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Foundations Respond to Crisis: Lasting Change?

November 29, 2021

Philanthropic and nonprofit leaders have called for changes in foundation practice for decades, asking funders to, for example, provide more flexible and unrestricted funding; streamline and simplify processes; listen to, trust, and support their grantees; and pursue racial equity and racial justice.But there had been little evidence of change until the spring of 2020, when many foundations shifted their practices as the scale of the COVID-19 crisis became clear. In a series of three reports released late last year by CEP, we found that foundations made many changes to their practices, such as providing more unrestricted support and streamlining processes. In addition, many foundations reported providing new support to lower-income, Black, or Latino communities, and to organizations created and led by people from the communities most affected by systemic inequities.Since then, CEP has collected new survey and interview data from foundation and nonprofit leaders to examine whether these changes continued into 2021 and whether they will continue in the future.

Foundations in Los Angeles: An Assessment of the Last 25 Years

March 2, 2021

Philanthropy has changed in marked ways over the last 25 years. We have seen new players, new giving vehicles and new approaches. New players came on the scene from their economic success in the tech industry, financial institutions and other growth industries. Many of them are younger, more diverse and committed to philanthropy. Many took advantage of new structures for giving, such as donor advised funds and philanthropic LLCs leading to a donor-centered philanthropy. These donors adopted new strategies that, at their core, aspire for greater impact, not merely doing good.These forces have created a crescendo that is reflected in the way philanthropy is practiced today. Early in this period, strategic philanthropy and nonprofit capacity building – elements central to the venture philanthropy movement – were the focus. In the intervening years, a number of efforts have emerged: philanthropic collaboration, public policy engagement, public philanthropic partnerships, impact investing, diversity and inclusion, and new giving models that are more flexible and nimbler. Some of these approaches have taken hold as evidenced by the emergence of related infrastructure organizations and affinity groups. In other instances, the developments are at an earlier stage, yet are gaining traction. And, there are others where it is still too early to tell. Despite these different stages, it is clear that this generation of philanthropy is marked by a focus on impact.We have seen these changes unfold here in Los Angeles. In this paper, to provide context, we begin by reflecting on the changing foundation landscape and the prospects for even more changes in the future. Then, we work through the eight strategies that have defined this generation, exploring how they have shaped the way L.A. foundations approach their work. For each strategy, we share some notable examples that bring each to life, providing a vivid portrait of the changes that are reshaping philanthropy in the region. We conclude with reflections on how this generation of impact has found expression in L.A. philanthropy and offer some thoughts on what the future may hold. 

A Generation of Impact: The Evolution of Philanthropy over the Past 25 Years

March 2, 2021

In this paper, A Generation of Impact: The Evolution of Philanthropy over the Past 25 Years, we analyze the development, at the national level, of an array of strategies that philanthropy has leveraged to create greater impact over this generation. We begin by documenting the changing landscape of philanthropy and the phenomenal growth in private giving that began in 1995. The times series data on giving and foundations (numbers, assets and giving) all show the establishment of a new plateau for giving over the last two and half decades. Of particular note is the doubling of foundation giving – from 9 percent to 18 percent – as a relative share of total private giving. In addition, the foundations created over this period account for 60 percent of all U.S. foundations, hold 36 percent of total U.S. foundation assets and account for 48 percent of total U.S. foundation giving. 

For the Community, By the Community: The We Count LA Impact Story

February 10, 2021

Participation in the census is critical to the well-being of future generations of Los Angeles County. Census data plays an integral role in influencing the allocation of millions of dollars in federal funding for vital services and programs for our communities — from schools and hospitals to housing and roads. The census also determines the number of congressional members sent to the Capitol to represent our region, making an accurate count in Los Angeles County profoundly important.In a landmark effort, California Community Foundation (CCF) convened a powerful coalition of 115+ community-based organizations (CBOs) across the region to count historically under-counted populations, coordinated and united under one region-wide campaign: We Count LA. As trusted messengers with deep relationships and connections in their respective communities, these CBOs would be the faces and voices of the census, encouraging the diverse and vulnerable communities of Los Angeles County to participate in the 2020 Census. Amid the unforeseen global and national events of 2020, this task became seemingly impossible. Yet the unifying force of community resilience pushed the We Count LA campaign to become responsive, adaptive and innovative in trying to accomplish its goals.

Foundations Respond to Crisis: Toward Equity?

December 9, 2020

The disproportionate public health and economic impacts of the COVID-19 pandemic on certain communities, along with nationwide protests against police violence and racial injustice, have intensified the calls for foundations to focus on equity and reckon with anti-Black racism in a deeper way than they had before. To what extent have staffed foundations changed their practices in 2020 in response to this push for substantial shifts in how philanthropy approaches its work?CEP surveyed and interviewed foundation leaders to find out. Foundations Respond to Crisis: Toward Equity? reveals that almost all foundations participating in CEP's study report placing new, or more, focus on supporting Black, Latino, and lower-income communities; and most foundation leaders say they are reckoning with racism and paying greater attention to racial equity in their work. However, there remains still significant room for further progress, and it remains to be seen how deep and sustained this new focus will be.

Foundations Respond to Crisis: Toward Greater Flexibility and Responsiveness?

December 1, 2020

Nonprofits and funders alike have long called on foundations to be more flexible and responsive, to provide more unrestricted funding, to reduce what they ask of grantees, and to build more trusting relationships. In 2020, these calls for change only intensified in a time of immense challenge for nonprofits and the people and communities they serve.Have foundations responded to these calls with newfound urgency? And if so, is that response merely a momentary adjustment? Or will the crises of 2020 spur substantive, long-term change in how funders approach their work?CEP surveyed and interviewed foundation leaders to find out. Foundations Respond to Crisis: Toward Greater Flexibility and Responsiveness? reveals that foundations say they are loosening grant restrictions, providing more unrestricted funding, and reducing what they ask of grantees. Many plan to continue these practices in the future, though to a lesser degree than during their pandemic response.Findings in this report are based on survey data gathered from 236 foundations — 170 of which signed the pledge hosted by the Council on Foundations to act urgently in response to COVID-19, and 66 of which had not — as well as in-depth interviews with leaders of 41 foundations that signed the pledge. All data was collected between June and August 2020.This study is the final in a series of three reports from CEP examining the extent to which staffed foundations have changed their practices in response to calls for change to meet the unprecedented challenges of 2020.

No Going Back: Policies for an Equitable and Inclusive Los Angeles

September 9, 2020

Prior to the stay-at-home public health directive, civic boosters promoted Los Angeles as a metropolis that was confronting its problems and making progress. Local and state governments enjoyed budget surpluses, unprecedented investments were committed by Angelenos to respond to homelessness, and access to health care and high school graduation rates were at historically high levels, while unemployment and crime rates were at celebrated lows. But behind this glossy view of LA, a closer look at the data would have revealed a very different reality, where decades of structural and systemic racism resulted in significant social, economic, and racial inequality. Just a few months into a global pandemic, the cracks in the broken systems have become gaping holes, widening each day. Today, the calls for systemic change are loud, consequential and urgent.Early in the response to the COVID-19 pandemic, ten foundations wisely convened a diverse group of community, civic, non-profit, labor and business leaders to identify the systemic issues emerging from the crisis and to offer up a blueprint for building a more equitable and inclusive LA. Their past philanthropic work had made it clear that Los Angeles was becoming increasingly inequitable, and they feared the acceleration of disparate impact centered on income and race. The Committee for Greater LA was formed, and for the past five months, it has steered the analytical work completed by two of LA's leading institutions, UCLA and USC, supported by a team of consultants. The report that follows reflects our discourse, analysis and discovery.

Cultural Equity and Inclusion Initiative: Final Report

April 5, 2017

In November 2015 the Los Angeles County Board of Supervisors passed a resolution directing the LA County Arts Commission to conduct a county wide conversation about ways to improve diversity, equity and inclusion in cultural organizations for all LA County residents, focusing on four key target areas: Boards of Directors, Staffing, Audience/Participants, and Programming. To this the Arts Commission added a fifth: Artists/Creators. Through this process 13 actionable recommendations emerged. These recommendations open the doors to resources and promote tools that can break down barriers of exclusion in ways that foster and promote arts and culture – as well as the benefits they provide – for all residents of LA County. This report describes the process the Arts Commission went through as well as our findings and recommendations. It may also serve as a model for how other agencies - arts or otherwise - can plan and lead other initiatives to improve cultural equity and inclusion for their residents.

Opportunity Reimagined: An Inclusive Vision for Healthy Communities

December 7, 2016

This white paper looks at the key issue areas that are essential for healthy communities to exist: health equity, economic opportunity, and education. It also recognizes that an equity agenda must be present in each of the afore mentioned areas. The paper draws on insights and knowledge shared by presenters and participants at the 2016 America's Future Summit: Reimagining Opportunity in a Changing Nation and makes recommendations for fostering healthy communities and expanding opportunity for Latinos and all Americans.

Overhead Madness: A Look at Grantmaking Policies and Practices in Funding Real Costs in California

August 25, 2015

The Real Cost Project is a joint statewide initiative of Northern California Grantmakers, Southern California Grantmakers and San Diego Grantmakers. The goal of the Real Cost Project is to increase the number of funders that provide real-cost funding and to build the skills and capacity of all those engaged in grantmaking, including foundations, corporations, individuals, and government. The critical first step of the project was to collect information and baseline data on the spectrum of current funder and sector practices that relate to real cost funding. From February to May 2015, research was conducted through qualitative methods, including an environmental scan of research and studies related to funding of overhead and one-on-one interviews with practitioners in the field statewide. Interviews were conducted with Board Members, Executive Directors, and Program Officers, representing a variety of funder types, including corporate foundations, family foundations, community foundations, giving networks, public endowments and individual donors.

Real Cost Project: Barriers to Change

January 1, 2015

The Real Cost Project is a joint statewide initiative of Northern California Grantmakers, Southern California Grantmakers and San Diego Grantmakers. The goal of the Real Cost Project is to increase the number of funders that provide real-cost funding and to build the skills and capacity of all those engaged in grantmaking, including foundations, corporations, individuals, and government. Representatives from more than 150 different foundations as well as government agencies and individual philanthropists participated in the Regional Forums. The following report reveals common themes that surfaced from these forums and reflects the issues that participants viewed as the most relevant and urgent.

A Portrait Of California 2014-2015: California Human Development Report

November 30, 2014

This report takes a dramatically different approach to assessing the state's performance. Instead of relying on traditional economic analysis, Measure of America's A Portrait of California uses the human development approach to tell us how people are doing. Three dimensions -- a long and healthy life, access to knowledge, and a decent standard of living -- are examined in detail and presented along a simple ten-point scale: the American Human Development (HD) Index. A Portrait of California brings together data, innovative analysis, and the American HD Index methodology to enable "apples-to-apples" comparisons of California's counties, major cities, 265 Census Bureau -- defined areas, women and men, and racial and ethnic groups. It provides a gauge of how different groups of Californians are doing in comparison to one another and a benchmark for tracking progress over time.