Philanthropy Front and Center-Cleveland

Cleveland Considers Annual Fees for Nonprofits

The Plain Dealer reported (November 15, 2009) that consultants hired by the City of Cleveland have proposed that nonprofit organizations pay an annual fee in lieu of property taxes in an effort to boost the city's revenue. Institutions like The Cleveland Clinic, The Cleveland Museum of Art and Case Western Reserve University would be among some of the major regional stakeholders affected by the proposal, which has been carried out in one form or another in the cities of Boston, Pittsburgh and Madison, Wisconsin.

Property taxation, or alternatively, fees for municipal services to tax-exempt organizations, is not a new concept; a 2006 report by the Chronicle of Philanthropy stated that property-tax exemption in 23 of the 30 largest U.S. cities (by population size) was costing those cities $1.5 billion annually. 

Earlier this year Minnesota legislators amended their state law regarding charitable property-tax exemptions, implementing a 6-point system for determining eligibility for property-tax exemption status. The bill, along with the 6 criteria, can be read here.

What are your thoughts on this issue? Add your comments below.

The George Gund Foundation Seeks Fellowship Candidates

The George Gund Foundation Fellowship provides an opportunity for promising professionals to work inside the Foundation, a philanthropic organization that plays a vital role in supporting the civic life of Greater Cleveland and in various national policy deliberations that impact our community. The fellowship is a two-year, full-time commitment beginning in Summer 2010, requiring residence in Northeast Ohio during this period.

To be considered for the fellowship, each candidate must submit a cover letter, a detailed resume, two letters of recommendation and a short essay discussing why the fellowship opportunity is of interest. These materials are due no later than January 4, 2010. A fellow will be selected in mid-April.

For complete information on the fellowship, click here [PDF].

(This post is taken from the October 27, 2009 newsletter of the George Gund Foundation.)

Listen! Brad Whitehead Discusses Philanthropy's Role in Economic Competitiveness

Brad Whitehead discusses economic development grantmaking and shares information about Cleveland's Fund For Our Economic Future, where Mr. Whitehead serves as president. A philanthropic collaboration of more than 70 foundations and agencies, the Fund has taken on activities aimed at increasing economic competitiveness across a 16-county area. Mr. Whitehead provides insights from the Northeast Ohio experience that may be useful to other philanthropic communities that may be grappling with how to leverage finite resources in response to significantly altered economic landscapes. Listen>>

Find other Foundation Center podcasts here. You can also subscribe to Foundation Center podcasts on iTunes or get the RSS feed here.

News Roundup: Research and Science Education, Team NEO, COSE Arts, Cleveland Carbon Fund

Representative Marcia L. Fudge named vice-chair of the Research and Science Education subcommittee.  This subcommittee of the House Science and Technology Committee oversees all programs at the National Science Foundation and the White House Office of Science and Technology Policy. Representative Fudge said:

“We have a very unique opportunity to elevate science once again. We have a White House and a Congress committed to affording scientists a platform to develop new innovation and technology for a more sustainable world.”

Team NEO, grantee of the Fund for Our Economic Future, recruited 10 new companies to Northeast Ohio in 2008 (Plain Dealer, 2/3/09).  Payroll at the new companies is projected to be $30 million within 3 years.

COSE Arts Business and Innovation Awards.The Council of Smaller Enterprises (COSE) is now accepting nominations for the 2nd Annual Arts Business and Innovation Awards. Nominations will be accepted through March 2, 2009.Winners and finalists will be recognized in four categories:  Individual Artist, Arts Business, Arts and Culture Community Champion, and Young Arts Entrepreneur. The awards will be presented at the Arts Business and Innovation Awards ceremony on April 23, 2009 at The Cleveland Play House.  Learn more at COSE.

Cleveland Carbon Fund launches.  As the first community-based, open-access carbon reduction fund in the United States, the Cleveland Carbon Fund invests in local community projects that reduce greenhouse gas emissions and spark economic development in Cleveland. The Fund provides an easy, highly transparent option for anyone wishing to play a role in reducing carbon emissions. By investing in the Cleveland Carbon Fund, donors can be assured their worthy contributions are making sustainable, positive change in local Cleveland neighborhoods.

Madoff Meltdown and Northeast Ohio

An article in today's Crain's Cleveland Business (2/5/09) lists area investors who have been affected by the Madoff scandal.  Among them are the following foundations:

• Irving I Stone Foundation
• Sapirstein-Stone-Weiss Foundation

Live from How Funders are Responding to the Economic Crisis

Ohio Grantmakers Forum is convening a moderated panel discussion about the Cleveland funding climate in the current economy. Here's what I am hearing:

Mchael Benz, president and CEO, United Way of Greater Cleveland: We are still in the middle of our campaign. I believe we will be down. Even with the continuing generosity of our donors, there's no way to buck what's going on in the economy.

Barry Doggett, vice president for public and community affairs, Eaton Corporation: Our fourth quarter profits over last year were down 38%. Business continues to deteriorate globally due to soft markets. Eaton's giving is based on a percentage of pre-tax income. I am trying to convince management to hold the line on our level of giving, but it's likely that we'll come in lower. Most of my corporate colleagues are looking at lower numbers for 2009.

Robert Eckardt, senior vice president for programs and evaluation, The Cleveland Foundation: All funds managed by The Cleveland Foundation have been impacted. Overall, our portfolio is down 25%, to $1.7 billion. Becasue of the way we budget for grantmaking, using rolling averages, the impact this year will not be as signifiicant as it will be in the future. This year will be flat. Next year will be down as we average in "bad" quarters.

Joseph Gaunter, director, Cuyahoga County Department of Employment and Family Services: More than $200 million goes out into the community from County funds. The County has obligations (like food stamps) and elective initiatives (like early childhood). We are forced right now to figure out the balance between the two with existing and projected resources. We saw a net increase of 1,000 people each month, September - December, needing public benefits. We are hopeful that the stimulus package will help. We have begun cost-saving by cutting administrative costs.

Robert Jaquay, associate director, The George Gund Foundation: We've taken a double digit hit to our portfolio, close to 30%. We are budgeting a minimum 6% payout this year and intend to be more open-minded around operating support. We are looking to our grantees to create efficiencies where they can through collaboration and other efforts.

--Cindy Bailie

 

Ohio Grantmakers Forum: Annual Nonprofit Luncheon and Economic Downturn Town Hall Meeting

(This post is from Beth Gaglione, Director of Development, University Settlement. It's her first for Philanthropy Front and Center Cleveland.)

I attended Ohio Grantmakers Forum's luncheon program and town hall meeting (10/29/08) to hear about the state of philanthropy from the people who are making decisions about current and future giving. Just two things keynote speaker Perla Ni, Great Nonprofits, said during her presentation really resonated with me. Waning are the days of expensive printed annual reports and special events that take up valuable staff time and result in next to nothing. As nonprofit administrators, we must get smarter.

Maybe more beneficial than the luncheon address was the after-lunch discussion that gave nonprofit administrators a chance to talk to each other about how they are managing now and planning for next year, in light of economic challenges that continue to present themselves. What I heard was a lot of what I’ve heard before like, collaborate more; tighten your belts; and stick closely to mission. Now is the time to stick with a game plan that has proven itself and that works. As fundraisers, instead of looking for new foundation donors to fill in the gaps that will inevitably be left by those who tighten their purse strings, we must look at this time as an opportunity to develop better relationships with the people whose attention we already have.      

But I also heard discussion about the possibility of tailoring new service delivery methods for “new clients” who might be overcome with pride to access them in the traditional way. Attempting to do this at a time of such critical need for so many felt like an affront to those of us trying to do less with more in the most efficient and creative ways possible, providing as much as we can to as many as we can. Instead of creating new service delivery methods that meet the needs of the new client, why not make our proven methods better for all clients? I cannot imagine that many foundations would be interested in testing a new method for getting the same service to client “a” that already reaches client “b” just fine. We all need to adjust a bit in tough times. 

At University Settlement, we are planning the best ways to serve our clients in these tough times. We are talking a great deal about self-sufficiency and what it will take to survive, not just as an agency, but also what it will take for our clients to survive.

Listen to This! The Economic Downturn, Entrepreneurship, and Foundation Giving for Economic Development

Deborah Hoover, president of the Burton D. Morgan Foundation discusses the foundation's mission to support the free enterprise system through philanthropic investments in entrepreneurship and shares information about how this type of giving is contributing to a renewed economy in Northeast Ohio, while pointing to support of entrepreneurship as one way that foundations might participate directly in an economic turnaround. Listen!

Community Resources for Nonprofits in Ohio

Below please find bookmarked links to resources, organizations and technical assistance providers for residents and nonprofits in Northeast Ohio and statewide:

• Business Resources

• Community Development Programs

• Computers and Technology Resources

• Consultants and Training Providers

• Economic Development Programs

• Individual Artists

• Leadership and Governance Resources

• Nonprofit Academic Programs

• Nonprofit Startups in Ohio

• Personal Assistance for Individuals

• Service Organizations for Nonprofits

• Social Enterprise Organizations 

• Students (financial assistance)

• Volunteer Services Organizations

For more categories, please explore Ohio Nonprofit Resources, an online web directory sponsored by the Ohio Association of Nonprofits.

Listen to This! Deena Epstein Shares Insights into Arts and Culture Grantmaking at the George Gund Foundation

In this edition of the Philanthropy Chat Cleveland series of podcasts, Deena Epstein, senior program officer for arts at the George Gund Foundation, discusses current priorities and practices in arts grantmaking including tips for first-time applicants, trends that nonprofits should be aware of, and how funding decisions get made at the board level. Listen!