Philanthropic Watchdog Issues First 'State of Philanthropy' Report, Offering Sensible Solutions for Field of Grantmaking

4/29/2002

From: Sloan C. Wiesen of the National Committee for Responsive Philanthropy, 202-387-9177, E-mail: sloan@ncrp.org

WASHINGTON, April 29 -- The National Committee for Responsive Philanthropy (NCRP) today released "The State of Philanthropy 2002," a compendium of thoughtful analyses on the current state of affairs in the field of grantmaking -- where the field is now, where it is going and how it can do better.

The first in a planned series of such publications, the 104-page report presents diverse perspectives from 20 nonprofit, academic, foundation and advocacy leaders, and offers a wide range of solutions the philanthropic community can act upon in order to live up to its promise of securing social and economic justice for all.

"'The State of Philanthropy 2002' aims to help philanthropy live up to its best intentions of investing in common-sense social change to improve the quality of life for all Americans," said NCRP President Rick Cohen. "This new publication offers the kind of constructive critical thought and sensible solutions that could greatly Beuefit nonprofits and funders alike -- and ultimately the communities we are all striving to serve."

The report addresses a broad array of topics, including philanthropy and: public accountability, poverty, race, gender, sexual orientation and gender identity, public policy, social justice advocacy, community foundations, venture philanthropy, foundation payout rate, progressive policy making, workplace giving programs, the aftermath of Sept. 11 and youth organizing. While the perspectives presented are wide-ranging, several important themes emerge. Among them:

-- Foundations should invest a higher percentage of their endowments in grants to nonprofits. The foundation community's own research confirms that foundations can afford to increase their "payout rate" -- making this sensible investment in social change while preserving their long-term fiscal stability.

-- Funders should shift their giving significantly toward core operating support for nonprofits. Foundations and the nonprofits they fund would all benefit tremendously if foundations significantly stepped up their investment in core operating support for nonprofits' day-to-day operations. The alternative -- foundations current overwhelming focus on short-term project funding -- leaves nonprofits to jump from project to project in an endless money chase that hampers organizational effectiveness and hinders broader mission fulfillment.

-- Fund social change advocacy -- not just direct social services and cultural programs. Successful democracy depends on all sectors of society becoming engaged in the development of public policy. Funding advocacy by nonprofits is crucial to the creation and implementation of sound public policy. The IRS clearly permits significant advocacy by nonprofits -- and the funding of nonprofits that engage in advocacy. Both funders and nonprofits must embrace this critical component of their work.

-- All Americans merit an equal place at the philanthropic table. Philanthropy must become a vehicle for positive social change that is equally effective for men, women and children of all races, faiths, ethnicities, sexual orientations, ages, abilities and socio-economic backgrounds. There are still many steps that need to be taken to ensure that the drive for equality, fairness and non-discrimination reaches throughout society and permeates all aspects of philanthropic activity.

"A generation after some of America's most distinguished nonprofit leaders came together to form NCRP as a means of helping philanthropy become more open and accountable to the disadvantaged, 'The State of Philanthropy 2002' finds we still have a long way to go -- and offers some common-sense solutions to help us get there," added Cohen. "We are looking forward to State of Philanthropy reports becoming regular NCRP contributions to the field of grantmaking. This kind of publication offers practitioners a much-needed chance to take stock of what is working, what isn't and what solutions can improve philanthropy for the future."

Printed bound copies of "The State of Philanthropy 2002" can be ordered from NCRP for $25 per copy. Checks or money orders should be made payable to NCRP and mailed -- along with the purchaser's name and address -- to the National Committee for Responsive Philanthropy, 2001 S Street NW, Suite 620, Washington, D.C., 20009. Excerpts from the publication also can be viewed by visiting NCRP online at http://www.ncrp.org.

Founded in 1976, the National Committee for Responsive Philanthropy is dedicated to helping the philanthropic community advance the traditional values of social and economic justice for all Americans. Committed to helping funders more effectively serve the most disadvantaged Americans, NCRP is a national watchdog, research and advocacy organization that promotes public accountability and accessibility among foundations, corporate grant makers, individual donors and workplace giving programs. For more information on NCRP or to join, visit http://www.ncrp.org or call 202-387-9177.