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2008 ******************************************* DVG Appoints Debra A. Kahn as Executive Director (11/5/08)
Kahn’s professional background includes having served as a Principal in the public issues consulting firm GoldsmithKahnAssociates, LLC; Philadelphia Secretary of Education in the Street Administration from 2000-2005; Executive Director of Philadelphia Futures; Assistant to the President of Temple University; Vice President of Corporate Communications and Public Affairs at PNC Bank; and Special Assistant to Mayor William J. Green. In addition to her strong professional experience, Kahn brings a broad community perspective from her various volunteer activities with cultural, educational, economic development and human services organizations. She was an appointed member of the Philadelphia Board of Education and currently serves as Vice President of the Board of Directors of Philadelphia Young Playwrights, Trustee of the Christopher Ludwick Foundation, Advisory Board Member of the Charles Ellis Fund, Ambassador Board Member of the Science Leadership Academy and Advisor to the Penn Autism Network. Commenting on Kahn’s appointment, DVG Board President Frances M. Sheehan stated, “DVG is extremely fortunate to attract someone of Debra’s caliber and experience. As we seek to engage new partners in DVG’s work, Debra’s leadership skills and ability to build alliances will be an incredible asset to our efforts. She has a deep understanding of the possible collaborative opportunities for the philanthropic community as we look to tackle some of our region’s toughest problems in increasingly difficult economic times.” Remarking on her new role, Kahn said, “I am excited by the chance to work with the members of DVG to build a greater understanding about regional issues and determine how the philanthropic community can serve as both a leader and partner in addressing our greatest challenges.” Kahn graduated from Franklin and Marshall College and earned a M.A. from the Eagleton Institute of Politics at Rutgers University. She resides in Center City Philadelphia. _______________ ###
Council on Foundations Issues Open Letter to the Field on Economic Crisis (10/9/08) In "an open letter to council members and other leaders of our field” dated October 9th, the Council on Foundations issued a call to action for philanthropy in response to the exigencies that are facing our sector as a result of the current global economic crisis. The letter, co-signed by COF President and CEO Steve Gunderson and Chair of the Board Ralph Smith, offers three broad recommendations for philanthropy to take a leaderhip role in adressing the challenges ahead. The three recommendations include: reaching out across the nonprofit sector to identify creative ways to weather the storm; playing an active role in helping communities assess the size and scope of the challenges and craft solutions; and paying special attention to situations where the loss of philanthropic resources (as in the case of Fannie Mae and Freddie Mac) could be the unintended consequences of mergers and consolidations that are the inevitable product of economic restructuring. In the coming months, the Council plans to work with colleague organizations, including the Forum of Regional Associations of Grantmakers, to identify promising practices and enourage stakeholder convenings where sector representatives can come together to share their concerns and ideas. >> Read the Council's letter. _______________ ### Philanthropy Responds to Disasters in Asia (5/30/08) As the devastation in the aftermath of the Asia from Cyclone Nargis in Myanmar and the earthquake in the Sichuan Province of China continues to unfold, contributions from individuals, foundations and corporations are building. As of May 23, the Chronicle of Philanthropy reported that American relief groups have raised at least $58 million for victims of the recent disasters- about $27 million donated for the earthquake victims and $25 million for cyclone relief. Because of the proximate timing of the two events, many relief groups and donors aren’t differentiating between the two crises and are providing support for the recovery and rebuilding efforts on both countries. While it has been somewhat more difficult to raise funds for the cyclone relief due to the political situation in Myanmar, corporate contributions, particularly from companies who have ties to China, have fueled the donor response to that disaster. Cash gifts by companies are bolstered by donations of products, services, and pledges to match employee contributions. Many DVG members have made contributions to the relief, recovery and rebuilding efforts in Asia. A sampling of the contributions made by DVG members include:
For grantmakers interested in learning more about guidelines for providing disaster grants, we recommend these resources:
For those wishing to make donations, below is a short list of some of the international relief organizations operating in Myanmar and/or China
_______________ ###
DVG Delegation Travels to Washington for Foundations on the Hill 2008 (3/13/08) On Wednesday, March 5, 2008 a delegation of DVG members and staff joined representatives from around the country for Foundations on the Hill 2008. 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 plays in improving communities across the country and around the world.
Joining Nancy Lanham and Christina Edleman from the DVG staff were: Frances Sheehan (Brandywine Health Foundation), Bruce Melgary (Lenfest Foundation), Kim Flaville (Connelly Foundation), Jan Shaeffer (St. Christopher’s Foundation for Children), Gisele Pinck (William Penn Foundation), Ellen Baker Ghelardi (Dexter F. & Dorothy H. Baker Foundation), and Bernardine Watson (The Stoneleigh Center). The DVG delegation, joined by Barbara Taylor, the Executive Director of the Pittsburgh-based Grantmakers of Western PA, had the opportunity to meet with the offices of Senator Arlen Specter and Senator Robert Casey to discuss the work of philanthropy throughout the Commonwealth. Additionally, the group met with the offices of Congressional Representatives for southeastern Pennsylvania, including: Charlie Dent (PA-15th), Jim Gerlach (PA-6th), Allyson Schwartz (PA-13th), and Joe Sestak (PA-7th). During the meetings, the group talked about issues of concern to those in the philanthropic sector, including extending the IRA charitable rollover, and flattening the excise tax on private foundations. The group also asked our Representatives to serve on the Philanthropy Caucus, which helps to keep Congress informed about the important role that foundations play in our communities and raises awareness of legislation that affects foundations. Also discussed were ways that DVG members could serve as a resource to our Congress members and potential ways we could partner in the future. _______________ ###
DVG Elects 2008 Officers, Welcomes Five New Directors (1/30/08) On January 15, 2008, the membership of Delaware Valley Grantmakers convened at the World Café Live in West Philadelphia to celebrate its 20th annual meeting. At the gathering, which featured keynote remarks by former South African Ambassador James A. Joseph, the membership voted to approve the nomination of a new slate of officers for 2008 and the election of five new directors to join the association’s board.
Also serving as officers for 2008 are: Vice President Victoria K. Flaville Vice President, Programs, Connelly Foundation; Secretary Robert C. Fernandez, Esq., Executive Director, Genuardi Family Foundation; and Treasurer Weston Somerville, Manager, Community Resources, Prudential. New directors who join the board for a three-year term beginning immediately are:
_______________ ###
2007******************************************** Two New Initiatives Offer Grantmakers Opportunities for Shared Action and Learning (12/12/07) Health Funders Join Forces to Strengthen Behavioral
Health Care While this project grew out of discussions among a small group of the southeastern Pennsylvania health conversion foundations, over the course of its development it has grown to encompass funders from across the state who have formed a funding collaborative tentatively called the Pennsylvania Health Funders Collaborative (PHFC). The initial goal set by the PHFC is to identify promising practices in the integration of behavioral health care and primary care, to share those learnings widely and to encourage implementation among providers with the required capacities. The group plans to achieve these goals through:
Although the current projects are slated to last for two to three years, the work of the collaborative is not limited to the current project. The successful completion of the current initiative may lead to opportunities for public policy actions or other initiatives designed to improve access to or provision of high quality health care alternatives throughout the state. If you are interested in learning more about the PA Health Funders Collaborative, please contact Joe Pyle at the Thomas Scattergood Behavioral Health Foundation (jpyle@scattergoodfoundation.org) or Frances Sheehan at the Brandywine Health Foundation (fsheehan@brandywinefoundation.org). Funders Collaborate to Increase Arts Participation The purpose of the partnership with The Philadelphia Foundation and the Greater Philadelphia Cultural Alliance is to help area arts organizations reach more people, capture knowledge about effective practices toward this goal, and make that knowledge known to a broad constituency of arts professionals. The Wallace Foundation’s grant in part will support the Cultural Alliance’s ongoing collaborative marketing initiatives, which are focused on increasing engagement in the arts and culture region wide. By adding further support to local arts organizations and commissioning research, the collaboration will promote the effective exchange of knowledge -- extending the benefits of this work to many other organizations beyond those that receive individual awards. The initiative will include a series of seminars/workshops and technical assistance on market research and evaluation of audience development efforts. The research plans include mapping the region’s demographics, market demand analysis, probing motivators and barriers, and analyzing the impact of tourism on arts attendance. The Wallace Foundation takes a city-based approach to its arts funding to help improve arts participation across a whole community. Wallace chose Philadelphia as one of four sites for this effort because of the city’s high concentration and variety of arts organizations. The city stood out among other sites because of the robust collaboration among local funders and arts organizations around informing and supporting cultural participation. San Francisco is the other city chosen for Wallace Excellence Awards grants in 2007. Chicago and Boston were chosen in 2006. Peggy Amsterdam, President of the Greater Philadelphia Cultural Alliance commented, “The Wallace Foundation’s passion and commitment to the arts has transformed arts participation across the country. Having the Excellence Awards recognize Philadelphia arts institutions brings national acclaim to the excitement and vitality of the city’s arts organizations and their impact on this incredibly vibrant city.” In addition to the learning network, the Wallace Foundation also named ten organizations as recipients of their Excellence Awards. The organizations, who received grants ranging from $320,000 to $750,000, for a total Foundation investment of $5.3 million. _______________ ###
New DVG Staff to Serve County Members (9/6/07) 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 (5/17/07) 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 (1/19/07) 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 (1/17/07) 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. _______________ ### 2006 ********************************************** President Signs Pension Bill Containing Charitable Provisions (8/17/06) 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 (8/7/06) 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 (2/1/06) 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 (1/19/06) 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. ### 2005 ******************************************** DVG Joins World Community Grid (12/19/05) 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 (11/22/05) 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 (10/5/05) 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 (9/7/05) 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 (7/28/05) 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 (6/25/05) 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 (5/13/05) 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 (4/11/05) 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 (3/29/05) 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 (3/1/05) 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. ###
DVG Hosts 17th Annual Meeting (1/18/05) 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 (1/20/05) 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 of the highest standards of practice for philanthropy in service of the public good. ### DVG
Welcomes New Directors and Officers Three new directors were elected to serve their first three-year term: Laura Boyce, United Way of Southeastern Pennsylvania; Victoria K. Flaville, Connelly Foundation; and Eden Kratchman, ACE INA Foundation. Laura Boyce has been with the United Way of Southeastern Pennsylvania for 10 years. In her current role as Director of Network Relations, she is responsible for developing and directing implementation of funding and capacity-building strategies for United Way’s network of agencies throughout the Greater Philadelphia region. Prior to joining United Way, Laura worked for Scott Paper Company as Manager of Public information, where she created and implemented media relations strategies to gain exposure for Scott’s programs, policies and products, and coordinated employee/community involvement programs. Victoria K. (Kim) Flaville has been with the Connelly Foundation since 1991, and currently serves as Vice President for Administration and Secretary of Executive Management Committee. Among Kim’s many duties, she works closely with the CEO in developing the Foundation’s vision, goals and objectives; develops new policies and procedures that strategically target the Foundation's grantmaking; and manages several educational initiatives focused on technology and staff development operating in elementary and secondary schools. Previously Kim served in the Office of General Counsel and Corporate Secretary at Crown Cork and Seal, where she worked closely with Connelly Foundation’s founder, John F. Connelly. Eden Kratchman joined ACE INA Holdings in March 2000 as Assistant Vice President for External Affairs, and in January 2001 was appointed to the position of Executive Director of the ACE INA Foundation. Eden directs the foundation’s work in support of educational and community organizations and cultural institutions in Philadelphia and throughout the United States, and also established and manages the company’s employee community volunteer programs. Prior to joining ACE INA, she served as director of operations for the City of Philadelphia during the Rendell administration and as event manager for the Philadelphia Convention and Visitors Bureau’s Welcome America! celebration. "We are delighted to welcome these talented individuals to DVG’s Board,” said DVG Executive Director Dale Mitchell. “As the region’s only professional association serving grantmakers, our directors must be representative of the broad diversity of philanthropic organizations included among DVG’s members. Each of these new directors brings with her a unique perspective and valuable experience that will benefit the organization’s governance and ensure that we continue to meet the needs of our membership.” Beth Feldman Brandt, Executive Director of the Stockton Rush Bartol Foundation, was elected to serve as the association’s new President, replacing Brian McPeak, Rohm and Hass Company. Directors also approved to serve as officers for the association in 2004 are: Vice Presidents Denise McGregor Armbrister, Director, Wachovia Regional Foundation and Bruce Melgary, Executive Director, The Lenfest Foundation; Secretary Louis J. Beccaria, Ph.D., President and CEO, Phoenixville Community Health Foundation; Treasurer Nancy Burd, Senior Director, Nonprofit Finance Fund; and Assistant Treasurer Helen Davis Picher, Director of Evaluation and Research, William Penn Foundation. Approved for a second three-year term was R. Andrew Swinney, President of The Philadelphia Foundation. Continuing directors for DVG are Fernando Chang-Muy, Allen Hilles Fund; Melissa Weiler Gerber, WOMENS WAY; Jeffrey Gordon, PECO Energy; Robert P. Haigh, Lancaster Osteopathic Health Foundation; Susan Heckrotte, Independence Foundation; Geoffrey Jackson, Fourjay Foundation; Diane Melley, IBM Corporation; Kate D. Moore, PNC Financial Services Group; Kimberly C. Oxholm, Campbell-Oxholm Foundation; Cathy M. Weiss, Claneil Foundation. ### DVG Staff Meets with Congressman
Jim Gerlach During this year’s Foundations on the Hill, Mitchell and Laepple called on Congressman Jim Gerlach and his Legislative Director Bill Tighe to discuss issues surrounding philanthropy in our region, and specifically in Pennsylvania’s 6th District, which includes parts of Berks, Chester and Montgomery Counties. Congressman Gerlach has a strong connection to the work of DVG members through his involvement as a board member of the Brandywine Health & Wellness Foundation, a health conversion foundation serving the Coatesville area that works to reduce the number of uninsured, fight pervasive barriers to care, and help residents afford the medicines they need. Because of this affiliation with BHWF, Congressman Gerlach expressed an interest in working with DVG’s health conversion foundations around a specific regional need. He suggested that input from various community health needs assessments could be used to prioritize regional needs and then, working together with DVG’s health conversion foundations, develop an appropriate process for drawing down federal dollars to match private dollars in addressing those priority needs. Congressman Gerlach indicated his willingness to meet with interested
grantmakers sometime in the near future to talk about how he might
work with DVG members to facilitate this effort. ### DVG Delegation to Participate
in 11th Annual Foundations on the Hill DVG believes that participation in this year’s event is especially critical for members of DVG. Recent months have seen a heightened scrutiny of the philanthropic sector by both Congress and the media. In addition, specific legislative efforts of the past year (including H.R. 7 in the House, the CARE Act in the Senate, and the Sarbanes-Oxley Act) have raised issues about the 5% payout requirement for private foundations and challenged the ethics of certain practices within the field. Combined these have resulted in a climate that makes it more important than ever for grantmakers to build relationships with their elected officials to help them understand and appreciate the value of private giving to their constituents, and reinforce the message that private philanthropy alone cannot "fill in the gap" where federal, local and state governments are cutting funding to important social programs. DVG is pleased to join forces with its colleague organizations from around the country for this chance to inform members of Congress about the many good works of our member grantmakers and the valuable contributions that philanthropy makes to the people in our communities.
### Dale Mitchell Announces Her Retirement; Search Committee Formed In December 2003, DVG’s Executive Director Dale Mitchell announced her intention to retire from her position effective June 30, 2004. When Dale joined DVG in November 1995, following 30 years with IBM Corporation, she was no stranger to the organization, having been a founding member of DVG and President of the Board of Directors for three years. Under her leadership, DVG has grown both in members and in stature, positioning itself as the leading voice for philanthropy in greater Philadelphia and neighboring regions, while continuing to focus on providing high-level services to a diverse and growing membership. A Search Committee comprised of DVG’s Board leadership has been formed to manage the process and timeline for finding a new Executive Director for DVG. Co-chaired by incoming Board President Beth Feldman Brandt, Stockton Rush Bartol Foundation, and immediate past President Brian McPeak, Rohm and Haas Company, the committee convened their first meeting on January 12, 2004 and developed a position description that reflects the skill sets required to address the organizational priorities set by the DVG Board in July 2003. Now posted in the Job Corner of DVG’s website, the job requirements emphasize skills such as relationship building, networking, communications, fundraising, marketing, as well as an understanding of the philanthropic sector and nonprofit issues in the region. Resumes will be accepted until March 1st, after which the committee
will begin the screening and interview process. The top candidate
will be selected by the Search Committee and recommended to the
full DVG Board of Directors in May for their approval, and assume
his/her responsibilities on or after June 15, 2004. ### Charitable Giving Legislation
Stalls in Senate According to IS, Senate Republican leaders have tried twice to get a "unanimous consent" agreement to send the CARE Act along with a tax package, including child tax credit refund legislation and the extension of several expiring tax provisions, to conference with the House. In the last attempt Friday night, Democratic Senators objected to the agreement, protesting that they have been excluded from active conference negotiations. The Council on Foundations reports that the "holds" on moving the legislation into a conference committee before Congress recesses for the holidays are due to what can best be described as “end of the session politics.” With Majority Leader Bill Frist (R-TN) proposing a target adjournment date of November 7, both IS and COF have issued a call to the philanthropic and nonprofit community to contact their Senators and urge them to resolve these differences in order to move this legislation forward before Congress adjourns for the year. Grantmakers interested in taking action on this issue and need to find information about reaching your Senator, visit DVG’s web page entitled Contacting Your Elected Officials or call the Capitol switchboard at 202-224-3121. If you have specific questions regarding the status of this legislation, you can visit Independent Sector or Council on Foundations online, or contact their legislative/government relations staff as listed below.
###
DVG 2003 Conference "Accept Change, Embrace Innovation"
Draws Raves and Record Crowd Keynote speaker Clara Miller, President and CEO of the Nonprofit Finance Fund, spoke eloquently on the need to overhaul the financial structure of the sector in order to support flexibility, sustainable growth, management efficiency, and program quality. Miller joined a distinguished group of regional panelist for a lively discussion, moderated by Christine James-Brown, CEO of the United Way of Southeastern PA, about the challenges of the current environment and how funders and nonprofits are adapting their work to leverage resources. Following a networking lunch, attendees regrouped in the afternoon for a dialogue on the power of public/private partnerships. DVG has received enthusiastic feedback to the program. In an online evaluation survey of the conference, attendees identified the most valuable aspects of the event as networking (and networking, and networking….), the opportunity to hear quality speakers, the thoughtful exchange of ideas, and the focus on the local perspective. Additional comments from the survey included:
Major support for the event was provided by Wachovia
and the Independence Foundation. In addition, over
60 nonprofit executives and board members were able to attend the
event courtesy of scholarship funds made available by over a dozen
DVG members. (Click
here for a complete listing of contributors.) ###
U.S House of Representatives
Passes Charitable Giving Legislation This legislation contains several major provisions that, if enacted into law, will have a significant effect on private foundations. The language contained in Section 105 of the bill calls for a reduction in the excise tax to a flat 1%, which could benefit many foundations, and an increase in the penalty tax on self-dealing from five to 25 percent. A controversial provision that would have disallowed administrative expenses to be treated as qualifying distributions has been further defined to exclude any “administrative expense which is NOT directly attributable to direct charitable activities, grant selection activities, grant monitoring and administrative activities, compliance with applicable Federal, State, or local law, or furthering public accountability of the private foundation.” Other restrictions on compensation to “disqualified persons” and travel expenses were also included. Other major provisions of the bill also allow for: Currently the bill calls for an effective date for taxable years beginning after December 31, 2003, but the Council on Foundations reports that this date is expected to be modified to December 31, 2004 in order to give the IRS time to put the necessary regulations in place to enforce the new rules. Differences in the two bills -- H.R. 7 and the Senate version, S. 476, the CARE Act -- will be reconciled in a conference committee led by the Senate Finance Committee Chairman Charles Grassley (R-IA) and House Ways and Means Committee Chairman Bill Thomas (R-CA). According to the Council on Foundations, the big debate during this conference committee is expected to be over the issue of paying for the bill. The Senate version has an estimated cost of $14.6 billion. Revenue-raising provisions intended to reduce tax avoidance achieved through corporate transactions and bookkeeping practices would offset all but $1.4 billion of the cost. However, the House version, with an estimated cost of $12.7 billion, has no revenue raisers or offsets. >>For more detailed information on all these provisions, link to the Legislative Update page of DVG’s Web site.
"Accept Change, Embrace
Innovation" theme for DVG 2003 Annual Conference on October
9th The central premise of the conference is that while we cannot control the uncertainty that governs our work today, we can control how we respond to it. Although it’s tempting in these tumultuous times to focus on short-term fixes, what's needed now is attention to long-term solutions that capitalize on our talent, intellect, and creativity to stretch limited resources for maximum impact. Our 15th annual conference will look at how grantmakers and nonprofits alike are already finding smart new ways of doing business and taking on new roles – as innovators, conveners, influencers, advocators, collaborators and knowledge builders - to advance their missions and meet the critical needs in our communities. The agenda for our day-long program will feature: Printed invitations will be mailed shortly after Labor Day, and our Web site will be continually updated with further event details as they become available. To learn more, visit the Annual Conference section of our Web site. ###
Charitable Giving Holds Steady
Despite Economic Downturn The biggest increase in giving was by corporations, estimated to have grown by 10.5 percent to $12.19 billion, from a revised estimate of $11.03 billion for 2001. Adjusted for inflation, this is growth of 8.8 percent and accounts for 5.1% of total giving. Giving by individuals remained by far the largest source of charitable dollars, totaling $183.73 billion, accounting for 76.3% of total giving in 2002. Data reported by the Foundation Center places giving in 2002 by all foundations - including independent, community, and operating foundations - at $26.9 billion, a decrease of 1.2 percent. Adjusted for inflation, this is a decline of 2.7 percent. Grantmaking by foundations represented 11.2 percent of all estimated giving in 2002. The remaining 7.5 percent of the 2002 giving was through bequests, estimated at $18.1 billion, up 2 percent from a revised estimate of $17.74 billion in 2001. Adjusted for inflation, this is growth of 0.4 percent. The overall estimate for charitable giving in 2002 is 2.3 percent of gross domestic product. This figure is comparable to giving as a percentage of GDP in the past several years, which were estimated at 2.4 percent in 2001, 2.3 percent in 2000, and 2.2 percent in 1999. The report, which is researched and written at the Center on Philanthropy at Indiana University, is based on original surveys of organizations and econometric studies using tax data, government estimates for economic indicators, and information from other research institutions. For further information on the study from AAFRC, link to the press release for Giving USA 2003. You can also find additional statistics on Philanthropy in our page on Philanthropy Facts and Figures. ### Proposed Legislation
Sparks Debate on Private Foundation Payout The Council on Foundations, a national association for grantmakers based in Washington, D.C., contends that, if passed, the bill would have a severely negative effect on the operations of many private, non-operating foundations by forcing them to choose between efficient and effective grantmaking or what amounts to an increase in the required payout rate. By eliminating administrative expenses as part of the qualifying distributions, the bill would effectively increase the 5 percent payout requirement. The Council argues this would not only affect foundations' ability to peform the due diligence necessary to effectively carry out their charitable work, but would erode foundation endowments, making difficult or impossible for them to exist in perpetuity. In response, the National Committee for Responsive Philanthropy has issued a report claiming that congressional legislation to tighten the rules governing foundation payouts would result in billions of dollars in additional grants to charities each year. The report maintains that the average annual payout among foundations would effectively increase to 5.4 percent of assets, which the NCRP considers sustainable. The Council on Foundations disputes many of the claims made by NCRP, noting that their report includes both private and operating foundations in their calculations. In a June 8th editorial entitled "The Life and Death of Foundations," the New York Times notes that while there have been conflicting reports published on the potental impact of the legislation, the proposal has not had any hearings in the House, and urges Congress to "explore the consequences more carefully before making a potentially momentous decision." (Subscribers to the New York Times online can link to the article by clicking here.) On July 11, 2003, an op-ed piece by Hodding Carter, III, former journalist and current president and CEO of the John S. and James L. Knight Foundation, appeared in the Miami Herald. The article articulates very clearly why this issue merits attention but is not ripe for legislation at this time. For the latest updates on H.R. 7, link to our Legislative Update page or see the Council on Foundations’ Call to Action. ### Corporate Citizenship in
the Spotlight ### DVG Convenes Members
to Discuss War/Peace DVG members interested in learning more about the discussion should contact Diana Loukedis at 217-790-9700 ext. 3 or diana@dvg.org. To view a sample list of charities providing relief aid in Iraq, link to the Chronicle of Philanthropy. Read the article from On Philanthropy>>"Rebuilding Iraq Through Corporate Philanthropy" (4/25/03). ### Senate Passes Legislation
to Spur Charitable Giving To read more about this important legislation and its provisions, link to our Legislative Update. ### DVG
Launches New Web Site with Added Benefits for Members, New Givers
Designed especially with our members in mind, the new site will feature an enhanced DVG Members Area that contains a wealth of new resources and features just for our members. Included in this password-accessible area is our first Online Member Directory, with contact information and profiles for each grantmaker in the DVG network, as well as a collection of resources and sample documents, calendar of events, discussion forums and more. Another highlight of the site is our greatly expanded resources for new givers. People just getting started in philanthropy can browse "About Grantmaking and Philanthropy" for a primer on philanthropy and view additional information and tools available to help them learn more about their giving options. The "Knowledge Resources for Grantmakers" section was also added to provide both new givers and more experienced grantmakers with useful references and links to increase their knowledge and understanding of philanthropy. Brand new is a section containing Public Policy Resources, which will help grantmakers learn more about why public policy is important to their work and what pending legislation may have an impact on their grantmaking organizations. Information is also available for policy makers to help them better understand how philanthropy benefits their constituents and how grantmakers can serve as a knowledge resource on important issues. Popular features of our previous site that we've redesigned include our:
We hope you will find our new site easy to use and
filled with the philanthropy and grantmaking information you are
looking for - and maybe some you're not! Please take a few minutes
to browse our new site and let us know what you think. While we
have made great improvements to our online presence, we are eager
to hear your ideas about other news, information or resources you
would like to see on our site. Please send your comments and suggestions
to Amy Seasholtz at amy@dvg.org. ### Members
Elect Leadership at Annual Meeting "We are absolutely delighted to welcome a new generation of leadership to DVG's Board," said Dale Mitchell, DVG's executive director. "As a professional association for grantmakers, we are constantly striving to include the broadest representation of our membership among the directors to ensure the organization's governance is reflective of those we serve. Joining our already outstanding group of directors, these five new members bring a wealth of knowledge, skills and experience that will ensure our organization continues to meet the needs of our diverse membership." Officers of the executive committee were also elected. Brian
McPeak, Manager of Contributions & Site Public Affairs
at Rohm and Haas Company, was voted to his second term as DVG's
President. Directors also approved to serve as officers for 2003 are: Vice President Denise McGregor Armbrister, First Union Regional Foundation; Secretary Louis Beccaria, Ph.D., Phoenixville Community Health Foundation; Treasurer Beth Feldman Brandt, Stockton Rush Bartol Foundation; and Assistant Treasurer Evette Lucas, Fannie Mae Foundation. In addition, the membership paused to recognize the valuable contributions of three Board members who recently completed their terms of service. Departing from the Board are: Joni Carley, the Joseph L. Carley Foundation; Regina Hager, PNC Financial Services Group; and Christine James-Brown, United Way of Southeastern Pennsylvania. During her tenure, each of these directors demonstrated outstanding leadership and a strong commitment to DVG's mission. Although these women will no longer serve in an official capacity, Dale Mitchell commented that she will continue to seek their wisdom and advice to help guide the organization's activities. New
Members Join DVG We are also pleased to add to our membership roles The St. Joseph's Health Ministries (Lancaster, PA), which joins our growing number of "health conversion" foundations, formed from the sale of a nonprofit hospital to a for-profit corporation, with the proceeds used to establish a foundation to benefit the local community. In response to the increase in the number of these health foundation members in the past year, DVG has created a Health Conversion Foundation Affinity Group in order to provide these colleagues with a forum to share knowledge and best practices. The addition of these three organizations brings to 18 the number of new members that DVG has attracted since January 2002. According to DVG's executive director Dale Mitchell, "We are delighted to be able to continue growing our membership despite these difficult times. Now more than ever, funders need to make every dollar of their community investment count, and DVG is committed to providing funders of all types with the connections, tools and resources they need to make their grantmaking as effective as it can be." ### |
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