What We’re Talking About: Hot Topics from SCG’s FFIX Groups
Family Foundation Information Exchange (FFIX) groups are an integral part of SCG's family philanthropy programming. For almost twenty years, FFIX meetings have held the same structure: half of the gathering explores a topic suggested by the group, ranging from grantmaking practices to family dynamics; the other half is spent sharing ideas, problem-solving, and celebrating successes. Today, four active FFIX groups meet five times a year to engage in these conversations rich with questions, feedback, and abundant expertise.
In this blog, I want to share some of the common themes I've heard from our FFIX groups this year. I believe that sharing a few of these high-level topics might benefit our broader family philanthropy community. However, I will note that FFIX groups are safe and private spaces for these intimate conversations. All our conversations are confidential, and this tenet is strictly adhered to by all groups. This blog will NOT disclose any information about our FFIX groups or members.
This year, our FFIX groups have discussed many topics, ranging from leadership transitions, perpetuity versus sunsetting, challenges with DEI strategies, and affordable housing. It's interesting to note that often, half of these topics are outward-facing, meaning they are centered on work in the community, and the other half are inward-focused, delving into issues centered on foundation operations. This push and pull between both arenas and their interconnectedness is often unique and central to the daily work of family philanthropy. It has also led to specific insights relevant to family foundation practices.
Supporting the Culture of a Nonprofit Organization
One prevalent topic this year has been a discussion on how family foundations can best support the culture of a nonprofit, which can often be misunderstood as capacity-building. Capacity building has been in the lexicon of philanthropy for several years and is now even considered a core term in "philanthro-speak.' However, this term holds an inherent power dynamic wherein the foundation knows better than the nonprofit.
Our family philanthropists feel that finding the best avenues of support for their grantees must go beyond the concept of capacity-building and the popular trust-based approaches — it requires acknowledging the nonprofit's culture. For our discussion here, culture encompasses more than an organization's mission statement and programs. It includes executive, staff, board leadership, fund development, communication and outreach strategies, and programs.
Below, you can find some insightful observations from our FFIX members on how family philanthropists can support the culture of a nonprofit.
Support the nonprofit leader. The leader sets the tone for the organization.
Unsurprisingly, nonprofit success is directly related to the strength of its leader. Family philanthropists are known for establishing long-term relationships with nonprofit executives. But how often do they give the ED honest and constructive feedback? Remember, small organizations are started by passionate people. For example, a charismatic leader who can attract donors may not always know what they are doing organizationally and vice versa. FFIX members suggest that philanthropists not shy away from these conversations. They have an opportunity to support the individual leader and the entire organization.
Establish communication expectations at the beginning of a grantee relationship.
Every foundation has its own expectations, making it difficult for nonprofit leaders. Establishing a cadence of open communication early on makes it easier for the nonprofit to succeed. FFIX members recommend clarifying what information is critical to communicate, such as programmatic and budget shifts and also key staff changes. Good communication is probably the most crucial aspect of developing trust with a grantee and cannot be overlooked.
Removing hurdles and reducing fear.
In addition to streamlining the grantmaking process and reducing grant reporting, which many of our family foundations have done, foundations need to help nonprofits reduce their fears. For example, will they lose funding if they don't meet the foundation's expectations? What will happen if a key staff person leaves? Open, frequent communication with leadership goes a long way in illustrating a funder's support. Additionally, funders can focus on being excited about the nonprofit's wins rather than making them feel they must defend their work.
Final Thoughts
Notably missing in the above list of recommendations is direct funding. While sharing the good news about grantees is common in our FFIX group meetings, sometimes it's worth remembering that we can connect nonprofits with our vast community of family foundation peers. Let's share our network of grantees. After all, family foundations excel here! We can help nonprofits by being a conduit to other funders.