Investing in Detroit: Philanthropy Report (1994 – 2001)

A Report to the Mayor-elect of Detroit

Prepared by the Detroit Report Task Force of City Connect Detroit December 2001 STOP PRESS! Shortly after the November, 2001 elections and as this report was being finalized, the City Connect Detroit board appointed its first president & CEO, Geneva J. Williams, and met with Mayor-elect Kwame Kilpatrick to share an executive summary of the report that follows. The Mayor-elect sup- ported the report's recommendations and the city's participation in collaborative ventures to secure greater national foundation and government resources. The endorsement and leadership by the new mayor significantly enhances the potential for greater human investment in Detroit, and brings us one step closer to this report's hopes for a better Detroit.

Letter From the Detroit Report Task Force of City Connect Detroit

December 2001

Dear Mayor-elect Kwame Kilpatrick,

Detroit faces tremendous opportunities and challenges in the years ahead. And we, representatives of the funding, nonprofit and governmental sectors, are convinced that Detroit has or can obtain the necessary resources – talent, energy and money – to address the major issues facing Detroit.

The issues our city must handle are too big for any one sector. We believe this report demonstrates that working together over the past years has helped Detroit create innovative and effective solutions and attract more dollars from foundations and the federal government. The lessons we’ve learned through partnership efforts also reinforces our belief that joint efforts, fostered by an improved collaborative envi- ronment, can produce results that matter, and that strong nonprofits and neighborhoods are extremely important to the quality of life.

Now more than ever, collaboration is critical because of the changing roles, relationships and interde- pendence between and among the public and private sectors. It is our belief that even greater human investment opportunities are possible if we build on the collaborative mood created by the current joint ventures among our three sectors.

We need your leadership and active support of our continued partnership efforts. We want to work together with you to secure greater investment in our city. The ultimate beneficiaries will be the people and neighborhoods of Detroit.

Respectfully yours,

C. Patrick Babcock (W. K. Kellogg Foundation) C. David Campbell (McGregor Fund) Robert S. Collier (Council of Michigan Foundations) Tina Dortch (Office of the Mayor, City of Detroit) David O. Egner (Hudson-Webber Foundation) David D. Fukuzawa (The Kresge Foundation) Halcyon Liew (The Skillman Foundation) David Smydra (Office of the Mayor, City of Detroit) Kari Schlachtenhaufen (The Skillman Foundation) Elizabeth C. Sullivan (The Kresge Foundation) Cynthia Tanner (Accounting Aid Society) Table of Contents

Introduction ...... 2

Executive Summary ...... 3

Trends in Philanthropy...... 4

Nonprofit Organizations: A Significant Economic and Social Force ...... 10

The City of Detroit, Nonprofit Organizations, and Funders ...... 13

Mobilizing Resources: Public-Private Partnerships ...... 14

Future Directions ...... 20

Appendices A. List of Survey Respondents...... 21 B. 1999 Grants in Detroit Totaling $300,000 or More...... 21 C. Samples of Partnerships and Philanthropic Initiatives, 1994-2001 ...... 22

Acknowledgements Sarai Brachman Shoup served as consultant to the Detroit Report Task Force in the research and preparation of the survey and report. The Task Force and City Connect Detroit thank Susan Howbert and Jeri Fischer at the Council of Michigan Foundations, Glenda Myhand, and Karen Middleton and Loretta Tatem at The Skillman Foundation for their assistance in the preparation of the survey and report.

1 Introduction

This document, Investing in Detroit: Philanthropy (2001) describes the extent to which public, inde- Report (1994-2001), prepared by the Detroit pendent, and private organizations have joined Report Task Force of City Connect Detroit (CCD), forces and already are effecting improvements. summarizes eight years of cross-sector partnership activities. Its chief purpose is to identify estab- City Connect Detroit is a new organization that lished programs and their effects and thus to out- resulted from nearly three years of planning, line interrelationships between private and politi- research, and discussion among a wide range of cal sectors which cooperated in problem-solving stakeholders. Its mission is to strategically solve ways to enhance Detroit. Moreover, this report problems through collaboratives of city depart- makes certain recommendations in the hope that ments, nonprofit organizations and local grant- Mayor-elect Kwame Kilpatrick and his office will makers and to secure increased federal, state and sustain and advance this partnership in philan- national foundation dollars for Detroit. It is stimu- thropy through increased teamwork and open lating meaningful dialogue among the three sec- communication. As the new city administration tors about strategies for bringing more resources takes office, the opportunity to build on a positive to our city. City Connect Detroit’s role is defined record presents itself. In fact, even this report below. builds on a predecessor whose history presents our starting place. • Foster mutual understanding, respect, and trust among City of Detroit government In January 1994, Detroit-area funders presented departments, nonprofits, and funders Investing in People: Grantmaking in Detroit, 1989- 1992 to then Mayor-elect Dennis Archer. The report • Build and empower collaborative initiatives, highlighted recent achievements of the Detroit-area especially cross-sector collaborations, philanthropic community and hoped to provide a designed to address strategic challenges foundation for strengthening the relationship between private funders and the City of Detroit. • Provide timely and relevant information to City agencies and nonprofits regarding funding The 1994 report helped open the door to a new opportunities from national grantmakers and era in Detroit philanthropy: the Grants significantly increase the amount of discre- Management Division in the Mayor’s office was tionary federal funding coming to southeastern created to facilitate public-private partnerships Michigan and to work with the philanthropic community to increase investment in Detroit. Thus, we had an • Increase and enhance the management skills avenue for moving ahead. and operational capacity of Detroit-area nonprofits With increasing frequency and ease over the past eight years, representatives from private funders, City Connect Detroit begins its partnership with the nonprofits, and the City have come to the table to new City leadership by presenting this report. We create, finance, and implement projects that also want to suggest ways to offer more to Detroit in address Detroit’s needs. Many of the resulting joint the coming years. By building on established public- ventures and independent private sector projects private partnerships we can advance our effective- are now transforming Detroit. The present report ness and achieve citywide improvement.

2 Executive Summary

A city’s greatness is measured not by its material Environment. This report provides descriptions of resources, but by the use it makes of them. and contact information for 28 such partnerships. —Tracy W. McGregor, Collaboration has proven a successful tool for mobi- founder, McGregor Fund, 1927 lizing resources and addressing important issues. Partnership is, however, a challenging process that Investing in Detroit: Philanthropy in Detroit, 1994- requires common vision, persistence, patience and 2001, a report prepared by the Detroit Report Task trust, along with commitments of energy and funds Force of CCD for the Mayor-elect Kilpatrick, from many stakeholders, including Detroit citizens. reviews the past eight-year trends in funding. It also introduces the new City Connect Detroit as a A new organization with a mission to link public and facilitator of public-private partnerships in the private partners to potential federal and other nation- shared goal of bringing more state, federal and al funding opportunities, City Connect Detroit looks national resources to Detroit. This section begins forward to helping funders, nonprofits, and the City with a summary of existing grants and initiatives. to establish and sustain effective partnerships.

In the Detroit metropolitan area there are 681 pri- City Connect Detroit seeks to establish an on-going vate foundations with a combined total of approxi- relationship with Mayor-elect Kilpatrick and the mately $6.6 billion in assets. From 1996-1999, over City for strategic problem solving and to bring in $312 million was invested in Detroit by local and new federal and state dollars for the process. In national foundations. This amount is more than working towards this goal, City Connect Detroit twice the investment made in the period 1989-1992. recommends that the Mayor: Moreover, the period from 1994 through 2001 was • Continue the City’s significant role in the characterized by very large individual donations to implementation of the major collaborative nonprofits. Prior to the mid-1990s, nonprofits could efforts described in this report. expect a few major individual gifts of $250,000; however, recent campaigns have generated numer- • Focus on developing new cross-sector collab- ous individual donations of $1 million, with at least orative efforts, patterned after projects like five gifts in the $5 to $20 million range. These Schools of the 21st Century and LISC, that funds and a change in the Mayor’s office made it involve nonprofits, the public sector and vari- possible for the philanthropic community to address ous elements of the private sector. more effectively particular City needs. • Involve the philanthropic sector in identifying strategic problem solving opportunities for During the 1994-2001 period, the City of Detroit, which resources are required from public/pri- private funding community, and nonprofit sector vate partnerships. worked together as never before on issues affect- ing the City. The establishment of a division in the • Join the Board of City Connect as a full board Mayor’s office that coordinated City-funder rela- member. tions and that also created new opportunities for • Appoint a senior executive as liaison to the alliances between nonprofits and funders generat- philanthropic community. ed a new collegial atmosphere and many effective new partnerships. Together, nonprofits, the City An organized, catalytic effort that targets attention and Detroit funders were able to devote more effi- to tapping more federal and national resources, cient attention to pursuing systemic solutions. such as City Connect will do, offers a tremendous resource capacity for Detroit. City Connect Detroit Such partnerships tackled longstanding challenges is confident that our recommendations to work in the areas of Education; Community and better as collaborators to develop and implement Economic Revitalization; Health; Children, Youth, strategies will create numerous human investment and Families; and Quality of Life, Culture, and opportunities for Detroit.

3 Trends in Philanthropy

Foundations have grown so rapidly since the Important Facts about Detroit Philanthropy mid-1990s that not even a volatile stock market and slowing economy could keep them from post- • A total of 681 independent and company- ing record growth in grant dollars. . . . Giving by sponsored foundations with approximately individuals and corporations is typically much $6.6 billion in combined assets operate in more sensitive to economic fluctuations. the Detroit metropolitan area. — Sara Engelhardt, president, Foundation Center, March 2001 • Approximately 121 foundations in the Detroit metropolitan area have assets of Foundations have a history of changing lives more than $3 million each. through the organizations and programs they sup- port. Education, public health, scientific research, the arts, social services, and the environment are a • Of the top 50 independent foundations in few of the many areas of activity for grantmakers. Michigan, with assets ranging from $22 mil- lion to over $6 billion each, 19 are located in Since 1969. the United States Tax Code has drawn the Detroit metropolitan area. a clear distinction between public charities and private foundations. Both may use the term “foun- • Of the top 50 foundations awarding grants dation” in their titles, but depending on their IRS in the Detroit metropolitan area in 1999, as classifications, they are treated very differently many as 34 were national foundations located under the tax laws. Foundations are regulated by outside Michigan and/or whose grantmaking Congress and the Internal Revenue Service. is national in focus.

Foundation Types (Source: Council of Michigan Foundations)

Independent/Private/Family Foundation: The primary function of the independent foundation is to make grants. The assets of the independent foundation are derived from the gift of an individual or family. Depending on its range of giving, the foundation may also be characterized as having general purpose or special purpose. An operating foundation primarily runs research, social welfare, or other programs determined by its governing body, and it makes few external grants.

Community Foundation: The funds of a community foundation are derived from many donors rather than a single source. Classified by the tax code as a public charity, this organization has the primary role to redistribute funds from the public-at-large. In contrast, private foundation grant- making is usually calculated from the earnings on assets.

Company-sponsored Foundation: This private foundation derives its funds from a profit-making company or corporation but is independently constituted. Its purpose is to make grants, usually on a broad basis but not without regard for the business interests of the corporation. The company- sponsored foundation should be distinguished from corporate giving programs which are adminis- tered within the corporation and may make grants for limited purposes closely associated with the interests of the corporation.

4 State and National Trends 2001, CCD mailed to 226 foundations a survey, similar to a survey sent to Detroit-area grantmakers In Michigan: in 1993. The mailing list included all Detroit-area foundations with assets over $3 million each, a • Foundations currently hold approximately group of foundations with smaller assets but identi- $22.1 billion in assets and make annual con- fied as significant contributors in Detroit, and tributions of over $1 billion. This amount is national foundations that have invested in Detroit. nearly double the assets held and contribu- tions made in 1993. Foundations were asked: 1) to identify their phil- anthropic objectives; 2) to list total giving and • Five of the top 100 foundations in the nation number of grants made in each of the years 1993- are located in Michigan: The W.K. Kellogg 2000; and 3) to describe three successful grants Foundation (Battle Creek), The Kresge made in the 1993-2000 period. The results of the Foundation (Troy), The Charles Stewart Mott CCD survey provide the most current snapshot Foundation (Flint), The Skillman Foundation available of philanthropic activities in Detroit, (Detroit), and The Herbert H. and Grace A. especially as viewed by some major Detroit grant- Dow Foundation (Midland). makers. (Respondents are listed in Appendix A.)

Previously, information regarding grants made to In the United States: Detroit in the two time periods 1989-1992 and 1996-1999 was gathered from The Foundation • In 2000, a year when the nation’s economy Center, a national service organization that main- was already in decline, U.S. foundations raised tains a database on grantmaking. The Foundation their contributions to nonprofit organizations Center data include grants of $10,000 or more a record $4.3 billion, up 18.4% from 1999 and made by the approximately 1000 largest founda- following five straight years of double-digit tions in the United States. increases in the value of foundation assets. The Foundation Center has, since 1956, been the • In 2000, community foundations experienced nation’s leading authority on institutional philan- the fastest growth in giving, followed closely thropy. It has, through the years, built up a mas- by independent foundations, but corporate sive database on philanthropy in the United foundation giving slowed. States. And the data it collects, collates and dis- seminates is recognized as reliable information • The American Association of Fundraising about the business of philanthropy. Counsel and the Center on Philanthropy report greater growth in charitable giving in The two sets of data provided in this report com- years after crises than in the years before, in plement each other. The CCD survey compiled nine of the 13 events researched. This is detailed information on collaborative funding – an important to non-profit organizations as well item often difficult to identify in the annual report as community foundations as both raise a sub- returns of most foundations. stantial part of their revenue from individuals. The Foundation Center data, on the other hand, provided a broad view of the funding breakdown by philanthropic objectives. Trends in Detroit Philanthropic Objectives Survey of Detroit-Area Grantmakers and Foundation Center Data In designing this year’s survey format distributed by CCD, the breakdown of program funding by Information on grants to Detroit was gathered by philanthropic objectives or programs was similar City Connect Detroit (CCD) and by The to the areas identified by The Foundation Center. Foundation Center. More recently, in September

5 Based on the returns of the survey, a compilation although the comparative data do not indicate of program funding by philanthropic interests was that any of these was ever a high priority of foun- tabled. The following provides the total number of dations. responses for each category of funding. The CCD data from the 2001 survey confirm that Detroit philanthropy has changed significantly Breakdown of Program Funding over the past eight years in terms of increasing by Philanthropic Objective collaborative efforts. Partnering across sectors to create solutions to long-range systemic issues, Philanthropic Objective # of responses Detroit funders have exercised leadership in sever- al target areas. Undoubtedly, much of this progress Children and Youth 19 was due to an atmosphere that fostered collabora- Health 17 tion and increased attention and investment. In an Education 16 environment in which funders were confident that their grantmaking was helping to change entire Arts, Culture and the Humanities 15 systems, money flowed to big, bold endeavors. as Community Improvement/Development 13 Housing and Shelter 12 Total Grantmaking in Detroit on Philanthropy and Voluntarism 8 Data from The Foundation Center provided a Civil Rights and Social Action 6 complementary overview of the total funding in The Environment 6 Detroit over two specific periods of time: 1989 – ti- 1992 and 1996 - 1999. It also provided a compari- ni- Public Affairs 4 son with the trend of non-Michigan foundations m Science and Technology 4 investing in Detroit. Social Science 2 Religion 2 The following charts illustrate the change in quantity of grants and amount of awards from the e Source: CCD Survey September 2001 period 1989-1992 to 1996-1999. Comparisons show large overall increases of more than 200% in rs, In comparison with responses to the survey con- both grant numbers and amounts between the two bo- ducted in 1993, it appears that the objectives have periods and an average upward trend over the not changed dramatically. The top five objectives entire ten-year period. Both charts also show the e in the 2001 list also headed the list in 1993. vast majority of grants made to Detroit continues However, the top item on the list eight years ago to be from Michigan-based foundations, a number was Education and not Children and Youth as it of which are national foundations based in has appeared in the 2001 survey. Michigan. One of these, The Kresge Foundation, has made a specific commitment to Detroit A comparison of Foundation Center data for the through its Detroit Initiative, resulting in almost periods 1989-1992 and 1996-1999 indicates that $82 million in grants since 1994. the most remarkable increase in focus was in the area of Human Services (including Housing), with Tapping more funds from national foundations grant awards increasing over 2000% between the not based in Michigan should be a focus in com- two time periods. Increases of grant numbers and ing years. City Connect Detroit will help Detroit amounts by 300-400% were evident in almost realize its potential in this area by disseminating every category so that lower percentage increases federal government and national foundation grant and decreases stand out in the areas of opportunities to Detroit nonprofits, City depart- Environment/Conservation (increased only ments, and local funders and by preparing collab- 123%), Crime (decreased 55%), and Employment orative grant proposals in response to national and Economic Development (decreased 25%), funding opportunities.

6 Grants in the City of Detroit 1989-1992 Grants in the City of Detroit 1996-1999 # of # of Grants Total Award Grants Total Award 1989 All Foundations 447 $31,956,290 1996 All Foundations 670 $77,241,915 Michigan Foundations 347 $28,746,873 Michigan Foundations 583 $69,631,180 1990 All Foundations 441 $34,784,202 1997 All Foundations 641 $68,108,232 Michigan Foundations 372 $28,242,192 Michigan Foundations 532 $58,377,012 1991 All Foundations 360 $38,072,457 1998 All Foundations 583 $64,409,487 Michigan Foundations 324 $34,841,847 Michigan Foundations 469 $56,035,781 1992 All Foundations 174 $31,496,829 1999 All Foundations 757 $102,923,615 Michigan Foundations 157 $29,776,006 Michigan Foundations 643 $93,471,572 Total All Foundations 1440 $136,309,778 Total All Foundations 2651 $312,683,249 Michigan Foundations 1200 $121,606,918 Michigan Foundations 2227 $277,515,545

Total AmountTotal Amountof Grants of Grants in the in theCity City of of Detroit Detroit by by All All Foundations Foundations Each Year Each Year

120 100 80 60

Millions 40 20 0 1989 1990 1991 1992 1996 1997 1998 1999

Number Numberof Grants of Grants Made Made in the in the City City ofof DetroitDetroit by byAll AllFoundations Foundations Each Year Each Year

800 700 600 500 400 300 200 100 0 1989 1990 1991 1992 1996 1997 1998 1999

Source: The Foundation Center.

7 New Sources of Philanthropic Support which provides partial tuition scholarships to help low-income children from Detroit families attend a New and Growing Foundations select group of private elementary and middle schools; the Warren Connor Development • In the Detroit metropolitan area, the growth Coalition which trains welfare recipients in cus- rate since 1993 for new foundations with tomer service skills; and Gleaners Community assets of more than $3 million nears 300%. Food Bank of Greater Detroit serving the hungry in Southeast Michigan region. • In Michigan over the past two years, approxi- mately 200 new foundations, most of them family foundations, have been created. The Carls Foundation

The Carls Foundation was established in 1961 by Detroit Youth Foundation William Carls, the founder of the industrial air valve company, Numatics, and his wife Marie. As In 1987, W. K. Kellogg Foundation established the of 2001 the Carls Foundation is one of the top 20 Kellogg Youth Initiatives Program (KYIP), a 20- independent Michigan foundations by asset size. year commitment to improve the quality of life for The foundation’s annual grantmaking has grown youth in three targeted Michigan areas. One of the 400 percent over the past five years, from $1.25 three was the Northern High School area in million in 1995 to over $5 million in 2001. Its Detroit. In August 1999, the Kellogg Foundation principal grantmaking has been in the areas of endowed the Detroit Youth Foundation (DYF) children’s welfare and preservation of natural with a $20 million grant. DYF continues to pro- areas, open space, and historic buildings. It has vide support to projects originally funded by the placed particular emphasis on recreational, educa- KYIP in the Northern High School area and also tional, and welfare programs for disadvantaged provides technical assistance and networking children and on the prevention and treatment of opportunities to the organizations it funds. hearing impairment. The foundation has given Among other projects, DYF has supported Kids significantly to the Children’s Hospital of and Youth Development Seminars (KYDS), pro- Michigan in the Detroit Medical Center (DMC) grams that provide adults and teens with leader- and was a major participant recently in Detroit ship skills and strategies for positive youth devel- 300 and the capital or renovation campaigns of opment, and Family Place, an early childhood the Detroit Science Center, Detroit Institute for development center providing comprehensive Children, and Alternatives for Girls. one-stop shop of services for children.

Growth in Gifts from Individuals Thompson-McCully Foundation • The assets of the Community Foundation for The Thompson-McCully Foundation was formed Southeastern Michigan have grown more than in 1999 by Robert and Ellen Thompson with a fourfold over the past eight years and in 2000 portion of the proceeds from the sale of the stood at approximately $309 million. Thompson-McCully Company, Michigan’s largest asphalt paving company. The foundation intends • Across the country, donations to the top 400 to distribute all of its approximate $100 million in charities rose 13 % from 1999 to 2000, the assets over the next ten to fifteen years and then same rate of increase reported the previous year. cease operations. Its overall mission is to help low- income people rise out of poverty, and it makes The past eight years were characterized by large grants in the Detroit metropolitan area to expand individual donations to the Community educational opportunities, promote economic self- Foundation for Southeastern Michigan and capi- sufficiency, and relieve human suffering. Among tal, endowment, and annual giving campaigns of the initiatives funded by the Thompson-McCully private nonprofit organizations. In many cases, Foundation are an Education Assistance Program leadership from the current administration played

8 a key role in generating the new mood of civic these organizations and the community about the leadership, encouraging nonprofits to conduct importance of building fiscal independence and ambitious campaigns and influencing donors to permanent program support through raising commit to Detroit’s nonprofits. The results can be endowment. Grants totaling $18.3 million from seen, literally, in the landscape of Detroit and also the Kresge Foundation leveraged almost $50 mil- in the resources and vibrancy of nonprofits. lion in new endowment funds raised by the 38 participating nonprofits that identified endow- An annual increase from 1995 to 1999 in the rate ment goals between $100,000 and $3 million. at which individuals made contributions to the Community Foundation for Southeastern Individuals also contributed much more generous- Michigan provides evidence of the growing indi- ly to the annual and capital campaigns of nonprof- vidual philanthropy. For example, in 1995-1996, its in the latter part of the 1990s. Previously, non- assets grew $33 million (from $116 to $149 mil- profits could expect a few major individual gifts of lion), and in 1998-1999, assets grew $68 million approximately $250,000 each. Recent campaigns, (from $232 to $300 million). This growth trans- including those of Karmanos Cancer Institute, lated into increased grantmaking by the Detroit Art Institute, Detroit Zoological Society, Community Foundation and its support organiza- Campus Martius, Detroit Symphony Orchestra, tions: In 1994, it gave away $7.5 million, and by and Focus: Hope, have generated numerous indi- 2000, it was giving two and a half times that, vidual donations of $1 million or more and five close to $21 million in grants. gifts in the $5 to $20 million range.

Joining forces to address the historic undercapital- While the growth of the economy and stock mar- ization of nonprofit organizations in Southeast ket performance help to explain this trend, the Michigan, the Community Foundation for sheer number of individual investors and number Southeastern Michigan and the Kresge Foundation of different nonprofits that have benefited from created strong incentive for individuals and founda- the new generosity likely demonstrates increased tions to contribute to nonprofits’ endowment funds donor confidence in nonprofits. Another impor- through the Van Dusen Challenge. Initiated in 1991 tant upshot of this trend is the precedent that has and funded by $18.3 million from the Kresge been set for large individual donations to high- Foundation, the effort educated the leadership of performing Detroit nonprofits.

9 Nonprofit Organizations: A Significant Economic and Social Force

In addition to providing jobs and income, Michigan’s • Contributions from individuals, corporations, nonprofit sector plays a critical role in the overall and foundations account for 29% of the rev- health and vitality of the economy. The sector makes a enue of Michigan nonprofits; government major contribution to the quality of life in Michigan grants/contracts account for another 13%. and covers a broad range of activities, including educa- tion, health, recreation, social welfare, the environment, • In Detroit in 1999, more than 62% of the citi- arts and culture, housing, crime, and family services. zens contributed to a charity, 43.5% volun- — Robert J. Kleine, teered, and in a 2000 poll, 95.8% were satis- Public Sector Consultants, Inc., fied that their donations are being used Lansing, Michigan, May, 1999 appropriately. • In 2001, of those polled, 91% of Detroit resi- Nonprofit organizations, Detroit’s “charities,” are the dents said that nonprofits play an important service providers – those organizations that special- role in the Metro community. ize in services the private sector or government can- not or will not provide. As venture capitalists and stock investors are to the private sector, foundations What are Nonprofits? and other donors are to the nonprofit community. Tax-exempt nonprofits include those designat- Nonprofit organizations enable foundations and ed under IRS Code 501(c). A 501(c)3 organi- other donors, including local governments, to zation is either a public charity or a private achieve their missions through implementation of foundation. The term, nonprofits, typically many programs and projects. The relationship refers to 501(c)3 charitable, religious, or edu- between the philanthropic community, government, cational publicly-supported organizations, to business and nonprofits is not only synergistic, it is which donations are tax deductible. The symbiotic: none would do well without the others. 501(c) tax code also includes 501(c)4 social Nonprofits give arms, legs, heart, and soul to phil- welfare groups; 501(c)5 unions; 501(c)6 busi- anthropic and governmental dollars, bringing to life ness leagues (e.g. chambers of commerce); the generous and creative spirit behind them. 501(c)7 athletic and hobby clubs/groups; and 26 additional subsections.

Important Facts about About 80 to 90 percent of tax-exempt Detroit’s Nonprofit Organizations organizations are 501(c)3 public charities and must receive more than one-third of • 38,000 nonprofits exist in Michigan, 43% of total support from gifts, grants, and contri- which are in Southeast Michigan, and 31% of butions from the general public. Individuals which are in Wayne County alone. cannot “own” a nonprofit. • More than 2500 charitable nonprofit organiza- Charitable nonprofits provide services that tions with annual budgets of more than $25,000 could only otherwise be provided by govern- are located in and/or serve Detroit and the tri- ment through significantly increased taxes. county area of Wayne, Oakland and Macomb. • Michigan nonprofits have budgets exceeding Nonprofits strengthen neighborhoods and $60 billion, expend 95% of those dollars provide support networks for the people who within the State, and provide 380,000 jobs. live and work in Detroit, and include educa- tional institutions, faith-based organizations, • Operating revenues of more than $1.3 billion food banks, job training programs, health and were controlled by 25 of metro Detroit’s human services organizations (including hos- largest nonprofits in the year 2000 according pitals, Red Cross, Salvation Army, etc., etc), to Crain’s Detroit Business Book of Lists 2000. neighborhood revitalization organizations, cul- tural institutions, and many more.

10 Some Detroit Nonprofit Organizations Neighborhood Reconciliation Center resolves dis- putes through facilitated mediation. Areas in which Detroit’s nonprofits range from the giants – the hos- it serves include disputes regarding property dam- pitals and universities, the Boy Scouts, Karmanos age and neighborhood issues, business and contract Cancer Institute, Focus:HOPE, Lutheran Social disputes, landlord/tenant disputes, problems with Services, American Red Cross, Salvation Army, purchases or repairs, and ADA claims; it also offers YMCA, Detroit Institute of Arts – to the small and conflict resolution workshops and litigation pre- struggling grass roots organizations that endeavor vention training for businesses and government. to make their neighborhoods better. Detroit’s spirit- ed citizens do not hesitate to look for new ways to Latin-Americans for Social and Economic tackle issues. Some of our biggest problems have Development (LASED) assists the Hispanic com- been met head-on by nonprofits created by our citi- munity of Southwest Detroit by providing educa- zens. Here’s a small sample of the work of Detroit’s tional programs, job training, translation and legal nonprofit organizations: services, information and referrals, assistance with immigration, nutrition information, employment, Detroit Urban League, Inc. assists African- and more. Americans and other people of color in reaching their fullest potential on par with all other Accounting Aid Society helps stimulate Detroit’s Americans. It has a budget of $5.4 million dollars, economy by returning millions of federal and state more than 60 full-time employees, and has eight dollars (an average of $850 per household to office locations in Detroit. thousands of families) annually through its Tax Assistance Program (TAP), one of the four largest Think Detroit is committed to helping children low-income TAPs in the nation. More than 500 develop the character necessary for a positive TAP volunteers representing 100 companies and future. Children and parents in underserved organizations provide over 6,000 hours of service, neighborhoods of Detroit are connected through an estimated value of $500,000. Accounting Aid’s activities involving youth athletic leagues and Nonprofit Services program provides direct busi- computer training. ness coaching and advice to over 2,000 people in nonprofits, with its AnswerLine (also online at Covenant House of Michigan annually helps 7500 www.MichiganNonprofit.com) and provides class- homeless and at-risk youth, by providing food, room training to 150 nonprofits, which in turn clothing, shelter, job placement and educational serve more than 750,000 people throughout the services, life skills training, parenting skills, and community. the Street Outreach Program. There are 10-12 additional Detroit nonprofits (and Bethany Presbyterian Manor is a Detroit site of more in surrounding communities and regions) Presbyterian Villages of Michigan (PVM), a faith- that provide some form of management support based nonprofit that has served seniors of all and/or educational service to other nonprofits, faiths since 1945. PVM operates continuing care including Community Legal Resources, New retirement communities, subsidized senior hous- Detroit, United Way Community Services, ing, and market rate senior housing, and it spon- Neighborhood Service Organization, Youth Sports sors community outreach and health ministry pro- and Recreation Commission. Various partnerships grams, including parish nursing. between some of these providers are emerging.

The Greening of Detroit was established in 1989 These and many more nonprofits contribute to to guide and inspire Detroit’s reforestation through improve Detroit. In Chapter VI, “Mobilizing tree planting projects and environmental educa- Resources” (page 14) a number of additional non- tion. Its goals are to make the City a clean, green profits are described as partners in some large, model of urban renewal through environmental recently created collaborative initiatives. action and to inspire residents to embrace envi- ronmentally sound decisions, beginning in their own homes and neighborhoods.

11 Trends Challenges

• According to a recent survey of 206 nonprof- Michigan Nonprofit Association identifies these its by the Michigan Nonprofit Association, challenges as currently confronting Detroit 11% have already cut staff and curtailed pro- nonprofits. grams because of decreasing donations, and another 20% may cut staff if declining trends • inadequate funding to sustain programs and continue. Nearly half of those surveyed organizations and to recruit and compensate expect funding to decrease in the next 6 qualified staff months, and 62% have already seen decreases from individuals, corporate donations, and • continue to develop strong and effective government grants/contracts. boards of directors and volunteer leadership

• The declining economy, worsened by the • increased demands from the funders, media tragedies of September 11th, and anxiety and public to spend resources to demonstrate about the future are already affecting our non- outcomes and document accountability profits locally. According to recent polls by Independent Sector, half of those U.S. citizens • need to upgrade organizational technology polled said they will reduce charitable giving and employees trained to use it effectively in the next 6 months if the economic slow- down continues or worsens. Detroiters and Metro-area businesses and founda- tions have generously given time and money to • More mergers and other types of collaborative support of local nonprofit organizations. Now, relationships among nonprofits are expected. more than ever, government, nonprofits and fun- For the non-profit sector, this trend poses ders, all serving the same constituencies, need to challenges to nonprofits used to functioning deepen and broaden partnerships with each other. on its own.

• Demand for services provided by nonprofits already exceeds supply, and demand will increase in a worsening economy.

Nonprofit organizations have long had a special role to play in keep- ing American democracy vibrant and responsive. Most of the major social movements of the past century have taken shape within this sector, and this set of institutions has been a seedbed as well for major policy changes. It is therefore essential that we keep this vital function of nonprofit organizations at the forefront of our concern and take steps to ensure its survival and growth. — Nonprofit Sector Strategy Group, The Aspen Institute, Fall 2001

12 The Relationship Between the City of Detroit, Nonprofit Organizations, and Funders

The foundation world continues to change, and the Detroit Pistons, Bill Davidson; establishment of recently in Detroit collaborations between foun- the Youth, Sports and Recreation Commission by dations and the City have evolved. These collab- The Skillman Foundation; and the Detroit orations have proven effective in advancing the Community Development Funders’ Collaborative) grantmaking goals of foundations and the civic set new standards for partnering that convinced the goals of the city. Mayor and the funding community that such activ- — Leonard Smith, ities should directly involve the Mayor’s office. former president and CEO, The Skillman Foundation, September 2001 Grants Management Division Aims, Outcomes, and Keys to Success During the past eight years, the Grant Management Division (GMD) of the Mayor’s office The GMD was established in 1994 in order to help played a critical role in the cultivation of the City- build a stronger relationship between City govern- funder relationship. Foundations and the City ment, specifically the Mayor’s office, and local phi- established many strategic partnerships during the lanthropy and also to create new partnership 1990s, a result of direct support of and also the opportunities for funders and nonprofits. Initial cooperative tone set by the GMD. funding for the office was provided by the City of Detroit, the Hudson-Webber Foundation, The Persuaded by the success of the GMD, City Connect Skillman Foundation, The Kresge Foundation, the Detroit believes that Detroit will benefit greatly from McGregor Fund and the Community Foundation continuing open communication between the pri- for Southeastern Michigan. By 1997, the GMD was vate funding community and the City’s executive a three-person office funded entirely by the City. and legislative branches and from continuing to strengthen official mechanisms within the Mayor’s Specific aims of the GMD were to 1) provide a office that coordinate and enhance the relationship formal link between funders and the Mayor; 2) between the City and private funders. address systemic issues through public-private partnerships; 3) help correct the prevailing notion that foundations could contribute money but Background on the nothing else; and 4) address duplication of efforts, Relationship Between Sectors a need for bridge funding, grant compliance prob- lems, and underinvestment in non-profits. Prior to 1994, contact between the private funding The GMD has played a significant role in securing community and City Administration or depart- approximately $393 million in joint philanthropic ments was limited, and collaboration on projects public investment to support the activities of was rare. The Detroit funding community, taking City agencies and local nonprofits. The Greater precedent from strong public-private sector rela- Downtown Partnership, Re-Capitalization of tionships that were developing in other major U.S. Recreation Centers Project, the Funders’ cities, increasingly wanted to play a greater role in Collaborative, Schools of the 21st Century, and the development of civic infrastructure. At the Family Place are all projects in which the GMD same time, the Mayor recognized the potential of had a hand. working with the private funding community to achieve mutual goals and to advance important The accomplishments of the GMD were also linked projects that were beyond the City’s immediate abil- closely to the strong bond between the Mayor and ities to finance or implement. Early collaborative key mayoral aides in the GMD and to the familiari- efforts (including the PARK Program spearheaded ty the GMD staff had with the funding world and by the Mayor and local businessman and owner of with foundations and individual philanthropists.

13 Mobilizing Resources: Public-Private Partnerships

While we are very encouraged by the strong Education coalition, energy and determination of many Detroiters to provide more opportunities for our Schools of the 21st Century children, there is still a lot of work to do. The Comer Schools and Families Initiative issues and problems facing today’s youth need the attention of every single responsible adult in our Schools of the 21st Century is a $60 million, ten- community. year collaborative effort initiated in 1997 to bring — William J. Beckham, about bold change in the Detroit public school sys- former president, tem. One of the largest funding initiatives in The Skillman Foundation and Detroit, it is financed by a $20 million challenge former president, New Detroit, Inc., grant from the Annenberg Foundation, by $20 mil- Spring 2000 lion in public matching funds, and an additional $20 million in private sector matching funds. On October 31, 2001, the project met the Annenberg The theme that runs through philanthropy of the matching challenge by securing funds from eleven middle and late 1990s is a new attention to pursu- Michigan-based foundations, with the largest gifts ing systemic solutions to Detroit’s needs. Detroit from The Skillman Foundation, The Kresge grantmakers, the City, and nonprofits have lever- Foundation and W. K. Kellogg Foundation, and fif- aged dollars and energies, mobilizing resources to teen private corporate sponsors as well as Detroit make substantial changes in key areas. Renaissance. An independent nonprofit organiza- Collaborating to address the needs of Detroit has tion, Schools of the 21st Century is an example of evolved from the exception to the rule. a close working partnership between government, local and national philanthropy, and business. This section provides brief descriptions of some of the public-private partnerships launched over the Comer Schools and Families Initiative began in past eight years and lists a few of the lessons 1994 when The Skillman Foundation brought the learned from the experience of collaboration. national whole-school reform model of the School Development Program created by Dr. James Viewed together with the longer list in Appendix Comer, to Detroit by partnering with the Detroit B, the number of collaborations, breadth of issues Public Schools, Eastern Michigan University, and covered, and magnitude of the investments attest Yale University. Through additional infusions of to the effectiveness of cross-sector relationships. federal funds and funds from the Schools of the Appendix C provides a list of the foundations 21st Century program, 38 schools in Detroit are which awarded grants in Detroit totaling $300,000 now using the Comer model. Approximately $18 or more in 1999, illustrating the extent of invest- million from The Skillman Foundation over the ment in Detroit by major local and national foun- past eight years has leveraged significant direct and dations, much of which has leveraged funding in kind contributions from Detroit Public Schools. from the City, State, and federal government as well as from individual donors. Art-Centered Education (ACE) The efforts described here are mostly work in In 1996 Marshall Fields introduced ACE to the progress with some reporting early accomplish- Detroit Public Schools. Funded in part by Wayne ments. Continuing to reflect together on and take State University and a group of private corporate appropriate action in response to lessons learned and independent foundations, ACE is a $3 million, will enable these projects and others like them to six-year school-enhancement initiative which uses achieve the far-reaching effects envisioned by all the arts to create innovative approaches to teach- those who have invested in them. ing the core subjects of English, math, history, and science. Its first phase concludes in June 2002, and the initiative is now planning its next phase.

14 Community and Economic Revitalization riot. Through the years, Focus: HOPE developed numerous programs in its fight to end injustice, Detroit Local Initiatives Support Corporation racism, and poverty. Its programs provide food (Detroit LISC) monthly to 43,000 seniors, mothers, and children; career training programs in machining, engineer- Detroit Community Development Funders’ ing and information technology; Montessori-based Collaborative childcare; business conference facilities; commu- nity arts projects; and other outreach initiatives. A local affiliate of a highly successful national pro- In 2001, 25% of revenue came from public gram, Detroit LISC has since 1990 provided grants, sources, including federal grants; and 22% from loans, and equity investments to community private sector contributors, including individuals, organizations for neighborhood redevelopment. foundations and corporations. Focus:HOPE proj- The partnership consists of 10 foundations and 15 ects similar ratios for 2002. corporations as well as the City of Detroit and the State of Michigan. In coordination with the Detroit Community Development Funders’ Collaboration, Partnership for Economic Independence (PEI) Detroit LISC will launch a new, three-year initia- tive in November 2001, investing more than $26 A project of the Warren/Connor Development million — $14.25 million from the private sector, Coalition, PEI was first piloted in 1993 as a $8 million from National LISC and approximately response to the chronic joblessness plaguing $4.5 million from the City of Detroit — to finance Detroit residents. Since 1993, PEI has received the development of 1200 housing units; augment grants totaling $3.8 million from the public sector the capacity of high-performing community organ- and $2.9 million from nine local and national izations; help the City’s real estate department foundations. An initial $1 million, provided by the accelerate development of City-held property and Ford Foundation, the Hudson-Webber reduce City inventory by at least 80%; and revital- Foundation, and The Skillman Foundation, led, in ize five neighborhood commercial strips. 1996, to a $2.6 million, four-and-a-half year Federal Government award that turned PEI into The Funders’ Collaborative, a program under Detroit’s Community Self-Sufficiency Center for Detroit LISC, was established in 1994 as a five- the City’s eastern Empowerment Zone with the year $11.5 million effort to improve the stability responsibility for providing case management and and effectiveness of community development employment services to 200 unemployed or organizations. The Collaborative, developed and underemployed residents per year. supported by more than a dozen local funders, has provided funding to 16 nonprofits for operating In 2000, PEI gained funding from the Hudson- support, technical assistance, pre-development Webber Foundation, McGregor Fund, and expenses, and community organizing. Technical Thompson-McCully Foundation to support the assistance has also been offered. The Collaborative BRIDGE Initiative, a collaboration between PEI, is currently raising funds for its part of the new Eastside Industrial Council, Wayne County Detroit LISC-Funders’ Collaborative effort which Community College, and Wayne State University will grant $7.1 million over three years to 13 to prepare residents for careers in the manufactur- high-performing community organizations. ing industry. SBC/Ameritech has also been a sig- nificant supporter of PEI’s programs.

Focus: HOPE As of December 2001, PEI has worked with 1,300 families and maintains a 65% placement rate. PEI Detroit’s Focus: HOPE is a nationally recognized offers comprehensive case management, skills civil and human rights organization. It began in training programs, career planning and develop- 1968 after the city’s devastating 1967 riots. With an ment, peer support activities, and recruitment and interracial band of volunteers, Executive Director outreach services for employers. In addition to the Eleanor Josaitis and the late Father William BRIDGE Initiative, PEI has forged relationships Cunningham worked to bring the black and white with local schools, higher education, government, communities together in order to prevent another labor unions and employers.

15 Health School-Based Health Initiatives Established in 1995, the School-Based Health Healthy Detroit Initiative was launched by the Henry Ford Health Healthy Detroit is an initiative of the Greater System to develop 13 new school-based health Detroit Area Health Council, a private nonprofit centers in Detroit Public Schools. As a result of coalition that has served as a catalyst for health ini- that effort and those of other health systems in the tiatives in Detroit for over 50 years. The Mayor of area, there are currently 22 health clinics and 24 Detroit serves as the Honorary Chair of Healthy mental health programs providing nearly $4.5 mil- Detroit and commits City resources to help imple- lion in health and mental health services in Detroit ment its programs. Initiated seven years ago, Public Schools. All major health providers in Healthy Detroit, through its 55 local stakeholders, Detroit, including Henry Ford Health System, The assists Detroit organizations and residents in the Detroit Medical Center, St. John Health System, effort to improve residents’ health. Healthy Detroit William Beaumont Hospital, the Detroit Health convenes coalitions charged with responding to Department, Detroit-Wayne County Community identified health indicators; serves as a resource for Mental Health Agency, and Communities in the community on health data and information; Schools, joined together to provide services for and supports awards for significant contributions to specific sites. The School-Based Health Initiative improving the health of Detroit residents. Healthy was first funded by W. K. Kellogg Foundation, The Detroit has spawned the development of a number Kresge Foundation, the McGregor Fund, The of independent initiatives, including Detroit Safe Skillman Foundation, the Community Foundation Streets Network (see below), Green Zone, and for Southeastern Michigan, Blue Cross Blue Shield Health Transportation Collaborative. Healthy of Michigan Foundation, and HUD. The initial Detroit projects receive City, County, State and foundation funding has been expended, and partic- Federal funding and also partner with local and ipating health systems are now supporting their national private funders, including Metro Health centers, contributing a total of approximately $5.4 Foundation and The Jewish Fund among others. million to this initiative. On November 6, 2001, Governor John Engler eliminated State Health Department funding for four participating clinics; Voices of Detroit Initiative (VODI) as a result, the future of these clinics is uncertain. VODI was initiated in 1998 by W. K. Kellogg Foundation as one of its thirteen Community Families, Youth, and Children Voices programs working across the United States to improve access to healthcare for the uninsured. It represents a broad partnership involving the City Youth Sports and Recreation Commission of Detroit’s Health Department, Henry Ford Health Partnership to Adopt and Revitalize Parks System, St. John Health System, The Detroit for Kids (PARK Program) Medical Center, Detroit Community Health Re-Capitalization of Recreation Centers Project Connections, Community Health and Social (Re-Cap) Services (CHASS), and Detroit Healthcare for the Homeless, Inc. W. K. Kellogg Foundation’s contri- As a direct link between the philanthropic com- bution of approximately $1 million per year is munity and the City Parks Department, the Youth divided between VODI and its partners. An addi- Sports and Recreation Commission provides a tional grant of $325,000 from Ascension Health, mechanism for private sector involvement in St. John Health System’s parent corporation, lever- improvement and maintenance of the City recre- aged a $608,000 grant from federal government’s ation system and programs. The Commission Healthy Community Access Program in 2001. The manages the PARK Program and the Re-Cap proj- City of Detroit has provided in-kind support pri- ect. It also coordinates a variety of activities and marily through lab and pharmaceutical services. services to support youth programs and organized sports, including conducting citywide tournaments

16 for soccer and baseball; funding and coordinating The Youth Connection, under the auspices of the Work Alternatives for Youth, a summer youth Greater Detroit Health Council is working to employment program; and developing and distribut- impact environmental changes so that there are ing a directory of spring/summer youth programs. unprecedented levels of participation in programs during non-school hours. Three primary strategies, Re-Cap is a partnership between the philanthropic all public-private partnerships, are being imple- community, the Detroit Recreation Department, mented to achieve this goal: 1) the establishment of and the Youth Sports and Recreation Commission an infrastructure in Detroit (The After School whose purpose is to renovate four recreation cen- Network) that will be capable of coordinating ters and address needs and issues that impact the resource development, training, evaluation, and delivery of services, including the role of commu- technical assistance for after-school program nity stakeholders. Initiated in 1996, a total of $9.8 providers; 2) a project to strategically secure the fis- million in funding from foundations and corpora- cal and policy support necessary to expand oppor- tions has leveraged $6.5 million from the City of tunities from private, city, county, state, and federal Detroit. Re-Cap has finished construction on sources; and 3) a comprehensive communications Considine, Lipke, and Northwest Activities cen- and marketing campaign to garner public support. ters, and work on Hawthorne Park will be com- pleted in Spring 2002. The Youth Connection has partnered Communities in Schools and the Youth Sports and Recreation The PARK Program began in 1994 as a partner- Commission to expand after-school programming. ship between the City and the Pistons Palace It has also partnered to develop and implement Foundation and is now a much broader public- Detroit Safe Streets Network (see below). private endeavor run by the Youth Sports and Recreation Commission. Private sector contribu- tions totaling $12.7 million have in many cases enabled the City to begin slated renovations and Quality of Life, Culture, and Environment to enhance existing barebones project plans. The program targeted 33 Detroit parks through new Detroit Safe Streets Network construction and programming, creation of a maintenance endowment fund, and formation of The Detroit Safe Streets Network is an effort to community advisory committees. It is currently ensure the physical safety of children and youth as working with additional parks through a partner- they travel to and from school, including after ship with the Recreation Department’s Adopt-A- school programs. Through a partnership between Park Program. The Youth Connection, Detroit Public Schools, the City of Detroit, Detroit Police Department, and the National Conference for Community and The Youth Connection Justice, volunteers, utility companies, businesses, and schools have been mobilized to watch and Established in 1996, The Youth Connection is a support children and youth through education campaign to improve the health and safety of and patrols and by providing safe havens during youth in Detroit, Pontiac, and Mt. Clemens. The critical school hours. Safe Streets is funded in part health and safety indicators are the reductions in by The Skillman Foundation. youth violence, substance abuse, and early sexual activity among youth 10 to 17 years of age. With a $10 million, eight-year grant from The Robert Community Partnership for Cultural Participation Wood Johnson Foundation, based in Princeton, New Jersey, the organization has been responsible The Community Partnership for Cultural for or influential in bringing to Detroit after- Participation is a five-year, $5.3 million initiative school programs, $1.3 million from the City, launched in 1998 by the Community Foundation County, and State and over $5 million in grants for Southeastern Michigan and part of a national from private and corporate foundations. The program funded by the New York-based Wallace- Greater Detroit Health Council (See Healthy Reader’s Digest Fund with matching funds from Detroit, above) serves as the lead agency. 16 local independent and corporate foundations.

17 The Partnership has made over $3 million in The GreenWays Initiative grants to increase participation in cultural pro- grams and help strengthen the organizations that The GreenWays Initiative is a five-year, $75 million provide these programs. Among other efforts, it partnership — $25 million in private funds leverag- has supported creation of a cooperative marketing ing $50 million in public funds — that is adminis- program that will help cultural organizations tered by The Community Foundation for enhance their marketing efforts; published the Southeastern Michigan. It is designed to engage first-ever regional directory of cultural organiza- people, nonprofit organizations, the public sector, tions; convened regional forums for cultural lead- and private resources to initiate and expand “green- ers; and expanded opportunities for youth to par- ways” projects, defined as open spaces that link ticipate in cultural activities. parks, nature reserves, cultural features, or historic sites for recreation and conservation purposes. Project components include public education and Detroit 300 outreach, building capacity of existing nonprofits dedicated to greenways, and grantmaking to The celebration of Detroit’s 300th anniversary in increase collaboration and to create greenways. 2001, Detroit 300 attracted government, nonprof- it, and philanthropic sector support in Detroit as well as significant private sector support from Lessons Learned across the region. From 1999-2001, Detroit 300, Inc., chaired by Edsel B. Ford II, raised over $28 Though proven successful, collaboration is with- million, approximately 65% from corporations, out doubt a challenging process that requires 25% from private foundations, 5% from individu- shared vision, persistence, patience, and trust by als, and 5% from the public sector. This money is all partners. City Connect Detroit looks forward to in addition to a $1 million initial contribution playing a role in helping funders, nonprofits, and from the City of Detroit. Funds raised underwrote the public sector establish new partnerships and a number of discrete projects, all demonstrating maintain existing ones. As an important step in public-private collaboration and coordination. this process, the Detroit Report Task Force identi- fied the following as lessons learned over the past To the public, the Detroit 300 Birthday Festival, eight years of collaboration. including three full days of concerts and Sail Detroit, the Ford Parade of Ships, is the greatest • Where there is private-public coordination as memory of the anniversary year. It attracted 5.7 well as structures to support the collaborative million attendees over ten days and generated spirit, the quality of life in Detroit is likely to $158 million in income. improve.

Over half of the funds raised by Detroit 300, Inc., • Private funders can complement and expand support Detroit 300’s four legacy projects: 1) on the job of the public sector by bringing Legacy of Trees, a partnership with Greening of new perspectives to the table and by helping Detroit to plant trees in city neighborhoods, parks, to convey the importance of systemic and schools; 2) Riverfront Promenade, a partner- approaches to the community at large. ship with Detroit Development Authority to • Foundations can play a neutral convening role enhance this unique part of Detroit that included for the public and independent sectors. building the Gateway to Freedom Monument to the Underground Railroad; 3) Campus Martius • Through their grantmaking, local and national Park and District, an alliance with the Mayor’s foundations are able to leverage significant Campus Martius Task Force to renovate a 13- funding from the City, State, and Federal gov- block area in the heart of downtown and build the ernment as well as from individual donors. Campus Martius Park; and 4) Detroit 300 Conservancy Endowment, a $3.4 million fund to • Each of the three sectors has limited abilities support the repair and maintenance of the other and resources. Synergy is vital if Detroit is to three Legacy projects. The Mayor may appoint go beyond providing basic services to address- two people to the Conservancy board. ing quality of life issues.

18 • Partnerships between the City and private sec- • Funders and the City need to work together tor must be nurtured, and they require sus- to effectively coordinate partnerships, includ- tained involvement of all parties as well as ing defining roles of all point people and clar- constant communication and free flow of ifying lines of authority. information. • From the outset, all projects need to be con- • Establishing new cross-sector collaborative cerned with sustainability, long-term results, agencies and nonprofits to meet specific goals and immediate outcomes. Community sup- has helped attract private funding as well as port, City investment, and, in many cases, public sector trust and commitments. endowments all contribute to sustainability. Examples include the Youth, Sports and Healthy Detroit, Re-Cap, and the PARK Recreation Commission, GreenWays, PARK Program have paid close attention to engaging Program, and City Connect Detroit. community stakeholders on an ongoing basis in advisory or operational roles. • The most complex type of partnership, among existing nonprofits, private funders, and the • The community must be willing to establish City, provides a solid foundation for real partnerships that address issues identified as change on issues that have long challenged priorities by the federal government or Detroit. Detroit LISC, the Funders national foundations in order to bring signifi- Collaborative, Family Place, Communities in cant national funding to Detroit. This result Schools, and Healthy Detroit are all examples has occurred for Youth Connections, Youth of such multi-sector partnerships. Opportunities Program, Healthy Detroit, Detroit LISC, City Year, Voices of Detroit, and • To work, public-private partnerships require Schools of the 21st Century. commitments of energy and money from many different stakeholders, including foun- dations and their staff, City departments,and individuals at a variety of levels, nonprofits and their staff, and residents of Detroit.

19 Future Directions

The next four years will be crucial to determining City Connect Detroit seeks to establish an on- the future of cross-sector partnership in Detroit. going relationship with Mayor-elect Kilpatrick and In the 1990s, nonprofits, funders, and the City the City for strategic problem solving and to bring have transformed from mostly standalone opera- in new federal and state dollars for the process. In tions to active and energetic partners working working towards this goal, City Connect Detroit together toward solutions to long-range systemic recommends that the Mayor: issues. Current collaborative ventures are tackling issues as diverse as Education, Community and • Continue the City’s significant role in the Economic Revitalization, Health, Families Youth implementation of the major collaborative and Children, and Quality of Life, Culture and efforts described in this report. Environment. • Focus on developing new cross-sector collab- With collaborations and new organizations devel- orative efforts, patterned after projects like oping at a rapid pace, we have yet to have the Schools of the 21st Century and LISC, that important, big-picture conversation about what involve nonprofits, the public sector and vari- we have learned, what and who have been over- ous elements of the private sector. looked, which styles and modes of communica- tion with each other work best, which strategies • Include the philanthropic sector in identifying should be recycled for use in fresh partnerships, strategic problem solving opportunities for and what new approaches need to be tested in our which resources are required from public/pri- community. City Connect Detroit is honored to be vate partnerships. a resource to the Mayor, the nonprofit organiza- tions, and funders as we search together for the • Join the Board of City Connect Detroit as a keys to bringing a higher quality of life to Detroit full board member. residents. • Appoint a senior executive staff as liaison to Beginning formal activities in December 2001, the philanthropic community. City Connect Detroit’s primary mission will be to offer strategic solutions to problems for the better- • Continue the City’s significant role in the ment of the people of southeast Michigan through implementation of major collaborative efforts focused collaborations and joint grant applications initiated during the past eight years, particu- among government, grantmakers, and nonprofit larly support of cross-sector collaborative organizations that share similar goals. More efforts that involve nonprofits, the public sec- specifically, City Connect will foster partnerships tor and various elements of the private sector. around identified issues; develop a Grants Information Network (GIN) to disseminate federal An organized, catalytic effort that targets attention government and national foundation grant oppor- to tapping more federal and national resources, tunities to Detroit nonprofits, City departments such as City Connect will do, offers a tremendous and local funders; prepare collaborative grant pro- resource capacity for Detroit. City Connect Detroit posals in response to national funding opportuni- is confident that our recommendations to work ties; and serve as a clearinghouse for local and better as collaborators to develop and implement national technical assistance providers. strategies will create numerous human investment opportunities for Detroit.

20 Appendix A: Survey Respondents Jewish Federation of Metropolitan Detroit Anderson Foundation The Jewish Fund Annenberg Foundation The Kresge Foundation Art Serve Michigan McGregor Fund The Carls Foundation Metro Health Foundation Julius V. and Alice G. Combs Foundation Michigan Women’s Foundation Community Foundation for Southeastern Michigan Charles Stewart Mott Foundation DTE Energy Foundation National Healthcare Scholars Foundation Detroit Neurological Foundation Elsa U. Pardee Foundation Detroit Youth Foundation Pulte Homes, Inc. Fannie Mae Foundation SBC Ameritech Rollin M. Gerstacker Foundation Sigma Gamma Foundation Hannan Foundation The Skillman Foundation F. B. Heron Foundation Thompson-McCully Foundation The Holley Foundation Whitney Fund, a supporting organization of the Hudson-Webber Foundation Community Foundation for Southeastern Michigan

Appendix B: Foundations Awarding Grants Totaling $300,000 or more in Detroit in 1999

Foundation Name Foundation City State Dollar Amount W. K. Kellogg Foundation Battle Creek MI $22,297,758 The Skillman Foundation Detroit MI 17,987,006 Community Foundation for Southeastern Michigan Detroit MI 8,500,000 Ford Motor Company Fund Dearborn MI 8,210,243 DaimlerChrysler Corporation Fund Auburn Hills MI 6,757,880 Hudson-Webber Foundation Detroit MI 6,707,718 General Motors Foundation, Inc. Detroit MI 5,090,404 Bank One Michigan Charitable Trust Detroit MI 4,567,182 McGregor Fund Detroit MI 4,368,000 DTE Energy Foundation Detroit MI 3,600,000 The Jewish Fund Bloomfield Hills MI 2,304,648 * The Kresge Foundation Troy MI 6,825,000 The Annenberg Foundation St. Davids PA 1,850,000 SBC Ameritech Foundation San Antonio TX 1,798,140 Charles Stewart Mott Foundation Flint MI 1,490,000 The Carls Foundation Detroit MI 1,479,500 John S. and James L. Knight Foundation Miami FL 1,450,178 Hannan Foundation Detroit MI 1,400,000 Benson and Edith Ford Fund Detroit MI 1,376,434 Matilda R. Wilson Fund Detroit MI 827,975 The Anderson Fund Detroit MI 701,000 The Annie E. Casey Foundation Baltimore MD 525,000 Carnegie Corporation of New York New York NY 500,000 Herrick Foundation Troy MI 423,000 Jewish Federation of Metropolitan Detroit Bloomfield Hills MI 381,500

Sources: The Foundation Center and 2001 Survey by the Detroit Report Task Force of City Connect Detroit * Includes a one-time special grant in the amount of $1.6 million to the Detroit Medical Center.

21 Contact Person Gary Anderson, 313-577-2567 Jessye Franklin, 313-849-3490/1171 Charlie Anderson, 313-538-8952 Pamela James, 313-871-3515 Geneva Williams, 313-393-1153 313-874-6858 Penny Bailer, 313-596-8222 Brown, Karen 313-596-8222 Tilford, Vincent 313-494-4274 Joe Petroskey, 313-494-4423 Laura Stanley, Kate Beebe, 313-237-6095 s central business district and adjacent neighborhoods. ’ Continues to operate effectively and servesContinues to operate effectively an instrumental function. Description See Section VI See Section VI Established in 1995 (but functioning for two years prior to as a committee Public Schools), connects community authorized by the Superintendent of Detroit in and families. Works to meet the needs of children to schools in order resources and mentoring including the facilitation of after-school 72 schools on 93 programs, private funders, cor- Funded by contributions, contracts, and grants from programs. porations, and the City of Detroit. See Section VI See Section VII in 1999, based on a national youth service model initiated 14 Established in Detroit years ago in Boston and now being implemented 13 U.S. cities nationwide, for young adults aged 17-24 who commit to 10 months of full-time service in Detroit in programs, Public Schools, doing tutoring during the school day and after-school in leadership and participating addition to leading community service projects in eight schools 2001- Working development and civic engagement programs. the Michigan Commission on Community 2002. Funded by Americorps through Service, with local foundations, corporations, and individuals. in partnership See Section VI See Section VI See Section VI the rede- A private-public sector collaboration formed in 1996, designed to address velopment needs of Detroit ’ Collaborative Local Initiatives Support Detroit LISC) Corporation (Detroit Focus: Hope Downtown Partnership Greater Grant or Partnership Education (ACE) Art-Centered Comer Schools and Families Initiative Communities in Schools Schools of the 21st Century City Connect Detroit City Year Community Detroit Development Funders Appendix C: A Sampling of Partnerships and Philanthropic Initiatives, 1994-2001 Appendix C: A Sampling of Partnerships and Philanthropic Area Education Community and Economic Revitalization

22 Contact Person Regenia Simmons, 313-224-4955 Hill, 313-965-1100 Harold 313-267-1119 Fisher, Tomiko Francis Boylan, Brother 517-423-7451 Glenn Lapin, 313-259-5400 or Jim Petty, Walker Willie 313-876-0584 s eastside into a ’ community resource center housing more than 40 organizations that address the needs that address than 40 organizations center housing more community resource and communities. neighborhoods in the surrounding who reside of families and children Foundation, the Hudson-Webber Originally funded in 1994 with a $500,000 grant from assistance to for-profit pre-development loan fund that provides WCDF is a revolving working to develop housing in the partnerships developers and for-profit/nonprofit October 2001, the Fund has made 21 loans totaling Through Corridor. Woodward $1.55 million. These loans have led to the construction of or planning for 559 units housing with total construction costs in excess of $65.3 million. WCDF is one Renaissance. by Detroit loan funds offered charitable pre-development three the initiated in 1999, funded by nearly $50 million grants from A 6-year project of Labor and based on a DOL model being implemented in 33 U.S. Department youth ages 14-21, with a for all Detroit youth development programs cities. Provides community serv- of social responsibility, focus on out-of-school youth, in the areas and education training. and recreation, ice, sports Description administration An innovative business concept executed in July 2001 by the Archer that encourages private sector corporations to work with contractors, contract asso- through ciations, and building trade unions to foster long-term economic growth Calls for the adoption of good faith diversity in the construction industry. increased 25% minorities, and 5% women on privately residents, to use 50% Detroit efforts expenditures at least 30% of aggregate and to purchase funded construction projects and women- small, minority, for construction goods and services with Detroit-based, owned businesses. with the Small Business Administration and funded pri- in partnership A nonprofit with local banks. One of 26 similar projects marily by federal funds in partnership services to small businesses in a single location. the United States provides across businesses Includes a Small Business Development Center which counsels start-up of One seat on the Board with Eastern Michigan University. a partnership through for a City appointment. is reserved Directors See Section VI and Boysville of Michigan that in Detroit between SER Metro partnership A nonprofit hospital on Detroit early 2001 transformed the former Detroit-Mercy Grant or Partnership One Detroit One Stop Capital Shop (OSCS) for Economic Partnership Independence Samaritan Center Corridor Woodward Development Fund (WCDF) Renaissance of the Detroit Foundation Program Opportunity Youth (YO) Area Community and Economic Revitalization Continued

23 Contact Person Ed Larkins, 313-963-4990 Randy McNeil, 313-963-8916 Randy McNeil, 313-963-8916 Kathleen Conway, 313-874-5483 Lucille Smith, 313-832-4246 313-963-4990 Dudley, Grenae Randy McNeil, 313-963-8916 313-963-4990 Dudley, Grenae Daniel Krichbaum, 313-567-6225 Denise Wellons-Glover, 313-664-0700 734-547-9164 Susan Kelly, Rosa Sims, 313-824-9108 s own community ’ s eastside initiated in 2000 and funded by the Annie E. Casey ’ Foundation as part of a national program to strengthen families and neighborhoods. to strengthen of a national program Foundation as part that chil- initiative based on the premise Making Connections is a family-strengthening sup- that are do well when families and in neighborhoods dren in the southeastern school constellation It is working with Southeastern Village portive. and other community development, engaging residents education through to reform initiated in 2000 with Family to Family, local stakeholders to transform neighborhoods. initiative intended to system reform a 3-year grant of over $1 million, is child welfare by placing those who must be placed in institutional care the number of children reduce families with a permanent family in the child birth from removed Description See Section VI See Section VI See Section VI See Section VI See Section VI See Section VI See Section VI See Section VI K. Kellogg the W. a $8 million, 10-year grant from Initiated in 1997 through Foundation) to turn an aban- Youth Initiative (now the Detroit Foundation Youth into an early childhood of Detroit High School area doned building in the Northern both private nonprof- agencies located at the center are Partner development center. Head Start, Among other services,its and branches of City Departments. provides for spe- programs classes and support, teens, parenting for pregnant care childcare, to community resources. and referrals cial needs children, initiatives on Detroit Two Grant or Partnership Healthy Detroit to Adopt and Partnership Revitalize Parks for Kids Program) (PARK Re-Capitalization of Recreation (Re-Cap) Centers Project Schools-Based Health Initiatives Initiative of Detroit Voices (VODI) Connection Youth and Recreation Sports Youth, Commission Network Safe Streets Detroit Family Place Making Connections and Family to Area Health Families, and Youth Children

24 Area Grant or Partnership Description Contact Person Families, Metropolitan Organizing Formed in 1997 and funded by membership dues and a group of private Detroit-area Bill O’Brien, 313-838-3190 Youth and Strategy Enabling Strength funders, an advocacy umbrella group that unites over 70 congregations plus other Children (MOSES) civic/corporate institutions in tri-county Southeast Michigan. Has been an active Continued voice on local neighborhood crime and housing issues, regional transportation and regional anti-drug strategies, urban revitalization, and growth management issues. Has fostered urban/suburban and multi-racial participation in land-use decision making in Michigan.

Quality Community Partnership for See Section VI Bridgett Lomax, 313-961-6675 of Life, Cultural Participation Culture, and Environment Detroit 300 See Section VI Maud Lyon, 313-871-0865

The GreenWays Initiative See Section VI Tom Woiwode, 313-961-6675 City Connect Detroit 600 Renaissance Center, Suite 1700, Detroit, MI 48243 Subsequent to the publishing of Investing in Detroit: Philanthropy Report (1994-2001), additional data and information was gathered about the philanthropic efforts in the Detroit area. This page updates page 21 in the published report.

Appendix A: Survey Respondents

Anderson Foundation The Jewish Fund Annenberg Foundation The Kresge Foundation Art Serve Michigan MASCO Corporation Foundation The Carls Foundation McGregor Fun Julius V. and Alice G. Combs Foundation Metro Health Foundation Community Foundation for Southeastern Michigan Women’s Foundation Michigan Charles Stewart Mott Foundation DTE Energy Foundation National Healthcare Scholars Foundation Detroit Neurological Foundation Elsa U. Pardee Foundation Detroit Youth Foundation Pulte Homes, Inc. Fannie Mae Foundation SBC Ameritech Rollin M. Gerstacker Foundation Sigma Gamma Foundation Hannan Foundation The Skillman Foundation F. B. Heron Foundation Thompson-McCully Foundation The Holley Foundation Whitney Fund, a supporting organization of the Hudson-Webber Foundation Community Foundation for Southeastern Jewish Federation of Metropolitan Detroit Michigan

Appendix B: Foundations Awarding Grants Totaling $300,000 or more in Detroit in 1999

Foundation Name Foundation City State Dollar Amount W. K. Kellogg Foundation Battle Creek MI $22,297,758 The Skillman Foundation Detroit MI 17,987,006 Community Foundation for Southeastern Michigan Detroit MI 8,500,000 Ford Motor Company Fund Dearborn MI 8,210,243 DaimlerChrysler Corporation Fund Auburn Hills MI 6,757,880 Hudson-Webber Foundation Detroit MI 6,707,718 General Motors Foundation, Inc. Detroit MI 5,090,404 Bank One Michigan Charitable Trust Detroit MI 4,567,182 McGregor Fund Detroit MI 4,368,000 DTE Energy Foundation Detroit MI 3,600,000 The Jewish Fund Bloomfield Hills MI * 2,304,648 The Kresge Foundation Troy MI 6,825,000 The Annenberg Foundation St. Davids PA 1,850,000 SBC Ameritech Foundation San Antonio TX 1,798,140 Charles Stewart Mott Foundation Flint MI 1,490,000 The Carls Foundation Detroit MI 1,479,500 John S. and James L. Knight Foundation Miami FL 1,450,178 Hannan Foundation Detroit MI 1,400,000 Benson and Edith Ford Fund Detroit MI 1,376,434 MASCO Corporation Foundation Taylor MI 1,072,100 Matilda R. Wilson Fund Detroit MI 827,975 The Anderson Fund Detroit MI 701,000 The Annie E. Casey Foundation Baltimore MD 525,000 Carnegie Corporation of New York New York NY 500,000 Herrick Foundation Troy MI 423,000 Jewish Federation of Metropolitan Detroit Bloomfield Hills MI 381,500

Sources: The Foundation Center and 2001 Survey by the Detroit Report Task Force of City Connect Detroit * Includes a one-time special grant in the amount of $1.6 million to the Detroit Medical Center

City Connect Detroit thanks the MASCO Corporation Foundation for additional information provided for the purposes of this addendum, particularly with respect to the Foundation’s significant efforts in support of Habitat for Humanity’s revitalization efforts and the Tricentennial Village campaign, which will result in the construction of sixty homes in a sixteen block neighborhood within a mile of Tiger Stadium.