Today for something a little different, I’ve taken to YouTube for my blog post. My hope is that as the Social Velocity YouTube channel becomes a library of videos on various nonprofit topics and challenges, you can use the videos to spark discussion among your board, staff and donors.
So today’s topic is about getting your board unstuck and moving forward for you. The transcript of the video is also below.
If you want to learn more about getting your board engaged, download the 10 Traits of a Groundbreaking Board book, or the Getting Your Board to Raise Money On-Demand Webinar.
I know how hard nonprofit leaders struggle to get their board of directors active, engaged, involved, motivated, moving forward with their nonprofit organization. So today I want to give you three questions that can get your board engaged and invested in the work of your organization.
Before I start, though, I want to say that you get a board motivated and engaged by splitting it into its parts. You cannot get a board engaged and invested by talking to the board as a whole. So I encourage every nonprofit leader to set aside a time every year to meet one-on-one with each individual board member. And in those one-on-one conversations I encourage you to ask 3 questions of those board members that can really get them engaged and motivated.
The first question to ask them is, “What about our nonprofit’s mission and work really motivates you?” This helps you tap into each individual board member’s passion, what brought them to the board in the first place, why they are volunteering their time, and really helps them think again, remember, and be thoughtful about why they are engaged with the nonprofit and what they want to see the nonprofit to accomplish.
The second question to ask each individual board member, one-on-one, is, “What specific assets do you bring to the table as a board member?” This gets the board member and you to start a conversation about what unique skills, experience, or networks that individual board member brings to the table. So then you can start to think about, well how can we tap into this person’s unique assets?
The third question you want to ask each individual board member is, “What do you want to accomplish as a board member this year?” This puts the burden on that individual board member to be thoughtful about what they want their contribution to be as a board member. So they might start thinking about wanting to be involved in an upcoming strategic planning process, they may have some ideas about how to better market the organization, they might be thoughtful about some key decision makers that they could open doors to. There’s a whole host of things that it might start to get them thinking about how they can be specifically involved in the organization.
So, again, I think the key to engaging a board of directors is to start working with them one-on-one and asking them some really thoughtful questions that result in a really meaningful conversation that can really engage your board. Good luck!
I’ve been thinking about using Slideshare, the social media network for presentations and infographics, a lot lately. It’s an amazing site with tremendous content. I wanted to start sharing some of my presentations there.
So today, here is my first SlideShare offering, “Calculating the Cost of Fundraising.” These slides are excerpted from my Calculating the Cost of Fundraising on-demand webinar.
The concept is simple. If you want your nonprofit to achieve financial sustainability you need to analyze the return on investment of your money raising activities. With that analysis you can make smarter decisions about where you should focus your limited resources for greater financial success.
These slides and the more detailed webinar give you some quick and easy tools to use to determine the return on investment of all of your fundraising activities. The webinar then helps you compare the results of your calculations and gives you tips for deciding what to do with that information. And most importantly how to convince others on your board and staff when you have to move away from some money-losing activities (always a tricky political maneuver).
Wrangling a group of volunteers who have competing and often conflicting interests is an exhausting job. It’s no wonder that nonprofit leaders often want to throw up their hands and soldier on without the rag tag group that’s supposed to further, as opposed to impede, the work.
But it doesn’t have to be that way. An “engaged board” is not an oxymoron. It is actually attainable. But you don’t get there by cajoling, guilting, ignoring or dismissing your board.
You get there by marshaling this critical army to grow your resources, your community of supporters, your results. Because an engaged board raises more money, recruits and trains other engaged board members, connects your nonprofit to key people and organizations necessary to achieve the mission, puts your nonprofit above their self interest, and ultimately leads your organization to greater results and impact.
There are very clear steps you can take to build an engaged board:
- Create a clear idea of the specific skills, experience and networks board members should possess
- Continually focus the board on the big picture
- Get them ALL to raise enough money
- Help them embrace money as an effective tool
- Make them understand and be able to articulate the impact of your nonprofit
- Create a commitment among them to build the organization
- Encourage them to ask hard questions
- And more…
You can help them become the board of directors they were meant to be.
An engaged board understands and fully embraces their charge. They have extremely high standards, and they hold themselves, their fellow board members and their nonprofit to those standards. They are constantly pushing, striving, and building the nonprofit to whom they are devoting their service. An engaged board may be an anomaly, but it doesn’t have to be.
If you want to build an engaged board, the Build an Engaged Board Tool Bundle can help you get there. The Bundle includes:
- The “Getting Your Board to Raise More Money” Webinar
- The “10 Traits of a Groundbreaking Board” E-book
- The “How to Create a Groundbreaking Board” Webinar
Here’s what some people who have already downloaded the board tools had to say about them:
“This was very concrete and actionable – gave specific suggestions regarding engaging board members. This was very useful. Well done.”
“This really opened my eyes to new possibilities – thank you so much!”
“This was one of the best and most helpful and informative webinars I’ve been on. It was exactly what I was looking for in terms of beginning to get our board energized and on track and I will use the slides to help me prepare for our upcoming board retreat.”
An ineffective board is not just a frustration for the executive director. Sadly it is a HUGE missed opportunity. Your board could be so much more. When you effectively engage your board of directors, you grow your resources and ability to create social change exponentially.
You can download the Build an Engaged Board Tool Bundle here.
Photo Credit: Dr. Strangelove
Could it be that the nonprofit sector is coming into its own? Increasing prominence in the economy coupled with a growing (we hope) recognition of the need for stronger organizations, the nonprofit sector may be hitting its stride. Add to that some interesting discussions about the effect of crowdfunding and a “revitalizing” Detroit and you have a pretty good month of reading in the world of social innovation.
You can also see my favorites from past months here.
- It appears that the nonprofit sector is beginning to take center stage in a new economy. The rise of the “sharing economy,” where products and services are shared by many rather than owned by one (think Netflix, Car2Go, HomeAway), apparently holds tremendous opportunity for the nonprofit sector. So says Jeremy Rifkin in the New York Times, “We are…entering a world partly beyond markets, where we are learning how to live together in an increasingly interdependent, collaborative, global commons.” Erin Morgan Gore (writing in the Stanford Social Innovation Review) would agree.
- But at the same time, NPR describes a growing individualism in America and an emerging “Opt-Out Society.”
- And lest you forget why we do this social change work, Robert Samuelson, writing in the Washington Post, describes some “menacing mega-trends” facing America and our political system’s inability to keep up.
- We continue to be fascinated by the Millennial generation and this infographic very nicely puts to rest some myths about them.
- Writing in the Huffington Post, Ashley Woods questions whether the recent focus on revitalizing Detroit is helping or hurting long-time residents.
- Crowdfunding is increasingly gaining interest, but can it actually increase money flowing to social change? A new infographic by Craig Newmark, founder of Craig’s List, describes some recent crowdfunding results for nonprofits. And Beth Kanter digs deeper into the data.
- The CEO of The California Endowment, Dr. Robert Ross makes a compelling argument for why foundations need to move beyond funding new solutions and instead get into the advocacy and community organizing game: “Philanthropy has to recognize that community power, voice, and advocacy are, to use a football analogy, the blocking and tackling of winning social change.”
- Are funders beginning to understand the need to invest in nonprofit capacity building? Some recent research by The Center for Effective Philanthropy shows that, not surprisingly, nonprofit leaders think funders don’t understand their need for help with sustainability. But some new data from Grantmakers for Effective Organizations finds that funder appetite for capacity building might be growing. And Rodney Christopher from the F.B. Heron Foundation makes the case for support of capacity building, “Failing to pay attention to nonprofits as enterprises will undermine impact over time.”
- But Kate Barr from the Nonprofits Assistance Fund places a big part of the burden of overcoming the nonprofit overhead myth squarely on the shoulders of nonprofit leaders themselves.
- Albert Ruesga, head of the Greater New Orleans Foundation and contributor to the White Courtesy Telephone blog, very thoughtfully breaks down how to understand philanthropy’s relationship to social change. Well worth the read.
Photo Credit: Alfred Hermida
“Charity” harkens back to the beginnings of philanthropy, which was largely the purview of women and as such was viewed as tangential to and less valuable than the more important “business” of the male-dominated world.
As social problems mount, we must shift from the “charity” of our predecessors to an understanding of social change as part of everything we do.
And here’s why:
Charity Lives Beside the Economy, Social Change is Baked into the Economy
While charity was just an afterthought of the real work of the world, social change is rapidly becoming an integral part of the economy. The number of nonprofits grew 50 times faster than for-profits in the last 10 years and nonprofit revenues grew at double the rate of GDP growth in the same period. And its not just the size and resources of nonprofits that contribute to an emerging social change economy, the Millennial generation actually thinks about social change as part of every aspect of, not separate from, their work and life. The work of social change is ubiquitous.
Charity Addresses Symptoms, Social Change Addresses Systems
Charity is about remedying the immediate and direct symptoms of a larger problem. It is about feeding the poor, sheltering the homeless, clothing the naked. But as very real structural challenges grow (like the widening income gap) we can no longer just stick a finger in the dike. We must come up with approaches that solve the underlying issues causing those problems.
Charity Requires Spare Pennies, Social Change Requires Significant Investment
Charity existed on the largesse of the profiteers of the last centuries. Once they made their millions, they sloughed off a portion of the excess to the charities who cleaned up the messes they made. But you can’t do much with the dregs. Because social change is about changing larger systems it takes real, significant investment of resources.
Charity Employs Volunteers, Social Change Employs Experts
Charity was always the purview of the wives who didn’t work. As volunteers they devoted their time to helping the needy. But as our social problems become increasingly complex and entrenched, we must employ experts – not volunteers – who through education, knowledge and experience know exactly how to approach the problem and how to solve it. And we must pay them what it takes to keep them working on those solutions.
Charity Apologizes, Social Change Demands
When you are voluntarily acting on behalf of a charity and asking others also to act voluntarily on behalf of the charity, you are often apologizing for the interruption to their “real work.” But social change is very necessary work, and social changemakers must demand the investment, mindshare, time and effort required. There is absolutely no space for apology.
Sometimes words and the baggage of the past really matter. When we stop thinking of the work of social change as “charity” we start demanding and creating real investment, real attention, and real change.
Photo Credit: Library of Congress
For those nonprofit leaders brave enough, capacity capital can be the key to emerging from the continuous nonprofit starvation cycle.
Next month I will be speaking at the Securing the Future Conference in Cincinnati about capacity capital. Beyond looking forward to meeting a new group of nonprofit leaders, board members and donors, I’m particularly excited about introducing them to what I think has the potential to be a transformative concept for the nonprofit sector.
The topic of my speech is “The Power of Capacity Capital,” and in it I will convince the audience that you no longer have to run a nonprofit to the bone, continually starving the organization of the staffing, infrastructure, and systems that you need to effectively deliver social change.
Capacity capital is the money that so many nonprofits need, but most find so hard to raise. It is money for infrastructure and organization building. It is a one-time investment of significant money that can fund a program evaluation, a new data gathering system, revenue-generating staff, leadership coaching, and the many other things nonprofits require in order to be effective leaders of social change.
If you want to move your organization out of the starvation cycle, you have to learn how to raise capacity capital.
For those of you who won’t be at the Securing the Future Conference, but want to learn more about capacity capital – whether it’s right for your nonprofit and how to go about raising it – you can download my on-demand webinar, Raising Capacity Capital.
The 60-minute Raising Capacity Capital on-demand webinar will show you how to:
- Talk about the importance of capacity capital to your donors and board
- Create a budget for the capacity dollars you need
- Develop a campaign goal
- Break the goal into donor ask amounts
- Identify prospective donors
- Give your board a role in the campaign
- Gain the confidence to start asking for the money you really need
Like all of the Social Velocity on-demand webinars, you can watch this webinar whenever and however many times you would like.
You really don’t have to continue to live in starvation mode. There is a path toward a stronger, more effective nonprofit organization. Capacity capital can help you get there.
Photo Credit: panthera-lee
In today’s Social Velocity interview I’m talking with Pat Lawler. Pat is the CEO of Youth Villages, a national nonprofit dedicated to helping emotionally and behaviorally troubled children and their families live successfully. Youth Villages is often heralded as a model for high performing nonprofit organizations. In 2006, Lawler was recognized as one of “America’s Best Leaders” by U.S. News & World Report.
You can read past interviews in the Social Innovation Interview Series here.
Nell: In 34 years of your tenure at Youth Villages you’ve grown the organization from serving 25 youth to now serving 22,000 families. Very few nonprofits are able to grow to that level, let alone sustain it. What are the factors that make nonprofit growth attainable and what holds more nonprofits back from achieving it?
Pat: First, an organization must have a clear mission and defined values. When we started Youth Villages, we knew who we were. We didn’t just want to respond to RFPs; we wanted to do what was best for kids. No more of the status quo, instead we used our expertise and created best practices. We built our leadership team and our culture around a clear mission and set of values. Our culture is a big part of who we are and what we’ve done over the years. We’ve also been willing to change directions. We’re willing to do different things based on the needs of kids and families. At one time, we only provided residential treatment services, but now residential services comprise only about 35 percent of our work. Don’t anticipate the future, create it.
As an organization, we were also careful not to grow too fast. We were constantly assessing what was best and reevaluating. We also implemented a feedback system to learn what was working and what was not so we could improve our outcomes.
It’s easy for nonprofits, especially those focused on social services, to make decisions with our hearts instead of our heads, but we must still maintain a strong focus on the business aspect of our work. After we got through our first 12-13 years, when we were just trying to survive as an organization, we began thinking about strengthening our financial reserves because we were responsible for more children and families, as well as our staff and their families. So we really started trying to build a stronger financial foundation that would help us successfully transition through turbulent times.
Nell: Often when a nonprofit becomes very large finding on-going sustainable funding sources can be difficult. The majority of your funding comes from state contracts. Is government the ultimate answer to long-term funding for large nonprofits? Or are there other ways?
Pat: It depends, but in general, I think it’s important for organizations to have a diverse set of funders to achieve maximum stability. Having at least three or four funding sources and a relative balance among those sources is a good way to go. If government is a major funding source, you want to make sure that’s diversified among different programs, geographies, etc. and not all one contract.
Nell: Youth Villages is also unusual in that you have a robust performance management system and are considered one of the leading nonprofits in the country in that arena. Why did you make the decision many years back to invest in performance management and what do you think the return on that investment has been?
Pat: Youth Villages’ goal has always been to provide the best services for children and families. That’s one of the reasons why we started collecting data, using measurement, benchmarking and total quality improvement. It was all about getting better outcomes for kids. We didn’t realize how valuable our data could be until the mid-‘90s when some of our state funding was at risk. Using our data, we were able to convince the state to spend money for in-home services and develop a continuum of care — because we had really good data to show them what worked and how much more cost-effective it was. Throughout the years, we started trying to convince other states and funders. A few were pretty enthusiastic about our data and outcomes. When the Edna McConnell Clark Foundation met with us nine years ago, they were very interested in our data and outcomes, and that was the first indication that the private sector was becoming interested in doing what works.
Even today, we’re asking ourselves where is the best place to put our resources, and more often, we’re finding it’s better to serve a larger number of children through community-based services rather than in a residential setting. You can make such a greater impact in the community serving a large number of youth, rather than serving a small number with the greatest needs. We’re trying to do both. But we’re asking ourselves what’s the biggest return on our investment so we can have the greatest impact on our community?
Nell: Funders and nonprofits themselves are often reluctant to invest in nonprofit leadership development. How do we solve this need and how did you grow your leadership skills over the course of your career? What role do you think funders should or could play in leadership development for the sector?
Pat: I read a lot, and I’ve been very fortunate throughout my career to have worked with great boards of directors and mentors to shape my leadership skills. At Youth Villages, we have an outstanding leadership team filled with better leaders than I am. Together, we make a strong team. Any of us independently might not be as good. I know I wouldn’t be at all. At all levels of this organization, we have very bright people and that is what makes the difference here.
If I had to start over at the beginning, rather than asking foundations for money for programs and services, I would have asked for funds to put toward business planning, professional coaches, leadership development and communications to help with the things I didn’t know about. I’d have asked for money to help build a stronger organization, while at the same time maybe a little money for programs and services. I believe it’s a waste of money for governments, foundations or anyone to spend money on an organization that doesn’t have the necessary skills, organizational structure, leadership and business planning to achieve the goals of their program. It just makes no sense.
From the time an organization is created, I think they have to ask the questions: Do we have the right people in place? Do we have the right business plan and strategy to execute? Do we have the support of the community and board of directors? I firmly believe every foundation should put a significant portion of their funding toward strengthening the organization versus funding some programs and services. If you don’t have the right people in place to execute the strategy then it’s not going to happen. It’s also important for foundations to give organizations time. It takes time for leaders to develop, they get better as they encounter and overcome problems, and it’s important to stick with those organizations for extended periods of time.
Photo Credit: Youth Villages
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
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