Jobs Opportunity Affinity Group Feasibility Study

1. Jobs Opportunity Affinity GroupFeasibility Study Prepared By: Angel H. Bermudez, AHB & Associates In Partnership With Anna S. Wadia Study Funded By: Annie E. Casey Foundation and the Joyce Foundation June 2009

2. The affinity group could play and provide the following roles and functions: • Play an influential role on issues that address the employment, training, and educational needs of particular populations and communities • Promote collaboration among foundations, public/private partnerships, and dialogue with policymakers • Provide opportunities to leverage philanthropic with public resources to make the best and most efficient use of limited funds • Organize professional development opportunities and issue-specific briefings for new and existing foundation staff and trustees Background This Feasibility Study was undertaken to assess the viability of establishing an affinity group focused on jobs and employment-related issues, tentatively called the Jobs Opportunity Affinity Group.

3. Methodology Components of the Feasibility Study included: • Development of a concept paper • Establishment of an Advisory Committee • Interviews with representatives of 14 local and national foundations; a focus group of 9 Chicago area foundations; and a questionnaire completed by 9 Advisory Committee members • Survey of Advisory Committee members • Informal dialogues conducted with a set of affinity groups that have some related approach to the field • Assessment of 2007 grants data for the top 250 foundations in the field • Examination of four affinity group models • Roundtable discussion held at the last Council on Foundations conference in Atlanta

4. Foundations Interviewed Chicago Funders Focus Group Advisory Committee Questionnaires Methodology

5. Interview, Focus Group, and Advisory Committee Questionnaire Findings Clear Need • Value-added to work and field: 8 (on a scale of 1 to 10)  • No existing national entity bringing together funders concerned with the broad spectrum of jobs and employment-related issues Considerable Interest • Vast majority would participate, many actively • 70% would consider financial contribution Timeliness and Urgency • Historical moment • Sense of urgency • Most foundations maintaining or increasing investments in field

6. Interview, Focus Group, and Advisory Committee Questionnaire Findings Challenges & Concerns • Some affinity group fatigue  • Economic downturn – tight membership & travel budgets • Balancing interest in labor-intensive services with desire for flexibility and light staffing • Core group of committed funders needed to lead effort • Heterogeneity of field • Avoid “group think” and “show & tell” • The proof is in the pudding

7. Issues & Topics of Interest

8. Functional Interests

9. Council on Foundations Survey Findings From the Council’s May 6th report on the response of foundations to the economic downturn: • 3 out of 4 foundations saw their assets drop by 25% or more in 2008 • About half of foundations will reduce their grantmaking by 10% or more; the other half will reduce grantmaking slightly or increase it in 2009 • Over 90% of foundations make grants to aid low-income individuals and families and others adversely affected by the economic downturn; 82% of them will maintain or increase grantmaking in this area for 2009 • 42% of foundations report grantmaking for job training or employment assistance; 50% of corporate grantmakers support job training or employment assistance activities • 54% of foundations fund basic skills education or job readiness skills • 27% of foundations fund occupational skills training • Larger foundations (those with $250 million or more in assets) are more likely than smaller foundations to make grants in all these areas

10. Research Data Overall Research Findings • The top 250 foundations by giving for employment-related services awarded 2,641 grants of $10,000 or more totaling $301,640,048 in 2007 • Independent, corporate, and community foundations account for 79%, 11%, and 10% of the value of grants, respectively • Employment assistance is the dominant area funded, followed by post-secondary skills training Grant Activities Findings • Of the top 250 foundations making grants in this field, 86% fund employment assistance; 72% fund post-secondary skill training; roughly 60% fund youth employment and adult basic education; and only 19% fund vocational education Population Grant Findings • Half of grant funds target the economically disadvantaged as a key population; 40% target children & youth; more than a quarter (27%) target ethnic/racial minorities; and 11% target women & girls

12. Employment-related Grants by Population Data Source: Foundation Center

13. Feedback from Affinity Groups Informal discussions and meetings were undertaken with: • Asset Funders Group • Earned Income Tax Credit Funders Group • Grantmakers for Children, Youth, and Families • Grantmakers Income Security Taskforce • Literacy Funders Network • Neighborhood Funders Group • New York City Workforce Funders Group to introduce the concept and study and then to elicit feedback. The following feedback was provided: • Need a core group of foundations willing to provide seed capital and leadership • Need a clear focus for group in order to advance strategic connections to other affinity group priorities and agendas • Consider partnerships with, and make the new entity complementary to, existing affinity groups • Develop a communication strategy that engages existing affinity groups to weigh-in on the study • Use the back office capacity of existing affinity group where appropriate • Consider joint ventures with existing affinity to achieve efficiency and greater impact

14. Planning Phase • Establish an Interim Steering Committee • Initiate a strategic planning process to develop a mission, initial organizational structure, initial work plan, and branding and communication plan Implementation Phase • The affinity group should initially be developed in partnership with an existing affinity group or other organization to provide administrative support and fiscal services • The group should be financed with grants and program fees • The group should launch with a well-defined, high-value, but cost-effective set of programs and services • Technology must play a central role in the dissemination of information, format of timely briefings and presentations, and facilitation of peer learning • The group should have an Advisory Committee, with a core group of leaders, that draws on the diversity of foundations in the field • The group should broadly define membership to achieve the highest level of participation and include other philanthropic funding networks in order to promote collaboration in the field • The group should develop a realistic and efficient human resource model Recommendations The Feasibility Study demonstrates that there is a strong base of support for developing and establishing this affinity group.

15. Establish Advisory Committee Co-Chairs • Identify an interim Executive Steering Committee • Broaden Advisory Committee membership • Develop a project budget • Identify Human Resource strategy • Develop a work-plan with a 12 month timeline • Identify sponsoring organization • Write and submit funding proposal requests • Organize a facilitated strategic planning session for late summer • Consider possible Council on Foundations affiliation Next Steps

16. Contacts Angel H Bermudez Anna Shireen Wadia AHB & Associates 6 Sharon Avenue Newton, MA 02466 Phone (617) 467-5016 Mobile (617) 584-9780 angelhbermudez@comcast.net 622 West End Avenue, Apt. 3W New York, NY 10024 Phone (212.) 799-2193 annawadia@yahoo.com