On the Brink of New Promise
THE FUTURE OF U.S. COMMUNITY FOUNDATIONS
A presentation for the
[Your Organization Name Here]
Content provided by Blueprint Research & Design, Inc. and the Monitor Institute
A New Era of Community Philanthropy is Emerging
The next generation is
likely to create surprises
as important as Fidelity’s
entrance into the field in
the past generation.
Community foundations
are a prominent feature in
the picture of community
philanthropy, but they are
by no means alone.
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Today’s Landscape for
Community Philanthropy
Community foundations today operate in a more complex
and crowded environment
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A Snapshot of Today’s Crowded Environment
Locally-Focused
Private Foundations
United Ways
Giving Federations
Identity-Based Focus Funds
Alternative and
Community-Based
Foundations
Community Foundations
Hometown Associations
and Remittance Giving
Healthcare Conversion
Foundations
Locally-Based
Corporate Giving
Commercial Charitable
Gift Funds
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Today’s Competitive Environment for Community Foundations
Competition from low-cost/
high volume providers like
Fidelity and Vanguard, as
well as high-end wealth
management advisors
Commercial Players
Improved connectivity can
allow donors to link
directly with nonprofits
Community
Philanthropy
Suppliers,
Distributors,
1
Vendors
(including
community
foundations)
Nonprofits
Professional
service
firms
Not only
is the
arena of community philanthropy more crowded,
Innovations
Donor
and technology
a rangeproviders
of other are
competitiveSubstitute
forces are also affecting
thelike
field.
Managed Investment Funds
beginning to offer services
Products and Services
and Dynasty Trusts may
that overlap with community
create new alternatives
foundation services
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Forces Shaping the New Era
•
•
•
•
•
Economic and market pressures
With the shift from an industrial economy to an information-based
one, corporatechanges
consolidation, globalization, and outsourcing are
Demographic
likely
rearrange
localAmerica
economies
corporations
become
In
theto
next
generation,
will as
grow
bigger, older,
and more
increasingly
mobile.
diverse. The
changing face
the population
will fundamentally
Changing
expectations
for of
regulation
and accountability
alter
the composition
andgeneration
social dynamics
of communities,
as well
Philanthropy
in the next
will operate
under increased
as
the services
they require.
regulatory
and public
scrutiny.
The field will also be affected by
The
commercial
sector
as innovator
regulatory changes in other sectors, including tax law, homeland
Community philanthropy has long been connected to several allied
security, and intellectual property law.
industries,relationships
such as accounting,
tax sectors
law, estate
Changing
between
andplanning,
new
investment advising,
andproblem
financial solving
management. As each of these
expectations
for public
industries
innovate,shifts
merge,
and developservices
new services,
they will
Ongoing structural
in government
and corporate
force
philanthropy
to respond.
responsibility
will require
philanthropy to continuously assess these
relationships
as it defines
The combination
of these
forcesitsisrole.
inescapably changing much
of what now feels familiar.
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Learning from the Past
The forces and circumstances of today aren’t just a blip in time,
unrelated to what has come before or after.
The same forces have shaped each of the major historical periods of
evolution of community philanthropy in the U.S.
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Early Community Philanthropy
Early American community philanthropy was
characterized by informal practices of “taking care of
one’s own” that were integrated into the daily life of
every American demographic group.
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The Institutionalization of Community Philanthropy
This period witnessed the formalization of early giving
practices and the creation of many of today’s key
institutional structures, such as community
foundations, giving federations, and United Ways.
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The Democratization of Community Philanthropy
After the Great Depression and World War II,
organized community philanthropy spread and
diversified into new communities and populations.
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The Age of Commercial Charity
This period included the explosive growth of
community philanthropy organizations in the 1990s
and the entrance of commercial charitable gift funds
into the philanthropic arena.
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The Next Era
What will the next era look like?
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Lessons from the Future:
What Could the New Era Bring?
What if…
A large
provider
of databetween
management
Community
Changes
national
inpartnership
tax
philanthropy
regulations
organizations
and giving
community
services
for
foundations
begins
to
use its
patterns
began
foundations
to force
cross
and
the
traditional
back-office
consolidation
borders
technology
of and
enormous
database
to directly
connect
community
boundaries
providers allows
foundations,
to work
community
together
United
on
foundations
Ways,
a pressingto
donors
tooridentity-based
nonprofits,
effectively
and
regional
workother
together
national
as a seamless
issue?
funds
network
as a way
of
“disintermediating”
community
to
connected
streamline
community
overhead
offices?
costs?
foundations?
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Strategic Implications for Community Foundations
The best efforts of previous generations
have left us with an incredible legacy to
build upon, and the community
philanthropy that we know today will not
disappear.
But many of the original assumptions
that guided the early community
foundations no longer necessarily fit
today’s operating environment.
The mindset that guided the field to this
point will need to be replaced with a new
set of principles and priorities.
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Principles for a New Era of Community Philanthropy
•
A shift in focus from the institution to the community
•
Community foundations must move beyond the important emphasis on
Aoperational
shift fromefficiency
managing
assetstotoalong-term
leadership
of financial
the last decade
second order
of change.
•
Every service
and product
community
foundations
offer is
now available
Building
an endowment
is one
important
part of helping
communities,
but
Afrom
from
competitive
independence
coordinated
other
or soon
will
be. Theto
it shift
is not
thesources,
only
measure
of
success.
endowment
is aimpact
means to
service,
not
the
end
in itself.
Success
onever
the before,
ground
in communities
and successful
More than
community
foundations
will needcompetition
to use yourfor
donors
require
fundamental
shiftand
from
a mindset
of“walk
independent
community
knowledge,
relationships,
leadership
the
talk” of
Just
as will
important
isapermanence—the
assurance
of atostrong,
enduring
value
to onebenefit.
of coordinated
impact.to feel secure that gifts given today will
community
commitment
that
will allow donors
continue
to serve
for the long
term. to work in real
In many cases
youthe
willcommunity
need to structure
yourselves
partnership
other community
philanthropy
organizations
and to
Community with
foundations
can now do
this by choosing
from a wide
range
piggyback,
commercial
innovation.
of strategic rather
roles inthan
yourfight,
communities.
These
roles are the “building
blocks”
community
philanthropy
strategymay
in the
In other of
cases,
mergers
and consolidation
befuture.
necessary to reduce
operational expenses.
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
What this means in [Your community name]
•
[Your content here]
•
[Your content here]
•
[Your content here]
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Assessment Scales
Degree of change in our community over the next
decade?
Rapid and
Significant
•
What types of changes do we expect?
•
How well positioned are we to respond to
these changes?
•
What implications do the changes have for our
organization and the services we provide?
Slow and
Incremental
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Assessment Scales
How well do our people and programs
reflect our changing community?
•
Not as well as
they should •
How well do our staff and board reflect our
community?
Pretty
well
How well do our programs
address the varied
Very
well
needs of different parts of our community?
•
What level of cultural competence does our
organization have for working with various
population groups in our area?
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Assessment Scales
How often does our foundation take leadership
on local issues?
•
What are the issues where we have been a
successful community leader?
Rarely
Often
•
What was it that made those efforts successful?
•
Are there issues where we act as a
complementary partner or “follower” of others?
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Assessment Scales
What type of capital does our foundation
provide to the community?
•
What types of non-financial assets (skills,
capacities, influence) do we bring to bear on
local issues?
Social capital and
leadership as
important as • How do others in the community view our
money
contributions?
•
Entirely
financial
How do we finance our leadership activities?
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Assessment Scales
Degree of collaboration
•
What are examples of the collaborative work
that we have done?
Nearly always
work with other
• What characterized our successful
organizations collaborations?
•
Primarily
work
alone
What types of organizations have we
partnered with? How was power shared?
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Assessment Scales
Are we providing distinctive value to our
community?
No
•
How are we distinctive?
•
Sometimes
How do we know?
•
What would others say?
Yes
For example, the head of the local United Way?
Local politicians? Community members?
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Appetite for Change
How much does our community foundation
need to change in the next 10 years?
Very little
0
1
A fair amount
2
3
4
5
A lot
6
7
8
9
10
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
Questions for Discussion
• What should we hold on to?
• What do we need to let go of?
• What do we need to learn?
© Blueprint Research & Design, Inc. and Monitor Company Group, LLP
For more information, visit:
www.communityphilanthropy.org
What type of capital does our foundation provide to the community?
No
Sometimes
Are we providing distinctive value to our community?
Nearly always work with other
organizations
Degree of collaboration
Social capital and leadership as
important as money
Rarely
Pretty
Well
How often does our foundation take leadership on local issues?
Not as well as
they should
How well do our people and programs reflect our changing community?
Rapid and
Significant
Degree of community change in the next decade
Assessment Scales
Yes
Primarily
work alone
Entirely
financial
Often
Very
well
Slow and
Incremental