An Introduction to Foundation Work
Foundation philanthropy appeals to many law students interested in building and maintaining public interest programs. The prospect of learning about, selecting, and supporting creative projects attracts students looking for an alternative to traditional legal work. Lawyers can be found playing various roles at foundations. This guide examines the different facets of foundation philanthropy to help you explore the possibilities.
As explained in Working in Foundations,1 the first foundations worked for the benefit of specific institutions, such as hospitals, or focused on the alleviation of particular social problems. The approach to foundation philanthropy expanded in the late 19th and early 20th centuries with the establishment of general foundations such as the Carnegie Corporation of New York and the Rockefeller Foundation. Their broader charters enabled them to address the causes of social issues in addition to working towards their alleviation. For example, foundations now fund nonprofit organizations that seek medical cures in addition to providing money for the maintenance of hospitals.
The post-World War II era saw a tremendous growth in the number of foundations, especially in the 1980s when government regulations on businesses eased and personal wealth increased. The Gates Foundation, which had already vaulted to the status of largest foundation in the world, made a great deal of news recently with the enormous gift from Warren Buffet. Despite this growth, at this point foundation grants comprise a small percentage of the support for nonprofit organizations. Other types of support for nonprofits include government grants, corporate grants, individual donors and religious organizations. The Foundation Center, an organization that provides information on foundation philanthropy, includes data about recent trends in giving on its website.
Types of Foundations
The Foundation Center defines a private foundation as “a nongovernmental, nonprofit organization having a principal fund that is managed by its own trustees and directors, and that maintains or aids charitable, educational, religious, or other activities serving the public good, primarily by making grants to other nonprofit organizations.” Working in Foundations cited other names for a foundation such as “trust” or “endowment.” While not every organization that calls itself a foundation necessarily fits these parameters, all foundations must operate according to the guidelines detailed in the Tax Reform Act of 1969, as amended.
According to the Foundation Center, foundations can be classified by their sources of funding and the services they provide. There are essentially four types of foundations:
- Operating foundations provide direct services or guide research projects. Few make grants to outside organizations, and the majority of their funds go to internally operated programs; hence, the name operating foundation. The Carnegie Endowment for International Peace and the B.E.L.L. Foundation, which offers programs to assist African American children and teenagers, are two examples of operating foundations. At operating foundations, staff can get more involved in developing programs themselves.
- Independent foundations are the largest group of foundations and include family foundations, limited-purpose foundations, and general foundations. Most have broad charters that allow them to respond to changing social priorities and move into new areas of interest. These foundations normally fund particular subject or geographic areas. The Ford Foundation, for example, has nine interconnected areas such as Civic Engagement & Government, Creativity & Free Expression, and Disability Inclusion. The Ford Foundation has program officers in the United States, Africa, the Middle East, Asia, Latin America and Russia. The William and Flora Hewlett Foundation focuses its energies and funds on activities in education, environment, global development, performing arts, and population. In addition, this foundation specifically supports disadvantaged communities in the San Francisco Bay Area. Independent foundations receive their funds from families, individuals, or groups of individuals. If a family possesses influence over the foundation, then it is known as a family foundation. A limited-purpose independent foundation, such as the Glaucoma Foundation, funds projects in one or very few subject areas.
- Community foundations are also known as public charities. These foundations obtain their funds from numerous donors and donate them to nonprofits in a specific municipality or region. Some examples of local community foundations are the Greater Worcester Community Foundation and the Cambridge Community Foundation.
- Company-sponsored foundations, or corporate foundations, are established and funded by business corporations. An example is the Goldman-Sachs Foundation. Corporate officials sit on the boards of these foundations. Corporate foundations exist, however, as separate legal entities and are not to be confused with direct-giving programs over which corporations have complete control. These foundations place priority on activities in their region. They often have more intricate bureaucracies and may be more formal than other types of foundations.
Foundations differ structurally in many ways. According to the Foundation Center, one way to distinguish a foundation is to find out whether it is private or public. Private foundations are generally funded from a single source, such as an individual, a family, or a corporation. Public foundations are funded from multiple sources, including private foundations, government agencies, individuals, and fees for service.
Types of Jobs in Foundations
Each foundation, large or small, has a governing board. Among other activities, the board oversees the foundation’s finances, develops foundation standards and general policies, hires the CEO, and decides which programs to fund. Some boards review the staff’s recommendations regarding which projects to fund, while other boards act as rubber-stamps. The extent of the board’s power depends on the size of the foundation and the relationship between the staff and the board.
The highest-ranking staff position is the CEO, President, or Executive Director (hereinafter “CEO”). At smaller foundations, the CEO may be the only employee, responsible for the daily operation of the foundation. This often includes reviewing grant applications and managing finances, such as preparing the budget, fundraising, distributing any discretionary funds and tracking investments. These duties are communication intensive, with a great deal of time spent writing letters and making phone calls to board members, prospective programs, and news reporters. At larger foundations, the CEO also oversees the rest of the staff, although all staff members are ultimately answerable to the board. The CEO directs the staff-board relationship, attends board meetings, and may vote if they are a board member.
Another position is that of the program officer. Program officers at larger foundations handle the nuts and bolts of grantmaking. The program officer reviews grant applications in light of the foundation’s mission and helps prepare and present materials, such as funding recommendations, to the board. This responsibility not only involves reading proposals and publications from groups requesting funds from the foundation, but also involves researching groups that work on similar issues in order to keep abreast of developments and do their grantmaking more strategically. Program officers write reports on grant recipients. Some program officers may attend board meetings. Both CEOs and program officers often serve as advocates for the programs they fund, attending meetings and visiting sites of grantee partners. They also network and meet with foundation colleagues and activists working in their subject areas to learn more about current issues arising in their areas. At larger foundations like Pew Charitable Trust, there may be multiple program officers that head specific programs, such as the program officer of the environmental program or the program officer of the health and human services program.
Some large foundations have specific legal positions, such as General Counsel or Director of Legal Services. Lawyers working in the General Counsel’s office handle a variety of issues, some specific to foundations and some not, including employee benefits; contracts; real estate leasing, purchases, and renovations; and intellectual property. Work specific to a foundation includes due diligence and compliance work; reviewing grants to ensure that they conform to IRS guidelines and filing reports with state and federal agencies. Foundation lawyers might engage in corporate work related to the foundation’s investments, and occasionally litigation. Knowledge of tax law can be helpful in such roles.
A Question of Size: Big v. Small Foundations
The roles and responsibilities of staff members at foundations depend largely on the size of the foundation. In addition to considering the category of a foundation, consider the size of a foundation. Smaller foundations tend to have lean decision-making processes and thus can be less formal and bureaucratic. One alumnus highlighted the creative opportunity presented by smaller foundations. Program officers and CEOs claim they have the chance to shape policy and make changes because they possess a greater degree of autonomy compared to their colleagues at larger foundations. Many smaller foundations, however, are not as stable as their larger counterparts because of their narrower base of financial support.
An important fact to note is that larger foundations are more likely to have paid staff. Staff members at larger foundations tend to also have more defined responsibilities. For example, a larger foundation may have a vice president, senior director, senior grants administrator, executive assistant and several directors and program officers for each program division. Because these positions often do not involve legal work, training is not offered to new attorneys. At smaller foundations, staff members frequently share responsibilities. Some smaller foundations may have only one staff person. Thus, the President/Executive Director also serves as program officer, analyzing and selecting programs to fund. All staff members at large and small foundations encounter numerous requests for information and money.
How Legal Training Is Used
While many positions at foundations do not strictly require legal or other specialized training, a law degree can open doors to foundation jobs, which are often highly competitive. Lawyers working in foundations report that their employers trust a law degree as an indication of their capacity to do a generalist’s work. Employers in philanthropy place a high value on advanced degrees.
Attorneys performing non-legal work at foundations agree that their legal training is particularly helpful for understanding the issues and recognizing the need for legal intervention. Additional legal experience after law school helps attorneys to develop their abilities to write effectively, speak clearly, and gather information. Analytical tools developed in law school prove especially helpful in conferring with practicing lawyers, professionals and other specialists in the field.
A law degree can also help a lawyer at a foundation recognize a legal issue when it arises and decide when to confer with a practicing lawyer. CEOs or program officers who work with finances and investments find that a general knowledge of the law helps them evaluate strategies and programs. In other words, legal training can make a foundation CEO or program officer a better-informed legal client.
Deciding Which Foundation Is for You
The two most important factors in deciding which foundation best suits you are the foundation’s purposes and specific programs and the foundation’s working environment. The two factors can be related. Identify the types of programs offered by the foundation and decide if they interest you. Look at the foundation’s description of purpose and giving priorities reflected in its annual grants. Talk with current employees about their work. Conduct informational interviews with individuals who have worked there or at a comparably sized and programmatically similar foundation. For information on a foundation’s purposes and programs call and ask for written material or visit its website if it has one.
Other questions you might consider are:
- What is the board’s role? Is it active? Do staff and board share responsibilities, or does the board work as a rubber stamp? How much control does the staff have over foundation funds? The more responsibility that you have, the more rewarding the position will be.
- Are program officers involved in long-term planning? Is that something that you want to do or want to avoid?
- How closely tied is the foundation to the funding sources? A foundation closely tied to a single source of funding may or may not be financially stable, and may or may not have autonomy from the funding source.
- How does the foundation do its work? Is it involved in or detached from the programs it funds? The more closely that the foundation works with programs, the more responsibility you’ll have, the more skills you’ll develop, and the more people you’ll meet and get a chance to work with.
Preparing for a Career in Foundations
There is no one way for lawyers to prepare themselves to work at a foundation. Some foundations may look for lawyers with experience in the areas that fall within the foundation’s funding priorities, while others look for motivation and potential in lawyer-applicants. In all cases, networking is essential if lawyers want to establish careers and advance in foundation philanthropy. Lawyers working in foundations recommend that interested lawyers try to get connected with legal staff at larger foundations or with those running programs funded by the specific foundation. According to an anecdote related by a program officer, a recent law graduate was hired because her thesis concerned people from most of the programs funded by the institution. For lawyers without previous connections to foundation work, it is important to emphasize the skills they bring from their current situation to foundation work, how those skills apply to foundation work and why they are making a move to foundations.
Many lawyers who work at foundations come to their positions after tenure in public interest litigation or nonprofit work. Two-thirds of the CEOs interviewed for the book Working in Foundations had served as board members of nonprofit organizations, gaining valuable management and fundraising experience and an understanding of how groups receiving funds operate. A lawyer interested in working at a foundation should consider joining a nonprofit’s board of directors. The lawyers interviewed for Working in Foundations had worked an average of 23 years before turning to foundation work. It is possible, however, to work your way into a foundation at an earlier point in your career. Larger foundations offer many entry-level jobs. For example, some large foundations may hire several program assistants every year or every few years.
Many lawyers interviewed by OPIA recommended that interested students demonstrate a commitment to public service. Private sector lawyers should take on pro bono work to show enthusiasm and make contacts. Clinical experience at law school also helps develop inter-personal skills and an understanding of the issues involved in various programs.
In sum, although there is no exact way to prepare for a career in foundations, students should work to develop the following:
- Networking skills. Alumni, professors, and foundation staff are good contacts to maintain.
- Writing and speaking skills.
- Analytical skills.
- Knowledge of finance, tax law, charitable giving, and general legal procedures.
- A specific set of interests that you are both passionate and knowledgeable about.
The Hiring Process
The hiring process in foundations is often network intensive. Foundations frequently hire lawyers they’ve worked with or lawyers who have worked with organizations they fund. Small foundations with one or two program officers and a CEO often wait for a staff member to leave. The low turnover in foundation work makes these positions difficult to obtain. One woman in foundation work called the field hierarchical but not inaccessible.
Some foundations place advertisements in the Chronicle of Philanthropy and the job circulars of the Regional Grantmakers Associations, which maintain libraries and other resources about grantmaking groups. Check the telephone directory to locate your local Grantmakers Association or visit http://www.givingforum.org/. The Council on Foundations has a job bank that can be found at www.cof.org. Also, check www.candid.org for more information. Because of the large volume of resumes they receive, most foundations find it easier to hire through personal and networking contacts. In addition to developing new contacts, a prospective applicant should draw from past relationships by contacting college and law school classmates and through recommendations from alumni.
The Regional Grantmakers Associations have information on salary ranges for program officers and CEOs that can be found in their Grantmaker Salary and Benefits Report of the Council on Foundations. Salary depends largely on the size and type of grantmaker as well as region.
Rewards and Frustrations
All of the lawyers we spoke with praised foundation work as an opportunity to support public interest work, to meet activists engaged in cutting-edge projects, and to work with committed and extraordinary colleagues. An executive director from a limited purpose foundation extolled the variety of his duties, including visiting grantees, training new employees, and conferring with an ad agency.
The lawyers interviewed named other benefits, such as access to more resources than at many public interest organizations, and more control over their schedules than in traditional lawyering. Some lawyers enjoyed escaping the deadlines and pressures of litigation. They found that working at a foundation allowed them to consider a broader perspective and engage in long-term planning in their foundation’s area of interest.
According to one lawyer, working as a program officer was rewarding because she could evaluate a set of needs and see how to meet those needs. She was able to encourage and implement creative ideas. Often, lawyers who have worked in direct services to individual clients find that they feel more effective in foundations doing preventive work and capacity building rather than putting out fires.
The removed aspect of foundation work, however, frustrates many lawyers, who miss the excitement of providing direct services on the frontline. Whereas some lawyers feel empowered by preventing the fires, other lawyers enjoy the immediacy and intimacy of putting the fires out. One attorney found a balance between taking the long-term view and engaging in immediate hands-on work by spending half of her time on site visits, visiting clients, and evaluating programs in the field. Other frustrations of foundation work may include difficulties in relationships with grant applicants. For example, attorneys find it difficult to get potential grantees to speak frankly about their organizations, given the relational power dynamics.
It can also be tiring and disappointing to be unable to fund all the organizations that deserve funding. One lawyer maintained that, on some days, she felt like she said “no” for a living. Another lawyer found that partisan politics kept shifting in her region and interfered with her long-range planning more than she had expected. Recently, foundations have also suffered criticism for their grantmaking processes. The career ladder in philanthropy does not offer a wide range of opportunities for upward mobility, with the exception of moving into a larger foundation or a CEO position.
Yet even in the face of these drawbacks, most foundation lawyers find their jobs extremely fulfilling. In the next chapter several foundation lawyers describe their career paths, the details of their work, and what they find compelling in working for a foundation.
Personal Narratives
Note that all personal narratives in this Guide reflect titles that were current when the narratives were collected.
Selected Foundations
Endnotes
[1] Boris, Elizabeth Trocolli; Arlene Kaplan Daniels; and Teresa Jean Odendahl. Working in Foundations: Career Patterns of Women and Men. Foundation Center: New York, 1985.