Purposeful?Intentional?Strategic Grantmaking Indiana Philanthropy Alliance Deep DiveTony Macklin, April 2015tony@tonymacklin.com or @tonymacklin1

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Philanthropy Strategy Overload5

Foundation Strategy Is…

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A framework for decision-making that is 1) focused on the external context in which the foundation works, and 2) includes a hypothesized causal connection between use of foundation resources and goal achievement

Foundation Strategy Is NOT

Big Plans

Big Money

My Pet Idea LinearRocket Science

Control

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5 Grantmaking ModelsResponsive Strategic Proactive

Initiative Collaborative

8“Comparing Grantmaking Strategies” – Council on Foundations, July 2008

You can overlap and combine them in your portfolio

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ResponsiveMeet emergency needsBuild community goodwillR&D and trend-spotting for other modelsResponsive guidelines can be “strategic”What do you say yes or no to?What organizational or proposal qualities do you favor?What are you trying to learn?

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Strategic“Defined Impact in Mind”ExamplesID gaps or opportunities to fill (small or large)Big splash grant or awardCluster and learn from similar programsUse limited $ to leverage outside resourcesAssessments, evaluations, plans that increase quality or leverage new $

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Proactive“Invite and Go Deep”ExamplesTargeted RFP with specific goalsCapacity-building cohortMulti-year operating (cashflow) or capitalization (balance sheet) grants

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Collaborative“Mutual Ends and/or Means”ExamplesGiving circle modelUnified set of success measuresUnified proposal, separate decisions and checksUnified proposal, collaborative decisionsPooled fund

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Initiative“More Than Money to Solve a Problem”Community leadership initiativesUsually multi-yearUsually more staff-intensiveDependent on trusting relationships and collective will as much as on $

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ImpactBuilding community capacity for change

GrantsScholarships and Fellowships

Innovation AwardsImpact Investing

Technical Assistance and Capacity BuildingVolunteerism

InfluenceBuilding community will for change

Fostering Connections and TrustCreating and Sharing Ideas and ResearchStrategic CommunicationsConvening and Coalition-Building

Shaping Government Practices and LawsCivic Engagement and Community Leadership

LeverageAttracting and aligning resources for change

Attracting Gov't and National Funder $Expanding Donor Base and Engagement

Grantmaker Collabs and Collective ImpactBusiness Investing and Purchasing Practices

Expanding Best Practices

Funder Toolbox – Tony Macklin, 2015

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THIS STRATEGY HAS NO BRAIN USE YOUR OWN

CAUTION

Clarity About MotivationsPersonal

• Faith/values/legacy• Perception of peers• Seat at decision table• Fear of failure, discomfort• Skills or knowledge useful

Organizational• Visibility• Insights for donors• Case statement for asset development • Grow expertise of staff or volunteers

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Clarity About EndsPeople or Place

• Issue• Population• Geographic area

System• Capacity• Quality• Leadership• Policy & Practice• Innovation

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Clarity About Roles & RelationshipsRoles

• Get out of the way• Follow• Facilitate• Partner• Lead

Relationships• Trust-building• Personality politics• Formal vs. informal authority

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Clarity About RiskTypes of Risk

• Idea • Organization Strength • Implementation and Performance • Reputation/Brand• Evidence

What’s in your ideal portfolio?19

Potential Impact

Potent

ial Risk

Low HighLow

High

Smarter about ROI

Evaluation simplified

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How much did we do? How welldid we do it?

Is anyone better off?

Quantity Quality

Effect

Effo

rt

Outcome#s Impact %s