Philanthropists Respond to Changes in Community Development

Lisa Hall of the Calvert Foundation speaks to meeting participants.

When money for development is the topic of conversation, local leaders tend to pay attention. Such was the case during the final meeting in the “Improving Access to Community Development Capital” series hosted by the Little Rock Branch of the Federal Reserve Bank of St. Louis.

The third meeting in the series brought together bankers, non-profit organizations and community development leaders to discuss the changing role of philanthropy in community development. The panel of experts participating in the event included Lisa Hall, Director of Lending Services for the Calvert Foundation out of Washington DC; Pat Lile, President and CEO of the Arkansas Community Foundation; Dr. Sherece West, President of the Winthrop Rockefeller Foundation; and Dr. Charlotte Lewellen-Williams, Director of the Center on Community Philanthropy at the Clinton School of Public Service.

While change is certainly a constant in every sector, adapting and responding to changes in philanthropy pose unique challenges for both organizations and communities. Amy Simpkins, community affairs specialist with the Little Rock Branch explained, “Philanthropy is becoming more hands on ... funds are being allocated in new and different ways, looking more and more to an investment strategy than gifts or grants. Partnerships are essential for success and sustainability.”

Several consistent themes emerged from the panelists’ remarks, pointing to critical changes in three distinct areas affecting philanthropy and community development:

• Changes in technology - Technology is affecting how people give by creating a new infrastructure for giving. Technology is also creating a system of accountability for non-profits.
• Changes in leadership - Leadership in philanthropy is community-driven. Local leadership has the power to take an in-depth look at issues affecting community development and can provide critical data and information.
• Changes in goals - Philanthropy is becoming action oriented. Donors want to see high-impact results that indicate systemic change in communities.

When Lewellen-Williams questioned the panelists on how best to advise community leaders to respond to change, the experts answered with pointed advice for the audience: Don’t change your mission, but rather your strategies; don’t chase money just because it is available; collaboration is key, but be strategic about partnerships; and diversify your resources and support.

This was the third and final meeting in the series. The previous sessions included information on “The ABCs of Opportunity Finance: Understanding TIFs, CDFIs, CDCs, and More” and “Emerging Neighborhood Markets: Investing in Local Businesses.”