“Working with Financial Professionals”

This issue of More than Money, “Working with Financial Professionals” offers practical advice for finding a good fit with financial professionals. Writers describe recognizing a disconnect between their values and the values of professionals who may have been inherited with the wealth from the prior generation. Tips for being a good client. Tips for managing financial professionals. Two readers share the unorthodox practices of professionals they depend on, letting readers know that there are alternatives to growing principal and reducing taxes as the goals of wealth management.

Categories: Financial Stewardship

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2013 Outlook Report

To assess the outlook for grantmaking in Minnesota in 2013, the Minnesota Council on Foundations (MCF) conducted its 2013 Outlook Report survey in October and November of 2012. The survey asked grantmakers to predict how their 2013 giving will compare to 2012. A total of 104 organizations responded, representing 75 percent of annual grantmaking in the state.

Categories: History, Role in Society, Financial Stewardship

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A Handbook for Giving Circle Hosts: Tools and Resources for Developing and Sustaining Giving Circles

The Forum’s handbook of tools and resources for giving circle host organizations, including tools for deciding whether to host a giving circle, key questions to ask and a checklist of giving circle and host duties.

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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About Mission Investing

This resource discusses market-rate and below-market mission investments made by foundations and other mission-based organizations to further their philanthropic goals.  

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Capital and Collaboration – Strengthening Community Investment in Smaller, Postindustrial Cities

To better understand the system of community investment, and with the hope of developing interventions that would permit it to achieve greater scale, efficiency, and impact, the authors developed a framework they called “capital absorption.” This work offers potential routes forward for understanding and addressing need in low- and moderate-income communities in postindustrial cities throughout New England.

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Certified Nonprofit Accounting Professional (CNAP) Course

FMA’s Certified Nonprofit Accounting Professional (CNAP) program is the only nationally recognized certification program for existing and aspiring nonprofit accounting and fiscal management professionals. The course, offered in person or online, covers practical skills that can be immediately applied to your day-to-day operations, including: Financial Reporting Internal Controls Budget Development Governance As the only licensed provider of CNAP in New York, Chicago and online FMA holds regular courses taught by instructors with extensive nonprofit financial backgrounds. Learn Philanthropy members are entitled to a special discount of $100 off the cost of both the in-person and online CNAP programs using the code LP2020.

Categories: Financial Stewardship

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Commonfund

Commonfund is an asset management firm founded in 1971 with a two-part mission. First, to create investment solutions for nonprofits that previously did not have the scale and access to the best managers and strategies. As importantly, our charter was to also create educational programs that would bring current best practices to institutional investors of all sizes and segments. Our insights have helped to advance asset management practices and grow portfolios through ever-changing investment environments. Commonfund too, has changed and grown dramatically over the years–expanding both our investment solution offerings and the client segments we serve. Yet, our mission has remained Read more




Expert Q & A: How can grantmakers best read and analyze nonprofit financial statements?

By: Chad Gorski, Grants & Finance Coordinator at Howard Hughes Medical Institute Understand the goal of the statement analysis and consider the risk assessment needs of your organization: What part of the required due diligence process does it fulfill? How much risk is acceptable? What red flags will impact decision-making? Is a ground-up analysis necessary or can third party info be used? See Project Streamline’s guide on Grant Budgets and Financial Reports, which helps grantmakers think through what information is really needed to make a grant. The Due Diligence Done Well guide from Grantmakers for Effective Organizations is also very useful. Understand the Read more

Categories: Grantmaking, Online Publication, Financial Stewardship, Ask an Expert

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Families Step Up to Meet Economic Crisis

Based on what family foundations are telling us they are doing, NCFP offers the following 10 steps you can consider during a tough economic climate.

Categories: Foundation Management, Resources, Financial Stewardship

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Five Proven Ways to Use Donor Advised Funds

Through this webinar we explore and discuss the basics of Donor Advised Funds (DAF) with a wide range of topics covering: What is a Donor Advised Fund How does a Donor Advised Fund work How does a Donor Advised Fund differ from a Private Family Foundation Starting a Charitable conversation with your clients and Trends  

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Foundation Expenses and Compensation: How Operating Characteristics Influence Spending

This 2006 study documents how foundation characteristics such as giving amount, asset size and staffing, and activities such as international giving and operating a “charitable” facility or research program, affect the expense levels at the 10,000 largest independent, corporate, and community foundations.

Categories: Models & Approaches, Financial Stewardship

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Foundation Payouts

In the first Alliance Audio series, editor Charles Keidan hosts a roundtable discussion with Angela Kail (Head of the Funder Team, New Philanthropy Capital), Cathy Pharoah (Co-Director of the Centre for Giving and Philanthropy, Cass Business School, City University London), and Jake Hayman (CEO of Ten Years’ Time) on the topic of philanthropy sector payouts. Following on from their pieces in Alliance over the last few months, these philanthropy experts and practitioners discuss the controversial topic of payouts; why they should be imposed, why they should not be imposed, and what they might mean for the sector as it stands at the Read more

Categories: Foundation Management, Resources, Financial Stewardship

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Four Horsemen of the Nonprofit Financial Apocalypse

What are the characteristics that make organizations vulnerable, from a capitalization point of view? Too much real estate Too much debt “Under Water” balance sheets and negative liquidity Torturous labor economics Any one “horseman” can make an organization more vulnerable in an uncertain, changing economy. But when these horsemen ride together, they can be fatal. This article by Clara Miller explores our sector’s problematic approach to making financial decisions – and what organizations that are in over their heads can do.

Categories: Grantmaking, Financial Stewardship

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Fundraising Foundations

Creating a separate but affiliated fundraising organization — a foundation for the purpose of raising funds — is not for every nonprofit. If your board is considering the option, it is important to identify the various challenges and benefits such a foundation might bring with it.

Categories: Foundation Management, Resources, Financial Stewardship

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How to Find (or Develop) Impact Investing Deals (webinar)

This impact investing how-to guide is a must for foundations with few or no staff who want to align their investments with their mission. Walk away with a list of resources to explore with your team and grow your knowledge base on the tools available to further your mission.

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Impact Investing: An Introduction

For many years philanthropy and investing have been thought of as separate disciplines—one championing social change, the other financial gain. The idea that the two approaches could be integrated in the same deals—in essence, delivering a financial return while doing good—struck most philanthropists and most investors as far-fetched.   Not anymore.

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Innovative Philanthropic Financing for Community Change

This report provides a concise summary of the East Baltimore Revitalization Initiative, with a focus on how the Annie E. Casey Foundation used innovative financing techniques to support the project. The report provides background on the initiative, which is working to transform an 88-acre area near the Johns Hopkins medical campus that has been hard hit by disinvestment and social problems. The report details transactions that helped finance the initiative and highlights the critical role innovative financing can play in complex redevelopment efforts. The report also offers lessons from these transactions for the philanthropic community, local officials, developers and lenders Read more

Categories: Foundation Management, Resources, Financial Stewardship

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Lessons in Financial Management

The following article discusses how FMA and The Wallace Foundation are strengthening and improving the quality of afterschool groups in the Chicago area. Provides a snapshot of capacity-building efforts in one community. (FMA is pleased to share this article with the permission of The Chronicle of Philanthropy.)

Categories: Beyond the Grant , Financial Stewardship

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Looking-Glass World of Nonprofit Money: Managing in For-Profits’ Shadow Universe

This article by Clara Miller looks at the rules of money and finance that govern the nonprofit sector in comparison to those in the for-profit sector. Test your knowledge of nonprofit finance – and the contortions that tie nonprofits up in knots.

Categories: Foundation Management, Resources, Financial Stewardship

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Mapping the Journey to Impact Investing

Existing resources in the field can provide the technical blueprints for making impact investments; by openly sharing its experiences, the Surdna Foundation hopes this report will serve as a case study for others in the philanthropic community who choose to explore impact investing tailored to their mission and goals, and that it will contribute to collective learning in the fields of mission-related investing and family philanthropy.    

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Nonprofit Capital: How to Think Differently about Its Use in Your Organization

This webinar helps participants better understand and work to optimize their organization’s capital structure, identify key sources and uses of capital, and understand how to budget for and monitor capital grants and expenditures over time.

Categories: Financial Stewardship

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Philanthropic Foundations: Payout and Related Public Policy Issues

This 2004 brief reports on a discussion from the tenth “Emerging Issues in Philanthropy” seminar series of foundation payout and regulation.

Categories: Legal Issues and Laws, Financial Stewardship

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Philanthropy’s New Passing Gear: Mission-Related Investing. A Policy and Implementation Guide for Foundation Trustees

The goal of this guide is to provide foundation trustees and, where or when appropriate, staff with a process to create both an overall policy for mission-related investing as well as specific paths for implementation.

Categories: Mission, Vision and Values, Legal Issues and Laws, Financial Stewardship

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Program-Related Investments

Why is it that private foundations spend so little of their endowment on mission investing? Is there an opportunity to make it bigger? In this paper you will find an explanation of the barriers to mission investing, also known as Program Related Investment and Mission Related Investment, and a concluding hypothesis about what it will take to help remove the barriers. Educating foundation leadership, building foundation staff expertise, improving data quality and lowering the cost of making a mission investment are all issues to understand and address. If our hypothesis is correct, the time is now to build the necessary data, education Read more

Categories: Foundation Management, Resources, Financial Stewardship

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Proving Foundation Impact on Public Policy Empirically: The Case of the Robert Wood Johnson Foundation and Consumer Choice for Adults With Developmental Disabilities

Foundations that work on national public policy issues face challenges in demonstrating impact. This case study of how the Robert Wood Johnson Foundation’s initiative to support choice of program provider for developmentally disabled adults uses some advanced statistical techniques to demonstrate the impact of the foundation’s funding. This study suggests that to get the greatest impact on policy change, foundations should consider offering modest competitive grants to governmental departments; spending the funds in regional groupings; and focus on jurisdictions that have demonstrated interest in the policy area by spending their own funds.

Categories: Legal Issues and Laws, Financial Stewardship

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Rural Fund Development 101:Starting and Growing Rural Community Endowments

Across rural America, people are joining together to do something new and different. They are launching and growing community endowments. Community endowments resemble savings accounts that grow over time. Local residents are using the interest earned on these community endowments—and the local energy and leadership that come from building them—to improve the quality of life for people, organizations and the places they call home. This guide, Rural Fund Development 101, will help you understand the basics of community endowments and how to create one.

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Stewardship Principles for Corporate Foundations

This publication about Stewardship Principles and Practice Options to Strengthen Performance describe how corporate grantmakers can reflect these fundamental values in their governance, management and grantmaking.

Categories: Financial Stewardship

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Stewardship Principles for Family Foundations

This publication about Stewardship Principles and Practice Options to Strengthen Performance describes how family foundations can reflect these fundamental values in their board governance, management and grantmaking.

Categories: Financial Stewardship

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Stewardship Principles for Independent Foundations

This publication about the stewardship principles and accompanying practices describes how Independent Foundations can reflect these fundamental values in their governance, management, grantmaking, and charitable foundations.

Categories: Financial Stewardship

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Top Ten Finance Essentials for Funders

What we do and how we serve is inspired by our commitment to create a financially strong nonprofit sector that’s better able to serve the community. Throughout our 30 years, we’ve developed some core concepts and philosophies on nonprofit finance that inform all our practices. Our Top Tens, crafted for both nonprofits and funders, give a concise summary of these concepts. Concepts include: benefits of unrestricted funding, business model and business planning, and knowing your role (as either a buyer or builder) as a funder.

Categories: Grantmaking, Field/Sector Learning and Evaluation , Financial Stewardship

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Webinar Archive: Common Ways to Engage in Impact Investing

This is the second in a series of three webinars based on Essentials of Impact Investing: A Guide for Small-Staffed Foundations, produced in conjunction with our partners at Arabella Advisors and Exponent Philanthropy. This new impact investing how-to guide is a must for foundations with few or no staff who want to align their investments with their mission. In Common Ways to Engage in Impact Investing you will hear about some of the diverse impact investing strategies that small-staffed foundations are putting to use. Foundations employ a variety of tactics, from below-market to market-rate investments, and across asset classes and Read more

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Webinar Archive: Why Foundations of All Sizes Engage in Impact Investing

This is the first in a series of three webinars based on Essentials of Impact Investing: A Guide for Small-Staffed Foundations, produced in conjunction with our partners at Arabella Advisors and Exponent Philanthropy. This new impact investing how-to guide is a must for foundations with few or no staff who want to align their investments with their mission. In Why Foundations of All Sizes Engage in Impact Investing, you will hear from small-staffed foundations as they discuss the motivations behind their impact investing programs, the benefits their foundations receive as a result, and the case they had to make to Read more

Categories: The Philanthropic Sector, Resources, Financial Stewardship

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Webinar Recap – Investment 101 and Transformative Finance

This webinar explores how justice, power, and finance can work together to contribute to meaningful social change, and includes a grounding in “Investment 101” to help us all have the same language.

Categories: Financial Stewardship

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What Donors Value: How Community Foundations Can Increase Donor Satisfaction, Referrals, and Future Giving

To better understand how community foundations can best respond to the current environment, CEP asked donors about how satisfied they are with the community foundations with which they work. What matters most to them? What do these donors want from their community foundations? The research reveals that donor satisfaction is vital for community foundations. Donors who are more satisfied with their community foundation are more likely to indicate that they plan to continue giving and more likely to recommend the foundation to others. The data also show that the strongest predictors of donor satisfaction are donors’ sense of the foundation’s Read more

Categories: Foundation Management, Resources, Financial Stewardship

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Who Manages the Money?: How Foundations Can Democratize Capital

A case study of the W.K. Kellogg Foundation. For the past twenty-five years or more there has been a groundswell of activity among investment managers institutional investors, consultants and diversity advocates to democratize capital — that is, to create more opportunities for diverse investment professionals and the firms they lead, to manage institutional capital. This effort, grounded in both fiduciary and equity principles, has led to the growth of many diverse investment management firms like Progress Investment Management Company LLC (“Progress”) and others. A range of stakeholders now recognizes that democratization of capital brings a range of positive benefits to Read more

Categories: Beyond the Grant , Financial Stewardship

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