Response to Pablo Eisenberg, WSJ OP-ED
Response to WSJ
November 10, 2009 OP ed
Today’s Wall Street Journal has an important op-ed about philanthropy, by Pablo Eisenberg. Here is my response to the points he raises:
If you serve on a non-profit board, please read this, or are responsible for actually making payroll at a non-profit. If not, don’t bother.
If you have any responsibility for non-profit fundraising, there is an already existing program that addresses four of his seven points, the Combined Federal Campaign, or CFC.
Point 1 – Increase the Distribution Percentage
In terms of actual giving, if the CFC were a foundation, it would be the 10th largest foundation in the US. ($257 million annually). In terms of payout ratios, it’s 92% compared to the foundation world’s required 5%.
Point 2 – Increase General Operating Support
Funds donated through the CFC are unrestricted, can be used for both programs and general operating support.
Point 3 – Increase Multiyear Funding
If a non-profit develops a CFC revenue stream, it is really developing multi-year (ten-twenty year) donors.
Point 7 – Simplify Application and Reporting Procedures
The CFC has an open application process (94% acceptance rate) and once in the CFC, the non-profits have less red tape than almost any foundation grant – not bad for a government program!
P.S. The CFC has generated more than $1 billion of unrestricted funds over the past five years, helping thousands of local, national and international non-profits.