There are many things that hold the nonprofit sector back, not the least of which is a lack of money. But perhaps a bigger impediment is the scarcity thinking that may actually contribute to that lack of money.
Most nonprofit leaders, their staffs, board members, and even funders automatically think that resources will always be scarce. It is such a profound psychological impediment because if your assumption is constant deficiency, then you will never try for more.
But shifting this nonprofit mindset from never having enough (scarcity), to endless potential (abundance) could transform the sector.
Scarcity thinking is dangerous because it demonstrates a destructive fixed mindset. Carol Dweck’s pivotal 2006 book, Mindset: The New Psychology of Success, describes two ways that people view their abilities, a fixed and a growth mindset, and I think her approach holds great insight for the nonprofit sector.
A person with a fixed mindset believes “that your qualities are carved in stone,” whereas a person with a growth mindset believes “that your basic qualities are things you can cultivate through your efforts.”
Dweck describes the benefits of the growth mindset:
[In the growth mindset your] traits are not simply a hand you’re dealt and have to live with…In [the growth] mindset, the hand you’re dealt is just the starting point for development…People in a growth mindset don’t just seek challenge, they thrive in it. The bigger the challenge, the more they stretch…Sometimes people with the growth mindset stretch themselves so far that they do the impossible.
Isn’t that exactly what we need more of in the nonprofit sector, more seeing the hand you’re dealt as just a starting point, more doing of the impossible?
The growth mindset ultimately leads to “an ever-higher sense of achievement” and “a greater sense of free will.” Wouldn’t that improved sense of achievement and greater sense of free will be transformative to the nonprofit sector?
Nonprofit leaders can drive this shift by moving their organizations and supporters from a fixed to a growth mindset, in several areas:
- From Charity to Social Change
Instead of operating from the fixed charity mindset of “good work” that is tangential to and less valuable than the “business” of the world, move to a growth mindset that offers board members, funders, volunteers, advocates an opportunity to create meaningful, lasting social change.
- From Fundraising to Financing
Instead of focusing on a fixed ceiling of money you think you can raise, figure out what your nonprofit ultimately exists to accomplish and create a financial growth plan to realize that.
- From a Disengaged to a Productive Board
Instead of bemoaning an unproductive board, seize the opportunity to grow the skills, experience and networks you need on your board to accomplish your goals and build it.
- From a Burned-Out to an Energized Staff
Instead of only paying what you think you can afford for a skeleton staff, figure out what it would cost to hire enough and the best staff you need, then grow your financial model to reach that.
- From Constricting to Allied Funders
Instead of complaining about funders who make restrictive demands, enlist them as partners in the social change you seek, educate them about your true costs, invest them in your theory of change, and then work with them to build the resources you need to get there.
And the list goes on. The point is that there is tremendous opportunity in the simple act of shifting your thinking. By removing the shackles of a fixed mindset you can set your nonprofit, your board, your staff, your funders and ultimately your social change goals on a path toward what you once thought was impossible. That’s powerful.
Photo Credit: astridle
Building and keeping a highly effective nonprofit staff is really tricky. The recently released 2015 Nonprofit Employment Practices Survey from NonprofitHR found that 50% of nonprofits surveyed plan to add new positions in 2015, compared to 36% of private companies. But, staff recruitment and retention are still significant hurdles for nonprofit leaders, with 52% of nonprofits lacking a recruitment strategy and 27% reporting their greatest retention challenge is low wages.
So how can nonprofits grow their staffs when they are hampered by significant recruitment and retention challenges?
Here’s how I coach my clients to build a highly effective nonprofit team:
Recruit Outside Your Comfort Zone
The 2015 Nonprofit Employment Practices Survey found that the top recruitment strategy for nonprofit leaders is to “use a network of friends and colleagues.” But that’s not a strategy. As with everything, nonprofit leaders must embrace the idea of a “networked nonprofit,” growing their connections to people and organizations outside their comfort zone. To find your next staff rockstar, be strategic about getting your job in front of new audiences and networks. Come up with a list of 50-100 people who might be connected to someone who fits the job’s qualifications. Think of strategic allies, leaders in the field, funders, volunteers. Send the job posting and ask them to direct great candidates to you. And in addition to posting the position on regular job sites, send it out through all of your social media channels and ask your board, partners, allies, funders, etc. to do the same. Cast your net far and wide in order to recruit the best and brightest.
As I said, one of the biggest challenges to retaining staff is low salaries. But the fact is that staff turnover is an enormous cost to an organization (recruitment, lost time, retraining) so convince your board that you should pay competitive salaries in order to save the organization money in the long run. Do salary research (at salary.com, or from nonprofit salary surveys in your region) and determine what a competitive wage for your position really is. Then convince your board to increase the budget to accomodate it. Move from the scarcity mindset to the abundance mindset, or if you just don’t have the funding right now, raise capacity capital to elevate your fundraising function so that you can recruit and retain top talent.
Hire The Right Person
Nonprofit leaders must go against the default, which is to hire someone with less experience than the position requires (since it’s cheaper). Instead hire someone who can take the position to the next level. Hire the person who has the demonstrated experience you need and is hungry to build that function in your nonprofit. But keep in mind that finding that person takes time. Many nonprofit leaders make quick hiring decisions because they are desperate to fill a position and end up suffering a poor fit later. Instead, create a detailed due diligence process which includes multiple rounds of interviews (quick screening phone calls, longer one-on-one interviews, interviews with their future staff colleagues, interviews with key board members), a written “homework assignment” to gauge their skills, and detailed reference checks. Be thoughtful and methodical in your process and spend the time it takes.
Once you have a great person in place, make sure you lead them effectively by using goals and strategy, not micromanagement. The best way to do this is to schedule a 30-60 minute, weekly, one-on-one meeting with each of your direct reports that focuses on your goals for their position. This allows you to give your staff ample leeway to shine, while monitoring their progress along the way. You will also have fewer interruptions during the rest of the week because your staff feels they get the attention and feedback they need in a regular, dedicated meeting. This creates an empowered staff, a confident leader, and a productive organization.
Like anything else, doing something well takes strategy and the will to effectively implement it. You can recruit and retain a phenomenal nonprofit staff, but you must be thoughtful about it.
If you want to learn more about the coaching I provide nonprofit leaders — on staffing, board development, fundraising, strategy and more — check out my Coaching page.
Photo Credit: Maurice Bramley
In today’s Social Velocity interview, I’m talking with Lowell Weiss, President of Cascade Philanthropy Advisors, which provides personalized guidance to foundations and individual donors seeking to deepen their impact. Previously, he served in leadership roles at the Bill & Melinda Gates Foundation, the Morino Institute, and in the Clinton White House.
You can read past Social Velocity interviews here.
Nell: Why do the Leap Ambassadors believe now is the right time to introduce the Performance Imperative (PI) to the nonprofit sector? There have been past attempts to move the sector toward outcomes and performance. What makes this effort and this timing different?
Lowell: We don’t know if we’ll break through with this effort. But the 70+ members of the Ambassadors Community are committed to giving it our all, because we believe that performance matters more than ever. The social and public sectors are increasingly steering resources toward efforts that are based on a sound analysis of the problem, grounded assumptions about how an organization’s activities can lead to the desired change, and leadership that embraces continuous improvement.
High performance is all too rare in our sector today. In fact, we don’t even have a commonly accepted definition of the term “high performance.” The PI is our attempt to create that common definition and then start the process of creating guideposts to help nonprofits who are motivated to improve their performance for the clients and causes they serve.
We’re not aware of any other effort devoted to this mission-critical topic that has engaged so many top nonprofit executives, funders, and thought leaders as co-creators. Perhaps even more important, the PI goes beyond the typical focus on helping nonprofit leaders do things right. When leaders do things right, they can achieve strong operational performance but not necessarily meaningful results for beneficiaries. To achieve the results embodied in their mission statements, leaders must go the extra mile, through diligent internal monitoring and external evaluation, to ensure they’re also doing the right things.
Nell: Does the PI apply to any and all nonprofit organizations? Is it a measuring stick that any size and domain area nonprofit should use, or are there certain types of nonprofits for which this really works?
Lowell: We believe the insights in this document are most immediately applicable to nonprofit organizations with budgets of $3 million or more. But many of the basic management principles apply to organizations of any size, just in less-intensive ways. Some of the details have a special focus on organizations that provide direct services. We believe the overarching framework is relevant for organizations of almost any type.
Nell: What will keep the Performance Imperative from becoming a dusty document rather than a movement? What does success look like for this movement and how will you measure whether that happens?
Lowell: Let’s face it: The topic of high performance is not a lightning-fast meme that will spread like a left shark or right-wing conspiracy theory. It’s a slow, complex idea that will require patient, methodical work to advance. Hence the importance of the Leap Ambassadors Community, a group of leaders who care deeply about high performance and are willing to share the gospel with trusted colleagues and peers.
We believe that when leaders with strong beliefs and passion coalesce around a common purpose, they can build a collective power and influence to drive positive change. They can create an infectious enthusiasm to pull other like-minded players into a growing community of action. That can only happen when you take the time to build relationships, trust, quality work, and collective pride in that work. Overall, we’ll judge our success based on a) to what extent the PI becomes an established framework for increasing the understanding and expectation of high performance as a critical pathway to greater societal impact; and b) to what extent the Leap Ambassadors Community demonstrates itself as a thoughtful, knowledgeable, aligned community of leaders and earns respect, collaboration, and support from prominent players in the field.
To be more concrete about how we will know if we’re on the right track, we’ve established metrics for the growth and engagement of the Ambassadors Community as well as for the value of the PI itself. Here a few of the milestones we hope to achieve over the next year:
- 100‐150 ambassadors have jelled as a community and are truly aligned with the community’s purpose.
- At least 25 nonprofits commit to using the PI to assess their strengths and needs; increase the board’s focus on mission effectiveness; improve their professional-development and organization-building efforts; or otherwise use the PI as a North Star to guide their journey toward high performance.
- Three to five foundations adopt the PI for themselves and their grantees, and they begin to apply the PI in their grant decisions and grantee support.
- Three charity ratings or information providers build the PI into their offerings.
- At least two vendors prominently use the PI in their suites of products and services.
- At least two prominent nonprofit management and leadership programs incorporate the PI as a core staple in their products and services.
- At least one institution creates a prominent award aligned with the PI or adapts an existing award.
Nell: Where do funders and regulators fit into this push for higher performance in the sector? One of the things that holds nonprofits back from high performance is an inability to spend the money it takes to achieve high performance (money for infrastructure, evaluation, staff, etc.). How do we fix that and where does fixing that fit into the movement’s plans?
Lowell: Funders and regulators can and must play a role. Right now, I’m helping a multiservice agency transition from providing compassionate care to ensuring that its clients achieve meaningful, measurable, sustainable life outcomes. The agency is trying to live the PI. But here’s the sad reality: The journey toward high performance is making the organization’s development challenges harder, on net. That’s because there are so few funders who understand the value of high performance—and even fewer who reward it.
To make the leap to high performance, nonprofits need creative funders willing to think big with them—not just ask for more information on results. They need funders who understand that making the leap requires more than program funding and more than the typical “capacity-building” grant. They need funders who make multi-year investments in helping nonprofit leaders strengthen their management muscle and rigor.
That’s why we’re so supportive of the work of Results for America and the Coalition for Evidence-Based Policy, organizations that are helping governments to base funding decisions on evidence and results. And that’s why the Ambassadors Community is developing the case for high performance that we can start bringing directly to funders. Bridgespan Group Co-Founder and former Social Innovation Fund Director Paul Carttar and Center for Effective Philanthropy President Phil Buchanan are co-leading a working group of ambassadors to build the case for funders. They are planning to convene a dozen+ foundation leaders to help flesh out the most effective arguments and evidence we can assemble to persuade funders that they have a better chance of accomplishing their missions if they support their grantees’ pursuit of performance.
Photo Credit: Cascade Philanthropy Advisors
Today I am in Sacramento (it’s a busy travel month) speaking at the Nonprofit Resource Center’s 2015 Conference “Building a Mission Focused Community.” I am honored to share the stage with amazing nonprofit sector visionaries like Jan Masaoka from the California Association of Nonprofits and Blue Avocado, Jeanne Bell from CompassPoint, and Robert Egger from LA Kitchen (and past Social Velocity interviewee and guest blogger).
My topic for today’s conference is “Reinventing the Nonprofit Leader.” Amid growing competition, decreased funding sources, and more and increasingly complex social challenges, nonprofit leaders must reinvent themselves. They must unlock the charity shackles, embrace strategy and impact, use money as a tool, refuse to play nice, and demand real help. We need a new kind of nonprofit leader.
Below is a Slideshare synopsis of my talk today, and it joins the growing library of Social Velocity Slideshare presentations.
Almost two years ago three nonprofit rating organizations launched the Overhead Myth campaign aimed at eradicating “the false conception that financial ratios are the sole indicator of nonprofit performance.” Call me an optimist, but I think it might be working. I see more nonprofit leaders and funders discussing the radical idea that overhead might not be a bad thing. We still have a long way to go, but perhaps there is progress.
The bad news, however, is that the Overhead Myth is only one of many (way too many) destructive nonprofit myths. So in this new year, let’s look at those additional myths that hold the nonprofit sector back.
As we all know, a myth is a story that everyone believes, but is actually not true. Here are the 5 most egregious myths I see in the nonprofit sector:
- Good Nonprofits Don’t Make a Profit
For some reason it is unseemly for a nonprofit to have more money than they immediately need. The best a nonprofit should hope for is to break even, and if they do run a profit, they should not be fundraising. To the contrary, a nonprofit with operating reserves can invest in a more sustainable organization, conduct evaluations to make sure their solution is the best one, recruit a highly competent staff, and weather economic fluctuations. For a donor it is far better to invest in an organization with the people and systems necessary to effectively tackle a social problem than an organization that is barely getting by. The best nonprofits are those that create a financial model that allows them the money mix (revenue, capital, reserves) necessary to make the best decisions and invest where and when they must.
- There Are Too Many Nonprofits
I’m so tired of the refrain (mostly by funders) that there are “too many” nonprofits. Does anyone complain about how many tech startups there are? This myth comes from the fact that the sector is undercapitalized which causes organizations to compete for scarce resources. So let’s fix that problem instead. To be sure, there are times when it makes sense to bring two nonprofits that address similar needs together in order to save costs, but that’s usually the exception not the rule. The process of merging two organizations is itself incredibly time-intensive and costly, and, honestly, rarely do funders invest the amount of resources required to ensure a successful merger. Every nonprofit should regularly assess their Theory of Change and how they fit into the external market place of social problems and competitors working on similar problems. If a nonprofit finds that they are no longer adding unique value to that marketplace, then they should reorganize, merge, or disband, whichever makes most strategic sense.
- Nonprofits, Unlike Businesses, Are Inefficient
This myth takes many forms: “nonprofits are too slow,” “nonprofits should sell more products or services”, “nonprofits should run more like a startup,” and the list goes on. The underlying assumption is that the for-profit world is inherently smarter, more strategic, more nimble and more effective. But the truth is that all three sectors (business, government, and nonprofit) have their stars (like Apple), their screwups (like Lehman Brothers) and the multitude in between. Inefficiency in the nonprofit sector is merely a symptom of a larger problem, which is the persistent lack of adequate capital to fund enough of the right staff, technology, systems, evaluation, marketing required to address the intractable problems nonprofits are trying to solve. Let’s talk about that instead.
- Nonprofits Are Outside the Economy
This is the myth that nonprofits are “nice to have” and make everyone feel good, but are not a critical component of our lives or our economic system. But the fact is that the nonprofit sector employs 10% of the U.S. workforce and accounts for 5% of GDP. And the number of nonprofits grew 25% from 2001-2011, while the number of businesses only grew by 0.5%. As government continues to slough off services to nonprofits, those numbers will only continue to grow. The nonprofit sector is not tangential to the economy, but rather an instrumental part of it.
- Nonprofits Have No Role In Politics
501(c) 3 organizations have long been told to stay out of politics. The myth is that charity is too noble to be mired in the mess of pushing for political change (Robert Egger has written extensively on this). But the fact is that simply providing services is no longer enough to solve the underlying problems. Nonprofits are increasingly recognizing that they can no longer sit by and watch their client load increase while disequilibrium grows. Nonprofits must (and already are) advocate for changes to the ineffective systems that produce the need for their existence.
Being mired in the demoralizing and debilitating cloak of these myths wears the nonprofit sector down. We must follow the Overhead Myth’s example and start uncovering the other myths that hold the sector back. Because the power of a myth is greatly diminished when we openly admit that the myth is only that — a myth.
Photo Credit: We Shall Overcome, Rowland Scherman, National Archives
The year is winding down, and I will be taking some time off to enjoy friends and family (as I hope you are too). But before I go, I want to leave you with a list of the 10 most popular posts on the blog this year, in case you missed any of them.
I feel incredibly lucky to be able to work with you amazing social change leaders. I am grateful for the amazing work you are doing to create a better world. And I appreciate you being part of the Social Velocity community.
I wish you all a happy, relaxing holiday season, and a wonderful new year. I’ll see you in 2015!
- Can We Move Beyond the Nonprofit Overhead Myth?
- 7 Rules For Brilliant Nonprofit Leaders
- How to Move Your Nonprofit Board From Fundraising to Financing
- Why Nonprofits Must Stop Being So Grateful
- 5 Questions Every Nonprofit Leader Should Ask
- Why Do Nonprofit Leaders Get In Their Own Way?
- 3 Questions to Get Your Nonprofit Board Engaged
- 5 Ways Great Strategy Can Transform a Nonprofit
- Does Your Nonprofit Know How To Attract Big Donors?
- It’s Time to Reinvent the Nonprofit Leader
Photo Credit: Steven Depolo
I love this time of year. Not just because of the approaching space for relaxation, friends and family, and great food, but more importantly because it is a time for reflection. The end of the year offers a natural analytic marker between what was and what is yet to come.
And as is my end of the year tradition on the blog, it’s a time to look ahead to what the coming year might bring for the nonprofit sector. I’ve always said when I create my Trends to Watch lists that I am less clairvoyant and more optimist. I am always hopeful that the nonprofit sector is growing more effective, more sustainable, more able to create lasting social change. That’s the trajectory that (I freely admit) I am predisposed to see.
So here are 5 things I’m really hopeful about the nonprofit sector as we head into the new year.
- Growth of the Sharing Economy
The emerging “sharing economy,” where a good or service is shared by many instead of consumed by one and managed largely through the use of social technologies (think AirBNB, Netflix, TaskRabbit and countless others), will have wide implications for the social change sector. The sector that employed “sharing” long before it was cool will need to understand this changing environment and the implications for their work. Nonprofits should figure out how to navigate this growing interest (and increasing for-profit competition) in the realms of community and goodwill. It will be fascinating to watch.
- More Focus on Crowdfunding
One element borne out of the sharing economy is crowdfunding, and there is no doubt that it is everywhere. I have written before about my skepticism. But my hope is that crowdfunding will move away from ALS Ice Bucket Challenge-like hype and become another financing tool that nonprofits can use strategically. We need to get smarter about what crowdfuding is, and what it isn’t. A Kickstarter campaign makes sense for startup and other capital needs, but not for ongoing revenue. And while Giving Days are exciting, I’d like to see more analysis of what’s new money and what is cannibalized money. There is no doubt that crowdfunding is a force to be reckoned with, I just hope we turn it into a useful, strategic tool that contributes to — not detracts from — sustainable social change financing.
- Decreasing Power of the Overhead Myth
The Overhead Myth, the destructive idea that nonprofits should spend as little as possible on “overhead” expenses (like infrastructure, fundraising, and administrative costs) was laid bare in 2013 when GuideStar, CharityNavigator and BBB Wise Giving Alliance wrote their famous Letter to the Donors of America. This year they wrote a follow up Letter to the Nonprofits of America, arguing that both nonprofit leaders and donors must stop judging nonprofits by their overhead rate and instead focus on a nonprofit’s outcomes. It’s exciting to see this most detrimental of nonprofit myths beginning to crumble, but there is still much work to be done. Not least of which is helping nonprofits articulate and measure their outcomes so that they have a more effective measure with which to replace the overhead rate.
- Growing Emphasis on High Performance
Which brings me to the growing movement for creating more high performing nonprofits. Over the past several years there has been an emerging effort to move nonprofits toward this outcomes approach to their work. The idea is that if nonprofits can better articulate and measure the social change they seek, more resources, sustainability and ultimately more change will follow. In the coming year, a group of social sector leaders (of which I am a member) will release a framework for what practices constitute a high performing nonprofit. But that is just one example of a growing emphasis in the social change sector on results.
- Greater Investment in Nonprofit Leadership
Nonprofit leaders have long traveled a lonely road with inadequate support and resources. Funders and board members often assume that a leader should go it alone, even while for-profit leaders benefit from on-going coaching, training and development. But that is starting to change. A few savvy foundations have invested in nonprofit leadership, and they are beginning to trumpet the benefits of such investments. As more funders understand why investing in the leaders of the nonprofits they fund makes sense, I am hopeful that nonprofit leadership support will become less of an anomaly. And with stronger, more effective and supported leaders comes — I firmly believe — more social change.
Photo Credit: slorenlaboy
In today’s Social Velocity blog interview I’m talking with Albert Ruesga. Albert is the President and CEO of the Greater New Orleans Foundation, known for its leadership in the region after Hurricane Katrina. He serves as chair of Grantmakers for Effective Organizations (GEO) and sits on the Philanthropy for Social Justice and Peace steering committee. He earned his Ph.D. at MIT and taught philosophy at Gettysburg College before entering the world of philanthropy. An accomplished writer, his articles have appeared in the Oxford Handbook of Civil Society, Social Theory and Practice, and other publications.
You can read other interviews in the Social Velocity Interview Series here.
Nell: As President & CEO of the Greater New Orleans Foundation you were deeply involved with the rebuilding efforts after hurricane Katrina and the attempts to use Katrina as an opportunity to kickstart social innovation. Looking back, how successful do you think efforts were to use the aftermath of the storm as an opportunity to create social change?
Albert: I came to New Orleans at the beginning of 2009, three years after New Orleanians had cleared their streets of rubble and buried and mourned their dead. It was also two years after the Greater New Orleans Foundation had launched its very successful Community Revitalization Fund that helped rehabilitate and construct affordable housing for 9,500 families. Certainly some good things have happened under my watch–at least I hope other people will judge this to be true–but it’s worth remembering the substantial good that came before, thanks to the sacrifices of so many.
The term “social change” is as slippery as a fresh Louisiana oyster. How do we measure it? One model that springs immediately to mind is the New Testament story of the sheep and the goats in which God says to those on his right, ‘Come, you who are blessed … ; take your inheritance, the kingdom prepared for you since the creation of the world. For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me, I was in prison and you came to visit me.’ You may recall that God had some very choice words for those on his left.
There are many good people in New Orleans who understand and abide by these words. These people–and there are many–continue to be the hope of our city. As individuals or through their foundations, they give generously to help the hungry, the sick, the imprisoned.
We need to remember also that what drew the attention of the world to New Orleans was not a powerful hurricane–powerful storms are by now a commonplace. What drew their attention was the fact that so many people needed to be rescued from their rooftops. What shocked the world were the appalling disparities between New Orleans’s poor, largely black, population and those who were better off. If you judge social change in these terms, I don’t think it’s an exaggeration to say that, metaphorically at least, many New Orleanians are still running for their attics. While there has been progress in some domains, we have not adequately addressed the cultural, structural, and spiritual causes of these disparities.
And before we start pointing fingers at New Orleans, let’s not forget that these same kinds of disparities exist in every metropolitan area in the United States.
Nell: On the White Courtesy Telephone blog you sometimes take philanthropy to task (for being too theoretical, for chasing shiny objects, etc.). Is there something fundamentally wrong with philanthropy? Does the power imbalance between funder and recipient create a dysfunctional relationship that stands in the way of social change?
Albert: There is nothing fundamentally wrong about philanthropy when understood as generosity, as the giving of time and treasure to help others, as giving for the sake of the common good. On the contrary, philanthropy is hands down our greatest achievement as a species.
As for “organized philanthropy,” “professionalized philanthropy,” the philanthropy practiced by foundations large and small — that’s another matter. The problems with organized philanthropy, in my view, go far beyond power imbalances. Several years ago, I tried to summarize philanthropy’s shortcomings in “Twenty-Five Theses”. I still believe these are essentially accurate.
I’m constantly amazed at what our field marginalizes and what it deems important. There’s currently a good deal of discussion about the differences between strategic and emergent models of philanthropy. Highly compensated consultants will make fortunes helping befuddled foundation CEOs like me sort out the differences. But it’s not the model that will make or break our efforts at social change: it’s us; in most cases, we will be the reason our best models will not work. We simply cannot make good omelets out of bad eggs.
We philanthropoids chase the new model, the new technology, the new structure — the “shiny object,” as you call it — because we’re a deeply insecure tribe, lacking the self-awareness we need to admit to ourselves and others that affecting the dynamics of social change is beyond our powers, and that, as a consequence, we really don’t know what the heck we’re doing. Either that, or we do in fact understand how social change works — at least intuitively — and we fear that a frank discussion of the subject will cost us our jobs. Both of these possibilities constitute what I’ve called “philanthropy in bad faith.” I’m not immune to these criticisms; I too am guilty as charged. If my understanding of the field’s shortcomings is at all accurate, it’s because I embody so many of them. Every morning my next blog post stares at me from the bathroom mirror.
Nell: You have written about your hope that the next generation of philanthropists will make some significant changes to philanthropy. And studies have claimed that Millennial philanthropists will be different (although some disagree). How much do you think Millennial philanthropists will actually change philanthropy and in what ways?
Albert: My generation has left a terrible mess for the Millennials to clean up: a huge gap between the haves and have-nots; unthinkable gender and racial inequality; an insecure world; a despoiled environment; the illusion of democracy in our own country; and much more besides. My great hope is that the Millennials will realize that philanthropy-as-usual simply will not get the job done. We need to discourage them as much as possible from thinking and behaving like their predecessors.
If I could give the Millennials one piece of advice it would be this: pay close attention to the frame. While you’re focusing on the content (hunger, homelessness, global warming), the frame you’ve internalized — the frame we’ve all internalized — is keeping us from seeing and understanding the larger picture. What happens locally, pretty much everywhere in the world, is shaped by simple rules of human behavior that have over time led to a global economic order that needs to be made transparent. This awareness, I hope, will be the legacy of the Millennials and their successors.
Nell: One of the areas that the Greater New Orleans Foundation funds is capacity building. Is it possible to convince a critical mass of funders to start investing in nonprofit capacity building?
It’s certainly worth a try, isn’t it? Short of launching a capacity building program, as we did, grantmakers can start by providing general operating support whenever possible (although multi-year support is better), providing grants for capacity building, providing capital for operating reserves, and awarding larger grants. Foundations can teach their program officers to look and listen for cues that a nonprofit needs special assistance. There are so many ways in to the capacity building “space,” ways that cost so very little. The payoffs, in our experience, are substantial.
Photo Credit: Greater New Orleans Foundation
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