Loyola University Chicago Loyola eCommons Center for Urban Research and Learning: Centers Publications and Other Works 6-2007 Lessons in Philanthropy: A Case Studies Approach Center for Urban Research and Learning Loyola University Chicago Louis T. Delgado Philanthropy & Nonprofit Sector Program Recommended Citation Center for Urban Research and Learning and Delgado, Louis T., "Lessons in Philanthropy: A Case Studies Approach" (2007). Center for Urban Research and Learning: Publications and Other Works. Paper 17. http://ecommons.luc.edu/curl_pubs/17 This Technical Report is brought to you for free and open access by the Centers at Loyola eCommons. It has been accepted for inclusion in Center for Urban Research and Learning: Publications and Other Works by an authorized administrator of Loyola eCommons. For more information, please contact [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License. Copyright © 2007 Center for Urban Research and Learning at Loyola University Chicago Lessons from Philanthropy: A Case Studies Approach A Report to the Ford Foundation Coordinated and Edited by Louis Delgado Philanthropy & Nonprofit Sector Program Loyola University Chicago June 2007 © 2007 Loyola University Chicago Philanthropy & Nonprofit Sector Program Loyola University Chicago (luc.edu/philanthropy) Funded by the Ford Foundation 2 ACKNOWLEDGEMENTS The majority of the planning, implementation, and coordination of this initiative was led by Mr. Louis Delgado, former Director of the Loyola University Chicago Philanthropy and Non-Profit Sector Program located within the School of Social Work at Loyola University Chicago. The individual authors would like to acknowledge the valuable contribution of Mr. Delgado throughout all the stages of this project. Staff members at the Center for Urban Research and Learning at Loyola University Chicago were also instrumental in the final editing and production of the project. Loyola University Chicago’s Program on Philanthropy and Nonprofits is also grateful to everyone who agreed to be interviewed for this research. We appreciated your time, insight, and wisdom. We hope you will find this useful. For more information, please contact: Gina Lopez, Administrative Manager Center for Urban Research and Learning Loyola University Chicago 820 North Michigan Ave. Suite 1000 Chicago, IL 60611 312.915.7769 3 TABLE OF CONTENTS Introduction………………………………………………………………………...6 The Chicago Annenberg Challenge: The Messiness and Uncertainty of Systems Change Christine C. George A Teaching Case……………………………………………………8 A Teaching Note…………………………………………………..25 Marguerite Casey Foundation: Movement Building Helping Low-Income Families Strengthen Their Voices and Mobilize Their Community Maria Vidal De Haymes A Teaching Case………………………………………………….31 A Teaching Note………………………………………………….46 Community Foundations and Donor Intent: Learning From the Dispute Between the Chicago Community Trust and the Searle Family Joseph K. Hoereth A Teaching Case………………………………………………….50 A Teaching Note………………………………………………….62 Catholic Campaign for Human Development Faith Based Grantmaking: The Challenge of Funding Non-Faith Based Organizations Whose Work Does Not Undermine Official Teachings of the Roman Catholic Church Joel R. Schorn A Teaching Case………………………………………………….66 A Teaching Note………………………………………………….88 Funding Intermediaries as a Strategy for Local Grantmaking: The John D. and Catherine T. MacArthur Foundation and the Local Initiative Support Corporations (LISC) Chicago Joseph K. Hoereth A Teaching Case………………………………………………….93 A Teaching Note………………………………………………...108 The Immigration Fund: Accountability in a Pooled Community Fund Asma M. Ali A Teaching Case…………………………………………………111 A Teaching Note…………………………………………………121 Northwest Area Foundation: Comprehensive Planning with the Indian Land Tenure Community Louis T. Delgado A Teaching Case…………………………………………………128 A Teaching Note…………………………………………………142 4 Julius Rosenwald and the Rosenwald Fund: A Case Study in Non-Perpetual Philanthropy Joseph K. Hoereth A Teaching Case……………………………………………….149 A Teaching Note……………………………………………….165 The Global Fund for Women: Implications of the Patriot Act for Philanthropic Leadership R. Susan Motley A Teaching Case……………………………………………….170 A Teaching Note……………………………………………….185 5 INTRODUCTION Over the past twenty years, academic institutions have increasingly developed programs of study on the nonprofit sector, most of which emphasize nonprofit management or fundraising. The study of organized philanthropy in general, and foundation giving specifically, is still at a relatively early stage of development. Accordingly, the development of research and teaching materials available for use in formal academic settings is largely an unmet need. There are numerous experiences in the grant making process that simply go unreported and unavailable for educational purposes. These experiences, however, can prove extremely educational and should not be overlooked. The cased studies that follow serve as a model for capturing, analyzing, and sharing these important lessons. These case studies are designed to increase the relevance of philanthropy teaching curriculums and better prepare future leaders that are engaged in philanthropy and nonprofit sector work. The overall goal of the present project was to develop case studies that would serve as teaching/learning tools about philanthropy by providing in-depth examination of critical issues and experiences related to foundation decision-making, governance and fund- distribution. Throughout the development of these cases, a special emphasis on philanthropic involvement in communities of color and other under-served communities was maintained in order to improve philanthropy’s work in relation to these populations. A core team of faculty and other professionals were assembled and trained on key aspects of case study research and development, as well as case study teaching methods. These individuals brought with them a wealth of experience in the field of philanthropy as researchers, foundation program officers, and directors of non-profits. Interviews were conducted among a diverse group of 35 foundation and nonprofit executives across the country to identify significant issues in the field. The information from this survey was compiled and analyzed, and led to the identification of over 40 potential cases to be researched. This list was later further narrowed based upon the learning opportunities associated with each case. There were several themes that emerged from the interview data that helped inform the selection process. These themes cover a range of topics from diversity to power imbalances. The cases are grouped into three broad categorizes that organize the cases according to their over-riding theme: Systems Change, Governance, and Fund Distribution. The case studies of the Chicago Annenberg Challenge and the Marguerite Casey Foundation fall into the systems change category with the focus of the development of an organization’s strategies to promote educational reform and social change. The Chicago Community Trust, Catholic Campaign for Human Development, and the John D. and Catherine T. MacArthur Foundation case studies describe the governance, organization and decision making structures within foundations. Lastly, the “Immigration Fund”, the NorthWest Area Foundation, the Rosenwald Foundation and the Global Fund for Women case studies relate to issues involved with funding decisions such as equity and social justice. These categories serve to highlight some of the more pressing issues to be study by students of philanthropy. We hope that these case studies in philanthropy will have an effect in the classroom and on students’ learning, which will ultimately inform the decision-making and grant-making of philanthropic organizations. Many of the philanthropy students ultimately fill positions in nonprofits as well as foundations and will be better prepared to positively influence the work 6 of those institutions. This is particularly important when considering the tremendous amount of improvement needed with respect to philanthropy’s work in under-served communities and communities of color. The research on this subject has consistently shown a tremendous gap between resources of philanthropic institutions and the needs in those communities. We hope that the availability of these cases will strengthen the work of universities and training centers that have an interest in teaching about philanthropy. The case studies can be used in whole or as individual pieces. Each is accompanied by suggestions (Teaching Notes) as to how the case study might best be used in classrooms. We have intentionally allowed both the case studies and the teaching notes to vary in format and content in order to reflect the differences of each situation. We hope that such flexibility will encourage teachers, students, and others who use these studies to bring own unique insights, questions, and approaches to this important material. 7 The Chicago Annenberg Challenge: The Messiness and Uncertainty of Systems Change A Teaching Case Christine C. George Philanthropy & Nonprofit Sector Program Loyola University Chicago 8 © 2007 Loyola University Chicago Philanthropy & Nonprofit Sector Program Loyola University Chicago (luc.edu/philanthropy) Funded by the Ford Foundation 9 This was a messy democratic process. (Ken Rolling, Director, Chicago Annenberg Challenge) ABSTRACT In 1993, three veterans of Chicago