Striking a Compromise

Case StudY 5

Overview Donors Forum quickly launched an advocacy campaign aimed at legislators who Pushing to replace a long list of mostly had long been supportive of their goals. inactive ad hoc charitable advisory groups with one permanent and vibrant Charitable The first success came in 1999 when Advisory Council (CAC) to the Illinois Donors Forum—with the help of its Attorney General’s Office was the daunting members—achieved passage of legislation challenge facing Donors Forum in the requiring the creation of the CAC within the mid-1990s. Attorney General’s office. Disappointingly, it was passed with a one-year sunset. For more than two decades, Illinois grantmakers expressed a desire for open and Unfazed, Donors Forum continued its ongoing dialogue between a succession of advocacy work and in 2001 saw its efforts attorney generals and their staffs through rewarded when the state legislature voted a structured advisory council. The purpose to make the CAC permanent. This time, Lisa Madigan, the Illinois Attorney General, of such a council would be to help educate it passed without the burdensome, arbitrary oversees the state’s charitable sector through its Charitable Trust Bureau, working closely state officials about the roles, missions, addendums the charitable sector could with Donors Forum and its members. needs and successes of Illinois’s philan- and would not accept. thropic sector. Donors Forum once again stepped up to Awareness Case Studies Little progress was made however, as one meet the challenge when it agreed to fund Demonstrating the value and benefits to Attorney General after another dragged their the CAC as a legislative condition for its regional associations and their members as feet on creating another advisory group that creation. they engage policymakers at the local, state would require money and even more valuable and federal levels. time from overburdened staff. A strong proponent of the legislation at that time was then-State Senator Lisa Madigan Beyond Tinkering in Education Reform In 1997, then-Attorney General Jim Ryan who subsequently was elected Illinois’ first Opening the Charitable Spigot introduced legislation to create a permanent female Attorney General in 2003 and was Building the Bridge advisory council with unexpected provisions a stalwart supporter of Donors Forum, the including annual registration fees for state’s philanthropic community and the CAC. Forging a Partnership nonprofit organizations as well as standards Striking a Compromise and a rating system to be developed by Today, the Illinois Attorney General’s Office, Supporting Nonprofit Partners the state and imposed on nonprofits. which oversees the state’s charitable sector through its Charitable Trust Bureau, works Ryan’s proposal surprised Donors Forum, closely with Donors Forum and its members who welcomed the long-awaited opportunity through the CAC when seeking advice to negotiate creating the council without on new legislation, rules, regulations and any—or at least fewer—provisions. enforcement that could impact funders and the nonprofits they serve. Challenge Soon after the General Assembly passed Strategies legislation in 1999 creating the CAC with The challenges to creating the CAC were Led by Donors Forum, philanthropic leaders a sunset clause, the Donors Forum moved numerous, according to Valerie S. Lies, throughout Illinois banded together and to “find a way to convince them (the Donors Forum’s president & CEO. developed strategies to provide a strong, legislature and governor) that the CAC was solid base upon which the CAC would a benefit to both sides (AG and philanthropic Since the mid-1980s there had been a operate and to make the advisory committee sector),” says Janice Rodgers, partner at complacency on the part of the Attorneys sustainable and relevant for years to come. Generals (AGs) and their Bureau of the national law firm of Quarles and Brady Charitable Trust staffs fueled by the belief and another founding/current member Finding a strong ally within the legislature that a permanent CAC was unnecessary of CAC’s Executive Committee. was essential according to Lies. since there were many ad hoc charitable “We had to build an informative bridge committees already providing advice to Donors Forum found that ally in then-State between the state and nonprofits… and the the Bureau, says Lies. Senator Madigan, an ardent champion of CAC was that connector,” adds Rodgers. the nonprofit sector and former teacher and “The challenge and reality were the community organizer. The final challenge to the Donors Forum volunteer ad hoc committees were was offering to secure funding to operate disengaged, never met regularly and simply In what Lies calls a fortuitous chain of the CAC and to staff it with experts in the weren’t impactful,” she says. events, Madigan is today Illinois’ Attorney field, thus taking that burden from the General and works closely with the Donors The next challenge came in getting AG and Bureau staff. Forum and the CAC to keep her Bureau of legislation passed in 1999 to make the Charitable Trust informed and aligned with “It was a necessary step to ensure (CAC) CAC a full, functioning and permanent the needs of the state’s nonprofits. would be a success,” notes Lies. “It also committee working through the Attorney allowed us to make sure the right people General’s office, says Lies. Equally important was finding the best were brought on board and the important nonprofit, civic and community leaders “We had to convince state legislators of issues to our sector were brought to the from across the state to serve on the CAC the importance of not only understanding forefront and addressed.” to ensure that the “… largest pool of ideas, the nonprofit sector, but in getting the issues and solutions would be raised by the A continuing and future challenge remains sector leaders’ input on the many topics best cross-section of the nonprofit sector being prepared to educate and persuade that came before the AG’s staff,” says David possible,” says Lies. each succeeding Attorney General to the Rosen, senior vice president of the Jewish importance of—and need for—the CAC, Federation, a founding member of the CAC Donors Forum also created a CAC Executive adds Lies. executive committee and a former assistant Committee to meet with and advise the Attorney General. Attorney General upon request and to oversee three sub-committees focused on priority issues, according to Rodgers. Those sub-committees are:

Public Education Committee, which helps inform the Attorney General on how to maximize the information, tools and leadership of her office to educate the charitable sector, donors and the broader public about charities and charitable giving.

Data Committee, which advises the Attorney General on how to utilize effec- tively the wealth of data and information her office collects and maintains on the state’s charitable sector.

The Illinois State Capitol Building in Springfield.

c a s e s t u d y #5 striking a c o m p r o m i s e p o l i cy works for philanthrop y Legislative Committee, which reviews Results existing state legislation and regulations All parties involved with the CAC say it has governing the charitable community clearly helped strengthen the relationship and develops ideas and suggestions for between the Attorney General’s Office and improvement. the charitable sector in Illinois. The three working sub-committees typically “Donors Forum’s involvement with the meet two or three times a year, while the CAC has had the significant value added of Executive Committee generally meets once elevating our credibility with other branches or twice per year. of state government and positioning us in a Donors Forum provides the bulk of the staff- stronger way to advance our broader policy ing support for the committees and usually work and agenda,” says Laurel O’Sullivan, initiates and coordinates those meetings. senior director for Policy and Strategic Initiatives for Donors Forum. “Another strategy was to appoint people with a deep interest in and aligned goals One of the CAC’s biggest successes— to serve as co-chairs,” says Lies. through its Data Committee—was advising the Attorney General’s Office on an Bringing Rosen on board to lend his extensive project to make all of her office’s experience both in the nonprofit sector and charity filings available to the public through as a former assistant Attorney General and a new online database on the AG’s web site. his broad personal and professional Enhances Donors Forum’s value to its connections “was a strategic move that has “We worked very closely with the (CAC) members had a far-reaching and positive impact for on this project and they were a tremendous CAC,” adds Lies. resource for us,” says Therese Harris, chief “We couldn’t be more pleased with the of the Illinois AG’s Bureau of Charitable Trust. results we’ve realized from having the CAC “David provided us a wealth of institutional as a permanent committee attached to the knowledge and important contacts that he From both Donors Forum’s and the Attorney Attorney General’s Office,” says Lies. “CAC had developed over the years. That helped General’s perspective, the CAC now provides is respected throughout state government; our work tremendously.” a number of beneficial outcomes for the it has impact when its leadership makes state’s charitable sector and its citizens. recommendations on behalf of the nonprofit According to both Lies and Harris, the CAC: sector; and it provides a strong voice when The creation of the CAC is Acts as an independent resource for dealing with the many issues that arise that could affect our work.” “one of the most important charities and donors developments in both Helps the Attorney General be a strong giving an important voice supporter of the nonprofit community to the nonprofit sector Provides the Attorney General with a while protecting and keeping large, direct and ready-made constituency the public informed at that can speak about the state’s work on all times.” behalf of the sector while reaching out to the philanthropic community —Michael Madigan, Speaker, Illinois House Supports self-regulation of nonprofits

Decreases the likelihood of harmful legislation that could impede the work of grantmakers and other nonprofits

c a s e s t u d y #5 striking a c o m p r o m i s e p o l i cy works for philanthrop y PolicyWorks for Philanthropy seeks to build the capacity of regional associations of grantmakers’ staff, board and volunteer leaders to engage policy makers in support of a vibrant and effective philanthropic sector. The 20 regional associations participating in PolicyWorks serve more than 3,000 foundations and corporate giving programs in 37 states. Policy work includes: government relations—related to legislation and regulations affecting the work of charitable foundations; and public policy engagement—supporting the achievement of charitable foundations’ grantmaking goals.

PolicyWorks is led by the Council of Michigan Foundations, Donors Forum (Illinois), Grantmakers of Western Pennsylvania, Northern California Grantmakers, Ohio Grantmakers Forum and Philanthropy New York and funded by the William and Flora Hewlett Foundation and the Charles Stewart Mott Foundation.

Harris, chief of the AG’s Bureau of Response From key lessons for success Policymakers Charitable Trust, agrees. “It took a long time to establish the CAC, Illinois’ experience in creating Illinois AG Madigan calls the CAC “one but its positive impact has been felt ever and operating a legally-mandated of the most important components of my since its inception…and we are more charitable advisory group was a office when it comes to working with the focused, educated and directed in our work long-term effort, requiring patience charitable sector throughout the state.” thanks to the leadership of this committee and persistence. One of the key “The CAC (executive) leadership is smart, and the work that they do,” she adds. tips Lies offers is that charitable tremendously dedicated to representing organizations looking to work with Illinois Majority Leader James F. Clayborne the best interests of its sector and has the an AG’s office need to realize it can Jr., also credits the CAC “with providing political savvy to assist us in providing be a time-consuming process… and beneficial insight into the nonprofit sector information to get things done in state they should understand and accept that wasn’t always available prior to its government,” adds Madigan. “While our the costs associated with doing it. creation. Its (CAC’s) work is extremely job is to oversee the nonprofit sector, important as it represents a sector of our Manage expectations, making sure working with the CAC provides needed state that touches many lives and everyone involved has the same insight and direction that helps protect communities.” expectations not only those involved in philanthropy, but the public as well. It’s a win-win Be politically savvy, analyzing how politics might affect its work for all of us.” Find the right people who understand the field and navigate the political terrain

Devote sufficient time and resources

Be patient and persistent

Create win-win outcomes