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Fundraising

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: Philanthropy Must Get Better at Funding Scale

philanthropy and scaleNote: Second in my list of esteemed guest bloggers this summer is Adin Miller. Adin is Senior Director of Community Impact and Innovations at the Jewish Community Federation and Endowment Fund, but his post is his personal viewpoint, not necessarily that of his employer.  Here is his guest post:

 

Readers of the Social Velocity blog know of Nell’s clarion call for nonprofit financing not fundraising and her conviction that the current mode of nonprofit growth through fundraising is bankrupt. Today I want to examine another area I consider broken, namely the ineffective way in which philanthropy identifies and grows emerging organizations and projects – the domain of scaling innovation. I’ll focus on the Jewish federation system, in which I currently work, and then pull back out to the larger philanthropic sector.

To begin, let’s define innovation funding as the practice of funding an innovative venture – a new emerging organization or an iteration of an existing program within an established organization – that does not yet have evidence-based documentation of its approach but that points to the potential to generate significant social benefit. In my work, I also focus on the stages of funding an innovative venture goes through as it morphs into a scaled up nonprofit. Funding is generally aligned with the following stages:

  • Pre-proof of concept
  • Proof of concept
  • Pilot stage funding
  • Early stage funding
  • Second stage funding, and
  • Mezzanine stage funding.

By the time the organization has approached mezzanine funding, its annual budget will be growing from the $1 – 5 million level per year to the $10 – 50 million level per year.

The Jewish federation system represents one of the oldest philanthropic engines in the United States and Canada, tracing its history back to 1895. The system includes 153 Jewish Federations (local independent fundraising and grantmaking nonprofits) and over 300 Network communities (volunteer driven federations), which raise funds and distribute resources among programs serving the Jewish community. Per the Jewish Federations of North America (JFNA), each year the federation system raises and distributes “more than $3 billion annually for social welfare, social services and educational needs,” placing it among “the top 10 charities on the continent” in terms of grantmaking.

One would think that as units in an overarching system that the local federations would share a common agenda. And that’s true to a large extent – there is commonality of purpose (funding Jewish overnight camps, for instance), ongoing support for local Jewish organizations, and consistent funding support in Israel and other global Jewish communities. However, where the system fails to deliver is in scaling up innovative ventures.

Much of that failure in funding innovation is attributable to a confluence of factors such as limited geographic scope and funding periods. With the exception of international funding, for instance, each local federation fences its funding to the geographic area in which it operates. As such, a local federation won’t fund an emerging innovative venture unless it has a presence within the funder’s geographic area. That holds true even if the innovative venture has developed the best new approach to addressing a critical area of need because it operates on the other side of the figurative (and in some cases literal) river.

Additionally, many federations provide limited funding windows lasting between three to five years. The funding period is usually sufficient to help an innovative venture establish some basis to prove its concept. But it also forces these innovative ventures to focus on sustainability instead of continued growth, a syndrome similar to the starvation cycle experienced by more established organizations. This failure by the funders to adopt a long-term strategy to not only fund but also finance the continued growth of a successful innovative venture tends to prematurely end its ability to scale efforts and generate more impact.

The situation for the innovative venture is further exasperated if it concludes that continued growth can only be achieved through expansion to new locations. By virtue of each federation working independently, without an intentional approach to working collaboratively to scale an innovative venture, the “system” establishes unique markets. And each unique local market forces the innovative venture to reestablish its market opportunity. That involves seeking independent funding for each location, repetitive due diligence scrutiny (because, as we know, funders don’t proactively share due diligence data amongst themselves), and a faint hope that sustained funding or financing will materialize after the initial funding period ends.

In short, this is not an efficient method for scaling innovative ventures. It has generated pockets of nonprofit incubators in New York, Chicago, San Francisco, Los Angeles, and others. And any number of innovative ventures emerge each year – there’s even a handy guidebook to track some of the most promising ones. But there is no methodology or intentional effort on a national scale to support these innovative ventures at all stages of their potential development (from pre-proof of concept to mezzanine funding). In some sense, growth is based on a hope and prayer that another funder will step in and continue to fund the innovation venture as it looks to scale.

You can take my above critique and substitute the words “community foundations” for “federations” and you will see the same issues in the larger philanthropic sector. Just as the federation system does not effectively scale innovative ventures, neither do community, local family, and private foundations.

The absence of a coordinated national strategy to support the ongoing growth and potential impact of innovative ventures highlights the inherent inefficiencies of the philanthropic sector. The Social Innovation Fund was one potential hope that could address this challenge. But its focus remains centered on those ideas that have already generated evidence-based results. The newly announced White House initiative on impact investing with pooled resources of $1.5B might also point to a new opportunity, but it’s too early to tell.

So, what’s the potential solution to supporting scaled growth of innovative ventures?

One idea, which I first came across in the energy technology sector through a blog post published in 2011 by the Breakthrough Institute, would involve establishing an independent nonprofit investment bank to offer a range of financial tools (grants, loans, etc.) to help not only fund but also finance the growth of an innovative venture. If the federation system could pool 1% of its annual grantmaking budgets into this bank, that would create a $30 million annual fund. And if community foundations could do the same, we’d have an almost $50 million annual fund (this week’s Chronicle of Philanthropy reported that community foundations’ assets now total $66 billion and giving is nearly at $5 billion per year).

A second idea would involve creating a framework by which funders would actually work together to lower the structural and financial barriers limiting the continued growth and impact of innovative ventures.

Both ideas require more thinking and a willingness by philanthropic communities to come together to explore possible solutions. The investment bank would certainly require local funders to give up some autonomy of decision-making and local application of funding in order to provide resources for greater social benefit. The second idea would require a national or prominent organization to take the lead in organizing a coalition and developing the framework.

And if all else fails, perhaps we should consider a petition to the Bill and Melinda Gates Foundation to share its resources in more unique ways (this coming on the day the foundation received $2.1 billion from Warren Buffett).

At the end of the day, we should allow innovative ventures to succeed and fail on their own merits, instead of as result of a broken funding model.

Photo Credit: 401k2012

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Moving Beyond the Starving Nonprofit

Volunteers_of_America_Soup_Kitchen_WDCEver since last year’s release of the Letter to the Donors of America it seems there is an increasing drumbeat against the “Overhead Myth,” the idea that nonprofits must keep their overhead and administrative costs as low as possible. The fact that we are now openly talking about overhead as a myth is very encouraging.

But I think it will take a good deal of time before donors actually embrace the idea that nonprofits should stop starving their organizations of the resources they need to create and execute effective programs.

To move donors along, nonprofit leaders must lead this conversation with their own donors. Those nonprofit leaders who need more money to build a stronger, more effective and sustainable organization behind their work should educate themselves, their board members, and their donors about capacity capital.

“Capacity capital” is a one-time infusion of significant money that can be used to strengthen or grow a nonprofit organization. Capacity capital is NOT the day-to-day operating money nonprofits are used to raising and employing. Rather, capacity capital is money to build a stronger, more sustainable organization.

A nonprofit could use capacity capital in many ways, for example to:

  • Plan and execute a program evaluation
  • Plan and launch an earned income stream
  • Create a strategic financing plan
  • Hire a seasoned Development Director, or other revenue-generating staff
  • Purchase a new donor database
  • Improve program service delivery
  • Upgrade website, email marketing, and/or social media efforts
  • Launch a major gifts campaign

But raising capacity capital is not like traditional fundraising. It involves determining how much capacity capital you need, creating a compelling pitch, deciding which prospective funders to approach, and educating those prospects about the power of capacity capital. In so doing, you are not only raising the money you so desperately need, but you are also leading your part of the nonprofit sector away from the overhead myth.

Capacity CapitalThe Launch a Capacity Capital Campaign Guide can show you how to raise capacity capital for your nonprofit.

Here is an excerpt from the guide…

 

Section 1: Create a Capacity Building Plan

You cannot raise money without a plan for how you will spend it. Funders need to be convinced that you did your homework and have a clear, actionable, measurable plan for how you will invest capacity capital dollars to result in a stronger organization that can deliver more impact.

To get there, start by answering these questions:

  1. What is holding our nonprofit back from doing more and being more effective?
  2. What could we purchase to overcome these hurdle(s)?
  3. If we were able to purchase these items how would we use them and over what time frame?
  4. What can we reasonably expect to be the changes in our effectiveness and/or impact because of these things we purchased and implemented?

With your answers to these questions, put together a plan.

Start by creating 1-3 goals around the hurdles you identified in #1 above. For example, you may have identified in #1 that you don’t have adequate staff to raise enough money to achieve your mission.

So your capacity plan goals might be:

  1. Create an overall money strategy to raise $450,000 per year.
  2. Hire a Development Director to implement the plan.
  3. Secure the technology and materials necessary to raise this money (database, website, etc.)

Or, if you are a much smaller nonprofit, your goals might be more modest:

  1. Create an overall money strategy to raise $100,000 per year.
  2. Train the board on their role in fundraising.
  3. Upgrade our website to attract online donations.

Once you’ve developed your goals, make a laundry list of activities and purchases necessary to make each goal a reality. In some cases you may need outside help to determine how to get there. For example, you may not know how to put together an overall money strategy to raise $450,000, so you may have to hire a fundraising consultant to help you create that strategy. Also note roughly how long each activity will take.

So, your list of activities with a timeline for each might look something like this:

Goal 2: Train the board on their role in fundraising

  • Discuss and get buy-in from board on a fundraising training (October)
  • Find a date/location (October)
  • Research fundraising trainers (November-December)
  • Hire a trainer (January)
  • Hold training (February)
  • Follow up with each individual board member on the next steps resulting from the training (March-April)

Once you have listed all of the activities to achieve each goal of your capacity plan, highlight activities that would require new purchases. Research a ballpark figure for what each one would cost and then attach that figure to those highlighted items, like this…

 

To learn more, download the Launch a Capacity Capital Campaign Guide. And if you’d like more guidance, you can also view the Raising Capacity Capital Webinar.

Good luck!

Photo Credit: Franklin D. Roosevelt Presidential Library and Museum

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Social Technology for Social Change: An Interview with Amy Sample Ward

In today’s Soamysampleward-headshotcial Velocity interview, I’m talking with Amy Sample Ward, CEO of Nonprofit Technology Network (NTEN), the membership organization of nonprofit professionals who put technology to use for their causes. Amy leads a team dedicated to connecting individuals, organizations and campaigns in order to transition the nonprofit technology sector into a movement-based force for positive change.

Previously serving as the Membership Director at NTEN, Amy is also a blogger, facilitator and trainer having worked with groups and spoken at events in the US, UK and around the world. In 2013, she co-authored Social Change Anytime Everywhere with Allyson Kapin.

You can read other interviews in the Social Velocity Interview Series here.

Nell: For many nonprofit leaders, social media is still viewed as a sideline, rather than an integral, aspect of the work. How do you convince nonprofit leaders that social media can actually be a means of furthering their social change missions?

Amy: Social media really encompasses so many different tools and platforms. The probability that your community isn’t using ANY kind of social technology is pretty low. Every organization doesn’t have to use every tool out there. Quite the opposite! I encourage every nonprofit not to think of social media as time suck and “one more thing to add to the list”, but, instead, as a way to connect directly with community members on a much more regular basis than your other outreach in email or events. Select which platform or platforms you use by asking your community and listening first – this helps ensure that any time you do invest in social media is spent in the platforms where your community is active and you have the highest chance of success.

Nell: Because the nonprofit sector is so resource constrained, nonprofits have traditionally been somewhat insular and risk averse. How do nonprofits reconcile that approach to a growing need to be more open, collaborative, transparent and risk embracing?

Amy: If there’s fear about change, taking risks, or transparency, my suggestion is to take inspiration from and share responsibility with your community. As a nonprofit organization, you cannot fully achieve your mission on your own – you need your community to help you create lasting change in the world, so why not invite the community to help you create change in your work!

When you invite your community in, you start to embrace transparency. You also lessen the stigma of risks because you now have community members championing new ideas and helping you test and iterate to find the best approaches. You don’t have to fear changing when you are working closely with your community because doing so means working with people, and we all change every day.

Nell: On the flip side of that, is there a risk of becoming too consumed by social media and new technologies? Can nonprofits – and all of us really – become too enamored of every new shiny object at the expense of actually creating social change?

Amy: At the end of the day, we all have lots of work to do and don’t want to get distracted or bogged down by any one thing, whether that’s Facebook, Twitter, email, or meetings! I think the real risk is in letting your tools guide your strategic decisions. Social media tools are launching every day, sometimes with a lot of press coverage. It’s understandable that you could read a post or see another organization trying a new platform and think you should do it, too. Or, to let the functionality of a certain platform dictate how you decide to create and run a campaign. It’s critical that all staff have the resources and training to think and plan strategically about their work, identifying the tools last that align with their goals, community and audience, and your mission.

Nell: Technology is often considered “overhead” in the nonprofit world. How can nonprofit leaders convince funders and board members that investing in technology can have a significant return on investment?

Amy: The best thing organizations can do to prove this is by actually proving it: track and evaluate your own return on investment, share information about your budgeting and planning, and include clear information and analysis of the necessary technologies to do your work in every grant proposal and report. You can’t expect funders to invest in something if you aren’t able to convince them from the beginning.

Photo Credit: nten.org

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10 Great Social Innovation Reads: June 2014

social innovationI have to admit, June was a busy month for me with lots of travel and events, so I was less tuned into social media. Thus, I am offering a far from definitive list of the best reads from the month. But here goes…

New data on charitable giving and social fundraising, and a new effort to create a system to classify philanthropic activity made for some exciting developments. And because it wouldn’t be a great month in the world of social innovation without lots of debate, there is also plenty of criticism of philanthropists, philanthropic consultants, and business theory. It all made for a great month in the world of social innovation.

Below are my 10 favorite reads from the last month. But this month, more than ever, please add what I missed to the comments. And if you want to see a longer list of great reads, follow me on TwitterFacebookLinkedIn or Google+.

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

  1. Good news for charitable giving, it looks like total US donations will go back to their 2007 peak of $350 billion sooner than originally thought. The post-recession rebound will happen sometime this year or early next, according to new data.

  2. And adding to the data about giving, the Nonprofit Tech for Good blog shares some great statistics about fundraising, social media and mobile.

  3. The Foundation Center has embarked on a bold project to create a robust classification system for philanthropy. They have created a draft “Philanthropy Classification System,” which is a “structure for describing the work of philanthropy consisting of subjects, population groups, transaction types, and approaches (support strategies)” and opened it to public comment. Their goal is to “unleash the ability of foundations to work far more efficiently with each other and with other sectors to achieve the kind of scale that can drive real change in the world.” It’s fascinating. Take a look and give them your thoughts.

  4. The Packard Foundation is one of the great examples of foundations that understand and support nonprofit organization building. They have created a great wiki on “Organizational Effectiveness” with resources for other grantmakers interested in supporting nonprofit organization building. And my favorite resource on the list is the article from Linda Baker, a Packard Foundation program officer, urging foundations to “be the duct tape” for nonprofit grantees. Ah, if only more philanthropists thought this way!

  5. But not all philanthropy news is good news. A report on the Walton family shows that the second generation heirs to the Walmart fortune have given almost none of their personal fortune to philanthropy, despite being the richest family in America. The report and the Forbes article about it raise some interesting questions about wealth and the obligation of philanthropy.

  6. One of the newest and most talked about ways to channel money to social change is the social impact bond. But what are we learning as the pay for success movement gains steam? Gordon Berlin from MRDC shares some insights from the New York City social impact bond and demonstrates how incredibly complicated this new financing tool really is. As he says, “The future of the Pay for Success movement rests on building on the lessons learned from the first efforts to implement these new and potentially transformative financing structures.” So we need to get beyond the hype and understand if this new financial vehicle really can work.

  7. And speaking of questioning hype, Jill Lepore, writing in The New Yorker, pens a scathing critique of Clayton Christensen’s Innovator’s Dilemma. She illuminates the danger of an omnipotent theory that allows no analysis or critique. She takes Christensen’s ubiquitous business theory of “disruptive innovation” to task, arguing, “Disruptive innovation is a theory about why businesses fail. It’s not more than that. It doesn’t explain change. It’s not a law of nature. It’s an artifact of history, an idea, forged in time; it’s the manufacture of a moment of upsetting and edgy uncertainty. Transfixed by change, it’s blind to continuity. It makes a very poor prophet.”

  8. Another writer peeling away the curtain on theory that holds no weight, Phil Buchanan admonishes consulting firm FSG and the Stanford Social Innovation Review for 1) not recognizing sooner that urging foundations to create individual institutional strategies around their unique positioning and activities is flawed, and 2) failing to acknowledge that many other thought leaders have been discussing that flawed strategy for years.

  9. As an introvert myself, I loved Frank Bruni’s piece in The New York Times urging politicians to take more time alone to reflect before barreling forward. As he puts it, “Some of the boldest strokes of lightning happen in isolation, where all the competing advice can be processed, where the meaningful strands come together and the debris falls away.” Amen!

  10. If you want a visual that will blow your mind, check out Ezra Klein and Susannah Locke’s 40 Maps that Explain Food in America. Access to food is a core social challenge, and these maps lay it all bare.

Photo Credit: Spirit-Fire

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Why Nonprofit Donors and Boards Must Get Over Overhead [Video]

As I mentioned earlier, I am building a video library of topics that can spur discussion among your board and donors. So, to add to that library, today I’m talking about why we need to get over overhead.

Traditional wisdom is that nonprofits should keep “overhead” (administrative, fundraising, systems, technology, staffing) costs as low as possible. This is a really destructive idea, and we need to move beyond it. But we will only get there if nonprofit leaders across the country start having that conversation with their board members and donors. Because if we can move beyond overhead, we will have a much stronger, more effective nonprofit sector.

The transcript of the video is also below. And you can view all of the Social Velocity videos on the Social Velocity YouTube channel.

To learn more about getting over overhead and raising capacity building dollars for your nonprofit, download the Launch a Capacity Capital Campaign Guide.

Hi I’m Nell Edgington from Social Velocity. Today I want to talk about why nonprofit board members and donors need to get over overhead.

So overhead is the idea that nonprofit organizations can separate what they spend on programs and services, the mission work of the organization, versus what they spend on infrasturucture, staffing, systems, fundraising function, administrative costs. All of those things in the second bucket are typically considered “overhead.”

Now overhead, I think, is a very meaningless distinction in the nonprofit sector, and we need to move beyond it.

It’s meaningless because you can’t have exceptional programs and services if you don’t have solid staff behind them, if you don’t have evaluation systems to figure out if you are making a difference, if you don’t have a fundraising function to bring the revenue in the door to make those programs and services operate, if you don’t have the infrastructure, the technology, all of the things that you need to make those programs and services run well.

We also need to get over overhead because if you think in terms of overhead as a nonprofit organization you will not seek, nor will you attract, the funding to invest in infrastructure, the funding that so many nonprofit organizations desperately need, the funding for capacity building, for strong staff, for great technology and systems, for evaluation programs, etc. If you think in terms of overhead you are going to keep those costs as low as possible and you won’t try to bring the money in the door to support your capacity as an organization.

Finally, we need to get over overhead because if as a nonprofit organization we are measuring our work in terms of how much we spend on overhead and keeping that as low as possible, we are not measuring our work based on whether we are actually making a difference, whether we are actually creating social change. And we need to move to a place where we are evaluating nonprofit organizations based on their results, based on the social change and the outcomes that they are achieving, not how they spend their dollars.

So those are the reasons I think overhead is very destructive in the nonprofit sector, and I hope that you will talk with your board and donors about how we need to get over overhead. Good luck!

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Should Nonprofit Consultants Be Thought Leaders?

nonprofitNote: Fellow nonprofit consultant Cindy Gibson and I were asked to write an opinion piece for Alliance Magazine this month answering the question, “Should Consultants Be Thought Leaders?” There is no doubt that there is a preponderance of consultants in the social sector, some who help move the sector forward, and some who don’t. Cindy and I offer some thoughts about how to distinguish what has value and what does not. Text from the piece is below, and you can also read the piece in the June issue of Alliance.

From strategic and business planning to marketing and fundraising, there seems to be no shortage of consultants ready to help nonprofits meet all kinds of needs. But should they be thought leaders too? Because they are removed from the day-to-day experience of the average non-profit or foundation and have a breadth of perspective that comes from working with different types of organization, consultants can provide important insights to the larger sector.

But when is that thought leadership adding value to the sector and when is it just a means for hawking a consultant’s wares?

At a recent conference, a consulting firm president suggested his shop’s model was the only way to achieve social change, which caused some participants to shift in their seats. As one participant put it, ‘It’s because they’re consultants. If there’s only one solution and that’s the one they offer consulting on, that’s the approach they promote.’ There is, after all, a difference between introducing ideas to spark new thinking and marketing particular frameworks to build a consultant’s brand. At the end of the day, it all comes down to value.

Is a consultant adding value by introducing new approaches, raising hard questions, highlighting important trends, or suggesting necessary changes to systems and structure, the hallmarks of thought leadership? Or are they using ideas to package what they’re selling? Here are some key questions that might help us to make that distinction:

  1. Is what the consultant is presenting really new or just something old with new packaging?
    We’ve all fallen victim to shiny object syndrome. The next new thing can seem so appealing that it’s easy to believe the hype, but it isn’t necessarily applicable for many organizations. Before embracing a new approach, it’s important to determine whether it actually applies to the specific situation at hand.

  2. Has the consultant’s new framework been tested?
    If the new idea is really worthy of broad adoption, there should be evidence of its value. Consultants need to be transparent about whether they have this evidence and, if so, how it was collected. Was it a randomly sampled population or a few focus groups of satisfied clients? Consultants, like other thought leaders, sometimes ignore the fact that the big ideas they’ve envisioned may not work on the ground.

  3. Does what the consultant is proposing embrace the complexity of the situation?
    Social challenges are inherently difficult to resolve because change takes time and requires grappling with the messiness of ‘wicked problems’, which don’t usually respond to one best practice or even a set of discrete interventions. Wicked problems don’t come from somewhere; they come from somewheres. And so do the solutions. True thought leadership emerges from understanding and integrating a problem’s inherent complexity into a potential resolution.

  4. Is the consultant willing to engage in thoughtful debate about their ideas with those who may disagree?
    Thought leaders who are genuinely interested in moving a field invite feedback, including criticism, because they know open and honest discussion can strengthen the original idea. They’re also eager to make their ideas broadly accessible so that they become part of the larger field.

  5. Are influential people hailing the new idea as definitive when there may be little hard evidence to suggest that it is?
    While it’s nice to have the endorsement of influential people, this can sometimes be a shield against real critique. It can also suggest an echo chamber at work, where the hype around the idea is bigger than the actual value of the idea itself.

There’s no question that it’s difficult, if not impossible, to separate good marketing – which every consultant must do to survive financially – from real thought leadership. We think that consultants can and should have opportunities to stand away from their business and share what they’re learning and observing. Like other thought leaders, they can lift us out of our individual circumstances and move us to see a bigger picture.

That isn’t always easy, especially when consultants’ thought leadership is controversial. But good thinking that has the potential to transform minds and entire fields, even when it may be inimical to a brand, can sometimes lead to impact that may not be easily achieved by focusing only on clients’ individual needs. The key is knowing when and where that kind of thought leadership will add value.

Photo Credit: Eugene Atget

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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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