Philanthropy Front and Center-Atlanta

Free Shipping in July on New Study on Women's Funds

This July, the Foundation Center is offering free shipping on our new report, Accelerating Change for Women and Girls: The Role of Women's Funds, when you order online.

Philanthropy by and for women has increased dramatically since the 1970s, calling attention to critical, previously-hidden issues such as human trafficking and domestic violence. Published in partnership with the Women's Funding Network, this report examines patterns of giving by women's funds and their role in spearheading social change.

Read highlights of the study's findings at our web site and visit our Marketplace to purchase the full report ($19.95). Buy now >>

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

Obama Administration Launches Serve.gov

Last month, President Obama announced United We Serve, a nationwide service initiative meant to help meet the growing social needs of the nation. This initiative is intended not only to expand the base of volunteers for existing organizations but also to encourage individual citizens to develop their own service projects in conjunction with friends, family, and other members of the community.

United We Serve will include an initial 81 days of service, from June 22 to September 11, which will be commemorated as a National Day of Service and Remembrance. To help facilitate this service initiative, the administration has a created a new web site, Serve.gov, to function as a comprehensive clearinghouse of volunteer opportunities in the U.S. Managed by the Corporation for National and Community Service, Serve.gov gives individual citizens the ability to find local service opportunities by keyword or location or to start their own projects using the helpful toolkits provided at the site.

Organizations seeking volunteers can also register their projects and sign up volunteers using the site.

Looking for more resources to help in creating or managing a volunteer program? The following organizations and web sites offer information and/or assistance for nonprofits using volunteers:

- VolunteerMatch
- Corporation for National & Community Service
- Idealist.org
- Hands On Atlanta

For more books, articles, and other resources related to volunteering and volunteer management, try searching the Catalog of Nonprofit Literature (CNL), the Center's bibliographic database, for the subjects "Voluntarism" or "Voluntarism--management". A listing of recommended resources can also be found in our resource list on voluntarism.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

NEA Survey of Public Participation in the Arts

Periodically, the National Endowment for the Arts has looked at arts participation in the United States in partnership with the U. S. Census Bureau.  It has just published its latest survey, Arts Participation 2008: Highlights from a National Survey—a statistical snapshot of engagement in the U.S. with the arts by frequency and activity type.

The survey is not designed to determine why arts participation increases or decreases from survey to survey—but rather to look at how arts participation is affected by social, cultural, or economic patterns or by policies and programs in the arts arena.  The 2008 survey results present an especially challenging question: how did the economic downturn affect participation in the arts?

When the survey was conducted in May 2008, the recession, although not officially declared, had already made travel and other costs a problem for many Americans.  Although the survey cannot prove that weak consumer spending had a direct impact on participation in the arts, the survey results do show that adult attendance at arts events declined for almost every art form in 2008 as compared to the last survey in 2002.

The report presents charts and tables representing the results of the survey and reports some key findings, including:

1 in 3 adults attended an arts museum or an arts performance in the 12-month survey period.
Smaller percentages of adults attended performing arts events than in previous years.
Long-term trends suggest fundamental shifts in the relationship between age and arts attendance.

For more information about these and other key findings of the survey, read the report.

Does your experience with arts participation reflect these findings? Let us know.

Kayron Bearden, Reference Librarian, Foundation Center-Atlanta

Next Week at the Foundation Center-Atlanta: July 6-10

Evening hours next week! We will be open until 8:00pm on Tuesday, July 7.

We invite you to our classes this upcoming week:

Tuesday, July 7, 5:15-6:45pm
Grantseeking Basics

Tuesday, July 7, 7:00-8:00pm
Introduction to Foundation Directory Online

Wednesday, July 8, 10:00-11:30am
Before You Seek a Grant: A Checklist for New Nonprofits

Thursday, July 9, 10:00-11:15am
How to Approach a Foundation

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

Can't visit the Foundation Center this week? Check out our webinars.

Use our library:

• Search Foundation Directory Online Professional and other research tools for free


• Borrow books about nonprofit management and fundraising


• Ask our staff of experts for information assistance

We're open to the public Monday through Friday, 10am-5pm (first Tuesdays of each month, 10am-8pm). No appointment is necessary. See our web site for directions and parking information.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

Have You Heard About the L3C Nonprofit / For-profit Hybrid?

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

While reading one of the many newsletters I get in my inbox, a recent BusinessWeek article, "Turning Nonprofits into For-Profits", caught my eye. (Thanks to Council on Foundations' news digest for this news item.)

It was about low-profit limited liability companies, or L3Cs, a form of social enterprise that puts mission first and profits second. "The L3C is a new form of limited liability company which combines the best features of a for-profit LLC with the socially beneficial aspects of a nonprofit. It is the for-profit with a nonprofit soul," according to Americans for Community Development, which is working with legislators across the country to enact the legal framework necessary to permit the formation of the L3C.

Nonprofit Law Blog provides a good overview and definition:

The low-profit, limited liability company, or L3C, is a hybrid of a nonprofit and for-profit organization. More specifically, it is a new type of limited liability company (LLC) designed to attract private investments and philanthropic capital in ventures designed to provide a social benefit. Unlike a standard LLC, the L3C has an explicit primary charitable mission and only a secondary profit concern. But unlike a charity, the L3C is free to distribute the profits, after taxes, to owners or investors.
A principal advantage of the L3C is its qualification as a program related investment (PRI), an investment with a socially beneficial purpose that is consistent with and furthers a foundation’s mission. Because foundations can only directly invest in for-profit ventures qualified as PRIs, many foundations refrain from investing in for-profit ventures due to the uncertainty of whether they would qualify as PRIs or use costly time and resources to acquire a Private Letter Ruling from the IRS to verify that the venture is a valid PRI. An L3C’s operating agreement minimizes this problem by specifically outlining its respective PRI-qualified purpose in being formed, making it easier for foundations to identify social-purpose businesses as well as helping to ensure that their tax-exemptions remain secure.

 Americans for Community Development further argues the advantages of an L3C:

[The L3C] also facilitates tranched investing with the PRI usually taking first risk position thereby taking much of the risk out of the venture for other investors in lower tranches. The rest of the investment levels or tranches become more attractive to commercial investment by improving the credit rating and thereby lowering the cost of capital. It is particularly favorable to equity investment. Because the foundations take the highest risk at little or no return, it essentially turns the venture capital model on its head and gives many social enterprises a low enough cost of capital that they are able to be self sustainable.

First and foremost, the L3C is a for-profit organization, so it would have to pay taxes on its profits, and it can't receive traditional grants or tax-deductible charitable contributions, like 501(c)(3) public charities can. The L3C has not been legalized in every state yet, but it's now considered a legal structure in Vermont, Michigan, Utah, and Wyoming, and legislation is pending in several other states. In fact, the Council on Foundations supports federal legislation [PDF] that would encourage foundations to make program-related investments (PRIs) to L3Cs through an expedited review process by the IRS.

Regulations for limited-liability companies vary from state to state, but L3Cs formed in these states can be used in other states. Would-be L3Cs should choose the state with an L3C designation whose LLC law is most compatible with their home state's LLC law, according to Robert Lang, CEO of the Mary Elizabeth & Gordon B. Mannweiler Foundation and creator of the L3C concept.

There are 53 L3Cs in Vermont and a handful in other states so far. Some examples of L3C entities that have been created are:
* Monkton Community Coffeehouse, a multi-use community gathering place in an historical building
* Cool Pass, a carbon offsetter program that assists low-income homeowners with obtaining EnergyStar efficient furnaces, hot water heaters, insulation and other home upgrades
* Faithful Travelers, a travel service that matches faith-based customers with service-based excursions

Other examples are in carbon trading, alternative energy, food bank processing, social services, social benefit consulting and media, arts funding, job creation programs, economic development, housing for low income and aging populations, medical facilities, environmental remediation, and medical research.

As more L3Cs form, will foundations start giving more PRIs and fewer grants since they can get the money back, plus some interest? Charity regulators have asked the same question, along with many others. It's probably too early to tell if grantmakers will shift their giving strategies. However, you can see early responses to the charity regulators' questions [PDF], prepared by attorneys working with Mr. Lang.

To learn more about the L3C, please consult the resources below:
The L3C: Low-Profit Limited Liability Company Research Brief | Community Wealth Ventures [PDF]
Includes definition; candidates for L3C designation; current activities; implications for foundations; additional resources. Published July 2008.

Low-Profit Limited Liability Company | Vermont Secretary of State Corporations Division
One state's legal treatment of L3Cs. Vermont was the first state to adopt L3Cs in April 2008.

L3C Connect Group | LinkedIn
Intended to provide a vehicle for all stakeholders in this arena to share best practices, make professional connections and to share ideas. Requires registration as a LinkedIn user.

What do you think about this new form of social enterprise? Tell us.

For-profit Ventures for Nonprofit Organizations

I came across a really interesting article the other day about how some nonprofit organizations are setting up for-profit subsidiaries to help generate additional revenue and to further their mission.

You can find the article, "Safety Line", in the June 2009 issue of Fundraising Success Magazine.  The author gives several examples of nonprofits that have set up for-profit subsidiaries, including Open Hand, based here in Atlanta.  This local organization delivers meals and nutritional information to low-income people with chronic diseases.  In 2005, they began a for-profit arm, Good Measure Meals, in response to a demand for nutritious meals for people who could afford to pay for them.  Although it wasn’t initially set up as a fundraising venture, Good Measure Meals contributed $430,000 to Open Hand in 2008.

The article stresses the importance of mission fit—aligning the work of the for-profit subsidiary with the mission of the nonprofit.  This will help at tax time when the nonprofit doesn’t have to pay unrelated business income tax (UBIT) on the revenue that comes from the for-profit venture. 

Another key point discussed is that starting a revenue-generating venture may not be right for every organization.  Along with profits can come risks, but those risks can be lowered through proper planning.  A nonprofit considering starting a for-profit subsidiary should consider 3 important characteristics to make sure doing so is right for them:

• Organizational assets: brand or reputation, skills and expertise
• Market opportunity: potential customer base
• Organizational capacity: able to handle checks, process invoices, manage customer service; appropriate managerial talent in place

For additional information on earned income, look in our Catalog of Nonprofit Literature using the search terms “Nonprofit organizations-entrepreneurship” or “Social entrepreneurship”.

Has your nonprofit set up a for-profit subsidiary?  Share your story with us.

Kayron Bearden, Reference Library, Foundation Center-Atlanta

 

Upcoming Special Classes and Events at the Foundation Center-Atlanta

Coming up in July and August, we have a number of special classes and events scheduled:

What You Need to Know About Fiscal Sponsorship
Presented in collaboration with Pro Bono Partnership of Atlanta
Wednesday, July 22, 2:30-4:00pm
What is a fiscal sponsor? Does your organization need one? Have you been asked to become a fiscal sponsor? Attend this workshop to learn about:

• The pros and cons of having a fiscal sponsor
• The risks and benefits to the fiscal sponsor
• How to avoid potential problems by entering into a fiscal sponsorship agreement

Presenter: Rachel Epps Spears, Executive Director, Pro Bono Partnership of Atlanta

Click here to register.

Following our Finding Foundation Support for Your Education class on July 23, join us for an interactive discussion around the search and application process for scholarships to fund post-secondary education. In this session you will:

• Learn about programs supported by Coca-Cola and other scholarship providers.
• Learn how to be a successful college/scholarship applicant.
• Discuss how a weakened economy affects college funding.

Scholarship programs provide upwards of $2 billion a year in support of students realizing the dreams of higher education. It is never too early to begin planning for life after graduation.

Presenter: Ryan Rodriguez, Program Coordinator, Coca-Cola Scholars Foundation

Click here to register.

Following our Your Board and Fundraising class on July 29, join us for an informative presentation on the legal responsibilities of nonprofit board members. In this workshop, you will learn:

• What are the roles, responsibilities and proper activities of the board of directors of a nonprofit organization?
• What are the potential liabilities of board members?
• What role should the board play in the day-to-day operations of the organization?
• What legal protections exist for board members?

This workshop will address these and other topics relating to the legal and fiduciary obligations of a board of directors.

Presenter: Lori Gelchion, Associate at Rogers & Hardin LLP

Click here to register.

Financial Fitness: Good Financial Policies for Nonprofits
Presented in collaboration with Pro Bono Partnership of Atlanta
Wednesday, August 5, 2:30-4:00pm
Nonprofits need to have good financial policies and procedures in place in order to satisfy funders, comply with IRS requirements, and avoid misuse of funds or even embezzlement. Attendees at this workshop will learn best practices for:

• Financial recordkeeping and reporting
• Investment policies
• Internal controls

Presenter: Wendy Stewart, Senior Vice President/Senior Client Manager at Bank of America

Click here to register.

Following our Finding Foundation Support for Your Education class on August 12, join us for an information and interactive presentation on the scholarships offered through The Community Foundation for Greater Atlanta.

The Community Foundation currently manages more than a dozen scholarship funds on behalf of donors, including the Dreams2 Scholarship Fund, the George and Pearl Strickland Scholarship, and the Nancy Penn Lyons Scholarship Fund. In this workshop, you will learn about the various scholarship programs managed by the foundation, as well as who is eligible and how to apply.

Presenter: Kristina Morris, Program Associate, The Community Foundation for Greater Atlanta

Click here to register.

Revise, Revamp, Rejuvenate: Ways to Survive the Recession
Thursday, August 27, 10:00-11:30am
Join us for a lively, interactive discussion about the options facing nonprofit organizations in these tough economic times. We will explore the advantages and disadvantages of collaborating with other nonprofits and different types of outside organizations, and provide information and tools to gauge when it makes sense (or not) to engage in partnerships, strategic alliances, and mergers.

Presenter: Terri Theisen, Theisen Consulting LLC

Click here to register.

Networking in Today's Economy
Presented in collaboration with Culture Connect
Friday, August 28, 1:00-3:00pm
When looking for a job, the phrase "it's not what you know, it's who you know" is especially true. Networking is key to growing your circle of business contacts and this experience can be both intimidating and overwhelming. In this workshop, you will learn:

• How to network effectively to find a job or expand your professional horizons
• How to make a great first impression and build relationships that last

Knowing how to network properly will afford you with opportunities to develop knowledge and skills, allow you to boost your reputation and gather professional leads, and provide a direct source for information and support within your career field!

Presenter: Chi Chi Okezie, Owner/Producer, SIMPLEnetworking

Click here to register.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

Following the Money Trail: The Impact of the Economic Stimulus on Education in Georgia

If you’re wondering about the impact the economic stimulus will have on education funding in the state of Georgia, join us for this special education month program on Tuesday, June 30th at 2:30pm. Lauren Veasey, program officer, Southern Education Foundation will discuss the new federal stimulus law, the American Recovery and Reinvestment Act of 2009 (ARRA). This law offers Southern states an historic opportunity to improve public education from pre-school through college - especially for low-income students. ARRA allocates over $100 billion directly to the 15 states of the South for creating jobs and spurring economic renewal during the next two years, and more than one-third of these funds will go towards education. Reserve your seat and join the discussion.

For more information and resources for coping with the economic crisis, see our Focus on the Economic Crisis web page.

Also at our web page, 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!

Asia M. Hadley, Training Coordinator, Foundation Center-Atlanta

Next Week at the Foundation Center-Atlanta: June 29 - July 3

The library will be closed Friday, July 3, in observance of the Fourth of July holiday.

We invite you to our classes this upcoming week:

Indicates a special Funding for Education Month program.

Tuesday, June 30, 10:00-11:15am
Introduction to Fundraising Planning

Tuesday, June 30, 11:30am-12:30pm
Introduction to Corporate Giving

Tuesday, June 30, 2:30-4:00pm
Following the Money Trail: The Impact of the Economic Stimulus on Education in Georgia

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

Can't visit the Foundation Center this week? Check out our webinars.

Use our library:

• Search Foundation Directory Online Professional and other research tools for free


• Borrow books about nonprofit management and fundraising


• Ask our staff of experts for information assistance

We're open to the public Monday through Friday, 10am-5pm (first Tuesdays of each month, 10am-8pm). No appointment is necessary. See our web site for directions and parking information.

Stephen Sherman, Reference Librarian, Foundation Center-Atlanta

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.