At Pennywise, we don’t limit our focus to certain causes or parts of the world. Instead, our priorities are to identify and support specific approaches to nonprofit service delivery that are proven to generate more effective, efficient and enduring solutions to persistent problems.
We want our donors to become part of these strategies and to see the tangible positive change that results from them. We view our role as providing the comprehensive information donors need to make the best decisions about their giving. Decisions that we think should be based not only on what an organization is doing but also how they are getting it done and why their methodology is likely to be successful over time. In this way Pennywise is able to match creative giving with creative problem solving. We can apply our assessment criteria to any issue or region of the world and find uniquely effective organizations that are making change happen.
We also employ an array of other tools that help us decide which organizations to support and to make giving recommendations. Here are some of the most important of them:
We want our donors to become part of these strategies and to see the tangible positive change that results from them. We view our role as providing the comprehensive information donors need to make the best decisions about their giving. Decisions that we think should be based not only on what an organization is doing but also how they are getting it done and why their methodology is likely to be successful over time. In this way Pennywise is able to match creative giving with creative problem solving. We can apply our assessment criteria to any issue or region of the world and find uniquely effective organizations that are making change happen.
We also employ an array of other tools that help us decide which organizations to support and to make giving recommendations. Here are some of the most important of them:
KNOWLEDGE & EXPERTISE
Collectively the Pennywise Staff and Board have over 100 years of human service and community development experience in an array of substantive areas. Pennywise supports organizations and projects that we know first-hand are making critical differences. We also use our expertise to assess an organization’s management structure and the way it allocates its resources. Pennywise will only support organizations that exceed standards in non-profit management such as dedicating upwards of 80% of their budgets to direct aid and demonstrating the capacity for strategic thinking, annual planning and organizational self-assessment.
SITE VISITS
Pennywise understands that our donors want us to do the legwork they don’t have time to do themselves. Whenever feasible, Pennywise staff will visit potential grantees before a grant is made to see how they do what they do. Site visits will generally include meetings with staff members (at the executive level and on the “front lines”), organizational documents review, field visits to see service work underway and, whenever possible, meetings with beneficiaries to hear about how the goods or services offered by the potential grantee are impacting them. After conducting a site visit Pennywise will make a determination about a grant based on the quality of the work reviewed and on how closely the organization’s mission and methodologies match Pennywise priorities. When a physical site visit is not possible, we conduct thorough interviews with staff via Skype and other technologies and ask for additional documentation.
PUBLIC CRITERIA
We also spend the time, so our donors don’t have to, making sure the organizations we support meet certain public criteria and minimum standards.
Pennywise only gives to recognized charitable organizations. Grants are only made to organizations that have obtained 501(c)3 status from the US IRS or are the international equivalent, recognized as charities by the governments in which they operate. Our grantees must demonstrate financial health and show that they are committed to transparency. Before making a grant, Pennywise requires potential grantees to submit one full year of financial reports, a copy of the prior year’s 990’s (or international equivalent) and a copy of an independent, external audit. For organizations that are less than two years old, we will accept 3-year budget projections and a business plan in lieu of other financial documentation. Pennywise also considers reviews and ratings from a number of charity monitoring organizations to inform our grant decisions.
Pennywise only gives to recognized charitable organizations. Grants are only made to organizations that have obtained 501(c)3 status from the US IRS or are the international equivalent, recognized as charities by the governments in which they operate. Our grantees must demonstrate financial health and show that they are committed to transparency. Before making a grant, Pennywise requires potential grantees to submit one full year of financial reports, a copy of the prior year’s 990’s (or international equivalent) and a copy of an independent, external audit. For organizations that are less than two years old, we will accept 3-year budget projections and a business plan in lieu of other financial documentation. Pennywise also considers reviews and ratings from a number of charity monitoring organizations to inform our grant decisions.
ACCOUNTABILITY
Pennywise enters into a formal contract with each of its grantees. The contract proscribes the uses of Pennywise funds; requires periodic status reports, a final report and detailed accounting of how grant funds were used; and acknowledges that Pennywise has the authority to withhold or recover grants that are, or appear to be, misused. Throughout the process, Pennywise works with grantees to maintain focus on how tangible impact will be demonstrated and documented and how the organization or project is, or will become, self-sustaining. We seek to create long-lasting relationships with all of our grantees and welcome opportunities to work with them on follow up and future planning.