The Philadelphia Foundation
Discretionary Grantmaking – Complete Guidelines
Contents
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Basic Eligibility – All Discretionary Grantmaking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Discretionary Grantmaking Priorities
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Fund for Children. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Supporting Grants Program.
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Strategic Investment in Youth. YOUTHadelphia
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Organizational Effectiveness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 CCAT Assessment Tool
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Organizational Effectiveness Projects – What is Funded? .
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General Operating Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Sample High Performance Standards Denials vs. Withdrawals
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Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Henrietta Tower Wurts Memorial Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Useful Web Links. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
About This Document This document provides information about The Foundation’s granting priorities, eligibility criteria, guidelines and application processes. Nonprofit organizations in Bucks, Chester, Delaware, Montgomery and Philadelphia counties are invited to apply for grant funding using The Philadelphia Foundation’s criteria and application forms available at www.philafound.org. Each applicant will receive an independent review. The determination of whether a request can be funded is always at the recommendation of staff and the grants committee of the Board of Managers.
Basic Eligibility – All Discretionary Grantmaking In order to be eligible for discretionary grants, organizations must have: • • • • •
501(c)3 Tax Exempt Status from the IRS (or a fiscal agent) One Full Time Equivalent staff person (FTE) Operating budget under 10 million Be located in the area served by The Philadelphia Foundation (Bucks, Chester, Delaware, Philadelphia and Montgomery counties) Have at least three years of financials which demonstrate operations as IRS recognized tax-exempt entity
How Do I Start? Go online to www.philafound.org, select “Apply for a Grant” and take the Eligibility Wizard to determine the Grantmaking areas for which you may qualify. Completing the Wizard does not guarantee that your organization will be approved for a grant from The Foundation, but it does clarify whether you meet the basic eligibility requirements. Ineligible Organizations The Philadelphia Foundation’s Grantmaking Services Committee and staff continue to review and revise The Foundation’s Discretionary Grantmaking criteria on an ongoing basis. The following is a list of organizations that are currently not eligible to receive funding through the Discretionary Grantmaking process. • Schools (K–12): Public, independent, parochial and other private schools and programs that support curriculum development for these institutions • Colleges and university academic or general purpose departments • Local chapters of national organizations or programs within larger entities that raise less that 75% of their funding • Cemeteries • General childcare agencies (excluding Fund for Children requests) • Camp and after-school programs (excluding Fund for Children requests) • Government agencies: Agencies and departments of local, state or federal government • Libraries • Organizations that discriminate against any person as an employee, volunteer, board member or recipient of services on the basis of race, color, sex, sexual orientation, religion, national origin, ancestry, age, handicap or marital status • Umbrella funding organizations for the sole purpose of re-granting • “Friends of” Organizations or Fundraising Organizations • Organizations that seek support for religious purposes Discretionary Grantmaking Priorities For all Discretionary Grantmaking areas, priority will be given to: • Organizations able to demonstrate that at least 33% of those they serve or represent are lowincome. • Organizations with operating budgets less than 5 million dollars. | Page 1
For General Operating Support Grants, if the percentage of low-income populations served exceeds The Foundation’s 33% threshold, the grant amount may be increased incrementally based on the organization’s service to low-income populations. Threshold for Low-Income The Foundation accepts a range of methodologies for estimating services to low-income people with the understanding that organizations have different information on constituencies depending on the nature of the service provided. • In general, low-income individuals tend to be those who qualify for various supportive services and programs (i.e. free school lunch, SNAP benefits, CHIP). • Sources of information can include U.S. Census Data, Community Health Databases and percentage of Federal Poverty Level, Self Sufficiency Standard or other publications. (See page 10 for useful web links.)
Fund for Children Grants Beginning in 2001 through a lease arrangement with the City of Philadelphia, contributions from the Philadelphia Eagles football and the Philadelphia Phillies baseball teams have funded The Philadelphia Foundation’s Fund for Children. The $2 million annual investment supports three Fund for Children programs to improve the quality of life for the children in Philadelphia. • The Supporting Grants program annually distributes $200,000 in grant support to organizations that provide basic youth services. • The Strategic Investment in Youth (SIY) program annually distributes $700,000 in grant support to nonprofit youth-serving organizations. Programs supported by SIY provide a wide range of activities for older youth, but all include a component of leadership development. • The YOUTHadelphia program is the youth-in-philanthropy committee of the Fund for Children. Twenty teens from diverse Philadelphia neighborhoods, schools and youth organizations learn about philanthropy and distribute $100,000 annually to older youth serving organizations with a focus on leadership development. 1. Supporting Grants Program • Grants range up to $10,000 • Program for youth, ages 0-18 years Supporting grants respond to out-of-school time projects for children and youth. They are generally neighborhood-based, special in nature, or short-term activities. A portion of the funds in this program remains flexible to enable the Fund for Children to respond to and support worthy, youth-service agencies in Philadelphia. 2. Strategic Investment in Youth (SIY) • Grants range from $10,000 to $50,000 • Program for youth, ages 12-21 years • Supports nonprofit organizations that engage young people through leadership opportunities Grants support a wide range of out-of-school time activities for older youth, but all programs must have a component of engaging youth in program development and implementation. Funded activities will successfully empower youth with skills and opportunities to become good decision makers and community leaders. Strategic Investment in Youth Grants support programs including but not limited to: youth organizing and advocacy, creative and performing arts, sports and recreation, parenting, job readiness and life skills training. Application Process for supporting grants and Strategic Investment in Youth (Applications available at: www.philafound.org.) Organizations seeking funding from The Philadelphia Foundation for the Strategic Investment in Youth Program are required to complete the SIY Application, Budget and the Youth Engagement Assessment Tool. | Page 2
Organizations seeking funding from the Supporting Grants Program are required to complete the Supporting Grant application and Project Budget. All applications delivered successfully will receive an automatic response. If you do not receive an automatic response, please call us to ensure that your materials are received. Applications cannot be considered until the following supplemental documents have also been submitted electronically: • 501(c)(3) IRS determination letter • List of Board of Directors • Three years of audits (if your organization does not have audits, we will accept your IRS 990) • PA Charitable Solicitation Certificate • Please Submit all Fund for Children Applications to the Fund for Children Drop Box at: https://www.philafound.org/ForNonprofits/DiscretionaryGrantmaking/FundforChildren/tabid/249 /Default.aspx • Applicants for Supporting Grants are required to complete the SIY application, Budget and the Youth Engagement Assessment Tool. 3. YOUTHadelphia • Grants range up to $10,000 • Program for youth, ages 12-18 years • Supports nonprofit organizations that engage young people through leadership opportunities YOUTHadelphia is the Youth Advisory Committee of the Philadelphia Foundation’s Fund for Children. The mission of YOUTHadelphia is to give Philadelphia teens the opportunity to build youth leadership through philanthropy and civic engagement. YOUTHadelphia provides grants of up to $10,000 for youth-led and youth-engaged projects. This diverse committee of youth from across Philadelphia comes together to assess the needs of their peers and to make grants to organizations working to meet those needs. Application Process for YOUTHadelphia The YOUTHadelphia Committee meets at The Philadelphia Foundation from mid-January through the end of June to develop their RFP, review applications and make grant decisions. The group announces their Grantmaking priorities in early March and applications are due in April. Important Considerations • Fund for Children requests for support should demonstrate a history of youth programming. Pilot programs within organizations should demonstrate previous experience working with youth. • As of 2009, organizations cannot apply to both the Fund for Children and The Foundation’s regular Discretionary Grantmaking (Organizational Effectiveness and General Operating Support) within the same calendar year. • Organizations receiving Discretionary Grants in the form of Organizational Effectiveness, General Operating Support of Fund for Children grants in the form of SIY or Supporting Grants are still eligible to apply to grants from YOUTHadelphia.
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Organizational Effectiveness Grants Grants range from $3,000 - $40,000. These grants are for organizations that wish to strengthen their ability to lead, adapt, manage and effectively operate their organizations. Funding in this category will support projects that improve the organization’s effectiveness in any of these areas. See below for a partial list of projects that have been funded by The Foundation through this grant stream. Application Process Nonprofits that meet the basic eligibility requirements are asked to complete TPF’s Project Proposal, available at www.philafound.org. Then upload the completed application and supporting documents to the Organizational Effectiveness Drop Box as indicated at the end of the application form. Applications that meet the basic eligibility requirements are asked to complete TPF’s Project Proposal, available at www.philafound.org. You will then upload the completed application and supporting documents to the Organizational Effectiveness Drop Box as indicated at the end of the application form. Applications cannot be considered until the following supplemental documents have also been submitted electronically: • 501(c)(3) IRS determination letter • List of Board of Directors • Three years of audits (if your organization does not have audits, we will accept your IRS 990) • Current PA Charitable Solicitation Certificate All applications delivered successfully will receive an automatic response. If you do not receive an automatic response, please call the Philanthropic Services Department to ensure that your materials are received. Applicants can anticipate an initial response to their Project Proposal submission within two weeks. If selected to move on to the next stage, a Program Officer will schedule a site visit with the Executive Director, a member of the board, and any staff responsible for major aspects of the project. The Program Officer will also ask the organization to develop a work plan and budget for the proposed project. If the project request includes time with a consultant, The Philadelphia Foundation requires that the organization review bids from at least three different consultants. Prior to the site visit, the organization will be asked to submit the completed work plan and budget forms as well as a scope of services from the consultant with whom they would choose to work if funded. CCAT Assessment Tool Organizations applying for Organization Effectiveness may elect to take the Core Capacity Assessment Tool (CCAT) as part of the process. Taking the CCAT is not a requirement. The CCAT: • Reviews core capacity components (Adaptive, Leadership, Management, and Technical/ Operational). • Is taken online by all senior staff and at least two board members. • Involves 146 multiple-choice survey questions. • Takes approximately 30-45 minutes. • Produces a report that provides a snapshot of organization strengths and challenges. The CCAT report can be used as a: • Starting point for discussions. • Suggested checklist for changes. • Way to track organizational growth and development. • Method for involving board members in discussing organizational capacities. To elect to take the CCAT, simply check the box under the appropriate section of the Project Proposal form. For more information on the CCAT, visit www.tccccat.com. | Page 4
Organizational Effectiveness Projects – What is funded? The following is a partial list of projects funded by The Foundation to strengthen organizations: • Strategic Planning • Board development: recruitment & training • Attending Leadership Development programs • Training and development of next tier leadership • Executive transition, planning • Executive coaching • Feasibility Studies • Board succession planning • Needs Assessment • Resource Development • Financial Management • Business analysis and planning skills • Fundraising skills development Organizational Effectiveness grants DO NOT support: • Program-specific requests • Full funding of staff positions • Umbrella funding projects for the sole purpose of re-granting • Contributions to endowments or capital campaigns • Fundraising Campaigns • Deficit or debt financing Important Considerations • Up to 35% of the total grant request can be allocated for staff time spent on the project. • The Foundation can only support one organizational effectiveness project at a time. • Interim or permanent executive leadership should be in place for at least three months before The Foundation will consider supporting an organizational effectiveness grant. There are exceptions for organizational effectiveness requests that specifically support executive transitions. • If the project request includes working with a consultant or outside vendor, TPF requires the organization to obtain at least three bids/scopes of service prior to choosing the consultant. Exceptions are made for certain types of technology upgrades. • In reviewing requests for organizational effectiveness support, The Foundation also seeks confirmation that organization-wide planning projects have included organization-side stakeholders. It is an expectation that the Board of Directors (or a committee thereof) and senior level staff are active participants in the discussion of the project, including review and selection of a consultant, the timeline, roles and responsibilities and the rationale behind why the project is priority.
General Operating Support Grants Grants range from $10,000 - $35,000. General Operating Support Grants are funds that are unrestricted for use by high-performing organizations able to demonstrate that they meet certain infrastructure benchmarks. These funds may be used for all mission-related activities, including contributions to capital campaigns and endowments. Grant amounts are calculated based on an organization’s application score and operating budget. Scoring is directly linked to the extent to which the organization demonstrates that it is meeting each benchmark listed in the application. Basic Eligibility for General Operating Support • Operating budget must be at least 100K. • Must show evidence of sound financial condition for three years or more. o Cannot have deficits greater that 10% of operating budget for one year out of three years. (The Foundation screens for deficits primarily – though not exclusively – at the Unrestricted Income & Expense line of an organization’s Audited Statement of Activities.) o Cannot have more than two years of deficits during the prior three-year period.
| Page 5 Application Process Nonprofits that meet the basic eligibility requirements are asked to complete the General Operating Support Full Application at the appropriate life-cycle stage. You will then upload the completed application and supporting documents to the General Operating Services Drop Box as indicated at the end of the application form. If you have questions about the life-cycle stage of your organization, call a program officer prior to applying. Applications cannot be considered until the following supplemental documents have been submitted electronically: • 501(c)(3) IRS determination letter • List of Board of Directors and their affiliations • Three years of audits (if your organization does not have audits, we will accept your IRS 990) • Current PA Charitable Solicitation Certificate • Executive Summary of current strategic plan • Organizational Budget All applications delivered successfully will receive an automatic response. If you do not receive an automatic response, please call the Philanthropic Services Department to ensure that your materials are received. Applicants can anticipate an initial response to their request within two weeks after the completed application was submitted (including all of the financial documentation). If selected to move on to the next stage, a Program Officer will schedule a site visit with the Executive Director and a member of the organization’s board. Applicants who are not awarded General Operating Support may be invited to submit an application through The Philadelphia Foundation’s Organizational Effectiveness Grants. Important Considerations • 100% of the board members must be making financial contributions to the organization. • The Executive Director must have been in place for at least three months. • The Philadelphia Foundation exercises discretion when reviewing requests wherein there are familial relationships across the board and staff of an organization. If family relations do exist, The Foundation must be comfortable with the controls put in place to ensure accountability and integrity but not limited to having conflict of interest policies in place. • Grants to organizations who are national or state-wide will be pro-rated based upon their work in our region. • The Foundation looks closely at all Form 990s submitted to the IRS. In order to be considered in good standing for General Operating Support, organizations are expected to have the following policies in place, as indicated in the Part VI, Section B of the Form 990. o Conflict of Interest Policies o Whistleblower Policy o Independent process with comparability data for determining compensation o Providing copy of the 990 to board members prior to filing Organizations seeking General Operating Support can be at any stage in their organizational development. (For additional information on the lifecycle stages of high performing nonprofits, please visit the General Operating Support page of our website.) Our experience, though, is that most organizations seeking General Operating Support are in the Mission Impact stage. These are organizations which provide programs, demonstrate organizational leadership and show evidence of strategic partnerships, advocacy efforts, and collaboration. Sample High Performance Standards for Organizations at Mission Impact Stage • On an ongoing basis, the organization assesses itself (perhaps using an outside consultant to facilitate the process), identifies comprehensive needs for improving the management and governance of the organization, and incorporates this thinking into a strategic planning process. • Formally written succession plans exist for executive staff. • The board conducts a formal, annual evaluation of the chief executive and creates a succession plan. • The board formally assesses itself and creates a board development plan.
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The chief executive and board have distinct roles and they hold each other accountable.
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Denial vs. Withdrawals If an application is denied, the organization must wait a full year before re-applying. If an application is withdrawn, the organization may resubmit at any time. • Applications can be withdrawn at any time by either the organization or The Foundation. • Applications may be re-instated at any point with no penalty. • Applications may be re-directed to another grants program.
Reporting Requirements The following is a list of reports that are required for each funding area. All report forms are available at The Philadelphia Foundation website under “Nonprofit Forms & Applications.” ORGANIZATIONAL EFFECTIVENESS REPORT Report at project completion
DUE DATE Due at project completion
GENERAL OPERATING SUPPORT REPORT General Operating Support Report Form
DUE DATE Due at completion of grant cycle
FUND FOR CHILDREN REPORT Fund for Children Grant Report Form
DUE DATE Due at completion of grant cycle
Henrietta Tower Wurts Memorial Fund Grants • • • •
Grants range from $1,000 to $7,000 Organizations with annual budgets under $3 million Focus is on programs that directly serve or improve the welfare or disadvantaged children and youth, and/or the elderly, living within the City of Philadelphia Annual deadlines are February 1, May 1 and September 1
The Henrietta Tower Wurts Memorial is a charitable foundation that was established as a nonprofit corporation under Pennsylvania law to carry out the wishes of Henrietta Tower Wurts, who died in 1933. The Philadelphia Foundation provides administrative and management support services for the Henrietta Tower Wurts Memorial. The Foundation receives grant applications for this charitable foundation and distributes grants that are approved by the Wurts Memorial’s Board of Directors. The Henrietta Tower Wurts Memorial prefers to support programs in which a modest grant can play a significant part, and which have meaningful goals in relation to the total resources committed to them. Please submit all Henrietta Tower Wurts Memorial Applications to the Henrietta Tower Wurts Memorial Drop Box at www.philafound.org.
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Frequently Asked Questions My organization is part of a national organization. Do I qualify for a grant? If your organization has an office in the Philadelphia area (and surrounding counties), serves a local constituency, is able to prove autonomy from the national organization and isn’t an Ineligible Organization, then your organization can qualify for pro-rate share of a grant for that local office. Otherwise, national organizations are ineligible to receive discretionary grants. Do you fund start-ups? An organization must be operating for at least three years as a tax exempt entity in order to become eligible for support. Do you support organizations that also provide services to South Jersey? Yes, the Foundation supports organizations in Burlington and Camden Counties through the discretionary grant programs (Organizational Effectiveness and General Operating Support), however, as these funds are limited, the grants will be smaller and fewer in number. Are there any grant size ranges or limits? Yes. For General Operating Support, up to 7% of the organizations' budget (up to no more than $35,000) will be supported. For Organizational Effectiveness Grants, we will award up to $40,000. Is there an upper-range budget limit for grant requests? Yes. The Foundation will not support organizations with an operating budget over $10 million through our discretionary grants and gives priority to organizations with budgets of under 5 million. However, there is no restriction on budget size for grants made or designated by donors. How do I know if I qualify for General Operating Support? Please read our document on Characteristics of High Performance Organizations. Review the criteria and see if and how your organization fits. If your organization displays a majority of the “High Performing” characteristics, then you qualify to be considered for a General Operating Support Grant. Please note: Your application will not begin to be considered until all of your materials have been received by The Foundation. Supplemental materials should be scanned and sent electronically either by disk or email. We strongly recommend all supplemental materials be submitted electronically. However, if you absolutely cannot submit an electronic version, we will accept a mailed hard copy. How do I submit my grant application? You will submit your completed application along with all of the supplemental materials to the appropriate Drop Boxes. The hyperlink for each type of grant is found on the last page of the application. Forms and applications can be found on The Philadelphia Foundation’s website: www.philafound.org. Is there a deadline for application submission? The Philadelphia Foundation will continue to accept new applications for Organizational Effectiveness and General Operating Support on a rolling basis until mid-October. Afterward, new applications for General Operating Support or Organizational Effectiveness cannot be accepted until the following year (January). I submitted my grant application. When will I be contacted by somebody at The Foundation? You can expect to hear from someone from The Foundation within 14 business days after we began to process your application. If you have submitted an application and have not heard from a staff person, please call 215563-6417 and ask to speak to someone in the Philanthropic Services Department. Can I apply for several grants at once? An organization is only permitted to apply for one type of Discretionary Grant every 12 months (General Operating Support, Organizational Effectiveness, or Fund for Children grant). If you need assistance in determining which type you qualify for, please contact a program officer to discuss before applying.
| Page 8 How long do grants last? General Operating Support grants are effective for 12 months. Organizational Effectiveness Grants also last 12 months, or until the particular capacity-building project ends. (Must be a minimum of 12 months.) How do I know which type of grant to apply for? You must first take the Eligibility Wizard. The best way to determine if your organization qualifies for General Operating Support is to review Characteristics of High Performing Organizations. If your organization displays the majority of the characteristics to be considered “High Performing,” then you qualify to be considered for a General Operating Support Grant. If there’s more work to be done to achieve most of the criteria to be considered “High Performing,” then an Organizational Effectiveness Grant (for capacity-building) is probably the best route for your organization. Does The Foundation give Discretionary Grants to individuals? No. The Foundation gives grants only to eligible, nonprofit 50(c)(3) organizations. I don’t think my organization qualifies for a discretionary grant; are there other opportunities for aid at The Foundation? If your organization doesn’t qualify for funding under our Discretionary Grantmaking program, please make sure to investigate our other funding opportunities at The Foundation. Visit our Fund for Children and Henrietta Tower Wurts Memorial pages and see if your organization qualifies for one of those grants. Do I need a login name and password to fill out an application for Discretionary Grantmaking? No. To fill out the application, simply download the form from our website, save it to your hard drive (not a temporary location), complete it and then submit it along with the required supplemental material via email to the Philanthropic Services Department. You will find the list of supplemental materials and email address on the application.
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Useful Web Links How Do I Start / Eligibility Wizard Discretionary Grantmaking: www.philafound.org/tabid/236/Default.aspx Self Sufficiency Standard: http://www.selfsufficiencystandard.org/pubs.html; http://www.chdbdata.org/findData.asp; http://quickfacts.census.gov/qfd/states/42/42101.html; http://liheap.ncat.org/profiles/povertytables/FY2012/popstate.htm Discretionary Grantmaking: www.philafound.org/ForNonprofits/DiscretionaryGrantmaking/tabid/237/Default.aspx General Operating Support: www.philafound.org/ForNonprofits/DiscretionaryGrantmaking/GeneralOperatingSupport/tabid/243/ Default.aspx Application Process: www.philafound.org/ForNonprofits/DiscretionaryGrantmaking/OrganizationalEffectiveness/Application Process/ tabid/240/Default.aspx Fund for Children: www.philafound.org/ForNonprofits/DiscretionaryGrantmaking/FundforChildren/tabid/249/Default.aspx YOUTHadelphia: www.philafound.org/ForNonprofits/DiscretionaryGrantmaking/FundforChildren/TheYOUTHadelphiaProgram/ tabid/254/Default.aspx Henrietta Tower Wurts Memorial: www.philafound.org/ForNonprofits/DiscretionaryGrantmaking/HenriettaTowerWurtsMemorial/tabid/258/Default .aspx FAQs for Nonprofits: www.philafound.org/ForNonprofits/FAQsforNonprofits/tabid/268/Default.aspx Services and Resources: www.philafound.org/ForNonprofits/ServicesResources/tabid/263/Default.aspx Nonprofit Forms and Applications: www.philafound.org/ForNonprofits/NonprofitFormsandApplications/tabid/374/Default.aspx Organizational Effectiveness: www.philafound.org/ForNonprofits/WhatWeFund/OrganizationalEffectiveness/tabid/238/ Default.aspx
Contact Information Ana Lisa Yoder | Community Impact Manager | ayoder@philafound.org | (All inquiries) Alyson Miksitz | Advised Funds Program Associate | amiksitz@philafound.org (Re: First time applicants, Donor Advised Funds, all inquiries) Bia Vieira | Vice President of Philanthropic Services | bvieira@philafound.org Chrissie Bonner | Program Officer | cbonner@philafound.org Libby Walsh | Associate Program Officer | lwalsh@philafound.org | (Re: First time applicants, Donor Advised Funds, all inquiries) Philip Fitzgerald | Program Officer | pfitzgerald@philafound.org
The Philadelphia Foundation | 215-563-6417 | www.philafound.org | Page 10