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10 Great Social Innovation Reads: May 2017

May was another fascinating month in the world of social change. There are some interesting shifts happening among the institutions and movements working to improve black lives, new polls point to a surging American liberalism (not conservatism), the suburbs are no longer the route to the American dream, anti-hunger efforts may actually be perpetuating the problem, and a librarian who questioned the impact of Little Free Libraries received quite a backlash.

Below are my picks of the 10 best social change reads in May. But feel free to add to the list in the comments. And you can see a longer list by following me on Twitter @nedgington.

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

  1. The first 100 days of Trump’s presidency have been exhausting for the country. The Chronicle of Philanthropy offered some questions for philanthropist to think about after those first 100 days. And Trump’s budget recommendations, if adopted by Congress, could have pretty damaging effects on the nonprofit sector and the foundations that fund them.

  2. A more specific impact \ that the Trump Administration could have on the nonprofit sector would be to eliminate the Johnson Amendment. The 60 year old Amendment has prohibited churches and nonprofit organizations from any political campaigning. Robert Egger, founder and president of L.A. Kitchen and Vikki Spruill, president and CEO of the Council on Foundations, debated whether the repeal of the amendment would be a good or bad thing for the sector.

  3. Despite the fact that state and federal government is being led largely by Republicans right now, it looks like American populism may have a liberal, as opposed to conservative, bent according to some new polls. Ruy Teixeira from Vox analyzed recent poll data and argued that America is actually witnessing a liberal surge:  “Trump in the White House and the Republicans in control of Congress and most states…owes much more to the peculiar nature of the Electoral College, gerrymandering, structural GOP advantages in Congress, and poor Democratic strategy than to the actual views of the American public.”

  4. And that populism that is sweeping the country is beginning to target philanthropy. David Callahan argued that the underlying elitism of philanthropy must be laid bare: “America is in the midst of an epic backlash against elites, one that’s put a reality TV maestro in the White House. So far, philanthropy has been insulated from this broader convulsion, but there are good reasons for the sector to engage in its own introspection about elite power…There’s not yet much discussion about the bigger question regarding how much sway private philanthropy—and a growing class of savvy “super-citizens”—should have over public life in a democratic society like ours.” And Kristin A. Goss and Jeffrey M. Berry argued on the HistPhil blog that the populist surge is posing at least 3 challenges to foundations.

  5. There is something interesting happening in the efforts to improve the lives of African Americans. The NAACP fired its president Cornell William Brooks after only 3-years in the hopes that the organization could become more responsive to changing external circumstances. But Cyndi Suarez wondered whether this 100+ year old institution can adapt to and engage with growing social movements like Black Lives Matter.  And earlier in the month she described how BLM itself is evolving amid changing times.

  6. Jay A. Winsten from the Harvard Chan School of Public Health described how a national media strategy, even in today’s very fractured media environment, can move social change forward.

  7. Some new data in May showed giving differences between genders and generations, and the  Master of Public Administration program at the University of San Francisco created a nice infographic on The Current and Future State of Philanthropy.

  8. Something really interesting happened when a Toronto librarian questioned the claim that Little Free Libraries, the small birdhouse-like boxes of free books cropping up in neighborhoods around the country, are actually increasing literacy. People got really mad.

  9. Writing in CityLab, Richard Florida painted a pretty bleak picture of how the suburbs, once the destination for the growing middle class, are now crumbling: “Suburban growth has fallen out of sync with the demands of the urbanized knowledge economy. Too much of our precious national productive capacity and wealth is being squandered on building and maintaining suburban homes with three-car garages, and on the infrastructure that supports them, rather than being invested in the knowledge, technology, and density that are required for sustainable growth. The suburbs aren’t going away, but they are no longer the apotheosis of the American Dream and the engine of economic growth.”

  10. Finally, there’s a new book to add to your reading list: Andy Fisher’s Big Hunger: The Unholy Alliance between Corporate America and Anti-Hunger Groups. Fisher argues that anti-hunger nonprofits are perpetuating the underlying wealth inequality that causes hunger by aligning with corporations that are exacerbating poverty through low wages and job cuts.

Photo Credit: kyle rw

 

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3 Mistakes Nonprofits Make in Fundraising Staff

Before a nonprofit can achieve financial sustainability, the nonprofit leader has to figure out how to staff their money raising function effectively. When I conduct a Financial Model Assessment for a client, one of the sections of my final report is always focused on the nonprofit’s staffing structure and how that contributes to or detracts from the nonprofit’s ability to attract money. More often than not, a nonprofit that is struggling to bring enough money in the door is not thinking effectively about how they staff the money function.

And it typically boils down to three particular mistakes that a nonprofit’s leadership is making. These are:

1. There Is No Financing Strategy
You can’t expect to effectively staff your money raising function if you are not thinking about money in a strategic and holistic way. The very first step in structuring an effective money-raising staff is for a nonprofit’s leadership to figure out their organization’s financial model — how money should flow into and out of the organization. First you must assess what money-raising strategies fit best with your mission and core competencies. And then you need to develop a long-term financing strategy that is directly tied to the goals of your strategic plan. You can’t expect to hire people who will magically make money appear. Effective fundraisers must be driven by a smart money plan.

2. No Single Person Is In Charge of Money
Once you figure out your long-term financing strategy, you need to find (or promote from within) a person to oversee the entire money function of the organization. To truly use money as a tool, you can’t hire someone who can just write foundation grants, or someone who can just work with individual donors, or someone who can just secure government contracts. You need a single person who is thinking 100% of the time about all the ways money flows to your nonprofit. And make sure you offer enough salary to attract and retain a rockstar. It amazes me how many nonprofits expect to entice a great fundraiser by offering a salary that is comparable to someone with only a few years of experience. If you don’t have the current budget to pay a market rate, raise capacity capital to fund the first 1-2 years of the position. Once you have a great money raiser up and running, he will not only raise his own salary, but also grow your nonprofit’s overall financial engine.

3. Money Doesn’t Pervade Everyone and Everything
Finally, once you have a financing strategy and the right person to lead that strategy, then you need get everyone in the organization bought into and contributing (even in a small way) to its success — this is sometimes called creating a “culture of philanthropy.” But I would instead call it creating a “culture of mission financing,” which means every single person in the organization embraces the fact that in order to succeed in your mission, you must effectively finance that mission.  Money troubles often happen when nonprofit leadership offloads all money-raising responsibility to the Development Director. You must make sure that everyone in the organization (board and staff) understand their role in bringing money in the door. Create a culture where a staff member who doesn’t have dollar goals in her job description understands that giving donor tours, providing program outcome data, or writing thank you notes are critical to keeping the organization going. And make sure your board is trained in fundraising, has countless ideas for how each of them can contribute to the financial engine, meets a give/get requirement, and achieves specific individual and full board money goals.

How you staff your nonprofit’s money-raising function is directly tied to how much money you will bring in the door. Therefore you must create a smart financing strategy, hire a staff leader to execute on that strategy, and create a culture of mission financing that ensures everyone plays a role in the financial engine.

If you need help figuring out what’s holding your nonprofit back from financial sustainability, check out the Financial Model Assessment I provide my clients.

Photo Credit: Tax Credits

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Understanding The Full Costs of Nonprofits: An Interview with Michael Etzel

In this month’s Social Velocity interview, I’m talking with Michael Etzel. Michael is a partner in The Bridgespan Group, a global nonprofit organization that consults to nonprofits and philanthropists, provides leadership development support, and develops and shares insights — all with the goal of scaling social impact.

Since joining Bridgespan in 2006, Michael has focused on effectiveness across the full spectrum of social innovation financing, advising corporate, institutional, and family philanthropists and investors. Much of Michael’s work explores what it takes to use tools of innovative finance and impact investing to solve pressing social problems. His work and research in philanthropy also focuses on the question of what it takes to deliver results as a new approach to ending the nonprofit starvation cycle.

You can read other interviews in the Social Velocity interview series here.

Nell: In your research and writing you have focused a lot on what you call “Pay-What-It-Takes-Philanthropy,” the radical idea that different nonprofit solutions have different business models and thus require different costs and investments. This concept is so accepted in the for-profit world that it is a truism, but why is it a radical idea for nonprofit and philanthropic leaders?

Michael: It’s worth pausing for a moment to reflect on why business models and capabilities matter. Every nonprofit operates with an underlying business model and set of capabilities critical for program delivery. Failure to understand an organization’s business model frequently leads to underinvestment in core capabilities, and, as one program officer put it, “a hollowing out of civil society institutions.” We can’t have resilient, durable civil society organizations that deliver successful programs unless they operate from a position of financial strength.

As you highlight, segmentation and analysis of comparable performance data is common practice in the for-profit world. Leaders like Clara Miller, president of The Heron Foundation and former CEO of the Nonprofit Finance Fund, have long called for this kind of thinking in the social sector. But this type of comparison requires transparent and consistent data, something hard to come by. As one nonprofit executive reminded me, “If you think you can analyze a nonprofit through IRS 990 filings, you are in outer space.”

Yet, I wouldn’t say this a radical idea. Organizations like DataArts and CoMetrics show how this is possible. For example, DataArts gathers a variety of comparable revenue, cost, and performance data for arts and cultural organizations, and provides tools for reviewing that data. This provides grantees and grant makers with actionable data to inform management or funding decisions with an eye to effectiveness and efficiency. CoMetrics addresses a more diverse set of enterprises, providing software platforms and tools that enable those enterprises to collect, display, and compare financial, operational, and impact data against their peers. This bottom-up approach gathers data across organizations running the same type of business in the same field to form groups relevant for comparative assessment and learning.

Bridgespan’s preliminary analysis to date has shown that different types of nonprofit organizations have different cost structures based on their business model. Segmenting nonprofits by business model can help us compare similar organizations. When it comes to indirect costs, for example, nonprofit research labs have a median indirect cost rate of 63%, nearly two and a half times the 25% median rate of direct service organizations.

We plan to push ahead this year to refine and deepen our understanding of segmentation and how it applies to nonprofit cost structures and capital needs. Having this information will benefit funders and grantees alike when it comes to funding discussions.

Nell: You work with both nonprofit and philanthropic leaders, so you likely see both sides of this dysfunction. What do you think it will take to move the field to a place where those with potential solutions to social problems have enough and the right kinds of money to see their solutions come to fruition?

Michael: Nonprofits exist in a complicated marketplace, seeking capital from a broad range of funders. As in any marketplace, some influential market makers set the rules. The practice of setting limits on indirect costs in project grants to nonprofits/NGOs has its antecedents in the US government’s approach to funding R&D at universities during the post-World War II era. The federal government has changed practice dramatically since 1958, embracing the “fair share” approach—that federal agencies pay their fair share of true costs, including indirect costs.

Among private foundations, indirect cost rate policies have been common for decades. A RAND report from the 1980s captured the variety of policies at that time: “many foundations customarily pay full indirect cost as budgeted in a proposal. Other foundations may pay only a portion of… or specify a cap on the support of indirect costs.” More recently, our research has shown that many large foundations set a cap of 15% or lower on indirect costs. Yet, among the 20 large nonprofits we sampled, indirect costs comprised between 21% and 89% of total costs, with the median at 40%.

I offer this history because I see the indirect cost conversation changing. For decades, much of this conversation has been driven by nonprofit and NGO leaders’ concerns about caps on indirect cost reimbursement. But funders have begun to engage more deeply in this conversation over the last several years. In 2013, Forefront (formerly Donors Forum) convened a cross section of staff from smaller Midwest foundations to discuss barriers and potential solutions to funding indirect costs. In 2015, the three California Regional Associations of Grantmakers launched the Real Cost Project (now the Full Cost Project) with the dual goals of increasing the number of funders providing real-cost funding and building the skills and capacity of grantmakers.

Having philanthropic leaders at the table is important to overcoming the reality of power dynamics. In the same breath, it’s also important to see this issue for what it is—a complex systems issue. Acknowledging this complexity helps approach this issue from a place of empathy for funders that want to do the right thing, and nonprofits that want to own and manage the costs of delivering impact.

Funders have the opportunity to ask grantees their true costs of programs and to be prepared to pay their fair share of the operational and financial support it takes to deliver those programs. Meanwhile nonprofits can focus on knowing their costs and advocating for them. Funders cannot pay their fair share if grantees don’t tell them what it is!

Nell: Beyond researching and consulting on these topics, you also serve on the board of two nonprofit organizations. What has been your on-the-ground experience as a board member trying to put these concepts to practice?

Michael: Creating space for a conversation among peer board members has been important in establishing a shared understanding of the issues—and why sometimes the executive director very rightly chooses to say “no” to a grant that doesn’t cover true costs.

The reality of this “complex marketplace” also hits home—there is no one-size-fits-all solution. That puts a big burden on the executive director and finance team to effectively report and manage costs.

Photo Credit: The Bridgespan Group

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10 Great Social Innovation Reads: March 2017

March offered lots of insight about how philanthropy should respond in the age of Trump. From investing in social movements, to getting involved in advocacy, to strengthening local communities, to giving more than the required 5%, there was much advice. Add to that a growing interest in how to combat “fake news,” steps to creating a digital marketing strategy, and the idea of employing migration as a tactic to combat poverty, March had much to read.

Below is my pick of the 10 best reads in world of social change in March, but feel free to add to the list in the comments. If you want a longer list, follow me on Twitter @nedgington.

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

  1. Heinz Endowments President Grant Oliphant takes issue with the current administration’s distaste for the media and the arts (as evidenced by Trump’s elimination of the National Endowment for the Arts in his proposed budget). Oliphant argues that journalists and artists play a crucial role in a thriving society: “The right of artists and journalists to tweak the nose of power, to challenge what we believe, to criticize those in high places, to hold accountable people who otherwise might anoint themselves kings, cannot be abridged because we find it at times uncomfortable. It is that very discomfort that tells us they are doing their part in maintaining a healthy society.”

  2. Vocalizing dissent as Oliphant does is only one path available to philanthropy in these challenging times. Many people had other ideas for how philanthropy should respond, including funding social movementsgetting involved in advocacycountering the increase in hate crimes, strengthening local communities, and giving more than the typical 5% of assets. As Grantmakers for Effective Organizations President Kathleen Enright puts it: “We have a choice to make. We can succumb to the swirling and diverting streams of information that wash over us with every passing week. Or we can use this moment as a call to action, first to crystalize our values and determine what matters most to our institutions. And then to act in support of those values in new, bold and creative ways.”

  3. Philanthropic visionary Clara Miller, president of the Heron Foundation, describes what the foundation will do now that they’ve reached their goal of putting 100% of their assets toward mission. As she writes, “It’s becoming increasingly important to think and act holistically with money and influence within and beyond our sector, seeking impact on both Wall Street and Main Street.”

  4. The revelations that Russia used fake news to influence the U.S. presidential election added urgency to attempts to find solutions to the growing misinformation ecosystem. Pew Research offered a comprehensive report about the future of fake news. And writing in Nieman Reports Joshua Benton compares American distrust of journalism with American distrust of banks. And Marina Gorbis compares our current reality to the creation of the printing press in the mid-1400s, which ushered in political, religious and scientific revolutions.

  5. Speaking of what we can learn from history about today’s challenges, Harvard professor Tomiko Brown-Nagin provides 7 lessons from history for today’s social protests.

  6. Never one to shy away from controversy, Phil Buchanan takes to task those who argue that social problems can be solved by nonprofit and for-profit solutions equally well. As he puts it, “The fact is that in many, dare I say most, of the issue areas in which nonprofits are working to make a difference, there isn’t a way to do it that jibes very well with making a profit. And indeed, that is why the nonprofits were formed in the first place — because markets weren’t taking care of the issue!” Amen!

  7. Writing in his Nonprofit Chronicles blog, Marc Gunther argues that few anti-poverty interventions include the effective approach of encouraging the poor to migrate to areas with better opportunities.

  8. Large and aging nonprofit organization Greenpeace underwent a complete shift toward 21st century fundraising and advocacy efforts using technology.  This fascinating case study describes how they did it.

  9. David Mundy from GuideStar kicked off the first of a great multi-part series on how nonprofits can create their digital marketing strategy.

  10. And Nonprofit Tech for Good offered 24 Must-Read Fundraising and Social Media Reports for Nonprofits.

Photo Credit: Beraldo Leal 

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Nonprofit Capacity Building Works: An Interview with Kathy Reich

In this month’s Social Velocity interview, I’m talking with Kathy Reich. Kathy leads the Ford Foundation’s BUILD initiative both in the United States and in 10 global regions. BUILD is an essential part of the foundation’s strategy to reduce inequality, a strategy arising from the conviction that healthy civil society organizations are essential to driving and sustaining just, inclusive societies. To that end, Kathy guides Ford’s efforts to implement sector-leading approaches to supporting the vitality and effectiveness of institutions and networks that serve as pillars of broader social movements.

Before joining Ford in 2016, Kathy was director of organizational effectiveness and philanthropy at the David and Lucile Packard Foundation, where she led a cross-cutting program to help grantees around the world strengthen their strategy, leadership and impact.

Kathy has long been a friend of the Social Velocity blog. You can read my interview with Kathy when she was at the Packard Foundation here and a guest blog post she wrote for the blog here.

You can also read interviews with other social changemakers here.

Nell:  You recently moved from the Packard Foundation to the Ford Foundation in order to launch their BUILD initiative, which is all about strengthening organizations. What are your goals with this new initiative and what successes have you seen so far? And what are you finding in terms of the areas where nonprofits need most help?

Kathy: The Ford Foundation has two big goals in mind for BUILD. First, we want to foster a measurably stronger, more powerful set of civil society organizations and networks working to address inequality around the world. Second, we aim to build understanding within the Ford Foundation, and ultimately throughout the field of philanthropy, about how strengthening key institutions can advance social justice.

The foundation has committed $1 billion over five years to BUILD because we believe that the fight against inequality needs resilient, durable, and fortified civil society institutions. Individuals and ideas also are critical, but the key role of institutions as drivers of sustained social change is a core, and sometimes overlooked, aspect of social justice work.

Each of the BUILD grantee organizations and networks will receive five years of support, at levels higher than what they have historically received from the Ford Foundation. Much of this support will be as flexible as we can legally make it; most grants will include generous general support. The remainder of each BUILD grant will provide support for nonprofit organizations and networks to strengthen their strategies, leadership, management, and finances. Each BUILD grantee will develop and then implement its own institutional strengthening plan. Although Ford Foundation staff will consult on drafts of these plans, the grantee will be “in the driver’s seat” in determining their institutional strengthening priorities and how best to address them.

So far we’ve made about 90 BUILD grants, and honestly it’s a bit early to say how well they are working. We do know where organizations are planning to spend the money. The vast majority of BUILD grantees, 79 percent, are choosing to strengthen their core operations, investing in areas such as financial management, fundraising, communications, evaluation, and HR. About two-thirds also are investing in strengthening capacities critical to social justice work, such as legal, research, network building, and advocacy. Close to half are investing in strengthening their strategic clarity and coherence, 36 percent are investing in leadership development and governance, and 32 percent are choosing to deepen their organizational commitments to diversity, equity, and inclusion.

It’s important to note that BUILD is not the Ford Foundation’s only investment in strengthening nonprofit institutions. BUILD is part of FordForward, the Ford Foundation’s multi-pronged effort to make philanthropy part of the solution to inequality in a deep and lasting sense. In addition to BUILD, two other aspects of FordForward focus on strengthening nonprofits. The foundation is giving more general support grants across all program areas, with a goal of making general support our default type of grant whenever possible. We also are increasing overhead rates on project grants to a minimum of 20 percent, to more adequately address the indirect costs of executing projects and programs.

Nell: This is a pretty innovative approach to capacity building, how do you plan to share what you learn with other funders and with the sector overall?

Kathy: We’re planning a robust evaluation and learning strategy, although we’re really just getting started. Our hope is to share some early findings by year’s end. We’ll be focusing on three sets of key questions throughout the five-year initiative:

  • Do BUILD grants work? Do the organizations and networks that receive this funding become stronger and more durable over time? And if so, what if any impact does that have on the organization’s effectiveness?
  • If the BUILD approach works, what about it works? Is it the general operating support, or a specific kind of organizational strengthening, or something else?
  • Have we changed the way we do business at Ford, moving away from one-year project grants in favor of larger, more flexible grants?

Along with our evaluation and learning plan, we’re also developing a communications strategy to share what we learn with the field and engage in dialogue with others. We’ll be publishing evaluation results, speaking at conferences, and making active use of social media.

Nell: Both the Ford Foundation and the Packard Foundation are rare funders in that they are very committed to creating strong nonprofit organizations through heavy investment in capacity building. Do you think philanthropic and government funders are starting to follow your lead? Or what will it take to make that happen?

Kathy: Well, we certainly hope they are! It’s important to acknowledge that capacity building grantmaking is not new; in launching BUILD, we’ve learned from and appreciate the work of leaders in this field like the David and Lucile Packard Foundation, as well as the William and Flora Hewlett Foundation and the Evelyn and Walter Haas Jr. Foundation.

Over time, we hope that the ranks of capacity building funders will grow. We hope that BUILD will influence other donors by contributing to the evidence base that nonprofit capacity building works—that stronger, more durable, and more resilient organizations and networks are more effective at achieving their missions.

We also hope to contribute to the evidence base about what kinds of capacity building work best for organizations and networks of different types and sizes, working on different issues in diverse geographies. That’s a tall order, but one of the great things about being a global funder and being able to invest significant resources in BUILD is that we’re able to try this grantmaking approach with a broad range of institutions.

Nell: The Ford Foundation made a very public move two years ago to focus their efforts on fighting inequality. But that goal has arguably become harder given the political winds. How does a foundation like Ford navigate achievement of their desired impact in a potentially more difficult external environment?

Kathy: The Ford Foundation has worked in the U.S. and around the world for more than 70 years, and we’ve seen a lot of upheaval during that time. We’re acutely aware of the challenges facing our work, but we’re moving ahead with optimism and with what my boss Darren Walker calls “radical hope.”

BUILD is a big part of that hope. I believe strongly that in uncertain times, a BUILD approach to grantmaking is one of the smartest choices a foundation can make. By giving our grantees multi-year general operating support, we are giving them the resources and the flexibility to pivot their work quickly in the face of new realities. By also giving them thoughtful and flexible institutional strengthening support, we are enabling them to invest in their own leadership, strategy, management and operations at a time when they have to be at the top of their games.

Photo Credit: Ford Foundation

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Guest Post: The Rebirth of Nonprofit Advocacy

Note: With a current political climate which is arguably more challenging for many nonprofit social change efforts, I believe (along with many others) that now is the time for nonprofits to move more actively into advocacy. But many nonprofit leaders don’t know how to get started. So I asked the expert on all things nonprofit advocacy — Tim Delaney, President & CEO of the National Council of Nonprofits — to write a guest post describing how nonprofit leaders can move into advocacy. Here is his post.

Given the new realities at the state and federal levels of governments, nonprofit leaders (board and staff) are recognizing that nonprofit advocacy is more important than ever before. They suddenly feel compelled to engage in advocacy. Yet many admit privately that their advocacy know-how has either atrophied or never gotten off the ground. As we witness a re-birth of interest in nonprofit advocacy, this article offers initial steps along a pathway to effective advocacy.

Nonprofit advocacy is a lot simpler than most people realize, with easy steps involving the heart, mind, body, and soul.

Heart Steps

Care. The very first step in advocacy is to care deeply about something. For nonprofits, this means caring about your organization’s mission. When you really care, then you will see the barriers blocking your way … and be motivated to remove or overcome those barriers to advance the organization’s mission. Consider this mom who worried that she would be ineffective as an advocate, yet when motivated to protect her child’s safety, she championed changes to federal and state laws.

Know you are not alone. If you start to get weak of heart, know that you are part of a community that includes more than one million organizations, employs ten percent of the American workforce, and contributes billions to the economy. Your nonprofit’s mission is unique, but your organization is part of an expansive ecosystem of nonprofits working in every community across the country. We are all stronger if we honor the Three Musketeers’ motto of “All for one and one for all, united we stand, divided we fall.”

Mind Steps

Realize that you are already advocating. People sometimes fret that they don’t know how to advocate. But it’s so easy that first graders do it! So do you, every day. Did you share an update with your nonprofit’s stakeholders (such as donors, board members, or reporters) recently, so they know about the impact your organization is having in the community? Congratulations, you are already advocating! We like to say that the definition of advocacy is answering the question, “Who can I talk to today to advance my nonprofit’s mission?”

Lean into the news to stay informed. It’s too late for action when reading that the Governor signed a bill to regulate nonprofits or the city council voted to pass an ordinance to tax nonprofit property. Nonprofits need to pay attention to the news so you’re ready to speak up for your communities. To help nonprofits make sense of the swirling policy issues in Washington, DC, we wrote this analysis in the Chronicle of Philanthropy identifying six sector-wide issues that we foresee impacting all nonprofits in the coming months. Your local state association of nonprofits can help keep you up-to-date on what is happening, and you can subscribe to our free policy newsletter, Nonprofit Advocacy Matters.

Focus. One danger of paying attention to the news is most people suddenly will see multiple things that motivate them to action. Yet there is only so much time in each day. When taking the Heart Step of identifying what you deeply care about with your nonprofit’s mission, define and then refine the topics on which your nonprofit agrees in advance that it will devote some of its limited resources to advocate for or against. Reduce that in writing as part of your Public Policy Agenda. (Here’s a link to our Public Policy Agenda, which you can use as a rough draft to start your own.)

Work smarter, not harder. The old Fram oil commercials used to say, “You can pay me a little now … or a whole lot more later.” So it is with advocacy. If you invest a little time now to lift your voice instead of sitting silently while your local government imposes new taxes on nonprofits, then you can avoid the added burden of trying to raise additional money. If government contracts impose mindless administrative burdens and costs, then you can either keep paying people to do wasteful acts or band together with other nonprofits to ease the burdens of government and nonprofits. Our hallmark as nonprofits is that we solve community problems. Advocacy is a powerful leveraging tool to do just that.

Take the (h) election. Sometimes called the best, easiest, and cheapest (free!) insurance in America, filling out IRS Form 5768 can simplify life for most 501(c)(3) charitable nonprofits advancing their missions through advocacy. Taking the “(h) election” doesn’t cost anything, and gives many benefits for nonprofits.

Soul Steps

Build relationships. The poet’s line that “no man is an island” underscores not only a universal interconnectedness that feeds our souls, but also a basic tenet of advocacy: relationships are fundamental. You will be more effective when those you are advocating already trust you and know the impact your nonprofit is having. Whether you are advocating to a potential funder or to an elected official (or a member of their staff), relationships matter. Take the time now, before you have a distinct ask to make, to make friends before they are needed. They will come in handy later, for you and for them. Even without further advocacy, informing officials of the work your nonprofit is doing can pay dividends as they consider proposals down the road.

Body Steps

Stand for Your Mission. No matter who is in office or which party is in control, nonprofits can’t afford to sit silently on the sidelines on issues that affect their ability to serve their community and advance their mission. The nonprofit community is at its strongest when every nonprofit, and every person associated with that nonprofit, raises their voice. To help board members in particular, check out this website on steps your nonprofit can take to stand for your mission.

Use Your Voice. Advocacy takes many forms. You can write or call your representatives or attend a Nonprofit Day at the Capitol. You can make a video demonstrating the effects (or potential effects) of an issue. Even social media has become a part of the advocacy toolkit. Read more stories of nonprofit advocacy in action to learn about the other ways you can engage.

Be a Team Player. Nonprofit advocacy is a team sport. Most funders and nonprofits focus on their narrow issue area. But some policy issues affect all nonprofits and thus require collective action. The current federal attempt to erode trust in nonprofits and foundations by removing or weakening the 60+ years of protection against politicizing nonprofits during elections, and local attempts to impose taxes, fees, or payments in lieu of taxes (PILOTs), are attacks on all nonprofits.

Be Vigilant. My football coach used to say, “Keep your head on a swivel,” meaning always be on the lookout, watching everything on the field. Public policy is even wilder than football because it’s played on a three-dimensional chess board, with activity happening up and down the local, state, and federal levels of governments and across the executive, legislative, and judicial branches. While many want to focus on the new President, the White House is only one source of policy action. Federal legislative priorities this year will likely flow down to hit the states to implement. Domestic spending cuts are a near certainty, and with states currently receiving, on average, 30 percent of their revenue from the federal government, it’s important to see the interconnections. The White House might dominate the nightly news, but life is lived at the local level and not in faraway DC.

Just as Plato wrote that “necessity is the mother of invention,” policy threats can spark inspiration for advocacy action. Although dismayed by the cause, I’m heartened by hearing how many nonprofit leaders are now seeing the value and power of advocacy. Let this be the re-birth of nonprofit advocacy, which is deeply rooted in our collective DNA.

Photo Credit: National Council of Nonprofits

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10 Great Social Innovation Reads: January 2017

In January it seemed as though we moved into social change hyper drive.

With the inauguration of a new president, a litany of controversial executive orders, numerous efforts to block or minimize them, and advice for or frustration with the nonprofit and philanthropic sectors’ responses, the world of social change moved at warp speed.

Add to that lots of predictions and advice for the nonprofit sector, and some small, but inspiring efforts to feed and comfort those in need and January was a very busy month.

Below are my picks of the 10 best reads in January, but feel free to add to the list in the comments. If you want a longer list, follow me on Twitter @nedgington, and if you want to see past months’ lists go here.

  1. Some still struggled to understand the 2016 election. Continuing his 4-year series on the smaller cities of America for The Atlantic, James Fallows argued that while Americans distrust national policy and institutions they still have faith in local government: “City by city, and at the level of politics where people’s judgments are based on direct observation rather than media-fueled fear, Americans still trust democratic processes and observe long-respected norms.”  And Eytan Oren offered some insight into how social media and major technology companies took civic engagement to a new level in the 2016 election.

  2. A few days before Trump was inaugurated, President Obama gave a farewell speech that focused on the need for greater civic engagement, and he and Michelle Obama launched a new foundation to help deliver on those ideas. And Pew Research crunched the numbers on how America changed over his 8-year term.

  3. Quite quickly after his inauguration, President Trump signed several executive orders, and a “resistance” movement that is rather unprecedented in U.S. history mobilized in response.   thing the resistance movement has going for it is their savvy use of social networks.

  4. In particular, Trump’s executive order banning immigration from 7 Muslim-majority countries created some soul-searching in the philanthropic sector. Inside Philanthropy‘s David Callahan expressed frustration about a seeming silence among philanthropic leaders on Trump’s immigration ban, asking “What’s the point of being in charge of society’s risk capital if you don’t take risks at a moment like this?” But 50 philanthropic leaders signed a strong statement against the ban.

  5. Amid all of the uproar surrounding the immigration ban, there was light in small places. A group of people from New Jersey launched a supper club that creates community among and raises money for Syrian refugees.

  6. Because January started a new year, there were the usual posts predicting what the new year will bring for philanthropy and nonprofits.

  7. But this year was different because several writers argued that the nonprofit sector needs to move more strongly into advocacy. And there was lots of other advice about how nonprofits should approach the Trump era, from building resilience, to messaging more effectively in a “post-truth” world, to making America “good” again, to answering 12 “Ifs”.

  8. A rather more sweeping bit of advice for the social change sector came from Pablo Eisenberg who argued that the organization Independent Sector should no longer be an association of both nonprofits and foundations, but just nonprofits. The HistPhil blog asked him to elaborate on the history of that important institution.  

  9. BoardSource, GuideStar, BBB Wise Giving Alliance, and the Association of Fundraising Professionals partnered to release a new method for evaluating a nonprofit’s fundraising effectiveness. The method looks at three metrics in a nonprofit organization: the fundraising net revenue, the cost of fundraising, and the dependency quotient (the percent of the budget funded by the nonprofit’s top 5 donors). Because let’s remember, as Rick Moyers pointed out, Development Directors Are Not Miracle Workers.

  10. Finally, a tangent into something small and really cool. The idea of little free libraries that have been cropping up on people’s front lawns has gone in a new direction. Mini food pantries have started helping neighbors in need.

Photo Credit: Jens Schott Knudsen

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Speak Out and Be Counted

I had an ache in the pit of my stomach all weekend long. I get a stomach ache whenever something is very, very wrong. Friday’s Executive Order banning immigrants from seven Muslim-majority countries is so very wrong, and so fundamentally un-American.

I am an American because my ancestors at one point or another immigrated to this country because they thought it would offer better opportunities and/or more tolerance. And I have spent my career working in and with the nonprofit sector, which is fundamentally about giving voice and support to the oppressed.

For these reasons (and so many more) this executive order is completely anathema to me.

By yesterday my stomach was aching for some sort of salve. So here’s what I did:

  • I called my members of Congress — both of my Senators and my Representative, at both their D.C. and local offices to ask them to stand up against this immigration ban. And I will continue to do so every day. Several of their voicemail boxes were already full, so I took some comfort in the fact that others are as upset as I am. But I will not rest on that knowledge, I’ll keep trying to leave my own message.

  • I donated to the ACLU, who by the way, received $24 million in online donations from 350,000 people over the weekend (six times their normal annual online donations!). So again, there is comfort in numbers.

  • I emailed a message of solidarity to my client, the Muslim Public Affairs Council, which is an amazing group working tirelessly (and much harder these days) for the civil rights of American Muslims.

  • I’m continuing to follow resistance hashtags on Twitter like the 80+ alternative Twitter handles for the various government agencies that are no longer allowed to Tweet information at odds with the administration, and the #ThisIsYourLand and #Resistance hashtags, as well as the growing social movement of protest and resistance.

  • I will continue to work to encourage the nonprofit sector — the moral compass of this great country — to be bold and speak out against anything that goes against the fundamental values of our country.

As Charles Blow wrote yesterday in the New York Times:

“America will not stand for this, so if obsequious conservative politicians or lily-livered liberal ones won’t sufficiently stand up to this demagogic dictator, then the American people will do the job themselves. Over the weekend, protesters spontaneously popped up at airports across the country to send an unambiguous message: Not in our name; not on our watch. It is my great hope that this will be a permanent motif of Trump’s term. If no one else is going to fight for American values, it falls to the American people themselves to do so.”

Yes, that is right. As Americans, we’ve been training for this since we had our first civics lesson back in middle school.

And as social change leaders, we all have an obligation to speak up.  As Greg Oliphant put it “There are truths that need to be spoken now, spoken out loud and unapologetically by people who know them to be true. Spoken with love, yes, but also fierce conviction…They are where we as a sector…must find our voice, in holding them out not as criticism but as the True North we still must point towards, the star we still see and hold steady in our gaze despite attempts to obscure it.”

If you too felt sickened by the events of this past weekend, get engaged — speak out and be counted. Do not sit back and wait for someone else to do it.

Not in our name. Not on our watch.

Photo Credit: Miraage.clicks

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