Galvanizing Philanthropy

Philanthropic organizations, exempt from the accountability imposed on business by markets or on government by voters, are free to experiment and take risks. But they have little experience in objectively evaluating their own performance or figuring out how to improve it. Regardless of the economic climate, the authors say, developing a philanthropic strategy is an iterative process - one they've labeled "getting clear, getting real, and getting better." Getting clear means selecting a few strategic anchors - people, problems, or philosophies the institution truly cares about - and using them to guide decisions about programs and grantees. In addition, hard evidence should be examined in light of values and beliefs. Getting real means pragmatically assessing the resources and time required to bring about desired change and soliciting candid feedback from the field. Getting better means regularly reviewing the organization's entire funding strategy in light of both outside perspectives and nonfinancial assets. Ditkoff and Colby outline the traps that funding institutions must avoid if they are to optimize their resources and organizational outcomes, and they offer stories from the James Irvine, Bill & Melinda Gates, Annie E. Casey, David and Lucile Packard, and Edna McConnell Clark foundations as examples of success. The pursuit of excellence, they say, can be imposed only by philanthropic investors themselves.

• Change management
• Philanthropy