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Roadblocks

Nonprofits Must Leave the Kid’s Table: An Interview with Cindy Gibson

Cindy GibsonIn today’s Social Velocity blog interview, I’m talking with Cindy Gibson. Cindy is a consultant to national foundations and nonprofits providing support to improve capacity and program effectiveness. She is a widely published author and blogger on issues affecting the nonprofit and philanthropic sector. Cindy has been named one of the Nonprofit Times’ Power and Influence Top 50.

You can read past interviews in the Social Innovation Interview Series here.

Nell: Your writing tends to pull back the curtain on some of the “politeness” that goes on in the nonprofit sector and encourages more authentic conversations. Yet the tendency to seek consensus instead of conflict is fundamental to the sector and its long history, so how and where do we start having more productive, challenging conversations as a sector?

Cindy: This question nicely acknowledges the unique role the nonprofit sector can and does play in an increasingly polarized world, but that doesn’t mean the same sector necessarily values consensus over all else, including conflict. Historically, nonprofits have been at the forefront of passionate debates over some of the most difficult and divisive issues we’ve ever faced as a country—civil rights and abortion, for example.

Relatively speaking, though, nonprofits may be less predatory when it comes to how they work and the goals they want to achieve. That’s all good, but it doesn’t mean that nonprofits are or should be immune from criticism or legitimate questions about what they’re doing, how and for what purpose. Unfortunately, I think we’ve become so averse to that kind of open dialogue and critical analysis. As a result, the few people who are brave enough to raise questions are immediately labeled as “negative” or “a naysayer,” which slams the door shut on any hope of deeper discussion.

I think that’s because challenge sometimes is seen as being critical of the good intentions behind doing “God’s work.” But good intentions aren’t mutually exclusive from honesty and critical thinking. Honesty with the intent of finding out where there’s agreement, disagreement, what’s substantive and what’s smoke and mirrors can be transformational. After all, just because we might believe something is “effective,” doesn’t mean that it actually is. The danger in eschewing healthy skepticism is that organizations that aren’t particularly effective but receive a disproportionately high percentage of funding leaves organizations that are getting results with less support.

I can think of at least two examples of organizations – one national and one international – that have instant name recognition and are frequently held up as exemplars. Both have very charismatic leaders and are extremely savvy in marketing themselves and their brand. Both organizations, however, also have been the focus of studies by highly credible evaluators who found little or no data demonstrating their effectiveness. In fact, what data does exist shows that these groups are actually failing to achieve their stated missions. Nevertheless, they continue to receive millions of dollars from the same foundations that tout the virtues of evidence-based philanthropy, and their nonprofit colleagues continue to roll their eyes privately when these organizations are trumpeted as “models.”

Another place where critical thinking (and honesty) is desperately needed is when new organizations that may be replicating what others have been doing for years are hailed as “innovative.” And in fact, without more healthy skepticism, we’ll continue to lag behind other fields when it comes to innovation, which is built on critical thinking and disruption.

I think the first step toward breaking this cycle is to provide more platforms that are intentional about giving where people can express their opinions and ideas without fear of ad hominen attacks that tend to squelch the discussions we need to have. We can loosen up the tightly buttoned format of some of these events and allow for more humor, personality and insouciance. Fewer power points, more spontaneity.

We also need more venues in which to suss out what’s hype and what’s real so that people outside the inner circles of “the newest best thing” can understand what’s being promoted and what they think about it. Take social impact bonds, for example. A lot of what’s written about these is by people who are steeped in finance backgrounds, leaving those who aren’t confused and, in turn, disinterested in finding out more. As a result, there’s little serious debate about whether these are really all they’re cracked up to be, since there’s not much hard evidence, to date, as to whether they work. Yet, millions of dollars have been poured into their creation and rollout.

We also need more investigative journalism about nonprofits and philanthropy—not just in the mainstream but trade press as well. That’s difficult, given that most nonprofit information sources tend to be supported with grant dollars, making it difficult for them to be openly critical or truthful, especially when it comes to funders. But as foundations and nonprofits veer into territory previously relegated to either government or the private sector, there will be more attention focused on the issues that are natural byproducts of these changes: public accountability, mission creep, profit motivation and others. We’re already seeing it in stories about whether foundations have too much power in influencing public policy and whether citizens are being left out of important decisionmaking processes that involve only those with the financial resources to have access to that table. Something we can do right now though is encourage the same news outlets that don’t hesitate to cite “anonymous sources” in other fields to do likewise in reporting about philanthropy, which can be just as retributive against people who go on the record with critical comments.

Nell: One of the most difficult places for open, honest conversation is between nonprofits and the philanthropists who fund them because of an inherent power imbalance. Can we ever hope to overcome that and if so, how?

Cindy: While there is clearly a power imbalance baked into most transactional dynamics—including funding—I think it’s important that we don’t frame the need for more honest conversation as one that’s only about the funder/grantseeker relationship, which can usually be summed up as “funder bad, grantseeker good.”

I’d suggest that nonprofits themselves are reluctant to engage in honest public discussions about their peers.That silence is understandable, but it can be self-defeating—for both nonprofits and grant makers. Nonprofits aren’t given the chance to have thoughtful and open conversations about what’s not working so they could use that information help them strengthen their own activities. And philanthropists don’t have the benefit of getting honest, first-hand perspectives from a broad array of organizations with expertise.

Happily, I think there are larger, cultural currents that may break this logjam. Some of these stem from technology, which is driving more interactivity and transparency and democratizing what were once closed institutions to allow more meaningful participation for “real people.” These changes are also upending traditional hierarchical management structures, which rests on the premise that rank is power, to more collaborative and fluid systems based on ecosystem thinking. Clearly, we’re already seeing these trends disrupting entire fields such as journalism, education, and politics.

Young people in particular, “get it.” Frustrated by traditional institutions, they’re doing an end run around those organizations and creating new models of social innovation and change. They’re becoming social entrepreneurs unencumbered by bureaucracy, launching web-based giving circles where everyone’s a partner, and using social media to generate engagement that goes beyond donations. And they’re demanding more transparency from traditional “closed-door” institutions, including big foundations, which tend to see transparency as putting grant guidelines and allocations on a website. To grantseekers, though, transparency is being as honest as possible about how funders make decisions and on what criteria those are based.

Institutional philanthropy is one of those domains that, admittedly, is still dragging its feet in moving into this new universe. Risk averse by nature, they have hierarchies of power that are hard to shake. That’s why some of the most innovative developments in philanthropy are occurring outside the walls of the big foundations and among smaller entities such as community foundations, a group of which are involving community residents as equal partners in their grantmaking efforts.  That kind of “participatory philanthropy” is also reflected in the rise of giving circles and crowdfunding sites that allow everyone to be a philanthropist.

I’ve had the privilege of working with several foundations who’ve been willing to jump into the abyss and open their doors in ways that previously would be sacrosanct. One national funder, for example, convened all 80 of their grantees in face-to-face discussions with a facilitator (and no foundation staff in the room) to give their unvarnished feedback about the funder’s somewhat unhelpful application process and the way in which they communicated with nonprofits. What made this process distinctive is that, according to a recent study by the Grants Managers Network (Project Streamline), only 9% of foundations have these kind of in-person conversations. Only 50% of funders even want to solicit grantee/seeker feedback, and they usually do so through surveys. But this foundation went even further: It used the “data” from those gatherings to completely revamp not only its application process but the internal funding decisionmaking systems. And it’s checking in with grantees annually.

I also worked with the Case Foundation several years ago to develop one of the first national “open source” funding initiatives that went beyond asking the public to vote on the recipients to involving “real people” in every step of the process — including determining the grantmaking criteria, reviewing all proposal applications, and deciding on the winners. What made this truly transparent was that the experts/funders didn’t decide the final list of potential grantees and then ask the public to vote on them; that, instead, emerged from a bottom-up process that didn’t involve the foundation at all.

This kind of transparency is the bedrock on which new, more democratic forms of philanthropy are being built. And it’s going to require that funders of all kinds be open to exploring new ways to develop stronger partnerships with “real people” on the ground. That will mean going beyond interviewing those people for input that funders then use to make the decisions themselves. Instead, it will require more meaningful involvement of people in communities in decisions about where funds are allocated, why, and how. Asking people to vote on grant-award dollars is one way; another might be recruiting people in communities to help advise foundations in developing their grant criteria, application process, and overall programs. Foundations can also ask the public to engage in their priority-setting when they do their periodic assessments, hold occasional meetings for the public, and bring in practitioners and outsiders to brief foundation staff members on a regular basis.

Admittedly, this kind of participatory philanthropy won’t be easy to embrace for institutions that have historically been shrouded in secrecy. But it could make philanthropy more responsive, authentic, and respectful to the public it purports to serve.

Nell: One of the topics you recently took on was Bill Shore’s (and others’) argument that nonprofits need to have bolder goals. You argued that “wicked problems” require a much more complex and messy approach. To take that point even further, given the ongoing increase in wealth inequality is there a point at which the system is so broken that no intervention by the social sector will really make a difference?

Cindy: I think there may be some assumptions in your question that need more clarification. First, there’s a link made here between burgeoning income inequality and the “system.” Which system, though? Government-subsidized social programs? The political process that determines who receives that support and how much? An economic system that, some argue, will always have built into it a level of income stratification? An educational system in which those with the social and financial capital to access the “best” schools are able to access better jobs? All of these factors contribute to income inequality, which, yes, results in an extremely complex and messy issue. In turn, any attempt to “solve” (you’ll note in our article, we say “resolve” instead) these problems will be fraught with nuanced minefields.

Another interesting thing in your question is the use of the word “intervention” as singular. Wicked problems by their very nature don’t usually respond to one “best practice” or even a set of discrete interventions. As one of my co-authors, Katya Fels Smyth, notes wicked problems don’t come from somewhere; they come from somewheres. And so do the solutions, which means that all sectors and domains need to be involved.

That doesn’t mean the social sector should just give up. We always need to continue to strive toward ensuring equality, equity and opportunity—the cornerstones of our democracy. It’s become increasingly clear, however, that no one sector or set of players can do it alone. So, perhaps rather than ask what the social sector can do, why not ask whether it’s time to start seeing all sectors as equally important in addressing these kinds of thorny issues?

But I’d raise yet another, bigger question: Is there even a need to have such a bright line separating the social sector from others? What, exactly, is the social sector? If, like the government, it shut down tomorrow, what would close? Today, like it or not, what used to be a clear delineation among the various sectors has become more of a membrane, with a lot of overlap and interflow.

I think what’s increasingly needed is a balance between preserving the values and mission of nonprofits while moving toward different ways of working with a more diverse set of players to achieve the common good. That will mean recognizing that the social sector may no longer have a corner on the market of all that’s right and good in the world, nor is it the only domain that can carry out charitable, philanthropic and social change efforts. Now, it’s less about which sector is “doing good” and more about making sure that all sectors, all organizations, and all individuals have the opportunity to affect change in meaningful ways in whatever milieu it occurs.

But that doesn’t mean the social sector should just disappear or morph into some kind of fuzzy hybrid. It suggests that the sector needs to step up now and ensure that cross-collaborative, horizontal approaches to “doing good” include the lessons nonprofits have learned about the kinds of skills, strategies and leadership are required to do that effectively and successfully—no matter who’s doing it or in what sector.

That means the social sector needs to move from the kid’s table to one where organizations from all sectors meet as equal partners, all with something important to add to the mix.

And the social sector has a lot to offer. Because of their experience in tackling wicked problems like poverty, violence and discrimination, nonprofits understand that the most successful of these efforts requires cooperation, rather than competition; collaboration, rather than individual effort; and long-term commitment over fast results. Those are the traits that research has shown will be essential to the 21st century.

The key will be figuring out how to parse out the best of what the nonprofit sector epitomizes and balance that with an array of competing approaches to achieve a more balanced and fluid approach.

Photo Credit: Cindy Gibson

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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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3 Questions to Get Your Nonprofit Board Engaged

Today for something a little different, I’ve taken to YouTube for my blog post. My hope is that as the Social Velocity YouTube channel becomes a library of videos on various nonprofit topics and challenges, you can use the videos to spark discussion among your board, staff and donors.

So today’s topic is about getting your board unstuck and moving forward for you. The transcript of the video is also below.

If you want to learn more about getting your board engaged, download the 10 Traits of a Groundbreaking Board book, or the Getting Your Board to Raise Money On-Demand Webinar.

 

I know how hard nonprofit leaders struggle to get their board of directors active, engaged, involved, motivated, moving forward with their nonprofit organization. So today I want to give you three questions that can get your board engaged and invested in the work of your organization.

Before I start, though, I want to say that you get a board motivated and engaged by splitting it into its parts. You cannot get a board engaged and invested by talking to the board as a whole. So I encourage every nonprofit leader to set aside a time every year to meet one-on-one with each individual board member. And in those one-on-one conversations I encourage you to ask 3 questions of those board members that can really get them engaged and motivated.

The first question to ask them is, “What about our nonprofit’s mission and work really motivates you?” This helps you tap into each individual board member’s passion, what brought them to the board in the first place, why they are volunteering their time, and really helps them think again, remember, and be thoughtful about why they are engaged with the nonprofit and what they want to see the nonprofit to accomplish.

The second question to ask each individual board member, one-on-one, is, “What specific assets do you bring to the table as a board member?” This gets the board member and you to start a conversation about what unique skills, experience, or networks that individual board member brings to the table. So then you can start to think about, well how can we tap into this person’s unique assets?

The third question you want to ask each individual board member is, “What do you want to accomplish as a board member this year?” This puts the burden on that individual board member to be thoughtful about what they want their contribution to be as a board member. So they might start thinking about wanting to be involved in an upcoming strategic planning process, they may have some ideas about how to better market the organization, they might be thoughtful about some key decision makers that they could open doors to. There’s a whole host of things that it might start to get them thinking about how they can be specifically involved in the organization.

So, again, I think the key to engaging a board of directors is to start working with them one-on-one and asking them some really thoughtful questions that result in a really meaningful conversation that can really engage your board. Good luck!

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A Slideshare to Calculate the Cost of Fundraising

I’ve been thinking about using Slideshare, the social media network for presentations and infographics, a lot lately. It’s an amazing site with tremendous content. I wanted to start sharing some of my presentations there.

So today, here is my first SlideShare offering, “Calculating the Cost of Fundraising.” These slides are excerpted from my Calculating the Cost of Fundraising on-demand webinar.

The concept is simple. If you want your nonprofit to achieve financial sustainability you need to analyze the return on investment of your money raising activities. With that analysis you can make smarter decisions about where you should focus your limited resources for greater financial success.

These slides and the more detailed webinar give you some quick and easy tools to use to determine the return on investment of all of your fundraising activities. The webinar then helps you compare the results of your calculations and gives you tips for deciding what to do with that information. And most importantly how to convince others on your board and staff when you have to move away from some money-losing activities (always a tricky political maneuver).

You can view the presentation below (or click here). And if you are intrigued by what you see and want to learn more, download the Calculating the Cost of Fundraising On Demand webinar here.

Calculating the Cost of Fundraising from Nell Edgington

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The Fundamental Flaws in How We Finance the Nonprofit Sector

NFF SurveyToday the Nonprofit Finance Fund (NFF) released the results of their sixth annual State of the Nonprofit Sector survey and the data underlines a growing crisis in the financial sustainability of our nonprofit sector.

56% of nonprofit leader respondents reported that they were unable to meet demand for their services in 2013, this is the highest rate since the survey’s inception six years ago. And the scary part is that this inability to meet demand is not because of a temporary down period in the economy, but rather because of deeper dysfunctions in how we funnel money to the sector. As Antony Bugg-Levine, CEO of NFF put it, “The struggles nonprofits face are not the short-term result of an economic cycle, they are the results of fundamental flaws in the way we finance social good.”

The survey gathered responses from more than 5,000 leaders from U.S. nonprofits of all sizes, domain areas, and geographies.

The top challenge by far for nonprofit leaders, with 41% of them reporting it, is “achieving long-term financial stability.” And this is evidenced in several ways:

  • More than half of nonprofits (55%) have 3 months or less cash-on-hand.
  • 28% ended their 2013 fiscal year with a deficit.
  • Only 9% can have an open dialogue with funders about developing reserves for operating

These struggles with financial sustainability stem in large part from a lack of understanding among funders of the true costs of social change work. Roughly 53% of nonprofit respondents’ funders rarely or never fund the full costs of the programs they support. And for approximately 24% of respondents their government indirect cost rate (the amount government allows for indirect, or “overhead” expenses) declined over the last 5 years, while about 47% of respondents are subject to a government indirect rate of 9% or less. That is nearly impossible.

For the first time, the survey included questions about impact measurement, a growing interest among funders, ratings agencies and others in the sector. But these questions just further underline the financial Catch-22 in which nonprofit leaders find themselves. 70% of nonprofit leaders report that half to all of their funders want to see proof of the impact of their programs, but 71% of nonprofit leaders also report that funders rarely or never fund the costs of impact measurement.

At the end of the day, government and private funders are putting greater demands on nonprofits whose services are increasingly needed, all while funding is becoming more difficult to secure. It’s a vicious downward spiral.

More than ever this survey demonstrates a need for the nonprofit sector and those who fund it to take a hard look at how the social sector is financed. We are not sustainably financing the social change work we so desperately need. And if we don’t address that, the downward spiral will simply continue.

Here are some fundamental changes to the financing of the nonprofit sector that I’d like to see:

  • Government must move to a more reasonable indirect rate. No one can deliver an effective program with only 9% allocated to administration and other “overhead” costs.
  • Funders who want to see impact measures need to step up and fund the work and systems necessary to make it happen.
  • Nonprofit leaders and funders need to have more open and honest conversations about the hurdles standing in the way of the work.
  • Nonprofit leaders need help figuring out sustainable financial models.

In the six years of NFF’s comprehensive and unparalleled view into the world of nonprofit leaders the story is not getting better. Let’s hope this data serves as a wake up call for the social sector. We must collectively realize that if we really want social change we have to figure out how to finance it effectively and sustainably.

 

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How You Can Learn to Stop Worrying and Love Your Board

Dr._Strangelove“Honestly, some days I think I would be so much better off without a board,” said an exasperated executive director to me recently.

Wrangling a group of volunteers who have competing and often conflicting interests is an exhausting job. It’s no wonder that nonprofit leaders often want to throw up their hands and soldier on without the rag tag group that’s supposed to further, as opposed to impede, the work.

But it doesn’t have to be that way. An “engaged board” is not an oxymoron. It is actually attainable. But you don’t get there by cajoling, guilting, ignoring or dismissing your board.

You get there by marshaling this critical army to grow your resources, your community of supporters, your results. Because an engaged board raises more money, recruits and trains other engaged board members, connects your nonprofit to key people and organizations necessary to achieve the mission, puts your nonprofit above their self interest, and ultimately leads your organization to greater results and impact.

There are very clear steps you can take to build an engaged board:

  • Create a clear idea of the specific skills, experience and networks board members should possess
  • Continually focus the board on the big picture
  • Get them ALL to raise enough money
  • Help them embrace money as an effective tool
  • Make them understand and be able to articulate the impact of your nonprofit
  • Create a commitment among them to build the organization
  • Encourage them to ask hard questions
  • And more…

You can help them become the board of directors they were meant to be.

An engaged board understands and fully embraces their charge. They have extremely high standards, and they hold themselves, their fellow board members and their nonprofit to those standards. They are constantly pushing, striving, and building the nonprofit to whom they are devoting their service. An engaged board may be an anomaly, but it doesn’t have to be.

Nonprofit BoardIf you want to build an engaged board, the Build an Engaged Board Tool Bundle can help you get there. The Bundle includes:

  • The “Getting Your Board to Raise More Money” Webinar
  • The “10 Traits of a Groundbreaking Board” E-book
  • The “How to Create a Groundbreaking Board” Webinar

Here’s what some people who have already downloaded the board tools had to say about them:

“This was very concrete and actionable – gave specific suggestions regarding engaging board members. This was very useful. Well done.”

“This really opened my eyes to new possibilities – thank you so much!”

“This was one of the best and most helpful and informative webinars I’ve been on. It was exactly what I was looking for in terms of beginning to get our board energized and on track and I will use the slides to help me prepare for our upcoming board retreat.”

An ineffective board is not just a frustration for the executive director. Sadly it is a HUGE missed opportunity. Your board could be so much more. When you effectively engage your board of directors, you grow your resources and ability to create social change exponentially.

You can download the Build an Engaged Board Tool Bundle here.

Photo Credit: Dr. Strangelove

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Leave Your Charity at the Door

charityI hate the word “charity.” Don’t get me wrong, I’m not big on semantics. But “charity” is more than a word, it’s a destructive mindset that keeps the work of social change sidelined and impoverished.

“Charity” harkens back to the beginnings of philanthropy, which was largely the purview of women and as such was viewed as tangential to and less valuable than the more important “business” of the male-dominated world.

As social problems mount, we must shift from the “charity” of our predecessors to an understanding of social change as part of everything we do.

And here’s why:

Charity Lives Beside the Economy, Social Change is Baked into the Economy
While charity was just an afterthought of the real work of the world, social change is rapidly becoming an integral part of the economy. The number of nonprofits grew 50 times faster than for-profits in the last 10 years and nonprofit revenues grew at double the rate of GDP growth in the same period. And its not just the size and resources of nonprofits that contribute to an emerging social change economy, the Millennial generation actually thinks about social change as part of every aspect of, not separate from, their work and life. The work of social change is ubiquitous.

Charity Addresses Symptoms, Social Change Addresses Systems
Charity is about remedying the immediate and direct symptoms of a larger problem. It is about feeding the poor, sheltering the homeless, clothing the naked. But as very real structural challenges grow (like the widening income gap) we can no longer just stick a finger in the dike. We must come up with approaches that solve the underlying issues causing those problems.

Charity Requires Spare Pennies, Social Change Requires Significant Investment
Charity existed on the largesse of the profiteers of the last centuries. Once they made their millions, they sloughed off a portion of the excess to the charities who cleaned up the messes they made. But you can’t do much with the dregs. Because social change is about changing larger systems it takes real, significant investment of resources.

Charity Employs Volunteers, Social Change Employs Experts
Charity was always the purview of the wives who didn’t work. As volunteers they devoted their time to helping the needy. But as our social problems become increasingly complex and entrenched, we must employ experts – not volunteers – who through education, knowledge and experience know exactly how to approach the problem and how to solve it. And we must pay them what it takes to keep them working on those solutions.

Charity Apologizes, Social Change Demands
When you are voluntarily acting on behalf of a charity and asking others also to act voluntarily on behalf of the charity, you are often apologizing for the interruption to their “real work.” But social change is very necessary work, and social changemakers must demand the investment, mindshare, time and effort required. There is absolutely no space for apology.

Sometimes words and the baggage of the past really matter. When we stop thinking of the work of social change as “charity” we start demanding and creating real investment, real attention, and real change.

Photo Credit: Library of Congress

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The Benefits of a Stronger Nonprofit Organization

helpI’ve written before about how hard it sometimes is for nonprofit leaders to ask for help. Donors, board members, regulators, and others put enormous pressure on nonprofit leaders to do it all with little (if any) help.

So in an effort to help nonprofit leaders convince those around them about the benefits of getting help, I’ve developed five benefit sheets describing the advantages of building a stronger nonprofit organization.

Whether or not you are interested in working with me, these benefit sheets describe the return on investing in nonprofit organization building efforts like leadership coaching, strategic planning, board engagement. Obviously I feel very strongly that nonprofits need to build stronger, more effective organizations, but that’s often a difficult case for nonprofit leaders to make.

I hope these benefit sheets can help you make that case:

Nonprofit Leader Coaching

Nonprofit Staff Coaching One-SheetNonprofit leaders have a Herculean list of tasks, and all of it  with little support along the way. It is easy to see why the position of nonprofit leader is such a lonely one.

But it doesn’t have to be that way. A leadership coach becomes your strategic partner helping you analyze your challenges and concerns, think through staffing decisions, overcome fundraising hurdles, address board management struggles, and brainstorm new approaches. Coaching provides tremendous benefits including: increased board and donor engagement, more productive staff, greater financial sustainability, and clearer strategic thinking. Download the Nonprofit Leader Coaching benefit sheet.

 

 

Strategic Planning

SV-strategic-planIn an increasingly competitive, resource-strapped world, great nonprofit strategy is less a luxury and increasingly a necessity. Without an overall strategy, a nonprofit is relegated to the world of “doing good work,” instead of the world of “making a real difference.” And these days more and more funders, supporters, advocates, partners and decision makers are requiring that nonprofits do more than just good work.

Smart nonprofit strategy can completely transform your nonprofit. It can create momentum, attract deeper funding, filter future decisions, become a management tool, and ultimately realize more social change. Download the Strategic Planning benefit sheet.

 

 

Board Engagement

SV-board-engagementIt can often seem impossible to get your board’s attention, let alone get them all pointing in the same, effective direction. But if managed strategically, your board can be an unstoppable army moving your nonprofit forward.

If you take a big step back and develop a groundbreaking board, you can dramatically increase your ability to: reach new audiences, grow your programs, forge new external partnerships, raise more money, increase exposure to key decision makers, build community investment and engagement. Download the Board Engagement benefit sheet.

 

 

Financial Model Assessment

SV-financial-assessIt happens all the time. A nonprofit leader wants to expand her services to meet growing demand, or is frustrated with a stalled fundraising effort, or doesn’t know where to diversify her fundraising efforts. She wants to raise more money, but doesn’t know how.

A Financial Model Assessment can be game changing. It uncovers how all aspects of your organization contribute to or detract from money flowing through your doors, including strategy, mission & vision, leadership, program delivery & impact, marketing and partnerships. It can give your nonprofit a deep understanding of where you need to focus your efforts and a clear road map for growing your financial sustainability. Download the Financial Model Assessment benefit sheet.
 

 

Financing Plan

SV-financing-planUnlike a traditional fundraising plan, a financing plan is an integrated, thoughtful, and strategic way to help your nonprofit raise enough money to achieve your programmatic and organizational goals. Instead of asking the question: “How much can we accomplish with what we can raise?” you start asking the question: “How much should we raise to accomplish our goals?”

A financing plan galvanizes board and staff to bring enough of the right kinds of money in the door to make your nonprofit’s goals a reality. It creates a sustainable financial model for your nonprofit so that you can survive and thrive. Download the Financing Plan benefit sheet.

 

 

If you are trying to make the case for a stronger nonprofit organization download these benefits sheets and share them with your board, donors, staff. And if you would like to talk about these organization building processes in more detail, let me know.

Photo Credit: Johnathan Nightingale

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