Attracting Private Philanthropy

The City of Newton has not reached out to its residents in any material way for private donations to help fund our capital projects. Newton has a large, diverse population. Many of its wealthier residents have given significant sums to private schools and universities, hospitals, religious organizations and other worthy causes. In addition, other philanthropic activity flourishes in Newton, as residents across the personal financial spectrum support an enormous variety of non-profit entities.

Despite this wide-spread willingness to fund non-profit causes, the city does little to encourage its residents to provide extra financial resources for city programs or capital projects. Locally, Newton Wellesley Hospital recently raised over $10 million for the construction of a new emergency pavilion. In addition, it currently has $8 million in new fund raising for the construction of a new cancer center. Nearby, the Buckingham, Brown and Nichols school in Cambridge has raised over $50 million for its “opening minds” capital and annual fund campaign...with a student body of under 1000 students representing about 600 families, plus alumni families.

These types of fundraising activities happen because the institutions actively encourage participation from interested people in their communities. They also recognize donors with naming opportunities and “thank you” events. They view their very well being as dependent on the support and sponsorship of their constituencies. In contrast, Newton has no development function. Not only are donations not encouraged, a donor often has to fight red tape to give money to most areas in the city (even for schools, with a well run schools foundation and numerous PTOs, potential donors face equity issues).

Most residents probably view their property taxes as ample “donation,” and the city does nothing to discourage this perspective. While it is speculation to wonder how much support might have been given for the construction of the new high school, there can be little doubt that if the city actively managed a development process and created an environment that celebrates giving, significant sums could have raised— some from anonymous donors and some from donors who wished to name various facilities within the school.

Summary of Proposed Solution

The city should:

i) Explore the creation of a “development” function, modeled on that function as deployed in successful non-profits, to create and manage a fundraising program, as well as to help develop a city-wide culture that encourages such activity;

ii) Provide opportunities for recognition for private donations;

iii) Reduce barriers to giving;

iv) Create a private foundation to support Newton’s government.

Discussion and Implementation Plan

i) Creating a Development Function

Creation of a development position need not necessarily involve adding a new position to City government. The function could be taken on by an existing city employee or could be contracted out. The development officer would build relationships with wealthy Newton residents, sharing with them information regarding the importance of municipal services and how they can help support those services. The development officer would also play a role in setting fundraising targets and fostering a citywide culture that values support for Newton’s efforts;

ii) Providing opportunities for recognition

Naming rights for public buildings, parks, and other capital assets is just one way the City of Newton can provide recognition to generous donors who make major contributions in support of community efforts. Sometimes being publicly thanked is sufficient, while in other cases more creative efforts to acknowledge generosity are called for; and

iii) Reducing Barriers to Giving

Some donors may prefer to condition their gifts in ways that are not feasible in the context of Newton’s current structure. We should evaluate the validity and usefulness of these barriers to giving and determine whether it is practical and advisable to reduce or eliminate them; and

iv) Creating a Newton Foundation

In some cases, donors will prefer to not to donate directly to the City, but will be comfortable giving to a non-profit entity set up to support City operations. Just as the Newton Schools Foundation provides grants to support innovation in the Newton Public Schools, a new Newton Foundation could support innovation in other city departments. Such a foundation could also conduct research, similar to the Boston Municipal Research Bureau, in support of innovative and cost-effective government.