Raising Up Overhead: How We Can Do Better
October 7th, 2019
Recently, five of the wealthiest foundations in America announced that they will do more to help their grantees cover overhead expenses.
This commitment reflects an essential best practice in philanthropy: ensuring grantees have the unrestricted capital they need to achieve their missions, sustain healthy organizations and grow their impact. This practice stems from the business world where investors know that great outcomes require both risk and risk capital.
And yet, the Jewish sector seems to be hesitating in adopting this approach. At a time when organizations are eager to dream big, tackle community challenges and strengthen their operations, many funders continue to direct their grants to a narrow set of programmatic goals. And all too often, these grants do not cover the true cost of the work.
Lisa Eisen is President of the U.S. Jewish Portfolio of the Charles and Lynn Schusterman Family Foundation. Barry Finestone is President and CEO of the Jim Joseph Foundation.