In 1994, the Greater Milwaukee Foundation, the Helen Bader Foundation, and the Faye McBeath Foundation researched models to strengthen the infrastructure of nonprofit organizations. Since only a few models existed across the country, they chose to design a three-year pilot with the potential to become a long-term model. ​With design and logistical assistance from Management Cornerstones, Inc., the foundations established a donor-advised fund at the Greater Milwaukee Foundation. A representative of each served on the Grants and Policy Committee, which met three times a year to approve policies and guidelines for the Fund, as well as award technical assistance grants.

 

In September 1994, once policies, guidelines, and an application were drafted, invitations were sent to the grantees of the three foundations to hear a presentation about the Fund. Over 300 representatives from local nonprofits showed up to hear about this new funding opportunity that would build their organization’s infrastructure. In order to focus on local small and mid-sized nonprofits, the Fund determined that eligible organizations must be incorporated for at least two years, have an annual budget under $3 million, and focus their services in Milwaukee, Ozaukee, or Washington County.

 

The first grant-making cycle in November 1994 reviewed 28 applications requesting $185,000. The Fund's success attracted other foundation, corporate, and United Way representatives. The three-year pilot project grew to 10 funding partners, contributing $500,000 to $750,000 per year. Funded by foundations and expanded partnerships to the private sector, including corporations and United Way, the Nonprofit Management Fund is a true collaboration among funders.

 

Operating as a “virtual organization” and existing as a donor-advised fund at the Greater Milwaukee Foundation, the Fund relies on its partners to handle grant administration and financial services. Each partner representative contributes time and talent, in addition to financial support.