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Philanthropy

Using Digital to Influence Social Change: An Interview with Jay Geneske

jay geneskeIn 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.

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Guest Post: Nonprofits Must Be Able to Adapt

antony bugg-levineNote: As you know, I am taking a few weeks away from the blog to relax and reconnect with the world outside of social change. I’ll be back later this week, but I have left you in the incredibly capable hands of a rockstar set of guest bloggers. The last, but certainly not least, is Antony Bugg-Levine. Antony is CEO of Nonprofit Finance Fund, a national nonprofit and financial intermediary that works with philanthropic, private sector and government partners to develop and implement innovative approaches to financing social change. Here is his guest post… 

When we asked nonprofit leaders to identify top challenges as part of Nonprofit Finance Fund’s 2015 State of the Nonprofit Sector Survey, 32% said “achieving long-term sustainability,” by far the most popular response.

What does it take to reach the promised land of sustainability? It may seem counter-intuitive, but one of the best measures of organizational sustainability is not stability but adaptive capacity, the ability to act as circumstances require and opportunities allow. A truly sustainable enterprise must have the capacity to nimbly respond to external conditions. A strong balance sheet must allow for flexibility.

In the nonprofit sector, where pursuit of a mission is paramount, the ability to thoughtfully tack toward progress as funding conditions and community needs change is a hallmark of a success. That does not change the reality that our sector is notorious for restricted funding and hampered by a lack of available enterprise-level investment capital.

So, how do organizations build adaptive capacity?

Here are a few ways that nonprofits can build their adaptive “muscle” and be better prepared to change as the environment demands and opportunities allow.

Know your costs.
Nonprofits must understand the true costs of providing programs in order to make informed decisions about whether grants or contracts are able to cover those full costs, and how much subsidy might be required from other sources to fill the gap.

Many times, we see nonprofits use a grant amount as a starting point, and try to design a program that fits with the award amount. Heights and Hills, which provides services for older adults in Brooklyn and their families, asked us to help them take a different approach. Using customized tools, leadership now understands not only the current costs of running particular programs, but also how those costs change based on a variety of factors.

Like Heights and Hills, nonprofits need to be able to answer questions such as:

  • “Which programs may be too costly if they are not fully supported by direct revenue?”
  • “How do our costs change if we expand a program and need to hire additional staff?”
  • “What if the amount of grant funding changes?”
  • “Where might collaboration with another organization serve us well?”

Just say “no.”
The social sector attracts passionate activists who have a knack for seeing solutions where others see problems, and who are often driven by a deep inclination to say “yes” to those in need. But in order to build and preserve adaptive capacity and to truly remain mission focus, leaders must protect the nonprofit enterprise and its ability to continue its work. The common practice of accepting pennies on the dollar to deliver programs perpetuates unhealthy funding patterns and expectations. Armed with data about true costs makes it easier to say “no” to opportunities that ultimately detract from an organization’s ability to move the needle on mission.

New York’s Committee for Hispanic Children and Families did just that, and declined to pursue a large government contract because it sapped too many “indirect” resources. While at first glance, it seemed that the small allotment for “overhead” was enough, the amount didn’t nearly cover actual costs associated with the time that executive, finance and administrative staff were spending to keep the program afloat.

Saying “no” to a fiscally unhealthy grant preserves the organization’s ability to serve its clients well into the future. If we want to change embedded, unhealthy funding practices — and perhaps even elements of nonprofit culture that fuel these — we must be more willing to say “no.”

Measure outcomes.
Ultimately, the benefit of adaptive capacity is the freedom to pursue what works. Some programs are more easily measured than others, but nonprofits and our funders need to invest in understanding impact. This is especially critical as we move toward an outcomes-based funding environment.

Scenarios USA, a nonprofit that uses storytelling for youth sex education, found a rare partner in the Ford Foundation when it decided to dramatically change its approach. Scenarios was open to asking, “Are our programs working?” and accepted that its core assumptions were inaccurate. With the Ford Foundation’s support, the organization revamped its program to focus on fostering critical thinking, which has tremendous influence on youth behavior.

Evaluating programs, experimenting with new ways of meeting mission and measuring outcomes over time are necessary to positive social change.

Seek support for major changes.
Money for programs is far more plentiful than money for enterprise-level change. Our survey found that nearly half of nonprofits report that they can have an open dialogue with funders about expanding programs, but just 6% feel comfortable conversing with funders about flexible capital for organizational growth or change.

There are exceptions. The California Community Foundation has partnered with Nonprofit Finance Fund and several others to offer strategy, management, and financial services aimed at strengthening the region’s nonprofits and building the durability of the sector. New York Community Trust has launched an initiative to help small arts organizations navigate various transformations and milestones such as leadership succession, business model changes, and facility renovations or moves. And New York’s Change Capital Fund is a collaboration of 17 foundations and financial institutions that is funding five New York community development organizations to help them refocus their strategies and develop new business models to address persistent poverty more effectively.

It is time to challenge the notion that funders aren’t willing to talk about money for adaptation and adaptive capacity, and to make the case for the right kinds of support.

It is hard to know what will be required of our sector in the years to come, but a steady trend of increased demand seems to indicate that the answer will be, “more.” Limited resources make doing more of the same nearly impossible. We must change the way we approach the challenges of our day, and organizations with adaptive capacity will lead the way.

 

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Guest Post: What Funders and Nonprofits Can Do To Solve the Sector’s Talent Troubles

kathy reichNote: As I mentioned earlier, I am taking a few weeks away from the blog to relax and reconnect with the world outside of social change. But I am leaving you in the incredibly capable hands of a rockstar set of guest bloggers. Next up is Kathy Reich. Kathy is Organizational Effectiveness and Philanthropy Director at the David and Lucile Packard Foundation where she helps grantees improve their strategy, leadership, and impact. Here is her guest post… 

Philanthropy pundits often exhort nonprofits to “act more like businesses.” Usually I disagree; in fact, I think there’s a great deal that businesses could stand to learn from nonprofits.

In at least one area, though, I admit that all too frequently nonprofits lag their for-profit peers. Nonprofits simply do not invest enough time or money in talent assessment, development, and management.

Major national surveys provide a helpful snapshot of the nonprofit sector’s talent troubles. In the Bridgespan Group’s Nonprofit Management Tools and Trends 2014 survey, which polled almost 500 nonprofit organizations about their current management practices, nearly 60 percent of respondents agreed or strongly agreed that “hiring, training, and retaining staff is one of our greatest challenges.” Yet the survey found that only 40 percent reported using talent assessment and development tools, and just 38 percent said their organizations engage in leadership succession planning.

Similarly, in the Nonprofit Finance Fund’s 2015 State of the Nonprofit Sector survey, which included responses from more than 5,400 nonprofits nationwide, respondents were asked to name the top three challenges facing their organizations. “Ability to offer competitive staff pay and/or retain staff” was ranked in the top three by fully 25% of the respondents, behind only “achieving long-term financial sustainability” as one of the top three challenges facing nonprofits. Yet the same survey found that just 37 percent of respondents had invested money or time in staff professional development in the past year. Only 28 percent had given cost-of-living raises, and 18 percent had given raises beyond COLA.

At the Packard Foundation, program officers tell me that they see signs of this underinvestment almost every day. Some problems that our nonprofit grantee partners routinely report:

  • Executive turnover is frequent, and often traumatic.

  • Nonprofits have a hard time finding appropriate candidates for senior management roles, including CEO, program executives, development directors, and communications directors.

  • The leadership many nonprofits have is not reflective of the leadership that they need, or the communities they serve. In most of the fields in which the Packard Foundation works, nonprofit leadership remains predominantly white, male, and middle-aged, even as our country becomes younger, more diverse, and hopefully, more committed to racial and gender equity.

  • Emerging leaders under age 45 report high levels of career dissatisfaction, driven in part by lack of professional development and advancement opportunities. In a 2011 Young Nonprofit Professionals Network survey, only 36 percent of respondents said that their organization invested in “bench strength” to develop emerging leadership. Of that group, less than 47 percent said their organization implemented these investments effectively.

Nonprofits and foundations both have critical roles to play in ensuring that the nonprofit sector has a robust, diverse talent pipeline now and in the future. First, foundations need to step up their financial support for leadership. The private sector spends $12 billion annually, an average of $120 per employee, on developing leaders, investing in their management and technical skills so that they can move up the ranks or excel in their current jobs. In contrast, philanthropy’s investment in nonprofit leadership development totals an average of $29 per employee annually.

Foundations can do much more. Some concrete ways that they can help:

  • Fund nonprofit overhead so that nonprofits have enough money to pay their people competitively and can have the operations in place necessary to support their staff and manage their talent. Depending on their size and talent needs, some nonprofits may need to hire a Chief Operating Officer, a Human Resources Director, or a Chief Talent Officer.

  • Support nonprofits to develop “right-sized” performance assessment and management systems, as well as meaningful succession plans for key leaders.

  • Include funds for staff professional and leadership development in project support grants.

  • Incentivize nonprofits to develop cultural competency in hiring and management so that they can attract and retain diverse employees.

But foundations cannot tackle this issue alone. No matter what their size, nonprofit boards and executive leadership need to focus on talent issues and ensure they have appropriate plans in place to manage and develop staff for their organizations. They need to implement thoughtful, intentional strategies and process to ensure that they are identifying their own talent needs, assessing the strengths and growth areas of their staff, and providing ongoing development and feedback to all employees, particularly those with high growth potential. And they need to make the case for talent to their funders, along with concrete examples of how investing in leadership capacity will improve outcomes.

In the nonprofit sector, as in business, leadership matters. Let’s be sure we’re all investing our time, and our money, where it counts.

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Guest Post: Is Maximizing Returns the Right Approach for Foundation Endowments?

phil buchananNote: As I mentioned earlier, I am taking a few weeks away from the blog to relax and reconnect with the world outside of social change. But I am leaving you in the incredibly capable hands of a rockstar set of guest bloggers. Next up is Phil Buchanan, President of the Center for Effective Philanthropy (CEP), the leading provider of data and insight on foundation effectiveness. He is also a columnist for The Chronicle of Philanthropy and a frequent blogger for the excellent CEP Blog. Here is his guest post…

When it comes to the debate about the social impact of endowment investments, college and university campuses – not foundations – seem to be where the action is. Foundations have hundreds of billions of dollars in assets but, today, most of the large ones appear to be placing no restrictions whatsoever on how their endowments are invested.

Divestment is hardly a new issue, of course. In the late 1980s, when I was deciding where to go to college, many campuses were racked by a heated debate over divestment from companies doing business in apartheid South Africa. In the 1990s, the issue was divestment from tobacco companies. Today, a similar debate is playing out over fossil fuels, for-profit prison companies, and other investments

True, most college boards are still refusing to limit their investment options much, if at all. From what I understand, the arguments against divestment that get made in college and university – as well as foundation – boardrooms include that divestment doesn’t accomplish anything, that it’s a board’s fiduciary duty to maximize returns, and that ruling out some investments risks a slippery slope in which an increasing number of industries are ruled out for moral reasons.

But it’s a very live issue in higher education and some institutions are, in fact, drawing boundaries around how their endowments can be invested. They are deciding — usually after sustained student and faculty pressure — that their monies should not support certain industries.

Stanford University divested from coal companies in 2014 and, this year, Syracuse University divested entirely from fossil fuels. “Syracuse has a long record of supporting responsible environmental stewardship and good corporate citizenship, and we want to continue that record,” said the school’s Chancellor. “Formalizing our commitment to not invest directly in fossil fuels is one more way we do that.”

Earlier this summer, Columbia University made headlines as the first college or university to divest from the for-profit prison industry, following a student campaign. “This action occurs within the larger, ongoing discussion of the issue of mass incarceration that concerns citizens from across the ideological spectrum,” read a University statement. 

But what about private foundation endowments — which Foundation Center estimates to be some $580 billion in total? Rockefeller Brothers Fund (RBF) received a lot of attention last fall with its decision to divest from fossil fuels. Was this decision part of a larger movement among funders?

Evidently not, or at least not yet, as the Center for Effective Philanthropy (CEP), the organization I lead, reported in Investing and Social Impact: Practices of Private Foundations. (The report was released in May and is based on a benchmarking survey of private foundations making at least $10 million in grants annually.) RBF is one of very few larger foundations to divest from fossil fuels, or from anything, for that matter — at least so-far. More than 80 percent of the 60 foundations that responded to this portion of our data collection effort said they screen nothing — not fossil fuel companies, tobacco companies, for-profit prisons, or anything else — out of their endowment investments.

Of the small proportion that do some screening, most exclude tobacco companies. Just three have divested their endowments from fossil fuels.

Time will tell whether the decision of RBF and a few others — and the accompanying publicity — will lead more foundations to reflect and then take this step. Of course, large foundations don’t face the kind of pressures colleges do — sit-ins by students, faculty votes, or pledges from alumni to withhold donations, for example.

Still, given all the discussion about aligning investing decisions and the pursuit of social impact, I was surprised how few foundations have placed any restrictions at all on their investments. I have spoken with some foundation CEOs and board members who make an impassioned argument that to do so would be irresponsible and pointless. Interestingly, though, few seem willing to make this argument against connecting investment decisions to social impact publicly.

On the other end of the spectrum in this debate is Clara Miller, president of the FB Heron Foundation, which invests “all our assets for mission.” Miller, who is quite comfortable making her case publicly, argues that foundations are doing “impact investing” whether they know it or not. “Foundations are investing 100 percent of their assets for impact; they just don’t know whether it’s positive or negative,” she said in this CEP conference session in May. “We have a duty of obedience to mission. And that applies to all of our assets.”

Wherever you come down on this debate, it’s probably fairly easy to agree that it’s an important one. I hope foundation boards will engage it.

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Guest Post: An Emergent Approach to Philanthropic Strategy

Kelly Born Note: As I mentioned earlier, I am taking a few weeks away from the blog to relax and reconnect with the world outside of social change. But I am leaving you in the incredibly capable hands of a rockstar set of guest bloggers. Next up is Kelly Born, program officer at the Hewlett Foundation working on their Madison Initiative, which focuses on reducing today’s politically polarized environment. Kelly also writes for the always thoughtful Hewlett Foundation blog. Here is her guest post…

In March of 2014, the William and Flora Hewlett Foundation launched a new initiative focused on US democracy reform, The Madison Initiative. The overarching goal is to “help create the conditions in which Congress and its members can deliberate, negotiate, and compromise in ways that work for more Americans.”

Our mandate is for a 3-year, exploratory initiative to assess whether and how the Foundation might be able to make a difference here. During this period, we are focused on three central questions:

  1. Are there solutions and approaches that are worth pursuing?
  2. Is there ample grantee capacity to pursue these ideas (or can we help build it)?
  3. Are there funding partners we can work with to make it happen?

In exploring this problem of congressional dysfunction we realized early on that, unfortunately, there don’t appear to be any silver-bullets that will solve this problem – it’s not as if campaign finance reform, nonpartisan redistricting, or increased voter turnout, taken on their own, would resolve our current democratic ails (even setting aside for the moment how hard it would be to actually achieve these changes!).

Regrettably, there is no clear consensus on what to do to improve the system, much less on how to do it. This may be, in part, why Inside Philanthropy awarded The Madison Initiative with 2014’s Big Foundation Bet Most Likely to Fail. Given this, our view has been that current congressional dysfunction is occurring in a system of systems (and sub-systems) that are interacting in complicated ways.

Early on we decided to develop a systems map rather than a theory of change to guide our work (working in close partnership with the Center for Evaluation Innovation and Kumu, collaborations we’ve written a bit about here). Theories of change typically outline desired (social or environmental) outcomes and then map backwards, linearly, to the activities and inputs necessary to achieve those outcomes. Systems maps are perhaps better suited for more complex, uncertain environments like democracy reform, where cause-and-effect relationships can be entangled and mutually reinforcing, rather than unidirectional.

Version 1.0 of our map includes more than 35 variables we believe are contributing to the problem, distributed across three key domains: Congress, Campaigns and Elections, and Citizens. In light of this complexity, rather than making an initial set of big bets on a few key variables, we have instead spread a series of smaller bets within these systems to see where grantees might gain traction, and what this reveals about the system’s more confounding parts.

The benefits of this approach are many – in fact, I cannot imagine effectively tackling this particular problem any other way. But employing this spread betting approach also involves a few challenges for us at Hewlett, and for our partners and grantees. The trade-offs are worth considering:

  • We are acknowledging and respecting complexity, but this can sow seeds of confusion for our partners. Our approach has the essential benefit of taking into account the systemic complexity and interdependency of what we are trying to help change. We are avoiding over-simplifying and thereby misconstruing our reality (a good thing). But we are exploring more than 35 variables (ranging from deteriorating bipartisan relationships to the proliferation of partisan news media), with more than 60 active grantees. This approach can be hard to manage, and harder still to convey to others – especially anyone accustomed to a more linear and readily understandable theory of change.
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  • Our course correcting helps us learn, but has a real impact on partners. As we diversify our investments to learn more about what works, we will continue to learn more about which efforts are having the most impact on congressional dysfunction, and which are less germane to the problem. As we do, we will necessarily converge (and double down) on a few core interventions, while discontinuing others. This will mean disappointing organizations that we respect and had supported at the outset – an inevitable byproduct of this approach, but unpleasant for all involved.
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  • Our evidence-based approach risks coming off as overly academic. We are determined to avoid investing in solutions where there is not solid evidence to support their viability vis-à-vis our goals. This helps us avoid squandering funds on interventions that won’t, ultimately, work. But this approach also runs the risk of coming across as standoffish, academic, and idiosyncratic in the eyes of a practitioner-driven field that in some instances may be pursuing work that is harder to (or has yet to be) substantiated by solid research.

We’ve certainly got our work cut out for us. But we deeply believe that the social sector shouldn’t shy away from complex problems. We also believe that the benefits of this approach far outweigh the costs. It enables broad-based learning, and truly forces us to constantly re-think the grants we are making. Building in these tough choices, rather than forging ahead with a pre-defined strategy, requires that we not just learn, but that we act on what we discover. And fast.

In short, while beset by a few real challenges, we’re convinced that an emergent path is the best path forward. Surely we will place some wrong bets along the way. But, as a favorite colleague of mine often says, “it’s not like we’re selling cigarettes to children.” All of our grantees are doing great work – ultimately it will (not so simply) be a question of which of these lines of work is most likely to improve Congress.

In 2017, we will go back to our Board of Directors to discuss whether and how The Madison Initiative’s work will continue. In the meantime, we would love to hear how other funders have approached emergent problems like this – and how nonprofits might advise that we manage these inherent challenges as we progress?

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Building Demand For Impact Measurement: An Interview with Tris Lumley

Tris LumleyIn today’s Social Velocity interview, I’m talking with Tris Lumley.

Tris is Director of Development for New Philanthropy Capital (NPC), a U.K. think tank and consultancy that works with both nonprofits and funders. Tris focuses on both the demand and supply sides of innovation around social impact. His particular interest is putting impact at the heart of the social sector, including shared measurement, open data and systems thinking. He helped initiate, and now coordinates, the Inspiring Impact program which aims to embed impact measurement across the UK charity sector by 2022. He is also a trustee of the Social Impact Analysts Association, a member of the EU GECES subgroup on impact measurement in social enterprise, and the Leap of Reason Ambassadors Community.

Nell: A big focus of your work at NPC is making impact measurement ubiquitous in the UK’s nonprofit sector. How far is there to go and how does the UK compare to the US in impact measurement being a norm?

Tris: There’s undoubtedly been significant progress over the last decade on impact measurement in the UK, and NPC has been at the heart of that. There are several ways in which that progress is visible, as well as in the sector level surveys NPC has done to track change. For example, most charities say that they have invested more in impact measurement in the last five years, and as a result we see that it is increasingly the norm for charities to have a defined theory of change, a role within the organisation to lead on impact measurement, and to talk about their impact measurement efforts in their public reporting. Most institutional funders also say that they look for evidence of charities’ impact measurement efforts in their funding decisions. Demand for measurement advice is growing, and the impact measurement industry is growing in response – there are more consultants offering services in this area.

The growth of social (or impact) investing has also driven greater interest in impact measurement. The industry as a whole acknowledges the centrality of impact measurement and the need for social returns to be as well evidenced as financial returns. There have been a number of key developments to move the field forward here, from Big Society Capital’s outcomes matrix to the G8 Social Impact Investment Taskforce and European GECES reports and guidance on impact measurement – all of which NPC has helped to deliver.

What’s not as clear is how much progress there’s been on the use of impact measurement, rather than its mere existence. When NPC repeats our field level state of the sector research in 2016, we’ll be asking a number of questions to tease out whether impact measurement activity is leading to use of impact evidence in decision-making – whether it’s becoming embedded in practice.

My concern is that we don’t see the signs that impact measurement is driving learning, improvement, decision-making or wholesale shifts in allocating resources towards higher impact interventions, programmes and organisations. It feels like impact measurement is something that everyone acknowledges we need to do, but few have worked out how to use. With the result that it’s bolted on to the reality of organisations delivering services and raising funding, but not embedded at the core.

A few examples of what I mean: if impact measurement were driving learning, I’d expect to see lots of organisations sharing their insights on success and failure, and learning from each other. I’d expect to see common measurement frameworks which allow organisations to understand their relative performance. These are still very rare. I’d also expect to see investment by funders and investors in the infrastructure that we know is needed for learning – journals, online forums and repositories and practitioner networks. There are some emerging examples of these, like the What Works Centres, but they’re still mostly just getting off the drawing board.

Most importantly I’d expect to see charities adjusting strategies and programmes in response to their learning. Maybe I’m not looking in the right places, but the examples I do see are the exception, not the norm.

When it comes to comparing the UK and US, it’s really hard. We don’t have comparable field-level studies, and we need to work together more closely on these if we want robust insights. For example, if you compare the findings in NPC’s 2012 paper with a recent US study it looks like nonprofits are more likely to say the main purpose of impact measurement is learning and improvement. But actually we don’t know if this is the result of the questions we asked and how we asked them.

In both the US and the UK, it’s clear that the rhetoric on impact measurement has advanced over the last decade. What’s not yet clear is how the reality underlying that has shifted.

Nell: While there are many similarities between the US and UK nonprofit sectors there are some fundamental differences, in particular views about how much government (vs. private charity) should do for public welfare. How does the UK’s view of government’s role help or hurt the capacity building efforts of nonprofits?

Tris: The UK government has taken on a leading role in the social investment space, and it’s here that efforts to build capacity are most visible. Investment readiness programmes have been introduced over the past few years to build general capacity to access social investment. More recently, impact readiness programmes have arrived to do the same for impact measurement capacity. NPC has been working within these programmes to help a number of charities, and cohorts of charities, and it’s clear that they can play a major role in helping the sector to improve. But capacity-building in general has felt the effects of austerity just as much as any other area of government funding. Perhaps more so, as limited funds are increasingly focused on service delivery, not on efforts to improve services.

When NPC repeats its survey of the field, I am certain that we’ll find that limited funding to develop impact measurement capacity is still the major barrier cited by charities. It doesn’t look like anything’s going to change that any time soon.

Nell: NPC works at the nexus between nonprofits and funders, helping the two groups to understand and adopt impact measurement. In the US few funders will fund impact measurement systems, even though they want the data. How does NPC work to convince funders of the need for investments in measurement (among other capacity building investments)? What progress have you seen and what’s necessary for similar progress to happen in the US?

Tris: While a proportion of funders have for a long time supported evaluation, the majority still don’t. We’ve worked through programmes like Inspiring Impact (a sector-level collaborative programme to help embed impact measurement) with a group of funders to develop principles, and help them to embed support for impact measurement in their practice. These efforts can help those who already see the benefit of capacity-building to advance their work, but it’s tough to engage those who aren’t already thinking in this way. I think that the leap we need to make is to selling impact measurement through its benefits, by showing how organisations improve, and their impact increases, as a result. And because impact measurement isn’t yet typically embedded in organisations, those benefits aren’t as evident as they should be.

What does seem to work well is trying to get funders and charities to work together in a specific outcome area to make progress, rather than making a general case for impact measurement. Cohort capacity-building programmes, learning forums and shared measurement initiatives are all part of this. The key thing here is that then the funder is committed to the outcomes everyone’s working towards, and impact measurement becomes a tool for everyone to achieve those outcomes together.

Nell: You are part of the Leap Ambassador Community that recently released the Performance Imperative. Have you seen similar interest groups forming around these issues in the UK? And what role do you think interest groups like these play in a norm shift for the sector?

I have been privileged to be part of this amazing community of leaders, and one of a minority initially from outside the US. I’m convinced we need a similar movement here in the UK, and globally and have been discussing whether and how to approach this with the group from the start. And as co-Chair of Social Value International – a network of those working in the social impact field, I’m part of an effort to do this at the practitioner level too.

The Leap Ambassadors Community brings a human face to what is often seen as a technical subject. After 11 years of working in the social impact field, I am convinced that we cannot sell impact measurement just by increasing the supply of good technical solutions. We need a movement to build the demand for those solutions. We need the right frameworks to measure impact and manage performance. But we need the leaders to demand them, and to harness them to hold themselves accountable, learn and improve, and share what they find.

Photo Credit: NPC

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10 Great Social Innovation Reads: June 2015

social innovationJune was an amazing month in the world of social change.

Most notably, the long fight for marriage equality was won with the Supreme Court’s ruling in Obergefell v. Hodges. It is moments like these where the long, arduous road towards social change makes sense. But that wasn’t all that was going on in the busy month of June. From “new” tech philanthropy, to the orthodoxies of philanthropy, to the oversight of philanthropy, it was all up for debate. Add to that some fascinating new ideas for museums, new data on how Millennials get their news, and a fabulous new blog about the history of philanthropy. It was a whirlwind.

Below are my picks on the 10 best reads in the world of social change in June. But 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.

  1. The biggest news by far in June was the Supreme Court’s 5-4 ruling in Obergefell v. Hodges making gay marriage legal. In the ruling opinion Justice Kennedy writes: “As some of the petitioners in these cases demonstrate, marriage embodies a love that may endure even past death…Their hope is not to be condemned to live in loneliness, excluded from one of civilization’s oldest institutions. They ask for equal dignity in the eyes of the law. The Constitution grants them that right.” While this is a huge win for equality, I think the two really interesting parts of the story are 1) how relatively quickly gay marriage went from banned to law and 2) the various actors that made that social change happen. Some argue that Andrew Sullivan’s 1989 landmark essay in New Republic started the intellectual case for gay marriage. This New York Times interactive map shows how gay marriage went from banned to legalized state by state over time. And Evan Wolfson, founder of Freedom to Marry, describes the decades long struggle of nonprofit reformers and their donors, including the Haas Fund in San Francisco, to make marriage equality happen.
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  3. A new blog, the HistPhil blog, launched in June to much acclaim. There is an enormous need for a historical perspective as we work to make nonprofits and the philanthropy that funds them more effective. HistPhil has already begun to provide that in spades with excellent posts on the Supreme Court ruling, among many other topics you will see below.
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  5. Sean Parker, co-founder of Napster and founding president of Facebook, launched a new foundation and wrote a controversial piece in the Wall Street Journal about his “new” vision for philanthropy.  Some found his ideas full of hubris, while others found him to be “an articulate evangelist for tech philanthropy.
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  7. And if that wasn’t enough philanthropic controversy for you, there were two other debates waging in June. First was the response to David Callahan’s New York Times piece, “Who Will Watch the Charities?” where he argued that we need greater oversight on nonprofits and their funders. Phil Buchanan of the Center for Effective Philanthropy quickly shot back that while Callahan raised some important questions, he ignored the complexity of the sector and reform efforts already under way. And then the two got into an interesting back and forth. Finally, Callahan wrote a follow up piece for Inside Philanthropy. Good stuff!
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  9. Along the same lines, the other point of debate in June centered around a Stanford Social Innovation Review article where Gabriel Kasper & Jess Ausinheiler attempted to challenge the underlying assumptions in philanthropy.  But now that we have a new expert on the history of philanthropy on the block, Benjamin Soskis from the HistPhil blog gave us a more accurate historical perspective about just what is and isn’t philanthropic orthodoxy.
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  11. Michael O’Hare, professor of public policy at UC Berkeley, wrote a great long form piece in the Democracy Journal arguing that museums could become much more relevant and financially sustainable if, among other things, they began selling their stored artwork. Crazy controversial, but fascinating, ideas.
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  13. Writing in the Stanford Social Innovation Review, Matthew Scharpnick cofounder of Elefint Designs, argued that recent ProPublica investigations of the American Red Cross uncovered our double standard for nonprofits. As he writes: “We are asking organizations to meet competing demands—many of which are at odds with how they are funded. We want nonprofits and NGOs to solve problems as effectively as private-sector organizations, and we want them to do it without any of the advantages and with far more constraints.”
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  15. The Ford Foundation announced a sweeping overhaul in their grantmaking strategy. They will now focus solely on financial, gender, racial and other inequalities, and double their unrestricted giving. Larry Kramer, president of the Hewlett Foundation, described how he is closely watching this historic move. And Brad Smith, president of the Foundation Center, offered a view of how philanthropy has approached inequality.
     

  16. The Hewlett Foundation’s Kelly Born provided some interesting thoughts about what a new Pew Research Center report about how Millennials get their news means for civic engagement.
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  18. And finally, on an inspirational note, Steven Pressfield articulated how “artists,” or really anyone hoping to bring something new into the world (a painting, a novel, a solution to a social challenge), should think:  “As artists, [we believe]…that the universe has a gift that it is holding specifically for us (and specifically for us to pass on to others) and that, if we can learn to make ourselves available to it, it will deliver this gift into our hands.” Yes.

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Social Velocity Summer 2015 Guest Bloggers

As I mentioned earlier, it is so important to take time away to rejuvenate and reconnect with your passions, family and friends. So I am taking my own advice and taking some time off later this summer to connect with the world outside of social change.

And so for the second summer in a row I’ve asked a group of social change thought leaders to write guest blog posts in my absence (you can read last summer’s guest blog posts here).

I am so excited about this year’s group of amazing social change thinkers. They are experts in social change finance, philanthropy, political reform, outcomes data, organizational effectiveness and much, much more. They are smart, thoughtful, engaged and visionary leaders. And they are all helping to move social change forward in big ways.

Below is the lineup of guest bloggers with background information on each of them. Their posts will begin in late July. Enjoy!

 

antony bugg-levineAntony Bugg-Levine
Antony is the CEO of Nonprofit Finance Fund (NFF), a national nonprofit and financial intermediary where he oversees more than $340 million of investment capital and works with philanthropic, private sector and government partners to develop and implement innovative approaches to financing social change. NFF also creates the annual State of the Sector Survey. Antony writes and speaks on the evolution of the social sector and the emergence of the global impact investing industry. Prior to leading NFF he was Managing Director at the Rockefeller Foundation. He is the founding board chair of the Global Impact Investing Network and convened the 2007 meeting that coined the phrase “impact investing.” You can read my past interview with Antony here.

UPDATE: Here is Antony’s guest post.

 

Kelly_Born

Kelly Born
Kelly is a program officer at the Hewlett Foundation working on their Madison Initiative, which focuses on reducing today’s politically polarized environment. Before joining Hewlett, Kelly worked as a strategy consultant with the Monitor Institute, a nonprofit consulting firm, where she supported a range of foundations’ strategic planning efforts. In addition to her experience as a strategy consultant, Kelly has worked with various nonprofit and multilateral organizations including Ashoka in Peru, the World Bank’s microfinance group CGAP in Paris, Technoserve in East Africa, and both The Asia Foundation and Rubicon National Social Innovation in the Bay Area. Kelly guest lectures on impact investing at Stanford’s Graduate School of Business and often writes for the always thoughtful Hewlett Foundation blog.

UPDATE: Here is Kelly’s guest post.

 

phil buchananPhil Buchanan
Phil is President of the Center for Effective Philanthropy (CEP), a nonprofit that is the leading provider of data and insight on foundation effectiveness. CEP helps bring the voice of grantees and other stakeholders into the foundation boardroom and encourages foundations to set clear goals, and coherent strategies, be disciplined in implementation, and use relevant performance indicators. Phil writes and speaks extensively about nonprofits and philanthropy and rarely pulls punches when he does.  He is a columnist for The Chronicle of Philanthropy and a frequent blogger for the excellent CEP Blog. He was named to the 2007, 2008 and 2014 “Power and Influence Top 50” list in The Nonprofit Times. You can read my past interview with Phil here.

UPDATE: Here is Phil’s guest post.

 

kathy reichKathy Reich
Kathy is Organizational Effectiveness and Philanthropy Director at the David and Lucile Packard Foundation where she helps grantees around the world improve their strategy, leadership, and impact. Her team makes grants on a broad range of organizational development issues, from business planning to social media strategy to network effectiveness. She also manages the Packard Foundation’s grantmaking to support the philanthropic sector. Prior to joining the Foundation, she worked in a non-profit, on Capitol Hill, and in state and local government in California. Kathy serves on the board of Grantmakers for Effective Organizations and on the advisory committee for the Center for Effective Philanthropy. You can read my past interview with her here.

UPDATE: Here is Kathy’s guest post.

 

david hendersonDavid Henderson
I asked David to be a guest blogger again this summer because he is so insightful and often points out things that few others in the sector are willing to acknowledge. He is Director of Analytics for Family Independence Initiative, a national nonprofit which leverages the power of information to illuminate and accelerate the initiative low-income families take to improve their lives. David is also the former founder of Idealistics, a social sector consulting firm that helped organizations increase outcomes, demonstrate results, and organize information. He writes his own blog, Full Contact Philanthropy, which is amazing. You can read his past guest blog post here and my interview with him here.

UPDATE: Here is David’s guest post.

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