Philanthropy Front and Center - Washington, DC

Listen! Jamie Merisotis Discusses Lumina Foundation's Investments in Higher Education

Jamie P. Merisotis, president and CEO of the Lumina Foundation for Education, discusses the foundation's strategic, outcomes-based approach to expanding college access and success, particularly among low-income, minority, and other under-represented populations. Listen!

June is Funding for Education Month at the Foundation Center. Check out our Focus on Funding for Education page for more podcasts, news, and resources.

June is Funding for Education Month at the Foundation Center. Check out our Focus on Funding for Education page for more podcasts, news, and resources.

Would You Like Your College Loan Forgiven?

Debt does not appear to deter graduates from seeking and securing jobs in the nonprofit sector, according to a 2005 report by the Building Movement Project. Although that’s good news for the sector, the impact of education debt is a source of financial hardship for many nonprofit employees, especially since nonprofit workers earn 21.5% less than private sector workers and 10.9% less than public sector employees.

Yet there is hope for debt-laden nonprofit workers. There are two major types of publicly-financed debt relief programs currently benefiting nonprofit workers. One is the education reward provided by
Americorps, for which only Americorps participants are eligible.

Another debt relief program is the Public Service Loan Forgiveness Program [PDF]. This program was created by the College Cost Reduction and Access Act of 2007 (CCRAA) and is intended to encourage individuals to enter and continue in full-time public service employment by forgiving the remaining balance of their eligible Federal loans.

Many nonprofit workers can take advantage of this opportunity, so here’s what you can do to qualify:

1. Make 120 monthly payments on your loan after October 1, 2007.
2. Be employed by a “public service organization” at the time that loan forgiveness is requested and granted, as well as during the period you make the required 120 monthly payments.
3. Ensure your loan is not in default at the time of the request.

To learn more about the Public Service Loan Forgiveness Program, contact the Department of Education at 1-800-4FED-AID (1-800-433-3243).

The best defense against costly student loans, however, is a good offense of scholarship awards and grant money. To help you avoid education debt, the Foundation Center has Foundation Grants to Individuals Online, a database to quickly search through detailed descriptions of more than 6,000 foundations and other grantmakers that offer funding to students, artists, researchers, and other individual grantseekers. 

You can also register for our free class, Finding Foundation Support for Your Education, which is available as an online webinar or as an in-person class.

(Thanks to Asia Hadley, Training Coordinator, Foundation Center-Atlanta, for sharing this post.)

Yet there is hope for debt-laden nonprofit workers. There are two major types of publicly-financed debt relief programs currently benefiting nonprofit workers. One is the education reward provided by
Americorps, for which only Americorps participants are eligible.

Another debt relief program is the Public Service Loan Forgiveness Program [PDF]. This program was created by the College Cost Reduction and Access Act of 2007 (CCRAA) and is intended to encourage individuals to enter and continue in full-time public service employment by forgiving the remaining balance of their eligible Federal loans.

Many nonprofit workers can take advantage of this opportunity, so here’s what you can do to qualify:

1. Make 120 monthly payments on your loan after October 1, 2007.
2. Be employed by a “public service organization” at the time that loan forgiveness is requested and granted, as well as during the period you make the required 120 monthly payments.
3. Ensure your loan is not in default at the time of the request.

To learn more about the Public Service Loan Forgiveness Program, contact the Department of Education at 1-800-4FED-AID (1-800-433-3243).

The best defense against costly student loans, however, is a good offense of scholarship awards and grant money. To help you avoid education debt, the Foundation Center has Foundation Grants to Individuals Online, a database to quickly search through detailed descriptions of more than 6,000 foundations and other grantmakers that offer funding to students, artists, researchers, and other individual grantseekers. 

You can also register for our free class, Finding Foundation Support for Your Education, which is available as an online webinar or as an in-person class.

(Thanks to Asia Hadley, Training Coordinator, Foundation Center-Atlanta, for sharing this post.)

Listen! John Beahm Discusses Jenzabar Foundation's Support for Student Humanitarian Work

John Beahm, executive director of the Jenzabar Foundation, discusses the foundation's investments in education aimed at fostering a culture of service and educating and inspiring future generations to create a better world. Listen!

June is Funding for Education Month at the Foundation Center. Check out our Focus on Funding for Education page for more podcasts, news, and resources.

June is Funding for Education Month at the Foundation Center. Check out our Focus on Funding for Education page for more podcasts, news, and resources.

Next Week at the Foundation Center (June 29 - July 3)

Webinar:
Foundation Funding Trends in Higher Education
Monday, June 29, 3:00-4:00 pm

Classes:
Introduction to Corporate Giving
including a special presentation by Gifts in Kind International
Monday, June 29, 10:00 am-12:30 pm

Your Board and Fundraising: An Introductory Class
Held at 441 4th Street, NW, 11th floor
Tuesday, June 30, 10:00 am-12:00 pm

Before You Seek a Grant: A Checklist for New Nonprofits
Wednesday, July 1, 11:00 am-12:30 pm

These classes are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

 Indicates Focus on Funding for Education Programs

Library:
Use Foundation Directory Online Professional, borrow books, and get reference help free of charge with no appointment necessary. See our website for directions.

Hours:
Monday/Wednesday/Thursday/Friday
10:00 am-5:00 pm
Tuesday
10:00 am-8:00 pm

New Study Examines Funding for Women and Girls and the Importance of Women's Funds

Accelerating Change for Women and Girls: The Role of Women's Funds, a study published jointly by the Foundation Center and the Women's Funding Network, examines institutional giving to projects targeting women and girls and explores the growing influence of women's funds in the philanthropic landscape.

According to the report, which draws on the Foundation Center's grants data, fiscal summaries, and survey research, the rate of foundation giving for women and girls has grown faster than foundation giving in all areas. The role of women’s funds has also gained in significance in recent years, both in terms of actual grantmaking and in terms of bringing attention to “…the catalytic power of investing in women and in women-led solutions” (Highlights, p. 2).

"Women are a rising force in philanthropy," said Christine Grumm, president and CEO of the Women's Funding Network. "This report demonstrates the power women-led solutions have in creating sustainable change in communities."

In conjunction with the release of the new study, Josie Atienza, assistant director of research at the Foundation Center, and Grumm presented report highlights to a group of more than 60 grantmakers and nonprofit organizations. Other speakers were Bradford K. Smith, president of the Foundation Center; Larry McGill, senior vice president for research; Ana Oliveira, president and chief executive officer of the New York Women's Foundation; and Merble Reagon, executive director of the Women’s Center for Education and Career Advancement.

For a free executive summary of Accelerating Change for Women and Girls: The Role of Women's Funds and information on ordering the full report, visit the Gain Knowledge area of the Foundation Center's web site.

From The Answer Desk: How Much Should My Nonprofit Have in Operating Reserves?

A: Keeping cash in reserve for a "rainy day" may seem like a luxury during an economic downturn, but maintaining a nest egg might ensure your organization's long-term financial health.

The Nonprofits Assistance Fund, a Minneapolis-based nonprofit whose mission is to build financially healthy nonprofits that foster community vitality, provides this explanation of how an operating reserve works:

[A]n unrestricted fund balance set aside to stabilize a nonprofit's finances by providing a “rainy day savings account” for unexpected cash flow shortages, expense or losses. These might be caused by delayed payments, unexpected building repairs, or economic conditions.

Reserves should not be used to make up for income shortfalls, unless the organization has a plan to replace the income or reduce expenses in the near-term future. In short, reserves should be used to solve timing problems, not deficit problems.

A commonly used reserve goal is 3-6 months' expenses. At the high end, reserves should not exceed the amount of two years' budget. At the low end, reserves should be enough to cover at least one full payroll.

However, each nonprofit should set its own reserve goal based on its cash flow and expenses. Organizations that have contracts or fees with regular and reliable payments don't need as much in cash reserves as organizations that rely on periodic grants, fundraising events or campaigns, or seasonal activities.

To be a viable operating reserve, there should be a board agreement and policy about how reserve funds can be used: When they can be used, who is authorized to use them, and how this is reported to the board.

To learn more about this topic, selected resources below may be helpful.

Web Resources

Nonprofit Operating Reserves Initiative Workgroup, NCCS: Maintaining Nonprofit Operating Reserves: An Organizational Imperative for Nonprofit Financial Stability [PDF]
This white paper contends that many nonprofits have inadequate operating reserves, argues why a reserve is vital for financial stability, and offers tips on how to start creating one.

Nonprofits Assistance Fund: The Yin and Yang of Operating Reserves: What You Need to Know [PDF]
Executive director Kate Barr advises on how large a nonprofit's operating reserve should be and how to fund it. Includes a table that aligns an organization's income characteristics with a recommended amount of reserves.

iKnow: Criteria for Nonprofits' Operating Reserves
This brief article by Thomas J. Raffa defines operating reserves and presents circumstances in which a nonprofit should plan for a larger reserve.

Nonprofits Assistance Fund: The Cash Reserves Myth
Kate Barr argues that a 3-month minimum of operating reserve may not suit all nonprofits. Instead, each nonprofit needs to analyze its cash flow, then create a workable and customized policy.

Nonprofit Times: Nonprofits and Squirrels
Richard F. Larkin, CPA, discusses how to decide on the size of your nonprofit's operating reserve.

Books & Articles

• Cash flow Strategies: Innovation in Nonprofit Financial Management by Richard Linzer and Anna Linzer (2008)
• "Improving Cash Flow Management in Challenging Times: A Primer" by Murray Dropkin, Nonprofit Quarterly vol. 10 (Summer 2003) p. 34-41.
• "Make Working Capital Work" by Susan Kenny Stevens, Foundation News & Commentary vol. 41 (July-August 2000) p. 42-5.

Do you have questions? Ask Us!

(This post is from Sandy Pon, virtual library/learning center specialist at the Foundation Center)

Listen! Bruno Manno Discusses Annie E. Casey Foundation's Investments in Education

Bruno Manno, Ph.D., senior associate at the Annie E. Casey Foundation, discusses the key role that schools play in advancing the foundation's efforts to improve outcomes for families and children. As the lead in the foundation's education portfolio, Dr. Manno shares information about the foundation's experiences investing in programs that give low-income parents the opportunity to send their children to high quality schools and to get services that strengthen their community-school connections. Listen!

To learn more about foundation support for education, join our free webinar on June 29 at 3:00 pm, Foundation Funding Trends in Higher Education.

5 Tips to Fund Your Education

Do you or someone you know need funding for your education? Whether you desire to earn a bachelor's, master's, or a doctorate degree, money is available to help you achieve your educational goals.

Kimberly Sellars-Bates, president/CEO of KSTB Enterprises, LLC, presented a scintillating class recently at the Foundation Center-Atlanta on how to search and maximize your chances of receiving funds for your education.

Below are some tips she shared, plus a few of my own, to help you achieve your educational funding goals.

#1: Treat your scholarship search like a job. Although funding is available for your education, it will take consistent, persistent effort to find funding opportunities that fit your needs. Ms. Sellars-Bates recommends applying for a minimum of two scholarships per week, beginning as early as possible. Before you can apply for these scholarships, you first have to find the opportunities.

#2: Research funding opportunities. The research takes time, effort and energy. Here are some tools to expedite the process:

• Our web site for individual grantseekers has worksheets to help you focus and organize your research.
• Foundation Grants for Individuals Online is our searchable online database of more than 6,500 grantmakers that fund individual grantseekers, including those looking for financial aid. You can use it for free at the Foundation Center-Washington, DC and its Cooperating Collections. Or you can subscribe to it for $19.95 per month.
• For recent books and articles on finding support for your education, search for "Scholarships, fellowships and loans" or "Travel and study abroad" in our library catalog, Catalog of Nonprofit Literature.
• Ms. Sellars-Bates also recommends these web sites: Scholarships.com, College-Scholarships.com and Brokescholar.com.

#3: Organize your information. It is important to be highly organized as you search and apply for funding. All funders have their own application processes and submission deadlines. Being organized can help you to avoid rushing to submit applications at the last minute. Ms. Sellars-Bates recommends creating a scholarship binder. Here is a binder checklist to get you started:

• Extended Cover D-Ring View Binder, 3" wide
• Index Dividers (Jan-Dec)
• Extra-wide Insertable Dividers
• Sheet Protectors
• Post-It Notes or Index Cards
• 8½" x 11" White Paper, at least 20 pound weight
• Envelopes, Legal Size
• First Class Postage Stamps
• Large (9" x 12") White Envelopes (Ms. Sellars-Bates prefers white, but manila will do.)

#4: Know what makes you stand out. There are grants for students with many different characteristics. Do you have physical or learning disabilities? Are you or a parent in the military? Are you a single parent? Are you involved in a religious community? Are you affiliated with any organizations?

Explore your hidden treasures to learn more about your unique attributes. Scholarships are given for a variety of reasons. Through time and effort you can find scholarships that fit your circumstances and life experiences. Use the worksheets under Tip #2 to guide your exploration.

#5: Select individuals to write letters of recommendation. In order for people to be willing to write glowingly about you, you have to be of service and demonstrate attributes worthy of a letter. How have you demonstrated your organizational skills, tenacity, persistence, determination or other characteristics others could write about?

The person who writes a recommendation for you should be someone how knows you relatively well. That doesn't mean that only long-time associates qualify. It does mean that the recommender has had enough interaction with you to give a genuine assessment of your skills and achievements. -- Kimberly Sellars-Bates

Just as the grantseeking process is competitive, so is earning scholarship awards. If there is ever a time to demonstrate focused, consistent effort, searching for scholarships for your education is that time. Apply for any scholarship that you believe is a good fit, even if you don't believe that you stand a chance. You will never know unless you try, so get started today. 

If you have had success with your own scholarship search, please share your tips and ideas with us by posting a comment to this blog.

(Thanks to Asia M. Hadley, Training Coordinator, Foundation Center-Atlanta, for sharing this post.)

Kimberly Sellars-Bates, president/CEO of KSTB Enterprises, LLC, presented a scintillating class recently at the Foundation Center-Atlanta on how to search and maximize your chances of receiving funds for your education.

Below are some tips she shared, plus a few of my own, to help you achieve your educational funding goals.

#1: Treat your scholarship search like a job. Although funding is available for your education, it will take consistent, persistent effort to find funding opportunities that fit your needs. Ms. Sellars-Bates recommends applying for a minimum of two scholarships per week, beginning as early as possible. Before you can apply for these scholarships, you first have to find the opportunities.

#2: Research funding opportunities. The research takes time, effort and energy. Here are some tools to expedite the process:

• Our web site for individual grantseekers has worksheets to help you focus and organize your research.
• Foundation Grants for Individuals Online is our searchable online database of more than 6,500 grantmakers that fund individual grantseekers, including those looking for financial aid. You can use it for free at the Foundation Center-Washington, DC and its Cooperating Collections. Or you can subscribe to it for $19.95 per month.
• For recent books and articles on finding support for your education, search for "Scholarships, fellowships and loans" or "Travel and study abroad" in our library catalog, Catalog of Nonprofit Literature.
• Ms. Sellars-Bates also recommends these web sites: Scholarships.com, College-Scholarships.com and Brokescholar.com.

#3: Organize your information. It is important to be highly organized as you search and apply for funding. All funders have their own application processes and submission deadlines. Being organized can help you to avoid rushing to submit applications at the last minute. Ms. Sellars-Bates recommends creating a scholarship binder. Here is a binder checklist to get you started:

• Extended Cover D-Ring View Binder, 3" wide
• Index Dividers (Jan-Dec)
• Extra-wide Insertable Dividers
• Sheet Protectors
• Post-It Notes or Index Cards
• 8½" x 11" White Paper, at least 20 pound weight
• Envelopes, Legal Size
• First Class Postage Stamps
• Large (9" x 12") White Envelopes (Ms. Sellars-Bates prefers white, but manila will do.)

#4: Know what makes you stand out. There are grants for students with many different characteristics. Do you have physical or learning disabilities? Are you or a parent in the military? Are you a single parent? Are you involved in a religious community? Are you affiliated with any organizations?

Explore your hidden treasures to learn more about your unique attributes. Scholarships are given for a variety of reasons. Through time and effort you can find scholarships that fit your circumstances and life experiences. Use the worksheets under Tip #2 to guide your exploration.

#5: Select individuals to write letters of recommendation. In order for people to be willing to write glowingly about you, you have to be of service and demonstrate attributes worthy of a letter. How have you demonstrated your organizational skills, tenacity, persistence, determination or other characteristics others could write about?

The person who writes a recommendation for you should be someone how knows you relatively well. That doesn't mean that only long-time associates qualify. It does mean that the recommender has had enough interaction with you to give a genuine assessment of your skills and achievements. -- Kimberly Sellars-Bates

Just as the grantseeking process is competitive, so is earning scholarship awards. If there is ever a time to demonstrate focused, consistent effort, searching for scholarships for your education is that time. Apply for any scholarship that you believe is a good fit, even if you don't believe that you stand a chance. You will never know unless you try, so get started today. 

If you have had success with your own scholarship search, please share your tips and ideas with us by posting a comment to this blog.

(Thanks to Asia M. Hadley, Training Coordinator, Foundation Center-Atlanta, for sharing this post.)

Next Week at the Foundation Center (June 22-26)

Course:
Grantseeker Training Institute
June 22-26, 2009, 9:00 am-4:00 pm daily
cost: $795 per person for five full days

Class:
Prospect Research Basics: Researching Individual Donors
Thursday, June 25, 1:30-2:45 pm

These classes are free to attend, but registration is required. For programs offered over the next three months, please see our Events Calendar.

Library:
Use Foundation Directory Online Professional, borrow books, and get reference help free of charge with no appointment necessary. See our website for directions.

Hours:
Monday/Wednesday/Thursday/Friday
10:00 am-5:00 pm
Tuesday
10:00 am-8:00 pm

From the Answer Desk: Where Can I Find Case Studies of Nonprofit Collaborations, Mergers, and Other Strategic Alliances?

A: Reviewing strategic alliance case studies is a good way to analyze the factors leading to the successful (or failed) coming together of two or more organizations. You may want to review our other post, "What do I need to know about collaboration and other kinds of strategic alliances?" for basic information about and definitions of various types of alliances into which nonprofits enter.

The following case studies are available online:

Nonprofit Strategic Alliances Case Studies: The Role of Trust [pdf]
Three types of strategic alliances are analyzed in this publication authored by John A. Yankey, Ph.D.; Carol K. Willen, Ph.D.; Barbara Wester Jacobus, M.N.O.; Amy McClellan, M.N.O., issued in 2005 by the Mandel Center for Nonprofit Organizations at Case Western Reserve University in Cleveland, Ohio: 
    1. Merger (AIDS Task Force of Greater Cleveland)
    2. Consolidation (ideastream)
    3. Joint venture (Otis Moss, Jr. - University Hospitals Medical Center)

Nonprofit Strategic Alliances Case Studies: Lessons from the Trenches [pdf]
Six case studies are presented in this publication authored by John A. Yankey, Ph.D.; Barbara Wester Jacobus, M.N.O.; and Amy McClellan, M.N.O., issued in 2001 by the Mandel Center for Nonprofit Organizations at Case Western Reserve University in Cleveland, Ohio:
    1. The Alliance for Nonprofit Management (merger)
    2. Applewood Centers (merger)
    3. Catholic Charities Services Corporation (merger)
    4. HelpSource (merger)
    5. Metropolitan Alliance of Community Centers (joint venture)
    6. Ottawa County United Way (administrative and financial operations consolidation)

Additional resources from the Mandel Center are available here.

Coming to Terms: A Case Study of Collaboration Challenges [pdf]
This paper is from a session presented at the 35th annual Association of Research on Nonprofit and Voluntary Action (ARNOVA) conference, November 15-16, 2006. Authors Julie Pietroburgo and Richard Bush, Southern Illinois University, Edwardsville, Illinois, examine a failed attempt at collaboration between two hospice organizations and analyze why.

Managing Stakeholders Through the Merger Process: The Case of Utah Symphony & Opera [pdf]
This paper is from a session presented at the 34th annual ARNOVA conference, November 17-19, 2005. Authors Nancy Winemiller Basinger, University of Utah, Salt Lake City, Utah, and Jessica Romine Peterson, Make a Wish Foundation of Utah, examine the merger of the Utah Symphony and the Utah Opera from the stakeholder perspective. Stakeholders are identified as "clients/patrons, volunteers, board of directors, funding sources, staff, management, etc."

Bridging the Organizational Divide: The Making of a Nonprofit Merger
Issued in November 2001 and commissioned by Neighborhood Reinvestment Corporation, Boston, Massachusetts, author John Emmeus Davis, Burlington Associates in Community Development, Burlington, Vermont, examines the merger of French Hill Neighborhood Housing Services and the Greater Nashua Housing and Development Foundation with an eye on answering the question, "What makes a good process?"

The following case studies are available at Foundation Center and other libraries:

"Getting to Yes...or No: Nonprofit Decision Making and Interorganizational Restructuring." Nonprofit Management & Leadership, vol. 19 (Winter 2008,) p. 221-41.
This exploratory study looks at the ways in which nonprofit organizations make restructuring decisions, such as whether to pursue a merger. The author presents data collected through four case studies, and makes recommendations for future research. 

"Small Organization Mergers in Arts and Humanities." Nonprofit Management & Leadership, vol. 15 (Fall 2004,) p. 95-115.
A case study of the merger of a county arts council with a humanities commission, outlining the steps of the process, and initial reactions and outcomes. With bibliographical references.

"The Urge to Merge: A Multiple-case Study." Nonprofit Management & Leadership, vol. 13 (Winter 2002,) p. 169-86.
A comparative study of three mergers of nonprofits serving an urban community in Michigan. One involved the combination of five former nonprofits in the mental health and social service field; the second merged two hospitals; the third combined three mental health agencies.

Do you have questions? Ask Us!

Katie Artzner, Online Librarian, Foundation Center