We are so proud of #ABAGMember, The Baltimore Ravens, for their big win on Saturday to clinch a chance at the AFC Championship title against the New England Patriots this coming weekend!

The team and the players are committed to bringing people together and generating goodwill in the community through their exciting play and continued wins – we are an excited #Ravensnation.

But, did you know that the team and players are committed to assisting the community throughout the year in a different way?

They are, and we are proud that the Baltimore Ravens are a member of The Association of Baltimore Area Grantmakers, and as a team, are focused on making a difference in our community in a variety of ways, including:

The Baltimore Ravens All Community Team Foundation serves as a separate nonprofit entity of the team's community outreach efforts. The Ravens All Community Team Foundation is committed to improving, encouraging, and enabling the healthy development of youth in the Baltimore area, as well as other parts of the state of Maryland and has designed grant programs to encourage healthy youth activities through:

· Ravens Youth Football Grant

The Ravens All Community Team Foundation (RACTF) provides equipment and apparel to qualifying nonprofit youth football organizations through the Ravens Youth Football Grant.

· Baltimore Ravens Scholarship Program

The Baltimore Ravens established this scholarship program to enable local youth to continue their education on a collegiate level. The team has a long-standing history of service to local communities and this fund supports those who do the same.

· Ravens Plan in Motion

The Ravens Plan in Motion project provides grants of up to $5,000 to qualifying nonprofit organizations that create and/or continue programs or projects promoting physical fitness and nutrition education.

The Ravensalso have an All Community Team (ACT) with the mission to increase corporate and community awareness of the Ravens All Community Team Foundation, player foundations, and associated local charitable organizations through a season-long NFL football competition between area and regional Baltimore-based business leaders and companies. The All Community Team is a partnership among the Ravens organization, the players and members of the corporate community.

As former RACTF Executive Director Melanie LeGrande mentioned in a previous ABAG Adventures in Philanthropy blog post: "The Baltimore Ravens have a strong commitment to serving children and families in need in our area. As we all know, strategic philanthropy and collective impact are key to making a long-term difference. The team and its players have many such initiatives.”

Given that the Ravens have a strong commitment to the community, in addition to appearances by Ravens players, coaches and staff, the team assists hundreds of charities and nonprofit organizations through in-kind donations of team memorabilia, through a variety of community programs, and through ticket give-aways to volunteers through The Honors Row effort.

And, Ravens players arevery active in the community through individual foundations and giving efforts of their own, including players like:

· Ray Lewis

· Ray Rice

· Torrey Smith

· Ed Reed

· Michael Oher

· Jameel McCLain

· Lardarius Webb

· Matt Birk

· Anquan Boldin

· James Ihedigbo

· Paul Kruger

· Vonta Leach

· Haloti Ngata

· Bernard Pollard

· LaQuan Williams

Learn more about the charitable endeavors of the Baltimore Ravens All Community Team Foundation.

We thank the Ravens for the goodwill and cheer that theycontinue to bring our community -not just this coming week -but throughout the year.

Go Ravens!

December 4, 2012

By Betsy Nelson

Special to The Daily Record

In 2001, we approached The Daily Record about increasing coverage of the nonprofit sector. Eleven years and 260 columns later, I find myself writing the final column.

My tenure as the president of the Association of Baltimore Area Grantmakers (ABAG) comes to an end, and with it, the completion of my telling the great stories of philanthropy and stories about the role nonprofit organizations play in our community and our world. On Monday, I enthusiastically welcomed Celeste Amato to ABAG as its new president.

With this column, we charged ourselves with presenting the wide array of issues that philanthropy touches. My hope was that the column would not only help shed light on the efforts made by the funding community, but would also capture the interest of nonprofit organizations and those not actively involved in philanthropy so that we might together improve the quality of life in our community.

A core underpinning of the columns has been the recognition that we all need to be ambassadors for the organizations and issues we care about. Whether a donor, staff member or trustee of a foundation or nonprofit, we have a communication role to play.

Communicating how foundations and nonprofit organizations tackle some of society's most pressing problems brings increased attention to promising solutions and sparks collaborations that might make our community a better place for all of its residents.

Much has changed over these years, though the necessity of telling stories and encouraging others to join in the philanthropic arena remain today. Fortunately, the avenues for telling these stories and the recognition of the impact of the charitable sector have increased substantially.

When we started the column, we hoped there would be enough stories to share. I realize now that the stories keep coming and that there are now many narrators, communicating through website postings, blogs, tweets and other social media outlets.

ABAG now hosts "Adventures in Philanthropy” blog posts written by our staff, board, ABAG members and partners, aiming to offer a glimpse into the world of philanthropy, presenting current issues and information relevant to funders, policymakers, members of the media and those interested in issues and philanthropic trends.

I invite you to visit www.abagrantmakers.org/adventuresinphilanthropy and encourage you to share your own views through this blog.

It has been an honor to shed light on the work of the giving community and how it affects where we live. I am often asked what is next for me. First, I am still in Baltimore and of Baltimore. I am eager to be less of an observer and more of a "doer.” But first, hitting the Nelson red couch and just vegging is in order. My thanks to all of you.

Betsy Nelson is the former president of the Association of Baltimore Area Grantmakers. She can be reached at bnelson310@gmail.com.

November 8, 2012

By Betsy Nelson

Special to The Daily Record

Individuals in the most affected areas will also need assistance over the long term. And once again, the need for charitable contributions to support this assistance is greatly needed. Fortunately, people are responding quickly to support relief efforts.

The images of people in need may trigger the impulse to contribute canned food, bottled water and used clothing. However, a national coalition of nonprofit and relief organizations say financial donations are the best way to help those affected by the storm. While goods may be satisfying to give, cash donations have more impact, since they allow relief organizations the flexibility to plug a need where they see fit.

To assist with relief and recovery efforts, the following funds have been established:

• The United Way system has established the United Way Hurricane Sandy Recovery Fund (www.donate.unitedwaynyc.org) to address both near-term and long-term recovery needs of communities most affected by the hurricane. Managed (without fee) by United Way of New York City, the fund will be used by United Way groups along the Eastern seaboard (Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Virginia, Washington and West Virginia) to address both near-term and long-term recovery needs of communities most affected by the hurricane. Any contributions made through United Way of Central Maryland will be handled without fee.
• The Community Foundation of the Eastern Shore’s Disaster Relief Fund (www.cfes.org) benefits Lower Eastern Shore organizations serving victims of superstorm Sandy and will match the first $5,000 received.
• The Community Foundation for the National Capital Region (www.thecommunityfoundation.org) has established the Neighbors in Need: Sandy Relief Fund, which will provide money to nonprofits throughout our region offering hurricane relief services over the coming days and weeks.

Local agencies offering assistance include:

• American Red Cross (www.redcross.org/md/baltimore)
• The Maryland Food Bank is a central distribution point for food pantries across the state (www.mdfoodbank.org).
• The Salvation Army (www.uss.salvationarmy.org)

The Association of Baltimore Area Grantmakers is working with other associations of grantmakers throughout the affected area to coordinate and track responses to the devastation. For information about how to help outside of Maryland, please visit the websites of these associations:

• Connecticut Council for Philanthropy (www.ctphilanthropy.org)
• Council of New Jersey Grantmakers (www.cnjg.org)
• Delaware Grantmakers Association (www.delawaregrantmakers.org)
• Delaware Valley Grant Makers - Philadelphia Region (www.dvg.org)
• Philanthropy New York (www.philanthropynewyork.org)
• West Virginia Grantmakers Association (www.wvgrantmakers.org)

The Center for Disaster Philanthropy is keeping abreast of what local and national funders are doing in response to Sandy. They are sharing this information and their analysis of the storm’s impact on their website, DisasterPhilanthropy.org. They have also established the CDP Hurricane Sandy Disaster Fund as well as a hotline for strategic philanthropic advice at 206-972-0187.

The center reminds us to follow best practices in disaster giving and offers the following recommendations as you consider how you will respond:

• Support medium- to long-term recovery efforts. Most donors will see the stirring images from the Atlantic and react today, donating dollars that are allocated for emergency humanitarian relief. Relief activities are obviously critical, but they do not address the need for longer-term recovery, which will require even more dollars and receive far less attention. Donors should consider making longer-term investments.
• Support organizations with a long-standing history of service in hurricane-affected areas. Supporting these organizations maximizes existing expertise and response capacity and minimizes the learning curve associated with working in a disaster environment.
• Add disaster funding to an existing mission. Donors can most effectively leverage their resources by tapping their in-house expertise.
• Support disaster-risk reduction. Advance preparation and early warning systems help reduce the damage disasters cause.

To find more information about relief efforts and to follow the local philanthropic response, visit, friend and follow ABAG at: www.abagrantmakers.org,www.facebook.com/ABAGrantmakersand on Twitter at @ABAGrantmakers.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

October 25, 2012
By Betsy Nelson
Special to the Daily Record

Organizations have their own life cycles. And the Association of Baltimore Area Grantmakers is passing through to another stage, with the board of directors appointing Celeste Amato as ABAG’s new president, beginning her tenure on Dec. 3.

What began last April with the announcement of my pending retirement is moving forward at jet speed.

ABAG is fortunate that Celeste will bring a wealth of experience to this position. Of course, I have been thinking about what advice I want to give to her, so I reached out to a few others who are also making transitions to see what insights they would offer their successors, too.

Comprehensive Housing Assistance Inc. recently announced its selection of Mitchell Posner as its new leader to follow long-serving CEO Ken Gelula.

Engage the board

So I asked Ken about words for his successor. He said: "Make engagement of the board your priority. Actively engage the board members in problem-solving. Don’t be afraid to admit you’re wrong. Hire carefully. Keep your passion for the organization’s mission and its values at the forefront of your work.”

Ken has been relentless in pursuing CHAI’s mission to develop and support thriving, stable communities in neighborhoods with a substantial Jewish population.

Ken also said: "My departure from CHAI is a decision about what would be best for the organization as well as for me. I have been at CHAI for over 29 years and feel great about our accomplishments. Now it is time to turn the mantle of leadership over to someone who will bring a fresh perspective to the organization and the communities we serve.”

When asked about what is next for him, he said: "I don’t think about this decision as the end of my working career. I am looking forward to new opportunities around my interests in the future of the city and its neighborhoods. As I speak with people, I find it is a challenge to communicate that I don’t plan to retire, but only to retire from my long tenure with CHAI” at the end of December.

I also sought out advice from another long-timer, Frank Miller who is a 40-year veteran at the Red Cross and is retiring at the end of October. Here is what he plans to pass along:

Learn the organization

"Dive deep into the organization before you make any changes. Talk informally and individually with front-line staff, volunteers and board members about what works and what needs attention.”

Frank served as executive director in Central Maryland for 22 years and two years ago became the regional executive director for Southern and Central Maryland, Frederick, Washington County and Western Potomac (Garrett and Allegany counties).

What is on my list of recommendations for Celeste? To enjoy the privilege of working with committed, informed individuals/organizations that are working diligently to make our community better. To appreciate the hard-working staff that will make her look really good to the outside world. To remember that being a leader often means pushing from behind. And to dream big and stay the course.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

It's hard to believe that the insights and observations of 26-year-old Alexis de Tocqueville recorded in 1831 are still relevant.

The young French thinker and historian recognized, applauded and immortalized American voluntary action on behalf of the common good. His observations on philanthropy are also true today: Advancing the common good means creating opportunities for a better life for all.

Embracing his vision, in 1987 United Way of Central Maryland brought a program to Central Maryland from United Way of America that would unite a uniquely dedicated and generous group of community citizens to ensure that the common good continued to be advanced in our community. The program — aptly named the Tocqueville Society — this September celebrated 25 years of improving live here in Central Maryland. And there is indeed much to celebrate.

Since H. Grant Hathaway — then CEO of Equitable Bank — brought it to the United Way of Central Maryland in 1987, Tocqueville Society members have donated more than $81.2 million to address vital community needs for the most vulnerable among us. Homelessness, hunger, health and education are among the issues UWCM's Tocqueville members rally around.

Today, the nearly 400 members each donate $10,000 or more annually to United Way to ensure that the growing number of Central Marylanders facing poverty have opportunities for more self-sufficient lives. With current economic pressures mounting, I am glad that our community has United Way and its Tocqueville Society to attract inspired, loyal and generous people who are moved to advance the common good. And my husband David and I are proud to be part of such an impactful group.

In addition to support from individuals, UWCM counts many foundations as Tocqueville Society members.

"The France-Merrick Foundation has been proud to partner with United Way as a Tocqueville member for 25 consecutive years. Conditions are clearly worsening for many of our citizens and we have a responsibility to come together to have collective impact upon issues of great concern to us, such as poverty, declining public schools and providing access to opportunities for all people in our community,” said Wally Pinkard Jr., chairman of the France-Merrick Foundation, who has also personally been giving Tocqueville Society gifts for more than a decade.

For many Tocqueville Society members, their commitment has been steadfast. Nearly one-third of the current members have been giving for 10 years or more, because they can and they know their investment in United Way is an efficient investment in the common good. And yet, every year UWCM's Tocqueville Society seems to get a little younger with new women and men stepping up their commitment to their community.

These folks are all but common. In fact, in an era where nearly all people and businesses have been affected by a struggling economy, I would argue that UWCM's Tocqueville Society members are quite uncommon.

It is both heartening and important to notice how our fellow citizens continue to lend faithful support to each other. Happy 25th anniversary to all of the uncommon Tocqueville folks I am honored to serve with.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record 

During her inaugural address in December 2011, Mayor Stephanie Rawlings-Blake proposed an ambitious goal to grow the city by 10,000 households over 10 years.

This summer, members of the Association of Baltimore Area Grantmakers joined the mayor for a candid conversation about strategies and opportunities for collaboration in achieving that goal.

Great advice can also be found in a recent Goldseker Foundation study by Paul C. Brophy called "Great Neighborhoods, Great City” which analyzes what happened in Baltimore's neighborhoods during the past decade and suggests strategies for going forward.

Brophy, long-time program consultant to the Goldseker Foundation with more than 30 years experience in the field of housing and community development, recommends where the focus should be to be successful in repopulating Baltimore.

The report found that the city can be roughly divided among neighborhoods that are stable and attractive (36 percent); those "in the middle,” that is, stable but requiring attention to offset potential deterioration (35 percent) and those already seriously deteriorated (29 percent), where residents continue to leave.

The report is based on data from the Baltimore Neighborhood Indicators Alliance at the University of Baltimore and the Baltimore City Department of Planning and work done by the Philadelphia Reinvestment Fund.

Livable and affordable

The key issue raised by the report is that if the community is going to be able to help Mayor Stephanie Rawlings-Blake achieve her goal of increasing the city's population, then focus and programs are needed in the middle neighborhoods.

The stable communities are retaining residents and will continue to thrive, provided city government continues to offer solid basic services. Baltimore gained almost 10,000 college-educated residents in the 2000s, newcomers who are largely living in these attractive neighborhoods.

The badly deteriorated neighborhoods are not likely to attract newcomers and need long-term interventions. These include aggregating vacant land for future investment and interim uses like urban farming. It will be important to provide basic city services to remaining residents in these communities as well.

The middle neighborhoods, though requiring modest levels of public and private investment, have solid, reasonably priced housing and important physical and economic assets such as colleges and universities, medical centers and parks. Some also have schools that are performing better than we typically expect.

These neighborhoods are typically overlooked by newcomers, yet they are livable and affordable.

Improving the focus

Here are some ways to improve the focus on these neighborhoods, according to the report:

• Aggressively market these middle neighborhoods and their assets through Live Baltimore, a single-purpose nonprofit that has been doing this successfully for the past decade.
• Widely adopt the principles and experience of Healthy Neighborhoods Inc., whose sole mission over the same period has been precisely to improve real estate values and resident leadership in these middle communities.
• Build upon existing areas of strength such as the University of Maryland Baltimore BioPark, the Station North Arts and Entertainment District, and the Johns Hopkins medical centers of East Baltimore and Bayview.
• Encourage banks to target more mortgage and home improvement lending in these middle neighborhoods.
• Target city government investment in these neighborhoods, since federal funds typically carry household income restrictions that don't apply in these areas.
• Provide more employer-funded live-near-your-work incentives in collaboration with the city's existing program.

Brophy also noted that helping these middle neighborhoods as a strategy to increase the city's population isn't solely a city government responsibility.

Institutions and city residents share the task of improving neighborhoods and increasing population. I think that many participants at the mayor's conversation with members of the philanthropic community would say "ditto.”

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

Fall of 2010, when we first announced Baltimore as one of five sites selected to remake America's great urban places and reconnect residents to economic opportunity, I declared that there was no more important work that we could undertake. Halfway through this three year effort, I stand behind these words.

Baltimore was selected by Living Cities, a collaborative of 22 of the world's largest foundations and financial institutions, to participate in its national Integration Initiative, designed to address some of the most pressing challenges facing America's cities.

Baltimore identified two critical goals: connecting residents to real jobs and driving investment to central-city neighborhoods. The Baltimore Integration Partnership was established to address these goals and is a collaborative of city and state governments, philanthropic organizations, private institutions, and nonprofits, with the Association of Baltimore Area Grantmakers and The Reinvestment Fund (TRF) as lead organizations.

While Baltimore continues to face a challenging economy and making real progress on our goals is slower than we would all like, Baltimore is moving forward.

Credit for some recent accomplishments can be given to TRF, a Community Development Financial Institution (CDFI), which are specialized financial institutions committed to providing capital to help low-wealth people and communities join the economic mainstream. As a CDFI, TRF finances housing, community facilities, food access, commercial real estate and energy efficiency projects.

TRF recently announced the financing of two major education-related projects in Baltimore – the Maryland Institute College of Art's (MICA) Studio Center and the Elmer A. Henderson: A Johns Hopkins Partnership School (Henderson-Hopkins). Both projects signal new momentum in two challenged Baltimore neighborhoods and together are expected to bring over 200 jobs and serve over 700 students.

The MICA Studio Center, which houses the school's graduate programs, is located in a repurposed 100-year-old former Jos. A. Banks garment factory. This renovation will support MICA's ambitious plan to grow and expand its graduate programs by creating additional studio and gallery space as well as an auditorium and a cafe.

On seven acres in East Baltimore, the Henderson-Hopkins school, which is the new name for the East Baltimore Community School (EBCS), willl house 540 kindergarteners through eighth graders in a new 90,000 square-foot building and 175 students in a new 28,000-square-foot early childhood center known as The Harry and Jeanette Weinberg Early Childhood Center. The new campus is the cornerstone of a major redevelopment effort by East Baltimore Development, Inc. (EBDI) to revitalize 88 blighted acres adjacent to the Johns Hopkins Hospital and create a thriving mixed-use community for families, businesses and public institutions.

TRF provided New Markets Tax Credits (NMTC) totaling over $20 million for the two projects. JPMorgan Chase partnered with TRF for the MICA project, serving as the equity investor and bringing an additional $3 million from its own NMTC allocation. The EBCS construction is a larger NMTC project and includes NMTC investments from Harbor Bank, City First and the Nonprofit Finance Fund in addition to those from TRF. The project has equity investments from USBank and significant additional investment from several philanthropic and institutional partners including the Weinberg Foundation, the Annie E. Casey Foundation, Rouse Foundation and the Johns Hopkins Institutions.

"These projects are symbolic of TRF's long-term commitment to Baltimore," explained Don Hinkle-Brown, TRF's President and CEO. "In the past 5 years, we have invested $50 million in these neighborhoods through our lending and real estate development efforts. The MICA Studio Center and the Henderson-Hopkins school are more than just catalysts for economic development – they are investments in creating world-class educational opportunities and building vibrant communities in Baltimore."

To learn more about the Baltimore Integration Partnership, visit http://www.baltimorepartnership.org/ and for more information about TRF, go to http://www.trfund.com/.

By Betsy Nelson

Special to The Daily Record

The 2012-2013 school year will bring with it the new environmental literacy requirements passed by the legislature in June 2011. This new graduation requirement ensures that all public school students experience environmental education as part of the curriculum.

The eight environmental literacy standards are met by infusing core subjects such as math, science and language arts with a range of outdoor experiences, hands-on learning and studies that are grounded in the unique ecosystems of Maryland.

The standards cover earth systems, flow of matter and energy, environment and health, populations, communities and ecosystems, humans and natural resources, environment and society and sustainability.

In Baltimore there is already much energy and focus on the environment and sustainability. The Baltimore City Public Schools, through the Office of Community Engagement, has already established the Baltimore Green Schools Network. The members of this network are a great resource to the city in successfully incorporating environmental literacy into the curriculum.

Rich knowledge network

A recent meeting at the Association of Baltimore Area Grantmakers brought together our Green Funders and Education Funders affinity groups to highlight the partnerships and cross-sector work that are being tapped to meet the new requirements this fall.

The district is cataloging community resources and nonprofit environmental education partners that are available to help teachers incorporate the eight requirements into their lesson plans. Teachers have access to outdoor education programs and a wealth of resources and issue experts that will enrich their classrooms.

Funders with an interest in the environment as well as funders focusing on education have, over the years, made significant investments in nonprofit organizations focused on nature studies, watershed protection, schoolyard gardening and many other aspects of environmental literacy.

The environmental literacy standards will give teachers and students an incentive to tap into this rich knowledge network that already exists in our region.

Enhanced achievement

The funder meeting reinforced the power of cross-group collaboration. The education funders in the room knew all too well the pressures teachers face to improve test scores and the importance of stimulating classrooms for our kids. The green funders are also keenly aware of the long-term societal benefits of helping kids become environmental stewards.

Among the many points covered in the meeting was the emerging research on how outdoor experiences and environmental education enhance academic achievement and build critical thinking skills.

All of this is in line with the national trend toward learning which focuses on helping students understand their communities as ecosystems. Such learning interprets the environment broadly to include cultural, social and economic aspects.

I am encouraged that the schools see this as an opportunity to enhance their teaching — in and out of the classroom. With full academic rigor, this is a chance to be innovative and bring new creativity to learning.

That we are moving toward a richer and more holistic approach to educating our children speaks loudly about our commitment to their future.

By Betsy Nelson

The Daily Record

I am proud to report that the National Civic League has named Baltimore an All-America City to recognize the Baltimore Campaign for Grade-Level Reading as an outstanding example of community problem solving, civic engagement and collaboration between the public, corporate and nonprofit sectors.

For the first time, the annual All-America City award focused on reading. Peer reviewers chose Baltimore from 124 applicants who submitted comprehensive plans to ensure children are proficient readers by the end of third grade. Education research tells us that proficiency in reading by the end of third grade enables students to shift from learning to read to reading to learn, and to master the more complex subject matter they encounter in the fourth grade curriculum. Most students, especially low-income students, who fail to reach this critical milestone falter in the later grades and often drop out before earning a high school diploma.

The Baltimore Campaign for Grade-Level Reading is a collaborative group of funders, nonprofit, and public organizations engaged in shared learning and setting priorities for action to ensure that our low-income children succeed in school and graduate prepared for college, a career and active citizenship.

Because we know that low-income children have less access to books and may hear as many as 30 million fewer words than their middle-income peers before reaching kindergarten, the Baltimore Campaign addresses school readiness.

Because we know that one in 10 kindergarten and first grade students nationwide misses nearly a month of school each year in excused and unexcused absences when reading instruction is a central part of the curriculum, the Baltimore Campaign addresses attendance.

And, because we know that without access to the enriching activities available to more-affluent peers children from low-income families lose as much as three months of reading comprehension skills over the summer, the Baltimore Campaign addresses summer learning.

The All-America City awards were presented in Denver during a multi-day conference organized by the National Campaign for Grade-Level Reading, the National Civic League, the National League of Cities, U.S. Conference of Mayors and United Way Worldwide. Governors, Mayors, and even Sesame Street's Zoe were on hand to congratulate and inspire communities across the country.

But now is the time in Baltimore when we need to collectively roll up our sleeves and get to work. Already an unprecedented effort is underway -- Baltimore City Super Summer -- to ensure that every child has access to learning, meals, reading and other fun activities during the summer.

In 2016, Baltimore will apply again to the National Civic League for recognition of its reading effort. The goal will not be to submit a new plan but to report the dramatic gains in reading proficiency.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

June 17, 2012

By Betsy Nelson

Special to The Daily Record

We have long said that philanthropy has more to contribute to improving community conditions than just dollars.

And at the Association of Baltimore Area Grantmakers’ Annual Meeting, Leslie Crutchfield, senior advisor at the nonprofit consulting group FSG and author of "Do More Than Give: the Six Practices of Donors Who Change the World,” challenged the audience with examples of donors doing just that.

The clout, connections, business know-how and political savvy that foundation leaders, business executives, and many individual donors possess are key resources in advancing causes. These are also resources that nonprofit organizations often lack.

Crutchfield encouraged us to see philanthropy as not being the business of "giving away money” but rather active participation in the business of social change and solving problems. The real goal is to have as much impact as possible, to "change the world.”

Along with her co-authors Mark Kramer and John Kania, Crutchfield’s experiences with nonprofits motivated her to write Do More Than Give. Her first book, "Forces for Good: The Six Practices of High-Impact Nonprofits” addressed how nonprofit and philanthropic leaders could achieve better outcomes if they focused on advancing larger causes and leveraging change through each sector of society — government, business, nonprofit organizations, and individuals.

In Do More Than Give, the authors note that the first step toward catalytic philanthropy is for donors to choose one or a few problems or causes to concentrate on and take responsibility for achieving results. Donors who pick a strategic focus are able to achieve more than donors who scatter their funding and attention across many disparate causes.

They encourage donors to embrace six characteristics that they believe distinguish philanthropies that solve problems and advance causes they care about.

• Practice 1 – Advocate for change: While uncomfortable for many donors, advocacy and policy lobbying efforts are necessary to achieve system-wide change. Funding nonprofit organizations that effectively combine service and advocacy can lead to this change.
• Practice 2 – Blend profit with purpose by tapping into the power of business as an engine for advancing the greater good. Consider dedicating a portion of an investment portfolio or endowment to mission-related investments or socially responsible companies.
• Practice 3 – Forge nonprofit peer networks, recognizing that individual nonprofit organizations and funders may miss achieving outcomes that collaborative efforts can produce.
• Practice 4 – Empower the people: Rather than treating individuals just as recipients of charity, recognize that they can be potent participants in the process of solving social issues.
• Practice 5 – Lead adaptively: Recognize that social problems are emergent, complex phenomena that require innovation and learning, and are not easily solved by making a grant or donation to a nonprofit organization.
• Practice 6 – Learn In Order To Change: Rather than relying on final reports, focus on what can be learned from a grantee’s progress for future improvement and invest in outcome-focused evaluations rather than tallying outputs like number of people served.

The book concludes with the recognition that while the charge may feel daunting, moving to impact isn’t an all or nothing proposition. What it does require is for donors to Do More Than Give.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

What are you eating for dinner?

This question has a quick answer for many, but for many other Marylanders, the question of where their next meal is coming from is consistent, stressful and doesn’t have a good answer.

There are more than 466,000 Marylanders who are "food insecure,” meaning they lack access to sufficient food for all family members to lead active, healthy lives.

The Great Recession and jobless recovery have meant that more families struggle to make ends meet and are choosing between food and other necessities such as medicine or heat. For the 243,000 children in Maryland whose families are food insecure, being hungry is dire.

It is much more likely that hungry children will be sick or hospitalized; it makes it harder for them to perform well in school and puts them at risk for developmental delays that are hard to remedy. The consequences for very young children are even more severe, given that adequate nutrition is essential for proper brain development.

15 strategic goals

Fortunately, many in Maryland are working to address childhood hunger.

Gov. Martin O’Malley has included "ending childhood hunger in Maryland by 2015” as one of his 15 Strategic Policy Goals and has created the "No Kid Hungry Maryland” campaign to drive action on the issue.

Strategies toward this goal include ensuring that eligible families have access to the federal assistance programs such as the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) and Women, Infants and Children (WIC) and making sure all eligible children are eating breakfast and lunch in schools or at a summer meal sites.

The campaign, led by the Partnership to End Childhood Hunger in Maryland, is always looking for additional partners, as there are many ways to be involved. These are but a few examples of the good work taking place in our state.

Add your voice

How can you help?

• Volunteer with an organization like the Maryland Food Bank or at your nearest summer meals site.
• Donate to an organization working to end hunger in Maryland such as the United Way’s Access to Healthy Food Initiative.
• Speak with members of your community and use social media to spread the word about childhood hunger. Increasing awareness will help to get eligible kids and families enrolled in feeding programs.
• Join the Paper Apple Campaign of Maryland Hunger Solutions. By participating in the campaign, you can add your voice to the hundreds of Marylanders who are urging support for the federal nutrition programs and other anti-hunger efforts.

In this day and age, it’s heartbreaking to think of Marylanders who don’t have access to sufficient food. I applaud the many efforts to address hunger – especially childhood hunger – in Maryland.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

Seems to me that the much-anticipated leadership transition for nonprofit organizations is now occurring.

Maybe it is reality or just my perception, since I recently announced that after 25 years I will step down as president of the Association of Baltimore Area Grantmakers by the end of 2012. I look around and see that in the past year or so, others have made similar decisions.

I recall a 2001 study that forecast significant nonprofit leadership changes in the coming years. At that time, the conversation was about how difficult the role of an executive director was and whether there were talented, prepared individuals ready and willing to replace these leaders.

People who become executive directors often set out to make the world a better place. Along the way, they meet some significant challenges:

• Raising hundreds of thousands of dollars every year in an increasingly competitive funding environment;
• Dealing with increasingly complex government regulations and accounting;
• Hiring and managing employees;
• Fostering positive board relations and engagement;
• Being the public face of their cause and organization.

And they do all this on a relatively modest salary.

Formidable challenges

Fast forward to 2012 and these challenges remain as formidable, if not more so.

So what happened to delay this leadership change? Clearly, the recession set back retirement plans for many. What had been economically feasible no longer was.

I think there is another reason, though. For many of my generation of leaders, the position and work has been entwined with who we are and what we believe in.

Rather than an easy goodbye, it has turned into a slower process of letting go and identifying what new opportunities lie before us. Or, at least, that is my story.

I do see one major difference for the next generation of leaders. They are inheriting organizations that are more mature and require someone who has the expertise from the start to be a capable leader.

ABAG and I grew up together. The organization’s growth was organic, and I was able to grow with it. The organization that the new president will lead resembles in mission and purpose to the one I joined part-time in 1986, but the complexity and necessary skills for its leader are vastly different.

Great expectations

I feel great excitement looking at the next generation of nonprofit leaders. I see many young people drawn to serve, perhaps because of decreasing opportunities in the for-profit sector, disillusionment with Wall Street, or maybe, like my generation, because they are invested in making their neighborhood, if not their world, a better place.

These are energized, competent, talented young people. The challenges of being a CEO of a nonprofit are real. But, I feel confident that should these energetic young people choose a leadership path, they will bring with them the requisite commitment and skill set to meet the challenge.

We sometimes like to think we are irreplaceable. In reality, having someone with a new perspective can be a healthy step for an organization.

In the meanwhile, there are still many things I want to accomplish while I complete my tenure at ABAG. So, back to work for me.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

Last month, I was fortunate enough to attend the first of a four-part Redefining Capital series hosted by the Federal Reserve of Richmond/Baltimore Branch and a number of community partners — including, proudly, the Association of Baltimore Area Grantmakers.

This forum featured the release of Building from Strength: Creating Opportunity in Greater Baltimore’s Next Economy, a study authored by Jennifer Vey of the Brookings Institution and funded by the Annie E. Casey Foundation. In the study, and in the presentation that kicked off the discussion, Vey, a Baltimore resident, challenged local leadership to:

• Focus economic development effort on industries that have the best potential to drive and/or support future growth — including advanced manufacturing, bioscience, information technology, "green” firms and jobs, and transportation and logistics. This isn’t just our same old list of "eds, meds and beds.” It builds out from these regional strengths to a prospective set of industries — the ones we might have if we intentionally focused on producing exports and increasing the number of good paying jobs.

• Strengthen and coordinate education and training so that low-wage workers can get the skills and access they need to secure good paying jobs, and employers can have the skilled workers they need to produce and grow.The premise of the Brookings study — and of the Redefining Capital series hosted by the Fed — is that the Baltimore region has significant assets upon which to build a more inclusive, more robust, and more growth-oriented economy that benefits more people and in so doing increases opportunity for us all.

Commenting on the study, Patrice Cromwell, director of Economic Development and Integration Initiatives at the Annie E. Casey Foundation, said that "next economy manufacturing presents untapped opportunities to build skills for jobs with good pay and benefits. We need to encourage and support this kind of growth for businesses and people.”

Of course, these opportunities are predicated upon our community choosing to act upon these recommendations. And, I hope we will.

I also hope you will join me in attending the next event in the Redefining Capital series offered by the Federal Reserve in partnership with Associated Black Charities/More in the Middle Campaign, the Association of Baltimore Area Grantmakers, the Baltimore Integration Partnership, the Baltimore Neighborhood Collaborative, the Baltimore Workforce Funders Collaborative, the Baltimore Workforce Investment Board, the Citizens Planning and Housing Association, the Job Opportunities Task Force and the Maryland Bankers Association.

Upcoming in the series are:

• June 7: Redefining Social Capital: Attracting and Supporting New Immigrants;
• Sept. 13: Redefining Financial Capital: Investing in Communities;
• Nov. 8: Redefining Economic Assets: Anchor Institutions as Engines of Growth.

For more information about the Redefining Capital series, visit the Association of Baltimore Area Grantmakers’ website,www.abagrantmakers.org.

For a copy of the Brookings study, Building from Strength: Creating Opportunity in Greater Baltimore’s Next Economy,click here.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 orbnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

It’s been some time since nonprofits have had something to cheer about. They have been hit hard by proverbial one-two punches.

With the economy struggling and government budgets under duress, nonprofits have been called upon to deliver even more for our disadvantaged and vulnerable neighbors. Meanwhile, donors tightened their wallets.

Although its fiscal year will not end until June 30 and results are still coming in, United Way of Central Maryland (UWCM) is projecting a 3 percent increase in its most recent campaign. While the growth is modest, it marks the second consecutive year of campaign growth after several years of decline.

UWCM is a unique bellwether because its annual fundraising appeal is so diversified, comprising tens of thousands of individual donors, hundreds of area business and more than a dozen foundations.

Undoubtedly, securing Molly and Mayo Shattuck to serve as 2011 campaign co-chairs of its private sector campaign was a boon. Both were very active in cultivating donations personally and building community awareness about poverty, malnutrition, homelessness and many other social issues.

It is welcome news that Alan Wilson and his executive team at McCormick & Company are taking the reins for the 2012 campaign.

Emphasis on health

It is no coincidence that in 2010, giving started to grow just after UWCM reset its strategic plan in light of the economic malaise.

As its first priority, the board refocused the 85-year-old institution on meeting the basic needs of people living at or below 300 percent of the federal poverty level through its grant-making, special initiatives and volunteer projects.

Recognizing that gaps in basic human services vary among jurisdictions in central Maryland, UWCM decentralized much of its grant decision making, adding breadth and expertise to its six local partnership boards. And it took steps to enhance the accountability of its grant recipients.

UWCM also launched an ambitious program to improve the health of individuals and families who find it difficult to access or afford nutritious foods such as fruits, vegetables and whole grains.

The Access to Healthy Food Initiative has already raised $700,000 since October, and this United Way program is well on its way to providing and distributing 1.5 million pounds of healthy food this year to people who need it.

CFC posts big gains

UWCM’s strategic plan also directed the organization to become more efficient and effective in its fundraising efforts. UWCM became leaner, lowering its costs substantially while maintaining a fee of just 5 percent on designated gifts.

To help nonprofits improve their cash flow in tough times, UWCM also accelerated the frequency of it payouts from quarterly to monthly.

What’s more, the Chesapeake Bay Area Combined Federal Campaign (CFC), a workplace giving campaign comprising federal workers (managed by but separate from UWCM), saw a dramatic 11 percent increase between its 2010 and 2011 campaigns. Helping to fuel this growth is an infusion of federal jobs in our region resulting from the federal Base Realignment and Closure program (BRAC).

It will take years for the economy to recover. But it’s heartening to see that charities like UWCM are adapting to present day realities, and that charitable contributions are on the rise once again.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record 

As a membership organization of foundations and corporate giving programs, the Association of Baltimore Area Grantmakers has had a longstanding interest in increasing the funding community's capacity to support and use data to inform decision making.

We have seen increased interest by funders in measuring the impact of their grant dollars. The desire to target resources where they can lead to better outcomes has become greater as funding gets tighter and community needs are more pressing.

These days, it feels like each dollar counts even more. Whether through a formal evaluation process or through more informal monitoring and reporting process, funders look to program evaluations to show effectiveness and guide their grantmaking decisions.

Periodically ABAG provides training and technical assistance to members about measurement and evaluation and assessment. While there is greater awareness of the need to reflect on performance, this still remains a challenge for many, if not most, nonprofit organizations.

Part art, part science

Many of us in the field have an interest in increasing nonprofit organizations' capacity to conduct evaluations of their programs. The truth is that it isn't easy.

ABAG enlisted a consultant to help us better understand what impact the organization wants to have on members and the larger community, and to identify how to assess success. Many hours — truthfully, days — were spent thinking about this, resulting in an evaluation plan.

The process gave us a more realistic understanding of ABAG's work, who and what the organization can influence, and a system for tracking what ABAG does and what the result of the work is.

I admit that it remains partly art, partly science. Just last week we reconfigured how to assess one of ABAG's major program areas. Being dedicated to measuring and evaluating your work takes real effort.

I have come to believe in the importance of asking questions about impact and success. What would success look like? How would you know if you achieved it? And then, to be realistic both about the results you can achieve and how much you can know about these results.

Not just a measuring stick

Evaluation is not just a measuring stick. It is also a management and learning tool. One way to better understand how well an organization does its work is a "Before and After” Action Review.

The concept is that we can all be continually improving our practice and the best way to do that is to take the time to reflect on activities, candidly assess what happened, and pull out learnings to move forward.

Most organizations' natural tendency is to say "that's over — on to the next.” An action review is a structured process that can enable groups to learn from and improve their practice.

I still am a big fan of measuring success and continue with the quest to better understand ABAG's impact, but I am also more comfortable with looking for the indicators of success rather than the absolute quantifiables.

While sometimes an anecdote is simply one instance of something good happening, it may actually be indicative of real impact. The trick is to discern how much one can generalize from those instances.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record 

Nationally, 22 percent of all foundation grants invest in quality private and public education, which makes education second only to health as a grantmaking area.

Here at the Association of Baltimore Area Grantmakers, education grants are part of many of our members' portfolios. Yet, a few years ago, we realized that we didn't know much about the breadth and depth of that education-related funding. We also wanted to be responsive to members' requests for information about their peers' grantmaking.

To capture this information, this fall we asked members about their investments in education. Forty-eight responded to our biennial survey, providing information about their education focus areas and their 2010 education-related grants. Here's what we learned.

In 2010, ABAG members contributed more than $34.2 million to education efforts in Maryland through more than 800 grants to more than 500 organizations. They gave more than $11.9 million to organizations working with Baltimore City Public Schools, to individual schools and the school district itself.

ABAG members support a wide array of education focus areas. More than half of the members support programs for students during afterschool or extended school hours, as well as teacher recruitment and development. More than one third of the members support projects for summer learning, mentoring, arts education and early childhood (school readiness), as well as programs at independent/private schools.

A profound impact

Wendy Samet is the chair of ABAG's Education Funders Affinity Group and vice president of the Goldsmith Family Foundation. The foundation was established in 1991 with a bequest from the estate of Harold Goldsmith, a well-known entrepreneur and philanthropist.

Born and raised in Baltimore and a graduate of Baltimore City College, Harold wanted to make a difference in the lives of the children growing up in our city today. He believed that improving the educational and cultural opportunities available to Baltimore youth would have a profound impact on their futures.

"Although I never knew Harold Goldsmith, he and I share that dream,” says Samet.

And the belief that education is the pathway to opportunity is shared by an increasing number of funders. Over the years, I have seen a growing willingness to support Baltimore City school efforts.

ABAG members interested in supporting education meet to learn more about worthy initiatives, educational research findings and best practices. It is not unusual for Education Funders to gather two to three times a month to explore different aspects of educational activity.

Since May 2008, Education Funders have met regularly with Michael Sarbanes, executive director of the Office of Partnerships, Communications and Community Engagement for Baltimore City Public Schools. These "Focus on City Schools” meetings offer an opportunity to learn about the city schools' outreach efforts and to provide input on the school system's plans.

This is a critical time for efforts to improve educational opportunities for children and youth, both in public and private spheres, during the school hours and after school. Education funders encourage others to join with them in supporting quality educational programs. Contact me for more information.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

When asked, grantmakers had some interesting insights into the best and worst grants they have made. And the Center for Funds & Foundations at The ASSOCIATED: Jewish Community Federation of Baltimore and the Association of Baltimore Area Grantmakers did the asking at a joint session for trustees and staff at foundations and donor-advised funds.

Here are some highlights from the conversation.

The "Best Grants” had certain characteristics — foundation support leveraged other dollars, either from public sources or other private funds; funds went to an organization with real commitment to continuing the project beyond initial foundation funding; the project addressed a real need and improved outcomes for individuals.

The examples given represented a broad spectrum of types of grants, from capital investments to direct service and advocacy. What they all had in common was clear passion and satisfaction by the donor/foundation.

One funder recalled a grant given to an advocacy organization that brought a lawsuit on behalf of Baltimore's poorest school children, claiming that they were being denied their constitutional right to an adequate education. As a result of the suit, and the advocacy and policy work that followed, the state passed the historic Bridge to Excellence in Education Act (aka the Thornton bill).

"Ultimately, this modest grant [made in 1994] not only leveraged over $1 billion in state funds, but also propelled sweeping reforms to the governance, management and funding of Baltimore City Schools — all of which has translated into access to a better education for the children who need it most in our city,” said Betsy Ringel, executive director of the Blaustein Philanthropic Group.

Another funder related how important institutional commitment to the work, not just the grant, is. The foundation was asked to invest in a demonstration project, with the applicant agency noting that the risk capital to start this new project wasn't available in base budgeting.

The lead executive of the organization promised to continue the newly funded position if the project was successful. It was, and after three years, the community picked up the position, said Lee Meyerhoff Hendler, president of the Harvey M. and Lyn P. Meyerhoff Fund.

The Worst Grants also evidenced some themes: Program design not based on data, the hazards of working in isolation, acting upon assumptions rather than real agreements with the nonprofit organization. These factors can lead to deep disappointment for the funder and nonprofit.

No one intends to make a decision based on faulty or inaccurate information, but that can happen in the excitement of a new project. One funder related investing in an institution's ambitious physical expansion, later finding that the accompanying additional expenses/funding needs of the organization were not able to be met.

In this case, the institution moved forward with construction on a building well before the fundraising goals were achieved. Financing was arranged, adding to a difficult cash flow situation. Staggering under the burden of debt service and other financial challenges, the organization ultimately had to close its doors. Lesson learned? Due diligence needs to include a sober assessment of the business plan, ideally with input from people who know the industry in question.

Another funder told of funding two different institutions for the same project, deciding to build upon the excitement of the initial grant. While the first was a real success, the other floundered, with the institution in disagreement with what the agreed-upon outcomes were. Lesson learned here? Verify that all parties agree with the intention of the grant, and put this in writing.

Interestingly, both the most satisfying and most disappointing grants had something in common — a passion for the work, with high aspirations for impact and outcome. As one funder said, "The stories stay with you.”

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson
Special to The Daily Record

In late December, the United States Department of Education announced the grantees for its highly competitive Investing in Innovation (i3) grants, awarded to support the validation and expansion of innovative programs that benefit high-need public school students. Out of nearly 600 applications, only 23 grants were awarded, two of which will be implemented in Baltimore City Public Schools.

These i3 grants will be used to expand the impact of two highly effective programs underway in city schools: the Middle School STEM (Science, Technology, Engineering and Mathematics) Summer Learning Program and the ExCELL-E teacher training program.

The Middle School STEM Summer Learning Program combines high quality math instruction and a hands-on, project-based robotics program to drastically reduce the summer learning loss that plagues students in virtually every urban district in the county.

The ExCELL-E program, implemented through Temple University in partnership with Johns Hopkins University and the Baltimore City schools, provides a variety of training supports to preschool, kindergarten and first grade teachers helping native English and English as a Second Language students in high-poverty areas develop their language and literacy skills.

In order to receive nearly $5.5 million in i3 funds, the Baltimore grantees needed to demonstrate more than academic success — they needed the community to show its support for the programs by providing 15 percent private matching funds.

With less than 30 days to secure this match, our funding community in Baltimore rallied to the challenge. The Association of Baltimore Area Grantmakers quickly convened a briefing with leadership from the city schools and Johns Hopkins, after which 12 ABAG members committed nearly $900,000 to ensure the city schools could successfully secure the federal money.

"It is inspiring to see what happens for city schools students when promising work meets the good will of our funding community,” said Roger Schulman, president and CEO of the Fund for Education Excellence.

The fund worked closely with Baltimore City Public Schools to secure the private match dollars for the STEM initiative and will serve as the grant manager for these funds.

All of us involved in the i3 grant process want to express our gratitude to the Baltimore funding community for its steadfast support of these important efforts. These i3 grants are one more illustration of the level of innovation and quality underway in our city's public schools and the critical role that local grantmakers play in supporting and encouraging promising new efforts with the potential to increase student achievement.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson, Special to The Daily Record 

It likely comes as no surprise to anyone that poor people haven't seen their fate improve since the advent of the Great Recession.

Nor would most people be surprised to learn that there are more people living in poverty in the United States today than at any other time in our country's history.

When we add to this the millions of Americans who are not technically below the poverty level but in the last four years have lost their jobs, homes, and health insurance, it should also come as no surprise that as people struggle to meet basic human needs, more people are seeking legal assistance than ever before.

What may come as a surprise to many, however, is that when the Federal Reserve reduced interest rates to virtually zero as one tool to help spur economic growth, it had the unintended consequence of devastating what had been the second-largest funding source in the country for civil legal aid programs.

This funding source, known as Interest on Lawyer Trust Accounts (IOLTA), is familiar to attorneys but virtually unheard of in the general population.

IOLTA revenue consists of interest income, which is generated on pooled trust account funds held by attorneys that are nominal in amount or held for too short a period of time to generate net interest for the individual client. In 2007, with the Federal Funds target rate set at 5.25 percent, Maryland's IOLTA program generated close to $7 million.

Good news, bad news

In December 2008, the Federal Reserve Board reduced this rate to near zero, a historic low, and it hasn't budged since. This was good news for borrowers but disastrous news for legal aid programs and the unprecedented number of clients needing help.

Nationally, IOLTA revenue plummeted by 75 percent. In Maryland, IOLTA revenue plunged to a record low of $2 million annually — more than a 70 percent drop.

Maryland's IOLTA program is managed by the Maryland Legal Services Corporation, which provides grants to 34 legal aid providers statewide. Susan Erlichman, MLSC's executive director, explains that as bad as things are, they would be much worse if the Maryland General Assembly hadn't provided an increase in court filing fee surcharges in 2010 to help address the dramatic loss in IOLTA dollars.

But even that remedy has fallen short due to the protracted economic downturn. With more litigants unable to pay court costs and qualifying for filing fee waivers, the surcharge increase has fallen significantly short of revenue projections.

Economic vagaries

Since its inception in Maryland, the IOLTA program has generated approximately $100 million which has been used to provide critically needed legal assistance in matters such as domestic violence, foreclosure and eviction, child custody, food stamps, health care, unemployment insurance and myriad issues impacting basic human needs.

Its enactment has provided help to millions needing legal aid. But as the vagaries of the economy have demonstrated, this obscure funding source, consisting of strictly interest income, does not make for a stable funding core for the state's civil legal aid system.

What's worse is that as the economy stays weak and interest rates remain at historic lows, the need for legal aid and the IOLTA revenue available to fund programs that provide such services remain in inverse proportion to each other.

IOLTA is a wonderful program which works best in the best of times. With the Federal Reserve signaling that a robust economic recovery is years away, the need for alternative sources of funding to ensure a strong legal services safety net remains a challenge that must be met.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

In today's environment, nonprofit organizations are faced with numerous challenges, be they financial, administrative, or programmatic.

Wondering how many boards of directors are up to the task, I contacted Nancy Hall, one of my "go-to” nonprofit professionals, for her opinion. Nancy teaches nonprofit management at Johns Hopkins University as well as consults to nonprofit organizations.

Nancy related this story to me:

"Since 2008, I have been watching a nonprofit die,” she said. "This youth-serving organization has been around for decades depending on a small endowment for 25 percent of its operating budget. A group of consistently generous individuals, organizations and foundations covered half of the nonprofit's expenses. The remainder of the funds came from occasional government grants and contracts.

"When the stock market lost 40 percent of its value, so did the endowment,” she added. "Endowment earnings declined, generous donors became less generous, and competition for grants and contracts grew. Revenues decreased frighteningly fast, expenses decreased more slowly. Soon the organization will be out of money.”

Nancy reflected on why this happened.

"My take is that the board forgot how to make decisions,” she said.

"For the past 20 years, they had the same executive director, a healthy endowment and a program that seemed to work. When the time came to be decisive, the board didn't know how since it had been years since any major decisions had been made. Decision-making is a skill that can be learned. It is a skill that needs to be practiced. Numerous boards, including the one above, fail to exercise their decision-making muscles.”

Nancy noted that she has attended too many board meetings and read too many sets of minutes in which the only action was the approval of the meeting minutes. She identified several reasons for this lack of decision-making.

• The organization has a strong, long-term executive director who makes all the decisions for the organization. When it is time to replace the executive director (retirement, death, resignation), the board lacks the necessary skills to make a good hiring decision.

A dominating board president who takes on the patriarchal (or matriarchal) role can lead to a lethargic board that goes along with whatever the parent wants. Organizations that have had stable sources of funding can have boards that get lazy.

• Many organizations spend 80 percent of the board meeting on history and 20 percent on the future. Once something has happened, there is no need to make a decision about it.

Consider the meeting that includes the reading of the minutes — history, the past financial performance — history, the executive director's report — history. Add to this various program reports, and the bulk of the time is spent on what has already occurred. New business is left to the end when folks are ready to leave.

• Board meetings should be 80 percent future and 20 percent past. Each year, the board should decide if the organization will be relevant in the future. Financial reports should not only report on what has happened but should have a projection of how the year will end.

The metrics on program performance should not only include what has happened but what is anticipated to happen by year end, next year, and the year after that. The trends may result in more decision-making.

Nancy concluded by noting that regular planning and decision-making contribute to a strong and committed board. As always, good advice from a seasoned professional.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org.

By Betsy Nelson

Special to The Daily Record

While you are out holiday shopping, I encourage you to stop for a latte and pick up this year’s fashion statement — a red, white, and blue wristband with the message "Indivisible.”

All you have to do is contribute $5 or more to receive a wristband, designed to serve as a symbol of Americans uniting with other Americans to help create jobs.

Starbucks Coffee Co. has teamed up with Opportunity Finance Network to launch Create Jobs for USA, pooling 100 percent of all donations from Starbucks customers, partners and concerned citizens into a nationwide fund for community business lending — including small businesses, microenterprises, nonprofit organizations, commercial real estate, and affordable housing — with the goal of creating and sustaining jobs.

The Opportunity Finance Network is a national network of Community Development Financial Institutions (CDFIs), which are specialized financial institutions committed to providing capital to help low-wealth people and communities join the economic mainstream.

Here are a few examples of how some CDFIs and their community partners are working to grow community businesses and create jobs in Baltimore.

Expanding opportunities

The Reinvestment Fund (TRF), one of the most effective CDFIs in the nation, finances community businesses that bring housing, community facilities, fresh-food retail and other amenities to low-income communities. TRF is also among the first CDFIs in the nation to win a grant in the Create Jobs for USA Fund’s inaugural funding round.

As part of its work in Baltimore, TRF is also collaborating with a range of private and public partners to expand opportunities for low-income residents and communities by unifying workforce development with revitalization investment. The collaborative is known as the Baltimore Integration Partnership, which is housed at the Association of Baltimore Area Grantmakers.

Among its first projects is a housing development by Mi Casa, an organization which aims to provide quality home-ownership opportunities to low- and moderate-income people. The three-phase project will rehabilitate 40 units across 34 properties in the Johnston Square neighborhood in East Baltimore.

TRF financing is supporting the second phase, which is rehabilitating 12 rowhome shells to bring affordable housing options to neighborhood families. To date, six individuals from the community have been hired or are a pending hire for the project.

The project’s contractor and other Baltimore Integration Partnership partners are also working together to help refer other individuals from the community for workforce training resources.

Another well-regarded CDFI is Baltimore Community Lending, which offers rehabilitation loans for housing and commercial properties to non-profit and for-profit entities to create projects in Baltimore City neighborhoods and commercial districts. One of their projects is St. James Place at Franklin and Howard streets, which included rehabilitation of a vacant historic building by a minority developer into 22 rental apartments, with first-floor commercial space now occupied by a Women Business Enterprise-certified architectural firm in the city’s West Side redevelopment area. This project has resulted in five new permanent jobs.

A great example

Maryland is also home to the Enterprise Community Loan Fund, a national CDFI with nearly 30 years of lending history. Enterprise Community Loan Fund’s investments provide affordable and sustainable housing for vulnerable populations throughout the country.

A great example of Enterprise’s local commitment is its financing of an Empire Homes of Maryland development that provides 18 units of supportive housing to individuals living with HIV/AIDS. Through new partnerships and new funding models, Enterprise has broadened its focus to reach the heart of communities nationwide by investing in charter schools, health care centers and other community facilities that spur small-business growth and job opportunities in the same communities where they are creating and preserving homes.

The Create Jobs for USA initiative lets us all participate in this effort to get Americans back to work. Show your support this holiday season by making a donation to the initiative in Starbucks stores or online at www.createjobsforusa.com. Together, we truly can be indivisible.

Betsy Nelson, president of the Association of Baltimore Area Grantmakers, writes every other week for The Daily Record. She can be reached at 410-727-1205 or bnelson@abagrantmakers.org