WHY DEVELOP A MISSION STATEMENT?

Although typically only one or two sentences long, good mission statements can often make the difference between a focused grantmaking program and a philanthropy that is unsure about its purpose and goals. The following is excerpted from Grantmaking with a Purpose: Developing Mission Statements and Guidelines.

The mission clarifies what the family hopes to accomplish through their grantmaking, and in what areas it will make grants to get there. All founding documents for charitable vehicles include some sort of statement of purpose; the actual term can vary from state to state. The law does not require a mission statement separate from this statement of purpose and many family philanthropies don’t have one, especially in the formative years when the original donor is at the helm.

The mission does state the purpose of the foundation or fund, but it goes far beyond that basic function. A thoughtfully conceived mission:

Helps the family set a course that transcends generations. Older family members must ultimately hand over the torch to the young. Free and open conversations about the mission can give all the generations a chance to build upon the original donor’s legacy, as well as express their hopes for the future and their vision for the family’s philanthropy.

Enables the foundation to see where it is deviating from its expectations and goals so it can make course corrections. By including several goals in the mission, the family foundation can act more strategically, building in review of its goals in three or five years to see how far it has come, and whether it needs to revise its thinking.

Identifies gaps that the foundation or fund can fill. Most family foundations are small, with assets of less than $5 million. Taking time to think and talk about the mission can focus the family on applying their resources where they can do the most good.

Enables the organization to be more strategic. For example, a mission can allow for grantmaking through collaboration and matching grants, thereby harnessing the power of larger organizations and compounding the impact of a family’s grantmaking.

Ensures that the family members are truly in sync. Family trustees sometimes think they’re in agreement when they may not be. The discussion around the mission early on can reveal and help reconcile important philosophical differences.

Strengthens the role of the family in the foundation. As family foundations grow and, sometimes, involve non- family members in the process, some families fear they will lose the family legacy and influence. By devising a clear mission, a family can assure that the foundation is headed in the direction that’s right for them.

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