By Katy Moore, Director of Member Services
 Ostrower |
On Dec. 2, Washington Grantmakers partnered with the Aspen Institute and the Philanthropy Roundtable to provide an opportunity for trustees to hear from renowned foundation spend down expert, Dr. Francie Ostrower, professor of public affairs at the LBJ School of Public Affairs at the University of Texas, Austin.
Dr. Ostrower’s research – which will be made available in early 2011 – approaches foundation spend down as a specific philanthropic strategy with a variety of benefits, including:
- the ability to make larger investments over a shorter period of time;
- the renewed sense of urgency that a deadline lends; and
- the inevitable self-assessment, evaluation and focus that comes with that urgency.
As one trustee said, “There is a huge psychological difference when you suddenly have to make a difference in your lifetime rather than hoping that you make a dent and that your kids and grandkids will do the same.”
Dr. Ostrower walked attendees through the major decision points in the spend-down life cycle and provided insights into her research findings. One finding of note is that limited-life foundations often become very strong partners for their grantees due to increased transparency and increased investments in grantees’ organizational health, capacity and sustainability. Limited-life foundations understand that their grantees will continue the foundation’s efforts and need to be in a strong position after the spend down.
For more information on foundation spend down see:
- Beldon Fund’s Spend Out Strategy and Resources
- Beldon Report: “Beyond 5%: The New Foundation Payout Menu”
- Foundation Center resources
