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Criteria for Philanthropy at Its Best® Criteria for Philanthropy at Its Best® Benchmarks to Assess and Enhance Grantmaker Impact Copyright © 2009 National Committee for Responsive Philanthropy, Publishers, 2001 S Street NW, Suite 620, Washington, D.C. 20009. All rights reserved. The chapters and discussion questions in this publication (except portions of which reprint permission must be obtained from the primary sources) may be freely reproduced for educa- tional activities only. There is no requirement to obtain special permission for such uses. We do, however, ask that the follow- ing statement appear on all reproductions: Criteria for Philanthropy at Its Best: Benchmarks to Assess and Enhance Grantmaker Impact by Niki Jagpal. Copyright © 2009 by the National Committee for Responsive Philanthropy, Washington, D.C. This permission statement only applies to the reproduction of materials for educational purposes only. Systematic or large- scale reproduction or distribution (more than 25 copies per year) or inclusion of any item from this publication in other publications for sale may be done only with prior written per- mission from the publisher. Requests for permission should be addressed to the Communications Department, National Committee for Responsive Philanthropy, 2001 S Street NW, Suite 620, Washington, D.C. 20009, fax: (202) 332-5084, email: [email protected]. ISBN 978-0-615-27727-1 Criteria for Philanthropy at Its Best® Benchmarks to Assess and Enhance Grantmaker Impact Acknowledgements Over the past year, numerous people contributed Special thanks to the following for their to the development of this report. additional substantive assistance: Lori Bartczak, Rick Cohen, Kathleen Enright, Project Co-Directors: Aaron Dorfman Andrew Grant-Thomas, Robert Grimm, David and Niki Jagpal Harder, Nathan Henderson-James, Mark Kramer, Primary Author: Niki Jagpal Steven Lawrence, J. McCray, Larry McGill, Chuck Contributing Authors: Aaron Dorfman, McLean, Ron McKinley, Barry Knight, Spence john a. powell, Julia Craig and Lisa Ranghelli Limbocker, Marcy Murninghan, Terry Odendahl, Research Assistance: Julia Craig, Rob Reich, Mark Rosenman and Michael Seltzer. Matthew P. Maronick, Charles M. Fernández Primary Editor: Kristina C. Moore And also thanks to the more than sixty different grantmakers that provided unrestricted core oper- NCRP is especially grateful to the NCRP Board of ating support, which made this project possible. Directors, Research Advisory Committee and staff. A list of funders is available at www.ncrp.org. ABOUT THE AUTHOR Niki Jagpal joined NCRP in 2008 and has a broad range of experience working on research and policy advocacy in the nonprofit sector. Most recently, she was a member of the Research Department at Media Matters for America, a web-based progressive research and information center. Previously, Niki worked for several years at Ipas, an organization that works to enhance women’s reproductive rights and health. She helped expand the organization’s region-wide work in Asia and the United States. She has extensive experience organizing and mobilizing grassroots participation in local and national advocacy campaigns, and also has worked with local groups to increase bipartisan civic engagement and improve election protection. She has worked at the Center for Community Change, the Center for Juvenile Justice Reform at Georgetown University, and the Fannie Mae Foundation. She led workshops and given presentations at local and national universities to engage the next generation of nonprofit leaders. Niki holds a bachelor’s degree in history and cultural anthropology from Duke University and a mas- ter of public policy from Georgetown. Copyediting: “Editor-in-Chief” of Edit Avenue • Book Design and Layout: Dominic Vecchiollo Printing: VMW Printing Inc. Table of Contents Preface: Challenging Grantmakers to Strengthen Communities........................vii Criteria for Philanthropy at Its Best................................................................xii Chapter I: Values ..........................................................................................1 A. At a Glance..............................................................................................................................................2 B. Precedents and Rationales for Philanthropy that Benefits Marginalized Communities..............................4 C. Income and Wealth Inequality ................................................................................................................7 D. Racial Inequality and Structural Racialization........................................................................................10 E. Systems Thinking ....................................................................................................................................15 F. Advocacy, Organizing and Civic Engagement: Practical Strategies for a Systems Approach ....................17 G. Setting the Bar for Philanthropy at Its Best ............................................................................................23 H. Conclusion ............................................................................................................................................24 I. Discussion Questions..............................................................................................................................25 Chapter II: Effectiveness ..............................................................................31 A. At a Glance............................................................................................................................................32 B. General Operating Support ....................................................................................................................34 C. Multi-year Funding ................................................................................................................................38 D. Administrative Requirements ................................................................................................................40 E. Partnerships ............................................................................................................................................44 F. Setting the Bar for Philanthropy at Its Best ..............................................................................................47 G. Conclusion ............................................................................................................................................49 H. Discussion Questions ............................................................................................................................50 (Continued on p. vi) Criteria for Philanthropy at Its Best: Benchmarks to Assess and Enhance Grantmaker Impact v National Committee for Responsive Philanthropy Table of Contents (continued) Chapter III: Ethics ........................................................................................55 A. At a Glance............................................................................................................................................56 B. Board Composition ................................................................................................................................61 C. Trustee Compensation............................................................................................................................65 D. Policies and Practices that Support Ethical Behavior..............................................................................68 E. Transparency and Disclosing Information Freely ....................................................................................71 F. Conclusion: Setting the Bar for Philanthropy at Its Best ..........................................................................75 G. Discussion Questions ............................................................................................................................76 Chapter IV: Commitment..............................................................................81 A. At a Glance............................................................................................................................................82 B. Payout ....................................................................................................................................................84 C. Mission Investing ..................................................................................................................................90 D. Setting the Bar for Philanthropy at Its Best ............................................................................................96 E. Conclusion ............................................................................................................................................99 F. Discussion Questions ..........................................................................................................................100 Data Appendix ........................................................................................105 vi PREFACE Challenging Grantmakers to Strengthen Communities WHY THESE CRITERIA? WHY NOW? to those in greatest need. Private enterprise provides Our nation is at a critical moment. The economy is in jobs and the economic engine that fuels our nation. crisis, the private sector is in turmoil and the civic sec- Civic sector organizations—including both institu- tor already is feeling the negative spillover effects. tional grantmakers
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