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| Image source: forbes.com |
If you fall into this category, take heart. You’re not alone. Philanthropy is deeply personal, which explains the profusion of US nonprofits supporting all sorts of worthwhile endeavors. Because philanthropy is deeply personal, it makes sense that funders invest broadly. But what about the portion of your philanthropy that is meant to be strategic? In such cases, flying solo often doesn’t lead to achieving the desired results.
As a newcomer with more passion for an issue than in-depth knowledge, the road to success can lead to working with like-minded philanthropists and foundations from whom you can learn. So before you invest time and money developing your own expertise in an area of interest, consider collaborating with other more experienced funders and learning from them. That’s a course charted by a funders’ collaborative called Oceans 5.
Launched in early 2011, Oceans 5 is dedicated to expanding marine reserves and constraining overfishing. The Oceans 5 founders wanted to bring in a variety of partners—whether or not they had marine expertise. In fact, one of Oceans 5’s objectives—and a key part of its long-term growth strategy—is to provide a forum for funders who lack expertise in ocean conservation but who want to learn from more experienced partners, like cofounder and Oak Foundation Chair Kristian Parker. He explains it this way: “Oceans 5 was an opportunity to reach out to less experienced foundations and philanthropists to share what we have learned in our 12-plus years of grantmaking in marine conservation. We hoped that for foundations that did not intend to hire specialized staff, Oceans 5 would provide a safe, well-informed platform from which to invest their philanthropic time and money.”
The group is comprised of five partners who commit at least $1 million annually for a minimum of three years and members who commit $200,000 a year. Board meetings give program director Chuck Fox, an experienced marine conservationist, an opportunity to review investment opportunities and present recommendations. “It’s been fantastic to watch these philanthropies come together, engage in deep dialogue around projects, and become far more strategic in their giving,” says Tracy Durning, a board member and cofounder.
For Addison Fischer, a board member and cofounder of Planet Heritage Foundation, the shared knowledge around the table and collective funding is critical to the success of the group. “As a smaller foundation with no ocean-specific expertise, we would not have been able to do this nearly as effectively on our own. So, from an investment standpoint, having a shared, high-level oceans program director in place is very beneficial in making far more strategic investments overall.”
Funder collaborations that share specialized information aren’t just for newcomers to philanthropy. They work for large, established foundations as well. The Energy Foundation is a case in point.
Launched in 1991, the Energy Foundation today is the largest philanthropic funder of nonprofits working on energy efficiency and renewable energy sources. It was started as a joint initiative of three newly appointed foundation presidents, Peter Goldmark of the Rockefeller Foundation, Rebecca Rimel of the Pew Charitable Trusts, and Adele Simmons of the John D. and Catherine T. MacArthur Foundation. At the time, none of the foundations had an energy program. As Rimel recalls: “We were convinced that this could lead to a different model of grantmaking. At that time, people talked a lot about collaboration, and we thought ‘let’s just do it.’”
Recognizing their organizations’ limited knowledge in the energy arena, the three foundation presidents hired a recognized authority, Hal Harvey, to help identify a workable approach to boosting clean energy development. After months of research, Harvey and his team developed a business plan to launch the Energy Foundation as a grantmaker and advocate for change in the field. The three founding organizations collectively granted $100 million for the project over 10 years. The joint investment allowed the funders to share specialized expertise rather than pursue a similar path on their own.
A decade on, a second wave of funders, including the Hewlett Foundation, joined the collaborative—in large part persuaded by the expertise and platform that the Energy Foundation had developed. As Hewlett vice president Susan Bell explains, “If we wanted to make a difference on the issue, we would have had to staff up to do that, and the Energy Foundation allowed us not to. They served as our program staff and could navigate among existing organizations that needed funding.”
In effect, large and small foundations today can outsource all or parts of their energy programs to the Energy Foundation. Along the way, the foundation has grown in size, financial clout, and ambition. Working through grantees, it has had significant impact on promoting adoption of state and federal vehicle efficiency standards, more stringent residential and commercial building codes to reduce energy consumption, and development of renewable energy technology. In 2011 alone, the Energy Foundation made 592 grants to 347 groups, totaling $76.2 million.
Oceans 5 and the Energy Foundation are variations on a theme: collaboration is a great way for philanthropists and foundations—new and experienced—to share specialized knowledge and accomplish more together than acting separately. At a time when many of society’s problems are too big to tackle alone and with limited resources, donors can accomplish more together than apart. It’s a compelling way to jumpstart your philanthropy.
Ken Von Kohorn is an active member of the non-profit organization Big Brothers Big Sisters of America. Like this Facebook page for timely updates on philanthropy.
