March 2, 2009 | Read Time: 2 minutes
The National Committee for Responsive Philanthropy, a foundation watchdog group, will push grant makers to give more money to help poor neighborhoods and minorities as part of a series of recommendations to improve philanthropy.
The Washington organization plans to hold a news conference Tuesday morning to unveil the recommendations, which are already stirring up controversy in the nonprofit world.
According to a draft copy of the watchdog’s “Criteria for Philanthropy at its Best,” it will urge foundations to give at least 50 percent of their grant dollars to benefit “lower-income communities, communities of color, and other marginalized groups, broadly defined.”
The organization says that 1 out of every 3 grant dollars supports such people and neighborhoods.
The group will also encourage philanthropies to provide more money to pay for charities’ operating expenses and to give at least 6 percent of their assets annually in grants. Federal law requires foundations to give 5 percent of their assets in grants and for other charitable purposes, including some administrative costs.
Several nonprofit groups have signaled they plan to oppose the suggestions, and the watchdog says it is ready for a fight.
The National Committee for Responsive Philanthropy “anticipates considerable resistance to the new guidelines from many of the country’s philanthropic organizations and trade associations,” it says in a press statement about Tuesday’s event.
Perhaps to defend itself from the negative response, the organization says Rep. Xavier Becerra, a Democrat from California, supports the recommendations and is expected to speak at tomorrow’s event.
In an interview with The Chronicle in September, Mr. Becerra, who is a member of the Ways and Means Committee, which oversees tax matters, expressed concerns about charitable tax deductions and other nonprofit issues.
Read The Chronicle’s article about Mr. Becerra and other members of Congress.
What do you think of the recommendations? What recommendations do you have for foundations? Click on the comment button below to share your views.
