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New DVG Staff to Serve County Members DVG is delighted to welcome Lisa Bennett Stokes as the latest addition to our staff. Lisa joins us in the new part-time position of County Membership Manager, which was developed as a result of our strategic plan in order to encourage greater regional participation and strengthen our support to members located outside of Philadelphia. Lisa comes to DVG with a solid background in philanthropy and the regional nonprofit sector. In her most recent role with Judith L. Bardes and Associates, Lisa’s work focused on philanthropy management, assisting with the administration of five family foundations. Previously, she was responsible for event planning and coordination for The Pennsylvania Environmental Council and The Philadelphia Mural Arts Program. As a volunteer, Lisa is currently board President of SquashSmarts, an after-school enrichment program for youth from North and West Philadelphia which she helped found in 2000, and serves on the boards of Cliveden of the National Trust and the Merion Cricket Club. “I couldn’t ask for a better person than Lisa Stokes to work with our suburban members,” said DVG’s executive director Nancy Lanham. “Her experience in philanthropy, knowledge of DVG, active participation in community issues and familiarity with the suburban area makes her an excellent fit for this position. I look forward to working with Lisa and introducing her to our members.” As County Membership Manager, Lisa will be spending much of her time “on the road” meeting with members in outlying areas of DVG’s region in order to better understand their needs and determine how we can increase the accessibility of relevant services and programming to those members. _______________ ###
National $6 Million Fund Backs Local Efforts To Organize Communities Around Public Education Reform Funders including Ford, Bill & Melinda Gates and William Penn Foundations are supporting grassroots groups in Philadelphia and three other U.S. localities through a new fund for education organizing. Communities for Public Education Reform (CPER), a coalition of grassroots education organizing groups backed by forty local and national funders, launched on May 17, 2007 in Philadelphia and in three other U.S. localities. CPER seeks to improve education for all students by giving community residents a stronger voice in shaping the policies that affect their public schools. CPER is contributing $450,000 to the Philadelphia area groups – members of the Philadelphia Cross-City Campaign for Urban School Reform – to work to unite community leaders, parents and students to help shape school reform efforts in the greater Philadelphia metropolitan area. The effort represents an important new philanthropic investment in community-based public education reform. Chicago, Denver and New Jersey are also part of the $6 million CPER fund for education organizing, which provides direct support to grassroots and allied education groups, plus opportunities for all four localities to share ideas and strategies. “Being chosen as one of the sites for this important national venture validates the exceptional work being done on behalf of education reform in the Philadelphia area,” said Andi Perez, executive director of Youth United for Change, one of the funded organizing groups. The Southeastern Pennsylvania Communities Public Education Reform groups include: Philadelphia ACORN, the Eastern Pennsylvania Organizing Project, Philadelphia Student Union, Youth United for Change, Good Schools Pennsylvania, Education Law Center, Philadelphia Public School Notebook, and Research for Action. “This collaborative of education organizing groups has the potential to affect significant change in the policy environment and, ultimately, the educational experience of disadvantaged students across the region,” said Candace Bell, program officer for the William Penn Foundation, which supports CPER locally. “All students deserve the opportunity to receive a high-quality education,” said Kelly James, program officer for the Bill & Melinda Gates Foundation. “By empowering local residents to connect with grassroots efforts and fully engage in the reform process, communities truly can achieve meaningful, lasting change.” Specifically, the southeastern Pennsylvania coalition will target school funding and high school reform policies. The ultimate goal of organizing community support around school funding is to comprehensively revise the state’s school funding formula to ensure a more equitable distribution of state resources. For the past four years, the state has ranked as one of the worst four in the nation when it comes to educational equity, according to Education Week’s “Quality Counts” report. The coalition members have begun to address the issue of high school reform in Philadelphia. Their efforts forced mayoral candidates to directly speak to student concerns about school quality and safety at a recent public forum. With CPER, the group is poised to go further. “Being part of Communities for Public Education Reform will allow us to coordinate our efforts, support one another and take the work to the next level – reaching into the suburbs around Philadelphia, with their increasing low-income populations of color,” said Ali Kronley, head organizer of Philadelphia ACORN. In addition to the William Penn Foundation, local Philadelphia-area funders include the Advanta Foundation, Allen Hilles Fund, Annenberg Foundation, Douty Foundation, Samuel S. Fels Fund, Lanham Fund and Western Association. The national funders are: Ford Foundation, Bill & Melinda Gates Foundation, Carnegie Corporation of New York, Marguerite Casey Foundation, Edward W. Hazen Foundation, Charles Stewart Mott Foundation, Prudential Foundation and Surdna Foundation. The fund is administered by Public Interest Projects, a New York-based public charity that operates grantmaking, technical assistance and strategic planning programs for institutional and individual donors interested in social justice, human rights, education and environmental issues. _______________ For more information, contact Julie K. Kohler, Ph.D., Program Manager & Director of Evaluation, Public Interest Projects, Tel. (212) 764-1508 x231, jkohler@publicinterestprojects.org. ###
DVG Welcomes Three New Directors At its 19th Annual Meeting on January 18, 2007, the membership of Delaware Valley Grantmakers approved the nomination of three new directors to the association’s board. Joining DVG’s Board of Directors for a three-year term beginning immediately are:
"These three individuals bring an exceptional array of talents to DVG’s Board,” said DVG’s President Bruce Melgary of the Lenfest Foundation. “As we embark on the next phase of the organization’s strategic plan, these new directors will provide valuable experience and leadership to strengthen our role as the voice for philanthropy in the region, as well as contribute to upholding the organization’s high standards for good governance and quality member services.” _______________ ###
Panel on the Nonprofit Sector Releases Draft Principles on Self-Regulation Since its formation by Independent Sector in October 2004 at the encouragement of the U.S. Senate Finance Committee, the Panel on the Nonprofit Sector has convened members of the philanthropic and nonprofit community to develop recommendations for Congress to improve the oversight and governance of charitable organizations. The Panel has just released its new draft principles on self-regulation and is seeking public comment. These principles represent the recommendations of an Advisory Committee on Self-Regulation that was formed last spring to assist in developing a system of self-regulation of charitable organizations. Based on their work over the last eight months considering existing standards and principles in charitable organizations, the Committee has developed a set of 29 principles of effective practice that all charitable organizations should aspire to follow, and that all large institutions (public charities with $1 million or more in annual revenues and private foundations with at least $25 million in assets) should be expected to follow. The Panel is now inviting the community to offer its comments on these draft principles. Comments submitted by January 24, 2007, will be incorporated by the Committee into the recommendations it is preparing for the Panel’s consideration. Comments arriving afterwards up until February 2 will be reviewed by staff and relevant ideas will be referred to the Panel. Over the coming weeks, the Committee hopes to issue additional recommendations for improving existing systems of self-regulation and accreditation. Following another public comment period, the Panel on the Nonprofit Sector expects to issue its final report this spring. _______________ ###
President Signs Pension Bill Containing Charitable Provisions On August 17, 2006, President Bush signed the Pension Protection Act of 2006 (H.R. 4). The primary focus of this legislation is to strengthen protections for pension funds by providing a government-sponsored insurance system for businesses offering private pensions and making it easier for Americans to save for retirement through defined contribution plans. The bill also contains a series of provisions designed to stimulate charitable giving and cut down on abuses of charity tax laws by donors and nonprofit organizations. Chief among the law's incentives for charitable giving is the so-called IRA Charitable Rollover, which allows donors age 70 ½ and older to withdraw up to $100,000 each year from their individual retirement accounts tax-free if they give the money directly to a charity.
While these new incentives are being lauded as a means to spur charitable giving, there are several reform provisions contained in the legislation that are being viewed by some as potentially harmful to nonprofits and foundations. For example, the IRA provision does not include gifts made to donor-advised funds and supporting organizations. In an August 16th letter sent to the U.S. Treasury Department, the Council on Foundations requested immediate guidance on charitable reform provisions included in H.R. 4. The request focuses on reforms affecting donor-advised funds, supporting organizations and private foundation grants to supporting organizations.
Steve Gunderson, president and CEO of the Council on Foundations commented, "We must provide legal guidance to our nation's foundations in order that they may fully comply with the intent of this new legislation. Before we can do that, however, we're asking the Treasury Department to issue guidance in several key areas where provisions take effect immediately or are retroactive. We want to make sure that as this legislation takes effect, foundations will be able to continue to be the force for positive change in their communities." The Council on Foundation’s legal team has been interpreting the H.R. 4 legislation to assess its implications for grantmakers. Their analysis, including a summary of the IRA charitable rollover and a document that describes the changes in intermediate sanctions rules for supporting organizations, is posted on the H.R. 4 Resources section of their Web site.
### New Federal Legislation Impacts Charitable Giving On August 3, 2006, the U.S. Senate passed the Pension Protection Act of 2006 (H.R. 4), legislation that includes charitable reforms and incentives, by a vote of 93-5. The bill will be sent to President Bush, who is expected to sign it into law shortly. H.R. 4 contains giving incentives, including an IRA rollover provision, that should attract additonal resources to the nonprofit sector, as well as a series of safeguards designed to deter individuals who would use charitable organizations for personal benefit and to ensure that donations are used for charitable purposes. Certain provisions of the bill, in particular those aimed at donor-advised funds and type-III supporting organizations, are being view by some groups as potentially harmful. In a press statement, Steve Gunderson, president of the Washington, D.C.-based Council on Foundations, commented, “Last year, Congress chose to deny donor-advised funds and supporting organizations the benefit of the 100 percent charitable donation incentives included in the Katrina legislation,” said Gunderson. “Now Congress has denied these same funds and supporting organizations the benefit of the IRA charitable rollover.” The Council on Foundations is urging Congress to quickly amend the law to extend the IRA charitable rollover incentive to donor-advised funds and supporting organizations when they return in September. >> Link to the Legislative Update page of our Web site for more information on this bill and its impact on the charitable sector. ###
Grantmakers
Elect New Leadership At the organization’s 18th annual meeting, representatives of Delaware Valley Grantmakers (DVG) elected a new slate of officers to lead the organization’s Board of Directors. The association members elected: President Bruce Melgary, Executive Director of the Lenfest Foundation; Vice President Eden Kratchman, Executive Director of the ACE INA Foundation; and Treasurer Victoria K. Flaville, Vice President, Administration at Connelly Foundation. Continuing as DVG’s Secretary is Fernando Chang-Muy, Trustee of the Allen Hilles Fund. “We are delighted to have these exceptional individuals leading DVG’s Board,” said DVG’s executive director Nancy Lanham. “With our organization in the midst of developing a new strategic plan, these officers provide strong leadership as well as valuable experience and perspectives that will help guide us through the process. This plan recognizes the need for DVG to adapt to the changes taking place in philanthropy and our region to insure that its products and services are relevant to our current members and to those just joining the philanthropic community.” Two new members of the Board of Directors were also elected to serve their first three-year term. They are Robert C. Fernandez, Esq., Executive Director of the Genuardi Family Foundation, and Tami Wise, Director of Corporate Contributions for the Vanguard Group Foundation. Board members approved for a second term were: Fernando Chang-Muy, Allen Hilles Fund; Susan Heckrotte, Independence Foundation; Kate D. Moore, PNC Bank; and Cathy Weiss, Claneil Foundation. In addition to welcoming new directors and officers, the membership paused to recognize the valuable contributions immediate past President Beth Feldman Brandt of the Stockton Rush Bartol Foundation and departing Board member Diane Melley of IBM, who completed a six-year term of service. Following the business meeting, attendees heard from Maxwell
King, President of the Pittsburgh-based Heinz Endowments.
King spoke eloquently about the role of the nonprofit sector,
and particularly of foundations, in harnessing “society’s
risk capital” to advance innovation and help lead the way
to new solutions. ###
DVG Announces Ford-Sponsored Program Series to Increase Grantmaker Effectiveness Through a grant from the Ford Foundation, DVG will be holding a series of programs in 2006 designed to introduce topics that will increase the influence and impact of our members throughout the region. The first program offering of this series will be "Investing
In Mission: Program and Mission-Related Investments for Foundations" to
be held on Wednesday, February 15, 2006 at
Swarthmore College. The program will feature Luther M.
Ragin, Jr., Vice President, Investments at The F.B. Heron Foundation will
join DVG members to discuss how some foundations are expanding
their “philanthropic toolbox”
by combining grantmaking, below-market investments, and market-rate
investments to maximize their resources and increase impact. Ragin
will discuss Heron’s strategies and answer questions about
how a foundation can construct a mission-related portfolio without
jeopardizing the value of their endowment; and discuss ways that
targeted investments can increase a foundation’s ability
to deliver both financial and social returns that support its mission.
The F.B. Heron Foundation is a private, grantmaking institution
that promotes wealth creation strategies for low-income families
in urban and rural communities in the U.S. ###
DVG Joins World Community Grid Joining the IBM Corporation and a group of more than 100 companies, associations, foundations and academic institutions, Delaware Valley Grantmakers has become a partner of World Community Grid, a partnership that utilizes new grid technology to harness the power of idle computers and donates it to scientific research. Grid technology joins together many individual computers, creating a large system with massive computational power that far exceeds the power of a few supercomputers. World Community Grid uses grid technology to establish a permanent, flexible infrastructure that provides researchers with a readily available pool of computational power that can be used to solve problems plaguing humanity. “This amazing technology provides individuals with an easy, efficient and effective way to aid scientific progress on major global issues,” said Nancy Lanham, DVG’s executive director. “As an association of grantmakers committed to enriching our communities, I know our members will grasp the power of this technology and understand its potential for helping aid research to better lives both locally and throughout the world.” DVG has included its own computers in the grid and wanted its members to know of the good work that can be performed through harnessing the unused computer power now on their desks. Like a screensaver, grid technology is easy to use, safe and free. To join, members should go to www.worldcommunitygrid.org and simply download and install a free, small software program on their computers. When idle, your computer will request data from World Community Grid’s server. Computers then perform computations using this data, send the results back to the server and prompt it for a new piece of work. Each year, an international Advisory Board reviews research proposals and identifies those projects that would benefit most from grid computing and make the most difference to our world. Over the last year, World Community Grid ran the Human Proteome Folding Project, which has been providing scientists with data on how individual proteins within the human body affect human health, enabling them to develop new cures for diseases like lyme disease, malaria and tuberculosis. Scientists now have descriptions of 120,000 protein domains that are critical to human well-being; without the benefit of this free grid technology, it would have taken five years to get these results, compared with just 12 months on World Community Grid. On November 21, 2005, World Community Grid launched FightAIDS@Home. FightAIDS@Home, which is sponsored by The Scripps Research Institute, is using computational methods to identify new candidate drugs to block HIV protease, a key molecular structure that when blocked, stops the virus from maturing and thus is a way of avoiding the onset of AIDS and prolonging life. Possible future projects will address global humanitarian issues, such as new and existing infectious disease research; genomic and disease research; and natural disasters and hunger. ###
Senate Passes Tax Bill with Charitable Provisions On Friday, November 18, 2005, the Senate passed the Tax Relief Act of 2005 (S. 2020), a bill that included a number of charitable giving incentives and reforms relevant to the charitable sector. The charitable giving provisions in the new bill were similar to those passed in previous legislative attempts. They include the IRA charitable rollover, which would allow tax-free distributions from IRAs directly to charitable organizations or split-interest entities after the taxpayer has reached 70 ½ years, and the non-itemizer deduction, allowing donors who do not itemize on their tax returns to deduct cash contributions over $210 for single filers and $420 for joint filers. New in S. 2020 were rules affecting donor-advised funds and supporting organizations. In addition to establishing a legal definition for donor-advised funds, the bill also imposes a 5% annual payout requirement, sets a minimum activity rule, creates special distribution rules for gifts of “illiquid” assets, and increases the types of people who are considered “disqualified persons”, which could have a significant impact on community foundations. The bill would affect type-III supporting organizations by precluding them from making grants to donor-advised funds, imposing a 5% payout requirement, prohibit receipt of grants from private foundations, and increase penalties for rules violations. Several national organizations, such as the Panel on the Nonprofit Sector and the Council on Foundations, have been analyzing the legislation and are assessing its potential impact on philanthropy and the nonprofit sector. They praised the work of Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Max Baucus (D-MT) to balance the goal of addressing abusive practices with the need to strengthen and support the charitable sector. They also noted the leadership of key Senators and staff, including Senators Rick Santorum (R-PA) and Charles Schumer (D-NY), who played a critical role recognizing the importance of community foundations. Assuming the House of Representatives passes its own tax relief legislation, which it is expected to do in the coming weeks, a House-Senate conference will be scheduled to reconcile differences between the two tax bills. Unlike S. 2020, the House version is unlikely to contain any charitable reform provisions. >> For more detailed information on S. 2020, including the full text and the relevant section of the Managers’ Amendment, visit the Public Affairs Department at Independent Sector and the Council on Foundations’ Charitable Reform Resource Center. ###
Charitable Giving Legislation Reintroduced in Congress On September 28th, Senators Rick Santorum (R-PA) and Joseph Lieberman (D-CT) reintroduced the bipartisan CARE (Charity, Recovery and Empowerment) Act of 2005 (S. 1780) in the Senate. A companion bill was also introduced in the House by Representatives Roy Blunt (R-MO) and Harold Ford, Jr. (D-TN). Similar legislation, which contained tax incentives to encourage more charitable giving, was passed by both houses in 2003 but never made it to conference. Provisions of the 2005 CARE Act would allow those who do not itemize their charitable gifts to deduct a portion of their charitable contributions; permit individuals to make tax-free contributions to charity from IRAs, provide incentives for corporate charitable contributions, and allow low-income workers to build assets through matched savings accounts. Santorum said the bill is likely to be coupled with charity reform measures, adding that he doesn't want the reforms to be burdensome to nonprofits. Charity abuses may not be as pervasive as some think, he said, adding that he has talked to Finance Committee Chair Chuck Grassley (R-IA) about reaching a "middle ground" on charity reforms. On the heels of the recently passed Katrina Emergency Relief Act of 2005, the Senators commented that the CARE Act “goes beyond these limited provisions in both scope and time, addressing the long-term needs of the charitable sector in our communities.” Santorum said that the focus of this legislation should be on sustaining high levels of giving after the charitable response to Hurricane Katrina wanes. "In the 108th Congress, more than 1,600 organizations endorsed the CARE Act and 23 senators from both sides of the aisle were cosponsors of the bill," said Santorum. "At a time when we are asking so much of our community-based organizations, we should be proactive in finding ways to more fully engage the American public in charitable giving." Further detail on the provisions of the CARE Act of 2005 (S. 1780) are available in a press release posted on Senator Santorum’s Web site. ###
Hurricane Katrina Spurs Outpouring of Charitable Support As the nation struggles to deal with the aftermath of Hurricane Katrina and its devastating impact on the Gulf Coast, Americans across the country are rallying to support their fellow citizens by contributing to the relief, recovery and rebuilding efforts. According to the Chronicle of Philanthropy, $487 million has already been raised to help the victims of Hurricane Katrina, with the bulk of contributions ($409 million) being made to the American Red Cross. Aid organizations have been overwhelmed by the outpouring of support, which has outpaced initial donations to both September 11th and the 2004 tsunamis in Southeast Asia. Online fundraising is credited with facilitating the rapid pace of donations. The response from the philanthropic community has been similarly swift and generous. To date, over $95 million has been donated by corporations and foundations nationwide for Katrina relief and recovery, including $1 million each from the John S. and James L. Knight Foundation and the Pew Charitable Trusts. Several local foundations in the devastated regions have established special assistance funds that will aid individuals and communities in both short-term relief activities as well as longer-term rebuilding efforts. DVG is currently collecting information on how our members are responding to the crisis and will post that information as soon as it is available. Below is a short list of organizations that are accepting donations
to aid victims of the hurricane-ravaged areas. GrantStation has
also established an online
clearinghouse for current grant announcements and other related
information that will affect those organizations, educational institutions
and government agencies helping the victims of Hurricane Katrina. FOUNDATIONS SERVING THE DEVASTATED REGIONS DELAWARE VALLEY ORGANIZATIONS ACCEPTING DONATIONS
###
Study Shows Foundation Expenses Tied to Operating Style A new study issued by the Urban Institute, the Foundation Center, and GuideStar, reveals that differences in foundations' operating styles have a great impact on their expenses. The report, titled Foundation Expenses and Compensation: Interim Report 2005, examines the expense and compensation patterns of the nation's 10,000 largest grantmaking foundations and finds that 28 percent report no administrative expenses related to their charitable activities and 66 percent do not pay any compensation for these tasks. Yet among those that report expenses or pay staff or trustees, expense patterns vary widely. Employment of paid staff, for instance, has the most significant effect on operating costs; international giving proves more expensive than local or national giving; and direct charitable activities, such as operating a facility for nonprofit programs, costs more than grantmaking alone. The findings suggest that, along with type and size, a foundation's mission and program goals are important factors to consider when analyzing its charitable expenditures The study looks at the 10,000 largest independent, corporate, and community foundations by giving in 2001. These foundations represent just 16 percent of U.S. foundations but account for 78 percent of all foundation giving, or $24 billion in 2001. The initial findings focus on charitable expenses as a percentage of qualifying distributions (those that count toward federally stipulated payout levels) for the 8,876 independent foundations in the sample and on compensation levels for all foundation types. A final report, to be released later this year, will analyze additional operating characteristics, such as staff size and the number and size of grants. It will also examine factors that influence expense levels at corporate and community foundations. Project funding was provided by the Charles Stewart Mott Foundation and the Ford Foundation. >> Click here to download a PDF copy of the report. For further information, contact Margaret Morth, Communications Manager at the Foundation Center at 212-807-2415 or mor@fdncenter.org. ###
Panel on the Nonprofit Sector Releases Final Report At an event on Capitol Hill on June 22, 2005, the national Panel on the Nonprofit Sector presented its final report to Finance Committee chair Senator Charles Grassley. The report recommends more than 120 actions to be taken by charitable organizations, by Congress, and by the Internal Revenue Service, which together would strengthen the transparency, governance, and accountability of the nation’s 1.3 million charities and foundations to serve as responsible stewards of the public’s generosity. The report is the result of a year-long collaboration among sector leaders and experts in government and oversight from across America’s charitable community, as well as incorporates the input of thousands of people who contributed their ideas through the Panel’s Web site or at 15 field hearings held across the country. Among the recommendations are: improved federal and state enforcement of existing laws governing the charitable sector; better and more accurate reporting of nonprofit IRS form 990; periodic review of organizations’ tax-exempt status; and requirements for organizations to conduct annual financial audits and establish audit committees. The Panel is encouraging charitable organizations, once they have read the report, to sign on to it as a way to demonstrate their commitment to the highest possible ethical standards. The Panel was led by Diana Aviv, the president and chief executive of Independent Sector, a leadership forum for charities, foundations, and corporate giving programs committed to advancing the common good in America and around the world. >> Free copies of the report are available by request from
the Panel’s
Web site. ###
Panel on the Nonprofit Sector Holds Philadelphia Field Hearing Over 100 members of the regional funding and nonprofit communities came together on May 6th to provide comments and feedback to the Panel on the Nonprofit Sector, a national commission formed by Independent Sector in October 2004 at the request of Congress to provide recommendations for reforms to the charitable sector. Co-convened by Delaware Valley Grantmakers, the Pennsylvania Association
of Nonprofit Organizations, the Nonprofit Center at LaSalle University,
and the United Way of Southeastern, the May 6th meeting was led
by Jon Pratt, Panel member and Executive Director, Minnesota
Council of Nonprofits. Pratt provided attendees with background
on the Panel and facilitated a discussion among funders, trustees,
nonprofit staff, and volunteers on a variety of topics relative
to governance and regulatory issues in the charitable sector, including: This regional meeting follows the unveiling of the Panel’s
Interim Report in March 2005 that summarized its initial recommendations
for improving the oversight and governance of charitable organizations.
The May 6th gathering was one of more than a dozen field hearings
the Panel is holding around the country to gather input directly
from the nonprofit sector as it considers issues for inclusion in
the final report it will submit to Senate Finance Committee in June.
>> Additional information about the Panel’s work is available on their Web site at www.nonprofitpanel.org. ### Senate Holds Hearing on Charitable Sector Reforms On April 5th, the Senate Finance Committee convened a hearing entitled “Charities and Charitable Giving: Proposals for Reform," where members heard testimony from a number of witnesses who commented on proposed tax and governance reforms that could severely impact the nonprofit sector, including both public charities and private foundations. Testimony and discussion during the first part of the hearing focused on four key areas: 1. the valuation of non-cash contributions The second part of the hearing featured testimony from Dr. Jane Gravelle, a Senior Specialist in Economic Policy at the Congressional Research Service, who spoke primarily about donor-advised funds and supporting organizations. The Committee also heard from Brian Gallagher, president of United Way of America, and Diana Aviv, president of Independent Sector and executive director of the Panel on the Nonprofit Sector, who shared recommendations from the Panel’s Interim Report and encouraged officials to hold off on introducing any new reform legislation until the Panel completes its work later this spring. The Government Relations staff at the Council on Foundations has just posted highlights of the proceedings, including links to the full testimony of each of the nine witnesses. We encourage you to take a moment to review this summary, which you can access online at the Council’s Web site. For a timeline of recent events leading up to the April 5th hearing, visit the Legislative Update page of DVG’s Web site. ### DVG Delegation Visits Capitol Hill On Wednesday, March 9, 2005 a delegation of DVG members and staff joined over 180 representatives from around the country for Foundations on the Hill. This annual advocacy day is a chance for the national grantmaking community to meet with Members of Congress and their staff to educate them on the important role philanthropy play in improving communities across the country and around the world. Kim Flaville, The Connelly Foundation, Jeanne-Marie Hagan, The Philadelphia Foundation, Eden Kratchman, The ACE INA Foundation, Sam McClea, The National Philanthropic Trust, Bruce Melgary, The Lenfest Foundation, Frances Sheehan, Brandywine Health and Wellness Foundation, and Joe Willard, the United Way of Southeastern PA along with Nancy Lanham and Kate Laepple from the DVG staff began the day by joining the delegation from Grantmakers of Western Pennsylvania to meet with the offices of Senators Rick Santorum and Arlen Specter. While these meetings were with the staff of both Senators, a chance meeting with Senator Rick Santorum in the hallway outside of his office allowed the group to quickly talk with the Senator about why they were in Washington for the day and he offered his continued support of the work of foundations and the nonprofit community as a whole. After spending the morning on the Senate-side of the Hill, the DVG delegation moved to the House side to meet with staff of Representative Allyson Schwartz and Representative Jim Gerlach and his Legislative Director. Both Representative Schwartz’s staff and Representative Gerlach expressed support for the philanthropic community and encouraged the delegation to keep them apprised of the work that they are doing throughout Southeastern Pennsylvania. With continued focus on the nonprofit sector by the legislature, much of the discussion on March 9th was focused on the work the philanthropic and nonprofit communities are doing around accountability and transparency. The group shared DVG’s Statement of Values, Guiding Principles and Best Practices with all the offices as just one example of how the local philanthropic community is working to self-regulate and be more accountable. For further information about the annual Foundations on the Hill event, visit their Web site at www.foundationsonthehill.org. ###
National Panel Releases Recommendations on Charitable Sector Reforms At a press conference on March 1, 2005, the Panel on the Nonprofit Sector released its Interim Report that offers its proposed recommendations to the U.S. Senate Finance Committee for strengthening charitable organizations and their operations. The new report calls upon the nation’s 1.3 million charities and foundations to implement a series of measures to improve their governance and financial disclosure, and it also suggests enhancing government oversight of charitable organizations through actions by Congress and the Internal Revenue Service. The Panel on the Nonprofit Sector, which is an independent panel of 24 leaders from a wide range of the country's public charities and private foundations, was convened last November by Independent Sector at the encouragement of the U.S. Senate Finance Committee and charged with developing recommendations to improve the governance, ethic conduct, and oversight of nonprofit organizations. The Panel has been assisted in its work by a Citizen Advisory Group, Expert Advisory Group, and five Work Groups and has also sought comments and advice from the field through vehicles such as online surveys and "town hall" meetings. The complete Interim Report, which also contains eight principles that the Panel used to guide its work and an executive summary, is available online at http://www.nonprofitpanel.org/interim/. The Panel is encouraging charities and foundations to sign on to the Interim Report in order to demonstrate the sector’s commitment to self-regulation and reform. In the coming months, the Work Groups and the Expert Advisory Group will tackle issues that require further study and present their recommendations to the Panel for consideration for the final report in the spring and follow-up comments in the fall.
Over 100 members were in attendance at Philadelphia’s Independence Visitor Center on January 13, 2005 to celebrate DVG’s 17th Annual Meeting and Networking Event. The gathering began with a brief business meeting, where executive director Nancy Lanham reported on the organization’s highlights from 2004 and plans for the coming year. She also welcomed new members from 2004, acknowledged many of the people who had contributed to DVG’s success over the past year, and thanked DVG’s health conversion foundation members who had sponsored the event: Brandywine Health & Wellness Foundation, First Hospital Foundation, Lancaster Osteopathic Health Foundation, North Penn Community Health Foundation, Phoenixville Community Health Foundation, Pottstown Area Health & Wellness Foundation, and St. Joseph's Health Ministries Foundation. The business meeting continued with the election the association’s 2005 board of directors. The proposed slate was presented by Nominating Committee chair Louis J. Beccaria, president of the Phoenixville Community Health Foundation, and was approved by unanimous voice vote of the members in attendance. Elected to the serve as Secretary of the board was Fernando Chang-Muy, trustee of the Allen Hilles Fund. Three new directors were voted to their first three-year term: Ronnie L. Bloom, Esq., director, Children, Youth & Families, William Penn Foundation; Catherine T. Murphy, director of Donor Services & the Executive Office, The Pew Charitable Trusts; and Frances M. Sheehan, president & CEO, Brandywine Health & Wellness Foundation. Also approved for a second three-year term were: Denise McGregor Armbrister, Wachovia Regional Foundation; Beth Feldman Brandt, Stockton Rush Bartol Foundation; Nancy Burd, Nonprofit Finance Fund; Melissa Weiler Gerber, WOMENS WAY; Jeffrey W. Gordon, PECO Energy; Geoffrey Jackson, Fourjay Foundation; and Bruce Melgary, Lenfest Foundation. DVG’s president Beth Feldman Brandt then took the podium and offered thanks to the organization’s three retiring directors, who had completed two full terms and had each served as an officer of the board during their tenure: Louis J. Beccaria, president of the Phoenixville Community Health Foundation; Kimberly C. Oxholm, managing trustee of the Campbell-Oxholm Foundation, and Helen Davis Picher, director, Evaluation and Research at the William Penn Foundation. Also recognized was Alexandra Samuels, manager of Civic and Philanthropic Affairs, Rohm and Haas Company, who for the past four years has been the co-chair of DVG’s Corporate Donors Forum. Feldman Brandt then introduced Dr. Risa Lavizzo-Mourey, president and CEO of the Robert Wood Johnson Foundation (RWJF). Dr. Lavizzo-Mourey, whose first exposure to the foundation was as a Robert Wood Johnson Clinical Scholar at the University of Pennsylvania, spoke eloquently about the transformative power of philanthropy and the need for grantmakers to more effectively collaborate in order to address the root causes of our most intractable social problems. The event concluded with a lively reception, where members had
an opportunity to enjoy refreshments while networking with their
peers.
Philanthropic Community Rallies to Aid Tsunami Victims Charitable organizations from across the region, country and world have shown incredible generosity by responding with million in donations to the aid the relief efforts in the aftermath of the deadly Indian Ocean tsunamis that struck on December 26th. Local Donations Several other DVG members have also contributed to the cause. The Barra Foundation has made a cash donation to the American Red Cross. While GlaxoSmithKline’s response has focused on product donations of medicines and vaccines, they also plan to provide a cash donation and are encouraging their employees to contribute through the company’s matching gifts program. Other corporations who have made commitments are Commerce Bank, Lincoln Financial Group, PECO/Exelon, Prudential Foundation and Rohm and Haas Company. Numerous other DVG members have indicated that they also intend to contribute to the relief efforts, but have yet to finalize their plans. Impact on Regional Giving Extending the Tax Deduction for Tsunami Relief Gifts More information on …
Where to Give
### National Philanthropy Day Honors DVG Members In a ceremony on November 9, 2004, the Greater Philadelphia Chapter of the Association of Fundraising Professionals (www.afpgpc.org) honored the recipients of this year’s National Philanthropy Day Awards. Among the 2004 honorees were three DVG members: the Wachovia Corporate Foundation, named Outstanding Corporation of the Year, and Gerry and Marguerite Lenfest, named Individual Philanthropists of the Year. The 2004 President’s Award was given to DVG’s former executive director Dale Mitchell. Wachovia Corporate Foundation was named Outstanding Corporation of the Year for its deep commitment to the citizens and communities throughout the greater Philadelphia region. Wachovia supports educational, cultural, civic and social needs of the area’s residents, as well as efforts to improve the quality of life for children and families living in low-income communities by concentrating resources on comprehensive, neighborhood-based community development initiatives. Giving through both the Wachovia Foundation and Wachovia Regional Foundation totaled more than $10 million in 2003. As Individual Philanthropists of the Year, Gerry and Marguerite Lenfest were recognized for their incredible generosity to programs supporting education, arts and the environment. Through the establishment of Lenfest Foundation in 2000, and their personal commitments, the Lenfests have given $340 million to various charitable organizations and causes. The Lenfests have provided major support to regional institutions, such as the Philadelphia Museum of Art and Kimmel Center, and have established a scholarship program that provides financial and counseling assistance to students from 10 rural Pennsylvania school districts. Most recently, the foundation provided $20 million to create the Lenfest Ocean Program to aid in the development of scientific and technical information that will reduce detrimental policies that impact life in the sea. Also honored at this year’s ceremony was Dale Mitchell, DVG’s former executive director, who retired earlier this year. As executive director of DVG for the past nine years, and in her previous role as a corporate grantmaker for IBM, Dale has been a leader in the regional grantmaking community for over 20 years. During her tenure at DVG, she played a pivotal role in bringing grantmakers together with nonprofit providers and public policy leaders to focus on critical needs and solutions for greater Philadelphia. Dale also heightened the visibility of DVG and the work of its members by serving as a highly respected and sought-after spokesperson on issues regarding regional philanthropy. Among the Distinguished Honorees at this year’s event were Stan and Edna Tuttleman of the Tuttleman Family Foundation, and Julie Tarr, Community Liaison Program Officer for the John S. and James L. Knight Foundation. Alexandra Scott was honored posthumously with the 2004 Youth in Philanthropy Award for her remarkable fundraising efforts in support of cancer research. National Philanthropy Day was established in 1986 by the U.S. Congress to honor the American altruistic spirit. The goal of National Philanthropy Day is to strengthen volunteerism and emphasize the importance of philanthropy in improving the quality of life in our communities. The annual awards, held by AFP chapters across the country throughout the month of November, recognize individuals and organizations who demonstrate how much can be accomplished through the spirit of giving. For further information about National Philanthropy Day, contact AFP-GPC at 610-642-0599.
Education Funders Group Develops Grant Review Guidelines Following a September 2002 Critical Dialogue with Paul G. Vallas, the then newly-appointed CEO of the School District of Philadelphia, a group of DVG’s public education funders began convening on a regular basis to explore ways that grantmakers and the School District of Philadelphia could more effectively work together in support of public education. In May 2004, DVG's Public Education Funders Group came together for a grantmakers-only meeting to discuss the priorities of the current administration, the state of funding in the School District of Philadelphia and what the next steps for the education funders would be. The consensus among participants was to focus on identifying best practices in supporting public education, specifically in coordinating activities with the School District of Philadelphia. A subcommittee of the DVG Public Education Funders Group was formed to identify best practices, as well as develop guidelines for reviewing grants that focus on working within public schools. Candace Bell of the William Penn Foundation, Helen Cunningham of the Samuel S. Fels Fund, Diane Melley of IBM, Allie Mulhivill of Philadelphia Education Fund, and Jolley Christman and Kristine Lewis from Research for Action came together in late June to begin work on this collaborative effort. In October 2004, the DVG Grant Review Guidelines for Proposed Work in Support of Local Public Schools were finalized. These guidelines, which are based on research around what constitutes good practice in public education, will provide funders with guiding questions to ask when reviewing grant proposals and thinking about funding priorities for public education. For further information on the new guidelines, contact Kate Laepple at kate@dvg.org or 215-790-9700 x3.
DVG Board Adopts Guiding Principles Statement At their September 23, 2004 meeting, the DVG Board of Directors officially adopted the organization’s newly-crafted Statement of Values, Guiding Principles and Best Practices for DVG Members. The statement is the result of six months of thoughtful consideration and development by a committee broadly representative of DVG’s membership. Undertaken in part in response to recent calls from the government and media for greater accountability in the philanthropic sector, the establishment of these principles sends a clear message that DVG and its members are strongly committed to sustaining the public trust. “Across all types of organizations, public distrust of institutions is at a high. The charitable sector and especially DVG’s members have stepped up to encourage a culture of ethics.” said Nancy Lanham, executive director of DVG. “With today’s climate spawning increased scrutiny of our sector, it is essential that we work to effectively respond to these challenges by instituting standards for accountability, transparency, and governance.” In developing these principles, the Board recognized an opportunity for DVG to serve as a leader in promoting the highest standards of effective governance for grantmakers in our region. By providing the information, tools and resources, DVG is will lead regional efforts to further enhance its members’ accountability and effectiveness, build their knowledge of best practices, and foster greater understanding of the unique role that philanthropy serves in our society and community. DVG will also collaborate with national organizations such as the Council on Foundations and the Forum of Regional Associations of Grantmakers to create additional resources to aid grantmakers in compliance with these guiding principles. Lanham added, “We believe that the field of philanthropy is responsible for strengthening and expanding efforts to ensure the highest levels of accountability within its own ranks. DVG will continue to be the key provider of networking, knowledge sharing and professional development activities for grantmakers in our region that support both accountability and effectiveness in their philanthropy.” Click here to view a copy of the Statement of Values, Guiding Principles and Best Practices for DVG Members.
Ralph R. Smith to Keynote DVG 2004 Annual Conference DVG is delighted to have Ralph R. Smith, Senior Vice President of the Annie E. Casey Foundation, as the keynote speaker for our 2004 annual conference. This year’s event will take place on Wednesday, October 13, 2004 from 8:30 a.m. to 2:00 p.m. at the Gregg Conference Center at the American College in Bryn Mawr, and will address the theme, “Ain’t Misbehavin’: Working Together to Ensure the Public Trust”. Mr. Smith’s remarks will focus on best practices for building stronger and more ethical foundations, and ways that the grantmaking and nonprofit communities can work together to ensure good governance, accountability, and the restoring of the public’s confidence in our sector. A response panel following the keynote remarks will be moderated by Helen Cunningham, Executive Director of the Samuel S. Fels Fund, and feature Smith in dialogue with Frank Burgos, the Editor of the Editorial Page of the Philadelphia Daily News; Eden Kratchman, Executive Director of the ACE-INA Foundation; and H. Art Taylor, President and CEO of the BBB Wise Giving Alliance. DVG’s annual conference is the premier event for regional funders to join with their grantmaking peers, nonprofit executives and government officials for networking and shared learning on important trends and issues impacting philanthropy and regional giving. Lead support for this year’s conference is being provided by ARAMARK, The Lenfest Foundation, and PNC Financial Services Group. Further details and registration information will be posted to the DVG Annual Conference section of our website in later summer. Invitations to the event will be mailed shortly after Labor Day. Questions about the conference can be directed to Kate Laepple,
DVG’s Director of Programs and Member Services at 215-790-970
ext. 3 or kate@dvg.org.
Senate Hearing Addresses Charity Oversight and Reform On Tuesday, June 22nd the U.S. Senate Finance Committee began its inquiry into possible reforms in the nonprofit sector with a wide-ranging hearing that focused on abuses in the industry, governance challenges, and ways to improve regulatory oversight. Senators who participated in portions of the hearings were, Max Baucus (D-Montana), Jeff Bingaman (D-New Mexico), Jim Bunning (R-Kentucky), Charles Grassley (R-Iowa), Don Nickles (R-Oklahoma), Rick Santorum (R-Pennsylvania), Craig Thomas (R-Wyoming). The three-hour hearing publicly addressed a variety of issues and concerns the charitable sector has been grappling with for some time now. A 19-page discussion draft by Senate Finance Committee staff served as the basis for the hearing. Approximately 15 witnesses appeared before the Committee, whose remarks focused on several key issues, including: board governance; IRS and state reporting requirements; federal-state cooperation between the IRS and state charities’ registration officials; increased financial resources needed by the IRS; individual abuses by nonprofits (such as credit counseling organizations) and foundations’ and expedited electronic reporting of 990-PFs IRS. At least three important messages came across during the hearing:
DVG Board Names Nancy Lanham as New Executive Director On June 1, 2004, Board president Beth Feldman Brandt announced the appointment of Nancy Lanham as the new Executive Director of DVG. Ms. Lanham was selected for her outstanding and diverse array of talents and experiences, and her background in business, as well as nonprofit leadership. Her professional experience includes several years with CoreStates Financial Corporation, where she was a Senior Vice President, Reengineering/Quality; Senior Vice President, Division Manager, Personal Financial Services Sales & Marketing; and Vice President, Trust Product Management. After leaving CoreStates, she worked with the School District of Philadelphia, where she managed the implementation of several management and productivity initiatives developed by the Philadelphia business community, including the development of a system-wide information technology plan supporting teaching and learning. Acting as a consultant, Ms. Lanham also successfully completed several projects, including technology planning, communication strategy, and product line repositioning for Moore College of Art and Design. Her experience also includes serving as Chair of the Board of the Metropolitan Career Center, and as a volunteer of Happy Fernandez’s mayoral campaign, where she acted as the developer of her position papers. Because of her personal commitment to philanthropy, Ms. Lanham has been an “individual” member of DVG for several years where she gained additional exposure to the DVG organization and membership. About the selection of Ms. Lanham, Brandt said, “We believe Nancy’s leadership will bring fresh energy to DVG and ensure that we are well positioned to thrive and flourish in the coming years.” She added, “As the President of DVG’s Board of Directors, I am greatly honored to serve such an extraordinary organization and group of members, and I look forward to working with Nancy and the DVG membership to realize the potential and promise that our collective resources offer this region.” Ms. Lanham will officially assume her position at DVG on June 28, 2004, replacing retiring executive director Dale Mitchell.
New Resources Developed to
Aid Grantmakers in Anti-Terrorism Compliance ### New Documents Available to Help Foundations Prepare 990-PF Forms Based on the recommendation of its National Task Force on Accountability, the Forum of Regional Associations of Grantmakers has teamed up with PricewaterhouseCoopers to prepare two documents that will assist private foundations as they finalize their IRS 990-PF Forms. Written by former Council on Foundations’ Vice President and General Council John Edie, these documents will provide foundation officers and their tax preparers with helpful information about completing their annual 990-PF tax return. What You Should Know Before Signing Your Organization’s Form 990-PF is written for the chairpersons of private foundations and other top officers who are accountable for the organization and sign the Form 990-PF, delineating the important safeguards they should undertake before signing the tax return. Ten Common Errors to Avoid in Completing a Private Foundation’s Form 990-PF is directed toward the actual tax preparers of the 990-PF, and highlights those areas most commonly completed incorrectly, and provide explanations and directions for proper completion. In this time of increased scrutiny of the philanthropic and nonprofit sector, the Form 990-PF tax return is now one of the most commonly used sources for data about foundations. These new documents are offered by DVG in partnership with the Forum of Regional Associations of Grantmakers, the Charles Stewart Mott Foundation and others to support our members in their commitment to openness and accountability to the public, and assist them in improving their 990-PF reporting practices in order to more clearly and accurately reflect their activities. DVG will soon launch a new Good Governance section on its Web site that will provide grantmakers with additional resources to promote the knowledge, understanding, and application | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
