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Despite a field replete with research, analysis, recommended policies and practices — not to mention an abundance of educational programs and frameworks for grantmaking to diverse communities — philanthropic leaders have been slow to advance these values in their foundations. Philanthropy Northwest (PNW) wondered: what is getting in the way? Why are good intentions, buttressed with theory and practical advice, not achieving better results on measures of diversity, equity and inclusion?

With the support of the D5 Coalition, PNW began a year-long study to explore these questions. The study was divided into two parts. They began with personal interviews of 23 philanthropic leaders in the Pacific Northwest. In order to better understand how these organizations incorporated diversity, equity, and inclusion into their work and workplaces, they collected baseline information about their staff composition, leadership styles, and organizational practices/policies.

This report details their findings. It includes an in-depth look at the peer cohort model, in which ten foundation leaders met regularly to discuss these issues and support each other in advancing their own leadership. It also includes practical lessons about shifting organizational cultures towards greater diversity, equity and inclusion — lessons drawn directly from the experiences of peer cohort leaders.

PNW presented this work in a webinar hosted by the D5 Coalition. The webinar recording and slides are below.

Who We Are

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The Council of New Jersey Grantmakers is a community of practice for philanthropic professionals who are dedicated to improving New Jersey’s communities. As the center for philanthropy in the state, CNJG supports the philanthropic sector through shared learning, collaborative and trusting relationships within philanthropy and with nonprofit partners, thought leadership, and advocacy efforts. Since 1990 when CNJG became a project under the Community Foundation of New Jersey, then an independent 501(c)3 organization in 1997, CNJG operates on the principle that philanthropy is more effective through connection, collaboration, information exchange, and continuing education.

By joining CNJG as a member, your philanthropy is connected to dozens of other philanthropic organizations across the state, and you support the work that, in turn, benefits you and the entire philanthropic sector.

Access the myriad of benefits that CNJG membership provides.

How to Join

Joining CNJG is simple. Just complete and submit the appropriate application for your organization:

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Soon after you submit the completed application, CNJG will review it, and then email you an invoice from which you can use to submit your membership payment by EFT, check, credit card (CNJG adds a 3% fee for credit card membership payments.

Though subject to the board’s approval, we typically activate membership within 2-3 working days, and you’ll become a member with full access to the unique value CNJG provides. See all of the benefits of CNJG membership under our Member Benefits page.

The membership period begins January 1st and runs through December 31. Organizations joining after July 1 will have their first year dues prorated. Organizations who choose to do so may calculate their membership dues by using an average of their annual grantmaking over the past three years. Some members choose to make all or a portion of their dues in the form of a grant. For tax purposes, all dues in excess of $770 may be reasonably reported as a grant.

CNJG reserves the right to determine an organization’s eligibility for membership.

Membership Criteria

All members must meet the following membership criteria:

“The Council provides a network where I can tap into colleagues who may have valuable experience with an issue, grantee or vendor.  In addition, Council research can prove extremely useful for any number of decisions, large or small.”
-Etta Denk, Senior Vice President, Corporate Social Responsibility, Bank of America

1. A prospective member’s core interest in joining CNJG is a desire to improve the quality of its own grantmaking and to work with other members to improve the field of grantmaking and support the people, communities and nonprofits of New Jersey.


2. The primary function of a prospective member is making charitable grants. Exceptions to this policy include federated funds, public foundations and Associate members.


3. It is expected that the substantial amount of the organization’s activities should be centered on grantmaking. For corporate giving programs, the term “organization” refers to the corporate giving unit, not the entire corporation. Exceptions to this standard, noted above, include public foundations, private operating foundations, Federated Funds, individual members, and Associate members.


4. The prospective member’s grant distributions are made primarily on a discretionary basis to multiple (two or more) nonprofit organizations that are not subsidiary or otherwise directly related to the prospective member. No more than 60% of the grants given should be directed to one organization (including subsidiaries).


5. Organizations applying for membership must complete and submit the appropriate membership application form (above).


6. Each member adheres to our non-solicitation policy (below).

Membership Policies

1. The annual membership period is from January 1 to December 31. After July, we pro-rate new memberships for the remainder of the year.


2. Grantmaking member dues for 2025 are based on an organization’s total annual grantmaking. Please calculate your dues using either option:
   Your 2024 giving, or
   An average of the past three years of giving (2022, 2023, and 2024)


3. Organizations headquartered or based within New Jersey base their dues on the organization’s total giving. Organizations headquartered outside of New Jersey base their dues on their giving in New Jersey only.


4. Dues for government agencies are based on a percentage (0.2%) of the Agency/Division administrative allocation/budget. If the agency does not have an administrative budget, dues will be based on the level of grants made each year (see dues structure below).


5. For foundations that are sunsetting, dues are based on 5% of the assets, rather than the annual grantmaking. Board minutes confirming the decision to sunset are required when joining.


6. For United Way organizations that give grants, please base dues on your discretionary grantmaking only. Do not include your pass-through dollars.


7. For Community Foundations, please base dues on all your grantmaking, including donor advised funds. Your DAF holders are most welcome to attend our programs as members. Please do not, however, include any nonprofit endowment funds that you might manage.


8. Memberships are considered lapsed if, by July 1 of the membership year, CNJG has not received a pledge to pay.


9. If a non-member grantmaker attends three events/meetings, CNJG expects them to join the organization.


10. CNJG’s Board of Trustees retains final discretion on all matters concerning membership. If you are unsure of your organization’s eligibility, please contact CNJG.

Membership Categories

Grantmaking organizations eligible for CNJG membership include:

• Community Foundations: A community foundation is a tax-exempt, nonprofit, autonomous, publicly supported, philanthropic institution composed primarily of permanent funds established by many separate donors for the long-term diverse, charitable benefit of the residents of a defined geographic area. Community foundations provide an array of services to donors who wish to establish endowed and non-endowed funds without incurring the administrative and legal costs of starting independent foundations. A community foundation’s donor-advised funds are included in the membership, and any and all of the fundholders are invited to participate in CNJG programs and services. Because the community foundation has the established relationship with its fundholders, CNJG relies on the community foundation to invite its fundholders to participate in CNJG programs and services.
• Corporate Foundations: A corporate (company-sponsored) foundation is a private foundation that derives its grantmaking funds primarily from the contributions of a profit-making business. The company-sponsored foundation often maintains close ties with the donor company, but it is a separate, legal organization, sometimes with its own endowment, and is subject to the same rules and regulations as other private foundations.
• Corporate Giving Programs: A corporate giving (direct giving) program is a grantmaking program established and administered within a profit-making company. Gifts or grants go directly to charitable organizations from the corporation. Corporate giving programs do not have a separate endowment; their expense is planned as part of the company's annual budgeting process and usually is funded with pre-tax income. Generally, staff that operate the corporate giving program are the main users of CNJG programs and services.
• Donor Advised Funds: A fund may be classified as donor advised if it has at least three characteristics: (1) a donor or person appointed or designated by the donor has, or reasonably expects to have, advisory privileges with respect to the fund’s distributions or investments, (2) the fund is separately identified by reference to contributions of the donor(s), and (3) the fund is owned and controlled by a sponsoring organization, such as a community foundation. A fund possessing these characteristics may be exempt from the donor advised fund classification if it grants to one single public charity or government unit or if the fund meets certain requirements applicable to scholarship funds. Typically, Donor Advised Funds are held at a community foundation, or a commercial entity, which may have a membership with CNJG already. Should a fund want to receive communications directly from CNJG without the intervention of the community foundation or commercial entity, please contact CNJG. Donor Advised Fund members are reminded that CNJG membership cannot be paid from the DAF, and must come from a different account, according to IRS regulations.
• Family Foundations: A foundation whose funds are derived from members of a single family. At least one family member must continue to serve as an officer or board member of the foundation and they or their relatives play a significant role in governing and/or managing the foundation throughout its life. Most family foundations concentrate their giving locally, in their communities. “Family Foundation,” however, is not a legal term.
• Federated Funds: A centralized campaign, most commonly a United Way organization, whereby an organization raises money for its member agencies. These annual workplace giving campaigns raise millions of dollars for distribution to local, state, and national nonprofit organizations.
• Giving Circles: A collaborative philanthropy in which individual donors pool their money and other resources, and decide together how and where to give them away. In New Jersey, many giving circles are a component fund of a community foundation, which may have a CNJG membership already.
• Government Grantmakers: A government agency that provides grants to 501(c)(3) organizations. Note: dues for Government Grantmakers are calculated differently: dues are based on a percentage (0.2%) of the Agency/Division administrative allocation/budget. If the agency does not have an administrative budget, dues will be based on the level of grants made each year (see standard dues structure on the membership application).
• Independent Foundations: An individual usually founds these private foundations, sometimes by bequest. Sometimes individuals or groups of people, such as family members, form a foundation while the donors are still living. Many large independent foundations are no longer governed by members of the original donor's family, but are run by boards made up of community, business and academic leaders. They are occasionally termed “nonoperating” because they do not run their own programs.
• Private Operating Foundations: Private operating foundations derive their annual budget from an endowment or from a sole donor or some other reliable source of income for which the foundation does not need to fundraise or solicit. If, however, a private operating foundation primary function is to be a fundraising arm for a nonprofit, and does not support two or more unrelated external organizations, similar to supporting foundations, it is not eligible for membership with CNJG.
• Public Foundations: Also known as public grantmaking charities. Public foundations, along with community foundations, are recognized as public charities by the IRS. Although they may provide direct charitable services to the public and receive donations from the public as other nonprofits do, their primary focus is on grantmaking. To qualify for CNJG membership, a public foundation must spend the substantial amount of time and effort on grantmaking and no more than 60% of its grants should be directed to one organization.
• Family Offices with Philanthropic Advisors: Not a formally-created foundation, but an office that should do, at least, half of the following:
  1. Help the principals to develop their grantmaking priorities
  2. Develop strategies for specific grantmaking program areas
  3. Craft or manage grant application procedures
  4. Research and/or forge relationships with prospective grantees
  5. Manage relationships with existing grantees
  6. Coordinate the grant evaluation process, including the creation of proposal dockets for board review
  7. Manage the disbursement of funds to grantees
  8. Develop and coordinate evaluation of grant outcomes
• Philanthropic Individuals committed to sustained, strategic philanthropy and who are giving more than $20,000 annually to a variety of nonprofit organizations.

Non-grantmaking entities that support grantmaking can join as Associate Members of CNJG. The following are eligible for CNJG Associate Membership:

• Philanthropic Advisors: Consultants engaged to advise individuals or companies on their grantmaking, and who are not working on an on-going basis for a specific foundation or family office, can join as a single individual. If a firm is interested in joining, thereby paying for all advisors to join, please contact CNJG to discuss. Philanthropic Advisors must conform to CNJG’s non-solicitation policy.
• Community Development Financial Institutions (CDFIs): Private financial institutions that are fully dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. CDFIs that have any size of grantmaking portfolio should join as a Grantmaker member as a public Grantmaker. CDFIs that do not have a grantmaking portfolio, but are giving low-interest loans or making an impact through such vehicles can join as an Associate member.

Organizations that are typically not eligible for membership are:

• Supporting Foundations: A supporting organization is a section 501(c)(3) organization that qualifies as a public charity (and not a private foundation) because it has a close relationship with another publicly supported section 501(c)(3) organization. Most often, these are hospital or university foundations. A supporting foundation acting as the fundraising arm for the hospital or university, is not eligible for membership because it does not meet the Council’s membership criteria to provide charitable support to two or more unrelated external organizations on an annual basis.
• 501(c)3 Nonprofit Organizations: Nonprofit organizations that are seeking funds are not eligible to join. If however, within their scope of work there is a grantmaking component (most often a regranting organization) without a formal and separate foundation create, please contact CNJG to discuss eligibility.

Non-Solicitation Policy

CNJG strives to create a community of practice characterized by mutual respect and trust for philanthropy of all shapes and sizes to connect with each other thereby improving grantmaking in New Jersey.

In order to foster a safe, brave, and collegial place where members can share best practices and lessons learned, no fundraising is allowed at CNJG events. Collaborative grantmaking, however, is encouraged.

By joining CNJG, members agree to the following non-solicitation policy:

• Soliciting funds, contracts, and consulting clients is strictly prohibited at all CNJG events (with the exception of sponsors and exhibitors for our signature events) and on our digital listservs and platforms.
• For organizations that both raise funds and make grants, your participation in CNJG activities is as a grantmaker only. Staff whose functions are primarily fundraising (e.g., development staff) within institutions that are both grantseeking and grantmaking are not eligible for participation in CNJG activities, with the exception of our Spring Conference/Colloquium for the Social Sector.
• Contact information on CNJG’s Member Directory and other lists is for networking purposes only. Please do not add contact information to your mailing list without an individual’s explicit permission. Please do not use email addresses, phone numbers, or other contact information for soliciting funds, business, or contracts. Please do not forward other members' contact information to grantseekers without their permission.
• CNJG reserves the right to restrict the participation of individuals or organizations whose behavior contravenes the letter or spirit of our non-solicitation policy.

Membership Dues

Membership dues for grantmaking members follow the schedule below. Please refer to the Membership Policies section for additional specific guidelines for dues calculations.

Membership dues for Associate Members:
Community Development Financial Institutions (CDFI’s) without grantmaking portfolios dues are $1,630 for the organization. A CDFI that has a grantmaking portfolio should base dues on that grantmaking portfolio according to the dues schedule above. As with our grantmaking members that are both grant seekers and grantmakers, please do not include any fundraising staff as part of the membership. For clarifications, please contact CNJG.

Dues for an individual philanthropic advisor are $1,630. If a firm is interested in joining to have more than one advisor on staff join, please contact CNJG to discuss.

Leadership Gifts

Some members include an additional gift to help cover the costs of CNJG’s operations. Membership dues cover about 40% of our operations. These welcomed and unrestricted funds help underwrite the many programs and services that CNJG provides to our members and the philanthropic sector.
 

Sponsorships

In addition to membership, CNJG offers companies and foundations the opportunity to sponsor events, programs, and services. Please contact Theresa Jacks for more information.

For any other questions or to learn more about CNJG membership, contact Craig Weinrich.

On April 24, 2008 a $19 million landmark award was announced that will strengthen Newark public charter schools. The award comprises grants from seven funders including four national family foundations -- the Bill & Melinda Gates Foundation, Doris & Donald Fisher Fund, Robertson Foundation, and The Walton Foundation -- and three New Jersey funders -- the MCJ and Amelior Foundations, Prudential Foundation, and Victoria Foundation.
 
The national funders have pledged $4 million each and the New Jersey foundations have earmarked $1 million each toward the initiative.  “We welcome these generous national foundations to Newark, and we are grateful for the new investment from three of the city’s longstanding philanthropic partners,” Mayor Cory Booker said.

The $19 million is part of a larger $25 million campaign to help expand and strengthen the capacity of Newark’s charter schools.  For further information, visit the website of the newly established Newark Charter School Fund.

Grantmakers Convene Around Prisoner Reentry
A group of 30 grantmakers and Newark officials gathered on April 28 at the offices of the Charles Edison Fund to get a close-up look at the City’s strategies to address the growing issue of prisoner reentry, one of Mayor Booker’s key priorities. Newark faces an influx of 1,500-2,000 men and women every year returning from incarceration. At the same time, 15,000–20,000 individuals are currently on probation or parole in Essex County, the majority in Newark.

Funders seeking to positively impact the city and its residents have a vested interest in helping to improve prospects for the rising number of incarcerated persons returning home. The challenges are complex and intertwined with issues of public safety, job creation and job-readiness, family reunification and fatherhood, access to housing and addiction services, and vigilant case management.

Cornell Brooks, executive director of the New Jersey Institute of Social Justice, gave an overview of the barriers which prevent ex-prisoners from successfully reentering society. Among the most burdensome hurdles are prohibitions on conditional driver’s licenses and inflexible fine payment plans. Such measures effectively close the doors to viable employment options upon release. Another barrier is the effect of exorbitant surcharges on collect telephone calls from prison. The high charges contribute to the erosion of family ties during incarceration, thereby reducing successful family reunification post-release. 

Richard Greenwald, an executive on loan to the City from the Manhattan Institute, cited the importance of creating transitional jobs immediately upon release as a proven means of reducing recidivism. Wanda Moore, Director of the Prisoner Reentry, explained the need to mobilize and organize multiple nonprofit and government partners to better serve ex-prisoners. She described “Opportunity Reconnect,” a one-stop center operated by the City, which is helping link ex-prisoners to case managers, job services, and myriad agencies.  Performance measures and data-communications systems are in the development stage to help the City assess and evaluate its effectiveness at helping individuals successfully return to the community and their families.
 

By now you’ve heard the sad news. One of New Jersey’s most recognized, accomplished, and beloved leaders in the philanthropic sector passed away on Sunday, January 28.

Jeffrey Vega, President and CEO, Princeton Area Community Foundation, CNJG Board Chair from 2021 to 2023, and Board Trustee from 2016 to 2023, succumbed to an especially rare and aggressive form of cancer.

Jeff joined the CNJG Board of Trustees in 2016. As Board Chair, he led and guided CNJG through the pandemic years, a leadership transition, and strategic planning process. His legacy of leadership includes the 2023 - 2025 Strategic Plan, the creation of a Racial Equity Taskforce, now a committee of the Board, strengthening and improving our governance practices and policies, our first policy agenda, and adoption of the New Jersey Principles for Philanthropy, our equity principles.

It was with great pleasure that we celebrated Jeff at the Annual Meeting & Holiday Gathering on December 14, as he rotated off the Board, and presented him with a framed gift highlighting and praising his leadership and work with the Council. Jeff shared with me that the event was one of the best days of his life. He told me how grateful he was for the love and friendship he felt in the room. Angie, his wife, accompanied him to the gathering, and recorded the business portion of the meeting. Jeff said, when he and Angie went home, they watched the event with Nico, his son. Jeff was truly happy and touched. It meant so much to him. I’m grateful that we were able to give him that special day.

The CNJG Board and team are discussing how we can honor Jeff. Once we have a better idea, we’ll share with you. In the meantime, the Princeton Area Community Foundation has created a beautiful tribute – Remembering Jeffrey M. Vega.

On a more personal note, it was an absolute joy to work so closely with Jeff in his role as Board Chair. When Jeff and I were planning the Board agendas and Board discussions, he always wanted to focus on the positive. He always wanted Board members to walk away feeling uplifted, valued, and inspired. He spoke many times about how much he appreciated his Board colleagues, and all the CNJG members. There was a certain kind of harmony that surrounded Jeff. One felt enveloped in that harmony in talking and sharing space with Jeff.

Like all of us, I can’t believe he’s gone, and I miss him. We all miss him. Rest in peace, dear friend, and colleague. Thank you for inspiring us, Jeff. You truly made a difference in the lives of so many. I can truly say that I am a better person for just knowing you. I’ve heard countless others say the same. Your legacy lives on.

Warmly,

Theresa Jacks, President and CEO
Council of New Jersey Grantmakers

Join us at the second NJ Corporate Philanthropy Network meeting of the year which will focus on what specific information you should zero in on when searching for any red flags in non-profit 990’s and financial statements. Seasoned Accountants, Sherise D, Ritter and Lovepreet Buttar, from The Mercadien Group will guide us. We’ll also touch on vetting sponsorship requests and hold our traditional round robin where meeting participants can share their burning questions/issues and lessons learned.

Lovepreet Buttar, Managing Director with Mercadien’s Nonprofit and Human Services Group, has extensive experience performing and overseeing audit engagements for various nonprofit organizations, including associations, schools, private foundations, and health and human services organizations. She is passionate about helping these organizations support their constituents and achieve their mission. She is also head of the firm’s Audit and Assurance practice and is responsible for both firm-wide and engagement-specific quality control matters and overseeing training for various for-profit, not-forprofit and government/public entities. In this role, she helps ensure the firm is using best practices that are compliant with Generally Accepted Accounting Principles (GAAP).

Sherise (Sherry) Ritter is Managing Director and Co-Chair of the The Mercadien Group’s Nonprofit and Human Services Group, as well as the Advisory Services Group. Serving as a trusted advisor, she meets with all of her clients at least once a year to advise them on topics such as tax planning and preparation, identifying risk areas and formulating solutions, strategy to meet growth goals, and multi-state and unrelated business income taxation and filing exposures. Additionally, she helps her clients with strategic planning, process efficiency and improvement studies, and mergers and acquisitions. She also specializes in the areas of cash flow management, accounting systems design, and board governance training.

Cost: Free for CNJG Members; $50 for Non Member Grantmakers
This program is only open to staff and trustees from grantmaking organizations.

Webinar Video

Resources
Blank 990 Form
990 Forms and their Schedules
The Overhead Myth: Crash Course to Fundraising Transparency
Charity Navigator's Assessment of Finances

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Multi-year Grants

Affirmation: Multi-year funds provided both reliability and breathing room for nonprofits.

Making fundamental and long-lasting change comes with the promise of reliable investments. Longer grant terms create an environment where collaborative partnerships can flourish, and trust and transparency break down power dynamics. The result is that nonprofits have the “breathing room” and financial stability to focus activities where they are most needed.

Although many funders award grants to the same nonprofits year after year, they often require submission of annual applications that request information they already have and are complex and needlessly lengthy. These processes can heighten mutual distrust. From a practical standpoint, multi-year awards reduce paperwork for both funder and nonprofit and open communication channels promoting shared goals, mutual trust, and increased overall impact.

Activities
• For funders that historically award repeat annual grants to the same nonprofit partners, shift from an annual grant/proposal cycle to a long-term, multi-year commitment with an annual outcomes/progress report in lieu of a full application.
• Tailor grant terms to suit grantee timelines and needs (negotiated outcomes and milestones).
• If data collection is required solely to meet a funder’s compliance requirements, the funder should assume this responsibility or provide sufficient funding and/or capacity for the nonprofit to meet the requirement.

Short-term Outcomes
• The number of funders making multi-year grants increases by 50% over the previous years.

Long-term Outcomes
• More funders convert an annual application process for repeat grantee partners to a multi-year commitment with an annual outcomes report at the most, instead of full proposals each year.
• Funders assume responsibility for data collection or provide sufficient funding and/or capacity for the nonprofit to meet the requirement.
• Grant terms are suited to grantee timelines and needs (negotiated outcomes and milestones).

How to Begin Doing Good Better on Reliability

Learning opportunities
• What barriers keep funders from making long-term commitments to repeat grantee partners? Are any of these barriers legal?
• What are the minimum data requirements for funders to collect from repeat grantee partners?

Pre-Work
• Address the barriers to awarding multi-year grants through tested tools.
• Learn about how multi-year grants strengthen grantee partners and improve philanthropic, nonprofit, and community impact.
• Research mechanisms funders can use to meet legal compliance requirements while gaining trust in their grantee partners.

Foundations are systems. They have their own cultures and related assumptions, norms, standards, and practices. All of these personal, social, and structural factors affect our ability to learn.

This tool is to help foundations take stock of their learning needs and opportunities with a dispassionate (evaluative) look at themselves as systems and how people work within them.

The tool is based on the work of systems theorist Donella Meadows. Her work resonates because it recognizes both systemic constraints and possible leverage points for addressing them. Meadows identifies a series of leverage points for changing a system, ordered from least to most powerful. We adapted her work to show how each lever can reinforce learning in an organization or system.

Use the tool to examine the list of 12 leverage points, ordered in terms of their power for shifting a system to support learning, from weakest (1) to strongest (12). Higher leverage points produce stronger, broader, more durable change.

According to Meadows, we often are disappointed in the results of systems change efforts because we tend to tweak the least powerful levers in the system — such as skill building or the flow of resources or information. We find this can be true with learning in philanthropy, where many foundations support learning with tools and training alone.

Which leverage points are you currently using to support learning in philanthropy? Where else can you push to make that support stronger?