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Social change

The Changing Nonprofit Landscape [Podcast]

nonprofit podcastEarlier this month I participated in a podcast conversation with Joed Lopez of Panvisio as part of their on-going Q2 Podcast series with social sector leaders.

We talked about:

  • How broken fundraising is
  • A more effective financing approach
  • Nonprofit fear of money
  • The passion of nonprofit leaders
  • The need to articulate a nonprofit’s message
  • Capacity capital
  • Social entrepreneurship
  • Nonprofit boards
  • And much, much more…

I really enjoyed the conversation and hope you will too.

You can listen to the podcast below, or click here to listen to it on the Panvisio site.

 

Photo Credit: Makingster

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How to Create a Compelling Fundraising Ask [Slideshare]

There are many misconceptions about fundraising. One of which is that there is a magic bullet out there (the perfect event, a connection to a celebrity) that will create a financial windfall. Often in the nonprofit world board and staff members so despise fundraising that they desperately search for a shiny object to make it all go away.

But the reality is that fundraising is an ongoing affair. Financial sustainability comes from a strategic financial model, a piece of which often includes loyal, committed donors who passionately believe in your work. And you create that by finding donors who share your view of a social problem and then creating a compelling fundraising ask to convince them to invest.

A Message of Impact does this by describing how your nonprofit creates social value and why a donor should partner with you in creating that value.

Adding to the growing library of Social Velocity Slideshare presentations, below is the How to Create a Compelling Fundraising Ask slideshare, which describes the process for developing your nonprofit’s Message of Impact.

Instead of spending board and staff time trying to dream up the next ice bucket challenge, find a connection to the biggest celebrity, or invent the next must-attend gala, use that effort to create a Message of Impact that will create a cadre of donors who will support you over the long haul.

Take a look.

And if you’d like to learn more about creating your nonprofit’s message of impact, download the Design a Theory of Change Guide or the Craft a Case for Investment Guide.

 

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How Scarcity Thinking Holds Nonprofits Back

birdsThere are many things that hold the nonprofit sector back, not the least of which is a lack of money. But perhaps a bigger impediment is the scarcity thinking that may actually contribute to that lack of money.

Most nonprofit leaders, their staffs, board members, and even funders automatically think that resources will always be scarce. It is such a profound psychological impediment because if your assumption is constant deficiency, then you will never try for more.

But shifting this nonprofit mindset from never having enough (scarcity), to endless potential (abundance) could transform the sector.

MIndsetScarcity thinking is dangerous because it demonstrates a destructive fixed mindset. Carol Dweck’s pivotal 2006 book, Mindset: The New Psychology of Success, describes two ways that people view their abilities, a fixed and a growth mindset, and I think her approach holds great insight for the nonprofit sector.

A person with a fixed mindset believes “that your qualities are carved in stone,” whereas a person with a growth mindset believes “that your basic qualities are things you can cultivate through your efforts.”

Dweck describes the benefits of the growth mindset:

[In the growth mindset your] traits are not simply a hand you’re dealt and have to live with…In [the growth] mindset, the hand you’re dealt is just the starting point for development…People in a growth mindset don’t just seek challenge, they thrive in it. The bigger the challenge, the more they stretch…Sometimes people with the growth mindset stretch themselves so far that they do the impossible.

Isn’t that exactly what we need more of in the nonprofit sector, more seeing the hand you’re dealt as just a starting point, more doing of the impossible?

The growth mindset ultimately leads to “an ever-higher sense of achievement” and “a greater sense of free will.” Wouldn’t that improved sense of achievement and greater sense of free will be transformative to the nonprofit sector?

Nonprofit leaders can drive this shift by moving their organizations and supporters from a fixed to a growth mindset, in several areas:

And the list goes on. The point is that there is tremendous opportunity in the simple act of shifting your thinking. By removing the shackles of a fixed mindset you can set your nonprofit, your board, your staff, your funders and ultimately your social change goals on a path toward what you once thought was impossible. That’s powerful.

Photo Credit: astridle

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How to Build A Stellar Nonprofit Staff

nonprofit staffBuilding and keeping a highly effective nonprofit staff is really tricky. The recently released 2015 Nonprofit Employment Practices Survey from NonprofitHR found that 50% of nonprofits surveyed plan to add new positions in 2015, compared to 36% of private companies. But, staff recruitment and retention are still significant hurdles for nonprofit leaders, with 52% of nonprofits lacking a recruitment strategy and 27% reporting their greatest retention challenge is low wages.

So how can nonprofits grow their staffs when they are hampered by significant recruitment and retention challenges?

Here’s how I coach my clients to build a highly effective nonprofit team:

Recruit Outside Your Comfort Zone
The 2015 Nonprofit Employment Practices Survey found that the top recruitment strategy for nonprofit leaders is to “use a network of friends and colleagues.” But that’s not a strategy. As with everything, nonprofit leaders must embrace the idea of a “networked nonprofit,” growing their connections to people and organizations outside their comfort zone. To find your next staff rockstar, be strategic about getting your job in front of new audiences and networks. Come up with a list of 50-100 people who might be connected to someone who fits the job’s qualifications. Think of strategic allies, leaders in the field, funders, volunteers. Send the job posting and ask them to direct great candidates to you. And in addition to posting the position on regular job sites, send it out through all of your social media channels and ask your board, partners, allies, funders, etc. to do the same. Cast your net far and wide in order to recruit the best and brightest.

Pay Enough
As I said, one of the biggest challenges to retaining staff is low salaries. But the fact is that staff turnover is an enormous cost to an organization (recruitment, lost time, retraining) so convince your board that you should pay competitive salaries in order to save the organization money in the long run. Do salary research (at salary.com, or from nonprofit salary surveys in your region) and determine what a competitive wage for your position really is. Then convince your board to increase the budget to accomodate it. Move from the scarcity mindset to the abundance mindset, or if you just don’t have the funding right now, raise capacity capital to elevate your fundraising function so that you can recruit and retain top talent.

Hire The Right Person
Nonprofit leaders must go against the default, which is to hire someone with less experience than the position requires (since it’s cheaper). Instead hire someone who can take the position to the next level. Hire the person who has the demonstrated experience you need and is hungry to build that function in your nonprofit. But keep in mind that finding that person takes time. Many nonprofit leaders make quick hiring decisions because they are desperate to fill a position and end up suffering a poor fit later. Instead, create a detailed due diligence process which includes multiple rounds of interviews (quick screening phone calls, longer one-on-one interviews, interviews with their future staff colleagues, interviews with key board members), a written “homework assignment” to gauge their skills, and detailed reference checks. Be thoughtful and methodical in your process and spend the time it takes.

Manage Effectively
Once you have a great person in place, make sure you lead them effectively by using goals and strategy, not micromanagement. The best way to do this is to schedule a 30-60 minute, weekly, one-on-one meeting with each of your direct reports that focuses on your goals for their position. This allows you to give your staff ample leeway to shine, while monitoring their progress along the way.  You will also have fewer interruptions during the rest of the week because your staff feels they get the attention and feedback they need in a regular, dedicated meeting. This creates an empowered staff, a confident leader, and a productive organization.

Like anything else, doing something well takes strategy and the will to effectively implement it. You can recruit and retain a phenomenal nonprofit staff, but you must be thoughtful about it.

If you want to learn more about the coaching I provide nonprofit leaders — on staffing, board development, fundraising, strategy and more — check out my Coaching page.

Photo Credit: Maurice Bramley

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Building a High Performance Movement: An Interview With Lowell Weiss

lowell weissIn today’s Social Velocity interview, I’m talking with Lowell Weiss, President of Cascade Philanthropy Advisors, which provides personalized guidance to foundations and individual donors seeking to deepen their impact. Previously, he served in leadership roles at the Bill & Melinda Gates Foundation, the Morino Institute, and in the Clinton White House.

Lowell is one of the leading architects of the Performance Imperative, a detailed definition of a high-performance nonprofit, which launched last week.

You can read past Social Velocity interviews here.

Nell: Why do the Leap Ambassadors believe now is the right time to introduce the Performance Imperative (PI) to the nonprofit sector? There have been past attempts to move the sector toward outcomes and performance. What makes this effort and this timing different?

Lowell: We don’t know if we’ll break through with this effort. But the 70+ members of the Ambassadors Community are committed to giving it our all, because we believe that performance matters more than ever. The social and public sectors are increasingly steering resources toward efforts that are based on a sound analysis of the problem, grounded assumptions about how an organization’s activities can lead to the desired change, and leadership that embraces continuous improvement.

High performance is all too rare in our sector today. In fact, we don’t even have a commonly accepted definition of the term “high performance.” The PI is our attempt to create that common definition and then start the process of creating guideposts to help nonprofits who are motivated to improve their performance for the clients and causes they serve.

We’re not aware of any other effort devoted to this mission-critical topic that has engaged so many top nonprofit executives, funders, and thought leaders as co-creators. Perhaps even more important, the PI goes beyond the typical focus on helping nonprofit leaders do things right. When leaders do things right, they can achieve strong operational performance but not necessarily meaningful results for beneficiaries. To achieve the results embodied in their mission statements, leaders must go the extra mile, through diligent internal monitoring and external evaluation, to ensure they’re also doing the right things.

Nell: Does the PI apply to any and all nonprofit organizations? Is it a measuring stick that any size and domain area nonprofit should use, or are there certain types of nonprofits for which this really works?

Lowell: We believe the insights in this document are most immediately applicable to nonprofit organizations with budgets of $3 million or more. But many of the basic management principles apply to organizations of any size, just in less-intensive ways. Some of the details have a special focus on organizations that provide direct services. We believe the overarching framework is relevant for organizations of almost any type.

Nell: What will keep the Performance Imperative from becoming a dusty document rather than a movement? What does success look like for this movement and how will you measure whether that happens?

Lowell: Let’s face it: The topic of high performance is not a lightning-fast meme that will spread like a left shark or right-wing conspiracy theory. It’s a slow, complex idea that will require patient, methodical work to advance. Hence the importance of the Leap Ambassadors Community, a group of leaders who care deeply about high performance and are willing to share the gospel with trusted colleagues and peers.

We believe that when leaders with strong beliefs and passion coalesce around a common purpose, they can build a collective power and influence to drive positive change. They can create an infectious enthusiasm to pull other like-minded players into a growing community of action. That can only happen when you take the time to build relationships, trust, quality work, and collective pride in that work. Overall, we’ll judge our success based on a) to what extent the PI becomes an established framework for increasing the understanding and expectation of high performance as a critical pathway to greater societal impact; and b) to what extent the Leap Ambassadors Community demonstrates itself as a thoughtful, knowledgeable, aligned community of leaders and earns respect, collaboration, and support from prominent players in the field.

To be more concrete about how we will know if we’re on the right track, we’ve established metrics for the growth and engagement of the Ambassadors Community as well as for the value of the PI itself. Here a few of the milestones we hope to achieve over the next year:

  • 100‐150 ambassadors have jelled as a community and are truly aligned with the community’s purpose.
  • At least 25 nonprofits commit to using the PI to assess their strengths and needs; increase the board’s focus on mission effectiveness; improve their professional-development and  organization-building efforts; or otherwise use the PI as a North Star to guide their journey toward high performance.
  • Three to five foundations adopt the PI for themselves and their grantees, and they begin to apply the PI in their grant decisions and grantee support.
  • Three charity ratings or information providers build the PI into their offerings.
  • At least two vendors prominently use the PI in their suites of products and services.
  • At least two prominent nonprofit management and leadership programs incorporate the PI as a core staple in their products and services.
  • At least one institution creates a prominent award aligned with the PI or adapts an existing award.

Nell: Where do funders and regulators fit into this push for higher performance in the sector? One of the things that holds nonprofits back from high performance is an inability to spend the money it takes to achieve high performance (money for infrastructure, evaluation, staff, etc.). How do we fix that and where does fixing that fit into the movement’s plans?

Lowell: Funders and regulators can and must play a role. Right now, I’m helping a multiservice agency transition from providing compassionate care to ensuring that its clients achieve meaningful, measurable, sustainable life outcomes. The agency is trying to live the PI. But here’s the sad reality: The journey toward high performance is making the organization’s development challenges harder, on net. That’s because there are so few funders who understand the value of high performance—and even fewer who reward it.

To make the leap to high performance, nonprofits need creative funders willing to think big with them—not just ask for more information on results. They need funders who understand that making the leap requires more than program funding and more than the typical “capacity-building” grant. They need funders who make multi-year investments in helping nonprofit leaders strengthen their management muscle and rigor.

That’s why we’re so supportive of the work of Results for America and the Coalition for Evidence-Based Policy, organizations that are helping governments to base funding decisions on evidence and results. And that’s why the Ambassadors Community is developing the case for high performance that we can start bringing directly to funders. Bridgespan Group Co-Founder and former Social Innovation Fund Director Paul Carttar and Center for Effective Philanthropy President Phil Buchanan are co-leading a working group of ambassadors to build the case for funders. They are planning to convene a dozen+ foundation leaders to help flesh out the most effective arguments and evidence we can assemble to persuade funders that they have a better chance of accomplishing their missions if they support their grantees’ pursuit of performance.

Photo Credit: Cascade Philanthropy Advisors

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What Is A High-Performance Nonprofit?

PI-Poster-WebPromoGraphic-580x750I’m really excited to announce today’s launch of the Performance Imperative. The Performance Imperative is a detailed definition, created by a community of nonprofit thought leaders, of a high-performance nonprofit. The hope is with a clear definition of high-performance we can strengthen nonprofit efforts to achieve social change.

As we all know, we are living in a time of growing wealth inequality, crumbling institutions, political divides, and the list of social challenges goes on. The burden of finding solutions to these challenges increasingly falls to the nonprofit sector. So “good work” is no longer enough. We need to understand — through rigor and evidence — which solutions are working and which are not.

The Performance Imperative was created by the Leap Ambassadors Community, a network of 70+ nonprofit thought leaders and practitioners of which I am a member. The group emerged from the 2013 After the Leap conference, which brought nonprofit, philanthropic and government leaders together to create a higher-performing nonprofit sector. The group is determined to lead the fundamental, and critical, shift towards a more effective nonprofit sector.

The Performance Imperative defines nonprofit high performance as “the ability to deliver—over a prolonged period of time—meaningful, measurable, and financially sustainable results for the people or causes the nonprofit is in existence to serve.”

The Performance Imperative further describes seven organizational pillars that lead to high performance:

  1. Courageous, adaptive executive and board leadership
  2. Disciplined, people-focused management
  3. Well-designed and well-implemented programs and strategies
  4. Financial health and sustainability
  5. A culture that values learning
  6. Internal monitoring for continuous improvement
  7. External evaluation for mission effectiveness.

Each one of these 7 pillars is fully explained in the Performance Imperative.

Over the next several months I will write a blog series that digs into each of these 7 pillars to understand what each one means for a nonprofit organization and to examine case studies of how other nonprofit leaders have approached the pillars. And next week on the blog I’ll interview one of the founders of this movement toward high performance.

Although the Performance Imperative is targeted toward $3M+ nonprofits, it can also be a benchmark upon which any social change nonprofit can measure itself. Nonprofit boards and staffs can use the Performance Imperative as a north star to guide their journey toward higher performance.

To learn more about the Performance Imperative, watch the video below (or here), or download the complete Performance Imperative here.

The critical necessity of a high performing nonprofit sector is clear. We no longer have the luxury of benevolent good works that sit aside the business of our country. Now is the time to find solutions that really work and develop the leadership and sustainability to spread them far and wide.

As Mario Morino, founder of the Leap Ambassador Community has said, “If we don’t figure out how to build high performing nonprofits, nothing else matters. This is the last mile. Our nation depends on it.”

 

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Finding Shelter From Information Overload

Information We live in an age of an (often sickening) glut of information. Sometimes just thinking about Twitter, Facebook, Google, or BuzzFeed makes me really tired. And I love technology and media. But they can be absolutely overwhelming.

I recently finished Nate Silver’s phenomenal book, The Signal and the Noise, in which he offers a new way to approach our age of information overload. Silver’s book is about how we can better predict things like weather, economic fluctuations, and climate change by finding the right “signal” amidst the exponentially expanding body of data, or “noise.”

Silver describes how our current Internet age is very similar to life after the invention of the printing press, when books were suddenly cheap and everywhere. The result of this sudden enormous increase in the availability of information was, unfortunately, 200 years of holy war. Although Silver doesn’t believe we’re headed for another 200 year war, he argues that we must understand the parallels and the dangers of too much information. As Silver puts it:

We face danger whenever information growth outpaces our understanding of how to process it. The last forty years of human history imply that it can still take a long time to translate information into useful knowledge, and that if we are not careful, we may take a step back in the meantime.

In other words, we need to figure out how to organize the firehose of information that faces us everyday. I don’t know exactly how to go about that, but for my own sanity I have developed a few strategies.

First is taking regular time away from all of the information just to process and think alone, without screens, books, or chatter. We all must claim our very real need to turn off the noise and look inside for the meaning, the right approach, the way forward.

Second is seeking out the past. I was a history major in college and still love the subject, so my predisposition when I am overwhelmed is to look at how we approached things in the past. There is great peace there. In particular, I love the weekly email from Brain Pickings where writer Maria Popova delves into the works of past writers to help understand our world today. Aside from finding new things to read, it is incredibly comforting to realize the struggles we face today are really not all that new.

And finally, I believe that dissent holds promise for finding shelter from the information glut. One of the things Silver warns against (and we see this everyday) is that in an age of information overload, people tend to shut out things that are at odds with their opinions or experience. Our country’s current deep political divide is an example of this. So we need to break down those walls and surround ourselves with people who make us pause and who make us think. We need to seek out people who share our values, but not necessarily our life experience, education, politics, income level, or opinion on how the world should work.

We don’t have to succumb to the exhausting deluge of information. As Callie Oettinger put it, “The Internet is ours to shape. We can’t let the howling spread.”

Photo Credit: Roy Miller

 

 

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4 Tools to Build an Effective Nonprofit Board

nonprofit boardThe board of directors can be the bane of a nonprofit leader’s existence. Call me biased, but like anything, I believe a strategic approach is the solution.

I have assembled a suite of tools to help you strengthen your board and make them much more useful to you. Because the good news is you don’t have to sit around and hope your board sees the light. It is within your power to make your board more effective.

To help in that endeavor, here are the board-building tools:

groundbreaking boardHow to Build a Groundbreaking Board On-Demand Webinar
This webinar will help you develop a groundbreaking board that will: define what it should do and how, recruit the right people, drive strategy for the overall organization, use money more effectively, strengthen the organization, and open your nonprofit to greater support, awareness and connection in your community.

 

Fundraising BoardHow to Build a Fundraising Board On-Demand Webinar
This webinar will help you create a system for getting each individual member involved, give them clear money raising responsibilities, provide them many options for bringing money in the door, and get them excited and engaged in the future of the organization.

 

 

nonprofit board10 Traits of a Groundbreaking Board Book
This book defines the 10 traits that characterize a groundbreaking nonprofit board and describes how to move your board toward becoming one. In creating a groundbreaking board, your nonprofit will enjoy greater financial sustainability, more effective use of resources, and ultimately more social change.

 

Nonprofit BoardBuild An Engaged Board Bundle combines all three tools (the two webinars and the book) into one bundle so that you can hit the ground running.

 

 

 

And below is a short excerpt from the “How to Build a Fundraising Board” Webinar to give you a feel for the on-demand webinars:

You can find all of the board building tools — along with the other Social Velocity guides, webinar, books and bundles — at the Tools page of the Social Velocity website.

Good luck!

Photo Credit: pixabay

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