What's Happening?
The Schott Foundation for Public Education has introduced a new initiative called the Sustainable Grantmaking Benchmark. This tool is designed to help philanthropic organizations evaluate their grantmaking
practices in terms of flexibility, duration, and innovation. The initiative aims to support organizations in leading systemic change, particularly in racial justice. The initial rollout included participation from six diverse funders, such as the Robert Wood Johnson Foundation and The California Endowment. The Benchmark provides a rating system similar to the LEED standards for buildings, offering designations from Bronze to Platinum based on grantmaking practices. None of the initial participants achieved the highest Platinum rating, with Schott itself receiving a Bronze. The Benchmark is intended as a learning tool to help organizations improve their practices rather than a scorecard.
Why It's Important?
This initiative is significant as it addresses the need for sustainable funding practices in philanthropy, particularly for organizations focused on racial justice. By providing a framework for evaluating and improving grantmaking practices, the Benchmark encourages long-term commitments and innovative funding strategies. This is crucial for ensuring that organizations can continue their work effectively over time. The initiative also highlights the disparity in funding practices between conservative and progressive funders, with the latter needing to adopt more sustainable approaches. The Benchmark could lead to a shift in how philanthropic organizations allocate resources, potentially increasing the impact of their work.
What's Next?
The Schott Foundation plans to expand the Benchmark by working with more funders and releasing new versions biennially. They aim to develop a digital tool called 'Pathways to Platinum' and incorporate additional elements like racial justice impact into the Benchmark. The foundation is also considering creating different versions of the Benchmark for various types of philanthropic entities. These efforts are part of a broader strategy to encourage sustainable grantmaking practices across the philanthropic sector.
Beyond the Headlines
The introduction of the Sustainable Grantmaking Benchmark could lead to a cultural shift in philanthropy, emphasizing the importance of long-term support and financial independence for grantees. This approach aligns with the growing recognition of the need for systemic change in addressing social issues. By encouraging funders to adopt sustainable practices, the Benchmark could help build a more resilient and effective philanthropic sector.
