#2: Transparency

In This Issue

• Bringing Guiding Principles to Life
• SDG Guiding Principle #2: Transparency
• Suggestions for Practice
• Related Resources
• Upcoming SDG Programs

Bringing Guiding Principles to Life

We will be working throughout this year to bring our newly-adopted set of Guiding Principles to life, so that they are not just words on a page but rather guidelines for action. Our objective is to provide you with a relevant and powerful framework to help you conduct your philanthropy according to the highest standards of effectiveness and accountability.  One means by which we will do this is to focus on each principle in a monthly newsletter. This month, we continue with principle #2: Transparency. Click here (pdf) for the entire set of Guiding Principles. You can also click here to see the other Regional Associations of Grantmakers that have adopted Guiding Principles.

Several SDG members have let us know that they are bringing the Guiding Principles to their boards and engaging in conversation about how they apply to their organizations. Some members are considering formally adopting the principles themselves as a sign of commitment: in fact, the San Marcos Community Foundation adopted the principles in May! Let us know if you are considering doing so, or if we can provide any additional resources to you as you discuss the principles.

SDG Guiding Principle #2: Transparency

We are accessible, responsive and make readily available basic information about our programs, funding priorities and application requirements.

To discharge their public responsibilities and duties, philanthropic entities need to be open, accessible and structured in a way that facilitates give and take with the community. This is not only a critical step in getting the work done but it contributes to increasing public understanding of the nature of organized philanthropy and its role in civil society.

Suggestions for Practice

There are different ways to implement each of the Guiding Principles depending on the nature of your grantmaking entity.  For example, what works for a corporate giving program may be different than what works for a small family foundation. By adhering to the spirit of these principles in a way that applies to your specific circumstances, you demonstrate your commitment to maintaining the public trust in organized philanthropy. Here, we share some suggestions gathered from our colleagues for implementing Principle #2: Transparency.

Organization Information

• Register and file required documentation for nonprofit corporations or charitable trusts with appropriate state offices, when incorporating or forming a trust.
• Complete 990 or 990-PF annually and file it with the appropriate federal and state regulators, as required by law. Retain and make available for public inspection, without charge, a copy of the original and amended 990 or 990-PF for the last three years. Provide copies of 990 or 990-PF and tax-exemption application to anyone who requests them either in person or in writing (within 30 days of the request), or make 990 or 990-PF available on website as exact images of the originals.
• Make information readily available about mission, funding priorities, finances, operations, governance (names of governing body members, officers, and staff members) and impact (grantees, programs) through annual report, website and/or other communications vehicles, as appropriate.
• Publish an address and the name of an individual to contact for information. Organizations that maintain offices, if feasible, also publish a phone number, office location, and office hours.
• Produce an annual report with format, detail and dissemination appropriate to the size and complexity of the organization, including: Names of board members; Names and titles of officers; Listing of staff; Grants for the fiscal year; Grantmaking priorities and application process; Summary of audited financial information; and Contact information.
• Make information available to the Foundation Center and SDG, in order that the grantmaker’s goals and priorities may be published in appropriate public directories.
• Develop and follow organization policy defining timely response. Respond promptly to all requests for information. Respond to and act promptly on complaints.
• Train governing body and staff on how to respond to the media, legislators and other audiences.
• Develop a strategy for reaching out to the media, legislators and other audiences.

Grantmaking Information

• If you accept unsolicited grant proposals: Make readily available a full and clear description of grantmaking guidelines, priorities, and application process through 990 or 990-PF, grantmaker directory entries, annual report, website, brochures, newsletters and/or other communications vehicles, as appropriate.
• If you do not accept unsolicited grant proposals: Clearly indicate this in grantmaker directory entries and/or other appropriate communications vehicles, such as annual report or website.
• In addition to publicizing priority interest areas for grantmaking, provide an explicit list of grantmaking restrictions, including geographic or subject areas or programs that are not funded.
• Communicate the established steps in the grant selection process to applicants, including the specifics of when and how they can expect to be informed of a decision.
• Communicate clearly and on a timely basis with potential grantees:
  • Promptly acknowledge receipt of a proposal (e.g., email message or postcard);
  • Send a timely denial letter to those applicants that are unsuccessful and, where appropriate and to extent possible, discuss with the applicant why the proposal has been turned down;
  • Include in the grant award letter payment procedures, reporting requirements and the nature of any monitoring or evaluation that will take place;
  • Consult and seek permission as appropriate when pictures or programs will be featured in a funder publication, website or other communications tool;
  • Advise grantees, applicants and the public, within a reasonable period of time, on significant changes in grantmaking priorities or procedures; and
  • Provide an address and the name of an individual to contact for further information.

Thanks to Association of Baltimore Area Grantmakers, Connecticut Council on Philanthropy, Donors Forum, Council of Michigan Foundations, Minnesota Council on Foundations, and Northern California Grantmakers for these suggestions.

Related Resources

• Communications Network: Find resources and programs on foundation communications.
• FAQs About the Exempt Organization Public Disclosure Requirements: Fourteen questions and answers from the IRS about what every nonprofit should know about federal disclosure requirements.
• COF Recommended Principles and Practices for Effective Grantmaking
• COF Stewardship Principles for Family Foundations
• COF Stewardship Principles for Corporate Grantmakers
  
• COF Stewardship Principles for Independent Foundations
• Philanthropy Awareness Initiative
• Independent Sector Accountability Checklist
• Foundation Accountability Self-Assessment Tool and related FAQs
  
• DJB Consulting Foundation Accountability Resources
  
• Foundation Center Practice Matters: The Improving Philanthropy Project

Upcoming SDG Programs

Click here for a complete listing of SDG Programs.

Managing Reputation: Corporate Giving in the Face of Adversity
June 19, 2008, 8:30 – 10:30 a.m. (Light breakfast served)
Location: Casey Family Programs, 3878 Old Town Ave., San Diego, CA 92110

Pass or Fail? San Diego County Report Card on Children and Families
July 17, 2008, 8:30 – 10:30 a.m. (Light breakfast served)
Location: Casey Family Programs, 3878 Old Town Ave., San Diego, CA 92110

SAVE THE DATE!
San Diego Grantmakers 2008 Annual Conference
MAPPING THE IMPACT OF SAN DIEGO PHILANTHROPY
October 23, 2008

Working Group Meetings

Workforce Funders: June 11
Homelessness Working Group: June 9
Child Welfare Funders: July 22 (Strategic Planning, Half-Day Session)
San Diego Neighborhood Funders: June 6
Family Foundation Exchange: June 10

Click here for more information about all of these SDG programs. All programs are free for SDG members except where indicated. To RSVP, please call (619) 744-2180 or email programs@sdgrantmakers.org.

Today, the role of philanthropy is expanding and so are its responsibilities. This online SDGrantmakers newsletter is published by San Diego Grantmakers to help SDG members meet the challenge. Our mission is to connect, educate, develop, and inspire a diverse group of foundations and corporations to stimulate effective philanthropy in the San Diego region. For more information, visit www.SDGrantmakers.org. Copies of past editions are archived here. Contact Nancy Jamison, 619/744.2180 or nancy@SDGrantmakers.org to suggest article ideas or submit news items, or if you no longer wish to receive these mailings.