THE EAST BAY COMMUNITY FOUNDATION www.ebcf.org TOWARDS A JUST E A ST BAY

Early Lessons Learned from EBCF's Change Journey

A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 1 ACKNOWLEDGEMENTS ABOUT THE AUTHORS The authors would like to thank several individuals in particular for their input and contributions to “Towards a Just East Bay: Frontline Solutions is a Black-owned national consulting Early Lessons Learned from EBCF’s Change Journey,” without firm that delivers a full range of services in strategic and whom this report would not have been possible. Thank you to the business planning, program design and implementation, many interviewees and reviewers who provided valuable insights: research, evaluation, technical assistance, and community Alexandra Aquino-Fike, Rob Davenport, Clarissa Doutherd, engagement. With 17 full-time staff spanning four cities Amy Fitzgerald, Mark Friedman, Angie Garling, Mike Gast, (Philadelphia, PA, Baltimore, MD, Washington, DC, and Ed Harris, Byron Johnson, Nicole Kyauk, Mario Lugay, Stacey Durham, NC), the Frontline team is comprised of organizers, Manley, Muhammad McCabe, Betsy Merzenich, Bonnie Moss, scholars, strategists, artists, and coaches who are adept at David Pontecorvo, Jessamyn Sabbag, Alexander Saingchin, Jeff utilizing consulting as a tool for social change. Frontline’s Sunshine, Shiree Teng, Dan Tuttle, Constance Walker, as well as capacity is further augmented by a robust team of part- all those who have not been named. To encourage candor, most time subject-matter and technical experts. interviews were conducted on the condition that the respondents would not be quoted by name, and therefore excerpts from the The researchers and writers for this report were: interviews are not footnoted. • Emily Hylton Special thanks also to Favianna Rodriguez, the artist whose • Katrina Gamble beautiful work is featured on the front cover, to Dionne Aiken, who designed this publication, to Rachel Hylton, who edited the • Micah Gilmer content, and to Sachi Yoshii, who led this initiative at EBCF. • Zaid Khatib For more information, contact Sachi at [email protected] or visit www.ebcf.org INTRODUCTION

Over the past several years, the East EBCF understands that the value proposition 2 11 Bay Community Foundation (EBCF) has of community foundations is shifting. The been quietly doing something that is truly Introduction Capacity framework of community foundations has remarkable in the community foundation become less necessary for donors, thanks to Building landscape: implementing totally new ways of new technology platforms that allow donors in Under- partnering with donors, social movements, to navigate the technical aspects of giving in and the community at large. EBCF is a matter of a few clicks. Nevertheless, the core Resourced serving as a testing ground for ideas that benefit of the community foundation model Communities may also work in other areas of the country, continues to be a foundation’s experiential, 3 proving that new funding models are both qualitative, and deeply personal knowledge Lobbying & legally and logistically possible. This work has of a specific community. EBCF has begun Advocacy challenged long-held assumptions about to engage donors in a dynamic process of in Support what community foundations may allowably leadership, training, and organizing by inviting of Social do, busting myths that are often used as donors to partner with movements in their Movements 17 excuses to maintain the status quo. As EBCF advocacy work. EBCF realizes the fundamental Institutional removes barriers, the question that remains importance of treating community as an equally- Assets as for more risk-averse community foundations weighted stakeholder. Without the trust and is not whether they are able to create support of community, the foundation would Community transformational change, but whether they not have the capital to serve as a relationship 7 Assets are willing to do so. broker and credible advisor to donors. Perhaps most notably, EBCF has engaged in Change is difficult, and requires risk: Building direct campaign work through lobbying and reputational, relational, financial, and sometimes Donor advocacy, going beyond civic engagement legal. Major organizational shifts inevitably bring and voter registration to hold political Leadership challenges, struggles, and even failures. EBCF positions on issues central to the prosperity of has been quick to own these shortcomings, 19 the East Bay. This new way of working allows knowing that they are part of the process Creating the foundation to more adequately support of creating meaningful change. This report Conditions for movement and community priorities in the highlights several new initiatives that have context of advancing political and legislative Organizational recently been piloted by EBCF while remaining causes. Through the launch of the Accelerating transparent about the lessons that the Transformation and Stabilizing Communities through foundation has learned along the way. Equitable Nonprofit Development: Black-Led Organizations (ASCEND:BLO) program, EBCF -THE FRONTLINE SOLUTIONS has challenged the idea of universal, one-size- TEAM: KATRINA GAMBLE, MICAH fits-all capacity-building strategies. The early GILMER, EMILY HYLTON, AND ZAID success of ASCEND:BLO is a testament to the KHATIB power of targeted solutions in addressing structural inequities.

JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 2 When the East Bay Community Foundation public charity to lobby in support of community decided to partner with community-led priorities. EBCF was able to work with a range of organizations working in communities of color partners, including public and private foundations to enact transformational change, it knew that as well as corporations, to raise over $1.2 million in LOBBYING & ADVOCACY explicit lobbying and advocacy activities should 1.5 years to support community-led ballot measures be a significant part of its approach to building on early child care and education. community power. Yet how could it do so with a IN SUPPORT OF SOCIAL The Fund generated resources for movement limited discretionary grantmaking budget and a organizations who could now more holistically relatively small endowment? How can a fundraising engage in ballot measures – primarily those foundation deploy lobbying dollars when much of MOVEMENTS related to early child care and education, but also its revenues come from donor-advised funds as well those related to other community priorities. In as private foundations, both of which are prohibited 2018, for example, the Fund moved resources to from directly supporting lobbying activities? How support passage of the Measure A ballot initiative could the creation of a lobbying vehicle best support in Alameda County. Its passage would have raised the aims of community-led organizations and the $140 million to provide additional resources for “Simply defined, power is the ability to do work. When movements they champion? These are the questions early child care and education for homeless families that EBCF asked in identifying how to best support we’re locked out of city hall, we don’t have much power, and children, increase access to affordable and systems change with low-income communities of quality child care and education to thousands of but when we can negotiate on behalf of our communities color in the vanguard. families on waiting lists, raise the wage for early with a transformational lens and change both the public At the outset, EBCF worked closely with various legal educators, and otherwise improve early care and narrative and concrete policies, that’s what we think of experts, such as those with the Alliance for Justice’s education in Alameda County. This is an incredibly as power,” says Jessamyn Sabbag, Executive Director of Bolder Advocacy program, to understand how to pressing issue, as there are growing racial and create a pooled fund structure that would maximize economic inequities in early education readiness Oakland Rising Action. In other words, the ability to directly flexibility to receive resources from a variety of in Alameda County. While 82 percent of white advocate on behalf of communities and be engaged in sources. EBCF learned that the tax code allows students in Alameda County are kindergarten- private foundations to contribute, provided that ready when entering school, only 36 percent of strategic political campaign decisions is a fundamental the donations are not earmarked for lobbying.1 African American and 29 percent of Latinx students component of building sustainable community power. reach this benchmark, and similar disparities exist EBCF’s first experiment in this arena came in across economic measures. Measure A was an However, those most directly impacted by inequity are October 2017 in the form of the Early Childhood opportunity to use government revenue to address Progress Fund (“the Fund”), a pooled fund vehicle often restricted to performing public education, which, this significant problem. While Measure A came that would provide the space and resources for short of successfully passing by just 1,500 votes, while critically important, is nevertheless only one part of community-led organizations specializing in early the effort built significant organizational capacity care and education to engage in the full breadth the work. Organizations have indicated that limiting their within the community-led groups that engaged of their work. What is particularly special about the in the campaign, developed strong public support work to public education and non-lobbying activity often Fund is that it was designed not only to deploy 501(c) for early care and education, and now serves as (3) grants but also to maximize EBCF’s ability as a leaves them outside the room where important policy and a model for how to run inclusive, community-led political decisions are being made. As one leader said, “we are often seen as only the foot soldiers and not the strategic thinkers to lead the movement.” 1 The applicable regulations provide that a grant by a private foundation to an organization described in IRC Section 509(a)(1), (2), or (3) (generally, a public charity) will not constitute a taxable expenditure by the private foundation as long as the grant is not “earmarked” to be used for any activity described in the taxable expenditure provisions of the Internal Revenue Code, including lobbying. There also may not be any agreement pursuant to which the private foundation may cause the grantee to engage in such an activity. A grant will be considered “earmarked” for these purposes if the grant is given pursuant to an oral or written agreement that the grant will be used for specific purposes.

3 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 4 LOBBYING AND ADVOCACY WINS SUPPORTED BY

ballot campaigns. As one donor to the Fund resources in the build-up or follow-up to a ballot EBCF IN 2018 noted, “Children and child agencies don’t have campaign. The Fund also moved grants in a way While there were some challenges deep pockets to fund campaigns, so it’s important that gave organizations the flexibility to use the associated with the campaign and to find creative ways like this [the Early Childhood resources as needed. As Amy Fitzgerald, Senior City of Oakland – Measure Z the development of the Fund, EBCF’s Progress Fund] to get foundations to pool their Program Officer at EBCF, says, “My orientation is strong relationships with philanthropic Oakland voters approved Measure Z, which money in order to get more government resources to put resources into the field and let exceptional increases the minimum wage for hotel employees- and community partners served to for this issue.” people do their work.” This flexibility in resources -a largely female, immigrant workforce – from $13.23 mitigate most of the difficulties, and also helped organizations avoid the resource to $15.00 with healthcare benefits or $20.00 without One way EBCF helped support a more community- previously-established trust between exhaustion often experienced by organizations healthcare benefits. The measure also establishes centered campaign was by moving early resources EBCF and private foundations proved workplace protections and additional enforcement forced to grow to organizations to crucial in navigating legal compliance procedures for employment standards applied to quickly in response conduct a massive conversations. Likewise, community- hotel and non-hotel employees. to campaigns. listening session led organizations also indicated that Organizations were program. This they trusted EBCF to support them in able to invest in City of Berkeley – Measures O & P program gathered “Children and child agencies leading the campaign, in part because operations and other In response to the ongoing crisis of homelessness, community input the EBCF staff is comprised of individuals don’t have deep pockets infrastructure in a way Berkeley voters approved Measures O and P. in order to inform with strong connections to community that allowed them to Measure O authorizes the City to issue bonds the development organizing groups. While challenges to fund campaigns, so it’s sustain their growth to fund housing for low- and middle-income of the policy that arise in any cooperative philanthropic individuals and families, veterans, the homeless and actively organize ultimately reached space, other organizations can take note and other vulnerable populations. Measure P important to find creative after the election. the ballot. of EBCF’s strategies and draw on strong increases the real estate transfer tax, in part to fund homeless services. ways like this [the Early The Fund’s resources relationships to effectively navigate these Organizations also allowed challenges. The overall sentiment from hosted more Childhood Progress Fund] to organizations to be both funders and advocates engaged than 100 listening City of Richmond active, consistent around the Measure A campaign is that sessions across get foundations to pool their Kids First Richmond (Measures E, K, & H): The Kids participants in strategic it was an incredibly effective model the county, with First Initiative creates a dedicated funding source money in order to get more decision-making that empowered community-centered from the city’s general fund to support expanded dozens led by spaces throughout organizations to lead in ways otherwise services for youth and establishes a Department Parent Voices, government resources for the campaign. inaccessible to them without resources of Children and Youth within the city of Richmond. a parent-led Consultants and other from the Fund. This model can be In November, Richmond voters approved Measure organization H, which increases the real estate transfer tax this issue.” political operatives used on issues beyond early care and with deep ties to on luxury properties and provides the funding hired to run ballot education, as demonstrated in the the community, stream required for full implementation of the committees do not highlighted box on this page. As one Kids First Initiative. particularly to low- often find themselves funder noted, “Any time you can pool income families A DONOR TO THE FUND sitting at the same righteous forces for positive systems and families of table as community- change, it is worthwhile.” State of California color. The listening led groups, which The California Schools and Local Communities sessions not only increased public awareness led to some challenges. Despite that, grantees Funding Act: Qualified the first-ever ballot and support for the effort, but the perspective of of the Fund indicated that early and consistent initiative that would require commercial and families led to more equitable policy language. The resources gave them more capacity and ability industrial properties to be assessed at fair market organizations’ ability to initiate such a broad and value and reclaim $11 billion every year to reinvest to assert their leadership in these spaces. The diverse set of listening sessions was due, in large in local schools and communities. The measure East Bay Community Foundation’s leverage as a maintains current protections for homeowners part, to the early resources channeled to them funder was also helpful both in affirming the rights and renters, and includes small business tax by the Fund. Typically, philanthropic investment of community groups to weigh in on campaign relief, oversight, and accountability. For over during election cycles occurs right around Election decisions and in building alignment and leadership 40 years, a corporate tax loophole has drained Day, which can create a boom-and-bust scenario within campaign spaces. billions of dollars from California local schools and that leaves community-led organizations without communities; this initiative would put California on par with how the vast majority of the country assesses commercial property.

5 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 6 Donors are often asked to give money to leaders and activists for justice but are less commonly asked to be them. In considering its mission to create an inclusive, fair, and just East Bay, EBCF realized that donors in the area were an under-tapped resource. “Like many of us, donors in the East Bay have been feeling anxiety, isolation, and fear about what’s going on at the national and state level,” says Alexandra Aquino-Fike, Vice President of Development at EBCF. The foundation wanted to explore how to engage donors in a multi-directional, dynamic process. Within a donor-organizing BUILDING DONOR framework, a donation to EBCF would be a bridge to greater involvement in local movements, campaigns, organizations, and communities – and to LEADERSHIP experience some of the joy that comes from creating change with a community. “Like many of us, Donor organizing is not new, and several innovative models have gained donors in the East Like many community foundations, EBCF has a limited fund national attention in recent years. The Bay have been feeling Giving Project model, developed and of discretionary dollars yet a substantial base of nearly 500 evolved by philanthropies such as the anxiety, isolation, individual donors. Engaging individual donors is therefore Social Justice Fund Northwest and Headwaters Foundation for Justice, and fear about what’s critical in order to activate additional resources to support engages cohorts of donors in a six- going on at national month process of community building, community-led organizations and social movements. This grassroots fundraising, navigating and state level.” mobilization of power and capital towards communities power dynamics, learning, and action. The program has raised more than $5 requires a transformative approach to donor engagement. million from 8,000 people and has been Although many advocates join social movements because of a transformative experience for many of ALEXANDRA AQUINO-FIKE, the donors involved. Wanting to learn VICE PRESIDENT OF outrage over injustice, Mario Lugay of Justice Funders notes from those who have paved the way DEVELOPMENT AT EBCF that the secret to keeping people engaged is something in engaging donors, EBCF brought on Justice Funders to help develop a donor-organizing model and to integrate different: joy . “To sustain an individual’s impulse to do good and apply learnings from other organizations that have long supported social movements, such as Resource Generation, North Star Fund, and the over a lifetime, you need them to find joy and love for the Chinook Fund. As an organization deeply rooted in the Bay Area but national community of people they create change with, to find joy and in scope, Justice Funders saw a tremendous and unique opportunity in EBCF’s invitation to develop a donor-organizing model for community love for who they are as individuals, and to develop their sense foundations – and they posited that EBCF’s change process provided a ripe of agency and purpose,” Lugay says. This principle applies to moment to begin. all community members, including donors, and serves as the basis for EBCF’s emerging work with donor organizing.

7 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 8 The Justice Funders team emphasizes that building an impactful, lasting donor-organizing program requires an ecosystems approach and a major organizational shift. “EBCF has a real Donor organizing has yet to become mainstream practice, and few opportunity to help donors become community foundations have taken steps to engage their donors’ full resources, skills, and networks in support of social justice movements. accountable and effective supporters, “EBCF has a real EBCF’s emerging work with donor organizing is unique and well worth peer organizers, and leaders for a Just opportunity to help following for several reasons. First, EBCF is deeply rooted in a sense of East Bay,“ says Michael Gast of Justice place and thus can offer donors the interpersonal relationships and Funders. “It is a big shift that will take donors become closeness to community that national institutions cannot always provide. significant internal change.” Together, Second, like most community foundations, EBCF’s discretionary resources EBCF and Justice Funders created accountable and are limited, making its success in applying a donor-organizing approach a road map outlining the types of effective supporters, tenable as a blueprint for how other community foundations may holistically engage donors to support social movements. Third, EBCF’s activities that EBCF could take to create undertaking is not without risks. None of the foundations engaging a transformational approach: build up peer organizers, and in the Giving Project model of donor organizing possess assets under a base of donors aligned with the Just leaders for a Just East management at the scale of EBCF’s (currently valued at approximately East Bay framework, develop donor Bay, “ says Michael $400 million), and these foundations also have a long history of leaders and ambassadors, convene supporting social movements. They are not making the fundamental local social justice donor education Gast of Justice Funders. shifts that EBCF will make, moving from a donor services approach to groups, and ultimately launch giving one of donor organizing, and from a charity model to one that supports change led by marginalized communities. campaigns and other opportunities “It is a big shift that for donors to support community-led will take significant Taking these risks is exactly what a community foundation like EBCF groups and movement campaigns. must do in order to truly support community-led transformation. Being The development and program internal change.” an early adopter inherently requires moving forward with uncertainty in teams also must work hand-in-hand outcome, but EBCF is faced with a unique opportunity to create a pilot program that other community foundations can learn from. EBCF’s risk to ensure internal consistency in MICHAEL GAST OF presents a huge potential gain for the world of place-based community methods of funding and promoting JUSTICE FUNDERS foundations. Donors and other foundations have the opportunity to invest community organizing. EBCF is in EBCF as a north star of donor organizing in place-based community engaged in numerous parallel and in- foundations. This emerging work – engaging donors’ full selves as leaders depth learning tracks that are building of their communities – has the power to build lasting, transformational the bedrock for its entire staff to see funding and to advance justice far beyond the East Bay. themselves as donor organizers. These staff are being primed to activate EBCF’s donor base in support of social movements.

9 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 10 A 2017 report by the Hill-Snowdon Foundation and Alliance for Black Foundation Executives indicates that less than two percent of funding CAPACITY BUILDING by the nation’s largest foundations is specifically targeted to the Black community. The authors argue that this pattern of neglect is likely worse for Black-led community organizing groups, given that organizing and IN UNDER-RESOURCED advocacy account for a relatively meager proportion of overall giving. Lack of funding limits the ability of BLOs to build institutional power and help COMMUNITIES Black communities thrive. Byron Johnson, who leads the ASCEND:BLO program, says, “Going back thirty to forty years, there has always been a strong core of Black thought leadership in philanthropy and nonprofits in the Bay Area.” Johnson points out that this history corresponds with the rise of the Black Panthers and a sense of Black unity, pride, and leadership “Going back thirty As a part of a new focus on uplifting disadvantaged communities to development that has been core to enact systems change, EBCF is engaged in deep capacity building Oakland and its surrounding areas. to forty years, there There is also a direct connection to in communities and geographic areas that have historically received today’s movements such as Black has always been a Lives Matter and #metoo. In light little support from philanthropy. Such communities often have weaker strong core of Black of that legacy, a group of local and nonprofit infrastructure overall, and they face particular infrastructure regional funders were alarmed at the thought leadership closure of several prominent BLOs in in philanthropy and challenges related to community organizing and change-seeking the Bay Area in 2015. social movements. Developing broad community power in the nonprofits in the In response to emerging research East Bay requires EBCF to provide culturally- and geographically- on the needs and opportunities Bay Area.” of BLOs, this group of funders appropriate supports to strengthen existing local nonprofit decided to take a capacity-building organizations. EBCF hopes that increased stability will enable these approach to support Bay Area BLOs, BYRON JOHNSON with the explicit desire to invest ASCEND:BLO organizations to engage their constituencies in important policy in race-conscious organizations conversations. With this in mind, the foundation has developed that serve communities of color. The momentum and culture of the funders’ collaborative was integral in setting the tone for ASCEND:BLO. the Accelerating and Stabilizing Communities through Equitable Philanthropic foundations joined the collaborative with the intent of becoming multi-year investors and, along with other initial core funders, Nonprofit Development: Black-Led Organizations (ASCEND:BLO) committed to raising at least $1.5 million annually. program. The program is designed to strengthen Bay Area Black- led organizations (BLOs) and to establish a model for a community- centered capacity-building program that may be adapted for other marginalized communities and under-resourced areas.

11 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 12 This circle has grown into a unique, diverse grouping of funders that includes private, family, and community foundations, The BLO Accelerator was launched in 2018 to reach community local governments, and corporations. anchor organizations with a bold vision for growth, mission impact, The collaborative uses consensus-based and community transformation. The five-organization cohort was decision-making and serves as the selected from 51 applicants and includes the African American Art and governing body for the initiative. EBCF Culture Complex, the Hidden Genius Project, the Black Organizing In the broader context of historical exclusion has intentionally created opportunities for Project, Roots Community Health Center, and the Community and structural racism, BLOs have been forced funders to provide input on key decisions Housing Development Corporation. These organizations’ bold ideas for to compete with one another for resources, throughout the process. community transformation range which has resulted in a “crabs in a barrel” from creating a center for Black joy in Initially there was hesitancy and even mentality. Additionally, the failure of one “EBCF made sure the Bay Area to developing a strategy resistance from potential funders (“Why BLO has often been seen as reflective of the for repurposing land owned by Black to get it right, with Black-Led?”) which is consistent with the entire community. Black leaders are placed churches for sustainable community experience of many BLOs when seeking under tremendous pressure to succeed and development. Johnson notes that community at the funding for similar efforts that address isolated from their peers, often at the expense a key approach to the Accelerator systemic inequities. Eventually, however, of their own personal well-being. In the spirit center, and spirit model was to actively engage sufficient funding was secured to embark of counteracting this harm, network-wide participants in a co-design process: in mind.” upon a design process steeped in cultural ASCEND:BLO events have focused on creating “The first Accelerator group agreed humility. All those involved in planning Black-centered spaces with atmospheres of upon the values that they wanted to – including EBCF staff, consultants, love and support. Organizers have hosted lift up in their cohort, and who they BLACK ORGANIZING evaluators, and funders – brought a race these events in venues such as the African wanted to be in the group.” Three PROJECT PARTICIPANT and equity lens to the project, as well as a American Art Museum in San Francisco, participants were included from spirit of affirmation and mutual respect. selecting everything from the tablecloths each organization to help ensure that BLOs were consulted as the players who to music and catering in celebration of capacity would be built throughout the entire organization rather than could best identify the resources and Blackness and cultivation of Black joy. This via a top-down effort (such efforts, initiated by the executive director, supports that would help them take their atmosphere has been critical for healing and reinforce the old “heroic leader” model). Accelerator organizations have work to the next level. The design team for building a community of power and pride taken ownership of the cohort experience, offering 100% attendance recruited technical assistance providers among Bay Area BLOs. About half of the and full participation over five meetings. EBCF staff realize that this and capacity-building experts who had 260+ BLOs identified in the region have been level of participation is a rarity in capacity-building programs and thus extensive experience in working with BLOs. actively involved in the ASCEND:BLO network. is evidence of a truly supportive Accelerator environment. Participants These members brought an understanding themselves have also indicated that the Accelerator experience has of the context in which BLOs operate and been uniquely valuable. “This Black learning community should serve as integrated a racial and equity lens into a model [to which] supporters and ally-funders can look when creating their work. a space designed to support the most impacted communities first,”

ASCEND:BLO officially launched in 2017. It participants from the Black Organizing Project stated in a recent press has three components: 1) the BLO Network: release. “EBCF made sure to get it right, with community at the center, comprised of all BLOs in Alameda, Contra and spirit in mind.” Costa, Marin, San Francisco, San Mateo and Santa Clara counties; 2) the BLO Accelerator, and 3) the BLO Stabilizer.

13 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 14 ASCEND:BLO TIMELINE FUNDING FOR ASCEND:BLO 2015 $10 $2.7 “Black-Led MILLION MILLION Organizations (BLOs) Current plans for the Stabilizer, which will launch in 2019, involve a in the Bay Area” report 2016 Capitalized at Initial investors made five-organization leadership cohort that will meet intensively for is released; Funder $10 million over multi-year commitments Research, planning, six to nine months with a three-year follow-up period. Research Collaborative forms seven years of at least $1,500,000; a fundraising, on BLOs in the Bay Area has shown that only 24% of organizations total of $2.7 million has and discussions have a succession plan, and few have had the time, resources, or been invested to date on developing personnel to cultivate a long-term leadership pipeline. The Stabilizer 2017 the structure will therefore focus on supporting mature BLOs that are planning for ASCEND:BLO officially and function of leadership transition. These organizations will receive support before Investors include: Cestra Butner, The East Bay launches; Capacity ASCEND:BLO and during the transition to ensure stability and growth. Beyond Community Foundation, The Akonadi Foundation, Building Initiative the launch of the Stabilizer, The County of Alameda, The San Francisco Officer hired EBCF is also planning the first Foundation, The Kapor Center for Social Impact, 2018 ASCEND:BLO Network Summit “For philanthropy, The Y & H Soda Foundation, The California and the onboarding of an putting race in the Endowment, The Walter and Elise Haas, Sr. Fund, Two network-wide Advisory Board in 2019. the California Wellness Foundation, The Millikan 2019 events are held; First Family Fund, The Sobrato Family Foundation, The Accelerator cohort ASCEND:BLO offers a multi- center is disrupting Launch of Stabilizer Ellebie Mathis Fund, The Raiders Foundation, US layered, values-based model cohort planned; business as usual.” Bank intended as a case study for First ASCEND:BLO similar BLO or identity-focused conference planned initiatives in other regions. SHIREE TENG “We are learning about how ASCEND EVALUATOR our experience could inform emerging work in other parts of the country and be helpful for other audiences – women, [Asian- Pacific Islander] leaders, Latinx leaders, etc,” says Constance Walker, KEY COMPONENTS OF THE ASCEND:BLO INITIATIVE President of Walker and Associates and consultant for ASCEND:BLO. ASCEND’s explicit attention to race has allowed for targeted supports BLO NETWORK: BLO ACCELERATOR: BLO STABILIZER: that are provided by and for Black organizations and are grounded Provides peer networking, learning, An intensive, six-month program for a A three-year cohort learning in a sense of power. “For philanthropy, putting race in the center is and community building to all BLOs cohort of five anchor institutions that program for mature community disrupting business as usual,” says Shiree Teng, ASCEND’s external in the Bay Area. Supports have have a vision for growth, promising anchors designed to minimize risk evaluator. She explains that Accelerator and BLO network-wide included: ideas, and a willingness to work and maximize transformational events have fostered an environment where Black leaders can bolster in new ways to catalyze personal, opportunities. Key supports include: Access to networking events, their capacity and networks and do not have to talk in code. “Here,” • organizational, and community workshops, speakers, and other Leadership development, board Teng says, “there is an opportunity to acknowledge structural racism change. Key features include: • resources. recruitment, advanced training, and create a space of Black power, joy, and palpable connectedness.” • An initial $25,000 stipend, three years succession planning, strategic Individual support from capacity • of investment, and ongoing capacity planning, and executive search. builders and technical assistance building support. providers in marketing, resource • Mentorship, coaching, and development, fundraising, • A series of five in-person meetings technical supports to assist sustainability, and strategy. that include coaching, technical the outgoing leader, senior supports, and opportunities to pitch management, board, and ideas to funders. incoming leader in managing change.

15 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 16 In early 2018, Harris and his team realized that the foundation was missing an important criterion in its investment philosophy. EBCF had no women or minorities managing its portfolios, and its $4.5 million environmental, social, and corporate governance (ESG) pool had not shown much growth in the number of donors or assets in its three-year existence. Recognizing this missed opportunity, EBCF made the strategic decision to better align its financial resources and decisions with the foundation’s broader “Overall, what values and mission. “We now factor in the social impact of our investments in addition most energizes me to looking at them from a purely financial is our plan to link point of view,” explains Harris. program, finance INSTITUTIONAL ASSETS In 2018, EBCF began a series of steps to ensure that its financial investments align and operations, with its values. The foundation’s investments AS COMMUNITY ASSETS committee updated its policy to require that and investment minority and/or women-owned business management in a enterprises (MWBE) receive an equal opportunity to be hired as managers for coherent strategy EBCF’s investment portfolios. The foundation plans to continue increasing its relationships and as part of the with new MWBE firms in its main pools. EBCF brand.” EBCF also recognizes that traditional When demonstrating evidence of social and economic consultant firms restrict the investment managers that their consultants can use. impact, foundations routinely point to grantmaking as the ROB DAVENPORT This qualifying process has limited MWBE EBCF BOARD MEMBER primary indicator of success. However, only 5 to 10% of a firms to 2% of assets under management nationally. EBCF decided to utilize 25 to 50% of its discretionary endowment to create an community foundation’s assets are distributed by grants Opportunity Pool for emerging managers. EBCF is also hiring an environmental, social, each year. Where and how the remainder of the foundation’s and governance (ESG) consultant to commence a process in which staff and board members develop a social values statement that can be used to screen investments. assets are invested can greatly increase impact – or actively This process and subsequent screening will help ensure that EBCF’s investments are go against the institution’s mission. “Up until a few years aligned with its mission. ago, EBCF primarily made investments based on projected Finally, EBCF decided to invest 15% of its money-market-equivalent pool in certificates of deposit (CDs) held by local community banks and credit unions. The majority of financial returns and selected investments that offered the these financial partners are community development financial institutions (CDFIs) that highest risk-adjusted rate of return,” explains Ed Harris, Chief provide loans to underserved communities typically overlooked by commercial banks. In the second quarter of 2019, EBCF is planning to re-launch its investment strategy Financial Officer at EBCF. and is currently determining how impact investments may be leveraged as a point of differentiation for EBCF as a philanthropic partner. “Overall, what most energizes me is our plan to link program, finance and operations, and investment management in a coherent strategy and as part of the EBCF brand,” says Rob Davenport, Board Member at the foundation.

17 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 18 EBCF believes that social movements led by directly several key questions. First, what defines a strong impacted communities will ultimately be the organizational culture? EBCF has learned that most effective drivers of change. As a community words are particularly important. Each organization foundation, we enjoy deep roots in community must be clear about its internal definitions of and proximity to on-the-ground, community-led terms such as “social justice,” “movements,” and CREATING CONDITIONS organizations. But as a philanthropic institution, we “community organizing.” Second, who is invited to must acknowledge that at times we further entrench be part of setting organizational culture? Shifting FOR ORGANIZATIONAL power imbalances that were born out of patriarchy culture typically requires an intentional, daily effort and white supremacy. Traditionally, foundations throughout every corner of the organization. All staff control resources and make decisions about which must be enlisted to communicate and reinforce new TRANSFORMATION community services, activities, and leaders are beliefs, values, norms, and habits. considered worthy of receiving supports. Therefore, Finally, change necessitates risk-taking – every new any foundation seeking to transition towards an initiative brings some level of uncertainty in outcome. activist orientation must prioritize staff discussions There is often concern that changes will jeopardize about philanthropy and the principles of social justice long-standing relationships with donors, grantees, activism early on in the transition process. At EBCF, staff, or other partners. Although transformation hen I joined the East Bay Community Foundation as its our new orientation has required us to change how W can be scary, EBCF has found that it also brings the we do business. Our commitment to justice has led opportunity for organizational and individual learning new President and Chief Executive Officer in 2014, I brought a us to re-assess and reorient our structures, practices, and growth. Humans learn best experientially, and policies on how we relate to community and our vision to respond more directly to community and movement by doing. Foundation leaders should encourage donors. At the same time, we have had to balance staff and board members to take risks and to be priorities while striving to make a long-term impact on racial our justice-focused aspirations with the practicality of comfortable with learning from failure. We have maintaining efficient decision-making structures and equity. Such a transition is certainly not easy. It entails working found that there is wisdom in piloting new work in the long-term sustainability of the foundation. to realign, transform, and create new structures and processes phases, to allow time and space for course correction As an organization moves towards aligning mission and iterative learning. to further solidify our role in achieving an inclusive, fair, and just and vision with social justice values, management Our path towards building a justice-focused identity must be prepared to assess the capacity of the East Bay. Although this work is ongoing at EBCF, we have learned has richly increased our knowledge and capacity as staff and board to make that shift. Those without a an institution. Several years into our organizational several lessons along the way that are worth sharing with other background in organizing or advocacy may initially realignment, we are proud to share visible examples experience a culture shock. They may struggle more of EBCF moving into a new vision: the launch of institutions seeking to embark on a similar transformation. with the transition than their colleagues who are ASCEND:BLO to support Black-led organizations, the more experienced in a systems-change orientation. establishment of the Early Childhood Progress Fund First, it is critical that a foundation’s staff and board reconcile with It is therefore crucial for management to identify to provide resources to policy-focused campaign training and support needs for the staff and board what will otherwise become an elephant in the room: that there is initiatives, and recent forays into mission-aligned at the beginning of the transformation process and investment and donor leadership. We are continuing an inherent contradiction between the history of philanthropy and to cultivate learning and skills development. In order to define what our future looks like as we celebrate to take ownership of organizational shifts, staff and social justice values. It requires embracing an organization-wide our successes, learn from our failures, and make board members must be well-equipped to help adjustments to ensure that we are continually transformation away from perpetuating the accumulation and drive change, regardless of their roles within the moving towards a just East Bay. foundation. preservation of wealth to furthering democratization of power and James W. Head We have also learned at EBCF that organizational President & Chief Executive Officer economic control to communities. culture is fundamentally important within the context East Bay Community Foundation of a transition. We have continually asked ourselves

19 A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT A JUST EAST BAY // TRANSFORMATIONAL CHANGE REPORT 20 THE EAST BAY COMMUNITY FOUNDATION www.ebcf.org

For Information, Contact: Sachi Yoshii Director of Strategic Initiatives and Special Projects

(510) 836-3223 [email protected]