Archive for December, 2008

Commit to Change: Win Tickets to the Inauguration

December 30, 2008

Thanks to Beth Kanter for a great post that shows how we can continue the holiday giving spirit to change the world year-round.  Beth gives month by month inspiration and opportunities to weave charity into our celebrations and everyday lives. 

Over the next week, I’m planning to take my own advice from the post “One Thing You Need to Know Before You Donate To Charity This Holiday Season” and come up with my plan for active engagement in my chosen cause month to month and day to day during 2009.  My cause is going to be homelessness and if you have ideas for how I can further the cause through changes and actions in my life over the coming year, please feel free to comment or email me directly at sharon.l.schneider at gmail dot com.

If you’re also inspired to make some change to make the world a better place, share your idea with the Case Foundation here and you could win a trip for two to the Presidential Inauguration on January 20th.

“As we usher in this exciting new era of change we recognize that everyone has a part to play. So, how will YOU commit to bringing about change in your neighborhood, your community or your nation? The Case Foundation is calling on citizens across the country to join the Change Begins With Me campaign by sharing how you will be part of the change.”

Winners will be chosen at random from all entries that aren’t sexist, racist or condone illegal drug use.  Not the highest bar to reach, but still, worth a shot!  Enter by January 12 for a chance to win.

My One Prediction for 2009: Trustee Accountability Re: Investments

December 23, 2008

Bernard Madoff  and his $50 billion ponzi scheme have so far taken down a number of charities and private foundations, the almost $1 billion Picower Foundation among them.

It was immediately evident to me that foundation board members would find themselves held accountable for these problems with the investment of their endowment funds.  As soon as I saw those articles, I sent this update to my Twitter network:

Major warning to all foundation board members: your fiduciary duty extends beyond spending to the investments: http://is.gd/bMjT

Last week, a wealth management firm wrote me a letter to let me know that none of its clients were affected by the newly discovered scandal. This “manager of managers” said that when they checked in with their chosen managers, a few had done preliminary due diligence on Madoff’s fund but quickly opted not to invest based on the murky findings.

Real-world Consequences Starting to Appear

Now we’re seeing the first hints that my warning will be backed up with some serious consequences.  Thanks to the Chronicle of Philanthropy for this article on how the Connecticut Attorney General Richard Blumenthal is going to look into whether the trustees of the charities who were taken in acted appropriately as “prudent investors” protecting the foundation’s endowment funds.  Mr. Blumenthal said “The standard is that the director or fiduciary at any nonprofit has to exercise due diligence and the care and caution of any ordinary prudent investor.”

The Picowers may have been thrilled with the growth of their endowment in the seemingly capable hands of Mr. Madoff, but if it turns out that they didn’t do appropriate due diligence and trusted the foundation’s many hundreds of millions of dollars to “a friend” based on word of mouth–millions for which they already received a huge tax deduction when they donated to the foundation–the government could easily penalize them (maybe even imposing  personal finacial penalties) for being careless with charitable-use funds entrusted to their care.

Balancing the Equation

There are two sides to the financial equation for any organization: money in and money out.  For private  foundations, the income comes from donations or from investments–interest, dividends and realized capital gains.  But most boards pay far more attention to the money going out: grants and administrative expenses. 

So here’s my single prediction for 2009: Charity boards and trustees, especially those at private foundations who rely on the endowment to produce income for grantmaking, are going to suddenly take the income side of their fiduciary duty very seriously.  To play this trend out, I think smart foundations will take at least some of the following steps:

  • More grantmakers will decline to have their investment advisor sit on the board, or to say the same thing in reverse they’ll decline to pay a board member to provide investment advice. 
  • More foundations will hire firms to review their choice of financial advisors and their adherence to the investment policy.
  • More foundations will revisit their investment and conflict of interest policies and make sure they are in compliance with their own policies.
  • Foundations may also trend more conservatively in their investment decisions so  as not to appear to be prioritizing short-term gain over the conservation of principle.

If you’re on the board of a private foundation or a public charity with some investable assets, I highly recommend that you use your next board meeting to make sure you aren’t going to be taken down by the next Bernie Madoff.  For example, you should be familiar with the Prudent Investor Rule. 

For many nonprofit boards, financial committee reports may be limited to reporting on the investment returns and as long as the returns seem reasonable for the market conditions, there aren’t a lot of questions about where those returns come from.  If you and your board need guidance, you may consider whether to hire an independent firm to review your investment policy, make sure your policy is being followed, and to provide some educational sessions so that your board is well-informed and comfortable with the investment management. 

In 99% of cases, you’ll be comfortable with what you find and everything will be fine.  But it’s the process that matters–and your documentation of that process.  Jack Siegel, a Chicago lawyer who advises charities, was quoted in the Chronicle article as saying “It’s all about process. The question is, did they do what normally would be done in selecting investment managers?”

So in the end, your litmus test should be whether you, as a board member, would feel confident answering the questions of an IRS agent or your state’s Attorney General about how your investment process works.  If you’re not, get professional help.

All opinions expressed in this article are mine alone, and do not represent those  of my employer or any other nonprofit, foundation or organization with which I may be affiliated.

What You Need To Know Before You Donate? What You’ll Do After

December 15, 2008

My friend Nathaniel Whittemore over at Change.org asked me to be part of his post “One Thing You Need To Know Before you Donate to Charity this Holiday Season.”

I’ve written before about how individual donors can approach giving decisions, absent the resources of an expert staff or the luxury of extensive time to uncover the strengths and weaknesses of one approach to working with teenage delinquents over another. 

So I’m actually going a slightly different route.  Instead of focusing on the charity and how you’ll evaluate its work, its staff, its financial health, I suggest that before you donate this holiday season, you evaluate yourself. 

The Integrated Life

The biggest trend in philanthropy goes way beyond the borders of what we often think of as “philanthropy”: the new philanthropist is anyone who strives to live all aspects of his or her life informed by the same values that inform that person’s charitable giving. They may show any of the following symptoms:

  • The desire for a socially-responsible job: Studies show that MBA graduates are willing to give up 15% in salary to work for a socially responsible company or feel like they are making a positive difference in the world.  Teach for America applications are up so dramatically that you have a better chance of being accepted at one of the most prestigious universities in the country than being selected to teach in one of America’s poorest school districts for next to no money. (Almost 15% acceptance rate at Teach for America compared to 16% at Penn, 23% at Duke and 20% at Georgetown)
  • The desire to patronize socially responsible companies. Studies also show that consumers are more likely to develop brand loyalty and pay a premium for products from companies that they perceive as socially responsible. 
  • The desire to replace material gifts with meaningful gestures: I don’t have any hard numbers on this but I can tell you a great deal of my blog traffic these days comes from people searching for “charity gift certificates” and “charitable gifts.” As just one example, check out the the Givelist for over 75 wonderful ideas that don’t involve giving money.  In my own family, the adults have given up buying each other Christmas presents in favor of making a donation to our family foundation.
  • Support for “fair trade” and “sustainable” commerce.  Shopping at farmer’s markets and refusing to order the veal.
  • The desire to spend “vacation” time building homes for people in Guatemala or volunteering in an orphanage in China.

People like this used to be considered a little extreme.  But our collective consciousness is expanding these days as more and more people are examining how the hundreds of little choices they make every day add up. 

Follow Through

So here’s my One Thing: pick your charity (following whatever process feels right to you) and then follow through.  Think about the values that led you to choose the charity and then extend those values to other areas of your life.  Let money be the beginning of your commitment, not the end. You have so many more resources and channels to help accomplish the work of the charity.  Some ideas and examples:

  • Your social networks: Suggestions from friends and family are one of the most important factors in charitable giving. Your friends know you and trust your judgment, so be an advocate for the causes you care about with friends and family. Online, you can add a Facebook Cause to your profile, change your IM or Twitter icon to represent the charity or cause, add a “donate here” widget to your blog, put a URL or sentence about the cause in your personal email signature line, etc.  Offline, make sure your friends and family know of your support for this cause.  Ask them attend events with you or volunteer with your or donate stuff.  When you update your wardrobe and donate clothing, ask your friends and family if they have anything to add to the pile, and offer to get them a receipt.  Is there some political aspect to the charity’s work around which you can rally your friends?  Start a petition, write letters, use your influence as a voter and encourage your neighbors to do the same. At your next social gathering ask friends to bring a piece of their work wardrobe they no longer wear and donate it to a job training program. Or they can just bring some canned goods.
  • Your purchasing power: Ask your charity whether there are consumer habits or trends that are affecting them positively or negatively.  If you support immigrant rights, be aware of your produce purchases at the grocery store–how was the coffee produced? How was that lettuce harvested? If you give money to a battered women’s program, you may want to change your media habits to avoid perpetuating images that portray women as objects. If you support charities that work to improve the community and provide health care to low-income workers, investigate whether there are alternatives to shopping at Wal-Mart and Target that provide better working conditions and keep profits in the local community.
  • Your free time: Are you willing to volunteer your manual labor? Office work, data entry, stuffing envelopes, manning the phones during a pledge drive or member drive?  Bring your friends or your spouse or your kids?  If you’re concerned with animal welfare, be sure your vacations don’t harm local ecosystems or animal habitat.  If you give to an environmental cause, really examine your transportation and see if you can’t use more public transportation, walk or ride your bike.  If you support the troops, consider writing letters to those serving abroad.
  • Your employer: More employers are promoting skills-based volunteering and your accounting firm may be willing to trade some employee time for community goodwill.  They also may be interested in your ideas to boost employee morale: If you’re a tree-hugger, form a “green committee” to promote “reduce, reuse and recycle” in the office (the CFO will especially like the “reduce” part in this economy), organize a food drive as part of the annual holiday party or have the office adopt a few families from a local shelter. Encourage the company to match employee giving. If you can swing it, try to help your company integrate socially responsible practices.
  • Your stuff: Goodwill and The Salvation Army aren’t the only ones who need gently used stuff: day-cares and churches and hospitals needs toys, homeless shelters needs toiletries, foster kids need backpacks and a few things to call their own. Many charities dislike spending money on office supplies and furniture, so when you’re ready for a new desk, see if your charity of choice could use your old one. 
  • Your talents: Can the charity benefit from any of your skills or talents?  If you’re a marketer you could design a logo or if you’re web savvy you could serve as voluntary webmaster.  If you’re a writer you could help with the newsletter. But one of my favorite ideas here is to offer your fun talents for the charity auction fundraiser.  My mother works for a nonprofit that held a live auction in October.  Since my husband and I were trained as blackjack and poker dealers in Atlantic City, the charity put together and auctioned off an “In-Home Fish Fry for 20 People” that offered our services combined with the donated catering of the family who does all the local Catholic “Fish Fry” events during Lent. I’ve never been prouder to help raise $500 for charity.

The Challenge: Baby Steps, Baby Steps

It’s easy to be overwhelmed by the huge number of possible life changes that could result from carrying all our values through all aspects of our lives.  Overwhelmed enough to decide it’s just not possible and give up.  So here’s my challenge to all of us who consider ourselves “charitable”: pick that one charity, identify that one issue, really adopt it and follow through on it in every aspect of your life.  Don’t try to do them all at once–it’s too much.  But whichever one speaks to you the loudest, ignites your outrage and your passion–pick that one, and live it.  Let your choices everyday be part of the solution. As Ghandi told us, “Be the change you wish to see in this world”

iGoogle “Themes for Causes”

December 11, 2008
 

In the category of Too Much Information, you can file this: the widgets on my iGoogle homepage include “To-Do’s” “Weather” “Gmail” and “Movie Times,” which, much to my aggravation, I am unable to change to my new Chicago zip code permanently–it keeps reverting back to Fairfield, CT.   But the theme of my page was the Hong Kong skyline, which changes the time of day in the picture on my screen along with the actual time of day, how cool is that?  Now, I just noticed near the bottom right of the theme bar, something called “Themes for Causes.”

Turns out you can now customize your theme to be a graphic from your favorite cause. There are currently only about 25 cause themes, but looking at which charities already have a theme up is just fascinating.  It’s the same folks who I have seen be incredibly media-savvy or web-savvy in other areas of their fundraising: Invisible Children, Ashoka, The ONE Campaign, Heifer International, Charity: Water (which got almost $1,000 from my friends and family who donated in lieu of birthday gifts, and many thousands more from others like me. Check out my write-up of their campaign here). Heavy on environmental orgs and disaster/development organizations like Oxfam, Mercy Corps and the Red Cross.

After you choose your theme for a cause, you’ll be the only one who sees it day it to day–it’s not like an IM icon or a Facebook or Twitter picture that folks will see next to your name every time you contact them.  But once you select the theme there will be an ever-present option to Donate in the bottom right of the theme box.

In case you’re wondering, I decided to go with the Jane Goodall Institute. First, because the monkeys remind me of my kids.  Second, because I’m visiting the Jane Goodall Institute next summer in Africa and it will keep me very excited to look forward to this wonderful opportunity. 

 iGoogle Jane Goodall Institute theme

iGoogle Jane Goodall Institute theme

Attention Charities: Be a Cause to Remember

This iGoogle theme thing may seem a little silly.  Maybe not worth your time to develop one.  I mean, how much are they really going to raise through a click button on their Google homepage?  But I think the emergence of these themes taps into one of the trends in philanthropy–the desire people have to live an integrated life, expressing their values in a consistent way through all parts of their life.  That means self-identifying themselves as active, concerned citizens by adding “Causes” on Facebook (12 million people have).  It means giving charitable gifts this Christmas instead of Wal-Mart gift cards.  And it means adding a charity theme to their iGoogle homepage.
 
If you want to be part of their identity, which means being part of their day-to-day life, give them these ways to express their support.  It’s part of the larger connection.  And if it’s not your charity, it will be another charity that is in front of their face, the first thing they see every morning, day after day after day, and every time they click the “home” button, and every time they do a Google search.  Don’t you want your cause to be the one they remember?

GiveList and lists, lists, lists

December 5, 2008

The cyberworld is aflutter with folks talking about resources for charitably-inclined gift givers this holiday season.

The GiveList

The GiveList was created two days ago by nonprofit bloggers Alison Fine and Marnee Webb.  “The GiveList is a resource of ways to support communities and causes this holiday season that don’t necessarily require writing a check.  We all know it’s rough out there this year, but that also means that the needs of people and communities are also greater than every.  There are a lot of ways that a creative do-gooder can continue to help heal the world.”

In fabulous cyber-speed, it’s taken off quickly and folks are adding their ideas and suggestions.  Check it out for many great suggestions on how to be charitable when money is tight.

Youth Service America

Youth Service America just added a post on 10 Ways to Serve Your Community This Holiday Season. This list is aimed at young people, which is great because adults aren’t the only ones who give gifts this time of year. I especially love the suggestion to help your teachers clean up the classroom before leaving for winter break.  Being married to a teacher and otherwise related to about 5 more, I think this effort to help teachers get home to their families would be especially appreciated.  More than a holiday mug or another candle, anyway.  Bonus: it’s free, of course, to give your time.

Have Fun • Do Good

Ten Lists of Holiday Gifts that Give Back.  If you can’t find the perfect gift after browsing the lists that Britt Bravo has collected, you should just give the person cash.  Seriously, there’s a lot of great resources here already and I’m sure people will keep adding other lists in the comments section.

A Word About Cause Marketing

This holiday season you are sure to run into plenty of products from companies who promise to give some proceeds of the sale to charity.  Although I don’t discount cause marketing as an effective way to raise awareness about problems and the people working to address them (see earlier post and comments on Product(RED)),  I’m more inclined to favor products that were produced by or reflect the experiences of the people in need of assistance: providing direct income and jobs to help those people help themselves like Rwandan Path to Peace Baskets or Zhena’s Gypsy Tea .  I think it’s nice that LUSH donates some proceeds to charity but I think it’s better that LUSH uses ethical sourcing for their glorious beauty products and minimizes packaging using recycled materials wherever possible.

You don’t have to make the same decision to favor social enterprise over cause marketing, I just ask that you be conscious of the difference.

Want more?

For more ideas on charitable gifts this holiday season, check out my earlier posts on Charitable Gifts for Mom, Charitable Gifts for Dad and Charity Gift Certificates.