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Philanthropy in Troubled Times: Blogging the 2018 GEO Conference

Next week, as part of the 2018 Grantmakers for Effective Organizations (GEO) Conference, I’m excited to host some exceptional guest bloggers here on the blog. GEO’s biennial conference is where the most engaged philanthropists gather to talk about how they can more effectively support nonprofit leaders. GEO has asked me to host a blog series about the conference this year (as I did at the 2016 GEO Conference), and I was more than happy to oblige.

I’m particularly interested this year to see how the GEO Conference plays out amid these troubling times. Certainly the world is a very different place than it was at GEO’s last conference, and this gathering of the most engaged and thoughtful philanthropists could be, I hope, an opportunity for philanthropy to find a way to lead in a time that is arguably dismantling the progressive causes many of these philanthropists have been championing for decades. Indeed, leading philanthropic leaders like Grant Oliphant of the Heinz Endowments has argued that philanthropy “can’t win the battle of ideas by hiding,” and Darren Walker of the Ford Foundation has described his hope that philanthropy will “realize the urgency of now.”

The GEO Conference, held this year from Monday, April 30  to Wednesday, May 2 in San Francisco, is a first-in-class display of philanthropists thinking long and hard about their role in social change. Particularly now, when there is a real opportunity for philanthropy to stand up and have a stronger voice about where our country is headed, this conference provides a real opportunity. I’m looking forward to some open, honest and challenging conversations about how philanthropy can and should do more to lead in these challenging times.

I am particularly excited about several of the planned sessions, including “Supporting Advocacy during Turbulent Times,” “Strengthening Nonprofits as a Social Justice Strategy,” “Philanthropy’s Role in Closing the Nonprofit Racial Leadership Gap,” and “Power and the Future of Philanthropy.”

And starting next Tuesday, May 1st you’ll be hearing from this great group of guest bloggers:

Kathy Reich, Director of BUILD at the Ford Foundation  
Kathy guides Ford’’s efforts to implement sector-leading approaches to support the vitality and effectiveness of institutions and networks that serve as pillars of broader social movements. Before joining Ford, Kathy worked for 15 years at the David and Lucile Packard Foundation, most recently as organizational effectiveness and philanthropy director. Prior to that, she was policy director at the Social Policy Action Network, served as a legislative assistant on Capitol Hill, and worked for state and local elected officials in California. Kathy currently serves on the boards of Grantmakers for Effective Organizations and the Peninsula Jewish Community Center, and co-chairs the Fund for Shared Insight. She was named a Schusterman Fellow in 2016. She has also been featured on the Social Velocity blog several times in the past, as an interviewee twice (here and here) and a guest blogger.

 

Sean Thomas-Breitfeld, Co-Director of the Building Movement Project
Prior to joining BMP, Sean spent a decade working in various roles at the Center for Community Change, developing training programs for grassroots leaders, coordinating online and grassroots advocacy efforts, and lobbying on a range of issues, including immigration reform, transportation equity and anti-poverty programs. Before joining the Center, Sean worked as a Policy Analyst at UnidosUS (formerly the National Council of La Raza), where he focused on employment and income security issues. Sean received a Master’s Degree in Public Administration from NYU’s Wagner School, where he now serves as an Adjunct Assistant Professor of Public Service. You can read my past interview with Sean here.

 

Pia Infante, Trustee and Co-Executive Director of The Whitman Institute
Pia speaks and teaches on radically embodied leadership and trust based practice in many settings including Harvard Kennedy School: Center for Public Leadership, Ashoka Future Forum, Opportunity Collaboration, Net Impact, Council on Foundations, Grantmakers for Effective Organizations, International Human Rights Funders Group, and the Skoll World Forum. She also proudly serves as the Board Chair for the Center for Media Justice and is on faculty for the M.A. in Leadership Sustainability at the University of Vermont’s Rubenstein School of Environment and Natural Resources as well as Thousand Currents Academy. She is an I.C.F. certified executive leadership coach and holds an M.A. in Education from the New School for Social Research.

 

After the conference is over I’ll do a wrap-up post that will bring the blog series to a close.  If you plan to be at the GEO Conference, please let me know, I’d love to see you there!

Photo Credits: GEO, Ford Foundation, Building Movement Project, The Whitman Institute

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Will There Be a #MeToo Moment for the Nonprofit Sector?

In light of the recent #MeToo movement raising awareness about sexual harassment and gender disparity in Hollywood and other industries, the Chronicle of Philanthropy/AFP study released earlier this month showed that 25% of nonprofit fundraisers have experienced sexual harassment in their job, most often from donors.

Perhaps this will be the impetus for the nonprofit and philanthropic sectors to uncover and reckon with gender disparity.

And I wonder if this reckoning will also include a recognition that the nonprofit sector itself suffers from a larger gender-based disparity between those who have money and those who seek that money for their cause.

The nonprofit sector is predominantly female — 70% of workers in the nonprofit sector are women. And the leadership of the private sector (from which much of the money to fund nonprofits comes) is predominantly male — 96% of the CEOs in the S&P 500 are male, and 80% of all C-Suite roles belong to men.

Kristen Joiner pointed out this discrepancy a couple of years ago in a Stanford Social Innovation Review article, arguing that the gender power imbalance between those who have money to invest in nonprofit solutions and those running those solutions is based on the larger gender disparity of our society:

Maybe it’s just a coincidence that leaders of startups in the male-dominated sector get financial support for their ability to develop and execute original ideas, while the leaders of start-ups in the female-dominated sector get financial support for their ability to manage someone else’s idea well. Maybe. But I believe it’s likely that the power dynamics at play between the nonprofit and private sectors reflect the gender dynamics of our larger society.

The nonprofit sector is mainly run by women, the private sector is mainly run by men. Is it possible that the power imbalance we talk about between nonprofits and funders has its roots in good old fashioned sexism?  And if we acknowledge and discuss that, could we at long last perhaps find a way through it?

If we were to rectify the gender disparities at play in the nonprofit sector, it might look like this:

More Nonprofit Advocacy
Regulators, board members and funders ask nonprofit leaders to keep their political voices silent, sometimes even on issues that directly impact their ability to achieve their mission. While businesses can spend millions on lobbying and support of political candidates, nonprofit political action is much more restrictive. Nonprofit leaders need to be allowed to raise their voices, whenever and wherever it will help their mission.

More Access to Unrestricted Money
Money given with strings attached is a signal that the funder doesn’t fully trust the skills and abilities of those he is giving the money. More unrestricted dollars means nonprofit leaders are freed up to do whatever they think it takes to achieve their organization’s goals.

More Support of the Fundraising Function
Robust marketing and sales operations are a given in the business world. But “fundraising” (the nonprofit equivalent of “sales”) remains a dirty word. Nonprofit leaders need to be emboldened to build robust, sophisticated fundraising functions, and they need sufficient financial investment to be able to do that.

Rejection of the Overhead Distinction
Nonprofit leaders are often encouraged to spend only a small amount of money on infrastructure, administration and fundraising (overhead expenses). But overhead is a meaningless distinction made in the nonprofit sector, and one that is not made in the for-profit sector. Nonprofit leaders need to remove the overhead shackles so that they can create strong, effective, well-supported organizations.

Development of Strong Leaders
Business leaders often invest in professional development, training, and coaching, but a nonprofit leader must figure it all out on her own. We need to recognize that strong nonprofit leaders are every bit as important and necessary as strong for-profit leaders, and we should invest in nonprofit leadership development accordingly.

I say Time’s Up for the debilitating restrictions placed on nonprofit leaders around securing unrestricted money; investing in organizations, fundraising and leadership; and pursuing political activity. We must recognize and rectify practices born from a history of gender disparity if we want to truly benefit from the solutions nonprofit leaders have to offer.

Photo Credit: numb3r

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Nonprofit Scarcity Thinking Will Get You Nowhere

Scarcity thinking is incredibly pervasive in the nonprofit sector. And it makes sense that it would be. Nonprofit leaders have been told for so long that they must scrape by, are not worthy of real investment, and deserve only the leftovers. No wonder the belief that resources are scarce is baked into their DNA.

This scarcity thinking is the starvation cycle in which nonprofit leaders often exist – we can’t attract enough money so we skimp on staff and systems, becoming less effective, forcing us to serve fewer clients, resulting in less social change. It is a vicious downward cycle. And one that funders certainly play a key role in as well.

But when a nonprofit leader chooses instead to come from an abundance mindset – the idea that there are an abundance of resources and you need only to get crystal clear about what you want to achieve and those resources will come to you – it is amazing to see what she can accomplish.

Most recently I saw this with a national membership organization that had spent years either just barely scraping by or having to cut staff and budgets because they simply could not attract enough support. But once they got crystal clear on their goals for the future and what it was going to take to make those goals happen, they attracted some significant new and long-term investments from funders.

Moving from the pervasive scarcity mindset to the incredibly powerful abundance mindset can be a game changer.

And we can start by flipping some of the most common conversations happening each day in nonprofit boardrooms around the country, crossing out the typical scarcity mindset and fully embracing an abundance mindset, like this:

Scarcity Mindset: “How much money are we able to raise?
Abundance Mindset: “How much money will it take to accomplish our goals?”

Rather than thinking of money as an extremely scarce resource, figure out what social change your organization truly wants to accomplish. Chart your future course, figure out what it will take (in terms of staff, systems, technology, dollars) and then use that strategic plan to engage donors and others to invest in bigger ways. The excitement you generate from board, staff, and funders when you think big and long-term will translate into the money you need to accomplish your future goals. This is the cornerstone of moving from a fundraising approach to a financing approach.

Scarcity Mindset: “Let’s not add fundraising staff until we have the money”
Abundance Mindset: “Let’s fully invest in our fundraising infrastructure”

So many nonprofit leaders are unwilling to take the risk of hiring a top-notch fundraiser (or securing the best donor database, or revamping their online presence, or investing in other critical fundraising infrastructure) because they don’t have the money. But without making improvements to how you raise money, you will never raise more money. So figure out what it will take to upgrade your fundraising infrastructure and how much those improvements will cost and then convince a couple of close donors to provide the capacity capital necessary to get you there. And keep in mind, the right improvements to your fundraising infrastructure will pay for themselves (many times over) after 12-18 months, so it is really just a short term investment you need to take your financial model to the next level.

Scarcity: “We can only breakeven”
Abundance: “We will create a healthy reserve fund”

It amazes me that there are still nonprofit leaders who believe (and funders who insist) that the ideal nonprofit income statement show only a slight net income. On the contrary, a healthy, effective, and sustainable nonprofit organization should have a robust (at least 3-6 months of operating) reserve fund. This reserve allows a nonprofit leader to feel secure about cash flow, invest in program development, and engage in other normal and necessary activities as a successfully functioning organization. And donors tend to be more attracted to organizations that demonstrate sustainability (like having a reserve fund), than organizations that can barely breakeven.

 Scarcity: “There just aren’t enough hours in the day to get the work done”
Abundance: “Let’s engage more people and organizations in our work.”

Because of their perception of resource constraints, often nonprofit leaders isolate themselves and their organizations from others with similar social change goals – those entities who may be competing with them for limited funds. But instead of thinking that you must go it alone, break down your walls and connect with other people, organizations and networks that have similar visions for the future. Figure out how you can combine efforts for much larger gains. Because a networked nonprofit is far better positioned to create sustainable social change than an isolated, solitary organization is.

Scarcity: “Given the difficult political climate, we must limit our goals.”
Abundance: “How can we seize the opportunity of this challenging political climate to engage new people in new ways?”

Since the 2016 election and the resulting and ongoing blows to progressive social change agendas, I have seen some nonprofit leaders bury their heads in the sand, figuring they will wait out these punishing political winds until something better comes along. But if you have a compelling social change vision, there is an abundance of outrage and activity that you can tap into now — in fact some argue that nonprofit advocacy is enjoying a rebirth. And while the federal government may be outside your current purview, there is opportunity for policy change happening at the state and local levels. In fact, research suggests that a state-by-state strategy is often the way real social change happens in this country anyway. So stop seeing what isn’t possible and instead embrace what may be.

Certainly there are real challenges facing every nonprofit leader. But you do have agency. You can choose to see the limits in front of you, or the opportunities. And in seeing the opportunities, and the abundance, you can accomplish so much more.

Photo Credit: Pixabay

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The Danger of the Nonprofit Savior Complex

You know the Nonprofit Savior Complex, I know you do. It’s when a nonprofit leader begins to believe that she (and only she) cares enough, knows enough, or is enough to fix the massive problem she cares so deeply about.

The positive side to the Savior Complex is it compels people who see an injustice in the world to stand up and do something about it. It is their very belief that they can make a difference that compels them to act, and often to make positive social change. Indeed, it is this altruistic entrepreneurial spirit that drives the social change sector. And it can be a beautiful thing.

But when it is taken too far, the Savior Complex can become dangerous.

Instead of reaching out to other leaders, building networks, being open and brutally honest with funders, demanding more from their board, the Nonprofit Savior instead chooses to go it alone. I’ve seen it in my clients, and I’ve seen it in myself.

It’s the program director who refuses to take a vacation because she thinks her program will fall apart in her absence. It’s the executive director who rather than demand real engagement from her board, just soldiers on by herself. It’s the activist who marches every weekend — to the detriment of her health, her family, her job — because she thinks no one else will.

The reality is that the complex problems we face cannot be solved by a single savior. Let’s face it, Superman doesn’t exist. So as a true leader you have to create the space — in your own organization, in your own community, in your own social issue area — for others to step up and lead alongside you.

Let me be clear. I am not arguing that nonprofit leaders should sit back and let nature take its course, particularly when progressive social issues are seemingly under constant attack.

Rather, I am arguing that you must begin seeing yourself and your organization as part of a larger complex of committed, capable, caring, effective people and organizations. You must move from creating individual action that will only get you so far, to creating coordinated network action.

To move away from the Savior Complex you have to reach out to others, to form partnerships, to build networks. So start by recognizing that others beyond you care just as much, are just as capable (maybe in different ways), and are worthy of your time to figure out how you can work together effectively. There is tremendous power in numbers.

So to overcome the Savior Complex, you can:

You might be surprised as the leaders (within your organization, within your issue area, within your community) step up in the space you have finally left open.

The Savior Complex is ultimately about an overactive ego. Someone who suffers from the Savior Complex fundamentally (but perhaps unconsciously) believes that no one can or will do it as well as she does. But the fact is that there are others out there. And to truly accelerate change we need more people working together within and across organizations, rather than working themselves to the bone amid an isolated, competitive, singular view of the world.

Photo Credit: Tom Bullock

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Creating Honest Conversations Between Nonprofits and Funders: An Interview With Eric Weinheimer

Eric WeinheimerIn today’s Social Velocity blog interview, I’m talking with Eric Weinheimer, President and CEO of Forefront, the only regional association that represents grantmakers, nonprofits, advisors, and social entrepreneurs. With 1,100 members in Illinois, Forefront provides education, advocacy, and research, and mobilizes its members around issues that are important to the nonprofit sector.

Prior to his current role, Eric was the CEO of The Cara Program, a nonprofit that provides comprehensive training, job placement, and support services to individuals who are homeless and struggling in poverty. Eric was selected as a member of the Emerging Leaders Program for the Chicago Council on Global Affairs and as a Chicago Community Trust Fellow. He was also appointed by Illinois Governor Pat Quinn to the Social Innovation, Entrepreneurship, and Enterprise Task Force. He serves on the Advisory Board for the Social Enterprise Initiative at The University of Chicago Booth School of Business and on the Board of Directors for the Oak Park-River Forest Community Foundation.

Nell: Forefront is the only statewide association that has both nonprofit and funder members. How does Forefront deal with the power dynamic that is so often present between grantors and grantees?

Eric: Forefront talks explicitly about the power dynamic in much of our programming and classes, specifically our annual Grantmakers Institute for new program officers. We have candid conversations with these grantmakers and present actual case studies to give them a better understanding of their power and unique position. We also discuss how others perceive them and their roles, and how those perceptions can impact their effectiveness.

Forefront also has a non-solicitation policy that prevents nonprofits and grantmakers from discussing specific requests or proposals with each other when they gather at Forefront. The spirit of that policy also extends to how we bring grantmakers and nonprofits together. When nonprofits and grantmakers meet at Forefront, there is an explicit goal or purpose related to an issue in their fields or in the sector. While the power dynamic still exists, putting the focus on a larger purpose rather than on money helps our members build trust, leading to more genuine and balanced relationships. We also make sure that grantmakers and nonprofits co-chair some of our affinity groups to ensure balanced perspectives.

Nell: One of Forefront’s biggest initiatives is Real Talk about Real Costs, a series of funder and nonprofit convenings (the first in the nation) to talk about funding the full costs of nonprofit organizations. What have you learned through this series both about how to encourage more effective conversations between nonprofits and funders and about how to better support strong nonprofit organizations?

Eric: In the conversation on Real Costs we’ve learned that it’s not about creating another resource or a toolkit. Its not about what grantmakers or nonprofits should or should not do. Rather, it’s about starting an honest conversation. There are so many grantmakers and nonprofits that haven’t had the opportunity to dig in and engage with this work, either independently or with feedback from their counterparts. Our value-add is to catalyze these conversations. Forefront’s role is to create the space for honest dialogue, mobilize our members around this issue, promote best practices, and curate and share the newest research. It’s a slow and gradual process, but it ultimately leads to change in awareness, understanding and behavior.

Nell: How far do you think the national social sector has come in terms of more effectively supporting strong nonprofits and building more transparent and effective funder/nonprofit relationships?

Eric: We’ve certainly made some progress in the last 15 years, but we have a long way to go. It’s encouraging to see more funders express interest in general operating support and capacity building. However, too often, funders’ still feel the need to be in control and prescribe certain solutions rather than engage communities for their feedback and ideas.

Likewise, nonprofits have become more transparent, but they are still too reluctant to admit to challenges or failures because of possible consequences to their funding. Funders could model this practice for the nonprofits much more than they currently do. Funder transparency is only in its infancy.

Nell: Your national counterpart, Independent Sector — a national membership association of nonprofits and funders — had a recent change in leadership with Dan Cardinali taking the helm. What would you like to see Independent Sector doing to move this work forward on the national stage?

Eric: Dan is terrific – smart, experienced, strategic and passionate. He will do a great job. Under his leadership, Independent Sector (IS) has a real opportunity to be the connective tissue for our sector and elevate the good work that is happening around the country. I would encourage Dan to focus on a few of the critical issues facing our sector, both internal and external. Whether it be real costs, transparency, the power dynamic, or policy and advocacy, IS can highlight and amplify where real progress is being achieved and help to transport those examples to other locations. Once new practices take hold in certain geographic locations, other regions will follow suit. Organizations are eager for strong leadership that informs, inspires and mobilizes them to action.

Photo Credit: Forefront

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Planning for Nonprofit Success: An Interview With David Grant

In this month’s Social Velocity interview, I’m talking with David Grant.

David is the former President and CEO of the Geraldine R. Dodge Foundation and past chair of the Council of New Jersey Grantmakers. He now consults nationally with nonprofits, foundations, and schools and is the author of The Social Profit Handbook: The Essential Guide to Setting Goals, Assessing Outcomes, and Achieving Success for Mission-Driven Organizations.

He is also a member of the Leap Ambassadors, a 100+ community of nonprofit thought leaders, progressive funders, policy makers, and instigators who believe “performance matters.”

You can read other interviews in the Social Velocity interview series here.

Nell: Your book, The Social Profit Handbook, is about assessment, but your central chapter is titled “Mission Time.” Is this akin to the time spent on research and development in for-profit companies?

David: Yes, it is. I would compare it to any time set aside for strategic thinking and reflection on what we are learning from experience. I invoke Steven Covey’s famous Urgent/Important matrix and equate mission time with “Quadrant II,” where we deal with important matters when they are not urgent.

Effective nonprofit leaders often think strategically. The case I make for mission time in my book is that this should be an ongoing collective exercise. I believe there should be more time set aside for staffs and boards, singly and together, to be much more specific about what success will look like for their organization, so they can plan backwards from that shared vision.

I think it’s the most important practice nonprofit organizations can adopt if they are serious about getting better at what they do – which is creating social profit. At its best, I think mission time also includes the voices and perspectives of the people being served by a nonprofit organization. Can you imagine a company conducting R&D without checking in with clients and customers?

Nell: “Planning backwards” is another phrase you use frequently in the book. Is that what you are saying should happen during mission time? And if this practice is as important as R&D is in the for-profit sector, why don’t we see more of it in the social sector?

David: Those are great questions. Let me start with “planning backwards.” I see this phrase as critical to the practice of formative assessment – the kind of assessment whose purpose is to improve performance, not audit it or judge it. I think too many of us view assessment as summative; we think it comes at the end and that somebody gives us a grade. The central argument of my book is that when an organization takes assessment into its own hands, embraces its formative purpose, makes time for it and gets good at planning backwards, they not only improve their workplace culture, they go much further towards fulfilling their mission. In short, they create more social profit.

But here’s where the challenges of assessing and measuring success come in. If you describe what matters most to you – things like increasing a young person’s sense of hope and confidence; improving relationships and building trust between former adversaries; inducing an aesthetic response through great art; inspiring a long-term commitment to equity or a healthy environmental – people say, “You can’t measure that.”

What they are really saying is, “there is no standard unit of measure that applies to that.” Ok, fair enough – that’s why we need to get good at qualitative assessment. We need to be able to respond with confidence, “If you can describe it, you can measure it.” That’s why I spend so much time in my book talking about qualitative assessment rubrics as effective tools for this process. The rubric invites us to describe as specifically as possible along a spectrum what we mean by success, in relation to our criteria for success. It is as if we were creating the test we want to give ourselves a year from now, and we can plan backwards from how we want to score on that test. You can see how that can’t happen without mission time.

Your other question about why we don’t see more mission time, more planning backwards, and more rubrics in the nonprofit sector is one I think about a lot. I don’t think there is a single answer. Part of it is mindset – we tend to focus on programs and direct mission-based actions in the world instead of on building strong organizations and internal practices. Part of it is resources – we are stretched so thin that it is hard to get out of a mode of urgency. Part of it is our habits – we are used to certain kinds of meetings that often don’t make enough room for group education, reflection, and decision-making. Part of it is funding patterns – donors prefer program support to general operating or infrastructure support.

Ironically, I believe mission time and planning backwards make their own cases. But we have to take the time first in order for the case to be made.

Nell: In your previous role as CEO of the Geraldine R. Dodge Foundation, you launched a capacity building initiative for your grantees. What results did you see from doing so and what do you think holds other foundations back from doing something similar?

David: It’s interesting you should ask that this week, because even though I’ve been gone from the Dodge Foundation for seven years, I just saw something I would attribute, at least in part, to those capacity building efforts. I was working with a national gathering of arts service organizations, and we were examining several of their strategic plans to see how they addressed the concept of sustainability. The first two defined it narrowly as financial stability. But then a New Jersey-based organization, a long-time Dodge grantee, defined it holistically, citing elements of governance, human resources, assessment systems, and ongoing capacity building as critical to sustainability, in addition to maintaining financial vitality. I don’t think it was a coincidence that this organization, alone among this national group, had just completed a successful, million dollar capital campaign.

I remember when I was still reading proposals that the groups that participated in our capacity building workshops were much clearer about what they were trying to do, more straightforward about the challenges they faced, and more cognizant of their own needs as a vehicle that carried the pursuit of their mission over time.

What holds foundations back from capacity building? Well, I imagine some might feel it is too indirect as a social investment; others might worry this kind of support carries with it a promise of ongoing funding. All I can say is that I think Dodge got more bang for our bucks in this part of our funding portfolio than in any other.

Nell: One of the projects you are working on is Artists Thrive, which is about developing assessment tools for the arts. What are the goals of this project and how could it be a model for other social issue areas?

David: The Artists Thrive project is the brainchild of the Emily Hall Tremaine Foundation in New Haven, CT and its grantees. It started with creating an assessment tool for those who work with artists – essentially the grantees in Tremaine’s program called “Marketplace Empowerment of Artists.” But it quickly expanded to consider a much larger system and asked: “What would it look like to have thriving artists in thriving communities?” and “Who would need to do what to achieve that vision?”

A group of six arts leaders have been running with these questions for over a year, with me in a support role. We have launched a series of rubrics, with the spectrum of success defined from bottom to top as “Artists Give Up,” “Artists Struggle,” “Artists Survive,” and “Artists Thrive.” The initial rubric, as I said, looked at the mental models and the actions of those who work with artists. The second looked at the range of attitudes and actions of artists themselves. The third will be for funders, describing how different philanthropic practices affect artists and their communities. Those are the front-line players, so to speak, but we plan to look at how others can contribute to the realization of the thriving artists/thriving communities vision as well – mayors, corporate leaders, planning commissions, educators, etc.

As far as models go, I think we already have some fantastic models of rubrics that deal with issues on a national scale, like the Whole Measures for Community Food Systems, which I describe in my book, or more recently, the Whole Measures for Urban Conservation (2017), which is described on The Nature Conservancy’s website..

Nell: Our country is currently divided along many lines, however in your work as a consultant you often lead groups made up of people that bridge these divides in order to create change in their communities. What are some examples of change you have seen recently in your work? And more broadly, what gives you hope in these challenging times?

David: I wish I were doing more of the kind of work you mention. In fact, I had this fantasy during the 2016 primary election cycle that one of the candidates would brandish my book on stage during a debate and say, “What this country needs is a good rubric!”

But I did see an exercise in cooperation recently that I found really heartening. It was in Delaware, where members of the Delaware Alliance for Nonprofit Advancement (DANA) and the Delaware Grantmakers Association (DGA) created a working group to write a rubric titled, “Grantmaker and Nonprofit Relationship for Creating Community Impact.” The title identifies their shared purpose — why their relationship matters.

The DANA/DGA draft rubric evokes a spectrum of performance (the columns of the rubric) in four short words: “Transactional,” “Engaged,” “Partnership,” and “Transformative.” As far as criteria to be measured along that spectrum (the rows of the rubric), the task force went to the critical dimensions of the relationship: the Alignment of beliefs in the purpose of the relationship; the Mutuality of feeling about its importance; the levels of Trust and Transparency in their interactions; and the quality of their Communication. Given that structure, it is no surprise that the draft rubric is both honest about disappointments and aspirational in its description of the possible.

This is an example of what gives me hope whenever I see it – systems thinking. As David Peter Stroh writes, “In conventional thinking, in order to optimize the whole, we must optimize the parts. In systems thinking, in order to optimize the whole, we must improve the relationships among the parts.” It strikes me that at the highest level of the DNA/DGA rubric, it will not be just a relationship that has been transformed; it will be the State of Delaware. All from carving out the mission time and learning how to use it!

Photo Credit: Social Profit Handbook

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3 Mistakes Nonprofits Make in Fundraising Staff

Before a nonprofit can achieve financial sustainability, the nonprofit leader has to figure out how to staff their money raising function effectively. When I conduct a Financial Model Assessment for a client, one of the sections of my final report is always focused on the nonprofit’s staffing structure and how that contributes to or detracts from the nonprofit’s ability to attract money. More often than not, a nonprofit that is struggling to bring enough money in the door is not thinking effectively about how they staff the money function.

And it typically boils down to three particular mistakes that a nonprofit’s leadership is making. These are:

1. There Is No Financing Strategy
You can’t expect to effectively staff your money raising function if you are not thinking about money in a strategic and holistic way. The very first step in structuring an effective money-raising staff is for a nonprofit’s leadership to figure out their organization’s financial model — how money should flow into and out of the organization. First you must assess what money-raising strategies fit best with your mission and core competencies. And then you need to develop a long-term financing strategy that is directly tied to the goals of your strategic plan. You can’t expect to hire people who will magically make money appear. Effective fundraisers must be driven by a smart money plan.

2. No Single Person Is In Charge of Money
Once you figure out your long-term financing strategy, you need to find (or promote from within) a person to oversee the entire money function of the organization. To truly use money as a tool, you can’t hire someone who can just write foundation grants, or someone who can just work with individual donors, or someone who can just secure government contracts. You need a single person who is thinking 100% of the time about all the ways money flows to your nonprofit. And make sure you offer enough salary to attract and retain a rockstar. It amazes me how many nonprofits expect to entice a great fundraiser by offering a salary that is comparable to someone with only a few years of experience. If you don’t have the current budget to pay a market rate, raise capacity capital to fund the first 1-2 years of the position. Once you have a great money raiser up and running, he will not only raise his own salary, but also grow your nonprofit’s overall financial engine.

3. Money Doesn’t Pervade Everyone and Everything
Finally, once you have a financing strategy and the right person to lead that strategy, then you need get everyone in the organization bought into and contributing (even in a small way) to its success — this is sometimes called creating a “culture of philanthropy.” But I would instead call it creating a “culture of mission financing,” which means every single person in the organization embraces the fact that in order to succeed in your mission, you must effectively finance that mission.  Money troubles often happen when nonprofit leadership offloads all money-raising responsibility to the Development Director. You must make sure that everyone in the organization (board and staff) understand their role in bringing money in the door. Create a culture where a staff member who doesn’t have dollar goals in her job description understands that giving donor tours, providing program outcome data, or writing thank you notes are critical to keeping the organization going. And make sure your board is trained in fundraising, has countless ideas for how each of them can contribute to the financial engine, meets a give/get requirement, and achieves specific individual and full board money goals.

How you staff your nonprofit’s money-raising function is directly tied to how much money you will bring in the door. Therefore you must create a smart financing strategy, hire a staff leader to execute on that strategy, and create a culture of mission financing that ensures everyone plays a role in the financial engine.

If you need help figuring out what’s holding your nonprofit back from financial sustainability, check out the Financial Model Assessment I provide my clients.

Photo Credit: Tax Credits

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10 Great Social Innovation Reads: April 2017

April saw a debate about whether or not crowdfunding is transforming philanthropy, critiques of Harvard Business School, a report on the lack of philanthropy in the Deep South, a first-person account of the effects of founder’s syndrome, and tools to help more funders engage in advocacy. Add to that a new Supreme Court Justice, some new data about fundraising, and two fascinating new books, and April was a very interesting month in the world of social change.

Below are my 10 favorite reads about nonprofits and philanthropy in April, but feel free to add to the list in the comments. And, as always, for a longer list, follow me on Twitter @nedgington.

You can also see past months’ 10 Great Reads lists here.

  1. The dramatic growth of person-to-person crowdfunding efforts may be fundamentally transforming philanthropy argued Ben Paynter in an interesting long read in FastCompany. As he puts it: “[This] vast pool of money [is] fundamentally shifting who is funding charitable work and how that work gets done.” But Eduardo Andino would seem to disagree. Writing in Philanthropy Daily he argues that crowdfunding is not all that different or disruptive: “As has always been the case, Americans give money when they see an organization with a mission they believe in or a person whose need moves them. GoFundMe simply allows more Americans to encounter more people in need of immediate assistance than ever before.”

  2. A new report on the state of philanthropy in the Deep South showed the dramatic discrepancy in per capita funding there versus other areas of the country. As Ruth McCambridge from The Nonprofit Quarterly described the findings of the report: “Funders do not invest in homegrown power-building efforts in the Black Belt because they are not drawn in the image of the more-built-up grantees they know well and favor.”

  3. Now is definitely the time for more philanthropists to engage in advocacy, and to help in that effort The Foundation Center released a suite of tools for funders interested in advocacy collaborations.

  4. Two new (and diametrically opposed) books came out in April. First, Duff McDonald’s The Golden Passport (reviewed by Andrew Ross Sorkin of The New York Times) took a hard look at Harvard Business School, which McDonald argued bred a greedy generation of corporate leaders. And for a completely opposite worldview, check out the new edition of The Power of Kindness: The Unexpected Benefits of Leading a Compassionate Life by Piero Ferrucci (reviewed by Mirielle Clifford on the PhilanTopic blog), which could be a balm for our divisive times.

  5. Linda Wood, Senior Director of Leadership Initiatives at the Haas Jr. Fund, encouraged other foundations to invest in the capacity not just of individual organizations, but also larger social movements. As she put it: “We need to be more attentive to the interplay between the strength and agility of leaders and organizations and the dynamics of their broader movements.” And Patrick Guerriero discussed the evolution of the social movement that resulted in marriage equality.

  6. I think I could probably very happily spend hours digging into Pew Research data. It is fascinating stuff, especially their recent 10 demographic trends shaping the U.S. and the world in 2017.

  7. Speaking of data, there was new fundraising data on donor retention and how more effective an in-person (versus email) solicitation is.

  8. An anonymous nonprofit staff member in the United Kingdom wrote a scathing critique in The Guardian of their nonprofit’s founder who has stayed at the organization too long.

  9. April saw the nomination, confirmation, and swearing in of a new Justice on the Supreme Court, and Michael Wyland provided an analysis of what the implications of a court with Justice Gorsuch could mean for the nonprofit sector.

  10. And finally, if you are feeling a bit overwhelmed by these challenging times, look no further than Steven Pressfield who wrote: “You were born for adversity. It’s in your DNA as much as it’s in the DNA of a shark or an eagle or a lion…Our stubby little ancestors left us not just the ability to endure adversity, but the capacity to thrive under conditions of adversity.” Yes!

Photo Credit: Andy Roberts

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