Note: 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
I 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 Twitter, Facebook, LinkedIn or Google+.
And you can see past months’ 10 Great Reads lists here.
- 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.
- And adding to the data about giving, the Nonprofit Tech for Good blog shares some great statistics about fundraising, social media and mobile.
- 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.
- 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!
- 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.
- 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.
- 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.”
- 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.
- 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!
- 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
This week I attended the 5th annual Social Impact Exchange Conference in New York City. It was an interesting gathering of funders, change makers and intermediaries all grappling with how to reach and sustain scaled social solutions.
“Scale” is such a challenging concept, and as I mentioned earlier, there are many entities struggling with exactly what scale means. According to Heather McLeod Grant (author of Forces for Good) whose keynote address kicked off the conference, “scale” is no longer about growing individual organizations or addressing individual issues, but rather about building movements and networks.
The idea of a networked approach to social change is not a new one (see the great Stanford Social Innovation Review article from 2008 by Jane Wei-Skillern and Sonia Marciano on this approach), but Heather underlined the importance of a more integrated and aligned approach to creating social change. I would have liked to see this idea taken further, perhaps with some of the Transformative Scale discussion that is happening elsewhere, included in this discussion.
There were some real highlights of the conference for me. First was the luncheon panel on the Black Male Achievement Movement and President Obama’s My Brother’s Keeper initiative. Tonya Allen of The Skillman Foundation was a hard hitting moderator of Shawn Dove, from the Campaign for Black Male Achievement, William Snipes from Pipeline Crisis/Winning Strategies, and Andrew Wolk from Root Cause.
The group had a fascinating conversation about the movement to address “a whole generation of young men being pushed to the side.” As Snipes so eloquently put it, “This is a problem about who we are as a society, whether or not we are going to survive. The road we are on is not sustainable. We cannot continue to incarcerate one third of a community. This is an impractical way to run a society.”
The panel described and debated the complexity of addressing a huge systemic problem and how they have launched a movement to do just that. It was a candid and thought-provoking exchange.
Another highlight was GuideStar CEO Jacob Harold’s talk on their exciting efforts to transform the nonprofit information landscape (Jacob is describing this landscape in the picture at the left).
GuideStar’s goal is to address the “two elephants in the philanthropic room:” 1) some nonprofits are better than others (they create more impact per dollar spent), and 2) some donors are better than others (they create more impact per dollar given).
To address these “elephants,” GuideStar is collecting and analyzing deeper information about nonprofits and then distributing that information so that donors make better investments. (More on this next month when I interview Jacob as part of the Social Velocity Interview Series.)
The other real highlight of the conference for me was the keynote address on financial sustainability from Antony Bugg-Levine, head of the Nonprofit Finance Fund. Antony defined financial sustainability as “Repeatable and reliable revenue that exceeds ongoing operating costs, coupled with the ability to fund periodic investment in adaptation and growth.” In other words, a financially sustainable nonprofit brings enough reliable revenue in the door and can, when needed, raise capital for change and growth.
And that capital piece is often overlooked by nonprofits and funders. Antony described 5 types of capital helpful to nonprofits:
- Change Capital to position an organization for growth.
- Working Capital to handle fluctuations in cash flow.
- Recovery Capital to address shocks to an organization (natural disaster, fire, etc.)
- Risk & Opportunity Capital to develop a new program or different approach.
- Endowments which can provide some unrestricted money, but should not be considered reliable revenue.
Antony also described 5 things that funders do and 5 things that nonprofits do to derail sustainable growth (pictured at right.)
I also enjoyed participating in the “Business Models for Sustainability at Scale” panel with my colleagues Dana O’Donovan from Monitor Institute, Megan Shackleton from the Einhorn Family Trust, Heidi Shultz from the Helmsley Charitable Trust and Craig Reigel from the Nonprofit Finance Fund. We had a great discussion with very thoughtful and engaging audience questions about how to create sustainable financial models and how philanthropy can help move that forward.
The Social Impact Exchange assembled a smart, talented group of people to grapple with how we fund and grow solutions to the wicked problems we face. It was a thought-provoking couple of days.
In addition to the Social Impact Exchange conference I mentioned earlier, I will be traveling a lot this summer connecting with nonprofit and philanthropic leaders. I’ll be blogging about what I learn in my travels and conversations. And, I’m really excited to announce, that I have an amazing group of guest bloggers who will be posting throughout the summer as well.
These guest bloggers are people who really make me think and will offer some really interesting perspectives. I’ve invited them each to take over one Social Velocity blog post sometime during the summer.
Below is the guest blogger lineup with some background on each of them. Their posts will begin in late June. And I will continue to post throughout the summer as well.
Social Velocity Summer Guest Bloggers
Robert is the founder of DC Central Kitchen and LA Kitchen, as well as the nonprofit sector advocacy group, CForward. Robert was included in the Non Profit Times list of the “50 Most Powerful and Influential” nonprofit leaders from 2006-2009, and speaks throughout the country and internationally on the subjects of hunger, sustainability, nonprofit political engagement and social enterprise. He is a tireless advocate for the nonprofit sector, encouraging nonprofits to take their rightful seat at the table. He is always pushing us to think bigger and smarter about social change. You can read my past interview with him here and my post about CForward here.
David is the founder of Idealistics, a former social sector consulting firm that helped organizations increase outcomes, demonstrate results, and organize information. He has worked in the social sector for the last decade providing direct services to low-income and unhoused adults and families, operating a non-profit organization, and consulting with various social sector organizations and foundations. David’s professional focus is on improving the way social sector organizations use information to address poverty. He writes his own blog, Full Contact Philanthropy, which I highly recommend. He will make your head hurt, but in a really good way. You can read my interview with him here and watch the Google Hangout he and I did about Using Real Performance Data to Raise Money.
Jessamyn is Executive Director of the Peery Foundation, a family foundation based in Palo Alto, California. The Peery Foundation invests in and serves social entrepreneurs and leading organizations in the San Francisco Bay Area and around the world. Jessamyn helps shape the foundation’s strategy, develops programs, strengthens the foundation’s portfolio, and supports existing grantees. Her experience as part of the founding Ashoka U team has given her the perspective and skill-set to help the foundation develop new methods to support and build the field of social entrepreneurship. You can read my interview with her here.
Adin is Senior Director of Community Impact and Innovations at the Jewish Community Federation and Endowment Fund. In this role, he develops new strategies and programs to bring about change and impact within JCF’s mission. Adin focuses on defining metrics to document impact, maximizing measurable impact and increasing the visibility of the organization. Prior to JCF, Adin was a nonprofit consultant and had his own blog, Working in White Space, which was phenomenal. You can read my past interview with him here.
Laura is a network developer at the Council on Foundations, where she tracks philanthropic trends and builds relationships with leaders advancing the common good across sectors. She also leads an impact investing initiative and regularly interacts with those interested in the changing landscape of social good. Previously as manager of public-philanthropic partnerships, she built the capacities of federal agencies interested in partnering with foundations. Before joining the Council, she worked at Grantmakers for Effective Organizations and at the Central New York Community Foundation. Laura has been named a Global Shaper by the World Economic Forum. She is also a StartingBloc Fellow and writes for UnSectored, serving on advisory boards for both organizations. You can read my interview with her here.
So there you have it. A summer guest blogging lineup that I am thrilled about. I can’t wait to read what they all have to say. Stay tuned!
Photo Credit: Holger.Ellgaard
Bradach asked leaders and thinkers in the scale movement – like Risa Lavizzo-Mourey from the Robert Wood Johnson Foundation, Billy Shore from Share Our Strength, Wendy Kopp from Teach for All, and Nancy Lublin from Do Something – to contribute their insights to the series. Bradach is doing this because he believes we have not yet figured out how to grow solutions to a point at which they are actually solving problems. As he wrote in his kick-off post to the series:
Over the past couple of decades, leaders have developed a growing catalog of programs and practices that have real evidence of effectiveness. And they’ve demonstrated the ability to successfully replicate these to multiple cities, states, even nations in some cases, reaching thousands or even millions of those in need. Despite all this progress, today even the most impressive programs and field-based practices rarely reach more than a tiny fraction of the population in need. So we find ourselves at a crossroads. We have seen a burst of program innovation over the past two decades; we now need an equivalent burst of innovation in strategies for scaling.
One of the places where scale has been an on-going topic of conversation is the annual Social Impact Exchange’s Conference on Scaling Impact. Now in its fifth year, this conference next month in New York City brings together “funders, advisors and leaders to share knowledge, learn about co-funding opportunities and develop a community to help scale top initiatives and build the field.” The conference is organized, in part, by the Growth Philanthropy Network, which “is creating a philanthropic capital marketplace that provides funding and management assistance to help exceptional nonprofits scale-up regionally and nationally.”
I’m excited to be attending this year’s conference and participating in a panel called “Business Models for Sustainability at Scale.” From my perspective, one of the biggest hurdles to scale is a financial one. Very few nonprofits have yet figured out how to create a sustainable financial model, let alone how to create one at scale. And this hurdle exists for many reasons, including: lack of sufficient capital in the sector, lack of sufficient management and financial acumen among nonprofit leaders, an unwillingness among funders to recognize the full costs of operation. So I’m excited to be part of this important conversation about how we can actually create financially sustainable scale.
It will be interesting to see how the conversations at the Scaling Impact conference – led by rockstars in the field like Antony Bugg-Levine from the Nonprofit Finance Fund; Tonya Allen from the Skillman Foundation; Heather McLeod Grant, author of Forces for Good; Paul Carttar from The Bridgespan Group; and Amy Celep from Community Wealth Partners – will relate to the perspectives of those writing in the “Transformative Scale” blog series. I wonder where there will be overlap and where there will be disagreement or even controversy. Scale is an incredibly difficult nut to crack. And as Bradach rightly states, no one has figured it out yet.
I will be posting to the blog during the conference about what I’m hearing and where there are common threads or separate camps.
I hope to see you there!
Image Credit: Social Impact Exchange
Controversy about whether Millennials will spend money differently than their parents to create change, arguments for greater philanthropic risk, examples of innovation in the arts, use of “Moneyball” in conservation and policymaking efforts, and the lure of online media to create social change. What more could you want from a month of social innovation reading?
You can also see all of the 10 Great Reads lists from past months here.
- Man, I love a good controversy. In April the Obama administration invited Millennial philanthropists to the White House to discuss next generation philanthropy. And The New York Times sent Millennial reporter (and heir to the Johnson & Johnson fortune) to cover it. Well, Jim Newell from The Baffler doesn’t buy the argument that Millennials are going to use money differently than their predecessors. But Jed Emerson and Lindsay Norcott think Millennials will actually take impact investing mainstream.
- And staying on the controversy train just a bit longer, William Easterly takes issue with celebrity famine relief efforts that ignore (and potentially make worse) the lack of democracy causing famine in the first place.
- Because achieving scale is incredibly difficult work, Jeff Bradach from The Bridgespan Group launched an 8-week series on the Stanford Social Innovation Review blog exploring how we achieve it. 16 thought leaders will “weigh in with their insights, struggles, and questions regarding the challenge of achieving impact at a scale that actually solves problems.”
- It seems that the arts, perhaps more than other issue areas, are on the front lines of innovation in order to stay relevant. And this month really brought those struggles home. First, the Houston Grand Opera has seen dramatic growth in audiences, bucking a declining trend elsewhere, by appealing to broader audiences. Perhaps the San Diego Opera could have learned something from Houston since their declining audiences (and poor governance decisions) have put them in danger of closing their doors. And ever at the ready with examples of how arts organizations are innovating and adapting, ArtsFwd released two case studies on how the Woolly Mammoth and Denver Center Theater Companies have embraced adaptive change.
- What’s with Moneyball (the movie and book about using data to drive major league baseball strategy) everywhere lately? Using data and smart strategy the Nature Conservancy is getting more effective at conserving bird habitats. And David Bornstein thinks the federal government is getting into the game as well with an increase in data-driven policy making.
- The Pew Research Center just released a book, and corresponding interactive site, about the changing demographic face of America and how it could affect everything, “Our population is becoming majority non-white at the same time a record share is going gray. Each of these shifts would by itself be the defining demographic story of its era. The fact that both are unfolding simultaneously has generated big generation gaps that will put stress on our politics, families, pocketbooks, entitlement programs and social cohesion.”
- Should philanthropy embrace more risk? Philanthropist Laurie Michaels founder of Open Road Alliance, which provides funding to help nonprofits overcome unforeseen roadblocks or leverage unanticipated opportunities, thinks so. Michael Zakaras interviews her in Forbes. As she puts it, “Very few people in the finance industry predicted the economic collapse in 2008, and yet we ask NGOs to submit a plan that will be stable for several years, which is an impossibility in the best of circumstance.” Amen!
- On the NPEngage blog, Raheel Gauba answers the fascinating question: “If Google were a nonprofit, what would its website look like?”
- And speaking of nonprofits online, the PhilanTopic blog released an infographic summarizing the 2014 M+R Benchmarks Study about nonprofit online activity.
- Moving on to other forms of media, I love what’s happening with video games and the innovators who are adapting them to help solve social problems. Who knew that playing Minecraft could actually change the world?
Photo Credit: Mikel Agirregabiria
February witnessed some dissatisfaction with the current state of funding for social change, but also some trailblazers playing with new financial vehicles. I always wonder whether true change to money for social good will come with the next generation. Do Millennials hold the key to fundamental shifts in how we finance social change efforts? We shall see.
Below is my list of the 10 best reads in the world of social innovation in February. But, as usual, please add what I missed in the comments. If you’d like to see an expanded list, follow me on Twitter, Facebook, LinkedIn, or Google+.
You can also find the list of past months’ 10 Great Reads here.
- As we work toward social change, its important to embrace the gray areas. Writing in the New York Times Simon Critchley takes us back to the 1970s BBC documentary series “The Ascent of Man” to make a point about the importance of uncertainty in our search for solutions. As he puts it, “Insisting on certainty…leads ineluctably to arrogance and dogma based on ignorance.” And Fay Twersky seems to agree when it comes to strategic philanthropy, arguing in the Stanford Social Innovation Review that “we need to challenge the certainty creeping into [philanthropy].”
- And speaking of changing philanthropy yet another study of Millennial philanthropists claims that this new generation of donors will be quite different than their predecessors. As Phil DeMuth writing in Forbes puts it, these new donors “are no longer interested in providing an annuity to some tax-deductible charity organization.” They want to see results, and they want to get in and get out.
- But Lucy Bernholz is frustrated by the pace of change, at least in how little the financial vehicles philanthropists use are changing. She argues that in this year’s list of the top 50 philanthropists “the financial vehicles for philanthropy…look not unlike [those] in 1954 or 1914.”
- Tris Lumley from New Philanthropy Capital voices frustration as well, but with the general state of nonprofit finance. He puts forward a new model for the social sector that removes the “funder-centricity” of the “anti-social sector.” Because, as he argues, “the result of this funder-centricity at its worst is that the social sector exists not for those it’s supposed to help, but in fact for those who work in it, volunteer in it, and give money to it.”
- There are some bright spots, at least in the United Kingdom. The country leads the way in the social impact bond trend. Emma Tomkinson provides a map of social impact bond activity in the UK versus the rest of the world and the UK Centre for Social Impact Bonds provides a great site of resources on the new tool.
- And even here at home there are some trend setters, particularly the F.B. Heron Foundation, led by the visionary Clara Miller who also founded and led the trailblazing Nonprofit Finance Fund for 25 years. Clara has announced the F.B. Heron Foundation will account for the mission return of 100% of its assets. Unheard of and definitely interesting to watch.
- There is a constant tension in the nonprofit sector between funding new ideas and funding the growth of proven ideas. Writing in the Chronicle of Philanthropy, Alex Neuhoff, Laura Burkhauser, and Bradley Seeman fall squarely on the side of growing proven solutions, arguing that in order to reach a higher performing nonprofit sector we must “follow the “recipes” that earned proven programs their stellar ratings.”
- There was much for Millennial changemakers to chew on this month. First, there is a growing drumbeat questioning the relevance and value of college. Does the higher education model really work anymore? It’s a fascinating question to contemplate. And Naomi Schaefer Riley does so in the “College Tuition Bubble.“
- I’ve been on a real Steven Pressfield (author of The War of Art) kick lately. His worldview is that each individual was put on earth to create some specific greater good, but Resistance constantly fights to keep us from achieving it. If you need inspiration to overcome Resistance, read his post “How Resistance Proves the Existence of God.” Love it.
- And for those who are pursuing a life of social change despite the lure of a more traditional path, look to Thoreau for inspiration. For as Maureen Corrigan explains in her NPR review of a new biography of the man, “Thoreau’s youth seemed aimless to himself and others because there were no available roadmaps for what he was drawn to be…If Thoreau had committed to a professional career right after Harvard, his parents might have rested easier, but the world would have been poorer.”
Photo Credit: beggs
In my eyes, December was about three main things: the After the Leap conference about moving nonprofits to manage to outcomes, predictions about how the social sector will evolve in 2014, and the impact of the second annual Giving Tuesday. Added to the mix were some demonstrations of the growing wealth inequality (a prediction for 2014 from many) and a dash of controversy about the beloved TED Talks. It all made for a very interesting month.
Below are my picks of the 10 best reads in the world of social innovation in December. But please add to the list in the comments.And if you want to see more of what catches my eye, follow me on Twitter, Facebook, LinkedIn, or Google+.
You can also find the list of past months’ 10 Great Reads here.
- I already linked to several people’s great 2014 prediction pieces in my 5 Nonprofit Trends to Watch in 2014 post, but Tom Watson’s Trends and Collisions That Will Challenge the Social Sector in 2014 in Forbes is particularly thought-provoking. He takes what he calls a “meta approach” by analyzing themes from big social sector thinkers and “adding a few morsels to the stew.”
- One of the predictions on both my and Tom’s list was that the growing wealth inequality will become increasingly obvious. Robert Reich helps this trend by providing a scathing critique of modern philanthropy, arguing that it is becoming less about solving wealth inequality and more about reinforcing it: “Fancy museums and elite schools…aren’t really charities…They’re often investments in the life-styles the wealthy already enjoy and want their children to have as well.” And Peter Capelli, writing on the Harvard Business Review blog, seems to agree, but on the corporate side. He takes issue with “companies that pay poverty-level wages or thereabouts to their employees [while] spend[ing] a good deal of effort to be good corporate citizens in other areas.”
- Some people claim the second annual Giving Tuesday was a great success with a 90% increase in day-of online donations over last year, but others, like Michael Rosen, argue that Giving Tuesday is not actually channeling new money to the sector.
- The first-ever After the Leap conference in December promoted nonprofit performance management. Perhaps the high point of the conference was Nancy Roob’s (head of the Edna McConnell Clark Foundation) stirring keynote pushing both foundations to fund outcomes management and nonprofits to demand it. The Stanford Social Innovation Review did a great interview with her where she makes many of the same points, and an interview with Mario Morino, the main organizer of the conference.
- Writing in The Guardian, Paula Goldman from Omidyar Network discusses how, with impact investing, the blending of social and profit motives is really starting to take hold: “Fifteen years from now…We’ll look back on a host of innovations benefitting millions of disadvantaged people – in education, in healthcare,…in solar lighting—and will have a hard time remembering the day when people viewed charity and business as working towards opposite goals.”
- Leon Neyfakh writes a fascinating expose in the Boston Globe about donor advised funds, which he claims is “where charity goes to wait.” $45 billion—more than the endowment of the Bill and Melinda Gates Foundation – currently sits idle in donor advised funds and that amount is growing fast. A huge financial opportunity for the sector.
- The Center for Effective Philanthropy released a new study about how much impact foundation CEOs think their philanthropy has had. Philanthropy heavyweights Paul Brest and Lucy Bernholz each give their take on the study’s findings.
- I have loved writer Steven Pressfield since I read his fabulous The War of Art last summer. His blog about the creative process is a fount of knowledge and inspiration. His post in December about envisioning and embracing the future in your industry applies to nonprofits too.
- The idea of networked approaches to social change has been around for several years and is gaining momentum. Writing in the Nonprofit Quarterly, Mark Leach and Laurie Mazur describe “the power and promise of networked approaches to social change…creat[ing] a force larger than the sum of their parts.” Definitely a trend to watch.
- And finally, I love it when someone steps back and asks some hard questions about something that everyone else assumes is amazing. Benjamin Bratton does just that about the beloved TED Talks, which he claims “dumb-down the future.”
Photo Credit: Imperial War Museums
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