SD Grantmakers Update

Today, the role of philanthropy is expanding and so are its responsibilities. This online SDGrantmakers Update is published by San Diego Grantmakers to help you 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.

"I don't believe in dynastic wealth"--Warren Buffett, commenting on his recent decision to give 85% of his fortune ($44 billion) to charity, with most going to the Gates Foundation.

Welcome New Member:
BetterWorld Together Foundation

Philanthropy in the News: Buffett and Gates

It seems as though 2006 has been the year of philanthropy in the news, and the latest headlines surround the new partnership between Warren Buffett and Bill and Melinda Gates. In case you missed the details, click here for the Foundation Center report of Buffett's announcement. Of course, this news has spurred a wide range of reporting and opinions. We're including a sampling below, with some interesting perspectives for you to consider.

• Click here for a chart putting Buffett's gifts in perspective, with each other and relative to the Ford Foundation endowment and annual United Nations spending.
• Click here for a Seattle Post-Intelligencer article inspired by the gifts, about the "new breed of local philanthropists" who give expertise, time, and activism as well as money, and who expect results. The article highlights SDG's counterpart, Philanthropy Northwest.
• Click here for Wharton professor Ian C. MacMillan's take on questions "as to how $60 billion can be effectively managed, what impact the donation will have on other donors, and whether the Gates Foundation has come up with the best approach to solving systemic health problems in developing countries."
• Click here for Fortune's interview with Buffett about his changing perspective on philanthropy.
• Click here for a Seattle Post-Intelligencer article that asks: Is Gates charity too huge to be a model?
• Click here for a Chronicle of Philanthropy article in which Mark Kramer points out that big gifts don't in and of themselves create social change: "We would like to think that our contributions make a difference — and large contributions make a large difference — but there is surprisingly little evidence that this is so."
• Click here for Allan Sloan's analysis of the financial acumen the design of Buffett's gift exhibits: getting a "free ride" on the Gates infrastructure while "minimizing the gift's downward pressure on Berkshire's stock price."

In other philanthropic news, the July 10 cover story for Newsweek is the "Giving Back Awards," recognizing Americans who devote their time to helping others. The story also focuses on celebrities active in philanthropy, "Philanthropy's All Star Team."

Tell us what you think of the media's focus on philanthropy: what effect do you think it has or will have? How does the focus on celebrity philanthropists affect our sector and our world? Email your comments to SDG.

Member News

YOUR ORGANIZATION COULD BE FEATURED HERE! Don't forget to let SDG know what's new with you, from grantmaking to awards, events, and more. We want to share the good news about all of our members. To submit an item for the newsletter, email nancy@sdgrantmakers.org.

The Change a Life Foundation held a scholarship reception in June, honoring 40 high school seniors with $391,000 for college. The recipients included 12 students from San Diego. 

Patricia Sinay of Holland America and her husband Art Schmidt welcomed their new baby on June 19: Solimar Emilie Sinay Schmidt. Congratulations!

On June 26, International Community Foundation released a report on cross-border health challenges and solutions in the San Diego-Baja California region. Click here for the report.

The James Irvine Foundation launched the Artistic Innovation Fund to help arts institutions increase innovation in artistic programming, through interaction with the public and organizational management. The first round of seven grants from the fund includes $700,000 to the La Jolla Playhouse to create production and audience development models for new theater work.

On June 2, The Rancho Santa Fe Women's Fund at the Rancho Santa Fe Foundation awarded its 2006 Pooled Fund Grants, totalling $165,000, to the Oceanside Boys & Girls Club, CSU San Marcos-Center Artes, CCHAT Center, Community Resource Center, Family Literacy Foundation, Jewish Family Services, Kiwanis of Oceanside Foundation, and Vision of Children.

The San Diego Chargers Community Foundation announced that it is providing more than $400,00 in grants, scholarships, and laptop computers to San Diego schools (chosen for their attention to health and fitness) and students (chosen for service to their school and community).

The San Diego County Bar Foundation was featured in a June 11 San Diego Union Tribune article regarding the Foundation's efforts to help provide legal services for the homeless.

The San Diego Foundation for Change has selected 20 organizations to become grantees this year, in the areas of economic & social justice, civil rights & peace, environmental sustainability, and human rights & equality.

The San Diego Human Dignity Foundation held their annual gala and 10th Anniversary Celebration "South Pacific: Summer on Deck" on June 24 aboard the U.S.S. Midway. The gala raised funds to further SDHDF's mission to improve the quality of life within San Diego's lesbian, gay, bisexual and transgender (LGBT) community by promoting responsible philanthropy to enact positive social change.

Also on June 24, San Diego Social Venture Partners held their annual meeting and summer party at the Preakness Estate in Rancho Santa Fe.

The Westreich Foundation has funded the position of Director of the Center for Applied Nonprofit Research at the University of San Diego’s School of Leadership & Education Sciences. The Center is part of the Nonprofit Leadership & Management Program. Dr. Linda Kato was named to the position this month.

Several SDG members have made the Foundation Center's list of Top 50 Foundations by total giving in 2004: The California Endowment (#19) and Wells Fargo Foundation (#46). TCE also made the list of Top 50 by Assets, 2004 (#12), along with SDG members James Irvine Foundation (#31), and the California Wellness Foundation (#46).

Calling All Giving Circles

New Ventures in Philanthropy, a project of the Forum of Regional Associations of Grantmakers, is conducting a second round national scan to identify and document the nature and extent of giving circles. This research will focus specifically on "second generation" circles - circles that have been around for several years, have demonstrated their sustainability, and have changed and evolved to address the needs of their members and the community. This research will also examine the impact that participating in a giving circle has on donors and will focus on hosts and hosting relationships with giving circles.

If you know of a Giving Circle - in any stage of operation - please forward the name and contact information - especially email, if available - of a circle representative, and if possible a brief description of the group, to Scott Simpson via email at ssimpson@givingforum.org. Please include the words "Giving Circle Study" in the subject line of the email. Or you may contact Scott via telephone at (202) 467-1127. Thank you for your assistance.

Grants Directory Now Online

Did you know at least 14 SDG members have funded Second Chance? Which SDG members have funded Auntie Helen's Fluff 'n Fold? The answers to these questions and more can be found in the SDG Members-Only Grants Directory. It's now fully functional!  This members-only feature is accessible through the SDG website--remember, you will need to LOG IN to view the directory (contact Nancy for login information if needed).  The general public does not have access to this information.  The Grants Directory is available to you as another resource to improve your grantmaking in San Diego. Use it to connect with other funders about organizations you may be considering as grantees, or to find new potential grantees, or to see which funders have similar missions to yours. Over 30 SDG members are currently included in this rich and useful source of members-only information.  If your organization has not yet submitted your data, please let us know. The goal is 100% participation of SDG members!

SDG Wish List

SDG is looking for a donated small computer (we have limited desk space) to upgrade a rather ancient one that we are currently using. Our desired specs:  1 - 2.8 GHz, RAM 256 MB or more. Does anyone have an unused computer sitting around that meets this criteria by any chance?  Let us know--Thank you!

Resources

The Foundation Center has resources for grantmakers! Click here for the “For Grantmakers” section. Use the 990 Finder to look up IRS returns of applicants and grantees, or update your Foundation Center listing online. Browse FAQs for Grantmakers and many online publications, or submit your own question!

GrantCraft's latest guide, Program-Related Investing: Skills and Strategies for New PRI Funders, is a great resource for grant makers looking to get their feet wet with PRIs. Click here to download a copy of the guide.

A new Funder Guide Series is now available to help donors learn more about the potential of microenterprise development in the U.S. Funded by the Charles Stewart Mott Foundation, the guides were created by FIELD, the microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination. Click here for more information about the free guides and a new microenterprise funders group.

Charitable Reform Update

The Council on Foundations Charitable Reform Resource Center offers the latest on charitable reform efforts. The COF Legislative Network provides up-to-date coverage of legislative action affecting the philanthropic sector. Click here to sign up for the Network and receive emails about what's going on in Washington and how it affects your work.

The Chronicle of Philanthropy reports that on June 29 , the Senate Finance Committee passed a series of measures designed to encourage greater accountability among donors and nonprofit groups. Among the key elements: Donors who try to inflate the value of their charitable gifts would face tough new penalties, and small charities would be required to provide the Internal Revenue Service with far more information than they do now. Click here for the full article. This legislation appears to be Senator Grassley's attempt to jumpstart the stalled reform effort, which has faced opposition from the philanthropic sector as well as from the House of Representatives. Nonprofits are now concerned that incentive provisions designed to increase giving will be left out entirely.

SCG Seeks President

Southern California Grantmakers (SCG) is SDG's counterpart in the Los Angeles region: a nonprofit regional membership association of grantmakers. SCG is currently conducting a search for their new President. If you know any candidates for this position, please have them forward their resume/CV and cover letter to: Morris & Berger, 500 North Brand Boulevard, Suite 2150, Glendale, CA 91203-1923.  Fax or Email: (818) 507-4770, mb@morrisberger.com.

Investment Returns Down

From COF FN&C: Endowments of U.S. foundations earned an average annual return of 8.1 percent in 2005, compared to 11.4 percent in 2004 and 17.8 percent in 2003, according to a report from the Commonfund Institute. The Commonfund Benchmarks Study: Foundations and Operating Charities 2006 found that the average return for all foundations ranged from 7.4 percent to 8.4 percent, with benchmark leaders reporting an annual return of 15.5 percent. The average reported return assumption for the next three to five years was 8.0 percent. The survey also found that more foundations are rebalancing their portfolios, from 78 percent in 2004 to 87 percent in 2005. “Foundation investment performance was better than expected given the challenging, low-growth environment last year,” said John S. Griswold Jr., executive director of the institute. The report was based on a survey of 334 independent/private, community and operating foundations whose fiscal years ended December 31, 2005.

Giving USA 2006

Giving USA 2006 is now available, and shows that Americans gave estimated total contributions of $260.28 billion during 2005, 6.1 percent (2.7 percent adjusted for inflation) more than in the previous year. Giving USA is published by the Giving USA Foundation and researched and written by the Center on Philanthropy at Indiana University. Click here for ordering information. Highlights include:

• Individual giving, which is always the largest single source of donations, rose by 6.4 percent (2.9 percent adjusted for inflation) to an estimated $199.07 billion. It accounted for 76.5 percent of giving in 2005.
• Foundation grantmaking, which is reported by the Foundation Center, rose 5.6 percent (2.1 percent adjusted for inflation) to $30 billion. Foundation giving represented 11.5 percent of estimated charitable giving in 2005.
• Corporate donations grew by an unprecedented 22.5 percent (18.5 percent adjusted for inflation), to an estimated $13.77 billion, or 5.3 percent of the total estimate for charitable gifts.
• Despite fears of donor fatigue due to multiple natural disasters, giving for disaster relief rose to an unprecedented $7.37 billion in 2005.

Donor Intent

As a result of a bill introduced in the Michigan legislature that would effectively force foundations incorporated in the state to make at least half of their grants to Michigan charities, donor intent has become a hot topic in the philanthropic world. The Council on Foundations, along with SDG's counterpart in Michigan, the Council of Michigan Foundations, has announced opposition to the bill, because "Although some donors legally restrict the scope of grantmaking when incorporating their foundations, others create foundations with broad charitable purposes to provide their boards with more flexibility to meet unanticipated needs and challenges. The council is collaborating with its members in Michigan and the Council of Michigan Foundations to inform legislators how the Supervision of Trustees for Charitable Purposes Act (HB 6153) and another proposal could adversely affect the state's philanthropic sector." COF and CMF are concerned about legislative encroachments on foundation independence and flexibility. CMF intends to commission a white paper for policymakers on Donor Intent, and has been working closely with the Michigan legislators who sponsored the bill. Click here and here for more information.

Upcoming SDG Programs

N2: Networking at Northern Trust
A FEW 4th WEDNESDAYS
August 23, 12 - 1:30pm
September 27, 4 - 5:30pm Special Member Panel: Grants Review & Decisions
October 25, 12 - 1:30pm
Location: Northern Trust, 4370 La Jolla Village Drive, 10th Floor, San Diego

Network with and learn from your SDG member colleagues! September 27 will have a special focus on reviewing grant applications with Tim McCarthy from the McCarthy Family Foundation, Ruth Riedel from the Alliance Healthcare Foundation and Cindy Olmstead, Chair of the San Diego Women's Foundation Grants Committee.

Keeping San Diego’s Children and Teens HEALTHY
Laura Spiegel, First 5; Sandra McBrayer, The Children’s Initiative; Roseann Myers, The Commission for Children, Youth and Families
July 13, 2006, 8:30am – 10:30am
Location: UCSD Preuss School
Breakfast

Funder Discussion on Nonprofit Leadership Development
July 24, 2006, 12:00-2:00pm
Location: Fieldstone, 5465 Morehouse Drive, Suite 250, San Diego
Lunch

Funding Education: Round 2
Dr. Carl Cohn, Superintendent San Diego City Schools; Dr. Paula Cordeiro, Dean of the School of Leadership and Education Sciences, USD; Richard Thome, Assistant Superintendent, San Diego County Schools
August 3, 2006, 8:30-10:30am
Location: San Diego Foundation, 1420 Kettner Blvd, San Diego
Breakfast

Viva La Volunteer: Corporate Employee Engagement
September 7, 2006, 8:30-10:30am
Location:  AMN Healthcare, 12400 High Bluff Drive, San Diego
Sponsors:  Sempra, Washington Mutual
Breakfast hosted by AMN Healthcare

An Exploration: SDG Family Foundation Peer Learning Network
September 13, 4-6pm
Location: Home of Valerie Jacobs and Norm Hapke

San Diego Grantmakers Annual Conference: 
Grantmakers as Change Makers
October 4, 2006, 8am-3pm
Location: NTC Promenade, 2875 Dewey Road, San Diego
$100 for SDG members, $150 non-member grantmakers
Breakfast and Lunch

Distinguished Speaker Series: Mayor Jerry Sanders
A Philanthropic Lens for San Diego’s Future
November 1, 2006, 11:30am-1:00pm
Location: Aboard Holland America Lines ms Zaandam (in port), 1140 N. Harbor Drive, San Diego
Lunch
Fee

All programs are free for SDG members except where indicated. To RSVP, please call (619) 744-2180 or email programs@sdgrantmakers.org.

Education Commission of the States and Grantmakers for Education: 2006 ECS National Forum on Education Policy
July 11, 2006
Minneapolis, MN

Attend a special pre-conference forum for grantmakers entitled "A Decade of Standards-Based Education: What Should Be Next?" View the entire program on ECS Web site. The registration fee for the special grantmakers sessions and reception on Tuesday is $50. ECS is also offering grantmakers a significantly discounted conference registration rate of $250. For more information, please contact Jennifer Kramer-Wine at 303.299.3672.

Stanford Center for Social Innovation
Executive Program for Philanthropy Leaders
July 30-August 5, 2006

This program focuses on leadership development for high-level foundation executives with a special emphasis on vision, power and trust, governance, and collaboration. Click here for more information.

Alliance for Nonprofit Management Annual Conference: "Collaborative Leadership"
August 2-5, 2006
Los Angeles, CA

Click here for more details about the conference, which is focused on organizational effectiveness for nonprofits.

Northwest Area Foundation's Grassroots & Groundwork
"What Communities Are Doing to Get Out and Stay Out of Poverty"
September 16-19, 2006
St. Paul, MN

This national conference will explore strategies to reduce poverty and rebuild communities. Click here for more information.

Independent Sector 2006 Annual Conference
Many Voices, Shared Purpose:  Working Together to Improve Lives
October 22-24, 2006
Minneapolis/St. Paul, MN

Click here for more information or to register.

Grantmakers in Aging 2006 Annual Conference
October 25-27, 2006
Milwaukee, WI

Click here for details about the conference.

Association of Small Foundations 2006 National Conference
October 26-28, 2006
New Orleans, LA

Click here for details about the conference.

American Association of Grant Professionals Annual Conference
November 8-11, 2006
Nashville, TN

Click here for more information.

Philanthropy Roundtable's Annual Meeting:
“Raising the Bar: Achieving Excellence in Giving”
November 9-11, 2006
Charleston, SC

Click here for details.

Grantmakers in the Arts 2006 Conference
November 12-15, 2006
Boston, MA

Click here for details about the conference.

Feel free to comment, suggest article ideas, or submit news items to nancy@SDGrantmakers.org -- We're always happy to hear from you. This online update is a service to San Diego Grantmakers members. Copies of past editions are archived here: News You Can Use.

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