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Dan Cardinali

Creating Honest Conversations Between Nonprofits and Funders: An Interview With Eric Weinheimer

Eric WeinheimerIn today’s Social Velocity blog interview, I’m talking with Eric Weinheimer, President and CEO of Forefront, the only regional association that represents grantmakers, nonprofits, advisors, and social entrepreneurs. With 1,100 members in Illinois, Forefront provides education, advocacy, and research, and mobilizes its members around issues that are important to the nonprofit sector.

Prior to his current role, Eric was the CEO of The Cara Program, a nonprofit that provides comprehensive training, job placement, and support services to individuals who are homeless and struggling in poverty. Eric was selected as a member of the Emerging Leaders Program for the Chicago Council on Global Affairs and as a Chicago Community Trust Fellow. He was also appointed by Illinois Governor Pat Quinn to the Social Innovation, Entrepreneurship, and Enterprise Task Force. He serves on the Advisory Board for the Social Enterprise Initiative at The University of Chicago Booth School of Business and on the Board of Directors for the Oak Park-River Forest Community Foundation.

Nell: Forefront is the only statewide association that has both nonprofit and funder members. How does Forefront deal with the power dynamic that is so often present between grantors and grantees?

Eric: Forefront talks explicitly about the power dynamic in much of our programming and classes, specifically our annual Grantmakers Institute for new program officers. We have candid conversations with these grantmakers and present actual case studies to give them a better understanding of their power and unique position. We also discuss how others perceive them and their roles, and how those perceptions can impact their effectiveness.

Forefront also has a non-solicitation policy that prevents nonprofits and grantmakers from discussing specific requests or proposals with each other when they gather at Forefront. The spirit of that policy also extends to how we bring grantmakers and nonprofits together. When nonprofits and grantmakers meet at Forefront, there is an explicit goal or purpose related to an issue in their fields or in the sector. While the power dynamic still exists, putting the focus on a larger purpose rather than on money helps our members build trust, leading to more genuine and balanced relationships. We also make sure that grantmakers and nonprofits co-chair some of our affinity groups to ensure balanced perspectives.

Nell: One of Forefront’s biggest initiatives is Real Talk about Real Costs, a series of funder and nonprofit convenings (the first in the nation) to talk about funding the full costs of nonprofit organizations. What have you learned through this series both about how to encourage more effective conversations between nonprofits and funders and about how to better support strong nonprofit organizations?

Eric: In the conversation on Real Costs we’ve learned that it’s not about creating another resource or a toolkit. Its not about what grantmakers or nonprofits should or should not do. Rather, it’s about starting an honest conversation. There are so many grantmakers and nonprofits that haven’t had the opportunity to dig in and engage with this work, either independently or with feedback from their counterparts. Our value-add is to catalyze these conversations. Forefront’s role is to create the space for honest dialogue, mobilize our members around this issue, promote best practices, and curate and share the newest research. It’s a slow and gradual process, but it ultimately leads to change in awareness, understanding and behavior.

Nell: How far do you think the national social sector has come in terms of more effectively supporting strong nonprofits and building more transparent and effective funder/nonprofit relationships?

Eric: We’ve certainly made some progress in the last 15 years, but we have a long way to go. It’s encouraging to see more funders express interest in general operating support and capacity building. However, too often, funders’ still feel the need to be in control and prescribe certain solutions rather than engage communities for their feedback and ideas.

Likewise, nonprofits have become more transparent, but they are still too reluctant to admit to challenges or failures because of possible consequences to their funding. Funders could model this practice for the nonprofits much more than they currently do. Funder transparency is only in its infancy.

Nell: Your national counterpart, Independent Sector — a national membership association of nonprofits and funders — had a recent change in leadership with Dan Cardinali taking the helm. What would you like to see Independent Sector doing to move this work forward on the national stage?

Eric: Dan is terrific – smart, experienced, strategic and passionate. He will do a great job. Under his leadership, Independent Sector (IS) has a real opportunity to be the connective tissue for our sector and elevate the good work that is happening around the country. I would encourage Dan to focus on a few of the critical issues facing our sector, both internal and external. Whether it be real costs, transparency, the power dynamic, or policy and advocacy, IS can highlight and amplify where real progress is being achieved and help to transport those examples to other locations. Once new practices take hold in certain geographic locations, other regions will follow suit. Organizations are eager for strong leadership that informs, inspires and mobilizes them to action.

Photo Credit: Forefront

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The Role of the Independent Sector: An Interview with Dan Cardinali

Dan CardinaliIn this month’s Social Velocity interview I’m talking with Dan Cardinali, the new president and CEO of Independent Sector, a national membership organization that brings together nonprofits, foundations, and corporations to advance the common good.

Prior to leading Independent Sector, Dan was the president of Communities In Schools, the nation’s largest dropout prevention organization, with operations in 26 states and the District of Columbia. While there he led efforts to develop and advance an evidence-based model of integrated student service provision and launched a national growth strategy to increase the organization’s impact on improving public education. He is a 2007 Annie E. Casey Children and Families Fellow, serves as a trustee for America’s Promise, and is on the board of Child Trends. In May 2011 he was appointed by President Barack Obama to the Presidential Advisory Commission on Educational Excellence for Hispanics. He is also a member of the Leap Ambassador Community of nonprofit and philanthropic leaders.

You can read interviews with other social change leaders in the Social Velocity interview series here.

Nell: You have just become the new head of Independent Sector (IS). In a diverse and growing nonprofit sector that includes many ecosystem organizations like Independent Sector, what do you think the value proposition is for IS? What is the unique role that IS can and should be playing?

Dan: We were founded by John Gardner who was of the sector and believed deeply in the importance of the sector. It was distinct from government and the for-profit sector and uniquely positioned to support the American project. It played a unique and critical role to sustain American democracy and was also a source of profound community co-creation, rising up to provide really good solutions where there were problems and innovating to help communities evolve and grow, and supporting culture and defending the environment. At a time when civil society is shrinking around the world, the independent sector has an even more important role to play.

As for our capital I, capital S organization’s value proposition, we are unique in the country in spanning the sector. We hold the entirety of the grant seeking and grant making organizations and that purview we want to steward very carefully and thoughtfully. We want to be hyper disciplined in a world where there are a number of infrastructure organizations doing really good work, not to duplicate but align and leverage through collaboration. But there are still holes in our estimation in the landscape of what the sector needs. So we are going to remain disciplined in our role as an organization that is sector spanning and national in scope, grounded deeply in community, to determine what we do to add value to the original vision for a more robust social sector.

Nell: Independent Sector can potentially play a unique role because it stands at the intersection between nonprofits and those who fund nonprofits. Is there a bigger role for IS to play in bringing those two sides closer together, breaking down the power dynamic and helping more money to flow to effective organizations? If so what does that look like?

Dan: We are playing a role and part of it is modeling that these are two sides of the same coin – grant seekers can’t exist without grant makers and grant makers can’t get along without grant seekers. It would be naïve to pretend that those with financial resources don’t have an advantage, yet I equally think in the social sector that grant seekers at times abdicate the power that comes with knowing what they know to be effective and owning that. The opportunity exists to partner with grant makers, not just in the transactional sense, but in the co-creation of solutions to ensure that culture flourishes and that the environment is protected and flourishes, and that problems are solved.

In the Threads conversations IS convened with more than 80 partners across the U.S., concerns about the power dynamic were voiced at every stop. In response, IS and member organizations and experts are cooperating to model the best strategies for working together. We need to refocus the relationship on bringing the needed human, financial, and intellectual resources to bear, calling all people of good will to a higher purpose, rather than organizational sustainability.

Nell: Recently 22 nonprofit infrastructure organizations (like GuideStar, Grantmakers for Effective Organizations, etc.) wrote a public letter urging foundations to invest more in infrastructure organizations. Independent Sector was not one of the 22 organizations, but what are your thoughts on their argument and how does, or should, Independent Sector fit in?

Dan: What was encouraging about that letter from very reputable organizations is that it opened up a conversation. The philanthropic community has a role, an obligation, to support effective infrastructure organizations, and we have a responsibility to be effective. But IS will not be in a position to request that support without a discussion of what needs doing, how well we all are doing it, and how can we better leverage each other’s work. I am passionate about this topic, and I appreciate that this letter advanced the conversation. I expect IS will partner closely in the future conversations.

Nell: You come to IS after many years at the helm of Communities In Schools, which moved during your tenure to a very evidence-based approach. Do you see IS moving itself and/or helping the sector as a whole to move toward a more evidenced-based approach?

Dan: What we did at CIS was to create a virtuous circle between our programs and practice and our data and research to continually generate insights, make course corrections as needed, and build on success. This is how we roll. IS has been applying this approach for a long time. In the Threads conversations, we engaged practitioners using a credible analytic process. We listened to them, without presupposing what they would say, and we applied social science to produce a document, the Threads report. We then co-created a strategic framework that engages members and develops our partnership, just as we do with the IS conference coming up in November.

So the evidence-based approach is alive and well. Going forward we can look for ways to accelerate its use across the organization, through a thoughtful integration of technology and 21st century methods of engagement.

Photo Credit: Independent Sector

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Can Philanthropy Pave the Way, Not Get in the Way?

snowplowThere is a growing drumbeat lately (for starters here, here and here) that nonprofits must be more bold. I couldn’t agree more and have argued that nonprofit fear and small thinking sometimes hold them back. But it is becoming increasingly obvious to me that if we want to get better at solving social problems, we have to ask philanthropist to be more bold too.

And I’m heartened to see this conversation starting to emerge. The Letter to the Donors of America, the Donor Forum’s Real Talk About Real Costs effort, Dan Cardinali’s request that philanthropists fund the “unsexy” work of nonprofit capacity building, Rebecca Thomas encouraging funders to support nonprofit resilience, and Ben Powell’s idea that philanthropy provide more start-up capital all add to the philanthropy reform discussion. I love it!

But I want to see the idea that philanthropy can be so much more move beyond talk.

There is a huge disconnect between what nonprofits really, truly need to solve social problems and how funding currently flows. We are locked in a chicken or the egg scenario where often a nonprofit working to solve a social problem encounters some major capacity constraints. For example, a nonprofit doesn’t know how to:

  • Create a sustainable financial model
  • Effectively grow their solution
  • Structure their board and staff for success
  • Strategically filter opportunities
  • Engage key outside elements in the change effort

And quite often they don’t know how to move past these capacity constraints.

At the same time, philanthropists may recognize that a grantee is encountering some significant hurdles, but doesn’t know how (or is unwilling) to invest in overcoming those hurdles. So the constraints remain unmoved.

But what if nonprofits and philanthropists could start working together to move those hurdles?

What if instead of getting in the way, philanthropists started paving the way?

Philanthropy could provide the critical infusion of the right kind of organization-building money at the right time thereby allowing a great solution to grow.

To me, that’s bold philanthropy.

But how do we get there? Philanthropists need to change in some fundamental ways:

Move to Impact
Just as we are increasingly asking nonprofits to move to impact, philanthropists need to do the same. Instead of tracking outputs (# of grantees, $s given), foundations need to start tracking whether their investments result in change to 1) their grantees and 2) the problems those grantees address. Just as we are starting to ask nonprofits “To What End?” we need to ask funders the very same question.

Help Diagnose the Constraints
Once philanthropists start getting clear about what they want to change and whether their investments are actually resulting in change, they need to become cognizant of the hurdles standing in the way of that change. And I will tell you that there are some almost universal hurdles in the nonprofit sector (lack of management expertise, poor leadership development, board disengagement, financial instability). So if a philanthropist really wants to see change to a social problem, he needs to get clear about what those he is investing in need to make that change a reality.

Invest in Removing Those Constraints
But it simply is not enough for funders to recognize that those they fund have very specific and tangible organizational needs. Those funders then must put their money where their mouth is. More philanthropists need to invest in building stronger, more effective, more sustainable solutions. They need to provide more capacity capital, money to build an effective, sustainable nonprofit that can grow impact.

We have only scratched the surface on what philanthropy can do to solve social problems. But I am optimistic that we can fundamentally change philanthropy so that it increasingly provides the capacity capital the sector so desperately needs.

Photo Credit: Jeffrey Beall

 

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10 Great Social Innovation Reads: July 2013

10 Great Social Innovation ReadsSince I was out of the office for part of July and checked out of social media (which I highly recommend!), the below list is in no way comprehensive. But it is what caught my eye in the world of social innovation in July (when I was paying attention). More than ever, please add what I missed in the comments below.

And, as always, you can see more of what caught my eye by following me on Twitter, Facebook, LinkedIn, or Google+.

You can see the 10 Great Reads lists from past months here.

  1. In a highly provocative op-ed, Peter Buffett, son of Warren Buffett, wrote a pretty scathing rant against today’s philanthropy, calling it “conscience laundering — feeling better about accumulating more than any one person could possibly need to live on by sprinkling a little around as an act of charity.” Needless to say, much argument followed, including Howard Husock’s post arguing that Buffett is “far too pessimistic about what philanthropy, well-conceived, can accomplish.”

  2. Dan Cardinali, CEO of Communities in Schools and an emerging voice on the importance of measuring nonprofit outcomes, wrote a third piece in his series on redefining the nonprofit sector. This one explores the need for nonprofits to “hold ourselves accountable to objective measures and quantifiable outcomes.”

  3. And another nonprofit leader trying to shake things up, Bill Shore of Share Our Strength, offers the provocative “We Just Don’t Have the Money, and Other Fibs We Tell Ourselves“.

  4. Antony Bugg-Levine from the Nonprofit Finance Fund provides additional fodder to the conversation with his post “Navigating Tough Trade-offs in the Era of Scarcity.”

  5. Lucy Bernholz, philanthropy truth teller and future seer, offers three ways we can reinvent philanthropy in this great, short video brain dump.

  6. Kathleen Enright, CEO of Grantmakers for Effective Organizations, talks with Paul Carttar, former Director of the Social Innovation Fund, about what he learned there. It remains to be seen what impact the Social Innovation Fund will have, but as Paul says, government can and must play a role in social innovation, “The challenge for everybody — for government and for philanthropy — is to understand what each has to offer.”

  7. The New York Times uses Think Impact (which encourages entrepreneurship in third world communities) to provide an interesting case study of the dilemma of deciding whether to be a for-profit or nonprofit social change organization.

  8. Ever provocative, Phil Buchanan from the Center for Effective Philanthropy argues that the approach MBA programs take in teaching philanthropy “denies the reality that nonprofits and philanthropy work to address the problems that have defied markets…and, in many cases, are a result of market failure.”

  9. Writing on the Pioneers Post blog, Jeremy Nicholls takes issue with the word “impact” and encourages us to think about “value” instead.

  10. The National Committee on Responsive Philanthropy found that in 2011 American foundations increased unrestricted giving by 50% (from 16% of all grant dollars going to support general operating in 2010 to 24% in 2011). Now that’s an exciting trend!

Photo Credit: josue64

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