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May 06, 2008

Council on Foundations
More Than Money: How Foundations Can Help After a Disaster

In the aftermath of a disaster, foundations can bring to bear more than just their grant dollars as they help communities rebuild, James A. Joseph, chairman of the Louisiana Disaster Recovery Foundation, in Baton Rouge, told participants at the Council on Foundations annual meeting. Mr. Joseph served as the council’s chief executive from 1982-95.

Grant makers can help local nonprofit groups in affected areas gain access to experts, data, and information about what has worked elsewhere, and foundations can use their own reputations to advance the work of those organizations, said Mr. Joseph.

“Foundations can use their social capital as a kind of collateral for those whose formal credentials and written proposals understate their potential and reliability,” he said. “A grant is a Good Housekeeping seal of approval that says to the larger community that this foundation has done due diligence and we find this organization credible, accountable, and effective.”

Foundations, said Mr. Joseph, are in a position to use their networks of contacts to encourage greater collaboration.

“Building coalitions will require that we work with, rather than simply on behalf of, those who suffer most in the crisis – mainly the poor and those who are marginalized because of color or culture,” he said.

With more than $500-billion in assets, foundations in the United States have more power – and more responsibility – than the amount of money they distribute in grants each year suggests, said Mr. Joseph. He encouraged foundation officials to think about how they use the other 95 percent of their endowments.

“Some thoughtful people in the field are beginning to ask: Should a private foundation be more than a private investment company that uses some of its excess cash flow for charitable purposes?” he said. “I am delighted that more and more foundations are beginning to put a larger share of their assets in the service of their mission.”

— Nicole Wallace

Tuesday May 6, 2008 | Permalink

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