October brought some great discussions in the blogosphere, including a forum on whether regulations around donor advised funds should change, concerns that we are working too hard, the need to better retain donors, and a debate about whether social media is (or can be) an effective fundraising tool. Round that out with examples of successful crowdfunding and volunteer skill crowdsourcing, and it was a good month.
Below are my picks of the 10 best reads in the world of social change in October. But, as always, let me know what I missed. And if you want a longer list, follow me on Twitter, LinkedIn, Facebook or Google+.
And if you want to see past 10 Great Reads lists go here.
- Donor advised funds (DAFs) have come under fire in recent years. There was an interesting discussion in October at the Boston College Law School Forum on Philanthropy and the Public Good about whether regulations on donor advised funds should be changed. In advance of that forum, history professor Lila Corwin Berman provided an historic perspective (on the HistPhil blog) including the fact that “donor advised funds fundamentally changed the balance of public and private power in the United States starting in the 1970s.”
- John Hopkins University professor Lester M. Salamon released a new book in October, The Resilient Sector Revisited: The New Challenge to Nonprofit America in which he lays out a framework for understanding America’s nonprofit sector. An excerpt from the book in the Nonprofit Quarterly examines “The 4 Impulses of Nonprofits“, as he describes it: “The nonprofit sector has long been the hidden subcontinent on the social landscape of American life, regularly revered but rarely seriously scrutinized or understood.” His book is an attempt to do just that.
- The Association of Fundraising Professionals and the Urban Institute released their annual Fundraising Effectiveness Survey Report with some startling data, like: nonprofits retained only 43% of their donors in 2014, and for every $100 a nonprofit brought in they lost $95 to lapsed and reduced gifts. So the challenge for nonprofits, says AFP president Andrew Watt, is to get better at retaining donors: “Donors do not simply choose a few charities to support and stick with them every year. Donors are remarkably inconsistent in their giving, whether it’s because they lost interest in a cause, were giving because a friend or family member asked them, or did not like how the charity was treating them. The charitable sector’s challenge is to figure out how to better inspire and retain donors from year to year.”
- And speaking of fundraising, Nonprofit Tech for Good donated $800 to 32 nonprofit organizations via the nonprofit websites and shared some important lessons for other nonprofits trying to fundraising effectively online. But Derrick Feldmann cautions that social media fundraising is not the panacea many board members might think. The new “Social Good Team” at Facebook might disagree because they have big plans for social media and the nonprofit sector.
- Kickstarter, the crowdfunding website, re-incorporated as a public benefit corporation in order to put their social good mission above profit, and then partnered with the United Nations to raise money for Syrian refugees.
- While we’re on the power of the crowd, in his ongoing Fixes blog, David Bornstein profiles Movement.org, a crowdsourcing site that connects human right activists and skilled volunteers. As David Keyes, one of the leaders, describes the platform: “Amazon says that you don’t need to be a bookstore to sell a book and Uber says that you don’t need to be a taxi service to drive a taxi. I realized that you don’t need to be an N.G.O. to fight a dictator, or a political leader to help a human-rights activist. Millions of people around the globe have the skills to help, and they’re currently not being utilized. If we could build a bridge between these communities, more people could be helped than we ever thought possible.”
- And in more solutions news, South Los Angeles, once an urban food wasteland, is becoming a hub of food activism with a focus on startup, affordable eateries that are committed to building a strong, healthy community.
- Companies are already getting ready for the holiday season mix of commercialism and philanthropy and Amy Schiller worries that Bloomingdale’s “Icons w/ Impact” marketing campaign highlighting celebrities, fashion and philanthropy is a worrisome shift in philanthropy. But I’m hoping that the HistPhil blog will chime in with a reasoned, historical perspective.
- Poor strategy will get you in the end. The breast cancer nonprofit, the Susan G. Komen Foundation came under fire a few years ago for some poor strategic decisions (like aligning with Kentucky Fried Chicken and pulling funding from Planned Parenthood), and it looks like those decisions have dramatically affected their fundraising.
- Phil Buchanan from the Center for Effective Philanthropy has a problem with our workaholic culture. He and his organization have learned from the Millennial generation’s more balanced (than Gen X’s or the Boomer’s) approach to work and life, and he suggests we do the same: “The millennials don’t care that this is what we might have done at that stage of our careers. In fact, they look at us and are quite clear they don’t want to be us — they don’t want to make the same mistakes!” Amen!
Photo Credit: Museum of History and Industry, Seattle
In the nonprofit world marketing is fairly misunderstood. “Marketing” is the act of segmenting the potential market for your products or services and then targeting the right segment(s) in order to convince them to “buy.” While in the for-profit world there is typically just one customer, in the nonprofit world there are (at least) two distinct customer groups:
- Those benefitting from your products or services (“Clients”) and
- Those buying your products or services (“Funders”)
Often, marketing to Clients is less tricky because demand is so high for a nonprofit’s services. So the real challenge is to create an effective marketing strategy to attract Funders. But even within that category there can be many different types, depending on a particular nonprofit’s business model. Marketing to foundations vs. individuals vs. earned income customers vs. government contractors — it can get quite complex.
Which is why it is so important for nonprofit leaders to understand some basics about how marketing works.
You Must Know Who You Are Marketing To
Market segmentation is thinking strategically about which specific people you are trying to reach within the vast universe. Anyone who has money should NOT be the target of your nonprofit’s fundraising efforts. Instead, you have to think about what distinguishes people who have an affinity for your work from the rest of the world. Clearly define their particular demographic (age, gender, income, job) and psychographic (lifestyle, interests, attitudes) characteristics. Create some “target personas” (HubSpot has a great tool for this) that define your target group(s) along different dimensions and then tailor your marketing efforts to where they are and what specific messages will compel them to act.
There’s No Such Thing as “Raising Awareness”
I can’t tell you how many times I’ve heard a nonprofit leader say that they are holding an event, or trying to generate media coverage, or sending out a mailer in order to “raise awareness.” Let me be blunt — that phrase is meaningless. Whose attention (specifically) are you trying to capture (see #1 above)? And are you trying to get their attention in the places they already are? And are you talking with them in a way that is meaningful and will encourage them to act? When you attempt to “raise awareness” without a specific and targeted strategy you are just shouting in the wind.
The Market Is Increasingly Crowded
And now more than ever you are shouting in the wind because of the rapidly changing digital environment in which we all live. We are bombarded with an exponentially increasing amount of messages every day. It is completely overwhelming. So unless you get really specific about who exactly you are trying to reach and how exactly you are going to compel them to act (again, see #1 above), you are hopelessly lost.
Push Marketing is Dead
And because of this rapidly changing digital environment, push marketing — the traditional approach of sending out a press release, putting an ad in the paper, sending a direct mail piece, or any other way you PUSH out a message and hope people will act — has become completely ineffective. Instead you want to use PULL activities where you create and participate in communities where your target personas are already present. You connect with them, empower them to get involved and then let them tap into their own networks to help your jointly held cause.
You Must Embrace The Network
In the end you must create a completely different philosophy about marketing. Stop creating your mission in a vacuum and then begging for any and all support to make it happen. Instead, you must break down the walls of your organization and tap into networks outside that have similar social change goals and who can work with you to make that change happen. Rather than investing in an advertising campaign, use those resources to create a network strategy to identify key influencers who can help move your goals forward and connect with them to figure out how you can work together. We live in an increasingly networked world and only those who connect with it will thrive.
You must reinvent your marketing approach. Instead of shouting a message and hoping someone will listen, get strategic about identifying people who can become partners in making a joint social change vision happen.
Photo Credit: pexels.com
Since I was out of the office for a good chunk of July and August, I’ve decided to combine both months into one 10 Great Reads list. But let me be clear, there was still lots going on, I just happened to be (somewhat blissfully) missing it.
From philanthropy’s role in inequality, to climate change preparation, to what the Greek financial crisis teaches us about networks, to civic engagement, to digital’s effect on fundraising, to social impact bond results and pizza on the family farm, they were a great couple of months.
In my (limited) view, below are my 10 favorite reads from the past two months. But because I know I missed things, please add to the list in the comments.
- President of the Ford Foundation Darren Walker made a lot of news this summer, from his announcement of Ford’s shift to focusing on inequality and unrestricted grants, to his July release of a thought-provoking essay in which he took foundations to task. He argued that foundations have been “cutting the pie into smaller slices,” and he instead encouraged funders to embrace “a new era of capacity building investment.” Because, as he put it, “What civil society needs most, and now more than ever, are resilient, durable, fortified institutions that can take on inequality, fight poverty, advance justice and promote dignity and democracy.” Amen! Ford’s move kicked off an excellent Inequality and Philanthropy forum on the HistPhil blog. And Inside Philanthropy‘s David Callahan argued that Walker’s message is about significant change, which may be tough for the sector to hear.
- In a fascinating (and rather depressing) article, Eric Holthaus from Slate talks to climate scientists about how they are personally responding to the climate crisis, particularly how they have “factored in humanity’s lack of progress on climate change in [their] families’ future plans.” Yikes.
- Reserve funds are an incredibly critical (but often misunderstood) aspect of nonprofit financial strategy. But as she always does, Kate Barr from the Nonprofits Assistance Fund provides a clear roadmap to understanding.
- Paul Vandeventer uses the summer’s Greek Euro crisis to illustrate when networks (of which the Eurozone is an excellent example) thrive and when they fail. As he puts it, “Ignoring or giving short shrift to…the fundamental principles by which networks operate wastes precious reserves of time, money, and goodwill, and imperils all the hopeful good that organizations, institutions, and countries set out to achieve when they start down the path of networked action.”
- Late July saw a fascinating gathering of social changemakers around civic engagement, the “Breaking Through” conference, hosted by the Knight Foundation. Keynoter Peter Levine argued “This is the year that we can take back American politics. It’s up to us.” It was a great lineup of speakers and sessions about getting people engaged again. You can see video from the conference here.
- Is digital becoming a gamechanger in fundraising? Some think so. And in August Facebook launched a new Donate button, but is it really all that helpful to nonprofits? Some argue that Facebook is critical. Others think the Donate button is a fail.
- August of 2014 saw the record-breaking ALS Ice Bucket fundraising challenge. Many (including me) were skeptical of the campaign, but it turns out that last summer’s financial windfall helped scientists make a breakthrough in research to fight the disease.
- This August was the 10 year anniversary of hurricane Katrina. There were many great articles about where New Orleans has been and is now. But my two favorite were Greater New Orleans Foundation President Albert Ruesga’s Ten-Year Perspective on the philanthropic response, and Andrea Gabor’s New York Times article, The Myth of the New Orleans School Makeover.
- The first results came in from the New York state social impact bond experiment, and they weren’t great. Goldman Sachs invested in a Rikers Island program that attempted to reduce recidivism among teenagers.The program failed to meet its goals and Goldman lost money. But New York is not giving up, as first Deputy Mayor Tony Shorris said, “This social impact bond allowed the city to test a notion that did not prove successful within the climate we inherited on Rikers. We will continue to use innovative tools on Rikers and elsewhere.”
- I’m always a fan of examples of innovation. NPR provided a glimpse of how family farms are using pizza to reinvent their business model.
Photo Credit: Anne Adrian
In today’s Social Velocity interview I’m talking with Jay Geneske, Director of Digital at The Rockefeller Foundation.
Jay directs the Foundation’s digital strategy to engage internal and external audiences, champion organization-wide collaboration, deliver data that informs organization decisions, and pioneer new ways to hear and share innovative ideas. Jay previously served as the Director of Online Communications for Echoing Green, and has also served in digital and brand strategy roles at Carnegie Hall, Shedd Aquarium, and Steppenwolf Theatre.
You can read past Social Velocity interviews here.
Nell: Your role as head of digital for a major foundation is a pretty new kind of position in the world of philanthropy. Obviously the Rockefeller Foundation sees a lot of value (beyond marketing) in digital. How does digital play into the Foundation’s overall strategy?
Jay: Like every other sector, digital has changed the game for social impact. At the Rockefeller Foundation, I’ve been tasked to pioneer new ways to hear and share innovative ideas and perspectives on serving the needs of poor or vulnerable people in a time of rapid change.
That’s a tall order, but an exciting one.
This remit certainly includes how we utilize digital media to tell the story and impact of our work, to bring valuable information to those working in the sector, and to elevate our staff, grantees, and partners as thought leaders.
But digital goes far beyond traditional communication or marketing.
For external audiences, our digital focus is on influence. A carefully planned Twitter campaign can influence a policy maker to prioritize building resilience to the shocks and stresses facing their city. A data-informed segmented email can make a practitioner think more innovatively about solving a social or environmental problem. A well-crafted blog post syndicated on Medium, LinkedIn or elsewhere can connect our staff members to an important partner in the private sector.
Digital also plays an increasingly critical role for our internal audience. We’re reimagining how we work with each other and our hundreds of external partners by meeting people where they are and embracing nimble digital technology. For example, we’re bringing all of our files to the cloud for easy access around the globe and on mobile devices. We’ve also just launched an internal hub that brings valuable real-time data directly to staff members’ fingertips and also more easily captures and stores the critical informal knowledge and insights—typically stuck in email inboxes—that drive strategic decision-making.
What’s most important is the connective tissue between internal and external audiences, and confronting and embracing the increasing overlap and intersection to make us more effective.
Nell: The Rockefeller Foundation turned 100 in 2013 making it one of the oldest U.S. foundations. But the Foundation obviously works hard to stay relevant amid changing social challenges, technology, modes of communication, etc. What drives the Foundation’s desire and ability to be so nimble?
Jay: Our mission has always been to improve the well-being of humanity. To achieve that mission, we must work in a way that is suited to a rapidly changing world, especially where technology and greater interconnectedness have accelerated change and altered the way people live.
This reality manifests throughout our formal initiatives, such as Digital Jobs Africa, which is connecting Africa’s rapidly growing youth population with jobs in the ICT sector. Technology has also clearly changed the game for how and where we do our work. For example, I’ve awarded grants to networks with a robust online presence with the aim to surface new ideas and connect to new people who are solving big social issues.
But in many ways, the sector is just scratching the surface, particularly around data. As David Henderson from FII recently noted, for data to change the world, we must think beyond software and data visualizations. There is a serious lack of investment and focus on how to turn data into action.
Nell: A big initiative at the Rockefeller Foundation is the 100 Resilient Cities project that works to help cities adapt to the “new normal” of continuous disruption. How are you using digital in this particular project?
Jay: Digital plays a critical role in this initiative where our digital strategy is focused on influencing policy and business leaders and practitioners to focus on building resilience to physical, social, and economic challenges facing the world.
Through this work we’ve learned that content is the key to building influence. Our multichannel editorial strategy centers on creating and curating relevant, insightful, and vibrant content that our audience will find immediately actionable. It’s amazing to see how that content then travels around the social web, especially by politicians and business leaders.
We also know that reach is not the same as influence. Although growth is important, our focus has always been on influencing a specific audience, many of whom may not have huge a Twitter following.
Nell: In your work you talk about “digital storytelling” as a critical component of effective social impact, which goes far beyond a more traditional nonprofit approach to marketing. What does effective digital storytelling look like and what is the return on investment for a nonprofit?
Jay: While there have never been more ways to reach audiences, it has also never been more difficult to really reach them. I’ve also noticed a fast increase in big brands infusing questionable social change messaging and stories into their communications, and I worry that organizations driving real social impact will be left behind.
The Foundation has invested in storytelling –including launching the free tool Hatch for Good— to help organizations tell stories that are strategically planned, creatively crafted, and designed to achieve measurable outcomes.
In many ways, storytelling is an angle or a focus in social impact communications and marketing. It’s a way to stand out, to inspire action and donations, to drive policy change.
We’ve had tens of thousands of people use Hatch for Good in beta, and what’s become clear is that, for all the good they do, our mission statements are preventing us from telling effective stories. We try to insert them, sometimes word-for-word, into every story. And the result is a story so crowded that our audience never had a chance to take action.
Effective storytelling shows the human consequences of the problem our organizations address—and the solutions that give people hope. Stories about the people whose lives are directly affected by the work, and about the people who join forces with us to create change. These stories exemplify our mission statement, but are not bound by it.
When done strategically, these stories can prove a return on investment, case studies of which are posted on Hatch for Good.
We talked about:
- How broken fundraising is
- A more effective financing approach
- Nonprofit fear of money
- The passion of nonprofit leaders
- The need to articulate a nonprofit’s message
- Capacity capital
- Social entrepreneurship
- Nonprofit boards
- And much, much more…
I really enjoyed the conversation and hope you will too.
You can listen to the podcast below, or click here to listen to it on the Panvisio site.
Photo Credit: Makingster
There are many misconceptions about fundraising. One of which is that there is a magic bullet out there (the perfect event, a connection to a celebrity) that will create a financial windfall. Often in the nonprofit world board and staff members so despise fundraising that they desperately search for a shiny object to make it all go away.
But the reality is that fundraising is an ongoing affair. Financial sustainability comes from a strategic financial model, a piece of which often includes loyal, committed donors who passionately believe in your work. And you create that by finding donors who share your view of a social problem and then creating a compelling fundraising ask to convince them to invest.
A Message of Impact does this by describing how your nonprofit creates social value and why a donor should partner with you in creating that value.
Adding to the growing library of Social Velocity Slideshare presentations, below is the How to Create a Compelling Fundraising Ask slideshare, which describes the process for developing your nonprofit’s Message of Impact.
Instead of spending board and staff time trying to dream up the next ice bucket challenge, find a connection to the biggest celebrity, or invent the next must-attend gala, use that effort to create a Message of Impact that will create a cadre of donors who will support you over the long haul.
Take a look.
In today’s Social Velocity interview, I’m talking with Josh Silver, Director of Represent.US, an organization building a movement to pass tough anti-corruption laws in cities and states across America. His local approach to political and social change is a fascinating model. Josh is a veteran election and media reform executive and served as the campaign manager for the successful 1998 Arizona Clean Elections ballot initiative campaign. He is also the co-founder and former CEO of Free Press, a leading media and technology reform advocacy organization. He also served as the Director of Development for the cultural arm of the Smithsonian Institution.
If you want to read past interviews in the Social Velocity interview series go here.
Nell: With Represent.Us you take a city-by-city or state-by-state approach to political reform, instead of a nationwide approach. Why do you think a local approach holds more promise?
Josh: It’s all about momentum. Every poll available has shown that Americans of all political affiliations — conservatives, progressives, and independents alike — support tough, new anti-corruption laws. But, as with so many other issues, these wildly popular reforms are going nowhere fast in today’s Washington.
If we want to break the gridlock at the national level, we need to be pragmatic about where we focus our efforts. Rather than throw ourselves at a brick wall in Congress, we’re taking this fight to the thousands of cities and 27 states where we can use the ballot initiative process to bypass compromised local legislatures and put tough, new anti-corruption laws directly to a public vote.
Focusing on city and state initiatives is both good policy and good politics. In policy terms, many state and local anti-corruption laws are even more out of date than federal law and in significant need of reform. We can and should do everything in our power to make the exchange of money and favors for political influence illegal at every level of government.
In political terms, using a local ballot initiative strategy will allow us to start racking up wins immediately, showing an understandably cynical public that change is possible and building momentum for national reform. While self-interested politicians might be reluctant to change the system that got them elected, the public will overwhelmingly vote for a local Anti-Corruption Act if given the opportunity.
Advocates of marriage equality and marijuana legalization have seen huge success with the same strategy. 20 years ago, both issues faced seemingly insurmountable odds in Washington. By picking smart targets at the state and local level, they’ve managed to redraw the political map and set their campaigns on the path to national victory.
We’re running the same playbook, and it’s already working. On November 4, 2014, Tallahassee, Florida passed the first municipal Anti-Corruption Act in the United States by a two to one margin. Now, campaigns for new Anti-Corruption Acts are already in the works for twelve cities and two states in 2015 and 2016.
Nell: As you mentioned, your approach is part of a larger state-by-state reform trend, with movements like the state-by-state legalization of gay marriage and of marijuana. Why does the state-by-state approach work now and will we ever go back to federal level reform?
Josh: The state-by-state approach works because it allows Americans to take matters into their own hands when politicians refuse to act. Instead of worrying about local politicians carving out loopholes for themselves and their parties, the People can craft their own comprehensive reform plan, gather the signatures necessary to place it on the ballot, and put their local Anti-Corruption Act directly to a public vote. Given the popularity of the reforms we’re talking about, these local Acts are very likely to pass, building the movement from the ground up and creating a domino effect which will spread from state to state and eventually Washington, DC.
Passing a statewide ballot initiative can fundamentally change a state’s political culture. It sends a clear message to every elected official in the state, including that state’s federal delegation. Every time we pass a statewide anti-corruption act, it makes it possible for federal candidates in that state to run for Congress and win without the backing of big money special interests. So, every state we win means more members of Congress who support comprehensive nationwide reform. Once we’ve attained a critical mass of support in the states, federal level reform is inevitable.
Nell: A big part of what you do involves creating coalitions of strange bedfellows, for example Tea Party loyalists and progressives. How do you circumvent our current environment of the dismissive or openly hostile discourse between opposing viewpoints and get people to find some common ground and work together?
Josh: Americans self-identify as roughly one-third Conservative, one-third Progressive and one-third Independent. Maintaining a fiercely cross-partisan campaign is critical to our long-term success — winning national reform is impossible with only one-third of the country behind you.
We’ve found that the people fighting at the grassroots are sick of the gridlock in Washington, and much more willing to work across partisan lines than their members of Congress. While our supporters might not agree on everything, they’re united behind the fundamental belief that government — no matter how large or how small — must put the needs of the People first. Public policy decisions should be made based on merit, not lobbyists and campaign contributions. Our supporters are willing to put their partisan differences aside and work together to make that happen.
The effort behind the Tallahassee Anti-Corruption Act is a perfect example of this principle in action. It was spearheaded by the chair of the Florida Tea Party Network, the former president of the Florida League of Women Voters, the chairman of Florida Common Cause, and a leader of Integrity Florida, an independent state ethics watchdog. This politically diverse coalition played an enormous role in the Tallahassee victory. As the editorial board of the Tallahassee Democrat, the local paper of record, put it: “When you have representatives of the League of Women Voters, Common Cause, Integrity Florida and the state Tea Party Network all aligned against you, it might be time to reassess your position.”
Nell: You just won your first victory by passing an anti-corruption code in the city of Tallahassee, FL. Let’s be idealistic for a second. What if you are able to log victories like Tallahassee’s in cities and states across the country. Is there a critical number of places before the movement becomes truly national? And then do you look at federal reforms? Or is the end goal every city and every state?
Josh: There is no “magic number” — Each state-level win makes national reform more likely. Every statewide victory means more Congressional delegations from states with an Anti-Corruption Act, and more public pressure on politicians to get on the right side of this issue or risk losing their seats.
While winning a federal Anti-Corruption Act is a major goal, bringing reform to every city and state is just as important. This movement is bigger than any one law — it’s about fundamentally changing the political culture of the United States. It’s about demonstrating that Americans will not tolerate laws putting self-interest before the public good, and ensuring a government committed to serving the People at every level.
It’s not a question of idealism. This movement is real, and has no plans of slowing down. We’re planning to bring local Anti-Corruption acts to 12 cities and 2 states in 2015 and 2016. We are already working with local law firms, political strategists and grassroots activists to make it happen.
If you’d like to be part of it, visit represent.us to learn more and join the campaign.
Recent studies of nonprofit donors have found that the majority aren’t interested in impact. But what if that current reality isn’t also future reality but rather an opportunity? What if just as Apple created a market for smartphones where one didn’t exist, we could create a market for social change funding where one currently doesn’t exist?
As I mentioned in my 10 Great Reads list for January, data wonk Caroline Fiennes reviewed recent studies on donor behavior and found that donors don’t increase their donations when shown nonprofit performance data. And Caroline is not alone, others have also argued that donors just don’t care about performance.
This could be depressing because if donors aren’t interested in the effectiveness of a nonprofit they won’t shift their money to the nonprofits more effective at creating social change. In other words, we have no hope of solving social problems if we can’t channel money to those entities that are actually solving those problems.
Apple is probably the most obvious example of a market maker, creating consumer demand where there was none. They have continually created innovative products for swooning consumers who previously had no idea they needed those products. Before creating the first iPhone prototype in 2006 Steve Jobs didn’t survey consumers to ask if they wanted their phone to surf the web, send emails, and take pictures. A majority of consumers would probably have said no. Rather, Apple saw a need that consumers didn’t yet know they had (what marketers call a “latent need”) and built a huge consumer base from scratch.
They were market makers, as Fred Vogelstein described in the New York Times Magazine:
Apple’s innovations have set off an entire rethinking of how humans interact with machines. It’s not simply that we use our fingers now instead of a mouse. Smartphones, in particular, have become extensions of our brains…Its technology is changing the way we learn in school, the way doctors treat patients, the way we travel and explore. Entertainment and media are accessed and experienced in entirely new ways.
Jobs and his team created a completely different marketplace, set of cultural norms, and way of interacting with the world around us.
In the world of social change we need a completely different marketplace, set of cultural norms, and way of channeling money. So we need to create the market.
We need to show funders that the current flow of money to social change efforts is not sufficient or efficient. If we truly want solutions to our social challenges, we must create an effective financial market for those solutions.
I believe that funders can be inspired to change their behavior. They have a latent desire to see their dollars actually achieve something. They have been so used to the lowest common denominator of giving based solely on reciprocity or emotion, but that can change.
As Harvard Business Review blogger Umair Haque explains, Apple’s success comes from their ability to rise above the common denominator and create something people love and truly (though they may not yet know it) want:
Most companies…don’t care about what they make. They merely care about what they sell. And so they…offer the people they call consumers the lowest common denominator designed by focus-group led committees at the everyday low price in malls full of stores full of shelves full of…other lowest common denominators designed by committee at the everyday low price. Nobody ever loved anybody who was merely trying to sell them something. Especially not the lowest common denominator. People love people—and organizations—that make their lives better. Even when those things are as simple as phones.
The data and the focus groups may say that donors don’t want impact. Yet. So its up to us to create the market. It is up to us to get donors to love the impact that makes clients’ lives, donors’ lives, and ultimately our communities better. It’s up to us to create demand for funding real social change.
Photo Credit: Matthew Yohe