PVF Model as a 'Teaching Foundation'
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At Philanthropic Ventures Foundation (PVF), we regard the current economic crisis as an unprecedented opportunity to re-envision and reinvigorate philanthropy. This is the time to build a philanthropic culture that's quick and nimble, eager to take wisely calculated risks and deeply involved in the life of our communities. It's the chance of a lifetime to transform the worst aspects of paper-laden bureaucracy in favor of an imaginative entrepreneurialism where well-trained professionals do much more with less. That's what PVF is all about - and has been for almost 20 years.
PVF strives to be a model in demonstrating innovative grantmaking. We are the only foundation in the country that regularly gives grants in a 48-hour turnaround. We honor the people we work with by doing away with deadlines and application procedures. We have pioneered the concept of paperless giving which incorporates our belief in trust with those with whom we work. We work shoulder-to-shoulder with grassroots leaders and strive to tap the full, often neglected potential within even the poorest communities.
We then share our successes (and our failures) with the donor community, here in the San Francisco Bay Area and throughout the United States. Building Communities/ Strengthening Philanthropy in the new online version of the Building Community Foundations newsletter, now in its 17th year and 73rd edition, and expanded to be a resource to family foundations as well as community foundations.
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Innovations In Giving
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Here are some new strategies for innovative grantmaking that result in high impact:
Minimizing the application process Why have the same applications for a $500 grant as for a $25,000 grant? In fact, is the application questionnaire format the best way to go? Questions get answers but do they allow the applicants to accurately describe what they want to do? Try using guidelines for applications which state what is required to apply but don't ask endless questions. For Sample Guidelines for Application, click here: Sample Guidelines
Is paperless giving an option? If you know the applicant, their background, reputation, etc. try having a dialogue to hear about the project idea and what the needs are. If the idea makes sense and the cost factor is reasonable, what more do you need?
A letter can be drawn up by your foundation in which a paragraph sets forth the agreement, and it is sent off with the grant check to the applicant to sign, agreeing to the terms of of the grant and also acknowledging receipt of the check. The signed letter is sent back to your foundation.
Everything needed for an audit is present - a description of what is to be done in an agreement, and a grant of money with a signed receipt.
This is "paperless" giving. It works, it saves on administrative processing, it saves time and it honors the people your foundation works with. It's worth a try.
Recently it was reported that among the largest community foundations and corporate givers in the US, 85% of their giving is grants less than $10,000 each. One could assume that the giving of smaller community foundations is even a greater percentage of small grants.
Question: So why all the paperwork for small grants?
It has gotten so bad that the Council on Foundations came out with a report titled "Drowning in Paperwork, Distracted from Purpose." Here are some solutions:
Let the foundation staff give the grants Most foundations already let the executive director give grants with various limitations such as a cap on the size of the grant or a limit on the total of such grants. But, why not let the executive director, acting on staff input, make all the grants? This idea isn't radical. The Ford Foundation has operated this way for quite some time; so does PVF. It works very well.
This is the scenario: the staff submits a justification statement for each grant made and presents it to the foundation board. The board reviews the justifications and, if necessary, acts to refocus grant areas or delete certain kinds of grants in the future. In other words, the Board critiques the grantmaking on a regular basis and maintains the focus of the foundation.
Understand that evaluation is a two-part process Evaluation is a judgment of who should get money and an assessment of how the money was used.
Evaluation requirements should be in proportion to the size of the grant. It simply isn't fair to require endless narrative and financial reporting on all grants. What the evaluation is supposed to do is give indicators of the worth of the endeavor - what happened, what went wrong, what was learned.
The best evaluation is one that includes an on-site visit to the grantee with or without an appointment. This isn't an inspection; it is a show of interest by the foundation as to how things are working out. This is part of having a working relationship with the grantee. Non-profit personnel appreciate this.
Dialogue is important, having a continuing interchange with grantees where trust develops and positive things happen.
Wouldn't it be interesting to have a book of failures sponsored by your foundation that could be distributed to non-profits to have in order to know what to look out for next time. Foundation personnel are experts on what has gone wrong or didn't work out. This knowledge should be shared and non-profit personnel should contribute as well.
Venture should be a part of all foundation giving Venture means to be willing to take risks, which means things might not always work out. If you need a guarantee of success, then you will fund the tried and true. If you are interested in change, then you are involved in venture.
There is nothing wrong with a failure; it is a learning experience. It is how we learn to do better next time. In venturing we don't mean to gamble, we mean that the circumstances ring true, we are familiar with the past work of those involved and we are willing to go forth not knowing the precise outcome.
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Contact Us:
Philanthropic Ventures Foundation
Website: www.venturesfoundation.org
Bill Somerville, Executive Director
bsomerville@venturesfoundation.org
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TO OUR READERS:
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If you know of innovative grant making by community foundations and family foundations, feel free to submit your ideas to info@venturesfoundation.org
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ABOUT THE EDITOR
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Bill Somerville,
PVF Executive Director
Bill Somerville has been in non-profit and philanthropic work for 49 years. He was the director of the Peninsula Community Foundation for 17 years, and in 1991 founded Philanthropic Ventures Foundation where he continues to serve as Executive Director. PVF is a demonstration foundation practicing unique forms of grantmaking and conducting innovative philanthropy. Bill has consulted at over 400 community and family foundations in the United States, Canada, and the U.K., on creative grantmaking and foundation operations. His primary interest is in the creative and significant use of the philanthropic dollar.
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RECENT SPEAKING ENGAGEMENTS, TEACHING
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Iowa Council of Foundations
Des Moines, IA
April 22 - 23, 2009
Conference Presentation & Breakout Session: "Intuitive Grantmaking"
Association of Small Foundations
San Diego, CA
April 20, 2009
Spring Seminar -Luncheon Plenary: "Grassroots Philanthropy in Difficult Economic Times"
Grants Managers Network
Denver, CO
March 24 - 25, 2009
2009 National Conference - Closing Plenary: "New Dimensions in Philanthropic Giving"
Stanford University
Palo Alto, CA
February 28, 2009
Seminar, Continuing Studies - Philanthropy is For Everyone
Foundations & Donors Interested in Catholic Activities
Fort Myers, FL
January 30, 2009
Presentation on Innovative Giving
Tactical Philanthropy Forum
San Francisco CA
November 19, 2009
Paul Brest, ED, William & Flora Hewlett Foundation and Bill Somerville, ED, PVF in conversation with Sean Stannard-Stockton discuss strategic and grassroots approaches to philanthropy
University of California
Berkeley, CA
November 13/20, 2008
Seminar - Osher Lifelong Learning Institute - Understanding Philanthropy Workshop
Philanthropy Northwest
Coeur d'Alene, ID
September 24, 2008
Annual Conference Keynote Speaker: "Grassroots Philanthropy"
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GRASSROOTS PHILANTHROPY: FIELD NOTES OF A MAVERICK GRANTMAKER
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Grassroots Philanthropy: Field Notes of a Maverick Grant Maker
By Bill Somerville and Fred Setterberg
This is a new book on philanthropy written specifically for community and family foundations, based on Bill's consulting work with over 400 foundations on operational effectiveness and creative grantmaking.
Available on Amazon and through the publisher Heyday Books
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PVF's GRANTMAKING CONSULTING PROGRAM
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Bill Somerville has provided
on-site consulting to over 400 community and family foundations throughout North America and abroad, working with staff, board members and the community to improve operational effectiveness and promote creative grantmaking.
The cost for a two day site
visit is $2,500, air fare, room and board. The Grantmaking Consulting Program is described in detail on PVF's website, www.venturesfoundation.org
The consulting services offered include:
Board Retreats - 1-2 day facilitation at Board Retreats. Work through issues facing foundations, including growth, community outreach, and grantmaking. Results of retreats include critique of foundation's work, new insights for change, and recommendations for the future.
Grantmaking Consultation - Intensive 2-day on-site sessions focusing on analysis of foundation operations, grant making programs, public relations and internal procedures. Includes meetings with foundation Board, grants committee, Board chair, foundation staff, and executive director.
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