Comments on: The Critical Alignment of Mission, Money and Competence http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/ Accelerating Social Innovation Thu, 15 Jul 2010 21:40:06 +0000 hourly 1 http://wordpress.org/?v=abc By: Don’t Go Blindly Into That Social Media World « Austin Entrepreneur Network http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-670 Don’t Go Blindly Into That Social Media World « Austin Entrepreneur Network Sun, 20 Sep 2009 21:20:46 +0000 http://www.socialvelocity.net/?p=595#comment-670 [...] written about this critical alignment before, and it seems to me that this integration of the three core activities of a nonprofit are rarely [...] [...] written about this critical alignment before, and it seems to me that this integration of the three core activities of a nonprofit are rarely [...]

]]> By: A Strategic Approach to Generating Revenue | Social Velocity http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-479 A Strategic Approach to Generating Revenue | Social Velocity Fri, 01 May 2009 16:07:24 +0000 http://www.socialvelocity.net/?p=595#comment-479 [...] written before about how revenue in the nonprofit sector is often thought about separately from mission and core competency.  It is sometimes (more often than not) viewed as the step child [...] [...] written before about how revenue in the nonprofit sector is often thought about separately from mission and core competency.  It is sometimes (more often than not) viewed as the step child [...]

]]> By: The one thing you need to know before launching a nonprofit « Sasha Dichter’s Blog http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-356 The one thing you need to know before launching a nonprofit « Sasha Dichter’s Blog Thu, 02 Apr 2009 10:06:12 +0000 http://www.socialvelocity.net/?p=595#comment-356 [...] I’m pretty agnostic about whether the funding stream you have in mind is large donations from individuals; government [...] [...] I’m pretty agnostic about whether the funding stream you have in mind is large donations from individuals; government [...]

]]> By: The Critical Alignment Discussion | Social Velocity http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-305 The Critical Alignment Discussion | Social Velocity Mon, 23 Mar 2009 16:35:37 +0000 http://www.socialvelocity.net/?p=595#comment-305 [...] back from Spring break, which came right as the flurry of discussion about my blog post The Critical Alignment of Mission, Money and Competence was winding down.  I [...] [...] back from Spring break, which came right as the flurry of discussion about my blog post The Critical Alignment of Mission, Money and Competence was winding down.  I [...]

]]> By: A Nonprofit Funding Model Framework « Mission Driven http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-297 A Nonprofit Funding Model Framework « Mission Driven Tue, 17 Mar 2009 13:41:50 +0000 http://www.socialvelocity.net/?p=595#comment-297 [...] opportunities to fruitless ends.  It makes much more sense to be disciplined, and focus on the alignment of one’s mission, core competencies and resource engine (i.e. your funding model), which is really what this article is all [...] [...] opportunities to fruitless ends.  It makes much more sense to be disciplined, and focus on the alignment of one’s mission, core competencies and resource engine (i.e. your funding model), which is really what this article is all [...]

]]> By: Social Capital Markets 2008 Blog » Blog Archive » Selling the mission http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-288 Social Capital Markets 2008 Blog » Blog Archive » Selling the mission Fri, 13 Mar 2009 23:44:33 +0000 http://www.socialvelocity.net/?p=595#comment-288 [...] $85 million in growth capital in the last 20 months from a very diverse set of funding sources, says Acumen’s Sasha Dichter “and I can promise you that while there are a core set of [...] [...] $85 million in growth capital in the last 20 months from a very diverse set of funding sources, says Acumen’s Sasha Dichter “and I can promise you that while there are a core set of [...]

]]> By: Nell Edgington http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-287 Nell Edgington Fri, 13 Mar 2009 14:04:50 +0000 http://www.socialvelocity.net/?p=595#comment-287 Sasha, I think we are saying the same thing. I agree that in the end people make their own decisions for their own reasons (and I actually DID just buy an IPhone because I was sick of multiple devices--how prescient you are) but the more you can be strategic about targeting the right people, finding out how to connect with them (how to communicate, how to package, how to demonstrate results, etc.) the better you will be at getting them to invest. You're never going to have complete control over the transaction or their view of it, but if you take a strategic approach and integrate your activities toward raising money with your activities toward delivering on your mission the more successful and sustainable you will be overall. I really appreciate your, and everyone's, time and thoughts on this. What a great discussion! Sasha,

I think we are saying the same thing. I agree that in the end people make their own decisions for their own reasons (and I actually DID just buy an IPhone because I was sick of multiple devices–how prescient you are) but the more you can be strategic about targeting the right people, finding out how to connect with them (how to communicate, how to package, how to demonstrate results, etc.) the better you will be at getting them to invest. You’re never going to have complete control over the transaction or their view of it, but if you take a strategic approach and integrate your activities toward raising money with your activities toward delivering on your mission the more successful and sustainable you will be overall.

I really appreciate your, and everyone’s, time and thoughts on this. What a great discussion!

]]> By: Sean Stannard-Stockton http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-286 Sean Stannard-Stockton Fri, 13 Mar 2009 13:29:04 +0000 http://www.socialvelocity.net/?p=595#comment-286 Just to be clear, in my opinion a sustainable "revenue model" can be exclusively philanthropic fundraising. The key to sustainability is knowing that something is repeatable. Earned income can be just as hit and miss as fundraising. In fact, fundraising is less cyclical than most revenue streams. But *hoping* that you'll raise enough money isn't a "sustainable revenue model". Fundraising is a business and you can build an infrastructure and model that raises a sustainable revenue stream. That being said, note that total nonprofit revenue is something like $1.5 trillion and donations total only $300 billion, or 20% of total, per year. Just to be clear, in my opinion a sustainable “revenue model” can be exclusively philanthropic fundraising. The key to sustainability is knowing that something is repeatable. Earned income can be just as hit and miss as fundraising. In fact, fundraising is less cyclical than most revenue streams.

But *hoping* that you’ll raise enough money isn’t a “sustainable revenue model”. Fundraising is a business and you can build an infrastructure and model that raises a sustainable revenue stream.

That being said, note that total nonprofit revenue is something like $1.5 trillion and donations total only $300 billion, or 20% of total, per year.

]]> By: Sasha Dichter http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-285 Sasha Dichter Fri, 13 Mar 2009 13:28:18 +0000 http://www.socialvelocity.net/?p=595#comment-285 Nell, I'm actually saying the opposite: even when you have an aligned revenue strategy, a clear source of funds, a defined constituency, etc., funders (individuals, institutions, government) see what they want to see. That's human nature and the nature of philanthropy, and I don't think it's significantly different from other market transactions ("Sasha buys an iPod because he wants to have a great Twitter interface. Sean buys it because he's a tech early adopter who has to have the latest gadget. Nell buys an iPod because she's sick of carrying around two separate devices...."). The business model, the story, the ability of the "product" to delight at create word of mouth that leads to a self-reinforcing growth path, these all have to be there. But everyone sees what they want to see. I've led up a team that raised more than $85 million in growth capital in the last 20 months from a very diverse set of funding sources, and I can promise you that while there are a core set of reasons that individuals and institutions support our work, if you get below the surface, everyone is very different and in each relationship (even with institutional sources of funds), the funding decision in each case meets a specific (and different) set of individual / institutional needs. So it's not "hoping" that people will see what they want to see, it is creating a compelling model that delivers real results, unearthing the right stories to explain that model in a way that consistently connects to people and inspires them to act, finding the right channels (in person, online, whatever) to deliver that story in a way that it will reach the people you want to reach, and then being very successful in telling that story to differentiate yourself in the marketplace. (And even when you do all that, people will still see what they want to see.) So maybe you and I are saying the same thing but describing it in a different way... Nell, I’m actually saying the opposite: even when you have an aligned revenue strategy, a clear source of funds, a defined constituency, etc., funders (individuals, institutions, government) see what they want to see. That’s human nature and the nature of philanthropy, and I don’t think it’s significantly different from other market transactions

(“Sasha buys an iPod because he wants to have a great Twitter interface. Sean buys it because he’s a tech early adopter who has to have the latest gadget. Nell buys an iPod because she’s sick of carrying around two separate devices….”). The business model, the story, the ability of the “product” to delight at create word of mouth that leads to a self-reinforcing growth path, these all have to be there. But everyone sees what they want to see.

I’ve led up a team that raised more than $85 million in growth capital in the last 20 months from a very diverse set of funding sources, and I can promise you that while there are a core set of reasons that individuals and institutions support our work, if you get below the surface, everyone is very different and in each relationship (even with institutional sources of funds), the funding decision in each case meets a specific (and different) set of individual / institutional needs.

So it’s not “hoping” that people will see what they want to see, it is creating a compelling model that delivers real results, unearthing the right stories to explain that model in a way that consistently connects to people and inspires them to act, finding the right channels (in person, online, whatever) to deliver that story in a way that it will reach the people you want to reach, and then being very successful in telling that story to differentiate yourself in the marketplace. (And even when you do all that, people will still see what they want to see.)

So maybe you and I are saying the same thing but describing it in a different way…

]]> By: Nell Edgington http://www.socialvelocity.net/2009/03/the-critical-alignment-of-mission-money-and-competence/comment-page-1/#comment-282 Nell Edgington Fri, 13 Mar 2009 02:11:56 +0000 http://www.socialvelocity.net/?p=595#comment-282 Sasha, I think believing that nonprofit fundraising is a Rorschach test is leaving too much to chance. You can't hope that donors will see what they want to see in your nonprofit and find funding that way. Rather, I think you must be strategic about creating a revenue engine (that can and should include other revenue sources beyond individual donors)and then make the connections (with donors and/or others) that will allow the revenue to flow. I absolutely agree with you that now it is up to FORGE to translate these new relationships into long-term donors. I'm hoping they can do it. Sasha, I think believing that nonprofit fundraising is a Rorschach test is leaving too much to chance. You can’t hope that donors will see what they want to see in your nonprofit and find funding that way. Rather, I think you must be strategic about creating a revenue engine (that can and should include other revenue sources beyond individual donors)and then make the connections (with donors and/or others) that will allow the revenue to flow. I absolutely agree with you that now it is up to FORGE to translate these new relationships into long-term donors. I’m hoping they can do it.

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