Stanford Social Innovation Review

Stanford Social Innovation Review is an award-winning magazine covering best strategies for nonprofits, foundations, and socially responsible businesses. Published quarterly by the Stanford Graduate School of Business.

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Jan Leeman on Strategic Planning
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Our local County Human Services Department and School District is exploring whether or not to start a foundation to bring in funds for these two public entities. An already existing community foundation has not succeeded in our County (but is still trying) and there are no other foundations specific to our geographic locale. Additionally, there are a number of smaller non-profits in the County also competing for local funds and fundraising dollars. What are the pros and cons of public entities, such as a County or School District, setting up foundations?

I asked a friend who has worked in both a community foundation and a school district foundation about the fundraising prospects for each type of entity. Here's her response: "In general, donors tend not to invest in public agencies - hence the need for a non-profit that secures funding and provides accountability. Community Foundations are experts at donor engagement, but have the donors’ intent on the forefront of their decision-making…..so, if effective, an independent 501(c)(3) usually is able to be more successful in both fundraising and nudging the public organizations to continuously provide measurable results."

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