There was a really interesting interview last week in the Nonprofit Quarterly with Bill Ryan, author of Governance as Leadership, who recently led a study on coaching in the nonprofit sector. Coaching is a form of management consulting where a leader is given one-on-one strategic guidance.
An executive director can be coached to grow an organization, to build a stronger board, to revamp their financial model. Or as Ryan puts it, coaching answers the question: “If my organization wants to get to Point X, what do I, as a leader, need to do to build on my strengths and manage my weaknesses to help it get there?”
The concept of coaching is fascinating to me because, as Ryan points out, in corporate America coaching is much more commonplace than in the nonprofit world. If a CEO needs management counsel, they are encouraged to find a coach, whereas coaching for nonprofit leaders is often deemed a luxury. But, I think coaching is even more necessary in the nonprofit world. Nonprofit leaders, unlike their for-profit counterparts, often lack a management background having made their way to the top through program expertise.
The reality is that coaching for a nonprofit executive director can be absolutely transformative. It can make the difference between a program that is just getting by and a program that becomes financially sustainable and grows dramatically, with an engaged, committed board behind it.
Such is the case with ACE: A Community for Education, a nonprofit early childhood tutoring program. I have coached ACE Executive Director, Mary Ellen Isaacs for over a year since we completed an ambitious strategic planning process. They are now working to triple the number of students they serve and diversify and grow their financial model.
Here’s what Mary Ellen has to say about the coaching experience (or if you are reading this in an email click here to watch):
I believe coaching can be hugely transformative for nonprofit organizations, helping their leaders build the skills they need to grow their solutions far and wide. If you’d like to learn more about how I coach nonprofit leaders, check out the Coaching page of the website.
Photo Credit: wikimedia
There is something pretty interesting going on in Illinois around nonprofit overhead costs. I have written many times (here and here for example) about how the distinction between “overhead” and “program” costs in the nonprofit sector is meaningless at best, and destructive at worst.
I’m really excited to see that the Donors Forum in Illinois is starting to host real conversations between nonprofits and philanthropists about the Real Costs (including administrative costs) necessary to create effective social change.
With the help of the Bridgespan Group, in March the Donors Forum brought nonprofits and philanthropists together for a one-day discussion about real costs in the nonprofit sector. They want funders to understand that it is not enough to fund only nonprofit programs. In order to create effective social change, nonprofits must also be able to fund the infrastructure, staffing, space, tools, and research costs of their work.
The image above is a graphic facilitation of the March session. The Donors Forum has also developed a great website with resources for nonprofits and philanthropists about real costs, including Ann Goggins Gregory and Don Howard’s seminal article in the 2009 Stanford Social Innovation Review “The Nonprofit Starvation Cycle,” reports and resources about nonprofit fiscal fitness, Grantmakers for Effective Organization’s study on how philanthropy is changing, and much more.
As part of their efforts, the Donors Forum has also put together this video that helps to explain, in very clear terms, the critical importance of funding ALL of a nonprofit’s costs:
I’m excited to see where this conversation goes and whether more nonprofits and philanthropists start having open, honest conversations about what it really takes to create lasting social change. I’m hoping to interview Valerie Lies, President and CEO of the Donors Forum, later this year about this initiative and where they hope to go from here. So stay tuned.
April was all data, all the time. From big data, to performance data, to how donors use data to improve programs, to whether donors even care about data. It’s enough to make your head spin. But many people were cautioning to keep the end goal in mind. Data is only data, its ultimate use is to create social change.
Below are my 10 favorite social innovation reads in April. But let me know in the comments what I missed. And if you want to see my expanded list, follow me on Twitter, Facebook, LinkedIn, or my newest addition, Google+.
You can see the 10 Great Reads lists from past months here.
- Writing on the Full Contact Philanthropy blog, David Henderson argues that we must understand the limitations of data, as he says “Decisions we make should be informed by data, but data does not make decisions for us.”
- Daryn McKeever from the Gates Foundation seems to agree arguing that we need to move from Big Data to Big Wisdom, using data to make better decisions. And David Brooks writing in the New York Times seems to fall into the same camp.
- The Stanford Social Innovation Review is celebrating their 10 year anniversary and as part of the festivities are running a series of essays about how social innovation has evolved and where it’s going. Part of that series is Tim Ogden’s controversial (I think) post claiming that contrary to growing belief donors don’t care about impact any more than they ever did.
- As a counterpoint, the recent NextGen study from the Johnson Center on Philanthropy found some pretty significant changes in how the newest donors, Millennials, do philanthropy. Michael Moody and Sharna Goldseker, authors of the report, break down how they think donors are changing.
- And adding to the conversation about whether donors care about outcomes, a debate raged between William Schambra from the Hudson Institute and Ken Berger from Charity Navigator. William argues that moving the nonprofit sector to outcomes measurement would lose other, more important and less tangible benefits (civic engagement, social bonds) that the sector promotes. But Ken argues that measuring outcomes is absolutely critical to helping the nonprofit sector create more change.
- During April’s annual Skoll World Forum a new Social Progress Index launched, a measure for comparing different countries abilities’ to “provide for the social and environmental needs of their citizens.” The hope is that the index will help guide social investment decisions. It will be interesting to watch how it evolves.
- For a really interesting case study on use of data, The National Center for Arts Research interviews Kate Levin, Commissioner of the New York City Department of Cultural Affairs about how they use data to make the case for investments in culture.
- I have been fascinated to watch New Orleans’ renaissance via social innovation in the years following Katrina. Two recent articles (here and here) highlight exactly how the city is coming back and the role social innovation is playing in that comeback.
- Albert Ruesga, Chair of Grantmakers for Effective Organizations and editor of the White Courtesy Telephone blog, writes a fairly scathing (but in a nice way) post about how philanthropists need to start having more difficult, honest conversations in order to move the sector forward. His post was in response to Caroline Preston’s February Chronicle of Philanthropy article in a similar vein and the impetus for a panel discussion in DC along the same lines. They promise to keep this conversation going. Let’s hope, because we need more cruelty, or at least honesty, in the sector.
- As I said last month, crowdfunding is apparently the next new shiny thing. And April continued the drumbeat with many more articles, the most interesting of which was Dowser’s list of 10 New Platforms for Crowdfunding.
Photo Credit: o5com
One of the biggest woes of a nonprofit leader, aside from the endless fundraising circuit, is an ineffective board, particularly when it comes to fundraising. But you cannot just recruit a bunch of warm bodies to your board and then assume that they will magically bring money in the door. If you want your board to effectively contribute to the financial engine, you have to start from the beginning. And that is to recruit a money raising board, which is the topic of today’s installment in the ongoing Financing Not Fundraising blog series.
In order to assemble an army of volunteer money raisers, advocates, ambassadors for your nonprofit you have to get strategic. You must move away from scarcity-based board recruitment where you beg people to fill vacant holes on your board, and instead create a recruitment strategy that identifies the right people with the right skills, experience and networks who will become your partners in bringing more money in the door.
And that strategy looks like this:
- Connect Your Strategic Plan to Your Board
Start by taking a look at your long-term strategic plan and ask the simple question, “What skills, experience or networks do we need on our board to make each goal of our strategic plan a reality?” And don’t think in broad terms like “fundraising,” or “marketing.” Rather think very specifically about target audiences you want to access, new networks of people you want to find, specific skills that your strategic plan requires. A childhood literacy nonprofit probably needs board members who have key connections to local school districts, possess education-related expertise, or can talk intelligently about smart program design.
- Recruit for Specific Needs
Once you’ve identified what skills, experience, and networks your board must possess, test that list against what your current board has in order to find holes. Those holes become the very specific types of people you want to recruit. If a strategic goal is to expand your program beyond your current region, but no one on your board lives or has connections outside your region, that’s a hole. Start brainstorming who might fill that hole and how to gain access to them (for some help check out LinkedIn’s cool tool).
- Find Each Member a Job
You don’t get people to help bring money in the door by asking them to just bring money in the door. You first must get them excited about what the organization is doing (the overall strategy) and then highlight their unique contribution to making that happen. Be very clear with each individual board member about what they bring to the table and how you would like to tap into those specific skills, experience, and networks to drive your strategy forward. People become invested in something when they believe they are making a real and specific difference. Help each board member figure out exactly how to do that.
- Tie Everything to Your Financial Engine
Once you’ve figured out each individual board member’s job, brainstorm how that ties to money. To create a sustainable financial engine for your nonprofit, money has to be part of every conversation. If, for example, you’ve determined that a particular board member’s legal expertise is critical to your nonprofit’s ability to launch a new program in the coming year then also work with them to figure out how that new program will become financially sustainable. Perhaps there is an earned income component to the new program that they could help you to develop. There are many ways board members can contribute to the financial bottom line, so think outside the fundraising box and get strategic about how each individual board member can contribute, not only strategically, but financially (here are 9 ideas to get you started).
- Inspire Momentum
If you assemble a group of people who contribute very specific skills, experience and networks to the organization’s overall strategy, and if you effectively work with them one-on-one to nurture the assets they bring, you will soon see momentum build. Each board member understands their unique role, is excited about how it fits into the bigger picture, and have connected that role to the financial engine of the organization. Once you start to see successes with individual board members, share that with the whole board. Let them see what individual members are doing and how it moves the organization forward. They will be inspired to embrace their own unique role.
Many nonprofit leaders start from the wrong place of cajoling, demanding, begging (or simply giving up on the idea of) board members and fundraising. If instead you start from the position of getting each individual board member to find their unique role to play, the money will follow.
If you want to learn more about getting your board to bring more money in the door, register for this month’s “Getting Your Board to Raise Money” webinar.
Photo Credit: State Library of Queensland
A big topic of conversation lately has been whether donors really care about impact, or whether they simply just give based on less scientific things like their emotions, or their friends recommendations. Which is why I’m excited to announce that I’ll be participating in a Google Hangout April 30th about using data to attract donors.
Writing in the Stanford Social Innovation Review, Tim Ogden claims that donors have never really been interested in impact. And Ken Berger from Charity Navigator and William Schambra of the Hudson Institute debate (here and here) whether moving the nonprofit sector toward performance management helps or hurts social change efforts.
To add to this conversation, David Henderson and I are hosting a Google Hangout, “How to Use Real Performance Data to Raise More Money,” on Tuesday, April 30th at 2pm Eastern. David is a super smart guy who runs Idealistics, a consultancy that helps nonprofits learn from their outcomes data, increase impact, and demonstrate results to funders and stakeholders. David’s professional focus is on improving the way social sector organizations use information to implement higher impact poverty interventions. He has been quoted in the Chronicle of Philanthropy and has written for Change.org and the Huffington Post. You can read my interview with him from a year and a half ago here.
David and I thought it would be interesting to host a conversation with nonprofit leaders about how nonprofits can use real performance data to raise more money. We’ll kick off the hour-long conversation with a couple of points and a case study or two of nonprofits that are using data to raise more money, but then we’ll open it up to you for questions. You can send us your questions ahead of time (via email to firstname.lastname@example.org or email@example.com) or simply post them to the Google Hangout here as you watch.
I hope you’ll join us!
How to Use Real Performance Data to Raise More Money
A Google Hangout with David Henderson and Nell Edgington
Tuesday, April 30th, 2013
Can nonprofits that use real performance data to raise more money? Are donor increasingly interested in impact data? How can nonprofits communicate their program data to donors? And how should nonprofits respond to questionable performance claims by other organizations? Join David Henderson from Idealistics and Nell Edgington from Social Velocity in a Google Hangout on Tuesday, April 30th at 2pm Eastern to discuss these and many more questions about how nonprofits can use real data to raise more money. We’d love to have you participate in the discussion, so send your questions ahead of time to Nell or David, or leave a comment at the Google Hangout here.
Photo Credit: 401(K) 2013
Perhaps it had something to do with the SXSW Interactive conference last month, but March was all about using technology in interesting ways to further social change. From crowdfunding, to a new giving graph, to credit card donations to the homeless, to engaging people in the arts and beyond, people are experimenting with technology for social change in really exciting ways.
Below are my 10 favorite social innovation reads in March. But let me know in the comments what I missed. And if you want to see my expanded list, follow me on Twitter, Facebook, LinkedIn, Pinterest or ScoopIt.
You can see the 10 Great Reads lists from past months here.
- Crowdfunding is quickly becoming the hot new thing in the social change world. It remains to be seen if it is a game changer, but in the meantime take a look at some examples of how its being used here, here, and here. And while we’re talking about innovative use of technology to fundraise, Lucy Bernholz dissects some new efforts to donate to the homeless via a credit card.
- Writing on the ArtsFwd blog, Anna Prushinskaya describes how some innovative arts organizations have used social media to effectively engage audiences in new ways.
- I’m really excited about a new technology the Case Foundation is developing that will map your online search preferences to giving suggestions just like Google, Facebook and others currently use your search preferences to suggest products and services. (I’ll be interviewing the mastermind behind this, Will Grana, on the blog this summer).
- I love to see nonprofits using new media (like video and infographics) to tell their story. Beth Kanter offers some easy tips for creating infographics. And speaking of cool infographics, check out this one on why slacktivists are more active than you think.
- It seems “scale,” the social innovation buzzword of a few years back, is being redefined. Kathleen Enright, CEO of Grantmakers for Effective Organizations, describes a new report that expands the idea of scale and offers ways grantmakers can support it. And Ben Mangan, CEO of nonprofit EARN, spurs nonprofits and funders to move past “stifling incrementalism” and start working towards real scale.
- Dan Pallotta ruffled some feathers, as is his way, with his TED Talk this month The Way We Think About Charity is Dead Wrong, and there were several responses. But I thought the most thought-provoking was from a group of professors from Boston who suggest that Pallotta’s argument that nonprofit salaries are too low only reinforces the wealth inequality of the American economy.
- And on a related note, Dione Alexander, writing on the Mission and Money blog, explains increasing wealth inequality as a kind of bullying, noting “The social contract through which we assume shared responsibility for the community is broken.”
- And since we are on the topic, this video about wealth inequality in America blew my mind. If you want a quick and dirty view of where America’s money goes, take a look.
- As part of the ten year anniversary of the Stanford Social Innovation Review, Matthew Forti looks back at the past ten years of measuring nonprofit outcomes, the good, bad and the ugly.
- Writing in the Duke Chronicle, Trinity senior Elena Botella argues that deciding when a public service should be privatized should be based on evidence, as she says “Humans respond to a profit motive, but we also respond to altruism, community values, prestige and pride in our work.”
Photo Credit: mendhak
In this month’s Social Velocity blog interview, I’m talking with Wendy Harman. Wendy is the Director of Social Strategy at the American Red Cross. Her goal is for the Red Cross to be a social organization ready for 21st century humanitarian work. She is responsible for their national social media presence, including the listening program, social content and community engagement.
You can read past interviews in our Social Innovation Interview Series here.
Nell: The Red Cross has fully embraced social media. How specifically has it helped you get closer to achieving your mission?
Wendy: Our social engagement philosophy centers around using social tools to execute our mission. That is, moving beyond using social engagement for communications and marketing purposes and onto using these tools and our increased ability to network horizontally with huge communities for service delivery. The Red Cross has five main service areas: disaster services; international services; serviced to the Armed Forces; preparedness health and safety; and biomedical services (blood). We have probably made the most headway in operationalizing during disasters. For example, we’ve created the Digital Operations Center (funded by Dell) in order to holistically see and synthesize social conversations from disaster-affected areas. So far, we’ve found three main purposes for the center:
- We use the center to provide real-time and anticipatory situational awareness. This means we can provide all decision makers in the Red Cross disaster services, as well as many of our partners outside the organization, with real-time trends from the affected areas. We can identify gaps in service, the biggest needs, the most talked-about subjects as they relate to the disaster, and more. This helps us know what’s happening on the ground in the moment and also can help our experts anticipate service delivery that will be needed in the coming days or weeks.
- We use it to route needs. When we see an individual tweet that says, “I need a peanut butter and jelly sandwich. I haven’t eaten in days because of this hurricane,” we can route this information to our teams on the ground who are organizing our mobile feeding efforts.
- We provide individualized information. We have built a digital volunteer role and now have trained volunteers who can “deploy” in place and help to get information, resources, shelter locations, mobile feeding locations, real time tips, and a bit of confidence and support to people who need it. For example, during tornado warnings we often see a big increase in tweets from people hunkered down in their basements or bathtubs—and they are scared. The Red Cross has a lot of expertise on exactly what to do when you find yourself in this situation, and we’re able to provide those tips in the exact moment people need them. In addition, a big part of our mission is to provide hope and comfort in people’s worst moments, so we’re also encouraging the digital volunteers to offer that hope and comfort via digital “hugs,” or words of support.
Nell: How do you manage the ever-changing and ever-expanding social media environment? How do you determine where to spend your time and when to change your approach?
Wendy: The age of the social web has affected the role of the nonprofit sector in general and the role of the Red Cross, particularly during disasters. We are expanding from an organization that executes discrete relief activities with trained experts and volunteers, to an organization that acts as a platform to connect and mobilize people affected by disasters. We are tool agnostic; the foundation of our social engagement program centers around listening to, engaging with and acting on social conversations. This way we stay nimble in our content, and we can adapt quickly with the public.
Nell: The Red Cross is a huge nonprofit and has more resources to put behind social media. How do you suggest small nonprofits logistically work social media into their marketing mix?
Wendy: Huge doesn’t necessarily translate to big budgets for social engagement. We are lucky to have three staff members dedicated to social engagement, but we’re really trying to work our way out of our jobs. In other words, rather than having the three of us triaging thousands of conversations per day, we’d like to see social engagement become part of every Red Crossers’ workday. My more concrete advice is to do what you can do well—you don’t have to be everywhere, you just have to really be in the places where you say you will be.
Nell: In some ways your role at the Red Cross is to help an aging institution embrace change and the new realities of the world we live in. Why do you think the Red Cross has been open to change when other large and seasoned nonprofits have not?
Wendy: I think innovation and adaptation has always been baked into the DNA of the Red Cross. One of my favorite Clara Barton quotes is, “I have an almost complete disregard of precedent, and a faith in the possibility of something better. It irritates me to be told how things have always been done. I defy the tyranny of precedent. I go for anything new that might improve the past.” No doubt we have built up institutional walls over the years, but at the same time, we have broad recognition of the value of partnerships and collaboration, and we’re working to be sure we make openings in those walls so everyone can participate in the Red Cross network and our humanitarian mission. We’re also getting quicker at adopting new technologies, but I think the openness in our organizational culture to strive to be better is more of a key indicator about our relevancy than our adoption to a particular technology.
Nell: Some nonprofits will embrace social media if they think there is a fundraising payoff, but the Red Cross has obviously found a huge mission payoff as well. How do you explain to nonprofits that are hesitant to spend time building communities what the payoff could be and how to be patient in finding it?
Wendy: This is the million-dollar question. I think my favorite quote about this is from Socialnomics author Erik Qualmann who says, “The ROI of social media is that your business will still exist in 5 years.”
The other day I met with a nonprofit leader (let’s call her June) who has a great idea for an earned income venture that fits directly with her mission, but she doesn’t have the start-up capital to launch. When she explained this to me, she threw up her hands as if to say, “I’m powerless to move forward.”
But from my vantage point she has all the pieces necessary to raise the start-up capital and launch, she just isn’t putting them together. It’s a common refrain — nonprofit leaders complain about being in a catch-22 of not having enough money to raise enough money. But the answer is often right in front of you. To break free from the starvation cycle, assemble the assets you already have in order to raise capacity capital, which is the topic of today’s post in the ongoing Financing Not Fundraising blog series.
The nonprofit starvation cycle is one nonprofit leaders know only to well. Nonprofit organizations rarely have the technology, staff, and systems to function effectively. So they scrape by trying to wring one more drop out of a completely dry rock. But instead of waiting for funders to fix the situation, it is up to nonprofit leaders themselves to break free. And you break free by raising capacity capital.
Capacity capital is a one-time investment of significant money that can help build or strengthen a nonprofit organization so that it can create more social change. Capacity capital funds things like technology, systems, a program evaluation, revenue-generating staff, start-up costs for an earned income business. It is money that strengthens the organization so that it can do more.
But often nonprofit leaders, like June above, don’t recognize that everything they need to raise capacity capital and break free from the starvation cycle is in right in front of them. Here are the necessary pieces:
A Plan. You know what you need in order to do more, so put together a change plan and figure out what elements you need (technology, systems, staffing) and what they will cost. Do your homework so you can speak intelligently about what it will take to get you from point A to point B. June has a great business plan for her venture and knows exactly how much she needs in start-up costs.
Donors Who Love You. When raising capacity capital you want to go after donors who already love what you are doing and want to see more. You must convince them that a one-time investment of capacity capital will enable you to do even more of what they already love. June has a great network of long-time donors, which she could convince to become capacity capital donors.
A Connection Between Capital and More Impact. Make a convincing argument to those donors that capacity capital will create more of what they already love. For example, having a great Development Director in place can bring hundreds of thousands of new dollars each year which means many more people will be touched by your organization. Or explain how an evaluation of your program will allow you to focus your resources on highest impact activities. June could describe how a profitable earned income venture could increase financial sustainability while delivering more impact.
June has all of these pieces. She has a great plan for an earned income business that could significantly contribute to a more sustainable financial engine and thus allow her nonprofit to reach more people, a clear articulation of how much capital she needs and for what, and a committed group of donors who love the organization. For her, and for most nonprofits, it is simply a question of connecting the dots.
If you want to learn more about the power of capacity capital, download the Enormous Opportunity of Capacity Capital e-book, the Creating a Capacity Capital step-by-step guide or the Raising Capacity Capital webinar.
Photo Credit: PublicDomainPictures
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