SSIR Tracking the Field Blog, NEW EGA Tool sharpening knowledge of environmental philanthropy

1. Tracking the Field of Environmental Philanthropy | Stanford Social Innovation Review 6/21/12 9:36 AM
FOUNDATIONS
Tracking the Field of Environmental Philanthropy
Highlights from a newly released environmental philanthropy report.
By Bradford K. Smith & Rachel Leon | Feb. 27, 2012
H ow has environmental philanthropy changed since the 2008 financial crisis? What environmental
priorities are still receiving funding and which are struggling? How can foundation staff across the
field connect efficiently to collaborate?
The Environmental Grantmakers Association and the Foundation Center addressed these questions and
others in Tracking the Field Volume 3: Exploring Environmental Grantmaking, a report released this
week that includes a new interactive searchable environmental grants database.
By partnering with the Foundation Center, EGA has been able to analyze data collected from both EGA
members and nonmembers, making it possible to examine the broader field of environmental
philanthropy. This evolving partnership offers promise of real-time updates and portals like
Washfunders.org (more below) that the Foundation Center is creating for other sectors. Here are some
highlights of the report and some new tools for using the knowledge.
The great recession and environmental philanthropy
While 2009 was a financially difficult year for philanthropy and society generally, environmental
philanthropy was impacted less than other issue areas were. The more than 76,000 foundations based in
the US collectively gave 42.8 billion in grants across all philanthropic issues. This marked a 2.1 percent
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2. Tracking the Field of Environmental Philanthropy | Stanford Social Innovation Review 6/21/12 9:36 AM
the US collectively gave 42.8 billion in grants across all philanthropic issues. This marked a 2.1 percent
decrease in giving from 2008. US environmental grantmaking, however, remained consistent at $2.7
billion. This shows a significant prioritization of environmental issues (although they are still a relatively
small piece of the pie) despite a 17.2 percent overall loss in foundation assets in 2008.
Shifts in environmental funding priorities
The distribution of environmental grant dollars changed in 2009. For example, reductions in giving by
EGA member foundations had a larger impact on traditional ecosystems nonprofits, which focus on land,
water, and species preservation. These organizations were impacted by both the decrease in EGA member
funding and a shift in focus by environmental foundations generally. Funding for traditional ecosystems
issues by EGA members decreased by 37 percent between 2007 and 2009 while funding for organizations
and programs addressing climate issues increased by 92 percent.
Climate-focused nonprofits continued to see growth in funding despite foundations’ shrinking
endowments. The share of funding for “Climate & Atmosphere” and “Energy” (EGA’s descriptions of
these categories can be seen here) by EGA members leaped from 13.7 percent in 2007 to 31.9 percent in
2009, reflecting a huge investment in climate legislation domestically and in treaties at the global level.
Where is the funding not going?
The issue areas of “Population” (with only 0.1 percent of funding) and “Material Consumption & Waste
Management” (1 percent) remained—as in 2007—the least funded. “Environmental Health,”
“Environmental Justice,” and “Toxics” received more than $36 million from EGA members (4 percent)
while receiving only 1 percent of total environmental grant dollars. This represents a 53 percent decrease in
funding by EGA members between 2007 and 2009, and a 23 percent decrease overall.
Environmental funding strategies
Tracking the Field Volume 3 is the first report to track environmental grantmaking strategies. EGA
members’ top strategies in 2009 focused on “Advocacy/Organizing/Movement Building,” followed by
“Capacity Building/General Support.” A number of funders reported that the recession influenced them to
increase their general support grantmaking (versus funding specific programs or projects) so as to provide
nonprofits with more flexibility.
This data is important because it allows
the field to understand its history and to
speculate on future trends. Will climate
continue to grow or will a new issue area
begin to dominate in the next few years?
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3. Tracking the Field of Environmental Philanthropy | Stanford Social Innovation Review 6/21/12 9:36 AM
begin to dominate in the next few years?
What impact will the changing priorities
of grantmakers have on issues that require
long-term commitment? And how can
environmental funders and other sectors of
philanthropy work together to ensure
better communication and collaboration?
A new resource
The newly released Tracking the Field
database allows EGA members (it is member-only, since the need for trust in providing data by
foundations is crucial for real-time information sharing) to search more than 8,000 coded grants by issue,
geography, strategy, and grantor and/or grantee. It also contains information on all grants made by a
member, members’ contact information, and all grants received by a grantee.
The Foundation Center also recently launched a portal called Washfunders.org, with tools tailored
specifically to water access, sanitation, and hygiene (WASH) issues. At its core is a robust GIS-mapping
tool that shows the global reach of WASH funders and how their investments compare to those of
government development assistance agencies around the world.
Technology
and social
media have
dramatically changed all aspects of our lives and philanthropy should evolve as well. But data-driven
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4. Tracking the Field of Environmental Philanthropy | Stanford Social Innovation Review 6/21/12 9:36 AM
dramatically changed all aspects of our lives and philanthropy should evolve as well. But data-driven
resources require an ever-growing degree of transparency—something there is little consensus about in
philanthropy. While some foundations have searchable databases on their websites, 1/3 of foundations
with assets over $100 million still do not even have websites. And while some 700 foundations now report
current-year grant data to the Foundation Center digitally, our reliance on IRS 990PF data delays analysis
and updates to our databases.
But it’s only the beginning. Philanthropy—environmental and otherwise—needs to continue to explore the
transformative potential of data, technology, and social networking in helping grantmakers work more
effectively.
Bradford K. Smith is president of the Foundation Center, a national nonprofit service organization recognized as the nation’s
leading authority on organized philanthropy. The Center maintains a comprehensive database on US grantmakers and their
grants around the world; issues a variety of print, electronic, and online information resources; conducts and publishes
research on trends in foundation growth, giving, and practice; and offers an array of educational programs.
Rachel Leon is executive director of the Environmental Grantmakers Association, a high-impact network of environmental
funders working to achieve a sustainable world. EGA works with members and partners to promote effective environmental
philanthropy by sharing knowledge, fostering debate, cultivating leadership, facilitating collaboration, and catalyzing action.
C o pyr i g h t © 2012
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