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10 Great Social Innovation Reads: June 2016

social changeWhat is it about June and social change? Last June was the landmark ruling by the Supreme Court legalizing gay marriage, a huge victory after decades of social change work. This June, while perhaps not as pivotal, offered some clear glimpses of impending social change.

The horrible tragedy in Orlando stirred Democrats in the U.S. House and Senate to stage protests calling for votes on gun legislation. And the United Kingdom’s vote to leave the European Union sent shockwaves around the world. Add to that some fascinating data (about civil rights and education, charitable giving, and the refugee crisis), some strong words about tech philanthropists, and a distaste for the term “nonprofit,” and it made for an interesting month in the world of social change.

Below are my picks of the 10 best reads, but if you want a longer list, follow me on Twitter @nedgington.

And if you want to see past months’ great reads lists go here.

  1. In the wake of the brutal killing of 49 people at the Pulse nightclub in Orlando, the U.S. Congress temporarily ground to a halt with a Democratic filibuster in the Senate and then a Democratic sit-in in the House, all in the name of forcing Republicans to take a vote on gun control legislation. While neither effort was successful in passing gun legislation, change may be coming, due in part to a new and growing gun control group.

  2. June also saw the shocking vote by the United Kingdom to leave the European Union (“Brexit”), a move that many argue will have a huge impact on the global economy. Much was written about the implications of the vote, but most interesting (and most related to social change) were Spencer Wells’ fascinating look at the fundamental economic, demographic and political shifts behind the vote, and Jake Hayman’s view on what philanthropy can learn from it. As he put it: “The future of philanthropy and the future of politics have to lie in something beyond the economic. Indeed it will be the ones that invite those they wish to serve into the heart of decision-making and dedicate themselves to reforming systems – rather than propping them up – that will come to thrive.”

  3. One of the reasons some in the United Kingdom voted for Brexit may be fear about the refugee crisis. Ever relevant to the issues of the day, Pew Research offers some key facts about the world’s refugees.

  4. And speaking of votes, in the November U.S. presidential election Millennials (because of their sheer numbers) stand to have a real impact. Derrick Feldmann from Achieve discusses some new research about Millennials’ particular approaches to civic engagement and how they might play out in the presidential election.

  5. Writing in The New York Review of Books, Lewis B. Cullman and Ray Madoff express “grave concern” about a fundamental shift they see in the funding of the nonprofit sector due to the increasing popularity of donor advised funds (DAFs). Donors receive an immediate tax benefit when setting up a DAF, but the donation may not find its way to the nonprofit sector for years to come. As they put it, “Donor-advised funds have been a bad deal for American society. They have produced too many private benefits for the financial services industry, at too great a cost to the taxpaying public, and they have provided too few benefits for society at large. When we consider their overall effect, we see that rather than supporting working charities and the beneficiaries they serve, they have undermined them.”

  6. One of the smartest philanthropic thinkers, by far, is Clara Miller president of the F.B. Heron Foundation. She offers a two part treatise (part 1 and part 2) on what the foundation of the 21st century should look like. She writes that foundations must learn to adapt their approach and business model: “While permanence may be a key mission requirement for some…fossilized thinking cannot be. We simply can’t succeed in a vacuum, especially when the pace and nature of the gaps we are called upon to fill have become larger and more frequent, the problems more intertwined and the needs more urgent.” Amen!

  7. Never one to pull punches, blogger Vu Le has some strong words for a particular type of philanthropist, those coming from tech companies thinking they know how to fix nonprofits. As he tells them, “Don’t think for a moment that just because you’re great at one thing, it means you have the legitimacy to give advice in an area that you have little experience and training in. I don’t go around telling you how to design apps or wifi-enabled smart light switches. If you want to truly partner to solve entrenched issues our community members are facing, then great. But first, get rid of your assumptions and ego. Otherwise, let’s agree to swipe left.”

  8. Another favorite truth teller, Phil Buchanan from the Center for Effective Philanthropy clearly articulates why the term “nonprofit” is critical and necessary: “Sometimes, nonprofits need to be the voice of opposition to those whose motivation is profit.” Yep.

  9. Giving USA released their annual data on giving in the nonprofit sector. And if you are hungry for even more data about the nonprofit sector, thanks to a a federal court order the IRS is now providing machine-readable nonprofit Form 990s from 2011 to the present.

  10. And speaking of fascinating data, the Department of Education released their annual civil rights data, which has been gathered every year since 1968 in order to assess enforcement of civil rights laws. NPR highlights some jaw-dropping findings.

Photo Credit: Kyle Pearce

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We Must Rise

leadersIt has been a rough several weeks. The horrifying brutality in Orlando was just another instance in what seems like an endless stream of gun violence. And that violence is just one of the challenges facing us, from an increasingly hate-filled presidential campaign, to growing wealth inequality, to racial unrest, to political polarization and gridlock. It seems now more than ever we need real leadership to point us toward the light.

But our nation’s leaders themselves are in turmoil. You only need to look at a recent picture of Republican Speaker of the House Paul Ryan to see how conflicted and immobilized a leader can become.

We are witnessing a time that requires true leadership. This is a time where we need more people to ask themselves, “What is the right thing to do? What is the hard, potentially unpopular, but absolutely necessary thing to do?”

I think we saw a brief moment of leadership last week when Senate Democrats staged a filibuster  to urge lawmakers to entertain a vote on gun regulation. Regardless of your politics, and the fact that the eventual votes on gun regulation were lost, I think we can all agree that it took courage and leadership for Senator Chris Murphy (D-CT) to stand up for 14 hours demanding that his fellow senators take action. His point, along with the other Senators who stood with him, was that we are experiencing a time when leadership is needed. We no longer have the luxury of simply standing by while events at odds with what we know to be right unfold.

As Senator Tim Kaine (D-VA) put it:

“In this body, we don’t have to be heroes. We just have to not be bystanders. We’ve been bystanders in this body, we’ve been bystanders in this nation, as this carnage of gun violence has gone from one tragedy to the next. To cast a vote, that’s not heroic. To stand up and say we can be safer tomorrow, we can protect people’s lives, that’s not heroic. That’s just saying, ‘I will not be a bystander.’ And that’s all we have to do.”

A true leader does not ignore the fear that it will be hard, or that they don’t have enough resources, or that they aren’t the right person. A true leader recognizes those fears and proceeds anyway. A true leader doesn’t do the easy thing, or the thing that will benefit him individually or that will benefit the group that he represents. A true leader digs deep and honestly asks — what is the right thing to do? And a true leader does that thing.

As Martin Luther King said:

The great question facing us today is whether we will remain awake through this world-shaking revolution, and achieve the new mental attitudes which the situations and conditions demand. There would be nothing more tragic during this period of social change than to allow our mental and moral attitudes to sleep while this tremendous social change takes place…We are challenged to rise above the narrow confines of our individualistic concerns to the broader concerns of all humanity.”

This is a time, perhaps more than usual, for social change leaders especially to step up. Because they are in many respects the moral compass of our country, of our world. They are the ones who are constantly thinking about a better path forward — a path that is more inclusive, democratic, fair and equitable, civil, safe and sustainable. Social change leaders are predisposed to rise up and lead us to a better way (and we are already starting to see that with work to address gun violence).

Social change leaders know better than anyone that times of enormous upheaval can also be times of tremendous opportunity. But only if we choose to act. And, more importantly, only if we are led to act.

At this moment we must not shrink from the darkness. We must not cower in the corner, or think that someone else will do the thing that we all know must be done. We must step up, we must speak out. We must dig deep and ask ourselves, “What can I do (however slight) to shift us from the course of darkness?”

And so we must rise.

Photo Credit: pixabay

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10 Great Social Innovation Reads: May 2016

social change

May offered some interesting insights into the world of social change. From a plea by nonprofit infrastructure groups for more funding, to some criticisms of philanthropy’s unwillingness to invest in rural economies or provide a realistic runway to nonprofits, to digital’s impact on journalism, to the evolving sharing economy, to a call for more nonprofit board resignations, to a way to break the nonprofit starvation cycle, there was a lot to read.

Below are my picks of the 10 best reads in the world of social change in May. But you can always follow me on Twitter (@nedgington) for a longer list.

And if you are interested in past months’ 10 Great Reads lists, go here.

  1. Perhaps the biggest news of the month was the letter written by 22 groups, which provide support to the entire sector (like the National Council of Nonprofits, the Nonprofit Finance Fund, and GuideStar), asking foundations to provide more funding for the nonprofit ecosystem. GuideStar CEO Jacob Harold (here) and National Council of Nonprofits CEO Tim Delaney (here and here) explain why this issue is so important.  But Pablo Eisenberg disagrees.

  2. National Committee for Responsive Philanthropy Executive Director Aaron Dorfman takes philanthropy to task for not investing enough in rural communities, where change is needed most. As he puts it: “The philanthropic sector continues to neglect rural communities. A changing national economy, entrenched racial inequity and foundations’ reliance on a strict interpretation of strategic philanthropy has meant philanthropic resources for rural communities are few and far between, just when the opportunities for change are most urgent. This has to change if we want to see progress on the issues we all care about.”

  3. Piling on to the criticism of philanthropy, Laurie Michaels and Maya Winkelstein from Open Road Alliance, encourage their fellow philanthropists to help nonprofits deal with risk and disruption. As they put it: “Most grant budgets are designed with zero cushion even when the nonprofit is working in tough conditions that can turn the simplest obstacle into an unmanageable issue…any unexpected but inevitable change or deviation in the budget is potentially catastrophic. The nonprofit’s inability to fluidly adapt the budget to manage these roadblocks, however minor, can jeopardize even the largest of undertakings…Risks alone are threatening, but when the concept of risk goes unacknowledged, undiscussed, and unaddressed, those risks are more likely to become realities. All this adds up to lower impact, turning manageable events into liabilities.”

  4. Maybe female philanthropists can turn the tide. The Lilly Family School of Philanthropy released some fascinating new research about how women are changing philanthropy. And Megan O’Neil, writing in The Chronicle of Philanthropy, explains how nonprofits must adapt in order to tap into this growing philanthropic force.

  5. Journalism is changing rapidly, due in part to the growth of digital. Research shows that different social media platforms connect people to news in different ways, and long-form journalism is seeing a resurgence thanks to mobile.

  6. And it’s not just journalism that digital is changing. The Nonprofit Tech for Good blog offers 16 Must-Know Stats About Online Fundraising and Social Media and 5 Ways the Internet of Things Will Transform Fundraising.

  7. The growth of the “sharing economy”, where consumers rent or borrow goods and services rather than buy them, has huge implications for the social change sector. Pew Research outlines 8 key findings about how Americans relate to the sharing economy and interviews NYU professor Arun Sundararajan about how the sharing economy is evolving.

  8. Nonprofit Law blogger Gene Takagi pulls no punches in offering 12 Reasons Why You Should Gracefully Resign from a Nonprofit Board. Yes, yes, yes, to more accountability, honest conversations, and clear expectations on nonprofit boards.

  9. Writing in the Stanford Social Innovation Review,  Jeri Eckhart-Queenan, Michael Etzel, and Sridhar Prasad discuss the findings of a new Bridgespan Group study that analyzed the indirect costs of 20 different nonprofit organizations. What they found, not surprisingly, is that indirect rates vary greatly depending on the business model and industry of a given organization (just as it does in the for-profit sector).  The authors argue that if more nonprofits understand and report their true costs, nonprofits could break the starvation cycle: “It’s clear that philanthropy’s prevailing 15 percent indirect cost reimbursement policy does not take into account the wide variation in costs from segment to segment. Doing so would have far-reaching effects on philanthropy and grantees. If nonprofits committed to understanding their true cost of operations and funders shifted to paying grantees what it takes to get the job done, the starvation cycle would end.”

  10. A nonprofit dashboard is a good way to monitor and report on a nonprofit’s effectiveness and sustainability over time. Hilda Polanco, CEO of FMA, explains how to create a great one.

Photo Credit: Omarfaruquepro

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Where Does Your Nonprofit Fit In the Market?

nonprofit puzzleAs much as we might like to deny it, nonprofits exist in a market economy, which means that nonprofits, like everything else, must compete for customers and resources. Therefore it is critical that you understand where your nonprofit fits in the market.

While a business has one customer, a nonprofit has at least two distinct customer groups:

  1. Those who benefit from a nonprofit’s work (clients), and

  2. Those who fund that work (donors, government contractors, etc).

So it is absolutely critical that nonprofit leaders understand what unique value their work brings to these customers. This can be done through a Marketplace Map, which is one of the first exercises (along with a Theory of Change) that I help nonprofit leaders create during a strategic planning process.

A nonprofit organization is best positioned to create social change in a sustainable way when their core competencies (what the organization does better than anyone else) intersects with a community need (or set of social problems) apart from their competitors or collaborators, like this:

Marketplace Map

 

But don’t get me wrong. I am not saying that a nonprofit shouldn’t collaborate.

On the contrary, nonprofit leaders must forge strategic alliances that help move the social change they envision forward. However, when they create those alliances, they must be crystal clear about what their organization brings to the table, versus what a potential ally brings to the table. Thus, a marketplace mapping exercise is absolutely critical to charting a way forward.

In order to create their marketplace map, a nonprofit’s board and staff must answer these three key questions:

  1. Core Competencies: What superior assets (expertise, relationships, etc.) do we possess as an organization that are not easily replicable?

  2. Community Needs: What community needs/social problems are we attempting to address?

  3. Competitors/Collaborators: What other entities are working on some/all of those same problems?

The social change sector has become increasingly competitive in recent years. Now more than ever, nonprofits need to understand this external marketplace of competitors/collaborators against their own core competencies in order to understand the unique value that their nonprofit can contribute.

From this marketplace mapping exercise, some key strategic questions will emerge for the nonprofit, such as:

  • Where do our core competencies and activities end, and where do others’ begin?
  • Is our nonprofit better positioned than other entities to conduct all of the activities (from our Theory of Change) that we currently do? Should some activities be left to those who do it better?
  • Are there core competencies that we must develop in order to better address the community needs we’ve identified?
  • Are there collaborators/competitors that we should be more strategic about aligning with?

Creating a Marketplace Map, much like creating a Theory of Change, is an incredibly useful exercise that gets your board and staff thinking in bigger, more strategic ways about your work. And those more strategic conversations can help lead to a more effective and sustainable path forward.

If you want to learn more about how I work with clients to develop their strategic plan, download the Strategic Plan benefit sheet.

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10 Great Social Innovation Reads: April 2016

social changeI’m a little late on my 10 great reads list this month because the GEO conference kept me busy, but there was lots going on in April. From the most pressing issues facing foundation leaders, to what history can tell us about new philanthropy and combatting xenophobia, to how nonprofits create economic value, to Millennials and social change, to state lawmakers attacking nonprofits, it was not a slow month.

Below are my 10 favorite reads from the month of April.

But if you want a longer list of what caught my eye this month, follow me on Twitter @nedgington. And if you want to see past months’ 10 Great Reads lists go here.

  1. If you read only one thing on this list, let it be Ruth McCambridge’s fascinating interview with media theorist Douglas Rushkoff. He argues that a nonprofit (or benefit corporation) business model is far better at creating value than a corporate model that operates under a “scorched earth policy.” He argues that corporations transfer value only to their shareholders, instead of the economy as a whole. As he puts it:

    “Unlike the for-profit sector, the nonprofit company can’t sell itself, and it doesn’t have shares that go up in value…the way you make money is not by making your share price more valuable and then selling those to other people…the investment that you put in the company stays in the company. You can’t extract that when you leave. So, it’s much more like a family business, and if you look at the data, family businesses do better than shareholder-owned businesses in pretty much every single metric, and they last a whole lot longer. You’re building a company not because you want to take value out of it and then use that money to bequeath an inheritance to your grandchildren, but rather you’re building a company that you hope will still be around when your grandchildren need a job, to circulate wealth when you die. That’s why I’m trying to convince Internet startups to be benefit corporations, multipurpose corporations, or best of all, nonprofits.”


  2. And if you only have time to read two things on this list, let the second thing be Phil Buchanan’s essay on the five most pressing issues facing foundation leaders, “Big Issues, Many Questions.” A thought-provoking read.

  3. Pew Research provides a cool interactive graphic of the ebbs and flows of political polarization over the last 20+ years.

  4. While we are talking about change over time, I have always thought there are great parallels to be drawn between the philanthropists born of today’s digital age and the Gilded Age philanthropists. Nellie Bowles writing in The Guardian seems to agree in her piece about the “Digital Gilded Age.”

  5. And speaking of the history of philanthropy, Alfred Perkins, writing on the HistPhil blog, sees parallels between our current xenophobic political environment and the anti-Japanese sentiment in World War Two. But back then Rockefeller Foundation philanthropist Edwin Embree fought it. And perhaps there is a lesson there for philanthropy today: “By moving boldly beyond the customary boundaries of organized philanthropy, Embree was able to challenge deeply-held prejudices, demand justice for a vulnerable minority, and extend the impact of the monies he disbursed. This pioneer of his profession would not have voiced the idea, but implicit in his words and actions is the notion that foundation executives might on occasion serve as the nation’s conscience. In these less stringent times, his example might provide useful lessons for his contemporary successors—to the benefit of the philanthropic enterprise, and the nation as a whole.”

  6. So what will the future of social change be? All eyes are on Millennials, from how they turn out to vote, to how they donate, to what they think of capitalism, to how they find housing.

  7. A recent conference focusing on “maintainers” rather than the overly popular “innovators” aimed to uncover how critical the role of those maintaining the world in which we live are. As one of the conference organizers, Lee Vinsel (assistant professor of science and technology at the Stevens Institute of Technology) put it, “The vast majority of technologies that surround us and underpin our lives are not innovations. And the vast majority of labor in our culture is not focused on introducing or adopting new things, but on keeping things going.”

  8. Nonprofits have been under fire lately by state lawmakers who are trying to make it even harder for nonprofits to do their work. Tim Delaney from the National Council of Nonprofits provides an overview on what’s happening and what we can do about it. And Erin Bradrick delves into a proposed California bill that didn’t make it out of committee but sets a dangerous precedent on legislating nonprofit overhead rate disclosure in fundraising.

  9. Particularly during an election cycle, the struggle of the modern news media becomes more evident. The Knight Foundation released a troubling report that the news media has grown less able to defend their First Amendment rights in court. And French economist Julia Cage argues in her new book that the news media should embrace a nonprofit business model in order to reflect better its social role of bolstering our democracy.

  10. Hanh Le from Exponent Philanthropy and Rusty Stahl from Talent Philanthropy make a very convincing case about why funders should invest in nonprofit talent. Let’s hope this helps turn the tide.

Photo Credit: Stepan Lianozyan via Wikimedia Commons

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GEO Guest Post: Bringing Equity to the Forefront in Grantmaking

trista harrisNote: As I mentioned last week, I am at the Grantmakers for Effective Organizations conference this week curating a group of bloggers. Next up is Trista Harris, President of the Minnesota Council on Foundations. Her guest post is below. And don’t forget you can also follow the conference from afar on Twitter #2016GEO.

Day two of the 2016 GEO National Conference was all about bringing equity to the forefront in Grantmaking. Two of the morning short talks really stood out for me:

Here’s some of what they covered.

Isaiah Oliver told a heartbreaking story about how the Flint water crisis is impacting his family directly. He said “I trusted those that said the water in Flint was safe, so I gave it to my babies. My little girls should not have to analyze public water. What if this was your child?” The EPA has said that 15 parts per billion is a safe level of lead in the water; two weeks ago there were houses in Flint that had 11,040 parts per billion. Isaiah said that “if a house is on fire, you need to get the people out and then worry about blame later.” We have not yet gotten all of the people out of the fire.

Alicia Garza said “Hashtags don’t start or sustain movements, people do.” Philanthropy is not prepared to support fast moving movements. Our structures and processes have created a situation where celebrities have given more to #BlackLivesMatter than philanthropy has. She made two critical suggestions to address this issue:

  • Philanthropy should get money to change agents while change is happening. Fund movements to fail fast and learn quickly from those failures to innovate their strategies.
  • Structural racism exists in philanthropy, and grantmakers should develop strategies to get out of the way of social movements.

The lunch plenary started with the powerful video below from PolicyLink (you can also see the video here).

Then there was a panel on Equity as an Effectiveness Imperative.

Michael McAfee, of Promise Neighborhoods Institute at PolicyLink, when given the chance for closing remarks at the Equity as an Effective Imperative plenary luncheon, said “I love all of you.” That may strike those not in attendance at the 2016 GEO conference as an odd thing for a speaker to declare to a room of 900 funders, grantmakers and organizational leaders, but in context it perfectly summed up the message of the collective speakers. For equity to truly be a part of the work in philanthropy there must be equal parts discomfort and love throughout all conversations and collaborations.

In addition to McAfee, the panel included: Minnesota State House Representative Peggy Flanagan, CEO of Meyer Memorial Trust Doug Stamm, and moderator Reverend Starsky Wilson of the Deaconess Foundation. Each of the four speakers brought a vulnerability to how they shared their personal and professional experiences with racial inequities in the philanthropic sector. And this created an open and connected space in the ballroom.

Wilson made it clear from his opening remarks that the plenary would focus on racial inequities and the uncomfortable work grantmakers face if meaningful change is to be made. Flanagan talked about her work as Executive Director at the Children’s Defense Fund-Minnesota and the impact there in creating people of color-centered and American Indian-centered spaces to talk about early childhood education. Stamm talked frankly about the heavy burden carried by the people of color at Meyer Memorial Trust as they’ve worked to make racial inequalities more than just a side conversation in their work but actually take action to make internal and external changes. And McAfee shared how sometimes talk about “equity” can be a way to avoid dealing with subtle or institutional racism.

There were powerful questions from attendees about the importance of what language is used and how it is used and how to decide when to educate a colleague about race and when to delegate that education to books or professional development. McAfee, Flanagan and Wilson shared stories of often feeling subtly or overtly ignored, othered or discounted while Stamm admitted his slow learning curve as a white person who hasn’t been forced to be aware of institutional racism.

Numerous attendees expressed on social media that this conversation resonated in ways few other conference sessions ever have. You can see the emotional and engaged responses to a moving and important conversation at #2016GEO.

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10 Great Social Innovation Reads: Jan 2016

Korean_War_Veterans_Memorial_as_seen_during_the_January_2016_BlizzardFrom an historic blizzard that blanketed the country, to tackling poverty, to the leadership of Black Lives Matter, to technology in the new year, to using social media to stop ISIS, to advice for Charity Navigator, January was an interesting month in the world of social change.

Here is my pick of the 10 best reads in January. If you want a longer list, follow me on Twitter @nedgington. And to see past month’s 10 Great Reads lists go here.

  1. Winter storm Jonas dumped several feet of snow across the country, but also offered a couple of interesting lessons in social change. First, the sheer amount of snow piled up on east coast urban streets provided a glimpse into better urban design. And after the blizzard hit Washington, DC it seems only female senators were brave enough to come to work. Among them, Senator Lisa Murkowski wondered: “Perhaps it speaks to the hardiness of women…that put on your boots and put your hat on and get out and slog through the mess that’s out there.”

  2. Writing in the Nonprofit Quarterly, Tom Klaus took issue with those who criticize the Ferguson and Black Lives Matters movements as being “leaderless.” Instead, he argued that they demonstrate a more effective “shared leadership” model: “Shared leadership…means that multiple members of a team or group step up to the responsibility and task of leadership, often as an adaptive response to changing circumstances. Multiple members may emerge to lead at the same time, or it may be serial as multiple leaders emerge over the life of a team or group.” And The Chronicle of Philanthropy profiled three of the leaders of the Black Lives Matter movement.

  3. One of my favorite bloggers, David Henderson, has made a new year’s resolution to write more often. Let’s hope he keeps it up because he offered us two great ones this month. First, he wrote a scathing critique of the nonprofit and philanthropy sectors for not standing up against presidential candidate Donald Trump’s hate-filled ideology. And then he took it further in a later post arguing that the philanthropic sector must get more political: “It seems a strange consensus that philanthropy and politics do not mix. Yet it is our politics, and more specifically our collective values, that creates the maladies we aim to address. Martin Luther King was a civil rights pioneer not for creating a nonprofit that provided social services to help African Americans live a little better, but by challenging the laws and social values that subjugated a significant portion of our community. Social interventions like homeless shelters, food pantries, and tutoring programs are fundamentally responses to injustice. While these programs are wrapped in apolitical blankets, they are plainly and intuitively critiques of the system we live in.”

  4. And speaking of critiques, columnist Tom Watson wrote a sharp commentary on American philanthropy arguing that it is going the way of American politics — moving from democracy towards plutocracy: “The disparity between democratic philanthropy and its plutocratic cousin is nowhere more apparent than in the importance placed on the Facebook co-founder’s commitment to giving away much of his vast personal fortune compared with the potential of the largest digital social network in the nation. Mr. Zuckerberg’s billions may create major causes and eventually steer public policy, but many nonprofits will struggle to find in their budgets the money required to purchase desperately needed social-media eyeballs from his advertising department. If there’s a better example of the power gulf in American philanthropy, I’m not sure what it is.”

  5. And other critiques of philanthropy in January went even further, with some arguing that modern American philanthropy attempting to address growing wealth inequality (illustrated by a new Oxfam infographic “An Economy for the 1%“) is a paradox because philanthropy itself emerged from the wealth excesses of capitalism.  A new book by Erica Kohl-Arenas argued that philanthropic interventions to solve poverty have been flawed because they don’t address the structural issues causing the poverty in the first place. And her argument was extended when she wrote about her view of a January 7th public event at the Ford Foundation where Darren Walker (who recently announced a new foundation focus on overcoming poverty) and Rob Reich discussed these issues.

  6. Caroline Fiennes argued that nonprofits should not try to “prove their impact,” since proof of impact is impossible, but rather use evaluation to gain knowledge that can help “maximize our chances of making a significant impact.” Patrick Lester, writing in the Stanford Social Innovation Review, offered a similar caution about outcomes, but this time to the Obama administration: “A dose of…realism, combined with a greater reliance on evidence and a willingness to learn from the past, could transform the administration’s focus on outcomes into an important step forward. By openly acknowledging the challenges and dangers, recognizing the difference between mere outcomes and true impact, and demonstrating how this time we will do better, the administration could show that what it’s really calling for is not just an outcomes mindset, but an Outcomes Mindset 2.0.”

  7. Speaking of proving results, Charity Navigator’s new leader, former Microsoft exec Michael Thatcher, and the board that hired him came under attack in January for not moving quickly enough away from rating nonprofits on financials and towards rating them based on results.   But Doug White, writing an opinion piece in The Chronicle of Philanthropy and who created the beginning data behind Charity Navigator many years ago, took it even further took it even further: “Charity Navigator is far worse than nothing. The best that could happen is for the group to sink into oblivion, with no charities, no news outlets, and no donors giving it any thought. Or the group could take serious steps to grow up, humbly taking the time and effort to truly try to understand the charitable world.”

  8. Wanting to get further into the social change game, Facebook COO Sheryl Sandberg announced a new effort to use Facebook “Likes” to stop ISIS recruitment efforts on social media. It will be interesting to see how effective this slacktivism effort becomes at creating real change.

  9. Kivi Leroux Miller released her annual Nonprofit Communication Trends Report, including lots of data about how and where nonprofits are marketing. And while she found that YouTube is currently the #3 social network for nonprofits, that may change since YouTube just announced new “donation cards” that allow donors to give while watching a video.

  10. And finally, in January we lost David Bowie. But Callie Oettinger urged us not to be sad, but rather, inspired: “I [am] comforted in thinking of Bowie…on Mars, mixing it up with other artists…a place where the greats go to keep an eye on the rest of us and send down jolts of inspiration from above.” Yes.

Photo Credit: Northside777

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5 Nonprofits Trends to Watch in 2016

Poster_of_Alexander_Crystal_SeerThis is my favorite time of year. Despite the darkness of the last few months, December is often about reflecting on the year that is drawing to a close and hopes for the new one coming.

And as is my tradition on this blog, I like to look ahead at the trends that may affect the nonprofit sector in the coming year. I have never claimed to be a clairvoyant, but I am an admitted optimist, so my predictions are less about telling the future and more about wishful thinking. This year, more than ever, I want to see opportunity amid the uncertainty and the challenges we face.

So here are 5 things I’m really hopeful about for the nonprofit sector as we head into 2016.

You can also read past Nonprofit Trends to Watch lists for 2011, 2012, 2013, 2014 and 2015.

  1. New Opportunities for the Nonprofit Sector to Lead
    A growing recognition of the value of the nonprofit sector paired with a rising confidence among nonprofit leaders will create opportunities for nonprofits to step up and create opportunity out of the seemingly mounting pile of challenges (like terrorism, natural disasters, political gridlock). The nonprofit sector’s natural place — its core competency — is in righting imbalances and it often coalesces in times of trouble. We are already seeing really exciting collaborations and innovations aimed at increasing civic engagement and winning equal rights, to name a few. Call me an optimist, but I think the challenges we face are merely a precursor to the emergence of a stronger social sector ready to find new solutions.

  2. Increased Use of Protests 
    And as evidence of social movements emerging from challenges, we are seeing an uptick in social protests. This year we’ve seen some impressive organized demands for social change. From Black Lives Matter, to student protests on college campuses, to Chicago protests demanding the mayor’s resignation, people are rising up to demand change. While their methods somewhat mirror the protests of the 1960s and 1970s, their access to and use of technology is quite new. It will be interesting to see how these movements evolve and how much change they will be able to accomplish.

  3. Greater Emphasis on Networks 
    And these protests, like any social change effort, will be more successful if they embrace the use of networks. I think there will be a growing recognition that nonprofits must build networks in their social change efforts. They must understand the points of leverage for attacking a problem on a much larger scale than a single organization can and then figure out who the influencers are in their space and how to connect their work with those others. Because the network approach 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, I think (hope) we’ll see more nonprofit leaders move to an abundance mentality that leaves fears behind in favor of a bigger, bolder, more networked path.

  4. More State-by-State Strategies 
    The stunning victory this year legalizing same-sex marriage demonstrated the tremendous success that a state-by-state (as opposed to a national) approach to social and political change can have. Indeed, because of political gridlock at the federal level, other social change efforts (like Represent.us and the legalization of marijuana) have found success at the state level where changing minds and changing policy is sometimes easier and more efficient. But this isn’t a new idea. In fact according to research compiled by Bloomberg Business, social and political change in America follows a pattern: “A few pioneer states get out front before the others, and then a key event—often a court decision or a grassroots campaign reaching maturity—triggers a rush of state activity that ultimately leads to a change in federal law.” Though the idea isn’t a new one, I think it may gain traction as more social movements find a state-by-state approach increasingly attractive.

  5. Smarter Funding
    But to pursue more successful models, like the use of networks and state-by-state strategies, nonprofits must have the necessary funding runway to get there.  So I’m hopeful that funders will increasingly recognize that nonprofits need more flexible and effective funding (like unrestricted dollars and capacity capital). There are already encouraging signs. The Ford Foundation has moved to provide more unrestricted support (and encouraged other funders to build the capacity of nonprofits) and the federal government released new guidelines this year providing more indirect funding to nonprofits. So let’s hope we see more foundation, individual and government funders providing nonprofits more of the kind of money they really need to create solutions.

Photo Credit: Library of Congress

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