In recent decades, nonprofits have significantly increased the size of their endowments. Yet during the current economic crisis, they made scant use of their sizable holdings. Instead of drawing down their endowments to offset losses of income, nonprofits resorted to cutting programs and personnel, sometimes dramatically. To prepare for future financial downturns, nonprofits should treat endowments as rainy day funds, not cut programs to preserve the endowment.
Jeff Raikes takes over the Gates Foundation at a turbulent
time when philanthropic resources are down and social needs are up
Peter deCourcy Hero is one of the foremost practitioners of and commentators on philanthropy today. From 1989 to 2007 he was the president and CEO of the Community Foundation Silicon Valley (CFSV) and subsequently Senior Advisor to the Silicon Valley Community Foundation. A winner of numerous awards he is on the boards of several foundations. Interviewed by Wolfgang Bielfeld from the University of Bologa, Italy, he comments on the development of venture philanthropy and the new trends in philanthropy today.
How a Jewish charity is responding to one of the biggest scams in history.
Despite spending vast amounts of money and helping to create the world’s largest nonprofit sector, philanthropists have fallen far short of solving America’s most pressing problems. What the nation needs is “catalytic philanthropy”—a new approach that is already being practiced by some of the most innovative donors. —By Mark R. Kramer
For this venture capitalist, it all comes down to connecting with people – from family to coworkers to customers.
Expressions of gratitude motivate others’ prosocial behavior. When people are thanked for their efforts, they experience stronger feelings of social worth, which inspires them to engage in further helpful acts. In short, gratitude proves to be the gift that keeps on giving because it makes others feel valued.
Social entrepreneurs, those organizations and individuals who work to improve major social issues, don't have the networks and financial systems of traditional entrepreneurs, Sally Osberg, president of the Skoll Foundation told a Stanford MBA audience. Like Ginger Rogers dancing in a 1940's musical, they face the same issues as traditional entrepreneurs, but must do it backwards in high heels.
Social enterprises hold potential to "effect the kinds of changes our society needs right now," social entrepreneur Rupert Scofield told a Stanford student audience.
In this Spring 2011 Prosocial Behavior Research Column, Frank Flynn explores research showing that the most generous, trusting, and helpful people are not those with more money, but, rather, those with less. Individuals in lower socio-economic classes tend to act in a more prosocial fashion because of a greater commitment to egalitarian values and heightened feelings of compassion for others. Put simply, the life stressors and challenges faced by those who struggle economically often spur greater social cooperation. Might the "haves" take a lesson from the altruism of the "have nots?"
How foundations can best support social innovators. —By Steven Lawry
New research estimates the value of the services provided by faith-based organizations.
Many philanthropists refrain from online giving.
Find out how Nau, an ultra-cool outdoor clothing start-up from Portland, Ore., tried on too much, too fast. —By Suzie Boss
PHILANTHROCAPITALISM: How the Rich Can Save the World by Matthew Bishop & Michael Green Review by Joel Fleishman
Foundations’ plans to match gifts to local nonprofits will stimulate giving.
Voting may be an efficient form of charity.
The new social capital market is great, but won’t answer all of society’s problems.
The only thing fundraisers have to fear is fear itself.
Nonprofits’ policy wish list for the new administration.
As the boundary between the for-profit and nonprofit worlds continues to blur, how may philanthropy evolve to assist social change? In this panel discussion, academics and practitioners consider how public -- and private -- sector support may be combined in new ways in the future to fund progressive domestic and global social enterprises.
Based in Silicon Valley, Kiva is an innovative social enterprise that uses the internet to connect lenders with small businesses around the world. In this audio interview, Jessica Flannery talks with Design for Change host Sheela Sethuraman about starting the organization, and reflects on some of the reasons for its rapid growth and success.
In the field of philanthropy, are foundations' grantmaking and reporting processes aligned with nonprofits' strategies? In this panel discussion exploring data from a Center for Social Innovation study on nonprofit accountability practices and the costs of conflicting demands, experts debate ways in which evaluation requirements may help or hinder mission delivery.
Shifting demographics among donors, fundraisers, and the communities they serve call on nonprofit organizations to think about diversity on many levels. How can you connect with donors who are different from you? How does inclusiveness strengthen your organization? In this audio lecture, gerald Richards and Dee Dee Nguyen explore these questions at the 2007 Nonprofit Boot Camp, reflecting on how to reach across the divides of ethnicity, culture, gender, sexual orientation and other differences to strengthen bonds and create new opportunities.
In turbulent times like ours, we need “hard-edged hope,” says Jacqueline Novogratz, the much-celebrated founder of the Acumen Fund. Affirming that the world is indeed a better place now than it was 40 years ago, she traces her own journey from a childhood witnessing racial inequities all around her in Detroit to a career leading the field of social impact investing. Novogratz rallies the community of Stanford business graduates to be part of the new generation of innovative problem solvers.
How do environmental challenges create growth opportunities, new markets, and innovation? Two Goldman Sachs managers discuss how their investment firm is making the financing of corporate deals contingent upon the incorporation of increasingly stringent environmental criteria.
Community foundations have become an increasingly common outlet for charitable giving in the United States. In this panel discussion, led by Julie Juergens, the director of the Center for Social Innovation, community foundation leaders discuss innovative models for foundations as well as challenges faced by this sector.
The nonprofit sector delivers social value and the for-profit sector delivers economic value, right? Wrong! Jed Emerson argues that value is nondivisible, whole, and blended. He invites us to think beyond philanthropy, corporate social responsibility, social enterprise, and other limiting mindsets.
Social enterprise and innovation are about more than just invention. In this panel discussion, experts argue that diffusion or scaling up ideas is an integral part of making truly effective social change. Educators, nonprofit executives, and philanthropists share their perspectives about how to take innovative ideas for social change to that tipping point where they can create large-scale, lasting positive effects.
In Britain, something is happening that hasn't for 100 years. More people are becoming incredibly wealthy, not only through inheritance, but also because of their own hard work. A phenomenon on this scale has not happened since the Victorian industrialists. In this audio lecture, Philosopher Charles Handy tells his 2007 Skoll World Forum audience about entrepreneurs who put their energies into meeting some perceived social need--something that government never gets around to and that private enterprise typically doesn't see a market for.
As the boundary between the for-profit and nonprofit worlds continues to blur, how may philanthropy evolve to assist social change? In this panel discussion, academics and practitioners consider how public -- and private -- sector support may be combined in new ways in the future to fund progressive domestic and global social enterprises.
Based in Silicon Valley, Kiva is an innovative social enterprise that uses the internet to connect lenders with small businesses around the world. In this audio interview, Jessica Flannery talks with Design for Change host Sheela Sethuraman about starting the organization, and reflects on some of the reasons for its rapid growth and success.
In the field of philanthropy, are foundations' grantmaking and reporting processes aligned with nonprofits' strategies? In this panel discussion exploring data from a Center for Social Innovation study on nonprofit accountability practices and the costs of conflicting demands, experts debate ways in which evaluation requirements may help or hinder mission delivery.
In 2009, software giant SAP funded an initiative that aims to reinforce the shea nut and butter value chain in Ghana. The program, which also involves microfinance organizations PlaNet Finance, Grameen Ghana and Maata-N-Tudu, uses microfinance, education, and information technology to improve the conditions of shea women. Since enrolling in the program, women have seen significant improvements in income. This case study examines program progress to date and makes recommendations for program improvements using a value chain development framework.
The Kinetics and Michael J. Fox Foundations both support research on Parkinson’s disease. This second case explores how these two organizations collaborate toward a common mission.
John Goldman established the South Peninsula Jewish Community Teen Foundation in 2003, an innovative program that teaches Bay Area Jewish teens to run their own charitable foundation by developing mission statements, raising money, and distributing funds. As of 2009, the program has scaled to four chapters and raised and distributed $178,321 in funds.
The best nonprofits don’t necessarily get the most money, observed William and Flora Hewlett Foundation's Philanthropy Program officer Jacob Harold and president Paul Brest in 2007. From there they started exploring how they could improve the marketplace and how donors give their money. To that effect they hired consulting firm McKinsey & Company to explore the online information marketplace for giving space at a macro level, looking at trends and opportunities. Armed with data they then tried to figure out what to do.
The Kinetics and Michael J. Fox Foundations both support research on Parkinson’s disease. This first case describes the creation, mission, and strategy of the two organizations.
The X PRIZE Foundation originated as prize competitions for significant development in the exploration of outer space. Several problems faced the organization as it began to focus on fields outside of space, including whether prize competitions could work in areas such as poverty.
The Acumen Fund provides modest amounts of capital, combined with business expertise, to help build enterprises that would serve the poor. The case describes the fund’s approach to helping address water resource problems in developing countries.
The Canary Fund supports the development of methods for early cancer detection. This first case describes the choice to sponsor a high-profile racing event to raise funding and awareness.
A conference at Stanford brought together professionals from foundations to share best practices, discuss emerging innovations, and build professional networks. This summary presents key issues discussed.
The Altman Foundation was established to serve the people of New York City. By 2005, the foundation was poised to take its strategic philanthropy to the next level by implementing a broader system of research and evaluation.
Philanthropy as an industry was developed in the United States. This paper traces its development from early colonial days through the formation of the first great foundations in the late 19th and early 20th centuries.
The September 11th Fund was created to support the short- and long-term needs of the people and communities affected by the World Trade Center tragedy. Many foundation leaders evaluated the difficult lessons learned in interacting with the media, and wondered how they could better use communication strategies to demonstrate their accountability.
An innovative public school’s foundation considers new strategic directions in the wake of the school’s conversion to an independent charter. Will it become an advocacy organization, a think tank, an educational consultant—or choose another path?
Allied Equity Partners provided equity-related financing to minority-owned businesses. The principals knew they had to rethink their strategy to raise capital of $80 million for its third and largest fund.
In 2005, Robin Hood was the largest private poverty-fighting organization in New York City, and its venture philanthropy model had inspired various foundations nationwide. The management team hoped to have an even greater impact by improving the application of best practices and metrics.
Young companies trying to enter parts of the health care industry by focusing on helping patients stay healthy and allowing safety net providers to use their resources have a hard time attracting venture capital funds that focus more on traditional profit. A recent article by two Stanford Graduate School of Business researchers argues that it's time to change this pattern.
Social pressure plays a major role in determining corporate strategy and performance according to an award-winning paper coauthored by Professor David Baron. The researchers find that social pressure and social performance reinforce each other, greater social pressure is associated with lower financial performance, and financial and social performance are largely unrelated.
Asking would-be donors for their time, not their money, is a better way for charities to increase donations, says professor Jennifer Aaker. Asking donors first to volunteer their time can positively shift their willingness to give both time and money.
This study presents fundamental concepts of markets, capital markets, and social capital markets. It also highlights select initiatives underway in early 2007 that sought to improve the functioning of social capital markets.
This essay explores how the lines are blurring between for-profit businesses and nonprofits that do social good. It outlines examples of companies that embody "blended value" and discusses barriers to sustainable capitalism, and the role of philanthropy in supporting it.
Roger is currently starting an investment partnership for affordable housing in Charlotte, North Carolina.
In turbulent times like ours, we need “hard-edged hope,” says Jacqueline Novogratz, the much-celebrated founder of the Acumen Fund. Affirming that the world is indeed a better place now than it was 40 years ago, she traces her own journey from a childhood witnessing racial inequities all around her in Detroit to a career leading the field of social impact investing.
Laura Arrillaga-Andreessen explains how to make your giving matter more.
The poorest regions of the world pose high risks for microfinance. Brian Cox, President of MFX Solutions, discusses how currency risk education can increase the flow of resources to Africa and other high-risk regions.
Daryn Dodson is passionate about identifying and developing leaders with a social conscience. He has turned that passion into action by promoting entrepreneurship in post-Katrina New Orleans and in his current impact investment consulting role.
If you want to give money to a good cause, how do you decide which organization to focus on amidst myriad choices? A new enterprise driven by Stanford MBAs, known as Philanthropedia, is making it easier for you to figure it out.
Habitat for Humanity is an exemplary social enterprise that has helped build more than 350,000 houses for low-income people in thousands of communities worldwide. In this university podcast, Jonathan Reckford, the organization's CEO, talks about what it takes to be a great leader. He shares lessons learned from his own career, and how he put his knowledge to work in successfully guiding Habitat for Humanity since 2005.
Private foundations are being idealized as neutral, efficient, and effective—but no one is actually monitoring their impact.
According to recent research, people tend to perceive organizations as being either warm or competent, not both—and they are much more likely to do business with the competent one.
"The more money a person makes or has, the less generous, helpful, compassionate, and charitable he is toward other people,” says Paul Piff, a doctoral candidate in social and personality psychology at the University of California, Berkeley.