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Economy

5 Nonprofit Trends to Watch in 2015

5 Nonprofit Trends to WatchI 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.

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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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

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A Monster List of Social Change Books

Monster ListIt’s Halloween again and that means it’s time for my annual Monster List of Resources (you can see past lists here, here, and here).

Today I’m focusing on social change books. I know, books are so over. We have become a society that is about fewer and fewer words, or really, fewer and fewer characters. But there is something to be said for spending 200+ pages really diving into a topic, exploring it and letting it change your point of view. Below are my favorite books in the social change realm.

I have reviewed some of these books on the blog, some I have not. Some are really old, others are brand new. And some are not about social change at all, yet I included them because I think they hold value for social changemakers.

Each of these books has helped me see my work and the work of social change in new ways, even if that was far from what the author intended. Perhaps you will think so too.

Here are my favorite social change books:

What are your favorite social change books? Please add to the list in the comments below.

Photo Credit: CBS Television

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Big Cities Don’t Own Social Innovation

social innovationWe spend a lot of time in this country talking about innovation, particularly on the East and West coasts. But I was reminded recently that innovation can happen anywhere, even in the “fly over states” (which is such an obnoxious term, by the way).

I was in South Boston, Virginia last week to deliver a Financial Model Assessment to the Halifax Educational Foundation. They fund the Southern Virginia Higher Education Center (SVHEC), which is a fascinating model of higher education innovation.

Almost 30 years ago community leaders in this tiny, rural town 75 miles from Raleigh, North Carolina realized that their primary industries of tobacco, textiles and furniture were fading fast. In order to revamp their local economy, they decided to create a hybrid higher education institution (part community college, part incubator, part workforce development site, part educational broker) that would prepare the next generation workforce.

The SVHEC renovated two 150-year old abandoned tobacco warehouses (one to LEED certification) into 100,000 square feet of high-tech classrooms and labs featuring advanced machining and simulation technology focused on nursing, advanced manufacturing, 3-D modeling, and the business of art and design. Their goal is “to re-tool southern Virginia’s rural workforce for jobs in the New Economy.”

They have created an example of what innovative higher education can look like. The video below describes the center, which although located in the middle of rural America, rivals most large city higher education institutions:

The SVHEC recognized early the threat that changing times posed to their community and created a solution that not only recycled beautiful old buildings, but more importantly breathed new life into a rural economy on the brink of extinction. Theirs is truly a model for innovative rural economic development.

And it is testament to the fact that social innovation can happen anywhere.

Because social change doesn’t require big names, huge ideas, or deep pocketbooks. It simply demands a confident vision and the leadership and tenacity necessary to execute on it.

Photo Credit: SVHEC, Steve Helber

 

 

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10 Great Social Innovation Reads: August 2014

social innovation readsBetween my own time away from social media in August, the general end of summer quiet, and of course, the glut of posts about the Ice Bucket challenge (of which I have already said my piece), my list of great reads in August is admittedly slim.

But there was some interesting debate, most notably about “strategic philanthropy” and about ratings agency Philanthropedia. Also, calls for more nonprofit leadership development and for nonprofit leaders to get out of their own way by taking the Overhead Pledge. Throw in a little Mark Twain, some sharing economy, and a dash of Millennial analysis and you have a pretty good month in the world of social change.

So below is my pick of the 10 best reads in the world of social innovation in August. For an expanded list you can follow me on TwitterFacebookLinkedIn or Google+. And you can see past months’ 10 Great Reads lists here.

  1. Leadership development is a woefully underfunded need in the nonprofit sector. Indeed from 1992-2011 only $3.5 billion of the nearly $287 billion dollars granted by foundations went to support leadership. In order to get more foundations investing in leadership development, Rusty Stahl offers case studies of 9 foundations who already do.

  2. In the summer issue of Stanford Social Innovation Review, the lead article “Strategic Philanthropy for a Complex World” caused quite a stir in the philanthropy world with many arguing that there is not much new there. In August, Alliance Magazine ran a series of editorials by philanthropy leaders as counterpoints. Most interesting among them was Avila Kilmurray’s, former director of the Community Foundation of Northern Ireland, response, in which she said “Can we not just recognize that when any funder sets her/himself the task of addressing complex issues…there needs to be provision for continuous consultation, practice, reflection and change?”

  3. An interesting article in the New York Times paints the Millennial generation as a very communal-minded one, where “the highest value isn’t self-promotion, but its opposite, empathy — an open-minded and -hearted connection to others.” From working, to eating, to shopping it seems Millennials bake social into everything they do. How will the world be different if that holds true as they age?

  4. Writing in Forbes, Tom Watson asks whether nonprofits should participate in GivingTuesday. As he puts it, “Is #GivingTuesday a well-meaning marketing promotion – or is it a real, organic movement for change?…[Does it] seek to increase U.S. giving from 2% of GDP (where it’s been stuck for two generations) to some higher point?” Amen to that!

  5. Rating nonprofit effectiveness is such a tricky challenge. Philanthropedia, one rating system that is driven by crowdsourced feedback from experts, comes under fire from the clean water space for being just “a popularity contest.” But others claim it’s an improvement over previous evaluations.

  6. Writing in the Chronicle of Philanthropy Nicole Wallace shows the value of sharing data by profiling Crisis Text Line, which gives other nonprofits, researchers and government agencies access to their data of 60,000 counseling sessions with teens in crisis to use in their own programs. It begs the question whether other social change data could be shared and how we make that easier to do.

  7. Sue Dorsey from Water for People was among a group of nonprofit leaders at the InsideNGO conference who took the Overhead Pledge in August, vowing to fully disclose the true costs of their nonprofits. And she encourages other nonprofit leaders to follow suit. This is exciting because it is not enough for funders to get over the overhead myth, nonprofit leaders must as well.

  8. I am always a sucker for connecting literature and/or history to social change, and even better both, so David Bonbright’s post about how Mark Twain would have viewed recent trends in business is fascinating. Bonbright argues that Twain wanted American business to fully integrate profit and community. And we are beginning to witness this trend again where companies are “embracing the full implications of what they are – what they mean for the environment, for communities, for the most marginalized people affected by their supply chains…[because] this is best way to remain competitive and successful over time.” Let’s hope!

  9. The new “sharing” economy is not all good, but not all bad either, as Daniel Ben-Horin argues that “there are enormous opportunities for the social sector to engage with the values-driven segment of the sharing economy.”

  10. Finally, some guidance on making your nonprofit email marketing more mobile friendly and your website better able to connect people to your cause. It’s all about responsive, engaging design.

Photo Credit: Seth Anderson

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Speaking About A Changing Nonprofit World

Nell EdgingtonOne of the things I love most about what I do is the opportunity to speak around the country to nonprofit and philanthropic leaders about new approaches. The nonprofit sector and the philanthropy that funds it are changing dramatically, which can be unsettling, but can also be an incredible opportunity for nonprofit leaders to find a better way to reach their goals.

This Fall I’m particularly excited about some great speaking opportunities I have coming up. If you will be at any of these events, please let me know, I’d love to connect there.

And if you’d like to learn more about having me come speak at your event, or to your board, staff or donors, check out the Social Velocity Speaking page.

Here are my upcoming engagements:

Ecotrust

August 1st, Portland, Oregon

I’m delighted to have such a groundbreaking nonprofit, Ecotrust (which inspires more resilient communities, economies, and ecosystems around the world) hosting me at a lunch event for Portland nonprofit leaders. I’ll be speaking to the group about new ways to finance their work. I’ll describe how clarifying the work their nonprofit does and connecting that to a robust financial model can transform their organizations’ financial sustainability and ability to create social change.

AFP Symposium on Major Gifts

October 10th, Seattle

I’ll be kicking off the symposium with a talk on “Moving From Fundraising to Financing,” where I’ll show nonprofit leaders a new, more effective way to fund their work. As donors shift from a “charity” mindset to an impact and investment view, nonprofit leaders must articulate the social change they seek, develop a robust and sustainable financial model for their mission, and make their donors partners in the work. We’ll discuss how to uncover the most important building blocks of creating an integrated approach to engaging people in the mission.

Philanthropy Southwest Conference

November 5th-7th, Phoenix

At this year’s annual conference of grantmakers, I’ll be serving on a panel titled “The Power of Investing in Nonprofit Capacity.” Ellen Solowey, Program Officer at the Virginia G. Piper Charitable Trust; Darryl Tocker, Executive Director of the Tocker Foundation; and I will discuss foundations that make capacity investments in nonprofits. We will explore how funders can collectively address nonprofit capacity constraints such as financial instability, disengaged boards, lack of funding for professional development, and the need for long-term planning.

Nonprofit Education Initiative

January 22, 2015, Hailey, Idaho

At this gathering of nonprofit leaders I’ll be leading a session titled “Messaging Impact.” More and more donors are interested in funding organizations that can demonstrate impact, or change to a social problem, as opposed to organizations that only talk about their needs. If a nonprofit leader can create a message of impact, she will be able to raise more money over a longer period of time. I’ll explain how to create a message of impact to encourage more donors to invest in the long-term work of a nonprofit.

It’s going to be a great Fall. I hope to see you at one of these events!

 Photo Credit: Social Velocity

 

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Guest Post: Millennials and Boomers MUST Make Peace

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

Here is Robert’s post:

 

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

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

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

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

Yeah…I said centuries!

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

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

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

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

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

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

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

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

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

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

Photo Credit: Wikipedia

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10 Great Social Innovation Reads: May 2014

social innovationDoes it seem like there is more open debate lately in the social sector? Or maybe I’m just attracted to discussions where the gloves come off and (let’s hope) transformative conversation happens. That was the case in May where philanthropic transparency, nonprofit leadership, and donor acceptance policies were all up for debate.

Add to that some really interesting developments in the new “sharing economy”, net neutrality, and use of big data, and it was another great month in the world of social innovation.

Below are my 10 favorite reads from the last month, but please add what I missed to the comments. And if you want to see a longer list of great reads, follow me on Twitter, Facebook, LinkedIn or Google+.

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

  1. Writing in the New York Times, Frank Bruni criticizes some nonprofits for accepting donations from donors who actually undermine the cause. These nonprofits, in effect, end up whitewashing the philanthropists, “Some [philanthropy] is prophylactic or penitential: The polluter supports environmentalists, while the peddler of sugary soft drinks contributes to campaigns against obesity.”

  2. And philanthropists themselves were far from criticism this month. Writing in The Atlantic, Benjamin Soskis believes it is critical for a healthy democracy that philanthropists go under the microscope, in fact: “Given the power that private philanthropy can wield over public policy, a spirited, fully-informed public debate over the scope, scale, and nature of that influence is a democratic necessity.” Phil Buchanan from the Center for Effective Philanthropy agrees. And to that end, May saw the launch of Philamplify, the National Committee for Responsive Philanthropy’s attempt at a Yelp-like review site of foundations.

  3. In a long (but well worth the time) piece, Albert Ruesga from the Greater New Orleans Foundation lays bare his antipathy toward his fellow philanthropists: “We grantmakers, myself included, act as arrogant elites, drawing arrows and triangles on the whiteboards of our well-appointed conference rooms with no one around to challenge our flawed thinking. We strut about like giant roosters puffing out our breast feathers and clucking incoherently about ‘disruption’ and ‘theories of change.’ We look foolish to everyone except ourselves and those even more foolish than we are.”

  4. But there are bright spots. Daniel Stid from the Hewlett Foundation takes to the Hewlett blog to refreshingly demonstrate funder transparency and explain “What Went Wrong in Our Democracy Grantmaking.” And Peter Buffett, son of Warren Buffett and author of a scathing critique of philanthropy last year, has a fascinating debate/very civilized exchange with ethicist William MacAskill about how effective (or harmful) philanthropy can be.

  5. We are living in the era of big data, and this month there were some really interesting examples of how data can be used to make things better. First, UPS uses data to improve driver performance and profitability. The University of Texas at Austin is doing some fascinating things with data to help at-risk students graduate. And some nonprofits are using data to improve fundraising effectiveness.

  6. Last month saw the first-ever sharing economy conference. This new idea – that our economy is evolving to a point at which goods, services, ideas are all shared – has serious implications for the social sector. Lucy Bernholz and Beth Kanter break it down for us.

  7. And a key part of that sharing economy is an open Internet. But the FCC is considering changes to rules that would allow a “two-tiered” Internet where those with means can pay more for faster service. The Benton Foundation did a nice summary of developments around net neutrality. And the Electronic Frontier Foundation organized to let voices be heard by the FCC.

  8. Innovation is hard work. So when the work of creating social change drags you down, you only need look as far as Steven Pressfield for inspiration, “When we’re stuck, when we’re freaking out, when it all seems too much too soon too crazy, remember: that’s only how it seems to us, confined within our limited point of view. From the universe’s perspective, all is as it should be. Sooner or later, you and I will stop fighting and let the symphony/supernova/baby be born.”

  9. Using data from the Nonprofit Finance Fund’s most recent State of the Sector survey, work by state associations of nonprofits, and new Uniform Guidance for federal grants from the federal Office of Management and Budget, Beth Bowsky from the National Council of Nonprofits charts some positive developments in government funding the true costs of nonprofits’ work.

  10. Never one to sugar coat it, in an interview on the Idealist blog, Robert Egger describes his vision for the next generation of nonprofit leaders: “Our society needs an elevated nonprofit sector, but to get there, we need people who are prepared to challenge antiquated ideas about the role we play in the economic and political process.”

Photo Credit: Mo Riza

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A Summer of Nonprofit and Philanthropic Thought Leaders

Nonprofit leadersNow that Memorial Day has come and gone, and summer is (almost) upon us, I’m excited to announce that I’m doing something a little different on the blog this summer.

In addition to the Social Impact Exchange conference I mentioned earlier, I will be traveling a lot this summer connecting with nonprofit and philanthropic leaders. I’ll be blogging about what I learn in my travels and conversations. And, I’m really excited to announce, that I have an amazing group of guest bloggers who will be posting throughout the summer as well.

These guest bloggers are people who really make me think and will offer some really interesting perspectives. I’ve invited them each to take over one Social Velocity blog post sometime during the summer.

Below is the guest blogger lineup with some background on each of them. Their posts will begin in late June. And I will continue to post throughout the summer as well.

Social Velocity Summer Guest Bloggers

Robert EggerRobert Egger
Robert is the founder of DC Central Kitchen and LA Kitchen, as well as the nonprofit sector advocacy group, CForward. Robert was included in the Non Profit Times list of the “50 Most Powerful and Influential” nonprofit leaders from 2006-2009, and speaks throughout the country and internationally on the subjects of hunger, sustainability, nonprofit political engagement and social enterprise. He is a tireless advocate for the nonprofit sector, encouraging nonprofits to take their rightful seat at the table. He is always pushing us to think bigger and smarter about social change. You can read my past interview with him here and my post about CForward here.

 

David HendersonDavid Henderson
David is the founder of Idealistics, a former social sector consulting firm that helped organizations increase outcomes, demonstrate results, and organize information. He has worked in the social sector for the last decade providing direct services to low-income and unhoused adults and families, operating a non-profit organization, and consulting with various social sector organizations and foundations. David’s professional focus is on improving the way social sector organizations use information to address poverty. He writes his own blog, Full Contact Philanthropy, which I highly recommend. He will make your head hurt, but in a really good way. You can read my interview with him here and watch the Google Hangout he and I did about Using Real Performance Data to Raise Money.

 

jessamynJessamyn Lau
Jessamyn is Executive Director of the Peery Foundation, a family foundation based in Palo Alto, California. The Peery Foundation invests in and serves social entrepreneurs and leading organizations in the San Francisco Bay Area and around the world. Jessamyn helps shape the foundation’s strategy, develops programs, strengthens the foundation’s portfolio, and supports existing grantees. Her experience as part of the founding Ashoka U team has given her the perspective and skill-set to help the foundation develop new methods to support and build the field of social entrepreneurship. You can read my interview with her here.

AdinMillerAdin Miller
Adin is Senior Director of Community Impact and Innovations at the Jewish Community Federation and Endowment Fund. In this role, he develops new strategies and programs to bring about change and impact within JCF’s mission. Adin focuses on defining metrics to document impact, maximizing measurable impact and increasing the visibility of the organization. Prior to JCF, Adin was a nonprofit consultant and had his own blog, Working in White Space, which was phenomenal. You can read my past interview with him here.


Laura TomaskoLaura Tomasko
Laura is a network developer at the Council on Foundations, where she tracks philanthropic trends and builds relationships with leaders advancing the common good across sectors. She also leads an impact investing initiative and regularly interacts with those interested in the changing landscape of social good. Previously as manager of public-philanthropic partnerships, she built the capacities of federal agencies interested in partnering with foundations. Before joining the Council, she worked at Grantmakers for Effective Organizations and at the Central New York Community Foundation. Laura has been named a Global Shaper by the World Economic Forum. She is also a StartingBloc Fellow and writes for UnSectored, serving on advisory boards for both organizations. You can read my interview with her here.

So there you have it. A summer guest blogging lineup that I am thrilled about. I can’t wait to read what they all have to say. Stay tuned!

Photo Credit: Holger.Ellgaard

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