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MANAGEMENT: International Grantmaking,
Pay-out and Corporate Structure
An $8 million foundation committed to assisting Jewish refugees
in the United States and Israel has relied on Philanthropy
Advisors for a full array of grantmaking, strategic planning,
board, and management services for over 20 years. Philanthropy
Advisors worked with the board of the Foundation, one of the
oldest Jewish foundations in the United States, to ensure
that the Foundation’s grantmaking and structure continued
to meet changing needs and circumstances.
Deciding to Engage a Consultant
During the 1990’s, when immigration to Israel from the
Former Soviet Union, Ethiopia, and Argentina was high, the
Foundation decided to deepen its commitment to Israel by increasing
its pay-out and sponsoring new initiatives to meet the unique
needs of the growing immigrant population. Philanthropy Advisors,
recognizing the value of regular on-site visits and on-going
dialogues with administrators to assess program performance,
advised the board that it should have a representative in
Israel to initiate and steward its grantmaking there. The
representative would identify new programs for possible funding
and forge partnerships and collaborations with other funding
sources and the Israeli government. The Foundation’s
board felt that such grantmaking could not be effectively
managed from afar or stewarded with only an annual visit by
staff.
Finding the Representative
Philanthropy Advisors guided the board in developing criteria
for selecting its representative. The board agreed it wanted
a representative who would honor the core values and traditions
of the Foundation and, at the same time, address Israel’s
present day needs, identifying and implementing meaningful
programs that would promote positive economic change for Israel’s
immigrants. Because the board wanted to maintain its own historic
independence, it asked Philanthropy Advisors to search for
a representative without institutional affiliation but with
extensive experience, a solid reputation, deep knowledge of
government and non-government immigrant resettlement programs,
sensitivity to Israel’s changing political landscape,
and competitive retainer fees and expenses. Through its network
of contacts, Philanthropy Advisors identified a well-regarded
consultant, who had broad experience with philanthropists
and non-profits; moreover, she had built an excellent track
record working with individuals and organizations on programs
aligned with the Foundation’s mission.
Benefits of Hiring the Representative
The on-site representative worked in collaboration with Philanthropy
Advisors staff to ensure that the Foundation’s support
remains responsive to changing immigration trends and the
needs of immigrant groups in Israel. Over time, the Foundation’s
program support shifted to educate and acculturate additional
newcomer populations including the Ethiopian aliyah
and Bukharian Jews from remote mountain communities. More
recently, the Israeli representative alerted the board to
the medical needs of the aging Israeli population, which prompted
the Foundation to pioneer support for a program that retrains
doctors from the Former Soviet Union to care for geriatric
patients.
Philanthropy Advisors worked closely with the Foundation’s
on-site representative to ensure that, as in the United States,
programs met their objectives and operated within their respective
budgets. When managerial failures occurred, unexpected results
altered outcomes, or the unpredictability of life in the Middle
East precluded efficient performance, the consultant arranged
for technical assistance to try to keep the program on track.
This collaborative approach offered an effective and efficient
way for a foundation of its size to make grants in Israel.
Conversion from Private Foundation
In time, the Foundation’s assets diminished due to its
pay-out policy of more than 5% in order to meet pressing needs.
On the advice of Philanthropy Advisors, the client board converted
the private foundation to a supporting foundation of a mission-aligned
non-profit organization, thereby reducing its administrative
expenses significantly.
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