Are you responsive?
Here are three ways to ensure that foundations are being as responsive as possible
Recently, the Stupski Foundation team started considering the end of our foundation in 2029. While that may seem somewhat far away, we know it will come quickly. And, there is much to do before the closing date.
Around that time, a close foundation peer asked me, “given your increased disbursement that you’re spending down, how do you know that you are being truly responsive funder to your grantees?”
She went on, “I know that you want to provide them with ‘transformative’ investments. Do you know what transformative means to them?”
And, then she asked the big questions, “do they know what transformative could be for them? How will you know if you are living into our value of being responsive?”
She looked at me curiously and asked me why I would expect that any organization would give me an honest answer. I proceeded to rattle off a bunch of qualities that we believe we embody as funders. We are trustworthy. We are transparent. We are also friendly, caring, and we embrace all of the best qualities of trust-based philanthropy.
I smiled and asked, “why wouldn’t they be honest with us?”
…donors to, and staff of, private foundations have so deprived small community based organizations of cash for so long that most groups are conditioned to ask for much less than they need.
She was unmoved. She kept staring at me curiously. She said that she agreed that we are all those qualities, but that doesn’t change the fact that donors to, and staff of, private foundations have so deprived small community based organizations of cash for so long that most groups are conditioned to ask for much less than they need. They will ask for what they think the foundation will be willing to give. And, then they will look to get more through side pockets and other initiatives that the foundation designs like capacity building, crisis funding, and other programs, rather than just funding organizations at levels they need.
Her advice was to request the ten year vision of the organizations we seek to fund and return assets to them at that level. Be mindful of all the legal and financial implications that could arise, but trust that you can address them.
I understood exactly what she was saying. When I led Forward Global (a network and learning program for individual donors and foundation trustees), we would routinely request funds from our members to support our operations and growth. Many of these people stewarded assets in the millions of dollars, but I would request $5K. I requested this paltry amount of support because I assumed that this is what they would be willing to give, rather than asking for what I needed. I needed $10M, but I accepted deprivation. And, the sad part is even if one of them asked what I needed, I would have said $5K, because I knew that was their preference.
Three Ways to Become a Responsive Funder
Being a responsive donor requires much more than asking what an organization needs. It requires asking yourself “why is it more important for me (the donor) to hold onto these assets than the organizations that are working on the front lines of social change.” It is very hard to justify hoarding and holding of charitable dollars. There are reasons, for sure, but not many.
Being responsive means that you put aside your own needs of control, which leads to the liberation of time and money for the organizations that most need your support. And, based on the relationship you have built, understanding for what your partners truly need, making transformative moves.
Being responsive means giving at the levels an organization needs rather than giving at levels that feel comfortable for you and your needs (such as perpetuity, legacy, employment). It also means giving at levels that you know the organizations needs, rather than what they tell you they need.
Believe me, if a donor had come to me and said, Glen I don’t think you need $5K from me. I think you need $10M from me (or a group of us). I would have enthusiastically agreed. A grant of that level would have forever changed the growth trajectory of Forward Global and would have most certainly catalyzed better giving and billions of dollars in additional resources for other organizations. That is the power of being truly responsive.
Are you being responsive with your giving?
In case you missed it - check out the latest episode of #BreakFakeRules…
Watch the abbreviated version of our discussion on YouTube or listen to our full exchange wherever you get your podcasts.