In philanthropy, giving money in ways that benefit specific geographic areas is known as “place-based funding.” The decisions behind how and why to fund in this manner vary, but the purpose is to infuse a variety of resources into communities that need them most. Some local philanthropists have pioneered an approach that closely aligns their investments in one San Diego community with the residents they are trying to help.
Picking the "Place"
In 2001, several members of San Diego Grantmakers interested in pursuing place-based funding formed the San Diego Neighborhood Funders (SDNF) collaborative. They decided to focus their work in the Diamond community, an area comprised of 10 neighborhoods in southeast San Diego that has among the lowest average household income and for decades lacked sustainable private sector investment.
Resident-Led Change
There were challenges in bringing different types of funders together for what was then a relatively novel undertaking, but the group agreed that their work should be driven by the Diamond residents in order to resolve underlying community problems. They remained committed to putting residents at the forefront of everything they did – a task that was greatly helped by the relocation of SDNF member the Jacobs Family Foundation’s (JFF) headquarters to the Diamond.
Resident involvement became “one of the core criteria behind our funding decisions,” said Steve Eldred, a program manager at The California Endowment and an SDNF member.
Initially, the funders engaged residents on a block-by-block basis, asking questions as simple as “What changes would you like to see in your neighborhood?” Today, residents regularly attend SDNF meetings and form “Learning Agendas” around issues. Grantees are chosen based on residents’ recommendations, and a resident group even has an ownership stake in the Diamond redevelopment project Market Creek Plaza.
“It’s very personal work,” said Jennifer Vanica, co-chair of SDNF and president and CEO of JFF and its partner foundation, the Jacobs Center for Neighborhood Innovation (JCNI). “We’ve forged powerful friendships as funders and developed high levels of trust with the people we serve because we’re taking risks together.”
Meeting Community Needs
These deep investments are paying off. SDNF has leveraged more than $100 million of investment into the Diamond, including more than $250,000 in small grants and nearly $1 million in Earned Income Tax Credits returned to residents. It has attracted approximately 700 new jobs, and generated numerous projects benefitting the community that address issues such as prisoner re-entry, gang diversion, safe passage to school, and improving educational outcomes.
What Does This Mean About Philanthropy?
SDNF’s work in the Diamond is a model for what good collaborative relationships should look like – not just with community members, but also among different types of funders. “It’s easy to give to causes you believe in,” said SDNF member Doug Diamond. “Our process may be slower, but there’s a greater likelihood that these changes will be sustainable because the people have ownership in them.”
SDNF members include Bank of America, The Legler Benbough Foundation, The California Endowment, California Southern Small Business Development Corporation, Annie E. Casey Foundation, individual philanthropists Alice T. and Douglas B. Diamond, Girard Foundation, Jacobs Center for Neighborhood Innovation, Jacobs Family Foundation, Kaiser Permanente, The Parker Foundation, San Diego Foundation for Change, US BANK, and Wells Fargo Bank.
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