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Effective Grantmaking for Small Foundations: The Butler Family Fund

Date Published: March 7, 2006

The defining question for small foundations is this: In the vast realm of philanthropic giving, how can we make a difference? At the Butler Family Fund, some answers have become clear.

First, we know that small grants can leverage large public dollars. Even in tough economic times, the public sector is still the most important financial player in the low-income housing market. Our primary focus on homelessness has been to work to increase the supply of permanent housing for homeless people, for which government investment in must be part of the solution. For this reason, we have supported local, regional, and national efforts to increase public resources for low-income housing.

Second, we know that advocacy matters. In our view, organizations engaged in advocacy should be embraced, not avoided. A vital part of our grantmaking arsenal, advocacy means fighting for policy changes that make our system more fair. We have seen the dramatic impact that our grantees and others have had when they shine a spotlight on unacceptable policies and work to change them. Our grantees have launched successful public awareness and education campaigns surrounding issues like the death penalty and drug policy reform.

We also acknowledge that the rewards of advocacy are difficult and in some cases, impossible, to measure. We recognize the need to make long-term commitments to funding advocacy, even when results are not immediately quantifiable and when inevitable setbacks occur. We have learned that in the long run, the impact of positive policy changes make it worth the wait.

Third, we take risks in our willingness to spend more than the law requires. Even spending at this rate, however, we still had over $13 million in assets at the end of 2003 as the result of successful investment management. We also take risks in our grantmaking by investing in promising people and programs whose visionary strategies make sense, even if they have not yet produced a substantial policy impact. Our experience shows us that a small grant that helps an organization get started, or that launches a seemingly modest educational effort, can have enormous value in the years to come.