An Open Letter to Philanthropy Network Members & Partners
Michael Kellerman, Interim Transformation Director | December 6, 2024
It has been an honor to spend the last eight months working with members, community leaders, and others throughout the philanthropic sector in and out of our region to better understand Philanthropy Network Greater Philadelphia’s recent struggles, to listen deeply to what members want from their network, and to work in partnership to create new paths for the organization’s future.
The nature of any network comprised of regional philanthropy practitioners is fluid and ever-changing, given the deep needs of the community we serve and the great diversity – whether in mission, size, structure, history or other dynamics – of the grantmaking organizations who support greater Philadelphia. We know that what members value in the Network is different for every organization and every person within it, and yet throughout this organizational transformation process we have encountered insights and perspectives that suggest a common set of values and themes that point to the unique potential a thriving network has to amplify positive change in our communities.
In this report we will summarize the process that has brought us to today, what insights and learnings came from that process, and how that influences how we are planning for the short-term for the Network and considering possible options for the long-term.
I want to pause and define the word we in this instance. Philanthropy Network Greater Philadelphia was founded nearly 40 years ago by, has been sustained by, and will only thrive because of the active support and engagement of its members. This is your network, and as we move forward, the Board and staff of the Network are keeping this unique goal sharply in our focus: how can we deliver opportunities for connection and learning that support all members in achieving smarter giving, and greater good.
Process
Over the last four months our small team has:
- engaged one-on-one with more than 75 member representatives
- conducted a member-wide survey;
- met with more than 30 leaders from other philanthropy supporting organizations (PSOs) across the nation;
- conducted market and competitive analytical research;
- hosted seven open member meetings;
- partnered with Nonprofit Finance Fund to conduct financial modeling and analyze organizational structure options;
- organized a member-driven Strategy Committee that dedicated more than 120 hours to help synthesize information and discuss member value as well as organizational purpose and direction; and
- convened a 5-hour strategy retreat with the Board of Directors and Strategy Committee.
The core aim in this process was to gather and elevate as many member voices as possible and ensure that any future strategy the Network employs will be effectively and appropriately influenced by the very members who sustain it, as well as driven by a desire to push our field, and our region, toward greater collaboration, efficiency, and impact.
2023 Crisis and Recent Trends
Our work acknowledges the missteps and dysfunctions that have contributed to confusion and frustration about the Network’s purpose and value. Coming off an organizational crisis in 2023 that resulted in changes in leadership, staffing reductions, financial uncertainty, and a pause in core organizational programming, it is natural that many conversations initially centered on what happened in 2023. Indeed, the events that transpired resulted in deep concerns about the organization’s focus, stability, governance, and trajectory. Once the process unfolded during which many members participated in candid and open conversation, it also became clear that beyond the critical events of 2023, for the better part of a decade the Network had seen reductions in the size of its membership, and understanding what contributed to this decline was equally important. The factors discussed, which are varied and nuanced, include:
- persistent turnover in Executive leadership and other staff roles;]
- shifts in vision between the member service model and the activist model;
- reductions in recurrent core fundamentals and networking programming;
- a lack of partnership or partnership mentality;
- chronic under-investment in systems and technology; and
- inadequate attention to evolving and improving governance practices.
This list, while not exhaustive, represents the internal factors contributing to this trend. It is important to acknowledge that there have been profound external dynamics that have challenged philanthropic service organizations (PSOs) like ours across the nation. These include:
- a proliferation of other PSOs focused on topical areas, organizational dynamics, and other missions;
- changes in how technology influences how professionals assemble, harness information, and do their work;
- a global pandemic that permanently shifted how groups gather and collaborate;
- changes in generational perspectives and practices regarding networking and professional development;
- and more.
The environment for PSOs across the US is dynamic and for many, challenging as it has been in Greater Philadelphia. In our outreach to other networks, we have encountered organizations across a spectrum from thriving to being in crisis (the recent closure of Philanthropy DMV, the longstanding network serving the Washington, DC region serving as a profound example). In our outreach we focused on understanding how PSOs are navigating these challenges, including what works in today’s environment, and what doesn’t. While each region is unique geographically, historically, economically, and demographically, these insights – from those who are thriving to those facing uncertainty – were a powerful reminder that to be successful, PSOs must remain keenly focused on their core membership values. These include:
- connecting openly and regularly in a variety of ways with their members to understand and design around their needs and interests;
- balancing the delivery of recurrent, fundamentals programming with elevating new concepts and topics that push the field forward;
- reaching professionals of all levels and stages of career within member organizations;
- creating environments for the creation of relationships and cohorts that incentivize collaboration and spark new and not-yet-imagined ideas and initiatives;
- elevating national, regional, and local issues with context to how the sector can engage and take direct action; and
- sustaining content and program partnerships to reduce the reliance on internally-developed curricula and increase the quality and quantity of resources made available to members.
In the member survey conducted in September 2024, when asked about the benefits and engagements offered by the Network, more than 80% of respondents indicated that “connecting with other philanthropy professionals” and “networking/creating new relationships across the field” were very valuable or valuable experiences the Network provides.
Purpose
Every organization exists for a reason. Many, however, either can’t, don’t, or won’t take the time to understand and articulate the fundamental reason that they exist. Organizations are typically better at communicating what they do or how they do it, but often struggle to know why they exist. Analytical principles such as Simon Sinek’s Golden Rule to many other concepts illuminate how organizations that can articulate and embed their purpose into all of their work tend to create better alignment and consistency over time.
The ad hoc Strategy Committee spent time on this subject for the Network, and while still a work in progress, the following is an initial statement regarding the Network’s purpose:
Collaboration, collective action, and shared learning are crucial for our philanthropic community to drive long-term, impactful change for all communities.
Following initial brainstorming and synthesis, this work came to identify several evidence-based concepts that ultimately led to this stated purpose. Those include collective efficacy; social learning theory; systems and design thinking; attachment theory; and social interdependence theory. While these conceptual frameworks have power, statements made in the original brainstorm pointed us toward them have equal impact. These included: we can’t do this alone; we can do better; have we ever done better?; we’re better when we go outside ourselves and our silos; and what is the impact we can make that we can’t yet see?
These concepts aren’t new or novel for the Network. Indeed, they may seem obvious and apparent to some and have remained constant over course of the Network’s nearly four-decades long history. What’s most important about articulating the Network’s why is that these concepts remain in sharp focus as we navigate our mission, and that there are effective mechanisms for ensuring fidelity to them over time.
Moving Forward
From our conversations with members, surveys, external interviews, and market analysis, a consistent trend emerged regarding the balance between providing ongoing, core learning and networking opportunities and elevating concepts and ideas that challenge the status quo and push the field forward. While this could be regarded as a core operational tension or even a critical choice, numerous insights gathered, especially from those leading thriving PSOs, indicated that this balance is central to the work of sustaining a philanthropy network comprised of constantly evolving organizations within a dynamic field. In short, that balance is part of the core operating principle of a successful PSO.
To illustrate how our Network can document and operationalize this balance, and put it into action for our future programming, the following pyramid was developed:
Using this pyramid as a general rubric, and keeping the colors consistent, the following is an initial sketch of a proposed 2025 program plan* that will be developed over time and communicated outward to members starting in January 2025.
*initial draft subject to change
Recurrent Fundamentals
- Philanthropy 101: 8-part series (likely in partnership)
- Financial Fundamentals for Grantmakers: 2-3-part series
- Legal Concepts Series (likely in partnership)
Consistent Opportunities for Connection
- Regional Communities of Practice
- BucksMont Community of Practice new/enhanced
- DelCo Community of Practice
- ChesCo Community of Practice
- 5-County Regional Leadership new
- Communities of Practice (ongoing, including:)
- Small Funders
- Arts Funders
- Out of School Time (OST) Funders
- Funder Communications Professionals Group new
- CEO/Executive Leadership Group (monthly) renewed | virtual | 2x in-person social
- Corporate Funders Group (quarterly) renewed | in-person
- Member Happy Hours (quarterly) new | in-person | cross-region
Potential focus: new professionals, equity happy hour, program officers - Annual Members Meeting
- Speaker Series (1-3 opportunities, in-person and hybrid, likely in partnership)
- Internal: Member Engagement Committee
Resource Hub
- Launch of Listserv Pilot for CEO/Executive Group & Corporate Funders new
- Weekly Roundup Newsletter
- Website recalibration (potential regional collaboration for resource sharing) new
Relevant Issues-Based Programs
- Individual Programs in Development, spotlight on Partnerships (estimated 10-12 additional for 2025) such as Artificial Intelligence and Grantmaking, Fiscal Sponsorship and Other Nontraditional Models, and more.
Intensive/Specialized Learning Opportunities and Cohorts
- Mission-Aligned Investing programming
- Racial Equity in Philanthropic Practice (cross-learning opportunities, partnership in development)
New/Bold Initiatives
- Public Policy in Practice new
- Federal: Foundations on the Hill
- State: PA Governor’s Office Philanthropy Forum Pilot, partner: Gratmakers of Western PA
- Local: City of Philadelphia / County Government connections
Long-term Considerations
By the second quarter of 2025, Philanthropy Network Greater Philadelphia will have a better sense about the capacity from which we can create longer-term strategies for growth and sustainability. Infrastructure and process will need to be allocated by Board, staff, and members to consider questions such as:
- Staffing: What is the staffing model needed to support a sustainable Network?
- Business Model: What organizational models or business arrangements will best equip the Network to thrive outside of remaining a small, stand-alone nonprofit organization?
- Governance: What governance structure and practices will best suit a member-led and member-influenced organization?
- Partnerships: What kinds and degrees of regional or other partnerships will allow for optimal cost-sharing and cross-programming opportunities and increase efficiencies?
Conclusion
This process doesn’t end now but will continue onward as we begin to build back from our current state into a responsive and inspiring Network that members have called for and deserve. The work of rebuilding a thriving Philanthropy Network Greater Philadelphia is beginning. The process moving forward will need to be iterative, action-oriented, and sensitive to achieving what is realistic given our current state of reduced capacity.
The Network will need to focus on operationalizing mechanisms for ongoing and varied member feedback and influence, including the effective use of technology and connection platforms, committees, pathways to Board membership, and other areas. We will need to clarify methods for sharing resources (amongst members, outward to members, and more). We will need to streamline existing and onboard new methods for members to network, share ideas, gather insights, engage their colleagues in meaningful learning opportunities, and develop their own networks powered by Philanthropy Network Greater Philadelphia.
Our future success ultimately depends on member engagement and member action, and for this to happen the Network must be responsive, optimistic, transparent, and bold as we pursue deeper member value and consistency of purpose.
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