MANAGEMENT:
International Grantmaking, Pay-out and Corporate Structure
A private foundation committed to assisting Jewish refugees in the United States and Israel 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.
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.
