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Urban Grant Makers Should Explore Rural Affiliates

August 20, 2007, 4:04 pm

Private efforts to solve the problems faced by rural America could benefit from some help from government and large national foundations — and from patience that would allow rural community foundations to build up their endowments, writes Robert Thalhimer, on the Philanthromedia blog, in the wake of this month’s conference on rural philanthropy.

“Government is increasingly pressuring philanthropy to spend out its dollars rather than build endowments,” writes Mr. Thalhimer. “But pressuring nonprofits to spend down their endowments would rob rural areas of the ability to eventually build an asset base through which they can address their own issues with reduced outside help.”

Because so much of philanthropic giving is dependent upon bequests, and because the assets of rural Americans are often held in land rather than in liquid accounts, he writes, “building endowments in rural areas will take more than just time. It will take expertise.”

Mr. Thalhimer says in this area “urban neighbors can be particularly helpful if they have the systems and human capacity to establish rural affiliates.” Such arrangments, however, would require flexibility on the part of the “urban host,” he writes, to allow rural groups to respond to problems as they see fit.

See more coverage of the rural-philanthropy conference from the Chronicle. (A paid subscription or temporary pass is required.)

What do you think? What approaches work best for helping rural areas build up philanthropic wealth? Click on the comments link below this post to share your thoughts.

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