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“Good governance starts with a philosophical commitment to embrace ethical practices at the highest levels of an organization . . . and to build a culture supporting those practices.” William White In This Issue
Guiding Principles: Should We Leave It to Max & Chuck? Max Baucus (D-MT) is the Chairman of the Senate Finance Committee. Chuck Grassley (R-IA) is the Ranking Member on the committee. The Finance Committee has in recent years focused on some egregious examples of illegal, unethical and inappropriate behavior by charitable organizations (including both public charities and foundations). The committee leadership made it clear after hearings in 2004 that they were prepared to legislate reform in the nonprofit sector but were willing to receive recommendations on needed change. A panel was formed to study the need and make specific recommendations. Led by Independent Sector, that effort resulted in a comprehensive report by the Panel on the Nonprofit Sector. In 2005, the Council on Foundations revised and adopted its Statement of Ethical Principles. Council Members are required to subscribe to these principles. The Independent Sector Panel’s Advisory Committee on Self-Regulation has prepared draft Principles for Effective Practice that have been widely circulated for comment. Last year, the Congress passed the most significant revision to charitable organization regulation in many years in the form of provisions contained within the broader Pension Protection Act of 2006. Only a relatively few members of San Diego Grantmakers belong to Independent Sector or the Council on Foundations. This is similar to other geographic regions where best practices are generally communicated by the regional associations of grantmakers. As of 2007, at least 20 of 32 such regional organizations have adopted guiding principles. Some of these seek voluntary adherence and others are required for membership. Recognizing a need to improve governance and ethical focus across the country, the Forum of Regional Associations of Grantmakers has launched an Effectiveness and Accountability initiative including a challenge grant process. Northern California Grantmakers completed such an initiative late last year. San Diego Grantmakers has received a matching grant and will launch a local effort on May 17 to develop guidelines, principles and practices appropriate for our region (see below for more on this event). Some observers believe that the chances of near term additional federal legislation impacting the nonprofit sector are relatively low given the Pension Protection Act measures last year and election cycle realities. Regardless of such probabilities, there is the independent potential for a serious legal or ethical lapse to occur in our region. While Guiding Principles will not necessarily prevent any (or certainly all) such possible transgressions, the absence of self-regulation in our community could certainly exacerbate damage to charitable activity in San Diego. It would be naïve to think that “it can’t happen here” or that all of our members already have clear policies regarding ethical behavior. There have already been episodes involving local charitable organizations that have harmed both institutional reputations and, by association, our nonprofit sector. If we assume that our individual member organizations are somehow exempt from the need to document and adhere to principles of conduct, we demonstrate hubris if not arrogance. San Diego Grantmakers has an opportunity to make an important contribution in this area through collegial action beginning this month. I don't think we should wait for Max and Chuck to legislate this for us. Tim McCarthy This month's Third Thursday Breakfast Series event kicks off our Guiding Principles effort:
May 17, 2007 Facilitator: Martin Taylor, Vice President, Institute for Global Ethics (see below for more on the Institute) There is a lot of talk about ethics these days – for corporations, nonprofits, and foundations. Grantmakers of every type are called upon to be accountable and transparent. But what does that really mean and how should we do it? Join us for the launch of the SDG Guiding Principles Project. SDG Chair Gregory Hall comments on the need for SDG to undertake this work: "As funders, we all expect our grantees and community partners to meet high standards of ethics, oversight, and accountability. We must expect the same of ourselves. The Guiding Principles initiative is an important process for the members of San Diego Grantmakers to go through together so that we can arrive on a common set of principles and then hold ourselves accountable to those principles." This launch will generate ideas for our SDG Guiding Principles Task Force (see below for more information on this working group). Thank You to our Sponsors: To RSVP, call 619/744.2180 or email programs@sdgrantmakers.org. The Institute for Global Ethics Our partner in launching the SDG Guiding Principles effort is the Institute for Global Ethics (IGE). Founded in 1990 by Rushworth Kidder, IGE is an independent, nonsectarian, nonpartisan, 501(c)(3) nonprofit organization dedicated to promoting ethical action in a global context. IGE strives to explore the global common ground of values (centering on compassion, fairness, honesty, respect, and responsibility), elevate awareness of ethics, and provide practical tools for making ethical decisions. The Institute is committed to helping organizations and individuals put values into practice, finding frameworks that tackle tough issues in a way that provides real answers. Martin Taylor, IGE Vice President, will facilitate the May 17 session — helping us explore and identify how to proactively turn funder values into action. Click here for an article by IGE's founder and president, Rushworth Kidder, asking "Could Your Code of Ethics Make You the Next Enron?" Why Do We Need Guiding Principles? Grantmaker Accountability Horror Stories Don't let this happen to you! Just recently, The Joy McCann Foundation (endowed by former Tampa Bay Buccaneers owner Hugh Culverhouse Sr.) has landed in the press for ethical controversies. We all remember the controversy over Jack Abramoff's foundation and nonprofit involvement ("Foundation's Funds Diverted from Mission" was just one of those headlines). The following media headlines all relate to problems that can occur if grantmakers don't pay enough attention to issues of ethics and accountability: Commentaries on Grantmaker Accountability Click here for COF President Steve Gunderson's speech to the National Association of State Charity Officials: "A Delicate Balance: The Growth of Philanthropy and Its Regulation." Gunderson predicts that 21st century global philanthropy will grow in size, service...and also scrutiny, by policymakers and the media. He also discusses how and why COF publicly placed the J. Paul Getty Trust on probation in late 2005 for ethics violations. Click here for a Foundation News & Commentary piece by James A. Joseph on "Redefining Accountability." Joseph includes several questions to consider as we explore philanthropic accountability: Do foundations and corporate giving programs sufficiently respect the autonomy and integrity of the relationship with grantmakers? Do we pay as much attention to how we give as we do to what and to whom we give? What Next? Following Up on the Launch The May 17 event is only the beginning! Please add to this effort by supporting the following programs: SDG Guiding Principles Project Task Force Meeting This task force will be chaired by Tim McCarthy of the McCarthy Family Foundation. Please email Nancy if you would like to be a part of this working group! Accountability in Action: A Self-Assessment Workshop Facilitator: David Biemesderfer, President, DJB Consulting Services This event is our July Third Thursday Breakfast program, and will follow up on our May discussion of guiding principles. How do we put them into action? Have you ever really tested your organization's level of accountability? This interactive workshop will show you how to assess your practices and measure your accountability quotient. Designed for both foundations and corporations, this workshop will provide tools for grantmakers to use to assess how well they are engaging in generally recommended good practices for being accountable to the public. Thank You to Our Sponsor: Washington Mutual Family Foundation Exchange (FFE): Operating Foundations Homelessness Working Group Third Thursdays Breakfast Series (Nosh, Network, Knowledge) May 17 Topic: SDG Guiding Principles Project Launch Click here for more information about the breakfast series. Child Welfare Funders SDG Guiding Principles Project Task Force Meeting Let's Talk! A Corporate Roundtable Discussion Reception for Diana Aviv, President and CEO of Independent Sector 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. This online update is a service to San Diego Grantmakers members. Copies
of past editions are archived here: News
You Can Use. For questions, comments, or to submit news items, contact Nancy Jamison, 619/744.2180 or FUNDRAISING STIPULATION: SDG was developed with grantmakers (staff and trustees) in mind so they could talk candidly with their peers about the challenges they face. With that in mind, we wish to impress upon members and potential members that fundraising or marketing is not allowed at any of SDG’s programs, meetings, or other events. |
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