Last Friday, Philanthropy Ohio President & CEO Suzanne T. Allen, Ph.D., testified in support of HB 128, a bill that would create a tax credit for Ohio taxpayers who donate to endowments at eligible community foundations. The bill was introduced by Representatives Barbara Sears and Ron Amstutz, along with nine of their House colleagues. Both Reps. Sears and Amstutz supported the bill last year, when it passed the Ohio House with broad bi-partisan support evidenced by its 84 – 9 vote.
You can watch the recorded hearing online: it begins with five witnesses from Hudson schools, including two sixth-grade girls. We were glad Suzanne didn’t have to speak directly after these young citizens: they were incredible witnesses who with great knowledge and poise explained why the House should not make any cuts to their district’s funding and went on to answer questions from committee members. By the end of their testimony, members from both sides were recruiting them to run in 2030 House elections.
Several Philanthropy Ohio members attended the hearing, leaving their homes early in the morning to arrive in time for the hearing’s 9 a.m. start and we appreciate their support: Brian Frederick (The Community Foundation of Lorain County); Keith Burwell (The Toledo Community Foundation); Marlene Cassini (The Delaware County Foundation); Michele Carey (The Greater Cincinnati Foundation); Erin Clemons (The Community Foundation of West Chester/Liberty) and Megan Wancyzk (The Foundation for Appalachian Ohio).
Ohio has a strong network of community foundations, starting with the world’s first one established in Cleveland over 100 years ago. These foundations support local nonprofits that address a wide array of critical needs; in 2012, they gave more than $340 million to fund initiatives in areas including education, health, human services, the arts and community development.
An endowment is a fund that invests donated dollars and uses only the interest generated from that investment to make grants. Because it uses only the interest and doesn’t touch the principal, these funds are sustainable sources of revenue in perpetuity. Endowment funds can be created to fund a specific nonprofit organization, a particular cause that is dear to the donor’s heart or any number of programmatic areas.
HB 128 would help grow these permanent funds through these provisions:
- donors who give $1,000 or less would receive a 50% credit on personal income tax, while those giving more than $1,000 would receive a 20% credit;
- the credit is non-refundable, so individuals wouldn’t get money credited beyond his/her tax liability in a given year;
- the credit is capped at $10,000 for an individual filer and $20,000 for joint filers;
- only community foundations in compliance with National Standards for U.S. Community Foundations (a rigorous accreditation process) are eligible for the credit; and
- the total pool of state dollars allocated for the credit is $20 million per year.
This last point is where the true power of the concept lies: if donors in Ohio use the entire $20 million available, that could provide $100 million in permanent funds – a 5-to-1 return. And, that $100 million would annually spin off $5 million in grants to nonprofits. With research that shows an $8 economic impact for each $1 of grant money, that means that Ohio communities could receive $40 million in benefits each year.
You can read more about the tax credit’s details as well as Suzanne’s testimony online and stay tuned for updates on the progress of the bill through the House.
Claudia Y.W. Herrold
I’m a Tom Peters fan, and have been since that day in 1982 when a graduate school professor assigned his new, best-selling book (In Search of Excellence) as required reading. I’ve since read all his books, disagreed with several, listened to him speak (and rant) in person and on cassette tape and subscribed to his weekly email blast.
His picture even sat on my desk, until a custodian refused to empty the trash can in my office. The custodian saw me with my husband, and assumed that I was being unfaithful to the man on my desk.
A recent email blast was particularly poignant. In it, Tom reminded me to “Never forget when exhorting your troops: ALL MOTIVATION IS SELF-MOTIVATION. PERIOD. (Boss ‘just’ creates platform, offers encouragement.)”
“All motivation is self-motivation.” That’s a powerful statement, and although I hadn’t quite looked at it through that lens, it is so very true. And while there are great books and articles that you and I have read, written by creative and highly educated folks that promise you can “Motivate Your Employees in 10 Steps with Pictures” or “Motivate Employees in Less Than 5 Minutes,” there’s more to it.
It is about self-motivation – not ten steps with pictures – and the more I think about Tom’s quote, the more I realize that he’s right again. It’s about believing viscerally in what we do and what we value that is motivating. I see this around the state in the offices, towns and cities of our members. In fact, in a recent lunch meeting a foundation president and I had a hard time having a conversation because so many people stopped to say hello and ask about some project the foundation is involved in.
In a tour of another foundation’s office, it was clear from the front door that the foundation cared about its employees and its grantees. There were pictures everywhere and the tour included explanations of many. The staff had pride in their work, a platform created by their leader (Tom calls this the “smell test” of organizational culture).
To quote from his 1982 book, “Our excellent companies appear to do their way into strategies, not vice versa. ‘Doing’ things (lots of experiments, tries) leads to rapid and effective learning, adaption, diffusion and commitment; it is the hallmark of the well-run company.”
So many, many of you around the state are “doing” great things and are examples of self-motivating platform- builders. You know what this intuitive thing is and that it’s the feeling we get when we are doing the right thing and are doing it for the right reasons at just the right time.
That’s the sweet spot for a leader, and if you’ve ever hit a tennis ball in the sweet spot on your racquet, or hit a golf ball in the sweet spot on your driver (the only sports I’ve ever played) you understand this – when you are motivated, that motivation radiates and builds the platform for encouragement. I could go on, but I want to hear from you. How do you motivate yourself so that you can be motivational?
Stay tuned, I’m expecting great responses!
Suzanne T. Allen, Ph.D.
Last week, Ohio philanthropy lost a passionate voice with the death of Mike Shinn. Mike was the founder and current secretary of the Shinn Family Foundation as well as secretary of Philanthropy Ohio’s Board of Trustees. He also chaired our Diversity, Equity and Inclusion Committee, taking on primary responsibility for guiding Philanthropy Ohio’s efforts in that arena. Mike joined the board in 2010, just a few years after starting his family foundation, which was headquartered in Cleveland.
Suzanne T. Allen and I were in Washington, DC, prepping for our visits to the Hill, when we learned of his passing last week. To say it was a shock is an understatement; Suzanne had lunch with Mike just a few days before, introducing him to Brittany Zaehringer (GAR Foundation) so they could talk about the diversity work he was leading at Philanthropy Ohio.
Mike started his business career at General Electric, having received his Bachelor of Science in Aerospace Engineering, and he stayed there until he retired in 1998 after 31 years of services as an engineer, manager and corporate staff consultant. He was a member of the National Society of Black Engineers, where he founded a Fellows Program; each year, a top scholar receives the Mike Shinn Distinguished Fellow Award from the society. Mike was also a certified financial planner, having written a nationally syndicated personal financial planning column, Your Money Really Matters, and earned his MBA from Case Western University.
In addition to his philanthropic efforts through the Shinn Family Foundation, Mike was also an active and respected community volunteer, devoting countless hours to a long list of organizations. Whether he was serving on the boards of the Shaker Lakes Nature Center or the Mt. Zion Congregational Church, the JumpStart Emerging Market Venture Capital Fund or the Kansas University Endowment Association, he was a dedicated and tireless philanthropist giving generously of his time, talent and treasure. I know there are many others who join me in honoring his life and legacy.
Claudia Y.W. Herrold
March is National Women’s History month and the perfect time for philanthropy to take a look at equality and what we all can do (men included!) to advance society by applying a gender lens to charitable giving.
Last week, Otterbein University, in partnership with Bowling Green State University and the University of Findlay, hosted a Women in Philanthropy Summit to start the conversation around improving gender equality by investing in women. A cohort of Philanthropy Ohio staff, students and our philanthropic peers from all over Ohio came together to hear about the staggering issues plaguing policies, workplaces and societies for women and girls across the U.S. and globe.
One of the highlights was Tuesday night’s keynote speaker, Dr. Musimbi Kanyoro, president and CEO of the Global Fund for Women. She shared the mission and goals of the International Women’s Fund as well as her own experience working to change treatment, opportunities, policy and future outcomes for women and girls worldwide.
Dr. Kanyoro said that for movements to succeed, they need capacity building and leadership. Many women have ignited change, and many girls have gained their voice – the kind of philanthropy that she’s proud of.
As for where to start, Dr. Kanyoro said to connect with a group doing good, and then take it to scale. You’ll recognize that social change has been attained when the issue is reframed, resources are invested, policies and regulations are improved and justice is achieved.
Another highlight of the event was on Wednesday morning, when we heard Katie Koch – the head of Global Portfolio Solutions International for Goldman Sachs United Kingdom – present research on what it’s like to be a female in a developing versus a developed nation. She shared the work Goldman Sachs is doing to improve the availability of small business financing and public policy when it comes to investing in women entrepreneurs worldwide.
“How can any country move ahead when leaving half of its population behind? 90% of countries had one or more gap in legal protections for women. Some countries had 10 or more,” Koch said. “Women make 45 cents on the dollar to men in the developing world. We have to prove to families that education is a good return on investment… more often boys are seen as an asset on the balance sheet, while girls are seen as a liability.”
Goldman Sachs launched 10,000 Women in March 2008, a global initiative to drive economic growth by providing 10,000 women a business and management education as well as links to networks, capital and mentors. By the end of 2013, 10,000 women from across 43 countries had been reached through a network of 90 academic and nonprofit partners.
“Investing in women and girls has the largest ROI for the developing world,” Koch said.
Wrapping up the summit, a panel of smart women leaders – including Shelly Bird, executive vice president, office of the CEO at Cardinal Health – answered questions posed by The Columbus Foundation’s Lisa Courtice, Ph.D.
“Investing in women and girls is the best philanthropic strategy. It strengthens families and communities,” Bird said. And her advice to girls: “Pull up a chair because no one is going to give up their seat.”
The summit left me with a full notebook as well as a mind full of thoughts and ideas to ponder. Gender equality and investing in women are topics that not only are increasingly popular among philanthropists and nonprofits, they are key to improving our community for women and men alike. We hope to continue the flow of conversation and great ideas at our conference in the fall, Philanthropy Forward ’15. So stay tuned!
In mid-February the U.S. House passed the America Gives More Act of 2015, just as it did back in July of last year.
As passed the bill would:
- Restore and make permanent the IRA Charitable Rollover provision, allowing individuals aged 70 ½ and older to make tax-free contributions from IRA assets to qualified charities;
- Reduce the tax private foundations pay from the complicated, two-tier structure to a simple 1 percent rate;
- Restore and make permanent an expanded tax deduction for small businesses that donate their food inventory, and expand to allow farmers and ranchers to take a deduction for donations of fresh produce, dairy, and meat; and
- Restore and make permanent an expanded tax deduction to promote donation of land for conservation purposes.
The vote was 279 to 137 – not veto proof – and largely along party lines. The bill now goes to the Senate, where prospects for quick consideration appear grim.
Philanthropy Ohio thanks Representatives Chabot, Gibbs, Johnson, Jordan, Joyce, Latta, Renacci, Tiberi, Turner and Wenstrup for their yes votes on the bill. We appreciate their support for the philanthropic sector and the critical work it does in thousands of communities across the country.
Claudia Y.W. Herrold
As one of Philanthropy Ohio’s membership services associates, it is my job to make sure our members (you) have access to the information and resources you need to be the most effective and successful at your job.
We all know that foundations, United Ways and funders play a very important role and do great work for our communities, but what if it you could do good, better?
That is why I’m so excited about the launch of the Get on the Map campaign.
Beginning this week, 20 regional associations, including Philanthropy Ohio, representing over 2,700 organizations and more than $38 billion in grantmaking will work with funders across the country to harness the data that supports our individual and collective work and enables all of us to tell a more accurate version of the story of philanthropy. Twenty Philanthropy Ohio members are already on the map, and now it’s your chance to get on the map, too!
The Get on the Map campaign encourages funders to share grants data using Foundation Center’s eReporting standard. Organizations that participate by submitting their data electronically will receive a free interactive map of their own grants to use as they wish. Delivered via Foundation Center’s Foundation Maps platform, the maps will provide funders with anytime access to timely information about the activities of their peers, regional funding gaps, potential collaborations and more.
Just imagine: rather than making dozens of calls, you’ll be able to sit at your desk and in just a few clicks, access an interactive mapping tool that gives you current information on who is funding what and where in your community. Now imagine being able to target populations and key elements of the actual grant — not just a list of recipient institutions and organizations.
Best of all, it’s free to participate and access the maps, as part of your Philanthropy Ohio membership.
So what are you waiting for? Visit our website for more information, and get on the map! If you have any questions about the Foundation Maps member benefit, please let me know!