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Convergence

The Network As Social Change Tool: An Interview with Anna Muoio

Anna Muoio face2In today’s Social Velocity interview, I’m talking with Anna Muoio, an expert on the use of networks in social change efforts.

At Monitor Institute, a part of Deloitte Consulting, Anna leads the practice on how to drive large-scale social change through galvanizing networks around a shared agenda. She has led aligned action efforts for organizations such as New Profit, Skoll Foundation and Venture Philanthropy Partners. Anna is the author of GATHER: The Art and Science of Effective Convening; ENGAGE: How Funders Can Support and Leverage Networks for Social Impact; and most recently, “Wicked Opportunities” in Business Ecosystems Come of Age.

Nell: Is the idea of a network entrepreneur new in the world of social change? Or how do you think the use of networks is different now than it has been in the past?

Anna: The idea of an individual who works, often tirelessly, to mobilize diverse stakeholders to tackle a tough problem by developing a coordinated plan of attack is not new by any means. Funders and practitioners have been galvanizing networks to address large scale challenges for decades. But the term “network entrepreneur” is new. I heard it recently from two practitioners, David Sawyer and David Ehrlichman from Converge, who are working with network leaders in California.

Over the years we’ve used several terms to describe this type of person: network weaver, network CEO, system leader, tri-sector athlete, Chief Resilience Officer, ecosystem integrator, to name a few. What is changing, though, is the acceptance of why developing the capacity to lead and engage in problem solving through networks is important—as well as an appreciation for what it takes to do so. Increasingly, we’re seeing a shift from the organization as the primary unit of change to the network as a viable means of achieving social impact goals.

Nell: Why do you think nonprofit leaders should embrace the idea of a network entrepreneur? What makes this approach so attractive to social change efforts?

Anna: It’s not just nonprofit leaders who should embrace the idea of using networks to drive systemic change. The tough problems we face as a society have no consideration for sector or issue boundaries—and can’t be solved by leaders from any one sector. Business and government leaders have just as important a role to play in cross-sector social problem solving. And for companies, working through networks is becoming a powerful way to integrate social impact into their core business strategy rather than isolate it within a corporate social responsibility initiative. This is where a lot of exciting activity is happening globally.

We’ve identified five types of networks that create that intersection between social impact and business value—and in which companies are playing critical roles. There are those networks which can directly benefit a company’s core business and are designed for addressing strategic goals such as stewarding natural resources, enabling market-based solutions and raising industry standards. Then there are networks that tend to more indirectly benefit a company’s core business; and these focus on aligning solutions within local communities and mobilizing action around large-scale solutions. We are seeing bold cross-sector experiments in many arenas–where social impact networks are successfully engaging the private sector to tackle a range of challenges while also meeting specific business needs, such as: effectively stewarding the forests of the Santa Cruz Mountains in California; redesigning the global seafood supply chain to preserve fisheries; surfacing new market-based solutions for building a healthy and sustainable food system worldwide; improving access to new and underused vaccines for children living in the world’s poorest countries; and enabling communities to create local education ecosystems to support children and youth from cradle to career.

I don’t want to put an unrealistic sheen on the power of networks to solve all problems. Working in this way is one of many important tools in our collective problem-solving toolkit. What networks do, however, is allow us to pursue solutions that would be harder to attain in other ways. A network approach aligns the actions of a diverse set of stakeholders to tackle a larger piece of a problem than by working in isolation; diversifies risk and spreads bets across many experiments; enables innovation by building a platform where different voices can come to the table to shape new solutions; and ultimately, helps build a resilient problem-solving ecosystem where a dense web of relationships provides the resilience necessary to adapt to new challenges and opportunities as they arise. These qualities are harder to get through one-to-one partnerships or from the efforts of a single organization. A network builds a platform that can launch a portfolio of interventions and simultaneously pull many levers for change. That’s what makes them attractive for social change efforts.

Nell: Networks are often organic and can become ineffective if they are overtaken by a single person or entity, yet they also require leadership to be successful. How does a network balance the need for leadership with the need for organic growth?

Anna: Walking the right “leadership line” is certainly critical in a network context; but that’s not to say that networks don’t need focused and intentional leadership. Network leadership requires a different mindset than operating in a traditional organization. It’s more loosely controlled and emergent than top-down and planned. Decision making is shared rather than concentrated in one person. Insights come from the collective rather than from individual “experts.” Power and commitment come from trust among many not from mandates from the C-suite.

In this way, leadership is just one of the many attributes to factor into a network’s design. Through our own work with networks, we’ve identified eight particularly common ways that they can vary to suit different circumstances—and enable or hinder growth. Besides the important leadership attribute, network entrepreneurs need to consider others such as a network’s purpose, alignment, governance, sector, orientation, size and geography.

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Our Axes of Collaboration (to the left) is a useful tool for any network entrepreneur as they think about the foundational DNA of a network—and how to design one to best match the type of problem it’s meant to tackle.

For instance, if you’re a network like REAMP, now with over 165 participating organizations focused on the ambitious goal of reducing carbon emissions 80% by 2050 across the Midwest, you won’t want to design a network that “lives” more on the left side of these axes: one with distributed leadership, informal governance, that’s more learning than action oriented, and has minimal alignment. You’ll never hit that goal with that kind of design. Leadership is a critical component of any network; but so are the other factors that will either help support or inhibit a network’s growth. Considering all these dimensions—and then designing appropriately—is essential.

Nell: When you look at some of the social movements active today — like Black Lives Matter and the protests on college campuses — how does your research on networks help inform your understanding of whether or how successful you think those efforts will be?

Anna: I won’t try to predict the future of these movements. But through our work helping design and launch networks, we know that we need to apply a different frame to evaluate a network’s success. We’ve been influenced by the work of Peter Plastrik and Madeline Taylor who are pushing the field’s thinking around how we measure the impact of a network. For a network, it’s important to understand—and to be able to measure—not just the effects, what a network achieves in terms of outcomes, but also to measure its operations, its “internal health” and how it runs.

We segment network effects into three areas:

  1. Beneficiary effects (the outcomes and impacts on the people a group aims to serve),
  2. Idea dissemination (the spread and adoption of language, concepts or practices a network supports) and
  3. Field building (changes we’ve promoted in the development of the fields in which we work).

We then segment network operations into its structure and health and measure things such as the network’s membership, connectivity, activities, resources, infrastructure and value proposition. Many years ago we developed a diagnostic tool to evaluate a network’s effectiveness. Many of the elements to consider may be highly relevant to those working more directly with movements.

Ultimately, a network’s—or movement’s—success depends on a variety of factors. And getting smart about how to track them in order to refine, recalibrate or redirect the network’s strategy is what matters. Unfortunately, there’s not one solitary variable to evaluate the multi-dimensional nature of a network that’s built to tackle deeply systemic and complex challenges. I wish it were that simple, but it’s not.

Photo Credit: Monitor Institute

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10 Great Social Innovation Reads: Dec 2015

social changeDespite being the run up to the holiday season, December was a busy month in the world of social change. From arguing about new philanthropy, to looking back at 2015, to exploring America’s history of philanthropy, to analyzing the leadership of the Pope and the Red Cross’ Gail McGovern, to inspiration in grim times, there was lots to read.

Below are my picks of the 10 best reads in the world of social change in December. But please add to the list in the comments. And if you want to see a longer list of what catches my eye, follow me on Twitter @nedgington.

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

  1. Arguably the biggest news in December was Mark Zuckerberg (founder of Facebook) and his wife Priscilla Chan creating a limited liability corporation (not a foundation or nonprofit) focused on social solutions. Many, many, many people had something to say about it. Some liked it, others despised it, others found serious implications for the future of philanthropy, others were terrified by it. Amid all the hubub, the Zuckerberg/Chan’s chief of staff further clarified their plans. Perhaps we should just wait a bit and see what the actual effect is.

  2. And beyond the Zuckerberg/Chan investment, there was debate about new forms of philanthropy in general. Michael Edwards thinks the idea of blending social and profit motives has jumped the shark. And Andrew Means of Data Analysts for Social Good thinks Effective Altruism, the idea that you can use data to determine where to most effectively invest in social change, is flawed because it doesn’t account for different philanthropists having different preferences.

  3. Since December is the last month of the year, there was the traditional glut of posts looking back at 2015. My favorite among them were: The National Council of Nonprofit’s “5 Firsts” for the Nonprofit Sector in 2015,” Inside Philanthropy’s “Hot Topics and Trends for Women and Philanthropy, 2015,” The Nonprofit Quarterly’s “9 Important Nonprofit Stories of 2015 (And What They Can Teach Us),”  Pew Research’s “15 Striking Findings From 2015,” Mashable’s “26 Incredible Innovations that Improved the World in 2015, and Lucy’ Bernholz’s “Philanthropy’s 2015 Buzzwords.” Whew!

  4. The Smithsonian’s National Museum of American History previewed an upcoming permanent exhibit on American philanthropic history. Fascinating.

  5. David Callahan provided some really interesting theories for why the percent of charitable giving in America has yet to climb beyond 2% of GDP. His proposed causes include: liberals, corporations, and even Ronald Reagan.

  6. Emmett Carson, head of the Silicon Valley Community Foundation, put forth an interesting idea for two of the most influential organizations advocating for the nonprofit sector: Independent Sector and The Council on Foundations. He thinks they should merge, as he explained: “The new entity could harness our entire sector to meet old and new social and economic challenges. Such a new organization could meet our sector’s higher collective purpose — to influence how this country meets its obligations to our most marginalized citizens, whether they are poor, sick, homeless, immigrants, disabled, or victims of systemic discrimination.”

  7. Writing in Forbes, Mike Perlis, argued that The Pope is an illustrative example of how leadership should operate in the 21st century.

  8. ProPublica’s ongoing series investigating the American Red Cross continued with an article about CEO Gail McGovern’s leadership and where she may have gone wrong. And Ruth McCambridge from The Nonprofit Quarterly found the problems at the Red Cross to be reminiscent of other nonprofits that have fallen victim to troubled leadership, like the founder’s syndrome that plagued the Susan G. Komen Foundation.

  9. Nonprofit blogger Vu Le argued that if we want nonprofits to act more like businesses, nonprofits should enjoy more of the benefits that businesses do: “Society needs to provide nonprofits with the same level of funding, speed of investment, flexibility, autonomy, and acceptance of risk and failure, or else stop trying to get us nonprofits to be more like for-profits. You can’t have your nonprofit cake and yet withhold your for-profit icing.” Amen to that.

  10. And finally, to restore your faith in humanity, new Canadian president Justin Trudeau created a tremendous welcome for incoming Syrian refugees. And Barbara Bush and Jessica Mack from Global Health Corps would probably consider Trudeau just the kind of leader we need right now, for as they wrote in the Stanford Social Innovation Review: “At times like these, when the news is an endless litany of upsetting events, it is far too easy to let rage slide into violence, or allow fear to shut us down to the humanity of others. We have examples of that all around us. But leadership doesn’t entail taking the easy option. Instead, the most courageous stand we can take is against fear itself, by resisting the instinct to close up and push others away…It is within each of our abilities to decide how to parlay these grave moments into opportunities for resilience, inspiration, and hope.” Yes!

Photo Credit: hobvias sudoneighm

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Networks, Social Movements, and Civic Tech — Oh My!

Last week I was in Miami for the Independent Sector conference, one of the largest gatherings of nonprofit and philanthropic leaders in the country. I really enjoyed it, in particular a few sessions that really got me thinking. Rather than give you a play-by-play of the conference (which you can get by viewing the Twitter feed) I wanted to share some big ideas that came out of the conference for me.

network entrepreneursNetworks Are Critical to Social Change
I am obsessed lately with this idea of a network entrepreneur, so the session “Connecting with the Right Kind of Network” where a panel of 7 network entrepreneurs explained how they used networks to varying degrees to move their social change goals forward was fascinating. Anna Muoio from Monitor Institute kicked off the session with her research on how social change networks operate (her wheel of network types is on the right). Then network entrepreneurs like Julieta Garibay from United We Dream, Tina Gridiron from Lumina Foundation, Clayton Lord from Americans for the Arts, and Sean Thomas-Breitfeld from The Building Movement Project, among others described their work to bring people and organizations together to work toward common change goals. These network entrepreneurs demonstrated how effective networks, as opposed to siloed organizations, can be in creating large-scale, systemic change. I’ll have more on this, because (as I said) I’m obsessed.

campaign financeOur Political System is Broken
Trevor Potter from the Campaign Legal Center gave a riveting plenary about our broken money in politics system. He took us through some scary facts (like the one to the left) about how challenged our democracy is right now, including the fact that presidential campaign fundraising more than doubled from 2004 to 2008, only 158 families account for more than half of the donations to the 2016 election so far, and 59% of Americans think our political system is broken. Depressing, but also an incredible opportunity to create change.

But Smart People Are Working To Fix Government
And there is hope! As I have mentioned before, “civic tech” (using technology to improve government and civic engagement) is a burgeoning field. The “Civic Tech Lab” session at the conference showcased 6 different civic tech solutions. They included TurboVote, which makes it easier for people to know where/when/how to vote; Textizen, which allows local governments to better communicate with and serve their citizens; and Open Referral which makes local social service data more accessible and usable. There are some really exciting innovations in this space.

freedom to marryState-by-State Change Is a Solution
And finally, most exciting, was the “What Winning Looks Like” session from Freedom To Marry, the nonprofit organization instrumental in the state-by-state strategy to legalize gay marriage. Their incredibly innovative digital approach helped to change public opinion and make gay marriage legal across the country. Especially in a time when the federal political system seems so broken, their approach to social change can serve as an example of how an alternative state-by-state strategy can work to change minds and laws. In fact, since Freedom to Marry is going out of business (because they have achieved their mission, how cool is that?) they will relaunch their website later this month with tools and resources for other social movements to use in their own efforts. I love it!

Lots of interesting things to chew on. You’ll hear more about these big ideas soon because I’ve convinced several of the amazing changemakers I met at the conference to participate in upcoming Social Velocity interviews. So stay tuned!

 

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Advocating for the Value Nonprofits Create: An Interview with Tim Delaney

UntitledIn today’s Social Velocity interview I’m talking with Tim Delaney, President and CEO of the National Council of Nonprofits, the nation’s largest network of nonprofits.

The National Council of Nonprofits helps nonprofits identify emerging trends, engage in critical policy issues, exchange proven practices across state lines, and advance their missions through advocacy. Previously, Tim served as a partner at a large law firm (helping prosecute the impeachment of a Governor and leading the firm’s government relations practice), Solicitor General and then Chief Deputy Attorney General (leading his state to win several cases in the U.S. Supreme Court), and founder of the Center for Leadership, Ethics & Public Service (championing ethical leadership and civic engagement).

Nell: Historically, “advocacy” has been a dirty word in the nonprofit sector. Organizations have been afraid of getting into trouble with the IRS for pursuing too much lobbying behavior. But that seems to be changing. What are your thoughts on how involved in advocacy 501(c)(3) organizations can and should be?

Tim: Yes, it’s perplexing that using words like “advocacy” and “lobbying” could get a nonprofit employee’s mouth washed out with soap. But seriously, advocacy is not just a right for nonprofits that is protected by the First Amendment; it’s a profound responsibility and effective tool to advance nonprofit missions.

Nonprofits provide a way for Americans to come together to solve problems, large and small. And they often do so through advocacy: simply standing up and speaking out for something they believe. Americans came together through nonprofits to advocate successfully in securing the right of women to vote (via suffragist groups), establishing Social Security (spearheaded by Townsend Clubs), desegregating schools (leadership by NAACP), securing civil rights (Dr. King delivered his “I Have a Dream” speech and undertook much of his work as President of the nonprofit Southern Christian Leadership Conference), and so much more.

But advocacy is not just for social movements. Advocacy includes standing up for your nonprofit’s right to be paid reasonably for services it provides under a government contract. Advocacy includes telling the story of your nonprofit’s impact to a reporter. We see advocacy as the answer to one key question: who can I talk to today to advance my nonprofit’s mission?

A barrier many nonprofits run into comes from what I call the “3 As” –uninformed academics, accountants, and attorneys who advise nonprofit boards by passing along false lore that there “might be legal problems” if a nonprofit does “too much” lobbying. Nonprofit staff come back from advocacy training fired up, but boards extinguish that passion based on false lore. After hearing stories like this from across the country, we’ve decided to turn advocacy training around. The traditional approach of “it’s legal” sought to counter the false lore, yet too often it led people to focus on arcane issues more remote than the fine print on your airline ticket or apps that you never read. Therefore, we now focus on “why” advocacy is essential to mission advancement and “why” nonprofits need to be engaged at the state level to protect against government attacks on tax exemptions, nonprofit independence, and charitable giving incentives.

As part of our effort to get nonprofits past those old barriers, we’ve joined together with Alliance for Justice, BoardSource, Campion Foundation, the Forum of Regional Associations of Grantmakers, and Knight Foundation to create Stand for Your Mission, a free website that provides nonprofit board members with information they need to be effective advocates in advancing nonprofit missions.

Nell: The National Council of Nonprofits has been on the forefront of the movement to get government to recognize the importance of funding nonprofits’ indirect costs. The recent OMB ruling mandating a minimum 10% indirect rate on most government grants and contracts with nonprofits seems like a watershed moment, but 10% is still pretty low and many nonprofits don’t understand the implications or how to benefit. What are your plans at the Council of Nonprofits to continue to move this issue forward?

Tim: As you noted, the 10% of modified total direct costs is just the minimum. For tens of thousands of nonprofits, just getting to 10% will make a huge difference. In its most recent State of the Sector Survey, Nonprofit Finance Fund found that 57% of nonprofits are being paid indirect cost rates of 9% or less. And Urban Institute found that of nonprofits reporting a problem, a quarter said that governments were paying them zero for indirect costs.

Now compare those paltry sums against research from Bridgespan showing that a more accurate range is about 25 to 35%. Certainly each case is different, but being reimbursed nothing or just 5% year after year when your real legitimate costs are always higher is debilitating, eroding effectiveness. Delivering sustained impact is impossible. So getting those nonprofits up to just the minimum will enhance sustainability to make a difference in their communities.

Importantly, 10% is just the floor. If a nonprofit is properly allocating costs and documenting its indirect costs, it can receive reimbursement for whatever those costs are, whether they are 20, 30, or even 40%. Getting paid for the true costs of delivering services can reduce burdens on nonprofits to fundraise for the difference, which frees funders from having to subsidize governments and allows nonprofits to dedicate more time to missions instead of diverted to filling funding gaps.

Seeing the OMB Uniform Guidance go into effect is just the beginning and underscores the importance of nonprofit advocacy. The mere issuance of OMB’s mandate doesn’t mean that the tens of thousands of local, state, and federal employees scattered across multiple departments, agencies, divisions, and offices will follow it or apply it properly. First, they need to become aware of it (which still has not happened), then receive training (same), and apply it consistently (same). Plus, states and localities often have contrary laws and policies on their books, requiring advocacy to change them to conform. OMB’s mandate involves a giant systems change, but the federal government still has not informed the system of what is required and the need to change policies and practices to abide by it.

David Thompson and Beth Bowsky on our team have been conducting dozens of in-person presentations and webinars across the country to ensure nonprofits are aware of their rights and how to advocate for proper implementation of the Uniform Guidance. Plus, we have been working with multiple state and local government associations to spread the word, and written numerous published pieces, including an overview, “Know Your Rights … and How to Protect Them,” that highlights potential compliance challenges.

In addition, we’re creating a series of short training modules for nonprofits to better understand their indirect costs. The key is for nonprofits with government grants and contracts to stand up for their rights to fair indirect cost reimbursement and to let their local state association of nonprofits and us know when governments are not living up to their obligations. Working through our network gives a nonprofit cover (so it isn’t fighting alone and having to worry about backlash) and strength in numbers to protect those rights.

Nell: This issue is also part of the larger movement to overcome the Overhead Myth in the nonprofit sector, the idea that “overhead” (or indirect costs) are bad and should be limited as much as possible. How close are we to truly overcoming this myth both among nonprofit donors and nonprofit leaders (who often keep themselves in these handcuffs)?

Tim: We still have a long way to go. OMB’s Uniform Guidance is a huge step forward because the federal government has now expressly acknowledged that indirect costs are legitimate and necessary. The sector needed a powerful external validating voice to overcome decades of treating mythology as orthodoxy. It’s inspiring to see that many private grantmakers have now adjusted their own policies or started to re-examine their past policies that unfairly limit payment for indirect/overhead costs.

However, the anti-overhead culture is deep seated and will take a long time to root it out. That’s true on both the funding side and the nonprofit side, given the powerful disincentives against claiming full costs. Nonprofits were forced to keep overhead artificially low by underinvesting in their infrastructure, staff training, and many other necessary expenses. Until we get so-called “watchdog” groups and reporters to stop using overhead ratios as false proxies for nonprofit efficiency (and get them to stop reporting overhead ratios as if they are a problem), and until all nonprofits are communicating with donors about their impact and what it truly costs to deliver that impact, everyone will still have work to do.

Nell: In both of these areas (advocacy and overhead) and in many others, nonprofits are treated like a second-class citizen. How do we get to a place where the critical role nonprofits play in our economy and in solutions to social challenges is recognized, and nonprofits are fully supported with the tools they need to be successful?

Tim: First and foremost, nonprofits must embrace our role as the place Americans come to solve problems and resolutely assert our role as advocates for the people and our communities. We often are on the front-line of vexing social challenges, giving us front-row seats to see the problems and the solutions. Who are we to hoard knowledge of solutions that could help our fellow neighbors? With the knowledge we hold and the clout we have (10% of the American workforce), we deserve a seat at policymaking tables. We need to proudly stand up, step forward, claim our space, and speak out for government to leverage its resources to solve problems at their source.

We need to tell the full story, not just of how many people were fed or acres preserved, but also the economic impact of the sector as a whole. For instance, CalNonprofits (the state association of nonprofits in California) published Causes Count about the economic clout of California’s nonprofits, and Donors Forum (the state association of nonprofits and grantmakers based in Illinois) released research on Social Return on Investment, showing the economic and social value of dollars invested in nonprofits.

As for being “fully” supported, that’s much more difficult. According to Nonprofit Finance Fund, last year – for the second year in a row – a majority of nonprofits didn’t have the resources to meet demand for their services. That’s going to be tough to turn around, especially as many nonprofits continue to be sliced by government budget cuts. Even as studies boast that individual giving is getting back to pre-Recession levels, that doesn’t make as much of a difference as most people think. Despite the focus on individual giving, it makes up only 9.3% of the sector’s overall revenue. Foundations are an even smaller percentage: 1.9%. Government grants and contracts make up a much larger portion – 32.3% – of the sector’s revenues. That’s why our focus in this area is so important.

Photo Credit: National Council of Nonprofits

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A Monster List of Social Change Blogs

social changeIt is (almost) Halloween again, so it’s time for my annual Monster List. I’m posting early this year because I’m gearing up for the Independent Sector conference at the end of this month.  While past Monster Lists have focused on social change books, or conferences, or tools (you can also see lists from 2014, 2013, 2012, and 2011), today’s list is about social change blogs (and online sites and social streams).

There are some incredible ones out there. Some have phenomenal long-form thought pieces, some have a really unique perspective, some are really cantankerous (I love that!), and some aren’t even blogs, but rather online aggregators or forums. Some post daily and some only post once a month or once a quarter.

But what they all have in common is that they will really make you think.

As with all of my Monster Lists, not everything on the list is directly related to social change. Rather, everything on the list has something to offer social change leaders, whether that was the creator’s original intent or not. I firmly believe that we have to get outside our normal walls and normal haunts in order to be inspired, find new solutions, and see things differently. I regularly check the places on this list because I think they have something unique and important to say. And they each help to move my own thinking and writing forward.

But I know there are many more places out there, so please add your favorites to the list in the comments.

Photo Credit: Fred Gwynne and Yvonne DeCarlo in The Munsters 1964 by CBS Television

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The Network Approach to Social Change

nonprofit networkAlthough I already mentioned (in my September 10 Great Reads list) a really interesting article about “network entrepreneurs,” I want to further explore the concept because I think it could be a game changer for nonprofit leaders willing to embrace it.

Writing in the Stanford Social Innovation Review in September, Jane Wei-Skillern, David Ehrlichman, and David Sawyer describe a “network entrepreneur” as different from, and much more effective at creating social change than a typical nonprofit leader. As they put it:

A network entrepreneur’s approach expands far beyond the boundaries of their own organization, supporting peers and partners across sectors to solve the problem. Not surprisingly, the potential for impact increases exponentially when leaders leverage resources of all types—leadership, money, talent—across organizations and sectors toward a common goal.

And this mirrors Wei-Skillern’s earlier article from 2008, “The Networked Nonprofit” where she described how a “networked nonprofit” builds alliances far beyond its own walls and is thus much more effective at creating social change that a traditional nonprofit:

Many traditional nonprofits form short-term partnerships with superficially similar organizations to execute a single program, exchange a few resources, or attract funding. In contrast, networked nonprofits forge long-term partnerships with trusted peers to tackle their missions on multiple fronts. And unlike traditional nonprofit leaders who think of their organizations as hubs and their partners as spokes, networked nonprofit leaders think of their organizations as nodes within a broad constellation that revolves around shared missions and values.

In essence, the network approach to social change is one of true leadership — leadership writ large. Because a true leader leaves their ego, and the ego of their organization, aside in order to assemble all the required resources (individuals, institutions, networks, funding) to chart a path towards larger social change. Instead of leading an organization, a network entrepreneur is, in essence, leading a social change movement.

A network entrepreneur understands that social change lives beyond any single organization. It requires someone (or a set of someones) to marshall all the necessary resources, create a larger change vision and lead people towards that vision.

This concept is so critical to nonprofit leaders who are often working with such limited resources. If instead of working to build an institution, a nonprofit leader worked to build networks, she could be much more effective at creating long-term social change.

So what does this network approach look like in practice for a nonprofit leader?

Instead of thinking just about your organization, your staff, your mission, your board, your donors, you must analyze and connect with the larger marketplace outside your walls. You need to analyze the other people and entities working on similar challenges, and not just in the nonprofit space, but also in other sectors, geographies and time periods (yes, history matters!).  Determine how other places, other people, other organizations, both past and present, addressed similar problems. You need to understand the points of leverage for attacking the problem on a much larger scale than your single organization can. Figure out who the influencers are in the space and how to connect your work with those other individuals, institutions, networks.

The network approach also requires that nonprofit leaders move away from the resource-constrained, scarcity approach that keeps them from forging alliances with other entities that might be competing for the same limited pool of funding. Instead leaders must take an abundance approach that leaves fears behind in favor of a bigger, bolder approach.

And the network approach involves having the confidence to think that there is potentially a larger solution and that you might be part of it. The dysfunctional power imbalance present for so long in the nonprofit sector has bred a crisis of confidence that keeps nonprofit leaders focused just on their own work, instead of seeing the larger picture and envisioning a larger solution or role in that solution.

The network approach to social change involves taking a big step back from the work you have always done. It requires asking a much larger set of questions. And having the faith, confidence and leadership to plug into the network for social change.

Photo Credit: Wikimedia

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Why I’m Excited About the Independent Sector Conference

independent sector conferenceLater this month I will be heading to Miami for the annual Independent Sector conference. I haven’t been to this conference before, so it’ll be new for me. And I’m excited about it for a number of reasons.

First, former CEO of Independent Sector Diana Aviv spent the last six months on a “listening tour” talking to nonprofit leaders around the country to get a sense of the trends and challenges they face. She recently announced her departure from Independent Sector to lead Feeding America. This will be her last chance to report on what she’s learned and where the sector should focus moving forward. She’s gathered the data, and she’s on her way out, so I imagine she will have lots of interesting things to say.

Because of Aviv’s listening tour, Independent Sector has organized this year’s conference around six key trends she found shaping the sector: 1) Disruption from inequality and environmental degradation, 2) Greater ethnic diversity and new generations of leadership, 3)Technology transforming learning, gathering, and associations, 4)Swarms of individuals connecting with institutions, 5)Business becoming increasingly engaged in social and environmental issues, 6)New models for social welfare and social change.

Beyond these trends, I’m also excited about the conference because it will be one of the first large, national discussions about the Performance Imperative. Launched by the Leap Ambassadors earlier this year, this new definition of a high-performing nonprofit has certainly been shared and discussed widely (including on this blog), but this is one of the largest presentations of the PI among so many nonprofit and philanthropy leaders. It will be interesting to hear what they have to say about it.

The schedule also includes some fascinating breakout sessions, like the one where Hewlett Foundation’s Daniel Stid and GuideStar’s Jacob Harold will discuss nonprofit cost structures and why we need to Pay What It Takes to Get Results. Amen! And philanthropic visionary, Lucy Bernolz’s Future of Philanthropy session should be eye opening.

Finally, this conference will be an incredibly impressive gathering of 1,000+ thought leaders and social changemakers. There are so many people on the attendees list that I’d love to meet. Perhaps I can convince a few of them to participate in a future Social Velocity blog interview.

So that’s where I’ll be the last week in October. If you can’t make it, you can view the livestream here, or follow the Twitter stream #ISEmbarks2015. I’ll be Tweeting and blogging from the conference, as time allows. If you are planning to be there, let me know, I’d love to see you!

Photo Credit: Independent Sector

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The Fundraising Event Debate Rages On

512px-Carter_and_Ford_in_a_debate,_September_23,_1976Predictably, my post last week arguing that nonprofit events aren’t efficient fundraisers caused some controversy. In particular, fundraising consultant, Gayle Gifford and I had an interesting (and very polite) debate about the post.

The exchange with Gayle really made me think and further refine my argument (which is really the point of debate, right?). What our exchange made me realize is that my issue with nonprofit fundraising events goes far beyond my belief that they are inefficient fundraisers.

Rather, my distaste for events stems from the fact that they often perpetuate the charity mindset, a destructive approach that keeps the work of social change sidelined and impoverished. The world is changing rapidly and the “charity” model doesn’t work anymore. And in fact, that model holds nonprofits back from becoming more efficient, more sustainable social change machines.

In our debate, Gayle and I discussed how events are merely a symptom of larger changes happening in the economy. As I wrote, nonprofit events are part of a:

“dying mentality that “charity” lives beside,…instead of fully integrated into, the economy. I believe that we are moving to a place where the work of social change (historically the work of “charity”) is fully integrated into the rest of the economy…the work of social change is just as important as the work of making widgets or the work of building roads and everyone understands that in order for all of it to work well, we need to finance it effectively.”

And Gayle argued that what I am describing would be a significant change to the world as we know it:

“I too long for/ and am working for the day when social justice is integrated into our economy as well as our philanthropic life… though that’s going to take some pretty massive restructuring of an economy based on unlimited resource extraction and consumption. But I still hold out that hope.”

But, as I responded, I think that kind of massive restructuring is already well underway:

I agree with you that fully integrating social change into our economy is not going to be quick or easy, but the truth is that it is already happening. There is a real convergence of the nonprofit, for-profit and government sectors and the result is that social change is now rather ubiquitous. At the same time, technology and the ways in which we communicate are changing rapidly as well. Add to that a Millennial generation that bakes social change into everything they do, and I think you start to see the beginnings of the “pretty massive restructuring” you and I are talking about. Nonprofits need to do the analysis and abandon activities that just aren’t effective. And then they need to look to some of these structural changes we are witnessing to find more efficient ways to create a sustainable financial model for their social change work.

In my mind, nonprofit fundraising events are anathema because they are symptom of a larger, ineffective way of thinking about nonprofits and the work of social change. Fundraising events are typically run as an aside, a tangential activity that sucks time and money out of a nonprofit and begs otherwise uninterested participants to pay the price of admission. These events keep charity squarely separate from the “real” work of the world.

And I truly believe we have moved past that. There are just too many social challenges to think that benevolent, reciprocity-based “charity” will work anymore. Social change must be bigger, more effective, and more efficiently financed.

When we stop thinking of the work of social change as “charity” supported in part by inefficient, occasional parties, we start creating real investment, real attention, and real change.

Photo Credit: Gerald Ford Library

 

 

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