Why is GIH changing its Funding Partner Giving Levels in 2020?
GIH has not updated its Funding Partner Giving Level chart for five years, since 2014. In the years since, operating costs have increased in ways that are common for most organizations, making it an appropriate time to update our financial request to Funding Partners. We are taking this opportunity to make some improvements as well:
- GIH is eliminating the calculation that was previously used for foundations with grantmaking between $1.7 million and $6.5 million annually, which made it harder for foundations in that range to determine their annual Funding Partner contribution.
- GIH is adding a level to the chart so that foundations that previously fell into that wide range are not unfairly grouped together at one rate.
- GIH is streamlining the chart to focus primarily on annual health grantmaking. Many foundations that make grants in different subject areas contribute to GIH. We ask them to contribute to GIH at a level that is commensurate with their health grantmaking as opposed to total assets. Historically, the asset and health grantmaking columns of our Giving Levels chart yielded the same requested contribution for most funders, since grantmaking was 5% of total assets and the majority of GIH Funding Partners are subject to IRS payout requirements at or close to this rate.
How do you calculate the requested contribution for non-traditional funders, or for funders with no payout requirements such as operating foundations, 501c4 foundations, etc.?
GIH has enjoyed excellent relationships and benefitted from the participation of non-traditional funders in our network. In situations where it is difficult to calculate a request based on annual health grantmaking, we will work directly with your organization to reach agreement on an appropriate amount.
How does GIH define “health” for the purposes of calculating annual health grantmaking?
GIH generally relies on the widely accepted definition used by the World Organization of Health (WHO). The WHO defines health as “a state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.” Practically speaking, this means that funding for non-health care activities (e.g. public health or the social determinants of health) would count towards health grantmaking. We respect that each foundation may define health a bit differently, and we generally accept the definitions (and resulting calculations) used by our Funding Partners. If you would like to discuss this further, please do not hesitate to contact GIH.
What does the Funding Partner contribution support?
GIH Funding Partner benefits are summarized in the file Funding Partner Benefits 2019. In summary, GIH’s most sought-after benefits are: 1) tools and information on the issues we cover, 2) the opportunity to network with other foundations to share information or seek co-investment, and 3) strategic guidance from GIH program staff, issue-area and philanthropic experts, and peers.
Above and beyond the direct benefits of being a Funding Partner is the important contribution you make to the overall betterment of the field of health philanthropy. Our mission is to help grantmakers do their work more efficiently and effectively, and to assure that grantmakers have access to substantive information on key health and operational issues. By supporting GIH and our efforts, you are helping both to raise the professionalism of the field, and to promote the value of health philanthropy to a wider audience of policymakers, the media, and the public at large.
Will there be another adjustment in the future?
Yes, but not for several years. GIH is thoughtful and sparing about making changes to our Funding Partner Giving Levels chart. Our tentative plan is to review our operating costs and programmatic goals on a more regular basis so that any future changes will be more incremental.
What is the new rate for my organization and how did you calculate that amount?
Please contact Beth Harris, Development Advisor, email@example.com, for that information. She will provide individual responses and one-on-one assistance for each Funding Partner organization.