One of the many myths being spread by opponents of Referendums C and D is that private foundations can make up for lost state government dollars. If only this were true!
Foundations in Colorado have been growing in number and size in recent years. Many generous families, individuals and corporations have established foundations as a vehicle for supporting charitable causes and helping people in need.
But compared to other places, our foundation sector is quite small. The Colorado Association of Funders has fewer than 100 members. In contrast, the Ohio Grantmakers Forum has more than 200 members and the Council of Michigan Foundations has 400 members.
Almost every city the size of Denver has at least one multibillion-dollar foundation. There is the Kaufmann Foundation in Kansas City, the McKnight Foundation in Minneapolis, the Annie E. Casey Foundation in Baltimore, and of course the Bill and Melinda Gates Foundation in Seattle. Even some small cities have giant national foundations, such as the Kellogg Foundation in Battle Creek, Mich. There is no foundation even close to this size in Colorado.
Of the 45 largest foundations in the country, not one is from Colorado. Of the 100 largest foundations in the country, only one is from Colorado. This is not because Coloradans are less generous. Rather, it is due to the lack of “old money” in Colorado and the fact that we are not yet a “headquarters town.”
Last year, The Denver Foundation gave away more than $22 million in grants to nonprofit organizations – the second most of any foundation in the state. This sounds like a lot of money until you compare it to the state budget.
The entire amount given by The Denver Foundation in one year would fund the Colorado Department of Education for fewer than three days. It would fund the Colorado Department of Higher Education for fewer than five days, the Colorado Department of Transportation for fewer than 12 days, and the Colorado Department of Corrections for fewer than 11 days.
The same is true even if we took every dollar that every Colorado foundation gives away in a year. Compared to the state government’s budget, the capacity of Colorado foundations is only a drop in the bucket.
Foundations have more flexibility than government. Foundations can act more quickly than government and can take more risks. Foundations can fund pilot projects and support experimental programs. But foundations cannot even begin to replace any of the roles that government plays.
In short, if Referendums C and D are defeated next Tuesday, there is absolutely no way that foundations can fill the huge holes that will be created because of state budget cuts.
So, if you want Colorado to have adequate K-12 education, higher education, transportation, law enforcement, prisons, parks and health care, vote in favor of Referendums C and D.
David Miller is president of The Denver Foundation.
