Most foundations I know describe themselves as practicing strategic philanthropy. For many, “strategy” means choosing specific fields to fund, such as aging, Jewish poverty, or combatting antisemitism. Others feel they are strategic because they proactively solicit proposals rather than simply evaluating whatever arrives in their inbox.

For funders and foundations to truly maximize impact, they need to go further. Strategy means making every important decision based on whether it advances the foundation’s goals.* 

Below is one example of a process for becoming genuinely strategic.

A Seven Part Process

1. Within the field(s) you fund, choose a few priorities where ambitious goals can be realistically achieved.

2. For each priority:

• Define and quantify the problem.

• Describe the causes of the problem.

• Ask: Is more information needed to quantify the problem or understand its causes.

• Consider: To what degree do we think we can alleviate or solve the problem.

3. Based on this analysis, set specific and measurable goals.
Identify what outcome will have been achieved if the foundation is successful. This becomes the BIG GOAL or GOALS.

4. Identify the factors that stand in the way of solving the problems.
Examples include:

• Insufficient financial resources

• Necessary programs have not yet been developed

• The public is not aware of or does not care about the problem

• Regulation or legislation is needed

• Institutional gridlock or opposing interests seek to block the necessary change

5. Determine what resources will be necessary to overcome these impediments.
Examples include:

• Foundation dollars

• Additional financial supporters

• Jewish and non Jewish operating organizations, locally and beyond

• Influential spokespeople and/or clergy

• A marketing campaign

• Research and policy recommendations

• Coalition building

• Advocacy or lobbying (keeping in mind the lobbying restrictions on foundations)

6. Decide how to employ your financial and human capacities as tactics to reach the strategic goals, and on what timeline.
Ask:

• How will we assess progress over time.

• If the programming is successful, will the solution endure.

• Most importantly, in light of all the thinking after Step 3, are the BIG GOALs achievable, or should we rethink the extent of our ambitions.

7. When satisfied with the above steps, implement, assess, and iterate.

An Example in Practice

I am currently guiding a foundation which is now beginning this process. As an exercise, we took one of the goals identified by the needs assessment that the foundation had conducted and roughly sketched what would be required to address the problem at scale in a sustainable way.

It quickly became clear that the foundation’s entire annual spending could be devoted to just this one area. The foundation realized that it needed to recruit philanthropic partners and build capacity at some local institutions so that the solution is owned and advanced by the larger community leadership.

The process of building strategic planning for this foundation will continue in a more intensive way after the board and staff have studied the needs assessment and other data to the point that they feel confident they understand the scale and causes of the problems they wish to solve. They will then begin to develop concrete goals, programs, and other tactics to implement. The full planning process will likely take approximately four to five months.

Not every foundation has the bandwidth to develop and implement a strategy at this level of detail. However, even smaller foundations can become more effective by raising their ambitions, clarifying their goals, and ensuring that their grants work synergistically toward the achievement of clear expectations.

If you are interested in support as you consider your strategic priorities and how to address them strategically, please email Yossi Prager at yossi@jfunders.org.

*As an exception, funders may want to set aside a portion of annual giving that is not strategic but meets social or civic obligations or provides immediate emotional gratification.