October 5, 2009 | Read Time: 1 minute
While philanthropy is a difficult endeavor to speak broadly about, there are several ways that donors can be highly effective in their giving, Thomas J. Tierney, a nonprofit consultant, told members of the Philanthropy Roundtable during its annual meeting last week.
Mr. Tierney, who is chairman of the Bridgespan Group, in Boston, said his organization is working on an article about the common traits of successful foundations that will likely be published in the November issue of The Harvard Business Review.
The shared qualities include:
Be clear about the mission.
Mr. Tierney suggested that donors state in simple terms what their goals are and how they will measure them. He encouraged foundations to require grant recipients do the same, helping charities define their geographic focus, the population they want to assist, a time line for their efforts, and clear set of goals to be met at the end of that time. Ultimately, he said, “you are only as good as the organizations that you give money to.”
Be realistic.
Charities often don’t know the “true costs” of a project, he said, comparing them to a homeowner who is remodeling a kitchen. “Have you ever had the experience of [a] remodeling costing less or moving faster” than scheduled? he asked. He suggested foundations and other donors talk candidly with charity executives about their financial needs. If a project indeed has a higher price tag but seems worthwhile, he urged grant makers to make a big bet.
Be introspective.
Foundations should constantly examine themselves and their efforts, he said. While giving money to charitable causes often inflates egos, he said, donors should remain humble. The best foundations approach a big problem and say, “I really don’t know how this is going to work.”
