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Social Technology for Social Change: An Interview with Amy Sample Ward

By Nell Edgington



In today’s Soamysampleward-headshotcial Velocity interview, I’m talking with Amy Sample Ward, CEO of Nonprofit Technology Network (NTEN), the membership organization of nonprofit professionals who put technology to use for their causes. Amy leads a team dedicated to connecting individuals, organizations and campaigns in order to transition the nonprofit technology sector into a movement-based force for positive change.

Previously serving as the Membership Director at NTEN, Amy is also a blogger, facilitator and trainer having worked with groups and spoken at events in the US, UK and around the world. In 2013, she co-authored Social Change Anytime Everywhere with Allyson Kapin.

You can read other interviews in the Social Velocity Interview Series here.

Nell: For many nonprofit leaders, social media is still viewed as a sideline, rather than an integral, aspect of the work. How do you convince nonprofit leaders that social media can actually be a means of furthering their social change missions?

Amy: Social media really encompasses so many different tools and platforms. The probability that your community isn’t using ANY kind of social technology is pretty low. Every organization doesn’t have to use every tool out there. Quite the opposite! I encourage every nonprofit not to think of social media as time suck and “one more thing to add to the list”, but, instead, as a way to connect directly with community members on a much more regular basis than your other outreach in email or events. Select which platform or platforms you use by asking your community and listening first – this helps ensure that any time you do invest in social media is spent in the platforms where your community is active and you have the highest chance of success.

Nell: Because the nonprofit sector is so resource constrained, nonprofits have traditionally been somewhat insular and risk averse. How do nonprofits reconcile that approach to a growing need to be more open, collaborative, transparent and risk embracing?

Amy: If there’s fear about change, taking risks, or transparency, my suggestion is to take inspiration from and share responsibility with your community. As a nonprofit organization, you cannot fully achieve your mission on your own – you need your community to help you create lasting change in the world, so why not invite the community to help you create change in your work!

When you invite your community in, you start to embrace transparency. You also lessen the stigma of risks because you now have community members championing new ideas and helping you test and iterate to find the best approaches. You don’t have to fear changing when you are working closely with your community because doing so means working with people, and we all change every day.

Nell: On the flip side of that, is there a risk of becoming too consumed by social media and new technologies? Can nonprofits – and all of us really – become too enamored of every new shiny object at the expense of actually creating social change?

Amy: At the end of the day, we all have lots of work to do and don’t want to get distracted or bogged down by any one thing, whether that’s Facebook, Twitter, email, or meetings! I think the real risk is in letting your tools guide your strategic decisions. Social media tools are launching every day, sometimes with a lot of press coverage. It’s understandable that you could read a post or see another organization trying a new platform and think you should do it, too. Or, to let the functionality of a certain platform dictate how you decide to create and run a campaign. It’s critical that all staff have the resources and training to think and plan strategically about their work, identifying the tools last that align with their goals, community and audience, and your mission.

Nell: Technology is often considered “overhead” in the nonprofit world. How can nonprofit leaders convince funders and board members that investing in technology can have a significant return on investment?

Amy: The best thing organizations can do to prove this is by actually proving it: track and evaluate your own return on investment, share information about your budgeting and planning, and include clear information and analysis of the necessary technologies to do your work in every grant proposal and report. You can’t expect funders to invest in something if you aren’t able to convince them from the beginning.

Photo Credit: nten.org


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10 Great Social Innovation Reads: June 2014

By Nell Edgington



social innovationI have to admit, June was a busy month for me with lots of travel and events, so I was less tuned into social media. Thus, I am offering a far from definitive list of the best reads from the month. But here goes…

New data on charitable giving and social fundraising, and a new effort to create a system to classify philanthropic activity made for some exciting developments. And because it wouldn’t be a great month in the world of social innovation without lots of debate, there is also plenty of criticism of philanthropists, philanthropic consultants, and business theory. It all made for a great month in the world of social innovation.

Below are my 10 favorite reads from the last month. But this month, more than ever, please add what I missed to the comments. And if you want to see a longer list of great reads, follow me on TwitterFacebookLinkedIn or Google+.

And you can see past months’ 10 Great Reads lists here.

  1. Good news for charitable giving, it looks like total US donations will go back to their 2007 peak of $350 billion sooner than originally thought. The post-recession rebound will happen sometime this year or early next, according to new data.

  2. And adding to the data about giving, the Nonprofit Tech for Good blog shares some great statistics about fundraising, social media and mobile.

  3. The Foundation Center has embarked on a bold project to create a robust classification system for philanthropy. They have created a draft “Philanthropy Classification System,” which is a “structure for describing the work of philanthropy consisting of subjects, population groups, transaction types, and approaches (support strategies)” and opened it to public comment. Their goal is to “unleash the ability of foundations to work far more efficiently with each other and with other sectors to achieve the kind of scale that can drive real change in the world.” It’s fascinating. Take a look and give them your thoughts.

  4. The Packard Foundation is one of the great examples of foundations that understand and support nonprofit organization building. They have created a great wiki on “Organizational Effectiveness” with resources for other grantmakers interested in supporting nonprofit organization building. And my favorite resource on the list is the article from Linda Baker, a Packard Foundation program officer, urging foundations to “be the duct tape” for nonprofit grantees. Ah, if only more philanthropists thought this way!

  5. But not all philanthropy news is good news. A report on the Walton family shows that the second generation heirs to the Walmart fortune have given almost none of their personal fortune to philanthropy, despite being the richest family in America. The report and the Forbes article about it raise some interesting questions about wealth and the obligation of philanthropy.

  6. One of the newest and most talked about ways to channel money to social change is the social impact bond. But what are we learning as the pay for success movement gains steam? Gordon Berlin from MRDC shares some insights from the New York City social impact bond and demonstrates how incredibly complicated this new financing tool really is. As he says, “The future of the Pay for Success movement rests on building on the lessons learned from the first efforts to implement these new and potentially transformative financing structures.” So we need to get beyond the hype and understand if this new financial vehicle really can work.

  7. And speaking of questioning hype, Jill Lepore, writing in The New Yorker, pens a scathing critique of Clayton Christensen’s Innovator’s Dilemma. She illuminates the danger of an omnipotent theory that allows no analysis or critique. She takes Christensen’s ubiquitous business theory of “disruptive innovation” to task, arguing, “Disruptive innovation is a theory about why businesses fail. It’s not more than that. It doesn’t explain change. It’s not a law of nature. It’s an artifact of history, an idea, forged in time; it’s the manufacture of a moment of upsetting and edgy uncertainty. Transfixed by change, it’s blind to continuity. It makes a very poor prophet.”

  8. Another writer peeling away the curtain on theory that holds no weight, Phil Buchanan admonishes consulting firm FSG and the Stanford Social Innovation Review for 1) not recognizing sooner that urging foundations to create individual institutional strategies around their unique positioning and activities is flawed, and 2) failing to acknowledge that many other thought leaders have been discussing that flawed strategy for years.

  9. As an introvert myself, I loved Frank Bruni’s piece in The New York Times urging politicians to take more time alone to reflect before barreling forward. As he puts it, “Some of the boldest strokes of lightning happen in isolation, where all the competing advice can be processed, where the meaningful strands come together and the debris falls away.” Amen!

  10. If you want a visual that will blow your mind, check out Ezra Klein and Susannah Locke’s 40 Maps that Explain Food in America. Access to food is a core social challenge, and these maps lay it all bare.

Photo Credit: Spirit-Fire


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Guest Post: Millennials and Boomers MUST Make Peace

By Nell Edgington



Millennials and BoomersNote: As I mentioned in an earlier post, I have several fantastic guest bloggers contributing to the blog this summer. First up is Robert Egger, founder of DC Central Kitchen and LA Kitchen, as well as the nonprofit sector advocacy group, CForward. He is a tireless advocate for the nonprofit sector, encouraging nonprofits to take their rightful seat at the table. He is always pushing us to think bigger and smarter about social change.

Here is Robert’s post:

 

For you old school Trekkies out there, you may remember the 1969 episode titled “Let That Be Your Last Battlefield” that featured the great Frank Gorshin as Commissioner Bele. The plot is built on a particularly brilliant metaphor of two alien beings – Bele and Loki – all but identical to the crew of the Enterprise, but who loathe each other because they represented a mirror image of the other.

This comes to mind because lately I’ve encountered quite a few fellow, older “leaders” who have a seemingly uniform concern about the Millenials, and their “we’re ready to run the show” attitude.

Similarly, I’ve also been speaking with lots of young “up-and-comers” who are all but ready to push the founder of their organization out the closest window, due to their inability to embrace new ideas or cede some of the decision making to those who sweat and toil on the front lines.

I totally get the friction, but I also know that our generations have lots of common ground to build upon. And for this blog, I’d like to suggest that we must avoid the inter-generational battle that many talking heads would stoke, so that we can take advantage of what will be, in my opinion, one of the greatest opportunities to change the world in centuries.

Yeah…I said centuries!

Think about it. Our generations represent two of the biggest, most educated, freest and richest generations in the history of the world. We’ll outlive our predecessors by decades, and remain healthy and productive much longer than any previous peoples. On top of that, at the push of a button, we can connect with tens of thousands of our peers; locally, nationally and internationally.

And as far-fetched as it might sound…from two divergent ends of the life spectrum, we actually are careening towards the same destination, and looking for many of the same things.

Together, we could be a social, political and economic juggernaut that could re-wire the world, explore new forms of capitalism, re-invigorate politics and reaffirm the incredible power of community.

Now…if you have already rolled your eyes, I can dig your skepticism. You have every right to laugh…but hang with me for a few more moments.

Every morning, 10,000 Baby Boomers wake up, walk into the bathroom, look in the mirror, and see a birthday boy or girl who just turned 67…and that will happen everyday for the next 20 years. You have to figure that a big ass hunk of them let out a looooong sigh, and wonder how they got so lost, tricked and hoodwinked into thinking money and stuff would buy them happiness. THEY are primed to join the ranks of those who would look for deeper meaning and purpose out of life. Heaven knows…they may even get humble, and seek to make amends by reaching to help younger men and women climb a different ladder.

Similarly, an even bigger number of Millenials do the same thing everyday, but they are turning 25…and they are looking in the mirror, and saying “I NEVER want to live my life the way they did.” Who knows…maybe some of them would like to learn how to avoid the pitfalls of possessions, and would value rich conversations with older leaders on how to re-examine the meaning of “rich”.

Do you get where I’m coming from? As weird as it sounds, more and more people everyday are waking up and wondering…is there a different way to live, be happy, judge success, value life, be a neighbor and make a difference?

Sure, one generation might be looking for redemption, while the other a different path, but we really are on the same road…we just haven’t realized it yet.

So…please…rather than buy into the whole “I hate you right back” shtick…realize that if our generations fight, we loose. If we unite, we can make things really right.

You may say I’m a dreamer…but I’m not the only one.

Photo Credit: Wikipedia


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Weaving Nonprofit Capacity Building Into Philanthropy: An Interview with Kathy Reich

By Nell Edgington



Kathy ReichIn today’s Social Velocity interview, I’m talking with Kathy Reich, Director of Organizational Effectiveness Grantmaking at the David and Lucile Packard Foundation. Kathy leads a cross-cutting program to help grantees around the world improve their strategy, leadership, and impact. Her team makes grants on a broad range of organizational development issues, from business planning to social media strategy to network effectiveness.

She also manages the Packard Foundation’s grantmaking to support the philanthropic sector. She has been with the Foundation since 2001, and previously held positions in the Organizational Effectiveness and Children, Families, and Communities programs. Prior to joining the Foundation, she worked in a non-profit, on Capitol Hill, and in state and local government in California.

You can read other interviews in the Social Velocity Interview Series here.

Nell: There is often a chicken or the egg scenario in the nonprofit sector where nonprofit leaders are hesitant to tell funders their real struggles and needs for fear of appearing unworthy of investment, and philanthropists are hesitant to stick their noses in the business of the nonprofits they fund, so organizational capacity needs are not openly discussed or addressed. How does the Packard Foundation uncover the organizational needs of your grantees and what would you advise other funders to do in order to have more open and transformative discussions with their grantees?

Kathy: Well, I try not to tell other people—funders or nonprofit leaders—what to do! But I can tell you what works for us at the Packard Foundation. First, we encourage each of our program officers to learn about the organizational strengths and challenges of their grantees, and to weave capacity building into grantmaking strategies. That’s a big part of the work of the Organizational Effectiveness team here at the Packard Foundation.

But we also have a separate Organizational Effectiveness (OE) program, staffed by its own program officers and with its own budget, to help grantee partners strengthen their fundamentals so they can focus on achieving their missions. Once a non-profit gets a grant from any Packard Foundation program, they’re also eligible to apply for an OE grant. We support a wide range of projects to promote individual and team leadership, organizational planning and development, and the development of healthy networks.

The application process is pretty simple and straightforward. It starts with a letter of inquiry where our grantee partners have to answer just a handful of questions: What are the objectives of your project and what do you expect to accomplish? How will this project support your organization in meeting its goals, and over the long term, enhancing its effectiveness? What special challenges or changes have caused your organization or network to focus on management and organizational issues at this time? How do you propose to use Foundation funds? Who from your organization’s staff and board has made the commitment to lead the project?

Here’s the most important part of our approach: We work very hard to be responsive to the needs of our partners. We never say, “We think you need a strategic plan, and that’s the only thing we’re going to fund.” We listen to the grantee’s assessment of their strengths and challenges, and serve in a coaching role to help them develop the OE project that best meets their needs.

Folks can read more about the Organizational Effectiveness program on our website, or on our wiki page, where we share resources, evaluations of the program, and other information.

Nell: Leadership development is something that is fairly prevalent in the for-profit sector – it’s understood that good leaders need coaching and support along the way – but leadership development is rarely supported in the nonprofit sector. Why do you think there is that disparity and what do we do to change it?

Kathy: I think you’re right — the lack of investment in leadership development and talent management in the nonprofit sector is a significant issue. We don’t have any shortage of talented, passionate people entering this sector. But I believe that we lose too many of them before they rise to senior-level leadership positions.

Some of that brain drain happens for financial reasons: people are staggering under the weight of educational debt, or they’re lured away by more lucrative career prospects in the private sector. But much of the loss of talent is preventable. People leave because they feel burnt out and undervalued. They can’t forge career pathways and can’t access meaningful professional development. They sometimes have lousy managers. Their jobs don’t offer opportunities for promotion, or sufficient work/life/family balance.

That is all stuff that the nonprofit sector can fix. As a sector, we can even tackle some of the thornier issues around compensation and educational debt. And funders can lead the way. But philanthropy is not doing that. Rusty Stahl at the Talent Philanthropy Project, a Packard Foundation grantee partner, points out that between 1992 and 2011 foundations spent, on average, about 1% of grant dollars on nonprofit talent development. I’m not sure why there’s been a lack of investment in leadership development in the nonprofit sector over time — especially when virtually everyone seems to agree that effective leadership is one of the keys to lasting social change.

I do see some glimmers of hope. In the OE program last year, 21 of the 86 grants we awarded focused on leadership development, including projects that invested in interventions like executive coaching, board development, succession planning, and executive transition at key grantee organizations. And a number of efforts are underway throughout the Foundation to support existing and/or emerging leaders in the issue areas where we work. Clearly, though, much more is needed.

Nell: There has been a concerted effort in the past year to overcome the “Overhead Myth,” the idea that nonprofits should spend as little as possible on “overhead” (administrative and fundraising) expenses. But there is still much work to do before that idea becomes mainstream in the philanthropic sector. How do we change funder (and nonprofit leader) thinking about overhead?

Kathy: I’m a fan of so many leaders and organizations who have spoken out on this issue, including Packard Foundation grantee partners like Guidestar, California Association of Nonprofits, and Grantmakers for Effective Organizations. They’ve done a great job of making a research-based case that arbitrary, low overhead rates don’t capture the true cost of delivering non-profit programs and services. I think that there are a couple of common-sense things that funders and nonprofit leaders can do to keep this debate at the forefront of people’s minds.

First, prepare real budgets. If the funder tells you, “You can only have $25,000 for this project,” that’s fine. That’s their budget. But submit a budget for the full cost of the project, including your personnel, facilities, and other costs of doing business. Let them see what their funding covers, and what it does not. Be honest if you do not know where the rest of the money will come from. At least it will spark a good conversation with your funder about the gap, and about your real costs. Most funders do not penalize honesty. If the funder does penalize honesty, their money probably is not worth your trouble.

Second, define what goes into your overhead rate, and stick with it. Many funders have a “rule” about acceptable overhead; 15 percent, 10 percent, even 5 percent. But most do not have a standard definition for what’s included in that rate. You should have one. Define it, calculate it, and then defend it.

Nell: Philanthropy is a very personal and values-driven thing, but at the same time we need to funnel more philanthropic money towards the most effective solutions. Do you think it’s possible to get more philanthropists to give based on results rather than interests and values, or can we somehow better combine the two drives?

Kathy: I think combining values and a focus on results is not just desirable — it’s essential. None of us goes into social change work with a completely cool, dispassionate lens. We go in with passion. We want to make a difference. We bring our whole selves to this work. That’s what makes it wonderful, and that’s why we stay in it.

At the same time, resources are limited — money, people, time — and we have to be sure they’re being well-spent. Ideally, we want to make sure those resources are being better-spent than they could be on other endeavors.

At the Packard Foundation, we try to craft a balance. Our mission—to improve the lives of children, families, and communities, and to restore and protect our planet—derives directly from the values and beliefs of our founders. The way we go about that work is deeply rooted in five core values, which also come from our founding family — integrity, respect for all people, belief in individual leadership, commitment to effectiveness, and the capacity to think big. But we also are committed to scientific rigor, evaluation, and most importantly, learning. We care not only about what grant funds accomplish, but also about how we do that grantmaking, engage with grantees and improve over time. You can read about some of what we’ve accomplished over the years on our new digital timeline.

Photo Credit: Packard Foundation


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How Do We Scale Social Change?

By Nell Edgington



This week I attended the 5th annual Social Impact Exchange Conference in New York City. It was an interesting gathering of funders, change makers and intermediaries all grappling with how to reach and sustain scaled social solutions.

“Scale” is such a challenging concept, and as I mentioned earlier, there are many entities struggling with exactly what scale means. According to Heather McLeod Grant (author of Forces for Good) whose keynote address kicked off the conference, “scale” is no longer about growing individual organizations or addressing individual issues, but rather about building movements and networks.

The idea of a networked approach to social change is not a new one (see the great Stanford Social Innovation Review article from 2008 by Jane Wei-Skillern and Sonia Marciano on this approach), but Heather underlined the importance of a more integrated and aligned approach to creating social change. I would have liked to see this idea taken further, perhaps with some of the Transformative Scale discussion that is happening elsewhere, included in this discussion.

There were some real highlights of the conference for me. First was the luncheon panel on the Black Male Achievement Movement and President Obama’s My Brother’s Keeper initiative. Tonya Allen of The Skillman Foundation was a hard hitting moderator of Shawn Dove, from the Campaign for Black Male Achievement, William Snipes from Pipeline Crisis/Winning Strategies, and Andrew Wolk from Root Cause.

The group had a fascinating conversation about the movement to address “a whole generation of young men being pushed to the side.” As Snipes so eloquently put it, “This is a problem about who we are as a society, whether or not we are going to survive. The road we are on is not sustainable. We cannot continue to incarcerate one third of a community. This is an impractical way to run a society.”

The panel described and debated the complexity of addressing a huge systemic problem and how they have launched a movement to do just that. It was a candid and thought-provoking exchange.

Jacob HaroldAnother highlight was GuideStar CEO Jacob Harold’s talk on their exciting efforts to transform the nonprofit information landscape (Jacob is describing this landscape in the picture at the left).

GuideStar’s goal is to address the “two elephants in the philanthropic room:” 1) some nonprofits are better than others (they create more impact per dollar spent), and 2) some donors are better than others (they create more impact per dollar given).

To address these “elephants,” GuideStar is collecting and analyzing deeper information about nonprofits and then distributing that information so that donors make better investments. (More on this next month when I interview Jacob as part of the Social Velocity Interview Series.)

The other real highlight of the conference for me was the keynote address on financial sustainability from Antony Bugg-Levine, head of the Nonprofit Finance Fund. Antony defined financial sustainability as “Repeatable and reliable revenue that exceeds ongoing operating costs, coupled with the ability to fund periodic investment in adaptation and growth.” In other words, a financially sustainable nonprofit brings enough reliable revenue in the door and can, when needed, raise capital for change and growth.

And that capital piece is often overlooked by nonprofits and funders. Antony described 5 types of capital helpful to nonprofits:Antony Bugg-Levin

  1. Change Capital to position an organization for growth.
  2. Working Capital to handle fluctuations in cash flow.
  3. Recovery Capital to address shocks to an organization (natural disaster, fire, etc.)
  4. Risk & Opportunity Capital to develop a new program or different approach.
  5. Endowments which can provide some unrestricted money, but should not be considered reliable revenue.

Antony also described 5 things that funders do and 5 things that nonprofits do to derail sustainable growth (pictured at right.)

I also enjoyed participating in the “Business Models for Sustainability at Scale” panel with my colleagues Dana O’Donovan from Monitor Institute, Megan Shackleton from the Einhorn Family Trust, Heidi Shultz from the Helmsley Charitable Trust and Craig Reigel from the Nonprofit Finance Fund. We had a great discussion with very thoughtful and engaging audience questions about how to create sustainable financial models and how philanthropy can help move that forward.

The Social Impact Exchange assembled a smart, talented group of people to grapple with how we fund and grow solutions to the wicked problems we face. It was a thought-provoking couple of days.

 

 

 


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Why Nonprofit Donors and Boards Must Get Over Overhead [Video]

By Nell Edgington



As I mentioned earlier, I am building a video library of topics that can spur discussion among your board and donors. So, to add to that library, today I’m talking about why we need to get over overhead.

Traditional wisdom is that nonprofits should keep “overhead” (administrative, fundraising, systems, technology, staffing) costs as low as possible. This is a really destructive idea, and we need to move beyond it. But we will only get there if nonprofit leaders across the country start having that conversation with their board members and donors. Because if we can move beyond overhead, we will have a much stronger, more effective nonprofit sector.

The transcript of the video is also below. And you can view all of the Social Velocity videos on the Social Velocity YouTube channel.

To learn more about getting over overhead and raising capacity building dollars for your nonprofit, download the Launch a Capacity Capital Campaign Guide.

Hi I’m Nell Edgington from Social Velocity. Today I want to talk about why nonprofit board members and donors need to get over overhead.

So overhead is the idea that nonprofit organizations can separate what they spend on programs and services, the mission work of the organization, versus what they spend on infrasturucture, staffing, systems, fundraising function, administrative costs. All of those things in the second bucket are typically considered “overhead.”

Now overhead, I think, is a very meaningless distinction in the nonprofit sector, and we need to move beyond it.

It’s meaningless because you can’t have exceptional programs and services if you don’t have solid staff behind them, if you don’t have evaluation systems to figure out if you are making a difference, if you don’t have a fundraising function to bring the revenue in the door to make those programs and services operate, if you don’t have the infrastructure, the technology, all of the things that you need to make those programs and services run well.

We also need to get over overhead because if you think in terms of overhead as a nonprofit organization you will not seek, nor will you attract, the funding to invest in infrastructure, the funding that so many nonprofit organizations desperately need, the funding for capacity building, for strong staff, for great technology and systems, for evaluation programs, etc. If you think in terms of overhead you are going to keep those costs as low as possible and you won’t try to bring the money in the door to support your capacity as an organization.

Finally, we need to get over overhead because if as a nonprofit organization we are measuring our work in terms of how much we spend on overhead and keeping that as low as possible, we are not measuring our work based on whether we are actually making a difference, whether we are actually creating social change. And we need to move to a place where we are evaluating nonprofit organizations based on their results, based on the social change and the outcomes that they are achieving, not how they spend their dollars.

So those are the reasons I think overhead is very destructive in the nonprofit sector, and I hope that you will talk with your board and donors about how we need to get over overhead. Good luck!


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Is It Time to Trash Your Fundraising Plan?

By Nell Edgington



fundraising planOne of the things I love about summer – aside from the obvious loves like swimming, family trips and watermelon – is that the slower pace allows time to take a step back and find a better way forward. For nonprofit leaders, summer is a great time to take a hard look at how you bring money in the door and figure out a more sustainable way to do so.

It’s time to trash your ineffective fundraising plan.

A Financing Plan, unlike a traditional fundraising plan, is an integrated, thoughtful, and strategic way to help a nonprofit raise enough money to achieve its programmatic and organizational goals. Instead of asking the question:

“How much can we accomplish with what we can raise?”

you are asking the question:

“How much should we raise to accomplish our goals?”

The Build a Nonprofit Financing Plan Guide walks you, step-by-step, through building a financing plan for your nonprofit. It shows you how to:

  • Align Money, Mission and Competence
  • Create Revenue Goals
  • Create a Capital Goal
  • Create a Fundraising Infrastructure Goal
  • Operationalize the Plan
  • Monitor the Plan

This guide gives you the knowledge and the step-by-step guidance to get more effective at bringing money in the door.

Here’s an excerpt from the Build a Nonprofit Financing Plan Guide:

 

The Financing Plan Framework

Your final financing plan will be made up of goals, objectives and an operational plan. Here’s how the financing plan framework breaks down.

Goals

Your final financing plan will have approximately 5 broad goals. These goals come in three types: revenue goals, a capital goal, and a financing infrastructure goal. Below is what differentiates these three types of goals. And don’t worry if this is still a little muddy, I will go into more detail and give you some examples a little later in the guide.

1. Revenue Goals
Remember, revenue is the day-to-day money you need to meet the expenses of your strategic plan. You will have 1 revenue goal for each revenue source that is appropriate to your organization:

  • Private dollars (foundations, corporations, individuals)
  • Public dollars (government grants)
  • Earned revenue (sales of goods or services)

Your revenue goals will make up 3 of the 5 goals of your final financing plan.

2. Capital Goal
Remember, capital is the one-time organization-building money you need to fund special or infrastructure-related purchases within your strategic plan. So it might be the money you need for a program evaluation, or a new data-gathering system, a new database, etc. If you require capital investments to make your strategic plan a reality, one of the goals of your financing plan will be a capital goal.

3. Financing Infrastructure Goal
This goal is not a money goal, but rather an activity goal. If you want to significantly grow the revenue that flows to your nonprofit, you will have to make some improvements to the financing infrastructure of your organization. This means you might want to add additional development staff, buy a new donor database, upgrade your website, create marketing materials, etc. One of the goals of your financing plan should focus on what improvements you will make to the internal systems, staffing and technology you use to bring money in the door.

Objectives

Each of these goals will be broken down into objectives (or pieces) to make them achievable. For example, you might have a revenue goal that describes how much private money you will raise. You would then break that total private revenue goal into the individual donor, corporate donor and foundation grant objectives necessary to achieve that goal.

Operational Plan

Once you establish your goals and objectives, you will break each objective into the activities, deliverables, people responsible, and due dates. This becomes your very tactical operational plan with which you will execute on and monitor the financing plan. It ensures that the goals and objectives actually come to fruition.

So let’s get started creating your financing plan…

To continue reading and building your nonprofit’s financing plan, download the Build a Nonprofit Financing Plan Guide now.

Photo Credit: Steven Depolo


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Tuesday, June 10th, 2014 Innovators No Comments

Should Nonprofit Consultants Be Thought Leaders?

By Nell Edgington



nonprofitNote: Fellow nonprofit consultant Cindy Gibson and I were asked to write an opinion piece for Alliance Magazine this month answering the question, “Should Consultants Be Thought Leaders?” There is no doubt that there is a preponderance of consultants in the social sector, some who help move the sector forward, and some who don’t. Cindy and I offer some thoughts about how to distinguish what has value and what does not. Text from the piece is below, and you can also read the piece in the June issue of Alliance.

From strategic and business planning to marketing and fundraising, there seems to be no shortage of consultants ready to help nonprofits meet all kinds of needs. But should they be thought leaders too? Because they are removed from the day-to-day experience of the average non-profit or foundation and have a breadth of perspective that comes from working with different types of organization, consultants can provide important insights to the larger sector.

But when is that thought leadership adding value to the sector and when is it just a means for hawking a consultant’s wares?

At a recent conference, a consulting firm president suggested his shop’s model was the only way to achieve social change, which caused some participants to shift in their seats. As one participant put it, ‘It’s because they’re consultants. If there’s only one solution and that’s the one they offer consulting on, that’s the approach they promote.’ There is, after all, a difference between introducing ideas to spark new thinking and marketing particular frameworks to build a consultant’s brand. At the end of the day, it all comes down to value.

Is a consultant adding value by introducing new approaches, raising hard questions, highlighting important trends, or suggesting necessary changes to systems and structure, the hallmarks of thought leadership? Or are they using ideas to package what they’re selling? Here are some key questions that might help us to make that distinction:

  1. Is what the consultant is presenting really new or just something old with new packaging?
    We’ve all fallen victim to shiny object syndrome. The next new thing can seem so appealing that it’s easy to believe the hype, but it isn’t necessarily applicable for many organizations. Before embracing a new approach, it’s important to determine whether it actually applies to the specific situation at hand.

  2. Has the consultant’s new framework been tested?
    If the new idea is really worthy of broad adoption, there should be evidence of its value. Consultants need to be transparent about whether they have this evidence and, if so, how it was collected. Was it a randomly sampled population or a few focus groups of satisfied clients? Consultants, like other thought leaders, sometimes ignore the fact that the big ideas they’ve envisioned may not work on the ground.

  3. Does what the consultant is proposing embrace the complexity of the situation?
    Social challenges are inherently difficult to resolve because change takes time and requires grappling with the messiness of ‘wicked problems’, which don’t usually respond to one best practice or even a set of discrete interventions. Wicked problems don’t come from somewhere; they come from somewheres. And so do the solutions. True thought leadership emerges from understanding and integrating a problem’s inherent complexity into a potential resolution.

  4. Is the consultant willing to engage in thoughtful debate about their ideas with those who may disagree?
    Thought leaders who are genuinely interested in moving a field invite feedback, including criticism, because they know open and honest discussion can strengthen the original idea. They’re also eager to make their ideas broadly accessible so that they become part of the larger field.

  5. Are influential people hailing the new idea as definitive when there may be little hard evidence to suggest that it is?
    While it’s nice to have the endorsement of influential people, this can sometimes be a shield against real critique. It can also suggest an echo chamber at work, where the hype around the idea is bigger than the actual value of the idea itself.

There’s no question that it’s difficult, if not impossible, to separate good marketing – which every consultant must do to survive financially – from real thought leadership. We think that consultants can and should have opportunities to stand away from their business and share what they’re learning and observing. Like other thought leaders, they can lift us out of our individual circumstances and move us to see a bigger picture.

That isn’t always easy, especially when consultants’ thought leadership is controversial. But good thinking that has the potential to transform minds and entire fields, even when it may be inimical to a brand, can sometimes lead to impact that may not be easily achieved by focusing only on clients’ individual needs. The key is knowing when and where that kind of thought leadership will add value.

Photo Credit: Eugene Atget


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