The biggest challenge facing the foundations I interviewed is how to make the most of their cherished freedom and independence- although they were already becoming increasingly preoccupied with the growing implications of the credit crunch.
Foundations learn a lot about what works through the projects they fund and are then well-placed to influence policy and increase their impact. The Joseph Rowntree Foundation has well developed processes for this, although their new director, Julia Unwin, is keen to avoid the potential criticism of ‘all talk and no action’. Peter Kilgariff, chief executive of the LankellyChase Foundation, who chairs ACF’s Penal Affairs Special Interest Group, would like to see foundations having a more effective dialogue with policymakers through the auspices of ACF.
An important aspect of influencing policy is to build the capacity of the sector to get its voice heard. Linda Kelly, chief executive of Lloyds TSB Foundation, is keen to ‘facilitate the voice of funded charities, but not to be the voice’. The Baring Foundation’s Strengthening the Voluntary Sector programme aims to promote the independence of the sector, whilst the Northern Rock Foundation provides training for grantees to increase their effectiveness. The Paul Hamlyn Foundation is keen to fund ‘edgy’ organisations that will influence policymakers.
Most of my interviewees were clear they wanted to their funding to be distinctive from government through filling gaps, adding value and exploring new areas, rather than topping up or replacing government funds. But some, like the Jack Petchey Foundation, were quite willing to match government funding through support for an Academy school.
Many foundations are becoming increasingly specialised, narrowing their focus through programmes dedicated to specific issues and simultaneously awarding larger, and therefore fewer, grants. The Esme Fairbairn Foundation is bucking the trend by devoting two thirds of its funding to an open programme. Dawn Austwick is keen they ‘go where their noses tell them to go and respond to the interests of applicants’. So far, they have had a fourfold increase in applications.
Finding ways of keeping fresh and relevant was cited as one of the key challenges facing foundations. Many are moving to open recruitment for their boards. Some use advisory groups (City Parochial Foundation) or strategy groups (JRF) as a way of involving a wider range of perspectives in their work- something which is particularly important given their low staff turn-over.
The foundations I interviewed all talked about the importance of ensuring they made a significant impact. Increasingly, they are using mechanisms like the Woburn Place Collaborative (focussing on social change) and the Intelligent Funder Forum (focussing on good practice) to share learning about the best way of making a difference. Clare Thomas, Chief Grants Officer of the City Bridge Trust and Chair of ACF, welcomes the growing interest in collaboration. My interviews suggest there is no shortage of good ideas to share.
Richard Gutch is an Associate at third sector recruitment agency, Prospectus. He interviewed the directors or chief executives of the Baring, City Bridge, City Parochial, Esme Fairbairn, Jack Petchey, Joseph Rowntree, LankellyChase, Lloyds TSB, Northern Rock and Paul Hamlyn Foundations.
Richard Gutch
Prospectus Associate
20 October 2008
