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2006 Annual Meeting - Philanthropy: Art or Science?

Remarks by Elizabeth Smith, Executive Director, Hyams Foundation; Chair, Associated Grant Makers

The theme of my brief remarks today is WHY, in our busy, hectic, “multi-tasking” and “multiple priority” lives, with more nonprofit organizations than almost any other state in the nation, does a membership association of grantmakers matter? Why should we take the time to be here today? WHY AGM?

I want to begin by telling a personal story…..

As most of you know, the Hyams Foundation moved to a new location recently and for about a week we were “officeless”. Now any office move is disruptive, but this was far more than we had bargained for. So, with preparing for my own board meeting this coming Friday, finishing the Hyams 2005 audit, completing a search for a new program officer and the demands of a process to select new trustees, I was feeling on overload.

So, this past Saturday, I came into the office to try to “sort out” my professional life and began by sitting on the floor of my new office surrounded by piles, and I mean piles, of articles, publications and memos. Now, as my staff knows, sadly but truthfully, I always have piles of paper in my office! But they are highly organized piles of paper! I have always known exactly where things are, and my staff even comes to me to find things! But this was not the case in my new office – the piles had been totally disrupted, and I was feeling extremely disorganized and ineffective.

Now while I was sitting on the floor doing this sorting, I realized that I needed to be writing what I was going to say at the AGM annual meeting on Monday. I had been thinking about this some and remembered the wonderful set of remarks that Kathy McHugh had made last year, but I was coming up with very little. I knew that what I said did not need to be anything earth shattering or provocative because Emmett Carson would be there, and I could NEVER outdo or even equal Emmett because he is one of the most articulate philanthropists in the country who, on occasion, also says something provocative!!

I then realized that sometimes out of chaos and personal challenge comes even greater clarity of thinking and purpose. My own situation was forcing me to be clear about why I do care deeply about AGM, and why I devote the time that I do to it.

The most important reason is that I believe firmly and deeply in the collective value of philanthropy and in collaboration. Now, for most of us, there is nothing in our own organizations’ charitable mandates that requires us to work together. In fact, beyond the basic laws that guide us, there is nothing that really says that we have to be strategic, or effective, or open and transparent, or supportive of high standards, or anything like that.

But then I look at AGM’s history and what it has nurtured since its beginnings in 1969, and I see many examples of how funders have come together for greater impact – whether it was to pool funds such as the Summer or Emergency Loan Fund, to learn about the newest issues or emerging areas of interest, to address certain threats to philanthropy such as the Istook Amendment, to promote the need for stronger ethics in the field, or to provide information to nonprofits about philanthropy so that they and we can do our work more efficiently and effectively.

Through my own work at Hyams and now as chair of the board of AGM, I truly embrace the value of our working together as a field, and I really enjoy working with all of you to see how we can make things better. As a membership organization, AGM IS me and you and you, and what we ultimately can accomplish is what we decide to do together.

This said, since I came to Hyams 26 years ago, the local philanthropic landscape has changed dramatically, with many more new and larger mostly family foundations, fewer long-standing corporate giving programs and emerging philanthropy within newer industries. Meeting the needs of this varied and complex field is challenging, but it also is energizing.

Why? As an independent foundation, Hyams (and please allow me to exaggerate for a bit because this is not really how I want Hyams to be perceived) can basically fund what it wants and do what it wants to do. It does not really have to care what the community or its grantees think of it, in large part because Hyams is not out there raising money.

But with AGM, this is not the case. For AGM to be successful, it has to be relevant to today’s philanthropic community. And I have found it fascinating and challenging to figure out what being “relevant” means. I have truly valued the feedback I have received along the way, and I have a wonderful group of colleagues on the AGM board who also care, a terrific and talented partner in Ron Ancrum as President of AGM, and a dedicated AGM staff who work to implement our collective priorities.

Given the current environment and multiple demands, it also is important that AGM make choices and that it LEAD. As AGM moves forward, I am excited that it will:

- continue to provide us with “state of the art” means of sharing up-to-date information, also allowing us to communicate with one another quickly and easily
- convene us on current issues that concern us, such as the recent upswing in youth violence or the continuing affordable housing and emerging mortgage foreclosure crises
- provide a public “voice” on the broader trends and issues in philanthropy; and, most recently
- play a meaningful role in increasing philanthropy’s ability to reflect the significant racial, ethnic, language, age and other diversity present in the communities we serve

I want to close by highlighting the new Diversity Fellows program, which has struck a cord with many of you as there is significant interest in having a fellow of color join your organizations. I want to thank Ron for resurrecting the Diversity Internship program, which began in 1992, and for making it a much stronger model (even though I was the one who worried that we might not be able to get it funded)! I also want to thank the Barr Foundation for its initial investment.

Foundation diversity is very important to me personally and to my own foundation, but it also is a true example of a challenge that will not be met unless there is collective action and resolve. The Diversity Fellows program is an important way for us to share resources and learning and to bring about greater change.

While we hope that this initiative will help to increase staff diversity over time, it will not address who serves on our boards, advisory boards or grant committees. Although we do not have diversity data for Massachusetts philanthropic organizations, recent Council on Foundations’ data show that philanthropic boards, like their staff, have changed over the past 20 plus years, having gone from being 77% male and 96% White in 1982 to 65% male and 89% White in 2002/03. But given the reality that our country is now at least 30% individuals of color, and I think 50% men and 50% women, there is room for additional change.

So, AGM and its members have an even greater opportunity to embrace the rich diversity that surrounds us, to build new leadership and to leave philanthropy a stronger and more effective field in the future.

Again, I want to thank each and every one of you for coming today. Please don’t hesitate to call me, my fellow board members or AGM staff about AGM! We may not be able to respond to every suggestion, but each and every one is valued, and they will help to strengthen AGM’s work in the future.