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Nonprofit Newswire | Social Innovation Fund Called “Diversion” by Eisenberg

Ruth McCambridge
June 2, 2010

June 1, 2010; Source: Chronicle of Philanthropy | Pablo Eisenberg published an editorial in the Chronicle of Philanthropy yesterday that questioned the strategic wisdom of adding another $45 million in new philanthropic investments to the $50 million being managed by the Social Innovation Fund. NPQ has published an article on this development today. Eisenberg says that there are bigger fish to fry both by philanthropy and by the Obama administration. He suggests that the money, while heralded at finding the “hidden gems” among nonprofits, appears to be headed to the coffers of “fairly large, fairly safe nonprofit organizations that can generate good publicity.”

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Further, he asserts that there are large areas of the country in which critical nonprofit work is underfinanced by grant makers, specifically, the south and southwest and that this might be a better focus of philanthropic attention. “Another $50-million of private money to support a government effort that is already limited in scope by its federal financing is neither smart nor strategic,” says Eisenberg, rather the President should use his bully pulpit to suggest or push to require that foundations spend out at 6 percent rather than 5 percent, a move Eisenberg says would add $10 billion to grant making in the country.—Ruth McCambridge

About the author
Ruth McCambridge

Ruth is Editor Emerita of the Nonprofit Quarterly. Her background includes forty-five years of experience in nonprofits, primarily in organizations that mix grassroots community work with policy change. Beginning in the mid-1980s, Ruth spent a decade at the Boston Foundation, developing and implementing capacity building programs and advocating for grantmaking attention to constituent involvement.

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