Neil D. Steinberg has never worked as hard as he has over the last 15 years. But he has also enjoyed every moment of it.
Steinberg, 69, became the Rhode Island Foundation’s CEO and president in 2008, succeeding Ron Gallo. He had been vice president of development at his alma mater, Brown University. And before that, he worked for about 30 years for the bank that eventually became FleetBoston Financial, ending his tenure as chairman and CEO of Fleet Bank Rhode Island.
Steinberg has raised the foundation’s profile, and he’s at ease working rooms filled with state officials and business and nonprofit leaders, drawing attention to major societal issues in the Ocean State. The foundation, under Steinberg’s leadership, also significantly increased its financial portfolio and its giving.
The foundation had $1.3 billion in assets in 2022 and distributed $84 million to 2,400 nonprofits that year – three times the annual giving of the foundation in 2008 to twice as many organizations.
Steinberg says leading the foundation has been “the best job I’ve ever had.” Come June 1, Steinberg’s tenure will conclude with his retirement. David N. Cicilline, a former Providence mayor who also served for 11 years as a congressman, will take over.
“What I will miss is being in the epicenter of being involved in a lot of things,” Steinberg said. “The organization is built on the shoulders of many that came before us. Now, it’s time to hand it off to the next leadership.”
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HANDING OFF: Neil D. Steinberg has been CEO and president
of the Rhode Island Foundation since 2008, but he’s ready
to step down at the end of May.
PBN PHOTO/TRACY JENKINS[/caption]
When you look at where the foundation is today, is it what you envisioned it becoming 15 years ago? The truth is, I did not know much about it when I got here. I knew of it and its history, but I did not really understand what it did. What I saw was a lot of potential. I didn’t walk in and say, “This is what it should be.” I walked in and as I learned more about what the foundation did and what it could do, I saw a lot of potential to raise more money.
I saw a lot of potential to build the endowment and give out more money, and I saw the opportunity for us to play a leadership role in key issues. We then established a mission to be a proactive community and philanthropic leader to meet the needs of all the people in Rhode Island.
The foundation, under your direction, saw its total assets more than triple in size since 2008. How did that happen? The way we grew [the assets] was we raised more money and having good investment performance over the years. Our investment performance over 20 years is 8.1% annualized. Put that in with the money we raised over the years, that is how it grows.
Was getting the foundation to be a bigger player financially in community building an original goal of yours, or did it happen organically? [Being a bigger player] was the intent. I saw the potential to do it. Most importantly, the state needs it. We saw the needs of the state. When people say, how do we decide on tackling education, health care, economic security, those are big needs in the state.
How did you get more donors involved? We just upped the game and talked to more people across the board. [My experience at] Brown and FleetBoston, those were the building blocks. I knew business. I knew community. I can bring those contacts in and network. Combine all that with a very talented staff here … we’re going to raise more money.
You have to raise it because people believe in you and they trust in the institution, and we can help fulfill what they want. We’re here to say we make the donors’ dreams come true.
Have you achieved all or at least most of what you wanted? You never get there. You always want to do more. Have we become a much bigger player and a leader in the state? Yes. But there’s always more to do, which is the purpose of a community foundation.
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AN ACHIEVEMENT: Dozens of community leaders gather to discuss the state’s education system at a forum organized by the Rhode Island Foundation in 2019. The event was part of the “Make It Happen” initiative that the Rhode Island Foundation started in 2012.
PBN FILE PHOTO/MIKE SKORSKI[/caption]
What would you say has been the foundation’s greatest achievement under your leadership? We did the “Make It Happen” initiative in 2012. That was transformational for us; it was a brainstorming session with 300 people from businesses and nonprofits at the R.I. Convention Center. We decided to lead what we thought was a void and a need in the state for long-term planning for education and health. Three years ago, we started long-term education and health planning, creating plans that were put into place with the R.I. Department of Education, and [then-Gov. Gina M.] Raimondo signed the executive order. This group still meets to convene leaders in the community to do work.
We had our 100th anniversary in 2016 and we raised a special $10 million to resurrect Roger Williams Park for park improvements and an endowment for park conservancy. COVID-19 certainly was a big crisis and we stepped up and raised a lot of money to meet the needs in the community.
It can be hard for the community to measure the success of all the campaigns the Rhode Island Foundation has initiated, relative to the investments in money and time. How does the foundation ensure it is getting bang for its investment buck?It’s a combination of science and art. A lot of it is about balance. We balance across sectors and we balance demographically. We always tell people, “We can do anything, but not everything.”
That’s where the trick of the measurement is. It’s helping and contributing and working with long-term and short-term [issues]. It’s also about judgment.
Last year, you warned that Rhode Island is “at risk” of not having the workforce it will need in a decade if the state does not address several societal issues. Have you seen the state respond to this in any way? I think it’s gotten a lot of attention. But honestly, have we made a big dent? No. There’s a long way to go. Me saying things like that is [intended] to focus attention to maybe get some political and thought leaders to discuss it. It will take leadership.
We’re not experts on all the root causes and all the solutions. What we do is work with people on the ground who know more than we do [to find solutions].
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‘SUPERMAN’ REBIRTH? The Rhode Island Foundation has agreed to provide a $15 million bridge loan to help get the Industrial Trust Co. Building redeveloped because it is key to revitalizing downtown Providence.
PBN FILE PHOTO/MICHAEL SALERNO[/caption]
Back in 2020, the foundation committed $8.5 million over three years to address racial disparities and inequities in the state. What progress has been made through that initiative? The signature program implemented is the Equity Leadership Initiative. This was to recruit and invest in future leaders for the state in communities of color. We had two groups of 30 people across sectors – nonprofit, for-profit, government – and [all diverse backgrounds].
These are experienced people who want to become more invested in leadership in the state, and we’re investing with them with different programs. We’ve also increased grantmaking in certain areas [to help the minority community].
What more needs to be done to address racial inequity? It needs to be consistent and steady. Looking at diversity and being equitable is not a one-shot thing. Thirty years ago, I got diversity training when I was a banker. Here we are again.
A lot of this needs to be staying the course. They’re not fast. They’re real commitments. They’re addressing the change in the demographics in the state and country.
What do you feel is the greatest challenge still plaguing the state and how do you hope the foundation moves to help address it? We’ve identified K-12 education. We have significant education gaps. We need to close those gaps. We need to collectively look at education and what needs to change. Do we need to recruit more teachers? Do we need to provide training? We need to look at the funding formula to make sure it’s equitable throughout the state.
We talked about what you are proudest of. What was most disappointing, not in terms of the intent or the foundation’s efforts, but the lack of tangible results? We did have one program – it was a favorite of mine – called “All In Your Backyard.” It was designed several years ago to highlight Rhode Island achievements. Someone was the best in this or that. We did a lot of publicity on it. It was well received, but we couldn’t continue it. It was a big advertising campaign that we weren’t prepared to do.
The other is how difficult it is to be patient with long-term change. I’m disappointed we’re not further along in education. I’m disappointed that we’re not further along in health care. The inertia … resources and leadership need to be committed long term. We need to take all this rhetoric to action. My favorite phrase is the Nike phrase: Just Do It.
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A STEADY CLIMB
In the 15-plus years Neil D. Steinberg has led the Rhode Island Foundation,
the nonprofit funder’s annual grant distributions and total assets have tripled over time. / SOURCE: RHODE ISLAND FOUNDATION[/caption]
The foundation has agreed to provide High Rock Development LLC a $15 million bridge loan for the redevelopment of the Industrial Trust Co. Building, the “Superman” building, in Providence. How important is it for the project to become a reality for both the city of Providence and the state? [The bridge loan is] still subject to financial and legal due diligence as the project progresses. The opportunity to anchor a revitalized Kennedy Plaza and downtown Providence has only grown, as has the need to jump-start this area given the COVID-19 impact. Additionally, the need for housing downtown has grown and this building can be part of the solution. The statistics showing a very low vacancy rate for downtown housing, the building’s central location, and the truly unique and impressive stature of the building further support that this is the time to leverage the redevelopment of an iconic building for housing downtown. Rhode Island has an unprecedented housing shortage at almost every income level. There is more public awareness of the need for more housing right now than at any other time I remember.
Are you optimistic that the state will wisely spend the $1.1 billion in American Rescue Plan Act funds in the coming years to address many areas of need, including housing, workforce development and small-business support? I’m hopeful that the state, as well as the cities and towns, is being diligent in using that money. The biggest issue is implementation and accountability. Some areas of the state have done better than others in getting the money out the door. Having the money allocated doesn’t do any good if it’s not out the door. [State officials] need to watch that.
They also need to hold people accountable on what the money is for. A lot of money went out to cities and towns, but I don’t know who is watching that. The accountability is key. Worst thing we can do in five years is say, “Hey, whatever happened to all that money?”
Why was David Cicilline a good choice to succeed you and what should the foundation’s first priority be once he becomes CEO and president in June? He has been committed to Rhode Island his entire career. He has been involved in a deep way of being out in the community. I think doing this [new role] will draw on more of his experience as a mayor than as a congressman because it’s hyperlocal. He brings a passion, commitment and intelligence. He will bring a wide network. He’s probably one of five people in the state that has a better Rolodex than me.
I don’t see immediate changes [with the foundation]. I think continuity is important for our staff, donors and grantees. I think he will come in, listen and learn. Making adjustments and doing some new things I think will be his prerogative.
Is there room for the foundation to become even more involved in statewide planning, with a kind of permanent seat at the table with an ex-mayor and former congressman leading it? It will depend on what it takes. We already have a seat at the table now, and we get to sit at the head of the table half the time. The reason is that we have funding. When you show up with funding, you get to pay the lunch bill sometimes. We’re not partisan here, and he will be nonpartisan.
Do you plan to stay involved in public life and if so, how? Or are you looking forward to riding off into the sunset, so to speak? I’ll stay active where it makes sense where there is somebody who wants my assistance. I’m not moving; I’m staying here. I’m not running for office – have no desire for that. I want to enjoy the summer. But a lot of it is controlling the time. Right now, I don’t have it – and I’m fine with that. I like the action and fast pace. I will be here as an elder statesman. If someone wants me to help in certain key areas, such as housing and education, I will. Some state leaders asked me to stay involved. I’ll go on some boards, but I’m keeping it open on purpose.
Kudos to Neil Steinberg. Cicilline will never come close to filling Neil’s shoes.