SHAREGrantmaking Update
The closing days of 2010 found the trustees and staff of the Evelyn and Walter Haas, Jr. Fund keenly tuned in to the latest news from Washington. Would Congress finally overturn “Don’t Ask, Don’t Tell” and allow gay and lesbian Americans to serve openly in the armed forces? And what would be the fate of the DREAM Act, a proposed federal law that would extend citizenship rights to hundreds of thousands of young people who were brought to this country as minors, provided they enter the military or go to college?
Like millions of other Americans, we followed the news from Washington so intently because these are vitally important issues for the future of our nation. But we also were drawn to the coverage for another reason. Over many years, we have been working closely with and supporting many accomplished individuals and organizations that are leading the fight in this country for equal rights and opportunities for immigrants and gay and lesbian Americans. We were eager to see their hard work educating the public on these issues pay off with two big victories on Capitol Hill.
In the end, of course, we only got one of those victories. But both the win (“Don’t Ask, Don’t Tell”) and the loss (DREAM Act) were for all of us an important reminder of why we do the work we do.
High Stakes Drive the Fund’s Commitment
A couple of years ago, the Haas, Jr. Fund decided to further sharpen the focus of our grantmaking on initiatives and organizations that advance and protect fundamental rights and opportunities for all. Whether the issue is immigrant rights, gay and lesbian rights (which we’ve been in for many years), or improved educational opportunities for young people (a new area of work for us), the stakes could not be higher. This is about people’s lives, their freedoms, their life chances, and their ability to enjoy all that our country has to offer.
It is because of the high stakes that the Haas, Jr. Fund remains steadfastly committed to the work we do. At a time when the effects of the Great Recession continue to be felt throughout the nonprofit sector (and throughout our communities and all of American society as well), we are committed to maintaining – and in some cases increasing – our grantmaking budgets in the Fund’s priority areas.
The Fund’s trustees have made this commitment despite the fact that our assets, like those of other foundations in the country, took a major hit in the recession. The combination of reduced assets and our trustees’ sustained commitment to the Fund’s priority programs means we’re currently making grants at a higher level than required. While foundations are expected to spend 5 percent on grants and administrative costs together, the Haas, Jr. Fund’s trustees decided in 2003 to make 5 percent in grants only the baseline for our grantmaking.
In 2010, our grantmaking totaled more than $25 million, or 5.4 percent of the Fund’s assets. Over the past three years, the Fund has made grants equal to an average of 6 percent of assets. Giving at these levels every year might begin to erode our endowment. But the Fund’s trustees want to support our grantees now as they continue the struggle for equal rights and opportunities for all.
Does this mean that the Haas, Jr. Fund is spending itself out of business? In a word, no. The Fund has been doing this work for nearly 60 years, and we are determined to ensure that we can continue to make a difference in our local community and beyond for years and decades to come. We may be a somewhat smaller foundation than we once were, but we remain committed to providing long-term support to the causes we care about.
Striking the Right Balance
We all know that change doesn’t happen overnight. Even with the repeal of “Don’t Ask, Don’t Tell,” for example, gay and lesbian Americans still are denied basic rights and opportunities by unequal laws, stigma and violence. And, the defeat of the DREAM Act shows it is going to take a lot more time and dogged persistence to educate people and to create a more welcoming society where immigrants can step out of the shadows and become full participants in American society.
The long-term nature of these fights means we need to strike a balance. Many of our grantees are working to reduce and eliminate inequities that are keeping millions of people from enjoying basic rights and opportunities right now. Where we see immediate opportunities to make a significant difference, we want to make sure grantees have the resources they need to achieve their goals.
At the same time, we want to preserve sufficient resources for the struggles and opportunities ahead. One way we’re doing this is by being prudent about the Fund’s operating expenses. In December 2010, the Haas, Jr. Fund moved from One Market, where we had been for 10 years, to less expensive offices at 114 Sansome. Over the last few years, we also have reduced staff positions.
No matter what happens to the economy in the months and years ahead (and we are hoping with everyone else for a sustained upturn), we want to make sure we can continue to fulfill the Fund’s mission well into the future. But we also want to do all that we can to help our grantees make a positive difference right now for the people and the communities they serve.
If December 2010 taught us anything, it’s that progress doesn’t happen on its own. It takes an enormous amount of hard work, talent and dedication. It takes resources. And it takes a long view and a commitment to staying the course through both the wins and the losses along the way.