The Philadelphia Foundation Strategy Report

COURAGE EXCELLENCE TRUST

DIVERSITY

EQUITY HUMILITY INCLUSION

ND Century STRATEGY RESULTS

THE PHILADELPHIA FOUNDATION’S STRATEGY FRAMEWORK

PURPOSE To increase effective philanthropic investment in the Greater Philadelphia community by galvanizing and connecting individuals and institutions across sectors and geography to combine resources and take actions that will foster the economic, civic and social vitality of Greater Philadelphia.

VISION A vibrant metropolitan region where opportunities, prosperity and public assets are shared by all residents.

INSTITUTIONAL IMPE R ATIVE

The Philadelphia Foundation (TPF) spent 2016 engaged in thoughtful strategy and business planning to guide our future service to the people of Greater Philadelphia. The result is an ambitious Second Century Strategy, recently approved by our Board of Managers, which we are pleased and privileged to share with you.

Our strategy is grounded in community — what it needs and wants for today and tomorrow, what resources can be brought to bear to make it stronger. Our strategy is also shaped by the values we hold close, including excellence, diversity, equity and results. We will endeavor to use all of the tools at TPF’s disposal to positively impact the wellbeing of Greater Philadelphia and to grow effective philanthropy here.

Community foundations were created a century ago to collect and invest donated funds, using them to improve the lives of residents in designated locations through changing times.

For 98 years, TPF has fostered a legacy of trust and accomplishment of which we are proud stewards. But like our founders, we realize that changing times demand new perspectives and new approaches.

We live and work in a community of contrasts: great wealth and extreme poverty, tremendous talent and too much unrealized potential, enviable advantages and big challenges.

These conditions mean that the relatively low profile, limited impact and modest size that have influenced TPF in the past must give way to a bolder and more proactive organization with the capacity to help shape the future. In similar environments, community foundations around the country have already stepped up to grow their assets and take on civic leadership roles to help their communities be the best they can be. TPF is committed to doing this, too.

“ Our strategy is grounded in community...”

TPF will become a highperforming, highly visible and respected civic servant and a leader in the donordriven market.

KEY STRATEGIES

e a “turn to” resource B offering deep knowledge and creative solutions to address community needs and opportunities.

EXCELLENCE

DIVERSITY

“ ... we love Greater Philadelphia and want everyone and every place here to thrive.”

To formulate our plan, we reached out and listened to a wide range of stakeholders and experts in business, academia, social welfare and the arts, for candid feedback, smart advice and fresh ideas. We studied the local philanthropic and financial landscapes, as well as every aspect of our own operation. We learned from peers and competitors, current donors and prospects.

In the next few pages you will read about the big picture goals, tenets and strategies that form the framework of our new direction, and how these concepts will affect how we operate.

Transformative work takes time, but we have already begun and will keep moving forward.

That said, we are very clear that The Philadelphia Foundation belongs to and exists for the benefit of our entire community. We need you — our fellow Philadelphians and supporters — to get behind the plan to invest in and partner with The Philadelphia Foundation.

With our colleagues, we welcome your support and participation as we join together in the journey to a brighter future for our region.

Pedro A. Ramos President and CEO

TPF’s leadership and staff are energized and pledge to do all we can to realize our vision because we love Greater Philadelphia and want everyone and every place here to thrive.

Anthony J. Conti Chair, Board of Managers

Seek positive community impacts through asset growth and smart grantmaking.

I dentify and advance civic initiatives through leadership, partnership and collaboration.

EQUITY

TRUST

INCLUSION

HUMILITY

Assure that TPF has the finances, talent and business operations required to achieve and sustain our aspirations for our community.

COURAGE

RESULTS

Your voices have been critical in creating our strategic framework.

We now know what we want TPF to become in our second century and we have a good sense of what it will take to get there.

RE-IMAGINING

Clockwise, from top: Reading Terminal Market, LOVE Park/J. Fusco for VISIT PHILADELPHIA®, Fishtown Mural/ M. Kennedy for VISIT PHILADELPHIA®, Philadelphia Rowhouses, Kennett Square Market /G. Widman for VISIT PHILADELPHIA®, Longwood Gardens/ J. Fusco for VISIT PHILADELPHIA®, Dancers at the Art Sanctuary, Dog walking in Valley Forge Park, Kids at Noah’s Playground in Newtown Township (Bucks County), Schuylkill Banks.

Applying our vision and cross-cutting strategies to our daily work provides urgency and focus, while allowing for the flexibility that will be necessary to pursue our purpose. We can already see ways in which our new direction will start to change and enhance, internally and externally, how we conduct and coordinate TPF’s four principal activities.

OUR WORK CIVIC AND PHILANTHROPIC LEADERSHIP

You told us that you expect TPF to exhibit greater leadership in the civic and philanthropic arena, and it is a responsibility we are eager to embrace. TPF offers a unique and versatile platform to our community. Our multidimensional roles as fund holder, investor and aggregator, public educator, convenor, connector and communicator can be brought to bear in new ways in service to the mission of strengthening our region.

One year ago, thanks to the forward thinking of local philanthropist H.F. “Gerry” Lenfest, the Institute for Journalism in New Media was established under the auspices of the TPF Special Assets Fund, to help secure the future of independent journalism in this region and elsewhere. Energy executive Harry R. Halloran Jr. has likewise selected TPF as the philanthropic partner for a Trust to support sustainable social interventions that promote human well-being. These collaborations underscore confidence by community leaders in TPF’s integrity and ability to advance innovation and demonstrate some of what is possible when we marshal resources creatively for important civic and philanthropic purposes.

“ Our multidimensional roles... can be brought to bear in new ways in service to the mission of strengthening our region.”

There will be no shortage of issues and activities from which to select our future involvements so we will need to choose wisely to be sure they align with our mission and we can deliver on our promise. Our aim at any one time will be to have a small slate of leadership initiatives, including signature projects, under way that we can advance and assess, beginning in 2017. Options and opportunities will be considered in light of criteria including whether they: » Address a compelling regional need, especially related to economic mobility and strengthening the social safety net » Have the potential to build, broaden and engage communities in the process of mobilizing action, solving problems and seizing opportunities » Tap TPF’s ability and capacity to make a significant and specific contribution » Include the availability of willing and able partners and collaborators who value TPF’s participation and possess complementary attributes » Generate donor interest, current and prospective.

GRANTMAKING AND SCHOLARSHIPS

“ What we learn from our grantmaking will inform advocacy, educational programming, fundraising and collaborations in the civic arena — and vice versa.”

TPF’s grantmaking, a mix of discretionary and donor-driven giving, is one of multiple tools to achieve community impact. Deep knowledge of our region’s nonprofits and rigorous due diligence have been a hallmark of TPF. In the years ahead, we intend to build on our record as a thoughtful and innovative funder. TPF has done groundbreaking work in initiatives including the Fund for Children, support for immigrant and LGBTQ populations and capacity building for nonprofits. Providing grantees with general operating support has been especially responsive to the needs of nonprofit organizations, and that practice will continue.

Addressing the needs of high poverty and other vulnerable populations will continue to be a priority in our discretionary grantmaking, though we will also explore new focus areas that address broad community concerns and opportunities for important civic investments. We will look at ways to deepen impact in existing efforts, for example by helping to strengthen nonprofits with support for attracting vital talent for board and executive pipelines. Practices that foster responsiveness and efficiency, including multiyear funding, will be adopted.

“ Practices that foster responsiveness and efficiency, including multi-year funding, will be adopted.”

The Arc of Chester County

Festival de Bambulae: J. Fusco for VISIT PHILADELPHIA®

Scholarships are another longstanding way for individuals, groups and organizations to invest directly in people, often as an entry point to engaging in broader philanthropy. TPF administers over 100 scholarship funds and is committed to continuing this work, including setting parameters for the size and terms of future scholarship funds and improving the technology we use so that the work can be done cost-effectively.

We will look at grantmaking as a driver that can help integrate and align activities across TPF. Greater interaction and coordination between our grantmaking and donor staffs — like steps taken this year to advance early childhood literacy — will improve both discretionary and advised giving and foster knowledge-sharing among TPF partners.

What we learn from our grantmaking will inform advocacy, educational programming, fundraising and collaborations in the civic arena — and vice versa.

Reading in the park with Treehouse Books

“ ...change-making requires change capital.”

As a community foundation rather than a private foundation, fundraising is at the core of everything TPF does: our grantmaking, leadership activities and business operations are all supported through bequests, donor contributions and earned fees. To do more and better we must grow our assets and attract funding in new forms, including for discretionary and targeted issues. We must secure support from new sources, including younger contributors who have high stakes in the future of Greater Philadelphia. In short, change-making requires change capital.

Current donors give TPF high marks for the support and services provided, as well as for investment returns. This is a strong record on which to build. We know there is a lot of competition for your philanthropic dollars and we have already begun to professionalize our development team. Clear and compelling communications, streamlined and appealing donor options, technology advances and more dynamic connections to financial, legal and wealth management professionals will define the path to growing TPF’s assets and impact.

BUSINESS OPERATIONS

FUNDRAISING AND DONOR SERVICES

Realizing our vision for TPF depends on a revitalized and adaptive business model that matches aspirations and strategies with financial resources, and mounts the processes, staffing, culture and image needed to implement effectively. Our updated financial model starts with developing an enhanced value proposition that offers all donors the opportunity to leverage the blend of knowledge, impact and convenience available in our region only through TPF. These services will be supported by the right mix of products, pricing and assets to increase operating revenue. Multi-year projections reflect a path to a balanced and sustainable operating budget with full staffing and resources to execute the strategy.

Along the way, we will monitor results, report progress and adjust assumptions and targets as needed.

New systems and processes will foster productivity and customer convenience and use data effectively. Recent improvements to TPF’s donor portal are an early step. Essential to our business model will be establishing an organizational orientation towards high standards, performance and accountability. Led

by Pedro, TPF will build a collaborative leadership team with the capacity, reputation and skills to achieve change and execute our strategies.

Updated organizational branding will propel, clarify and unify the new paths and directions in which TPF will move into our second century.

We are now moving energetically to

CHARTING SUCCESS To stay on track with our ambitious strategy framework, we have identified some progress measures that will let everyone know how Greater Philadelphia is benefiting from TPF’s service and leadership:

implement TPF’s new plan. Communicating and connecting, discussing our activities and seeking your ideas and reactions will continue to be essential to our work. We invite and encourage you to be part of TPF’s Second Century Strategy and Greater

» Growth in charitable assets

Philadelphia’s progress.

» Deployment of philanthropic resources

Please contact us to learn more:

» Action on civic and philanthropic initiatives

• (215)563-6417

» Improved community well-being in specified issue areas

• president@philafound.org • www.philafound.org

THE PHILADELPHIA FOUNDATION BOARD OF MANAGERS 2016 Officers Anthony J. Conti, Chair Kathleen S. Allison, Vice Chair William C. Bullitt, Treasurer Members N. Nina Ahmad Lawrence J. Beaser, Chair Emeritus Kerry Benson Roseline H. Bougher Steven Scott Bradley Francis J. Mirabello Anne Morrissey John Nihill R. Duane Perry Mindy M. Posoff Betsy Leebron Tutelman

The Philadelphia Foundation is grateful to the William Penn Foundation for its generous support of the development of TPF’s Second Century Strategy.