCSF a pool of prospective candidates to consider for employment as commercial truck drivers.  It's a classic "win-win" situation since Goodwill aims to lift people out of poverty wage jobs, and many industries need access to certified drivers.

-When asked about the economy:

-Deborah Alvarez-Rodriguez: She set the scene for the company executives in the room in a very effective manner outlining how nonprofits are facing increased demand for services at a time that public and private support is diminishing.  She called it a "perfect storm" that is a harsh reality for many nonprofits and reminded her nonprofit and corporate colleagues in the room alike that what this current state of affairs means is that "now is not the time to retreat."

-Robert Hanson: He reminded us that even in a down economy, they often are still making a profit, so it's premature to pull back even with all of the doom and gloom we hear lately.  He also said that Levi's has a reserve fund in place when needed to help them maintain their giving through the lean years.  He also cited an interesting example of the "double bottom line" in action with a new Castro location that today, even in a down economy, is very profitable.  It is challenging to establish chain stores in SF neighborhoods like the Castro, but they were successful in getting the community to be supportive of it because of Levi's longtime support of LGBT organizations.

-John W. Thompson: He emphasized that Symantec aims to have a set of programs that are sustainable during the ebbs and flows of the marketplace and that the economic realities call for a responsible allocation of resources, this does not mean it's now time to "cut off the spigot" of giving.

Closing remarks:

-Deborah Alvarez-Rodriguez: Reminded us that the divide between nonprofits and for-profits is a false divide and that there is more that unifies us than we sometimes remember, and that we should keep this in mind when identifying potential corporate partners. 

-Robert Hanson: Closed with a moving anecdote from the Great Depression that gave an early example of the Levi Strauss Company's principles. While many companies laid off workers during the Depression, Levi Strauss & Co. did not.  This kind of practice created a very loyal workforce, and he sees that to this day.  Robert emphasized that good corporate citizenship and a commitment to community creates employee morale and boosts loyalty.  He credits the company's philanthropy as part of the reason for low turnover at Levi Strauss & Co.

-John W. Thompson: Perhaps wins the most memorable quote of the morning award with: "It sucks to be #28!" In reference to Symantec's ranking on the list of the top 70, underscoring why awards and rankings like this are important in the first place.

Growth in California Grants Benefiting Communities of Color, New Study Finds

If you've been following the developments of the AB 624 legislation in recent days, you might be wondering if there is any hard data available about the extent to which private foundation grants benefit communities of color.  A report the Foundation Center just released, commissioned by the California Regional Associations of Grantmakers (Northern California Grantmakers, Southern California Grantmakers, and San Diego Grantmakers), provides a comprehensive estimate of the extent to which communities of color are being served by foundation giving in California. 

Our analysis of grantmaking by 50 of the state’s largest independent foundations finds that at least 39 percent of California-focused grants benefited populations of color. According to the report, Embracing Diversity: Foundation Giving Benefiting California’s Communities of Color, in 2005 alone, these 50 California-based foundations awarded a minimum of 2,700 grants totaling nearly $300 million to support health, education, social services, and other programs that serve ethnically or racially diverse populations. In addition, 10-year trends show that giving benefiting these populations grew nearly twice as fast as overall giving between 1996 and 2005. 

“Most of the data previously available has undercounted the level of philanthropic giving that benefits ethnic communities,” said Larry McGill, senior vice president for research at the Foundation Center and the primary author of the study. “This report provides a more complete picture about the level of investment made by foundations to help California’s diverse populations.”

Key findings from the report include:

• At least 39 percent of domestically focused grants and 33 percent of domestically focused grant dollars awarded by 50 of the largest independent California-based foundations (all with assets in 2005 of at least $100 million) primarily benefited populations of color.  The level of giving is considered to be a conservative estimate and researchers believe the numbers may be even higher.

• Most grants intended to benefit the economically disadvantaged also served populations of color, even if they were not explicitly targeted to benefit such populations. An estimated 75 percent of grants meant for low-income populations also served communities of color.

• Among a group of nearly 100 large independent California foundations, domestic giving explicitly targeted to serve populations of color increased by 177 percent between 1996 and 2005 (adjusted for inflation), while domestic giving overall increased by 98 percent.  At the same time, domestic giving targeted by these foundations to benefit the economically disadvantaged increased 236 percent.

• Grants explicitly targeted to serve populations of color were overwhelmingly concentrated in the health area, reflecting the grantmaking priorities of large foundations such as the California Endowment and the California Wellness Foundation.

While the study found that at least 39 percent of California-focused grants benefited populations of color, McGill noted that it should not be inferred that the other 61 percent of domestically focused grants benefit white populations only: "All that can be said about these grants is that specific information about the demographic characteristics of the populations they are intended to serve is unavailable. Many, in fact, may not be targeted to serve specific populations at all; rather, they may be intended to support activities ranging from scientific research to environmental preservation. And to the extent that some of these grants are intended to benefit the general public, they may also benefit Californians of all backgrounds."

"The state’s foundation leaders are committed to improving the lives of communities of color, and, for that matter, all Californians," said Colin Lacon, president of Northern California Grantmakers. "And foundations will continue to support efforts that address the underlying challenges and problems facing diverse populations in our state."

The report can be downloaded at no charge from the Gain Knowledge area of the Foundation Center’s web site.

California Foundations to Provide Additional Support for Minority-Led Organizations

Our Philanthropy News Digest recently covered some interesting developments in California philanthropy news.  Faced with legislation that would have required them to disclose the ethnic composition of their boards and staffs and to provide details of grants awarded to minority-led organizations, ten of California's largest foundations have agreed to make a multiyear, multimillion-dollar investment in minority communities in the state, according to a Sacramento Bee report*.

The foundations — the California Endowment, and the Ahmanson, Annenberg, California Wellness, Hewlett, Irvine, Packard, Parsons, UniHealth, and Weingart foundations — reaffirmed in a joint statement their commitment to help minority organizations compete for grants and said that by the end of the year they would announce a comprehensive set of grantmaking activities designed to address the challenges confronting minority and low-income communities.

In return, Assemblyman Joe Coto (D-San Jose) agreed to drop his sponsorship of a bill, AB 624 (5 pages, PDF), that would have required foundations with assets of more than $250 million to disclose the ethnic, racial, and gender makeup of their boards and staffs and to make public the number of grants and dollars awarded to minority organizations. The bill, which had already passed the assembly, was actively supported by the Berkeley-based Greenlining Institute, which found in a 2006 study that only 3.6 percent of the grant dollars awarded by the nation's top twenty-four private foundations went to minority-led organizations.

According to Dr. Robert Ross, president and CEO of the California Endowment, requiring foundations to compile diversity data would not have solved the capacity building needs in underserved communities. But the agreement, he added, is an acknowledgment by the foundation community that there is a serious problem in terms of addressing the needs of those communities. "We wanted to come up with a voluntary approach that actually would pragmatically work to solve the problem," said Ross. "[Now] we need to develop a plan."

If you are interested in reading more about AB 624, or learning more about its background and what others in the field have been writing about it, visit PhilanTopic, our topical PND Blog.

*Rojas, Aurelio. “Pressed by Legislator, Nonprofit Foundations Agree to Invest in Minority-led Organizations.” Sacramento Bee 6/24/08.

New Report--Spotlight on Funding for the Environment and Animals in California

Did you know that California foundations gave twenty-four percent of all U.S. foundation giving for the environment?  Some of our big environmental funders include the Gordon and Betty Moore Foundation, William and Flora Hewlett Foundation, Energy Foundation, and Marisla Foundation. To glean more tidbits download our brand new 2-page report, Spotlight on Funding for the Environment and Animals in California. 

You also should check out two grantmaker conversations in our Philanthropy News Digest (PND). PND staff interviewed Steven J. McCormick, president and CEO of the Gordon and Betty Moore Foundation, about his tenure at the Nature Conservancy, his new role and responsibilities at the foundation, its approach to environmental grantmaking, and the challenges facing environmental philanthropy. And David Grant, president and CEO of the Geraldine R. Dodge Foundation in New Jersey, spoke with PND about the history of the foundation's environment program, its forward-thinking approach to grantmaking in the environment area, and what the foundation is doing to make itself a greener organization.

Philanthropy Chat with Mary Gregory

In fall 2007 we launched Philanthropy Chat, an online audio series featuring interviews with West Coast grantmakers and other philanthropy and fundraising experts. Listen to the current edition of Philanthropy Chat and hear Mary Gregory, senior program officer for Pacific Foundation Services (PFS), discuss the giving priorities of PFS foundations and trends in the family foundation field. Since PFS administers the giving for a dozen Bay Area family foundations Mary provides a view of the field few others can.

If you missed a Meet the Grantmaker program or want to listen to other Philanthropy Chats peruse the offerings in our Events Archive.

Pacific Gas and Electric Company awards $1.5 Million to the California Academy of Sciences

Since throughout June the Foundation Center is offering special classes and events for our Funding for the Environment Month, it seems apt to use our blog this month to share with you news about recently awarded environmental grants.  This grant from Pacific Gas & Electric Company was just announced last week to support what is "poised to be the 'greenest museum' of its kind in the world."

The Pacific Gas & Electric Co. has announced a four-year, $1.5 million grant to the California Academy of Sciences for climate change and environmental sustainability exhibits and programs in the academy's new location, which is scheduled to open during the fall.  This recent grant is the largest made by PG&E to a single San Francisco institution. 

The collaboration is intended to help educate Californians about how they can take action on climate change. As the lead corporate sponsor of the academy, PG&E will provide energy-related content for the Science in Action exhibit and expertise for ongoing programs. In addition, PG&E employees will have an opportunity to participate in year-round volunteer activities and special events. The company is also the lead sponsor of the academy's environmental-sustainability exhibit, Altered State: Climate Change in California.

"The need for science and climate change education is one of the most critical issues of our time," said academy executive director Greg Farrington. "PG&E, which continues to demonstrate environmental leadership within California and nationwide, is an ideal partner for the new academy as we seek to serve as a leading resource for science education in the twenty-first century."

For more information, read the press release. 

Have you recently received or awarded a noteworthy environmental grant?  Let us know. 

Drowning in Paperwork? Project Streamline to the rescue!

Whether you are a tireless development professional who regularly must satisfy grantmaker application and reporting requirements, or a grantmaker who must somehow find the time to wade through the paper coming at you, you will find a new report, Drowning in Paperwork, Distracted from Purpose to be a document well worth your precious time.  This is a report from Project Streamline, an initiative of the Grants Managers Network. 

Facing an "effectiveness paradox," foundations have begun to recognize that some of the measures they've adopted to ensure strategic and accountable grantmaking are backfiring, resulting in a system that drains both foundations and nonprofits of time and energy. 

The report found ten ways in which the current system of grant application and reporting creates more burdens than it relieves. Noting that nonprofits don't receive grants as much as "net grants" — the total amount of funding minus the true cost of obtaining and managing a grant — the report found that in many cases grants aren't worth the time and labor spent on applications and reporting. The report also described a phenomenon it called "outsourcing the burden," in which "grantseekers are required to do what is essentially the grantmaker's work without compensation."

The study found that grantmakers generally limit their use of grant reports to checking compliance, and that only 27 percent of grantmakers said they share information about challenges and lessons learned from grant reports with others in their field. Some grantees interviewed for the report said they perceived this lack of data sharing as a sign that grantmakers distrust them.  One nonprofit executive is memorably quoted as stating "We assume that they feed everything to a giant fiery furnace."

To spur an open dialogue about the grant application and reporting system, the report offers recommendations that grantmakers can adopt to relieve the burden on nonprofits, including assessing what information grantmakers really need to make decisions and minimizing the amount of time, effort, and money that grantees spend getting and administering grants. The report noted that a growing number of funders are already taking action in this regard, with eight out of the ten grantmakers surveyed indicating they had taken steps to streamline their application and reporting practices.

"Almost every funder has a unique application and reporting process, and they're adopted for sensible and responsible reasons," said Richard Toth, Project Streamline chair and director of the office of proposal management at the Robert Wood Johnson Foundation. "But the problem our research underscores is the cumulative effect of these measures. Imagine each set of requirements multiplied by thousands of grantmakers and you get a sense of the gauntlet nonprofits face. We've created Project Streamline to do something about it."

Are you drowning in paperwork?  How long is the average foundation grant application taking you to complete?  And are you finding new online applications a more streamlined way of doing things, or are they taking you more time to complete?  And if you are a grantmaker, have you recently streamlined your application process?

Project Streamline is funded by the David and Lucile Packard, Ford, Frey, Harold K.L. Castle, Kansas Health, Kresge, McKnight, Robert Wood Johnson, and Saint Luke's foundations.

Red Oak Opportunity Foundation

Recently I received one of those phone calls that just make my day that are from foundation administrators who are looking for ways to promote their grantmaking activities to the wider community.  As you can imagine, in our line of work we more often hear from grantseekers looking for grant opportunities, so it is exciting when we hear of foundation opportunities to share with our community.

Jimmy Reina reached out to tell us about the Red Oak Opportunity Foundation (ROOF), established by Red Oak Realty in the East Bay in 1985.  ROOF is a grantmaking public charity, and its grant funds are derived from contributions from the company, staff, its clients, and other community members.  Its funding priorities include supporting local homeless services, educational organizations, and other community-based organizations in the communities Red Oak serves.  According to Reina, because they are a small foundation they "give preference to supporting small and all-volunteer organizations in which a small grant can make a big difference." 

This year Reina anticipates the ROOF grant budget to be in the $60,000-$70,000 range and the grant size averages $500 to $5,000.  Grant decisions are announced annually in December and the application deadline is November 15.  More information on how to apply and an application are available at the ROOF web site. 

California Cultural Data Project

If you're with an arts group you should know about the California Cultural Data Project (CACDP).  The CACDP is a web-based data collection, management, and reporting tool created to strengthen arts and cultural organizations and streamline applying for grants.  As a statewide collaboration of public and private funders, CACDP is designed to provide an easier application process through a standardized data form that will accompany grant requests to partnering funders.  Applicants will only need to complete this form once each year.  Aside from easier application submissions (and who doesn't want that?) other benefits for arts groups include being able to track their individual data in addition to accessing aggregate data that allows for comparison with similar organizations and charting of progress.

The Cultural Data Project originated in Pennsylvania in 2004 and was adopted by Maryland funders in 2007.  For an interesting discussion of how the project came to California, its impact on grantseeking and reporting and other advantages listen to our "Philanthropy Chat" interview with John McGuirk, arts program director at the James Irvine Foundation, and Bobbie Lippmann, senior officer for culture and director of the Cultural Data Project for the Pew Charitable Trusts. 

Speaking of the James Irvine Foundation and arts organizations, I want to be sure I give a plug to the statewide training the Foundation Center and the Irvine Foundation are currently offering. Throughout May, June, and into July, at various locations around California, we're offering a free two-part program--"Proposal Writing Basics for Arts Organizations and How to Apply to the James Irvine Foundation's Creative Connections Fund."  As a I bet you can guess, the program teaches proposal writing skills and allows arts groups to hear insider tips on applying to Irvine's new Creative Connections Fund. Upcoming sites for the training include Sacramento, Los Angeles, Santa Barbara, Salinas, Fresno, and Santa Ana.  And in Los Angeles, Santa Barbara, and Salinas it is actually a full-day, three-part session with an added program explaining what arts organizations need to know about the California Cultural Data Project.  The California Cultural Data Project is on its own statewide tour, so if our tour does not overlap with the CACDP training in your community, be sure to check the training schedule for the California Cultural Data Project to see when it will be offered at a location near you. 

Keeping the Beach Barefoot Friendly

If the recent heat wave has you dreaming of ocean vistas and sand between your toes then you might be interested in this RFP that was just posted to our RFP Bulletin on Friday:

Barefoot Wine, a California winemaker, and the Surfrider Foundation, a grassroots not-for-profit environmental organization dedicated to preserving the world's oceans, waves, and beaches, are offering support for a talented beach enthusiast to spend a week working with the Surfrider Foundation in San Clemente, California during the summer of 2008.

Barefoot Wine's Summer Dream Job program will provide hands-on experience in ocean water quality and organized beach cleanups as well as instruction in grassroots awareness campaigns. Entries will be judged by the staff at the Surfrider Foundation based on past environmental experience, relevant skills, and proven dedication to the cause. Along with being compensated financially, the recipient will receive a trip to California, including airfare, beachside housing, and ground transportation. Applicants must be 21 years of age or older and residents of one of the fifty United States or the District of Columbia.

See the Barefoot Wine Beach Rescue Project Web page for complete program information.

For other current RFPs of interest, vist our RFP page.