U.S. Foundation Funding for Australia Prepared by Foundation Center in partnership with the United States Studies Centre at the University of Sydney and Philanthropy Australia Authors Executive Summary
FOUNDATION CENTER U.S. Foundation Funding for Australia, the first report of its kind, is Seema Shah Director of Research for Special Projects part of a larger project involving the United States Studies Centre Grace Sato Research Associate at the University of Sydney, Philanthropy Australia, and Foundation Center. A primary goal of this partnership is to improve awareness and understanding in Australia of the U.S. philanthropic sector, while also strengthening philanthropic ties between the two countries and Contributors demonstrating the value of transparency within the not-for-profit sector.
FOUNDATION CENTER In the current report, we examine the priorities of U.S. foundation Anthony DiRosa Program Assistant funding to organizations located in Australia, as well as funding Angie Koo Research Assistant for organizations supporting causes in Australia. The quantitative Steven Lawrence Director of Research analysis is based on grantmaking data from among the largest Bradford K. Smith President U.S. foundations. The report also presents perspectives of U.S. and Davis Winslow Research Assistant Australian funders on the current role of philanthropy in Australia, David Wolcheck Research Associate specific challenges and opportunities, and what is needed to achieve greater impact. UNITED STATES STUDIES CENTRE AT THE UNIVERSITY OF SYDNEY Bates Gill Visiting Professor
PHILANTHROPY AUSTRALIA Sarah Davies Chief Executive Officer Krystian Seibert Policy and Research Manager
Acknowledgements
The United States Studies Centre at the University of Sydney wishes to thank its Board for support of this project, and in particular Board member Mr. Joe Skrzynski AO for his many contributions to the project’s success.
Philanthropy Australia wishes to thank the Skrzynski Sky Foundation, the Trawalla Foundation, and the Snow Foundation for their generous support for this project.
For more information about this report, contact Seema Shah, Director of Research for Special Projects, at [email protected] or +1 (212) 620-4230.
Copyright © 2016 Foundation Center. This work is made available under the terms of the Creative Commons Attribution-NonCommercial 4.0 Unported License, creativecommons.org/licenses/by-nc/4.0/.
ISBN 978-1-59542-515-7 Design by On Design.
2 United States Studies Centre at the University of Sydney, Philanthropy Australia, and Foundation Center Key Findings
U.S. FOUNDATION FUNDING FOR AUSTRALIA • The top recipient of U.S. foundation funding was the Murdoch • Between 2011 and 2013, 71 U.S. foundations awarded 393 total Childrens Research Institute ($9 million). The majority of the top grants to 208 recipients totaling US$95.1 million to/for Australia. recipients (55 percent) were universities. • Health drew the largest proportion of grants awarded to/for Australia, accounting for $40.5 million in giving and 43 percent FUNDER PERSPECTIVES ON PHILANTHROPY IN AUSTRALIA of total grant dollars. This was driven largely by funding by the Bill • U.S. foundations awarding grants to Australia have a variety & Melinda Gates Foundation, which was responsible for 73 percent of motivations for funding in Australia. Some have personal ($29 million) of health-related grantmaking. connections to the country, while corporate foundations are likely • More than half of all grant dollars (52 percent) were explicitly to invest in areas where they have offices. designated for economically disadvantaged groups. • Both U.S. and Australian funders focus on a broad spectrum • Almost all grant dollars in the sample (86 percent) were made of key social issues, among them income inequality, climate directly to organizations located in Australia. Of the top 20 recipients, change, education, and the challenges facing rural and 16 are located in Australia and the remaining four are in the U.S. with indigenous populations. programs focused on Australia. • Similar to NGOs in the U.S., key challenges faced by Australian • Among grant dollars awarded to recipients in Australia, organizations NGOs include building greater capacity to measure outcomes and located in Victoria, New South Wales, and Queensland received ensuring long-term fiscal sustainability. roughly equal amounts of funding (around $22 million each). • There is a dearth of information about philanthropy in Australia that • The largest funder to/for Australia was the Bill & Melinda Gates limits collaboration and coordination. As funders strive to become Foundation, followed by Atlantic Philanthropies and the Gordon more effective and increase their impact, many agree that greater and Betty Moore Foundation. transparency and sharing of information are important.
Sydney Opera House. Credit: Alex Wong.
U.S. FOUNDATION FUNDING FOR AUSTRALIA 3 Introduction
Dr. Bates Gill, Visiting Professor, United States Studies Centre at the University of Sydney
The United States Studies Centre at the University of Sydney (USSC) aims to increase understanding of the United States in Australia through teaching, research, public outreach, and facilitating informative exchanges between the United States and Australia. This report promotes that mission by raising awareness and understanding in Australia of the U.S. philanthropy sector while strengthening philanthropic ties between our two countries. The USSC is proud to have conceived and helped broker and support this collaboration with Philanthropy Australia and Foundation Center.
The present report delivers a new level of understanding about the U.S. philanthropic sector by detailing past and present U.S. foundation giving in Australia, identifying important trends in U.S. philanthropy, and demonstrating the value of transparency, accountability, and information sharing within the social sector. Building on this platform, the USSC looks forward to continuing its work with Philanthropy Australia and Foundation Center to promote stronger Australia-U.S. exchanges across our philanthropic communities. Melbourne Skyline. Credit: Linda Xu.
4 United States Studies Centre at the University of Sydney, Philanthropy Australia, and Foundation Center Sarah Davies, CEO, Philanthropy Australia
Our objective at Philanthropy Australia is to grow philanthropy and collaboration, increase impact, and educate the community about the increase its impact. Part of this involves promoting philanthropy’s role and contribution of philanthropy. contribution to the Australian community, which is why we are delighted to partner with the United States Studies Centre at the Philanthropy Australia agrees and in the coming months and years, University of Sydney and Foundation Center to publish this report, we will be seeking to work with our Members and partners, such which highlights the role of U.S. philanthropy in Australia. as Foundation Center, to develop the tools needed to better share data on Australian philanthropy so we can all take advantage The report does much more than provide some interesting of the benefits that Smith describes. Providing new insights into information—it also exposes the “data deficit” we have when it comes where Australian philanthropic investment is directed will help to Australian philanthropy. We have nothing like Foundation Center’s us all increase our effectiveness. In this regard, this report is just database, which maps grants by U.S. foundations. the beginning of an exciting and important journey.
The fact is we know more about the granting practices of U.S. foundations and their Australian grant recipients than we do about Australian foundations. Philanthropy Australia believes that this needs to change. Bradford Smith’s foreword to this report highlights the benefits of transparency and openness—they support
U.S. FOUNDATION FUNDING FOR AUSTRALIA 5 FOREWORD live in a twilight world in which their desire to have impact while keeping a low profile increasingly collides with growing public Transparency and Impact expectations for transparency. How this tension is negotiated will Bradford K. Smith, President, Foundation Center be crucial to the future of how private wealth contributes to the public good around the world. Philanthropy is one of the most important, but least understood, features of our global market economy. America has more than The reasons why a foundation may choose to remain under 87,000 private foundations that collectively control $798 billion the radar are understandable—including a culture of modesty in assets and make close to $55 billion in grants each year. Europe and a lack of staff capacity. Still, greater transparency in today’s world has over 140,000 “public benefit foundations” with equally impressive is inevitable. What used to be a bilateral relationship between private assets and spending. In Asia, Africa, Latin America, and the Middle foundations and government has now become a triangle with the East, philanthropy is on the rise. digitally literate public. People expect to be able to get information on virtually everything—government, corporations, stores, products, Foundations are the result of a grand public policy bargain that makes celebrities, friends, enemies, and themselves—instantly through their institutionalized philanthropy possible: Wealthy donors are given some smartphones, tablets, or watches. The modern version of the old form of tax incentives to create and maintain private foundations in motto “trust but verify” has been updated to “trust but Google.” exchange for providing a demonstrable, long-term contribution to the You say your mission is “to improve the quality of life for present public good. Part private, part public, many philanthropic foundations and future generations”? Great, I’m going to find how you’re doing it!
6 United States Studies Centre at the University of Sydney, Philanthropy Australia, and Foundation Center Fortunately, foundations are beginning to realize that you can’t make Center, called the China Foundation Center. Australia has a rich a difference in the world without being more transparent. Achieving philanthropic culture, world-class foundations, strong academic impact requires fully understanding the problem you are trying to centers, and innovative support organizations like Philanthropy solve, learning what other foundations already know, and identifying Australia. With the arrival of the Australian Charities and Not-for- foundations with similar interests with whom you can partner to work profits Commission, the quality of macro-level data on philanthropy in at scale. None of this is possible unless foundations openly share Australia has recently improved and will continue to improve. However, information about their work, their grants, and lessons learned. More what is lacking is more comprehensive micro-level data—at the level and more foundations are experimenting with social media, open data, of individual grants—which is needed to promote transparency, open licensing of research, blogging, and other forms of transparency, improve communication, and foster collaboration. realizing that the knowledge they and their colleagues possess may be as valuable as the money they have to give away. It is our hope that this first, modest study serves as a beginning in demonstrating the value of greater transparency. If markets functioned This study demonstrates both the benefits and challenges of perfectly, there would be no poverty, pollution, or injustice. But they transparency. Due to the U.S. regulatory framework and a growing don’t and never will, which is why we need to be compassionate, culture of voluntary transparency, we know more today about the role idealistic, pragmatic, and flexible in using all the tools at our disposal of American philanthropy in Australia than we do about that of to meet the challenges of our time. We have an enormous amount Australian foundations. We even know more about what foundations as to learn from each other in philanthropy’s journey towards greater a whole are doing in a country like China, thanks to the work impact: Transparency is the first important step. of an independent organization modeled after U.S.-based Foundation
Twelve Apostles. Credit: Ronald Woan. Creative Commons License.
U.S. FOUNDATION FUNDING FOR AUSTRALIA 7 Sea Turtle in the Great Barrier Reef. Credit: gjhamley. Creative Commons License.
CHAPTER 1 U.S. Foundation Funding to/for Australia
ABOUT THE DATA U.S. foundation involvement in Australia dates back nearly This analysis is based on Foundation Center’s research set, a century, marked by investments from the Rockefeller Foundation which includes all grants of $10,000 or more reported by 1,000 of the largest U.S. foundations. To account for several and Carnegie Corporation of New York to support and develop funders known to have a presence in Australia, the set also Australian universities. These investments represented a form 2 includes data from five additional foundations. of “soft diplomacy,” opening up relations between the United States
The set represents approximately half of the total grant and Australia, while also helping to position Australian universities dollars awarded by the universe of independent, corporate, among the ranks of major research institutions internationally.1 community, and grantmaking operating foundations in the United States. The data do not include grants by smaller foundations; gifts by corporate giving programs or public U.S. foundations continue to provide significant funding to charities; grants, fellowships, or awards made directly institutions of higher education, but they are also contributing to individuals; grants paid by private foundations to U.S. to a wide range of other issues in modern-day Australia, from community foundations (to avoid double counting of dollars); and loans or program-related investments. supporting rights and opportunities for Aboriginal groups to protecting the biodiversity of Australia’s rich natural resources. Grants included in the analysis for this report include those to recipients located in Australia, as well as to organizations in the U.S. and abroad with programs targeting Australia. In this report, the first of its kind, we examine the priorities of U.S. foundation funding to organizations located in Australia, as well All funding amounts are reported in U.S. dollars. as funding for organizations supporting causes in Australia. This
1 Horne, J. (2011). The Rockefeller Foundation and report is based on grants information collected by Foundation the Modern Australian University, 1926-1942. Center on U.S. private, community, and corporate foundations www.rockarch.org/publications/resrep/horne.pdf and provides detailed analyses related to issues, populations, and [Accessed 29 October 2015]. 2 These foundations are Atlantic Philanthropies, Foundation recipients served by U.S. foundation grants awarded between 2011 for a Just Society, May and Stanley Smith Charitable Trust, and 2013. The report also provides a breakdown of grantmaking Motorola Solutions Foundation, and the Christensen Fund. by geography and notes top foundation funders.
GIVING TO/FOR AUSTRALIA BY U.S. PUBLIC CHARITIES
U.S. public charities are another source of grantmaking support Rockefeller Philanthropy Advisors, Tides Foundation, and Give2Asia for Australia. Public charities typically derive their funding were among the largest funders. In the three-year period, primarily from the general public, receiving contributions from Rockefeller Philanthropy Advisors distributed 71 grants totaling individuals, as well as from government and private foundations. $2.9 million. The largest grant was $200,000 in 2013 to Lord According to Foundation Center’s database, between 2011 and Somers Camp, which engages young people in volunteering and 2013, 13 U.S. public charities distributed $6.5 million to/for community development. The contribution, made in honor of Sue Australia. Though these figures are not comprehensive, they Home, supported construction of an all-weather roof for the camp’s demonstrate the sizable contributions made by public charities. all-purpose court. Tides Foundation distributed 22 grants totaling $1.7 million, and Give2Asia allocated 36 grants totaling $1 million.
8 United States Studies Centre at the University of Sydney, Philanthropy Australia, and Foundation Center Trends in U.S. Foundation Funding to/for Australia Between 2005 and 2013 (with the exception of 2009), annual U.S. contributing to Australia, but it is unclear what other factors may foundation giving to/for Australia ranged from $23.5 million to have contributed to this increase. Building on this broad overview $43.6 million. In 2009, giving spiked to $102 million, reflecting three of historical trends, this report takes a closer look at more recent large grants made by Atlantic Philanthropies totaling $84.5 million. trends, focusing on funding to/for Australia between 2011 and 2013, The number of U.S. foundations active in Australia in any given year using the most complete and comprehensive data available. During increased from 24 in 2005 to 44 in 2013. Some of this growth can this period, 393 grants were awarded by U.S. foundations, with be attributed to an increase in the number of community foundations a three-year total of $95.1 million.
U.S. FOUNDATION FUNDING TO/FOR AUSTRALIA, 2005–2013
Source: Foundation Center, 2016. Based on all grants of $10,000 or more awarded by a Between 2011 and 2013, sample of 1,000 larger foundations. All funding 71 foundations awarded amounts are reported in U.S. dollars. 393 grants totaling $95.1M to 208 recipients.