Foundations
Philanthropy Journal of North Carolina
Member breakdown
Independent foundations make up
nearly a third of the membership of
the national Council on Foundations;
family foundations, make up one-
quarter of its 1,307 members.
June 1994
All in the family
Leaders call for linking family, community foundations
The Council on Foundations has
launched a study of how best to
meet the needs of family foun
dations, which account for more
than 320 of its 1,307 members.
Among the key suggestions so
far is to increase cooperation
between family and community
foundations.
By Barbara Solow
New York
C ommunity foundations rep
resent an untapped
resource for helpiug family
foundations grapple with issues
ranging from investing to training
the next generation of foundation
leaders.
At a strategy session on family
foundations hosted by the Council on
Foundations in New York City last
month, staff and board members of
family foundations called for
strengthening what are now often
weak links between community and
family foundations.
In response to a growing number
of inquiries from representatives of
family foundations, the Council has
formed a committee charged with
studying the needs of family founda
tions - which now make up one-
fourth of its national membership.
Tom Lambeth, executive director
of the Z. Smith Reynolds Foimdation
COUNCIL ON FOUNDATONS
1993 MEMBERSHIP BY ORGANIZAIION
ublic
5%
in Winston-Salem, is chairman of the
council’s new Advisory Committee on
Family Philanthropy.
Three other North Carolinians
are involved in the initiative: William
Bondurant, former executive director
of the Mary Reynolds Babcock foun
dation in Winston-Salem; David
Dodson, executive vice president of
MDC Inc. in Chapel Hill and a board
member of the Babcock foundation
and the Kathleen Price and Joseph
M. Bryan Family Foundation in
Greensboro; and Joel Fleishman,
Duke University’s former first senior
vice president and chairman of the
capital campaign who is now presi
dent of Atlantic Philanthropic
Service Co. in New York.
One reason the council is inter
ested in the issue is that family foun
dations now make up the largest seg
ment of organized philanthropy.
“There’s a projected intergenera-
tional transfer of wealth of more than
$700 billion by the turn of the centu
ry,” Lambeth says. “Presumably, that
will mean a continued growth of fam
ily foundations.”
At its first meeting earlier this
spring, the Advisory Committee set
three initial goals: developing a
“mentor program” for family founda
tion boards and staff; identifying
ways the Council can better meet the
needs of family foundations; and
identifying regional networks of fam
ily foundations.
At the recent strategy session at
the New York Hilton, board and staff
members of family foundations came
Look for FAMILY, page 7
Words of wisdom
Inundation conference produces
wealth of ideas
Here are some notable quotes from participants and speakers at the
national Council on Foundations conference in New York last month:
“Foundations should be seen as a
source of experience. You can convene in
ways that government cannot. There is a
whole lot you bring to the table besides the
investment of capital We need you to be
imaginative about the roles you can play ”
Heniy Cisneros, U.S. secretary of housing
and urban development.
Henry Cisneros
Mary Montcastle
“Private foundations should be out
there pushing the limits. We should be
getting blasted every once in a while...We
ask questions of our grantees all the
time. We’re sort of having to face that
ourselves a httle more.”
Mary Mountcastle, president, board of
trustees, Z. Smith Reynolds Foundation,
Winston-Salem
“How do you pass on the torch? In our
case, the teachings were more within the
family than the foundation itseh. The
foundation becomes the expression of
the values of that generation. It’s
stabilizing to have that dream, but it’s
dangerous to cleave to it.”
David Rockefeller Jr., chairman,
RockefeUer Financial Services Inc.
David Rockefeller Jr.
Beyond grantmaking
Foundations grapple with
issues of public trust,
outreach
When more than 2,000 members
of the national Council on
Foundations met in New York
last month, accountability and
effectiveness were key issues of
concern. Foundation leaders
say organized philanthropy is at
a crossroads and this is no time
for complacency.
By Barbara Solow
New York
P hilanthropic leaders from
across the country are
stru^ing with a fundamen
tal question:
Do the activities of foundations
contribute to solving the problems
facing American communities?
“That is not only a fair question
but one for which we have good
answers,” James Joseph, president
of the national
Council on Found
ations, told a gath
ering of foundation
leaders last month.
“These are good times for philan
thropy but this is not a time for com
placency.”
At the council’s annual confer
ence in New York, more than 2,000
board members, staff members and
other foundation representatives
met to take stock of their activities
and share strategies for more effec
tive grantmaking.
Built around the theme of “Phil-
CONFERENCE
anthropy and the Challenge of the
City,” the conference included visits
to New York neighborhoods and non
profits and appearances by such
notables as First Lady Hillary
Rodham Clinton and ABC News host
Hugh Downs.
Faced with greater public scruti
ny of their activities, many founda
tions are reexamining their commu
nications and management policies
with an eye to making them more
accountable.
Others are moving beyond tradi
tional grantmaking to new ways of
influencing pubMc policy
Among the developments dis
cussed at the conference were:
• The use of “action research
strategies” to spark public debate.
For example. Women and Found
ations/Corporate Philanthropy has
used a new report on grantmatog in
Boston to ch^enge the notion that
“universal fund
ing” strategies—
those that do not
distinguish be
tween programs for men and
women—are meeting the needs of
women and girls.
• The growing number of part
nerships between foundations, non
profits and local governments that
aim to bolster self-help programs in
poor communities.
• A council initiative designed to
identify the needs of family founda-
Look for CONFERENCE, page?
Tar Heel influence
North Carolinians
play major role
in national
conference
North Carolina wos well represented at the
Council on Foundations onnuol conference in
New York lost month. Among those who led
planning committees, workshop sessions or hosf-
CARR AGYAPONG: Senior progroms ond
communicfltiois olcec, Ihe Burroughs-Welcome
fund, Morrisville.
DONNA CHAVIS; Executive director,
Notive Americans in Philanthropy, Lumherton.
TONY DEIFELL: Director ond editor of
"From the Hip" documentary project, Durham.
DAVID DODSON: Executive vice president,
MDC Inc., fliopel Hill; Trustee, Mary Reynolds
Babcock Foundation, Winston-Solem, and The
Kothieen Price ond Joseph Bryon Family
Foundation, Greensboro; Choirmon, Council on
Foundation's Annuot Conference Committee.
JANE KENDALL: President, N.C. Center for
Nonprofits, Roleigh; Trustee, Bryan family
foundation.
TOM IAM8ETH: Executive Director, Z.
Smith Reynolds Foundotion; Chairman, Council
on Foundation's Adwsoty Committee on Family
foundotions.
VALERIA LEE: Program officer, Z. Smith
Repolds Foundotion, Winaon-Solem.
MARY MOUNTCASTLE; President and
trustee, Z. Smith Reynolds Foundation,
Development Associate, Ceoter for Community
Self-Hdp, Durham.
LINDA KAYE STOUT: Executive Director,
Piedmont Peace Project, Konnopolii
BRIEFLY
Foundations focus
on investing
Prior to the opening of the
annual Council on
Foundations conference in
New York City last month, a
group of foundations met
for the first time to shore
information on program-
related investing - a strategy
that has been used to build
"risk capital" in poor neigh
borhoods.
Aids funders
give film award
The film "Philadelphia," was
the winner of this year's
Humanitarian Leadership
Award from Funders
Concerned about AIDS. The
award is presented annually
for outstanding efforts to
promote compassion for
those affected by HIV and
AIDS.
Kenan Institute
funds arts in schaals
The Kenan Institute tor the
Arts in Winston-Salem has
pledged more than
$500,000 to expand the
North Carolina School tor
the Arts' program to about
25 public schools. The pro
grams weave art into cur
riculum through thematic
teaching, and has improved
student performance.
UNC alum funds
schalarships
Sam Winstead Jr. was the
first of eight Winstead chil
dren to graduate from
UNC- Chapel Hill. He and
two Dallas-based founda
tions contributed $400,000
to the Carolina $cholars
Program, a full scholarship
based solely on
academic performance.
Babcack funds
child care
The Mary Reynolds Babcock
Foundation in Winston-
Salem has awarded
$70,000 to the Association
of Community Development
Corp. tor its Equity and
Predevelopment Loan and
its Child Core Initiative.
Direct deductians
prapased
Congressman Michael
Huffington of California has
introduced a bill that would
allow Americans who do not
itemize on their tax returns
to take deductions tor chari
table contributions above 5
percent of the standard
deduction.