Week Ten - Foundations

Wow, last blog. This term has kind of flown by. Here is a current article about country wide mayors speaking out on how foundations are building the local economy and keeping employment rates up:

http://www.prnewswire.com/news-releases/mayors-speak-out-about-impact-foundations-have-on-local-jobs-and-economies-117577473.html

How to do good and prove it

            Mulago Foundation seems to have a pretty good grasp on choosing good nonprofits and causes to fund. I agree with all of their demands of nonprofits. I liked how the article started out stating that it is not enough to even do well anymore. Nonprofits must put time and energy in measuring their impacts. There is not an endless supply of money, as there was during the better economy, for nonprofits. There are also a large number of nonprofits starting, the last five years has seen the largest growth in the NP sector. As Kevin Starr states, nonprofits must be designed for impact, they need a short and direct mission statement and they must integrate impact into their DNA.

            In this article I found the part interesting that stated only the final impact counts, ‘the rest is just input, which is worthwhile by not good enough on its own’. Some NP’s get too complicated in their mission statements. They may have a great cause, but even if their mission statement is not direct people will not listen. It is also important that the mission statement is short so that these organizations actually know what they are trying to accomplish. When mission statements get complex, employees might actually get confused of what they are trying to accomplish. I agreed with the end of the article discusses the danger of poorly designed nonprofits that keep on growing. He states, “stop raising money until you sort that out”, referring to not measuring impact.

A newly powerful grant-making force

            It is interesting to see how foundations are stepping up for what they believe. Traditionally, foundations have not gotten involved in political affairs dealing with their support. This has recently changed when the Smithsonian removed of a video of AIDS activist David Wojnarowicz, because of criticism. Artist endowed foundations have grown by more than doubled in the last fifteen years. Some of these foundations give money to solely to arts, but others give to social causes as well. These artist-endowed foundations reported $2.7 billion in assets for 2008. This is very impressive for a sector that is relatively new.

            The article stated that even though the economy is weak, artists continue to give. It stated, “All of this suggests that while most still fly below the radar, artist-endowed foundations merit attention.” These foundations are going to continue to grow as more people see the importance of art education and performance. I personally think that these art foundations are a doing great things. I think it is important that art is heavily incorporated into elementary education and money continues to flow into the art sector.

Donors and Nonprofits Defining Moment

            I thought this was a fantastic article. The next few years is really going to be a defining time for nonprofits. It is so true that people are going to want to return to how life was before the recession. As the economy is struggling and millions are left unemployed, nonprofits are playing a big role in educating and helping these people. The article states that after the recession, NP’s need to play a bigger role in the mechanics of the country. The idea of ‘Social Impact Bonds’ is a brilliant idea. It is the same idea of going into an area and starting a new organization to solve an issue, while at the same time there is already a long term organization in the area that already has ties with the community and is making a lasting difference. It makes no sense to start something new while good things are already taking place. These bonds will give government money to organizations that have proven that they are accountable with their finances are making a lasting difference.

Budget Plan

            I have to admit that I am still confused after reading this article. I do not really understand the tax cuts that are happening. I did find this quote interesting, “The cost to fix that tax for three years is more than $300-billion, roughly the same amount that would be saved.” I am interested to read my other group members blog to learn more about they think.

I also read the Nonprofit nation chapters, it discussed how foundations have grown and their finances. The articles on blackboard were all very good.

Cheers.