Some things change and some things stay the same. Readers may find this sentiment to be true with Joel L. Fleishman's 2009 book, The Foundation: A Great American Secret - How Private Wealth Is Changing the World. Although the book shows its age at certain points, Fleishman shouldn’t be punished for the publication date. The Foundation serves as a robust roadmap for those interested in navigating the world of family foundations.

Fleishman’s insights are informed by years of experience in organized philanthropy and higher education, including his role as president of the Atlantic Philanthropic Service Company and a professor of Law and Public Policy at Duke University. The Foundation covers the history of foundations in America, highlighting the accomplishments and failures within family philanthropy. Fleishman lays out core principles of achieving impact and pitfalls that should be avoided. The advice is suitable for those looking to start a foundation or interested in improving an existing institution.

Understanding Foundations

Fleishman's introduction to foundations is comprehensive, quickly bringing the layperson up-to-date, and teaching (or at least reminding) the experienced philanthropist of key moments and movements in foundation history, including the Carnegie Corporation’s massive donation to provide unemployment relief in the wake of the Great Depression. Fleishman accurately predicted the staying power of a philanthropic moment that passed into pop culture legend: Warren Buffett’s $31 billion gift to the Bill and Melinda Gates Foundation, a philanthropic moment unmatched in the minds of many Americans to this day.

While it’s useful to learn from our predecessors, there may be references that give some readers pause. For example, Fleishman asserts that proposed legislation requiring foundations to disclose “the ethnic, racial, gender, and sexual preference characteristics of their trustees, officers, and staff” are a “populist assault on foundations.” As our recent political climate has shown, today’s populists are firmly against such disclosure requirements. In contrast, in the years since the publication of the book, calls for increased transparency, disclosure, and accountability have become louder from within the philanthropic sector.

In addition to providing context through the recounting of historical philanthropy, this book serves as a clear, concise documentation of the ways that foundations can be structured, how they can function, and the avenues they can take to make an impact. The Foundation provides options to readers without dictating. Funders are primed to create a strategy - or combination of strategies - that best leverage their assets for their cause.

Giving Well

Fleishman dedicates the second part of the book to advice for foundations looking to make an impact. Twelve case studies invite readers to examine successful strategies as they played out in the real world, translating how foundation history and theory look in practice. One of these case studies focuses on Children’s Television Workshop and Sesame Street. Fleishman offers a brief history of how and why the beloved children's show came to be, as well as a break down of the impact of the educational program. The show was intended to mass educate children efficiently and cost-effectively. While Sesame Street was an overall success, Fleishman also highlights criticisms about the program’s failure to close the gap between high- and low-income students, which has since become a priority for the program.

These case studies offer helpful insights into problem identification and solving, as well as the shortcomings of various attempts to improve the world. The fundamental suggestions of this section are sound - build a strategy, maintain focus over a long period, match solution to problem, remain agile - but readers would do well to keep in mind that over the last decade, philanthropy has changed. The most glaring absence is impact investing, an increasingly popular tool for foundations. Impact investing has gained traction as a vehicle for building wealth ethically, as well as an avenue for foundation work. Learn how one family foundation made the transition to impact investing.

Avoiding Philanthropic Pitfalls

Fleishman's picture of the American foundation is mixed but, overall, positive. The most significant problem he identifies is a double-edged sword: accountability. Foundations have extensive freedom to make big bets and drive learning that public and for-profit organizations are not positioned to accomplish. The same lack of accountability also allows for waste and abuse. Above all else, Fleishman calls for increased transparency from foundations to create public accountability.

Failing to be accountable to the communities that foundations aim to serve is a recipe for ineffective philanthropy. Fleishman asks funders and foundation staff to take on the task of increasing their own accountability, for the sake of better outcomes.

The Foundation serves as a solid starting point for funders interested in foundations as a vehicle for philanthropy. Fleishman works hard to answer questions with direct information that can help readers make hard choices.

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Original contribution by Clarissa Coburn.