Philanthropic practice

The Boston Foundation is one of the oldest community foundations in the nation. With an asset base of about $500 million, it makes grants of approximately $20 million each year in the Greater Boston area. For the past four years, the Foundation's discretionary grantmaking has been guided by its Building Family and Community Initiative. This initiative focuses on helping Boston's children and their families overcome poverty.

A rather widely shared belief within the foundation community holds that philanthropic resources cannot, will not, and perhaps even should not, be expected to keep up with the growing and changing resource needs of the not-for-profit arts industry. This belief has generated lively discussion among arts grantmakers about the future role of foundations in supporting a healthy nonprofit arts sector in this country.

William L. McKnight, for many years president and chairman of the board of the 3M Company, and his wife, Maude L. McKnight, founded The McKnight Foundation in 1953. The Foundation's assets totaled $1.5 billion in 1996 and its grantmaking in that year totaled $68.3 million. The Foundation has no affiliation with the 3M Company.

Richard Hugo House is a two-year old literary arts center in Seattle named after the Seattle-born poet and creative writing teacher Richard Hugo who wrote squarely and poignantly about people and places often overlooked. Hugo House offers classes, workshops, events, performances, meetings, as well as simply the time and space to read and write.

The Prince Charitable Trusts were established fifty years ago by the Prince family. The foundation has grantmaking programs in three geographic locations: Chicago, Rhode Island, and Washington D.C. The Trusts' assets total $160 million with projected 1998 grant distribution of $7 million in the three locations.

"It takes thirty leaves to make the apple."
— Thich Nhat Hanh

The Metropolitan Denver Scientific and Cultural Facilities District (SCFD) is a new member of GIA. It is a six-county regional public funding agency, formed ten years ago this coming November. It was created at a time when much public funding was being challenged, if not actively cut back. The formation of the district and its continuing success have been models for a number of other communities.

Foundation grantmakers are investors. The endowment that sustains a grantmaking program demands the same concentrated, strategic thinking that developing a focus for a giving program entails. The challenge addressed in this essay is to bring together these two basic functions — investing and grantmaking. The context for doing so is socially responsible investing. My purpose is to take an expanded definition of socially responsible investing and see if it has a meaningful role to play in arts philanthropy.

The UNUM Foundation operates as a private foundation supporting organizations in the Greater Portland (Maine) area. The foundation has six target areas of interest: aging, disability, education, family issues, AIDS, and economic development and the arts. It is funded by the UNUM Corporation, the world leader in disability insurance and among the world's leading special risk insurers. The UNUM Foundation was established in 1969. The original corporate entity was the Union Mutual Life Insurance Company, founded 150 years ago this year. The company name became UNUM in 1986.

Typically when businesses decide to support the arts they do so through a grant-giving mechanism or through a program that places employees as volunteers and consultants in arts organizations. But, I've noticed a different kind of interaction between the profit-making and not-for-profit art worlds in recent years. Some business people have set up foundations dedicated to improving the ethical and cultural context in which their own professions practice.