There was a lot of talk in November about how we actually make the shift toward measuring outcomes in the nonprofit world. And the resounding theory was that we should start with funders and funding for evaluation. Let’s hope philanthropists are listening!
And speaking of funding, there were some fascinating articles about the financing of public parks and how philanthropic, corporate and public money all affect a very public good.
At the end of the day it’s always about money isn’t it?
Below are my picks of the 10 best reads in the world of social innovation in November. But as usual, please add what I missed in the comments.
- A fascinating article in The New Yorker unpacks some recent developments with the funding of New York City parks, the delicate balance between private philanthropy and public goods, and how both contribute to or detract from equality. Exploring a similarly murky delineation between public goods and corporate profit, this article from The Atlantic Cities describes a new trend in corporately-financed public parks.
- Writing in the Stanford Social Innovation Review, Christina Triantaphyllis and Matthew Forti argue that NGOs need to move from overhead measures to cost-per-impact measures. And funders need to help that shift happen.
- Phil Buchanan from the Center for Effective Philanthropy would agree, it seems. As he puts it, “Until foundations really step up and support nonprofits’ data collection, assessment, and improvement, we will not get the best out of our collective efforts.” Tell ‘em, Phil!
- But maybe the solution is more systematic. Ever the visionary, David Henderson offers an idea to make the shift toward impact by tying charitable deductions to outcomes. Crazy or brilliant?
- The nonprofit sector really needs to get over its inferiority complex, and to help, the University of San Francisco’s MPA program developed this great infographic on The Rise of the Nonprofit Sector.
- From the HubSpot blog comes some tips for how nonprofits can use social media to really engage people, and The Guardian in the UK offers the 5 characteristics of the top 30 nonprofit CEOs on social media.
- On the How Matters blog Jennifer Lentfer argues that the “social good industry” wrongly assumes “that in the developing world, nothing exists, i.e. that there’s a blank slate upon which our interventions can be built.”
- There are some great reports and data analysis tools recently released. For a start, you can dig into the foundation landscape, analyze nonprofit financial performance, or understand how content marketing and technology are being used for social good.
- Speaking of technology for social good, crowdfunding is becoming a bigger funding source for social causes, raising $2.7 billion in 2012. Lucy Bernholz rounds up the research on this emerging and not fully understood funding vehicle.
- And finally, a really cool example of truly public art has emerged in Milwaukee, Wisconsin.
Photo Credit: kakao-bean
It was really hard to narrow down to 10 great reads this month. People wrote some really compelling (even more than usual) things in October. And some longer pieces in particular were quite thought-provoking. Some asked searing questions like “Is arts innovation really innovative?” and “Is increasing income disparity making us less empathetic?” and “Can philanthropy fix our broken democracy?” And that’s just a start. Lots to think about.
Below are my picks of the 10 best reads in the world of social innovation in October. But please add what I missed in the comments.
- The conversation about the overhead myth, the destructive idea that nonprofits should be evaluated based on how much they spend on overhead (fundraising and administrative expenses), still rages on. First Paul Hogan from the John R. Oishei Foundation reframes the argument to include general operating and program support. Then Heather Peeler from GEO reports on a panel at a recent gathering of Social Innovation Fund grantees and grantors discussing what funders can do to build more sustainable organizations. And Julie Brandt writes a ringing endorsement of the overhead myth movement arguing that “Donors need to focus on evaluating charities based on leadership, transparency, governance, and results.”
- But lest you think that everyone agrees, Tiziana Dearing raises some good points about nonprofits not yet having the necessary resources or tools to boil outcomes down to short term ratios or ratings. As she says, “Everyone has more work to do.”
- There were some great examples of nonprofits using social media in interesting ways. From the Social Media BirdBrain blog comes 4 Best Examples of Nonprofit Video Storytelling and from the HubSpot blog, 10 Nonprofits That Are Totally Nailing Pinterest Marketing.
- And speaking of innovatively using media to move social change forward, this infographic on America’s school dropout problem demonstrates a concise and compelling way to explain a complex problem.
- Part of the potential solution to America’s education problems might lie in new science. An interesting new school within Zappos CEO Tony Hsieh’s Las Vegas Downtown Project is using neuroscience to teach children in new ways.
- If you really want to unpack the buzz around “innovation,” particularly in the arts, take a look at this really interesting, thought-provoking 6-essay series at Culturebot questioning innovation and the arts, what’s working and what isn’t. It is well worth your time and is guaranteed to make you think.
- On the Idealist blog, April Greene wisely counsels those entering the social change space, that if you want to pursue your dreams, don’t tell your mother. Such good advice, ha!
- Richard Eisenberg provides some really interesting analysis of recent data and what it tells us about how generations approach giving differently.
- Writing in the New York Times, Daniel Goleman worries that the widening income gap may be creating a widening empathy gap because “social distance makes it all the easier to focus on small differences between groups and to put a negative spin on the ways of others and a positive spin on our own.” Very scary.
- President of the MacArthur Foundation, Robert Gallucci writes a passionate plea that philanthropy help fix a quite broken (as particularly evidenced in October’s federal government shutdown) American political system.
Photo Credit: ekelley89
In this month’s Social Velocity blog interview, I’m talking with Brian Sasscer, Senior Vice President of Strategic Operations at The Case Foundation. Brian is responsible for the Case Foundation’s web presence strategy and overseeing the Foundation’s operations. His passion for his job is fueled by a desire to continually push new technologies and for-profit thinking into the nonprofit sector.
I wanted to talk to Brian because of the very exciting new Giving Graph project they announced last March at SXSW. The Giving Graph would help the social sector use data and technology to connect people to causes they are passionate about in a seamless way.
You can read past interviews in the Social Innovation Interview Series here.
Nell: When you presented about the Giving Graph at SXSW last March it was just an idea. Where does it stand now? Is the Case Foundation moving forward to execute on the concept?
Brian: The Case Foundation has been thrilled by the positive response we’ve received since introducing the concept of the Giving Graph in March. We’ve had multiple conversations with folks from the tech and social good community that have surfaced some exciting opportunities to help advance the project. For example, we were approached by Rayid Ghani, who served as Chief Data Scientist from the 2012 Obama for America campaign. He is spearheading The Erich & Wendy Schmidt Data Science for Social Good Summer Fellowship program at the University of Chicago. This new program is bringing together 36 aspiring students in the fields of computer science, programming and statistics to seek out opportunities to use data science as a tool to solve complex social issues. The Giving Graph was selected as one of the projects collaborators and these students will experiment with over the summer.
Through conversations with other nonprofits, for-profits, foundations and technology companies, we’ve made great connections and relationships that have helped us understand the possibilities the graph could provide for a stronger infrastructure within the social good sector. Specifically, we have opened dialogue with the Gates Foundation, as well as Guidestar CEO Jacob Harold. Michael Lewkowitz of Igniter is another individual who has done an exceptional job of exploring the concept of an impact graph, and understanding the landscape of this data play in the social good sector.
We also reached out to other organizations such as Network for Good and Global Giving in an effort to survey the space and understand the big data players in social good data. There are a number of talented individuals who share our vision of helping to further develop a concept that supports and encourages growth in the social sector. As for the Graph itself, we will continue our discussions and experimentation with the University of Chicago fellows assigned to the project with a goal to produce key findings from the experiment sometime in the fall.
Nell: You have sought a good deal of public input on the concept of the Giving Graph. How has that input altered the initial concept?
Brian: We have received excellent feedback from the public related to the SXSW presentation and our blog post. The majority of the input we have received is from thought leaders, nonprofits and foundations, for-profits, and other individuals already working in the data space as it relates to the social sector. Their feedback has validated the need for a tool like this for the sector. The first part of the Giving Graph concept itself was focused on identifying the key players in the data space for social good, understanding the space, and analyzing data location in the social good sector. Through research and discussions with other organizations, we have concluded that our end vision and goal is aligned with the goals of numerous other projects.
We found one project that is working to reform the sector from an information infrastructure point of view, another is helping to facilitate data-sharing amongst organizations, and another is working to match social good opportunities to an individuals interests. Each project can support and build off the others, propagating the number of resources available for the social good sector. From our findings, we have validated our concept and identified different projects out there that satisfy different components of our vision. The hope is to bring these different initiatives together and see this concept come life.
Nell: Do you think something like the Giving Graph could cause an appreciable increase in the amount of philanthropic dollars available in the sector, or would it simply alter where philanthropic dollars get spent?
Brian: We think the Giving Graph concept has the potential to drive both outcomes – both shifting of philanthropic dollars, as well as increasing the overall dollars being given to philanthropic causes. We believe the Giving Graph could help identify new spaces for social good and new campaigns and programs to live in those spaces – leading to potential shifting of philanthropic dollars, as well as bringing in new audiences that would help bring more dollars to the space. And by leveraging data to more effectively connect individuals with causes and organizations that are relevant to them, we can increase the potential for both financial contributions as well as people to give back in other ways – whether spreading the word about a particular campaign or organization, or volunteering in some capacity.
Nell: A huge challenge of any new social media application is getting a critical mass of people to actually start using it. How do adoption rates factor into your plans?
Brian: That is absolutely correct – the Giving Graph concept will be a collaborative effort in many ways. One aspect is the data. In addition to tapping into different data sources, partnerships among additional organizations will be necessary. We need a series of nonprofits, for profits, cross-sector foundations, and other companies to contribute and share information into this graph to maximize the potential. This can be a challenging component, as data in today’s world is very valuable. Nevertheless, we have started conversations with various organizations about sharing data for the benefit of the graph and we’re optimistic. We’re at a turning point in data sharing, as organizations are becoming less reluctant to share than they have been in the past.
Another aspect of the project is end-users, and they appear in various ways. It could be a program manager at a nonprofit who is identifying a program to implement at her organization. In another instance, it is a college student trying to find out a local seminar to attend based on his charitable interests. For individuals, we are not going to put a front end on this database. The idea is that applications/platforms will be able to tap into this graph and ultimately provide users the ability to plug in their information, and for platforms to then integrate this information into the larger graph.
So absolutely, critical mass from both a data and usage point of view will play an important role in this project. It will take a lot of relationship building and trust, especially around data. The web is transforming into an experience that truly knows the end-users. The Giving Graph is unique because it not only represents another way for the web to understand end-users, it also provides the ability to give insight into and improve the entire social sector as well.
Nell: Why did the Case Foundation decide to spend time and resources on creating a new technology for the overall philanthropic sector? How does this effort fit into the Foundation’s larger and longer-term goals?
Brian: Our founders Steve and Jean Case were responsible for bringing America online decades ago. They believe in the potential of technology, and particularly the Internet, to connect people together to drive positive social change. The Case Foundation has a storied history of investing in and leveraging new technology platforms for social good – from our investments in online giving platforms like Network for Good, Causes and MissionFish, to programs like the Make it Your Own Awards and America’s Giving Challenge. Our intent is not to create the graph ourselves, but rather to seed the conversation and collaborate with our partners to provide the sector with a new tool in their tech for good arsenal. We think this Graph concept has the potential to change online philanthropy and revolutionize the sector, sparking innovation in ways akin to the commerce and entertainment industries.
Last Thursday was the 4th annual Millennial Impact Conference (MCON#13) hosted by the Case Foundation and Achieve, a fundraising agency specializing in Millennial donor engagement. The conference is an opportunity to analyze the Millennial generation (ages 20-33) and how they think about and engage in social change.
Because the Millennial generation is so large and they are coming of age in a time when technology and how we communicate are changing so rapidly, they will have a big effect on the sector.
As part of MCON, Achieve annually releases a study on the philanthropic interests of the Millennial generation. Their online survey of over 2,500 Millennials (and in-person user videos of 100 Millennials) found some interesting things about how this generation connects, gets involved and gives. And their findings seem to echo earlier studies about Millennial donors and their interest in impact.
Achieve’s study found that “Millennials aren’t interested in structures, institutions, and organizations, but rather in the people they help and the issues they support.”
Here are some more interesting findings about Millennials and their engagement with social change:
- Behind email, Facebook is the next preferred method by Millennials to stay current on organization issues.
- 83% of Millennials use smartphones.
- Mobile friendly websites are the most important feature on the smartphone device that Millennials want from organizations.
- The number 1 action on websites and social networks taken by Millennials is sharing content.
- Advance online training and knowing how the volunteer experience will affect the people served is a key interest to Millennials.
- Run/Race/Walk events are the highest peer fundraising approaches used by Millennials.
- Asking for a donation to an organization instead of receiving personal gifts is a growing favorite among Millennials.
- Online websites are still primarily used and preferred when Millennials donate.
- Millennials are more likely to donate when the organization explains how the gift will impact an individual.
The full report along with Millennial user testing videos (which are fascinating looks into how Millennials react to and engage with nonprofit websites) are available here.
The implications for the nonprofit sector are important. And they underline the fact that nonprofits cannot ignore social media and the Millennial generation. Nonprofits must embrace the fact that the world is very different now than it was even 5 years ago. They must embrace and find ways to engage this younger generation. It’s about empowering Millennials to tap into their networks to find advocates, volunteers, supporters for the cause.
So get out there and start experimenting.
Photo Credit: The Millennial Impact
June was all about attacking some pretty fundamental roadblocks in the way of social change. From the pivotal “Pledge Against The Overhead Myth,” to a new database for all nonprofit organizations, to moving philanthropists from innovators to capacity builders, to ideas for growing the level of giving, it seems June was about putting everything on the table and exposing what stands in the way of progress.
Below are my 10 favorite social innovation reads in June. But, as always, add your favorites to the list in the comments below. And if you want to see my expanded list, follow me on Twitter, Facebook, LinkedIn, or Google+.
You can see the 10 Great Reads lists from past months here.
- The big news in June was GuideStar, Charity Navigator and BBB Wise Giving Alliance’s Open Letter to the Donors of America and their kick-off of the Pledge to End the Overhead Myth. The three nonprofit review organizations are on a quest to expose the destructive nature of the overhead myth.
- This exciting announcement was followed quickly by some great articles. Kjerstin Erickson’s (former Executive Director of FORGE) eye-opening post about how the overhead myth can ruin a great nonprofit. And Ann Goggins Gregory (most famous for the seminal Nonprofit Starvation Cycle article in a 2009 Stanford Social Innovation Review that arguably started the entire overhead debate) great post about what nonprofits can do to speed adoption of the idea of overhead as myth. And Phil Buchanan from the Center for Effective Philanthropy chimes in with what foundations can do. And writing on the Grantmakers in the Arts blog, Janet Brown seems to agree, arguing that “with more efforts for honest assessment and honest communication between funders and nonprofits, we can stop dancing solo and begin dancing as real partners.”
- Antony Bugg-Levine, from the Nonprofit Finance Fund, gets down to brass tacks, gleaning 3 things that funders can do to help nonprofits from the NFF’s most recent State of the Sector survey.
- Echoing these same themes, Dan Cardinali, President of Communities in Schools, argues in the Huffington Post Impact blog that “Philanthropists…must come to grips with their new role as capacity builders rather than innovators.” Amen to that!
- But the reality is that foundations aren’t using innovative tools already available to them. A recent study by the Indiana University Lilly Family School of Philanthropy found that only 1% of US foundations are using PRIs (program-related investments), which I think is an enormous missed opportunity.
- Keeping with their ultimate goal of building the data infrastructure necessary for social change to thrive, Markets for Good announces the new BRIDGE project, which assigns all nonprofits a “numerical fingerprint” so that we can eventually understand the global social sector at scale.
- The annual unveiling of philanthropic giving numbers shows the same result, giving as a share of Gross Domestic Product has not strayed far from 2 percent over the past four decades. Suzanne Perry offers some reasons why, past failed attempts to grow the figure, and new ideas for moving the needle.
- The Dowser blog interviews Patrick Dowd, founder of the Millennial Trains Project, a ten day transcontinental train journey where each of the 40 Millennial riders profiles a crowdfunded project to build a better nation.
- If you wonder whether social media can actually move social change forward, check out this fascinating case study. A Facebook app encouraging organ donation resulted in an initial 2000% increase in organ donor sign ups. Who knows if those rates will continue, but the experiment definitely demonstrates the power of social media.
- There is a lot of hype in the world of social innovation, and two contrarians offer some thought-provoking perspectives about digging beneath the hype. First Daniel Ben-Horin is fed up with social entrepreneurs who don’t realize what a long haul social change is, when he notes “This making a difference stuff, it turns out, can be a real grind.” And Cynthia Gibson argues that we need to create a culture within the social change space that “encourages healthy skepticism.”
Photo Credit: mindfire3927
The constantly evolving world of social media can be absolutely exhausting. You want to keep up, but how can you when the number of sites grows every day? And each site competes with the others on look, functionality, audience size. I’ve finally decided to take the advice of many and focus my time on a select few sites. These are:
At first I was hesitant about Google+. Even though Google+ can’t boast anywhere close to the number of people that LinkedIn and Facebook do, it is still very much on my list. Google increasingly controls how people find content on the web, and it is more than likely that the search engine will increasingly reward those who use it (your content will rank higher in searches if you are using Google+).
But in addition to that, I’m pretty excited about Google Hangouts, Google’s answer to online meetings. I participated in my first Google Hangout in April with David Henderson (How to Use Real Performance Data to Raise More Money), and now I’m using Google Hangouts with small groups of nonprofit leaders in the Financing Not Fundraising E-Course. I also have client meetings via Google Hangout. But I think there is huge potential for even more with Google Hangouts.
To host all of this new activity I’ve launched a Social Velocity Google+ page. I plan to host some informal social innovation chats and perhaps move some of my monthly social innovator interviews from written exchanges to live or recorded Google Hangouts. So, on the Social Velocity Google+ page in addition to updates, articles and other happenings in the world of social innovation you can participate in upcoming Hangouts and interact with leaders in the social innovation space. I hope you will join me at Google+. You can follow the Social Velocity Google+ page here.
What are your thoughts on Google+? How effective a social media channel is it for you?
This was a really hard week. The horror of the Boston Marathon and the explosion in West, Texas. I think we all feel horrified, vulnerable, shocked. But two things this week made me see the hope beyond the sometimes dark elements of life.
First was comedian and actor Patton Oswalt’s beautiful Facebook post about the ultimate goodness of humankind in the face of tragedies like the Boston Marathon. You should read the full post, but here is an excerpt:
Every once in awhile, the wiring of a tiny sliver of the species gets snarled and they’re pointed towards darkness. But the vast majority stands against that darkness and, like white blood cells attacking a virus, they dilute and weaken and eventually wash away the evil doers and, more importantly, the damage they wreak…So when you spot violence, or bigotry, or intolerance or fear or just garden-variety misogyny, hatred or ignorance, just look it in the eye and think, “The good outnumber you, and we always will.”
And the second thing that gave me hope this week was this video from 12+, a nonprofit in Philadelphia that empowers students from under-served communities to pursue education beyond 12th grade (h/t @vppartners and @YearUp). It is incredibly inspiring. So if you need a little light after a dark week, take a look:
The majority of nonprofits struggle to bring money in the door. And they often don’t know why. When you are on the inside of an organization that is used to doing things a certain way it can be nearly impossible to see new opportunities, to understand what you could do differently. There can be many reasons why a nonprofit doesn’t bring enough money in the door.
But here are the top 5 reasons a nonprofit struggles financially:
- Too Many Programs Drain Money From Your Organization. It sounds like a truism — you struggle with money because your programs cost money. But the reality is that few nonprofits analyze their programs to determine each one’s individual impact on the bottom line. Often they will add a new program because it has an impact on the mission (or because a single funder wants the program), without understanding how the new program fits into the organization’s overall financial picture. The end result is an organization that is stretched to the breaking point. Nonprofits must analyze all of their programs to understand their impact not just on mission, but also on finances, then they can make decisions about where to more sustainably focus resources.
- You’re Leaving Money Up to One Person. The financial engine of a nonprofit must be a team effort. Yes, it is important, if you are large enough, to have a staff member whose sole job is to think about money, but you cannot leave it all up to her. The entire organization, from the front line program staff all the way up to the chair of the board must understand the critical importance of money and what role they individually play in securing it. Although program staff won’t actively solicit donors, they can still share client stories with donors, write blog or newsletter articles, participate in program tours with donors, and even suggest new ideas for tying money to their programs. And there are countless ways for board members to bring money in the door, but you have to make sure they are aware of and doing their part.
- You’re Not Effectively Telling Your Story. It is so common for nonprofit staff and board members, who believe so passionately in their cause, to think that it’s obvious to outsiders why they should get involved. But it isn’t. And in an increasingly crowded social change marketplace it is more important than ever that nonprofits be able to articulate, in a compelling way, what value they are providing a community.
- You’re Doing What Everyone Else Does. It drives me crazy when a nonprofit that is struggling financially witnesses another nonprofit’s fundraising activity and tries to replicate that perceived success, without analyzing if it makes sense. Just because it looks like a recent gala or a new thrift store rakes in the money doesn’t mean a) that it did actually make a profit for the nonprofit and b) that it would make a similar profit for your nonprofit. The key is to make the best use of your specific assets as an organization. Think about what value you have to offer and who might be interested in paying for that value. For example, a homeless shelter could financially partner with local businesses to move people away from storefronts and into more stable and life-changing accommodations. You have to analyze what you have to offer and who specifically would be willing to pay for that value.
- You’re Not Investing In Your Money Raising Function. If you don’t have enough or the right kind of staff in place to raise money it is little wonder that you struggle. And if you’re not giving them effective tools they will be at a loss. Think about your financial engine and the various revenue streams you employ. Do you have the technology, staffing, systems, materials, space you need to raise money well in those ways? For example, if you want to raise money from individuals you need an effective database system that tracks contact information, interactions, history, interests. Whatever ways you bring money in the door, you need to ensure you have enough and the right kind of tools to do it well.
If you’d like help to both assess why your nonprofit isn’t raising enough money and create a plan to raise more, join us for the Financing Not Fundraising E-Course. I’ll analyze how your organization brings money in the door, give you ideas for increasing your financial engine, and help you put together a new financing plan. You’ll also get to hear from and work with other nonprofit leaders in your shoes. Find out more about the Financing Not Fundraising E-Course here.
Photo Credit: tuppaware_001
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