This week I attended the After the Leap conference in Washington D.C. and was blown away. As I mentioned in a post earlier this year, the conference was organized by Social Solutions and PerformWell partners Child Trends and Urban Institute and builds on the momentum Mario Morino has created around his book, Leap of Reason, published in 2011, and the companion book Working Hard & Working Well by David Hunter published this year.
This first-ever conference was an attempt to bring the nonprofit, philanthropic and government leaders who are on the cutting edge of the movement to create a higher-performing social sector together to, as Mario put it “grow a critical mass who can mobilize for greater change.”
What’s Government’s Role in Nonprofit Performance?
Day 1 focused on government’s role in driving social sector performance management. A fascinating panel of government agency leaders, moderated by Daniel Stid from the Hewlett Foundation, discussed various efforts at the federal, state and local government levels to drive evidence-based policy and practice. But some in the audience and Twitter-verse wondered whether government could really be the impetus for a greater push towards measuring and managing outcomes in the nonprofit sector.
How Do You Get Buy-In For Change?
From the big, systemic view, the day quickly shifted for me to the organization-level with the fantastic panel on “Getting Buy-In” from staff, board and funders for a shift towards performance management. Isaac Castillo from DC Promise Neighborhood Initiative, Bridget Laird from Wings for Kids, and Sotun Krouch from Roca explained how they had moved their nonprofits toward articulating and measuring outcomes. The most effective approach seemed to be to ask “Don’t you want to know whether the work we are doing is helping rather than hurting?” Isaac made the urgency to move toward performance management clear, “If you haven’t started doing performance management yet, in 12-18 months you will start losing funding to those who are.”
Can We Convince Funders to Invest?
Day 2 of the conference kicked off with an inspiring keynote address by Nancy Roob from the Edna McConnell Clark Foundation that really served as a call to action for the foundation world. Nancy painted a pretty stark picture of the disconnect she saw between how much money we’ve spent on solving social problems in the last decades and how much actual progress we’ve made. She blamed this disconnect on “our piecemeal approach to solutions.” As she bluntly put it, “We are woefully under-invested in what we already know works.” She laid out 5 steps funders can take to move away from piecemeal and toward transformational social change:
- Make bigger, multi-year investments
- Provide more upfront, unrestricted, flexible capital
- Invest in nonprofit evidence building
- Scale what works with innovation, and
- Adopt an investor mindset
But for Nancy, it’s not just up to funders, nonprofits also need to change. She urged nonprofits to:
- Shed the charity mindset
- Focus on the larger context
- Create a performance management culture, and
- Ask for help to achieve performance
From there, Phil Buchanan from the Center for Effective Philanthropy led a panel with Carol Thompson Cole from Venture Philanthropy Partners and Denise Zeman from Saint Luke’s Foundation asking “Do Funders Get it?” While a few funders are willing to invest in helping nonprofits articulate, measure and manage to outcomes, most are not. The panel suggested that some of this reluctance stems from funder’s lack of humility and fear of what they might find. Audience members suggested that it might also be funders’ lack of performance expertise. (You can read Phil Buchanan’s blog post giving more detail on this panel here.)
From there I attended a breakout session “Funder Investment Strategies to Strengthen Nonprofit Performance Management Capacity” where Victoria Vrana from the Gates Foundation and Lissette Rodriguez from the Edna McConnell Clark Foundation and two of their grantees discussed how they worked together to fund and create performance management systems.
The final panel of the day brought an impressive group of nonprofit CEOs together (Mindy Tarlow from Center for Employment Opportunities, Sam Cobbs from First Place for Youth, Cynthia Figueroa from Congreso de Latinos Unidos, Bill McCarthy from Catholic Charities of Baltimore, and Thomas Jenkins from Nurse-Family Partnership) to talk about how they each had built a performance management system at their organizations, the hurdles they encountered, how they funded it, and where they are now.
Where Do We Go From Here?
Mario Morino rounded out the conference with an inspiring call for us to build momentum. He outlined some new ideas coming out of the conference that he’d like to see developed by 2020, including:
- A “Manhattan Project” of social sector evidence
- A National Commission on Nonprofit High Performance
- An Aggregated Growth Capital Fund to deploy billions to solve entrenched national problems
- A Performance Academy for Social Impact
- Presidential Performance-to-Impact Awards
- Social Sector Center for Quality Improvement
- A Solutions Journalism Network to “lift up the hope spots” in the country
- Leap Learning Communities in local settings connected in a national web
This was one of the best conferences I’ve been to in years. The caliber of the presenters and audience was amazing. It felt like I was witnessing the birth of the next generation of the social sector. Buoyed by the ability to see the writing on the wall, this group is determined to lead the fundamental, and critical, shift towards a more effective sector.
The urgency of this movement became increasingly clear through the course of the two days. Our country is witnessing mounting disparity and crippling social challenges. It is increasingly up to the social sector to turn the tide. And the time is now. As Mario charged at the end of the conference “If we don’t figure out how to build high performing nonprofits, nothing else matters. This is the last mile. Our nation depends on it.”
Photo Credit: tableatny
In today’s Social Velocity interview, I’m talking with Bill Shore. Bill is the founder and chief executive officer of Share Our Strength, a national nonprofit working to end childhood hunger in America. He has served on the senatorial and presidential campaign staffs of former U.S. Senator Gary Hart and as chief of staff for former U.S. Senator Robert Kerrey. He is also the author of four books focused on social change, including, The Cathedral Within.
You can read past interviews in the Social Innovation Interview Series here.
Nell: You’ve been on a (writing) kick lately encouraging nonprofits to make bigger, bolder goals. Which do you think comes first: bold goals or a sustainable financial model? And how are the two related?
Bill: Just as every journey aims toward a destination, every social change effort should start with a goal, bold or otherwise. A sustainable financial model, while critical, is a means to an end, not an end in and of itself. We began Share Our Strength with a financial model based more on cause-related marketing and corporate partnerships than on traditional fundraising. By leveraging the assets we’d created and delivering measurable value back to our partners, we generated significant revenues in ways that felt more sustainable. We were a grant maker to other organizations, and proud of the good work they did, but ultimately it was unsatisfying not connected to a bold goal.
Nell: The stated bold goal of Share Our Strength is to eradicate childhood hunger in America by 2015. That’s 2 years away. Will you get there? And how has your experience working toward that bold goal affected your thinking about how realistic bold goals are?
Bill: It’s a great question because a bold goal is a double edged sword. If you achieve it the market will reward you. And if you don’t it may penalize you. That’s all as it should be. But the real reason to do it is not the market or fundraising or the media, but for oneself. When you devote a lot of your life tackling tough social problems, you deserve to know whether you are moving the needle. We’ve seen the market reward Share Our Strength for simply setting the goal of ending childhood hunger by 2015. Our revenues have more than doubled, and that has fueled increased impact. We will not get all of the way to our goal by 2015. We will need more time. But we believe we will have earned it. In the states and regions where we have concentrated our resources we will have proven that childhood hunger can be eradicated. We believe that such compelling proof of concept will give us the support necessary to scale the strategy everywhere.
Nell: You have argued that nonprofits are not resource-constrained, rather that they “suffer a crisis of confidence” in investing in their own capacity. Some might argue that that’s easy for the head of a $40+ million nonprofit to say. How do you think the average nonprofit can move beyond the starvation cycle of never having enough resources?
Bill: It’s not that nonprofits are not resource constrained, it’s because almost all of them are that it is even more important to invest in their own capacity, to take a long view and be willing to trade off impact in the short-term if that impact can be multiplied dramatically in the long term. Imagine a maternal and child health clinic that serves 50 women a day and makes the decision to serve only 25 a day for 6 months so that it can invest in capacity that will enable it to serve 500 a day when the six months are up. The compelling nature of urgent human need makes that a tough decision to make, but it’s the right one if you have the confidence that more capacity will equal more impact.
Nell: Moving to bold goals necessitates a way to measure whether those goals have been achieved. Yet outcomes measurement is a very nascent practice in the nonprofit sector. How do we (or can we) get to a place where we are effectively measuring the results of both individual nonprofits and larger solutions? And who will pay for that work?
Bill: As your question suggests, measuring outcomes, and communicating what you’ve measured, comes at a price. Indeed it can be expensive, and that might mean less money devoted to program in the short-term. With few exceptions there won’t be third parties lined up to pay for it. Organizations will have to decide whether it adds to their long-term competitive strengths to invest in measuring outcomes and if it does, they should be willing to make that investment. A key task of organizational leadership is to marshal the will for these investments that don’t pay off until the long-term. The challenge is exacerbated by the fact that measurement is a still nascent practice, there won’t be common measure that can be adopted in a one-size-fits-all manner, and so each organization must wrestle to the ground the metrics that are right for their work.
Nell: What about bold philanthropy and bold government? Is it possible for those two sectors to be more bold? What would that look like and how optimistic are you that those kinds of changes are possible?
Bill: I’m confident that bolder philanthropy can lead to bolder government. Our politics currently is so polarized and paralyzed that people need to see examples of programs that work. Philanthropy can do things that government can’t do: take risks, innovate, and be closer to the people we serve. And when that all adds up to a program or service that works, it creates an even greater moral obligation on the part of the public sector, i.e. government to take what works and help scale it. Resource constraints and failures of imagination have conditioned us to pursue incremental change. But big and complex problems demand transformational change to address those problems on the scale that they exist.
Photo Credit: Share Our Strength
Fall is here (at least by my calendar!) and that means new opportunities to spark conversation about how the nonprofit sector is changing and how nonprofit leaders, board members and donors need to as well.
In recent months I’ve spoken in Phoenix, New York, Washington DC, Atlanta, and Australia (via Google). And what all of these events had in common is that the audience was hungry for a new way forward.
What I love most about speaking is that it’s a chance to really open eyes to new ways of thinking. And I love, love, love engaging with the audience to challenge their assumptions and former ways of operating.
For example, at an event last month a board member and I got into a lively debate about whether board members should really be bothering with the money raising aspects of their nonprofit. His argument was that it’s the job of the board to focus on big picture mission and programs, not the day-to-day dollar concerns of the organization. My argument, no surprise, is that you cannot separate mission from money and every board member should play a role in the financial engine of the nonprofit.
As we continued to debate, the board member admitted that he actually had helped to open a door to a significant (tens of thousands of dollars) contract for the nonprofit. So in essence he was arguing against what he’d actually helped bring about. Through the discussion he came to realize that if every board member were asked to tap into their skills, experience and networks to accelerate the financial health of the nonprofit (as he himself had already done) it could be transformational.
I love those light bulb moments.
The reality is that often nonprofits exist in a series of catch-22s where board members don’t know how to help, nonprofit leaders don’t know how to get board members moving, funders don’t know the questions to ask, and nonprofits don’t know how to identify their constraints. So we keep having the same conversations over and over again with little change.
Which is why I love to speak to groups and shake up these stale conversations.
Here are some of the most popular topics people invite me to speak about:
Financing not Fundraising
Based on the popular blog series, Financing Not Fundraising, I show nonprofits a new, more effective way to fund their work. I explain concrete ways to move efforts to raise money in a totally new direction, resulting in more money flowing through the doors, a more engaged and effective board, a more energized and integrated staff and ultimately more achievement of mission.
The Future of the Nonprofit Sector
The nonprofit sector and the philanthropy that fund it are changing dramatically. A growing convergence between the nonprofit, for-profit and government sectors is altering how social change happens and increasing competition is forcing nonprofits to shift the way they have always done business. Nonprofit leaders must understand trends and embrace change to emerge stronger and more effective.
The Power of a Theory of Change
A theory of change is an argument for why a nonprofit exists. It is the fundamental building block to creating a strategic direction, measuring your work, garnering more support and ultimately creating more impact in your community. Funders, regulators and others are increasingly demanding that nonprofits demonstrate how their work creates community change. I show nonprofits how to create a theory of change and then use it to drive greater support, engagement and success.
Jump Starting Your Board
A nonprofit’s board is often not doing as much as they could to bring money in the door. I take the fear and inaction out of raising money. I show board and staff how money works in the nonprofit sector, where the board can be most effective, how to get the board excited and engaged in fundraising, and the concrete steps to get them moving.
You can see a more complete list of my speaking topics, past speaking events, and videos on the Speaking page of the website.
If you want to start having new, transformational conversations, invite me to come speak. I’d love it!
Perhaps it had something to do with the SXSW Interactive conference last month, but March was all about using technology in interesting ways to further social change. From crowdfunding, to a new giving graph, to credit card donations to the homeless, to engaging people in the arts and beyond, people are experimenting with technology for social change in really exciting ways.
Below are my 10 favorite social innovation reads in March. But let me know in the comments what I missed. And if you want to see my expanded list, follow me on Twitter, Facebook, LinkedIn, Pinterest or ScoopIt.
You can see the 10 Great Reads lists from past months here.
- Crowdfunding is quickly becoming the hot new thing in the social change world. It remains to be seen if it is a game changer, but in the meantime take a look at some examples of how its being used here, here, and here. And while we’re talking about innovative use of technology to fundraise, Lucy Bernholz dissects some new efforts to donate to the homeless via a credit card.
- Writing on the ArtsFwd blog, Anna Prushinskaya describes how some innovative arts organizations have used social media to effectively engage audiences in new ways.
- I’m really excited about a new technology the Case Foundation is developing that will map your online search preferences to giving suggestions just like Google, Facebook and others currently use your search preferences to suggest products and services. (I’ll be interviewing the mastermind behind this, Will Grana, on the blog this summer).
- I love to see nonprofits using new media (like video and infographics) to tell their story. Beth Kanter offers some easy tips for creating infographics. And speaking of cool infographics, check out this one on why slacktivists are more active than you think.
- It seems “scale,” the social innovation buzzword of a few years back, is being redefined. Kathleen Enright, CEO of Grantmakers for Effective Organizations, describes a new report that expands the idea of scale and offers ways grantmakers can support it. And Ben Mangan, CEO of nonprofit EARN, spurs nonprofits and funders to move past “stifling incrementalism” and start working towards real scale.
- Dan Pallotta ruffled some feathers, as is his way, with his TED Talk this month The Way We Think About Charity is Dead Wrong, and there were several responses. But I thought the most thought-provoking was from a group of professors from Boston who suggest that Pallotta’s argument that nonprofit salaries are too low only reinforces the wealth inequality of the American economy.
- And on a related note, Dione Alexander, writing on the Mission and Money blog, explains increasing wealth inequality as a kind of bullying, noting “The social contract through which we assume shared responsibility for the community is broken.”
- And since we are on the topic, this video about wealth inequality in America blew my mind. If you want a quick and dirty view of where America’s money goes, take a look.
- As part of the ten year anniversary of the Stanford Social Innovation Review, Matthew Forti looks back at the past ten years of measuring nonprofit outcomes, the good, bad and the ugly.
- Writing in the Duke Chronicle, Trinity senior Elena Botella argues that deciding when a public service should be privatized should be based on evidence, as she says “Humans respond to a profit motive, but we also respond to altruism, community values, prestige and pride in our work.”
Photo Credit: mendhak
The Nonprofit Finance Fund (NFF) today released the results of their fifth annual State of the Nonprofit Sector survey. This year almost 6,000 nonprofits responded and the results point to a nonprofit sector that is shifting fundamentally, where traditional funding sources (like government dollars) are shrinking, while demand for services is increasing. Nonprofit leaders must adapt their business models in order to keep up.
As NFF CEO Antony Bugg-Levine put it:
Nonprofits are changing the way they do business because they have to: government funding is not returning to pre-recession levels, philanthropic dollars are limited, and demand for critical services has climbed dramatically. At the same time, 56 percent of nonprofits plan to increase the number of people served. That goal requires systemic change and innovation– both within the sector, and more broadly as a society that values justice, progress and economic opportunity.
With demand increasing and traditional resources drying up, something has got to give. Nonprofits are finding that they must get more strategic about using money and determining the impact of their work.
Some of the most interesting findings from the 2013 survey are:
- 42% of survey respondents report that they do not have the right mix of financial resources to thrive and be effective in the next 3 years.
- Over the next twelve months, 39% plan to change the main ways they raise and spend money.
- 23% will seek funding other than grants or contracts, such as loans or investments.
- For the first time in the five years of the survey, more than half (52%) of respondents were unable to meet demand for their services last year (up from 44% in 2009), and 54% say they won’t be able to meet demand this current year.
As one survey respondent put it, it is time to move from the reactive to the strategic:
Our greatest challenge is financial stability and sustainability. We must be more effective to raise 50% more money than we did two years ago—with the same number of staff members, but using all the skills and talents each staff member brings to the table to maximize our efforts. Our budget is to the bone, and our staff is overstretched….We…must learn how to work proactively and strategically… and stop playing catch up, as we have for most of our existence.
Because NFF has been doing this survey for the past 5 years they can start to look at trends over time. They’ve developed a pretty cool Survey Analyzer Tool that lets you slice and dice the data by geography, sector, budget, and more.
I encourage you to dig in and take a look at the data. You can find all of the survey reports and tools at the Nonprofit Finance Fund website here.
Photo Credit: Nonprofit Finance Fund
Today we celebrate President’s Day and one of our greatest presidents, Abraham Lincoln. We were reminded of Lincoln’s incredible leadership, wisdom and courage to make real change this past Fall when the movie Lincoln came out. The movie chronicles a very specific period in history when Lincoln led an unpopular effort to pass the 13th amendment to the constitution outlawing slavery. His decision to force the end of slavery as the Civil War was drawing to a close was not a political one, in fact it was politically very unwise. Yet he believed deeply that it was the right action at the right time for our country.
In this clip from the movie he talks about Euclid’s ideas about geometric equality as a metaphor for human equality and the need for the end of slavery.
As a true leader, Lincoln did what was right, not what was easy. If you haven’t seen the movie, I highly recommend it. It demonstrates what true social change leadership looks like. Lincoln had a passionate vision for change and had the courage, strength and tenacity to bring it to fruition. He is a model for us all.
I’ve been doing the monthly Social Velocity Blog Interview for 2 1/2 years now and have talked with more than thirty inspiring leaders in the world of social innovation. But now I need your help.
Over the last few years, I’ve interviewed
- Social investment gurus like Kevin Jones, Antony Bugg-Levine and George Overholser
- Philanthropic thought leaders like Phil Buchanan, Lucy Bernholz, Clara Miller and Sean Stannard-Stockton
- Nonprofit leaders pushing innovation forward like Dennis Morrow, Susan Comfort and Karina Mangu-Ward
- Social entrepreneur startups like Erine Gray and Ted Howard
- Sector activists like Robert Egger and Jeff Raderstrong
And many, many more.
It’s been amazing to hear from these leaders about where we’re going in the world of social change and where they hope to take us. You can see all of the past interviews here.
But now I’d like your ideas for who I should interview next. What all of these interviewees have in common is that they are people who are pushing boundaries, asking hard questions, creating new realities, making real social change. Who’s next?
So help me add to the list. If you have a suggestion for who I should interview next, leave a comment below or email me at email@example.com. Thanks for your help!
In this month’s Social Velocity blog interview, we’re talking with Erine Gray. Erine is the founder of Aunt Bertha, an online Benefit Corporation that matches people in need with federal, state, county, city or nonprofit services to specifically address their situation. Erine studied economics at Indiana University, public policy at the University of Texas and spent the better part of eleven years consulting (six of which were spent helping governments operate more effectively).
You can read past interviews in our Social Innovation Interview Series here.
Nell: Aunt Bertha essentially exists to fix an inefficient system of connecting services to those who need them. It seems to me your model is at the heart of an ongoing debate about whether there are some public goods that simply cannot be turned into marketable items. Obviously you believe there is a market for you, but why? What sorts of public goods can be turned into a market?
Erine: I’ve always been kind of a public policy nerd and understand that government has a vital role in the social safety net. Having graduated from the LBJ School of Public Affairs, I understand that government programs don’t have the luxury of catering to a certain segment. Programs like Food Stamps (now called SNAP) and Temporary Assistance to Needy Families (TANF) don’t get to choose who they serve because they *are* the safety net.
The private sector is different. A consulting firm can choose to only serve telecommunications companies with 200 – 500 employees. A shoe store can focus on high-end running shoes. These types of organizations can survive if they hustle and convince enough people to become customers.
When you start to look at the amount of money spent by both government social service programs and charities, the figure is spectacular. It just takes a little research and a few clicks in Excel to see the enormous amount of money that is spent every year either telling people about these programs or determining whether or not people qualify.
If we accept, for a moment, that the public social safety net should exist (and I believe it should), we then must ask the question: is the public doing a good job of administering these programs?
I’ve spent the last 10 years working in this industry, with six of those years working on projects with city and state governments. My answer to this question would be: there’s plenty of room for improvement.
We don’t need to start over because government does some things very well. But we should break down the problem and see what should be outsourced to qualified vendors.
Should governments build their own marketing teams to tell people about their programs? Or should governments work with professional marketing firms to get the word out as needed? Should charities build their own fundraising software or would Blackbaud [fundraising software] do the trick?
Nell: The fact that you are a for-profit company is fascinating to me. Can you explain how your business model works and how you make money in a space that has traditionally been dominated by the nonprofit and public sectors? And do you envision those public-run services (like 211) eventually going away?
Erine: Aunt Bertha picks up where Uncle Sam leaves off by making it easy to find and apply for social services online and through mobile devices. Our service is and always will be free for people in need or those working on their behalf. Our users include everybody from the homeless (yes, they definitely have internet access in many cases), working moms, family caretakers, social workers and case managers.
We list every government and charitable program we can find on our site for free as well.
Many charities and government agencies don’t yet offer a way for people to apply online. We offer a software platform that allows them to accept and process applications online. Charities pay us a monthly fee for this service. Our customers are housing programs, churches, government agencies, charter schools or any other organization that provides need-based services to people.
In your question you refer to the 211 service, I would hope that there will always be a place for these call centers. The 211 call centers are staffed with committed volunteers that help people navigate very difficult circumstances, 24-hours a day. However, if Aunt Bertha is successful, more people in need will be able to find social service programs themselves (without needing to call someone). We believe that if more people find help themselves, the cost of running a government funded call center will go down – which is better for everyone involved.
Nell: Any social entrepreneur just starting out struggles with the question of whether to organize as a for-profit or nonprofit. How and why did you make your decision?
Erine: I went back and forth about this one. Our mission is to make human service information accessible to people and programs. To truly be successful at this mission, I believe we need to be a sustainable business.
With our software, governments and charities are saving money over the way they currently work. They are willing to pay us a monthly fee to help them provide a better service to people in need. We think this is a better approach and more importantly, we never wanted to be in a position where we are competing with our customers for donations. That’s why we chose to be a certified Benefit Corporation (a business that meets higher standards of mission and accountability).
Nell: How widespread is Aunt Bertha? How many people are using the service now and what are your goals for the future?
Erine: Aunt Bertha is available in every zip code in the United States. Our service is both on the web and available on most smart phone browsers. Although our service works everywhere, our focus so far has been in Texas – where we have a critical mass of programs in most zip codes.
So far we’ve helped more than 20,000 people find help and we believe we’re just getting started. Right now we’re focused on making our service as intuitive and user-friendly as possible. We think we’re on to something big, but we don’t want to skip the important steps of listening to our early adopters.
Erine: We were fortunate enough to have been accepted as an ATI company this year and it has provided us access to coaching, introductions and inexpensive office space. ATI is a joint initiative between the City of Austin, the State of Texas and the University of Texas and it feels like they’re all behind us. Whenever you can be in an environment where more and more people are rooting for you it’s always a good thing.
The Unreasonable Institute was a very memorable experience for us. I had a chance to live with 21 of the world’s most interesting social entrepreneurs and words can’t describe what I learned during that experience. I highly recommend people check out the site and try and figure out a way to get to know as many people associated with the Unreasonable Institute as possible. They’re making a big dent in the world.
We recently raised capital after bootstrapping the business for the first two years. We’re very excited about our future. Our investors so far have liked the audacity of our mission. We think we can organize the world’s social service information so people and programs can find what they need in seconds. And because we sell software-as-a-service in a huge industry, we’re an attractive investment with a scalable model.
Most importantly, we’re starting to see – in real-time – the supply of and demand for social services. That’s never been done before and we hope that this data will allow some amazing things to happen. It’s hard not to get behind this goal.
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