Foundations Favor General Operating Support in Theory but Hesitate to Make It Happen
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by Alex Daniels
Although foundation leaders increasingly support the idea of providing multi-year grants for nonprofits’ general operations, relatively few do so regularly because of organizational inertia, suggests a study released Wednesday.
The study found little evidence that the “tried and true myths” about what is preventing foundations from offering multi-year general operating support were actually limiting grant makers, says Ellie Buteau, vice president for research at the Center for Effective Philanthropy, which surveyed foundation program officers and chief executives as well as grantee leaders.
For instance, program officers often view their bosses as lukewarm on the practice, Buteau says. However, both executives and program officers say they are widely supportive of long-term general operating support, the study found.
On a scale of 1 to 5, with 1 being “strongly in favor of a decrease” in multi-year general operating support and 5 being “strongly in favor of an increase,” foundation chief executives gave themselves an average score of 3.9, indicating they’d like to increase unrestricted grants. They perceived their boards as slightly less in favor, with an average score of 3.4 but still in support of an increase overall.
Program officers gave themselves a score of 4.4. They ranked their executive leadership’s interest at 3.7.
What’s stopping foundations from providing such grants? The study, Buteau says, suggests that the idea that others in the organization are against doing so is inaccurate. The reasons, she suggests, are a little more vague: Many don’t seem to believe multi-year general operating support is a “fit” with the grant maker’s practice or think it hadn’t yet been prioritized.
“It simply boils down to choices foundations want to make,” Buteau says.
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Successful Mergers and Partnerships: More than the Numbers
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by Jan Breiner Frazier, Planning Plus, LLC
Throughout our 30-plus year history as consultant professionals, we have worked with the leadership teams and boards of nonprofits as well as owners of for-profits who were engaged in various forms of collaborations — whether for a merger, a formal association or a strategic and documented partnership.
Unfortunately, we are often called in after the due diligence is complete and the merger has started down the road — only to experience a rocky start. The cause? More often than not, the numbers may work but the cultures do not.
During due diligence activities, leaders focus on a number of factual components for creating a “new” organization — including financial statements; current contracts; programs, services and other deliverables; competition; legal constraints; and competencies of the management teams. But all too often, they overlook the cultural issues within each of the entities that can quickly derail any progress.
When merging two or more nonprofit boards, it is critical to understand the operational environments. Are they structured, disciplined, forgiving, siloed, collaborative or innovative? Will the strengths of each organization complement or clash? How will individual company lifestyles mesh?
Perceptions by stakeholders about how or why the discussions took place must also be discerned. Neither organization wants to be viewed as “taken over” because that may be perceived by the community as a sign of weakness. Both organizations generally assure their staffs that the outcomes will be beneficial for everyone involved as they sell the idea to their teams. Yet, those driving the process often discount the emotional toll of going through organizational change as staff members have their own assumptions about their roles — which may change by necessity.
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Ivy Tech Community College has named Jo Nahod-Carlin vice president of recruitment and enrollment management. Nahod-Carlin most recently served as vice president of customer experience at Managed Health Services/Centene Corp. — Inside Indiana Business
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Bosma Enterprises has named Dana Werner as its chief operating officer. Werner previously worked at the Defense Finance and Accounting Service, a U.S. Department of Defense agency. — Inside Indiana Business
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Bosma Enterprises has been working to lower the 63% unemployment rate for the blind and visually impaired Hoosiers by expanding its current line of business as well as looking into acquisitions.
The Duke Energy Foundation is awarding 19 “Powerful Communities” program grants in Indiana totaling more than $235,000. The foundation said the funding will support environmental programs for water quality, conservation, and habitat and forest restoration. Read
The Indiana Chamber of Commerce has released its annual employer workforce survey, which revealed that employers are more aggressively working on solving workforce challenges, improving recruitment and hiring practices, and expanding work-based learning opportunities. Read
The U.S. Small Business Administration has released a simpler loan forgiveness application for Paycheck Protection Program ( PPP) loans $50,000 or less. Read | Download application
Charitable Advisors plans to publish the next nonprofit compensation report in the summer of 2021. But we need your help. Please take a few moments to send us contact information for the person responsible for completing the nonprofit salary survey on behalf of your organization. Send information
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Central Indiana Community Foundation (CICF) Inclusive City 2020 on Oct. 28 from 4:00-5:30 p.m. During this virtual session, you will hear an update on CICF’s commitment to dismantling systemic racism, hear from leaders who are contributing to this work and learn more about how to join the plan of action for a more equitable community. Register
How to manage operational risk at your nonprofit webinar on Nov. 3 at 3:00 p.m. Discussions will include tips on how to evaluate a nonprofit’s operational risks, including identifying key risk areas and missing internal controls. Presented by BKD. Cost: free. Register
Courageous conversations social justice & equity - An open dialogue to open hearts on Nov. 10 from 9:00-10:30 a.m. Actions you can take in your organization to be equitable and inclusive, creating positive change. Hosted by National Association of Women Business Owners. Cost: free. Registration
Tips & tricks for a smooth nonprofit audit process webinar on Nov. 10 at 3:00 p.m. BKD’s nonprofit audit professionals will share insights from their own experience to help attendees understand areas that should be monitored. Presented by BKD. Cost: free. Register
Strategies to establish a successful recurring donor program webinar on Nov. 12 at 3:00 p.m. A panel discussion on strategies to establish a successful recurring donor program in your nonprofit organization. Hosted by VonLehman CPA & Advisory Firm. Cost: free. Register
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Caring for a Cause, which serves low-income disadvantaged families with resources to assist them with being self-sufficient, is currently looking for sponsors to adopt families for Thanksgiving and Christmas. Sponsors can choose the family size. Contact Tamara Ajimati at [email protected] or 317-358-6450.
Girls Rock! Indianapolis, a volunteer-led organization, is seeking new members for its marketing committee. Duties may include social media, email marketing and video production, based on the person's skillset. Girls Rock! generally meets once a month. Contact Marissa Smith-Kenny at [email protected]. Learn more about the organization www.girlsrockindy.org.
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Our sponsor marketplace serves to further connect our readers with our advertisers who are focused on serving nonprofits. To learn about each sponsor's nonprofit services, click on its logo.
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