The Three P's of Effective Philanthropy
By Colton Strawser, The Community Foundation of Muncie and Delaware County
When telling people about what I do as a program officer for a community foundation, I am faced with a variety of challenges. Many people believe that I “give away money” and help “make the world a better place.” However, there are a variety of things people do not see. I do not have a giant checkbook sitting in my office and a printing press that can crank out more cash on a moment’s notice. While that would be nice, I have a budget and a board to report to; so every proposal that comes across my desk cannot be fully funded. Making community investments through grantmaking is a rewarding job, but it can be very challenging when trying to juggle a variety of obligations, expectations, and perceptions.
When I was asked to serve on a committee for the Indiana Philanthropy Alliance to create a training workshop for new and emerging grantmakers, the challenge was presented on how to compartmentalize the roles of a grantmaker for those that are new or emerging leaders in the area of grantmaking. The committee decided the best way to explain the role of the grantmaker is using what we are now calling “The Three ‘Ps’ of Effective Philanthropy” – Purpose, Practice, and People.
The purpose helps participants to understand the history of philanthropy, as well as the national and local infrastructure that supports philanthropy. It is important to understand the historical context of philanthropy, as well as contemporary approaches, in order to be an effective grantmaker. Understanding where grantmaking has been, where it is now, and where it may be heading in the future can assist grantmakers in directing philanthropic dollars more strategically.
Understanding the practice of philanthropy assists grantmakers in learning how to effectively manage the grant process, develop and communicate grant criteria, accept and review applications, conduct site visits, communicate fund decisions, and manage grant effectiveness. Grantmakers, especially in the program officer role, are simply decision givers—not decision makers—when it comes to the grant process. Therefore, it is important to have an understanding of the various legal requirements and ethical issues associated with managing grants, as well as what a staff member can and cannot do in a grantmaking role.
Lastly, people are an important component of effective philanthropy through grantmaking. Philanthropy is relational in nature, so it is important to learn how to develop positive relationships with internal stakeholders, such as your board, committees, and co-workers. In addition, managing external stakeholder relationships with grantees, potential grantees, and other foundations is imperative.
If you are interested in learning more about increasing your effectiveness in philanthropy using grantmaking, please consider attending the “Grantmaking 101: The Purpose, Practice and People of Effective Philanthropy” program hosted by the Indiana Philanthropy Alliance on November 10-11, 2016 in Indianapolis.
Colton C. Strawser is a program officer with The Community Foundation of Muncie and Delaware County. He is a graduate of the Indiana University Lilly Family School of Philanthropy.