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Millennials

A Summer of Nonprofit and Philanthropic Thought Leaders

Nonprofit leadersNow that Memorial Day has come and gone, and summer is (almost) upon us, I’m excited to announce that I’m doing something a little different on the blog this summer.

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 EggerRobert Egger
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 HendersonDavid Henderson
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.

 

jessamynJessamyn Lau
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.

AdinMillerAdin Miller
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 TomaskoLaura Tomasko
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

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10 Great Social Innovation Reads: April 2014

social innovationControversy 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?

Below are my 10 favorite reads from April. Please add to the list in the comments. If you want to see a bigger list, follow me on TwitterFacebookLinkedIn, or Google+.

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

  1. 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.

  2. 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.

  3. 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.”

  4. 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.

  5. 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.

  6. 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.”

  7. 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!

  8. On the NPEngage blog, Raheel Gauba answers the fascinating question: “If Google were a nonprofit, what would its website look like?”

  9. And speaking of nonprofits online, the PhilanTopic blog released an infographic summarizing the 2014 M+R Benchmarks Study about nonprofit online activity.

  10. 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

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Is Your Nonprofit Ready for Mobile?

Mobile fundraisingHeather Mansfield’s newest book, Mobile for Good, is a nice complement to her 2011 book, Social Media for Social Good. This time around, she adds mobile to the “new media” mix and gives a detailed approach for nonprofit leaders ready to embrace changing technology.

In Mobile for Good, Mansfield sounds a warning call to nonprofit leaders. The tide of new media is swift and those nonprofit leaders who don’t embrace it will be left behind:

“Your nonprofit would be wise to assume and act upon the fact that more than 50 percent of your website traffic will occur on screens varying in sizes from one to six inches by 2016.”

And, contrary to popular belief, this shift is not just among the youngest generations of potential donors. Every generation – from Silent, Baby Boomers, Gen X, Millennials, to Gen Z – is increasingly discovering and giving to nonprofits online.

But Mansfield is not suggesting that nonprofits chuck all fundraising vehicles in favor of a singular new media approach. Rather, she urges nonprofits to embrace a multi-channel fundraising strategy, “using print, web, and email communications, and mobile and social media in order to appeal to donors of all ages and socioeconomic backgrounds.”

And in fact, reports on the death of email are unwarranted. In fact, it’s enjoying a rebirth:

“Email is not dying. It’s growing. Furthermore, every email address that your nonprofit accrues translates into $13 in online donations over a one-year period. If you think this trend is isolated to Gen X and older, it’s worth noting that 65% of Millennials subscribe to nonprofit e-newsletters.”

The key, however, is making sure that everything (your website, your e-newsletters) is responsively designed, meaning that it automatically converts to fit whatever is being used to view it (laptop, phone, tablet).

Mansfield urges nonprofit leaders to invest in new media. The nonprofit sector’s desire for free or very cheap technology solutions isn’t realistic anymore:

“It’s imperative that you find the funds and the tech know-how to position your nonprofit for future survival…One of the downsides of the rise in social media is that it has inadvertently resulted in nonprofits becoming overly accustomed to and dependent upon “free” online tools. This mindset is becoming destructive to the sector istelf…The era of free is over.”

Mansfield devotes a chapter to each of the main social media networks and gives tips and best practices for each. The problem with writing a book about such a quickly evolving space, however, is that it becomes out of date before it even hits the shelf (for example Facebook’s recent organic search changes, and LinkedIn’s discontinued Products and Services tabs). So you must view Mansfield’s tips in a larger context, and for real-time updates you can check out her Nonprofit Tech for Good blog.

Overall I think the book holds a good deal of value for nonprofit leaders, however, I do have two criticisms.

First, for the nonprofit leader already overwhelmed by new media Mansfield doesn’t effectively prioritize where to focus. By including all major social media networks and all new fundraising tools (including untested ones like Crowdfunding) she leaves the impression that there is an endless and equally valuable list of innovations to embrace. Without a framework for prioritizing where to focus it is easy for the already overwhelmed nonprofit leader to give up. She could have discussed the merits of focusing on some of the bigger bang for your buck social media networks (like Facebook) while letting others (Pinterest) go if time doesn’t allow. Or thinking through a nonprofit’s target audience and their habits and preferences in order to prioritize staff time.

Second, I must take Mansfield to task for perpetuating the nonprofit overhead myth – the idea that nonprofits should separate their “program” and “overhead” costs. As I’ve mentioned before, this myth is incredibly destructive to nonprofits by forcing them to hide or ignore the true costs of their work. In Mansfield’s “Online Fundraising” chapter, she lists 10 best practices, of which #6 is to “Include Program Versus Operating Expense Graphics,” suggesting that nonprofits create “a pie chart graphic that shows your low fundraising and operating costs.” She goes on to mention the Overhead Myth Campaign in passing, with no irony about how she is perpetuating the myth itself. Ugh.

At the end of the day, Mansfield provides a nice overview of the rapidly changing new media landscape and some great steps for what nonprofits can do to keep up.

Photo Credit: nptechforgood.com

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10 Great Social Innovation Reads: March 2014

reading catCould 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.

Below are my 10 favorite reads from March. But add what I missed in the comments. And if you want to see more of what I’m reading, follow me on Twitter, Facebook, LinkedIn, or Google+.

You can also see my favorites from past months here.

  1. 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.

  2. But at the same time, NPR describes a growing individualism in America and an emerging “Opt-Out Society.”

  3. 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.

  4. We continue to be fascinated by the Millennial generation and this infographic very nicely puts to rest some myths about them.

  5. Writing in the Huffington Post, Ashley Woods questions whether the recent focus on revitalizing Detroit is helping or hurting long-time residents.

  6. 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.

  7. 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.”

  8. 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.”

  9. 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.

  10. 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

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Is There a Millennial Opportunity for Nonprofits?

MillennialThere’s an interesting trend emerging in the future workforce, and I think it presents a real opportunity for the nonprofit sector.

Americans are increasingly fascinated with the Millennial generation (those born between 1981 and 2000), largely because they are the biggest population cohort the U.S. has ever seen. Whatever they do is sure to have a big impact. I’ve been particularly interested in how they might affect how money flows to social change.

But now I wonder how they might impact the social change workforce.

There was a really interesting article recently about how Millennials are ditching traditional careers in favor of more creative, meaningful work:

A growing number of Americans are abandoning traditional jobs for work that is more hands-on and that they deem more meaningful. For some, it is out of necessity…many people, faced with diminishing corporate opportunities, have been forced into thinking like entrepreneurs. For many, it is a choice. Old-school artisanship—like craft brewing and shoemaking and the millinery arts—is on the rise. A nation of hobbyists and fine artists have brought energy and invention to (and made more than a few bucks on) websites like Etsy and Big Cartel. There’s a sprouting up of first-generation farmers. These days, it would not be odd to see a hedge-fund manager throw it all away to become a mushroom grower. Or a Google gearhead to take up textiles. Call it the New American Dream, where uncertainty is being spun into infinite possibilities, and a pathway to unexpected freedom and deep satisfaction feels like our birthright.

Their staggering unemployment, deepening distrust of corporate America, and civic-minded perspective (the most since the Greatest generation), have all combined to make the Millennial generation crave a creative, flexible and meaningful work life.

And that could be a boon to the nonprofit sector.

I wonder if over the next couple of decades, as Millennials take center stage in the workforce, we will witness people increasingly chucking the corporate ladder for something more meaningful and flexible.

Certainly many Millennials have already, and will continue to, flock to the emerging world of social entrepreneurship, which neatly combines their love of the entrepreneurial with their drive for social change, but not all Millennials can or will want to start their own thing. For the rest of them, I wonder if nonprofit organizations might attract their interest.

For so long nonprofits have struggled to attract and retain talent because of less competitive salaries and packages than their corporate counterparts. But perhaps those benefits are increasingly less appealing to the future workforce.

Now, what nonprofits have in spades – entrepreneurial approach, flexibility, social change – could actually become a competitive advantage. What if the nonprofits of the future become the sought after refuge of creative Millennials ready to make social change, not necessarily on their own, but as part of something bigger?

Definitely an interesting trend to watch.

Image Credit: onlinempadegrees.com

 

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10 Great Social Innovation Reads: February 2014

readingFebruary 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.

  1. 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].”

  2. 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.

  3. 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.”

  4. 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.”

  5. 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.

  6. 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.

  7. 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.”

  8. 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.

  9. 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.

  10. 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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10 Most Popular Posts of 2013

UnderwoodKeyboardAs 2013 comes to a close, and we all head off for some much deserved rest and relaxation, I wanted to thank all of you wonderful Social Velocity readers. You are an inspiring group of people working tirelessly to make this world a better place. I am very thankful to be able to work and interact with you all through the Social Velocity blog.

Before I take a break from the blog until January, I want to provide a list of the ten most popular Social Velocity blog posts from this year in case you missed some of them. You can also read the 10 Most Popular Posts lists from 2011 and 2012.

I wish you all a peaceful and relaxing holiday season. I look forward to talking and working with you in 2014. Happy Holidays!

The 10 most popular Social Velocity blog posts of 2013 were:

  1. 5 Nonprofit Trends to Watch in 2014
  2. 5 Taboos Nonprofits Must Get Over
  3. Why Your Board Should Raise 10% of Your Nonprofit’s Budget
  4. 5 Reasons Your Nonprofit Isn’t Raising Enough Money
  5. Addressing the Nonprofit Fundraising Elephant in the Room
  6. Find and Keep a Great Fundraiser
  7. 5 Questions to Get Your Board Moving
  8. Getting Real About Nonprofit Overhead Costs
  9. NextGen Donors and the New Golden Age of Philanthropy
  10. The Nonprofit Sector Needs to Get Over the Fear Thing

And if you want to make sure not to miss a single post in 2014, sign up for the Social Velocity e-newsletter (and download a complimentary copy of the Financing Not Fundraising, vol. 1 e-book in the process).

Photo Credit: Wikipedia

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NextGen Family Philanthropy: An Interview with Katherine Lorenz

Family foundations prepare for next generation.In today’s Social Velocity interview, I’m talking with Katherine Lorenz, president of the Cynthia and George Mitchell Foundation. In late 2012, Forbes Magazine named Katherine “One to Watch” as an up-and-coming face in philanthropy. She also serves on the board of directors of the Environmental Defense Fund, the Institute for Philanthropy, Puente a la Salud Comunitaria, and the Association of Small Foundations.

Nell: There is a lot of interest in the next generation of philanthropists—Millennials who stand to inherit the largest wealth transfer in history. How do you think this next generation of philanthropists will be different than their predecessors and why?

Katherine: I do believe this next generation of philanthropists will be different than their predecessors. People tend to become interested in a specific issue or cause based on a personal experience—something that impacts their lives profoundly. It is only natural that this next generation of philanthropists will do their philanthropy differently; they grew up in a world that looked very different than the world their parents and grandparents grew up in. Things like 9/11 and social media were formative experiences for Millennials, so it should not be surprising that they will think differently than previous generations—just as the Great Depression had such an impact on the way their grandparents lived their lives and did their philanthropy.

A recent study by 21/64 and the Johnson Center on Philanthropy about next gen donors showed that this generation is more clearly driven by impact and effectiveness in their philanthropy than generations before them. They also want to be more hands-on in their engagement with an issue or an organization—they want to serve on boards or get involved in a more concrete way than just writing a check. They look at financial resources as only one tool in the toolbox, and seek to bring many other resources at their disposal to create change in the world.

Nell: Do you believe that next gen donors will actually divert more money to organizations that can prove they’ve created social change? Are we going to see the needle move in terms of funneling more money to proven social change efforts under their watch?

Katherine: I am not sure if we will actually see Millennial donors divert more resources to organizations that can prove they are creating social change. While I do believe this generation will ask for more metrics, and want to know the impact they are having more than previous generations, I think this group will also be open to taking more risks as they search for innovative solutions. In taking more risks, there will be more failure but also potential for more significant social change if the risk pays off. In sum, I think next gen donors will risk more and fail more than previous generations, although this should create more innovative methods that address the issues they care about.

Nell: What is your view on how family philanthropy evolves over time? For example, your grandparents’ generation’s understanding of and opinions about climate change are quite different than views about climate change now. How do changing views affect a philanthropic approach over time?

Katherine: I think that family foundations evolve with generational changes more in how they address issues than in what they address. Often a family holds very strong beliefs and values, and those are passed down from generation to generation. For example, my grandfather funded sustainability issues for more than 40 years, primarily funding large institutions or creating new institutions, and trying to bring businesses into the conversation. While climate change was an issue he cared about, the larger picture of how the earth will sustain a growing population with finite resources drove him. Those values and interests are acutely present in his children and grandchildren, although how we do philanthropy to address these issues is slightly different.

With more science available, it is clear that climate change is very clearly the biggest threat to a sustainable planet, and we are using different tools than my grandfather did to address the issue—more grassroots organizations, more policy and advocacy work, and less of a focus on big institutions. Our values around this topic very much came from my grandfather’s passion, but our approach in addressing the issue is quite different. I think a difference in generational approach is common in family foundations.

Nell: How do you think philanthropy could be more effective and better help nonprofits create change? What shifts in the philanthropic landscape are you particularly excited about seeing?

Katherine: I think one of the biggest problems in the non-profit sector stems from the relationship between the donors and their grantees. Donors often ask grantees to do special reporting or won’t pay for overhead expenses or ask them to do something outside of their current strategy. Grantees are often compelled to do these things in order to obtain funding, although sometimes they spend more time trying to please donors than doing the work at hand. Donors have unrealistic expectations of grantees, and non-profit leaders usually spend more time fundraising than working on the issue they were funded to address.

I would really like to see donors and grantees operate more like partners, and less like one is doing a favor for the other in exchange for funding. I would like to see donors fundamentally shift the conversation from a focus on lowering overhead costs to a focus on maximizing social benefit. Who cares if overhead is high if the organization is actually making a dent in the issue they’re trying to solve?

One shift I see in the philanthropy world that excites me is the growing number of groups that exist to help donors be more effective. Donor education is growing in popularity. Inheritors are realizing that doing philanthropy well is a serious job and requires training. As the field of donor education grows and formalizes, I think we will see donors doing a better job of allocating resources for social benefit.

Photo Credit: Cynthia and George Mitchell Foundation

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