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Why Philanthropy Must Speak Out: An Interview with Grant Oliphant

In today’s Social Velocity blog interview, I’m talking with Grant Oliphant, president of The Heinz Endowments (and frequent contributor to their excellent blog).

Prior to running The Heinz Endowments, Grant was president and chief executive officer of The Pittsburgh Foundation for six years. Before that, he served as press secretary to the late U.S. Sen. John Heinz from 1988 until the senator’s death in 1991.

Grant frequently leads community conversations around critical issues such as public school reform, civic design, the ongoing sustainability of anchor institutions, domestic violence, riverfront development and various socio-economic concerns. He also serves extensively on the boards of local nonprofit and national sector organizations, including the Center for Effective Philanthropy, which he chairs. He has also served on the boards of Grantmakers Evaluation Network, Pennsylvania Partnership for Children, and the National Children’s Book and Literacy Alliance.

You can read other conversations with social changemakers in the Social Velocity interview series here.

Nell: You have written on the Heinz blog and elsewhere about the importance of philanthropists speaking out against government policies or decisions that are at odds with their work. However, philanthropy is often hesitant, because of both real and perceived limitations, to become too political. What do you think philanthropists, and the nonprofits they fund, can and should do to speak out against political decisions that are at odds with their missions?

Grant: This question makes my brain hurt. I mean, seriously, we live in a time when everything is labeled as political—affirming the science of climate change, standing up for equity, denouncing racism, defending basic math, you name it. A cultural institution we support recently faced criticism from its own docents for posting an inclusion policy they condemned as “political” because it welcomed all visitors, including immigrants. When your core values are suddenly defined as political, what are you going to do—run from your ideals and hope they somehow survive in the shadows? Or are you going to step into the light and advocate for what you say you believe in?

We have to remember this is about policy and the marketplace of ideas and values, not politics. Philanthropy shouldn’t be about trying to influence who wins an election, and private philanthropy can’t lobby on specific legislation. But foundations of all ideological bents have long understood that on some issues, the only way to bring about meaningful change is to persuade the broader culture that it matters and then translate that into supportive policy. In telling the story of its own impact, philanthropy loves to point at successes like universal vaccinations. But now even vaccines are under attack, along with the science informing them. So what should philanthropy do—stand mutely by and pretend it doesn’t have a point of view on saving lives and preventing suffering, or for that matter on the importance of science as a basic decision-making tool for public policy? You can’t win the battle of ideas by hiding.

We have to speak honestly about the perils of policy rooted in magical thinking and so-called alternative facts. That sort of candor is described as courageous in the foundation world, but really what’s brave about speaking the truth when everything you believe in and work for is under attack? We are witnessing a jaw-dropping assault on fundamental institutions of democracy—the press, the judiciary, free speech, basic notions of civility, even the right of the people to assemble. The American system of philanthropy, which hinges on an engaged civic sector, simply cannot work in the context of dysfunctional or broken democracy. Speaking out against these attacks is basic self-defense for the sector but it’s so much more than that. It’s really a defense of the democratic freedoms and governance that make philanthropy matter in the first place. And if we’re not willing to fight for that, then what in the world do we stand for?

Nell: Some argue that philanthropy is at least partly to blame for the divides currently impacting our country because philanthropy is a result of wealth inequality and sometimes perpetuates inequity. What are your thoughts on that?

Grant: Martin Luther King commented on this far more eloquently than I ever can, and recently Darren Walker at The Ford Foundation has done some excellent writing on it. There’s not much more I can add. No question, the ideal goal for philanthropy should be to help create a society where it is no longer necessary. And it’s fair to ask whether a by-product of massive wealth disparity can really address the social inequity that in some ways helps drive it.

At the same time, to dismiss philanthropy as merely a symptom of inequality is to understate both the enormous value of enterprise creation and the positive social impulse that drives philanthropy at its best. Foundations and other forms of philanthropy may be imperfect expressions of an imperfect system but they also can do tremendous good, especially at a time when government is paralyzed and the private sector has become so removed from social and community concerns.
So much of the social good that philanthropy has helped support—from sensible thinking on climate change to marriage equality—is being unraveled right now, and that’s terrifying. But if nothing else maybe it’s giving those of us who are privileged to work in this field a renewed appreciation for the value philanthropy really can contribute and a heightened sense of responsibility and urgency to actually deliver it.

Nell: What role do facts play? We are arguably living in a “post-truth” world where opposing sides can no longer agree on a common set of facts. How can the social change sector hope to create change when there is no longer agreement about what the current reality is? What do we do about that?

Grant: I’d joke that the Bowling Green massacre changed my thinking on this, but I worry folks might miss the sarcasm. This is a scary time. We have leaders just making stuff up and hiding behind disinformation machines posing as media. It’s bizarre but that’s the landscape now, and I hope the social sector wakes up to it in two critical ways.

First, we need to stop confusing facts with persuasion. Our sector loves to throw data at people and preach from what we assume is our scientific and moral high ground. But neuroscience has taught us that people rely more on their emotions and “gut feelings” to make important decisions than they do on reason. It turns out we are more likely to be persuaded by a good story than by a good fact. I’ve long thought our sector could do better at simply bearing witness, at telling stories that help people see themselves in the lives and suffering of others. That’s the most basic work of philanthropy, this process of sowing compassion. In a time of unprecedented division when humanity’s notions of who we mean by “us” are being challenged as never before, philanthropy needs to get back to that.

But, second, at the same time we need to fight like hell against the normalization of “alternative facts.” Data may be a weak tool to shift closely held beliefs but over time it can move civilizations. Think about how dismissive the medical establishment was initially of the idea that germs cause disease and how conscious our society is today of antibacterial everything. Truth wins in the end, but we need to remember the end can take a long, long time to arrive. Give up on science and suddenly you end up in the Dark Ages for a millennium. For philanthropy that means continuing to invest in science and research, but it also means investing in the institutions and processes that help facts become more broadly known, including journalism. And it means not backing off when propagandists try to peddle their lies as just an alternate reality. We need to have the courage to call that nonsense out.

Nell: For many in the social change sector these are dark days. What gives you hope?

Grant: Oh wow, I could so easily sink sanctimonious piety here, which is not what any of us needs right now. The truth is, there are plenty of days I despair over what’s happening, and it’s important to acknowledge that. If you work in the social sector and these aren’t dark days for you, then you seriously aren’t paying attention.

For me, though, hope is connected with purpose. If we only feel hope when it seems like we’re making progress or winning, then that’s not really hope, is it? It’s expectation. And there is absolutely nothing about the goals we are fighting for that can be taken for granted. Every single step of humanity’s journey toward justice and sustainable community has been marked by hardship and reversals, and often outright losses, so who are we in this era to only feel hope if the circumstances are right?

If it were up to me, Rebecca Solnit’s “Hope in the Dark” would be required reading for us all right now, because the only way any of this gets better is if people of good intent keep pushing, even when we don’t know what the outcome will be, even when it feels like we’ve lost on something irredeemable, like the climate. We have to be humble enough to own that none of us ever really “controls” anything, but over time somehow progress still happens as long as we keep at it.

The other day the President tried to drag my hometown of Pittsburgh into his myopic decision on the Paris climate accords. I loved how local leaders here and all over the country responded with a collective roar of “no way,” which was not just about saying “that isn’t us” but went beyond that to “we’ll do it ourselves.” That’s what gives me hope—all the people I get to work with every day who greet the darkness by bringing the light of their own creativity and unrelenting determination.

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Nonprofit Capacity Building Works: An Interview with Kathy Reich

In this month’s Social Velocity interview, I’m talking with Kathy Reich. Kathy leads the Ford Foundation’s BUILD initiative both in the United States and in 10 global regions. BUILD is an essential part of the foundation’s strategy to reduce inequality, a strategy arising from the conviction that healthy civil society organizations are essential to driving and sustaining just, inclusive societies. To that end, Kathy guides Ford’s efforts to implement sector-leading approaches to supporting the vitality and effectiveness of institutions and networks that serve as pillars of broader social movements.

Before joining Ford in 2016, Kathy was director of organizational effectiveness and philanthropy at the David and Lucile Packard Foundation, where she led a cross-cutting program to help grantees around the world strengthen their strategy, leadership and impact.

Kathy has long been a friend of the Social Velocity blog. You can read my interview with Kathy when she was at the Packard Foundation here and a guest blog post she wrote for the blog here.

You can also read interviews with other social changemakers here.

Nell:  You recently moved from the Packard Foundation to the Ford Foundation in order to launch their BUILD initiative, which is all about strengthening organizations. What are your goals with this new initiative and what successes have you seen so far? And what are you finding in terms of the areas where nonprofits need most help?

Kathy: The Ford Foundation has two big goals in mind for BUILD. First, we want to foster a measurably stronger, more powerful set of civil society organizations and networks working to address inequality around the world. Second, we aim to build understanding within the Ford Foundation, and ultimately throughout the field of philanthropy, about how strengthening key institutions can advance social justice.

The foundation has committed $1 billion over five years to BUILD because we believe that the fight against inequality needs resilient, durable, and fortified civil society institutions. Individuals and ideas also are critical, but the key role of institutions as drivers of sustained social change is a core, and sometimes overlooked, aspect of social justice work.

Each of the BUILD grantee organizations and networks will receive five years of support, at levels higher than what they have historically received from the Ford Foundation. Much of this support will be as flexible as we can legally make it; most grants will include generous general support. The remainder of each BUILD grant will provide support for nonprofit organizations and networks to strengthen their strategies, leadership, management, and finances. Each BUILD grantee will develop and then implement its own institutional strengthening plan. Although Ford Foundation staff will consult on drafts of these plans, the grantee will be “in the driver’s seat” in determining their institutional strengthening priorities and how best to address them.

So far we’ve made about 90 BUILD grants, and honestly it’s a bit early to say how well they are working. We do know where organizations are planning to spend the money. The vast majority of BUILD grantees, 79 percent, are choosing to strengthen their core operations, investing in areas such as financial management, fundraising, communications, evaluation, and HR. About two-thirds also are investing in strengthening capacities critical to social justice work, such as legal, research, network building, and advocacy. Close to half are investing in strengthening their strategic clarity and coherence, 36 percent are investing in leadership development and governance, and 32 percent are choosing to deepen their organizational commitments to diversity, equity, and inclusion.

It’s important to note that BUILD is not the Ford Foundation’s only investment in strengthening nonprofit institutions. BUILD is part of FordForward, the Ford Foundation’s multi-pronged effort to make philanthropy part of the solution to inequality in a deep and lasting sense. In addition to BUILD, two other aspects of FordForward focus on strengthening nonprofits. The foundation is giving more general support grants across all program areas, with a goal of making general support our default type of grant whenever possible. We also are increasing overhead rates on project grants to a minimum of 20 percent, to more adequately address the indirect costs of executing projects and programs.

Nell: This is a pretty innovative approach to capacity building, how do you plan to share what you learn with other funders and with the sector overall?

Kathy: We’re planning a robust evaluation and learning strategy, although we’re really just getting started. Our hope is to share some early findings by year’s end. We’ll be focusing on three sets of key questions throughout the five-year initiative:

  • Do BUILD grants work? Do the organizations and networks that receive this funding become stronger and more durable over time? And if so, what if any impact does that have on the organization’s effectiveness?
  • If the BUILD approach works, what about it works? Is it the general operating support, or a specific kind of organizational strengthening, or something else?
  • Have we changed the way we do business at Ford, moving away from one-year project grants in favor of larger, more flexible grants?

Along with our evaluation and learning plan, we’re also developing a communications strategy to share what we learn with the field and engage in dialogue with others. We’ll be publishing evaluation results, speaking at conferences, and making active use of social media.

Nell: Both the Ford Foundation and the Packard Foundation are rare funders in that they are very committed to creating strong nonprofit organizations through heavy investment in capacity building. Do you think philanthropic and government funders are starting to follow your lead? Or what will it take to make that happen?

Kathy: Well, we certainly hope they are! It’s important to acknowledge that capacity building grantmaking is not new; in launching BUILD, we’ve learned from and appreciate the work of leaders in this field like the David and Lucile Packard Foundation, as well as the William and Flora Hewlett Foundation and the Evelyn and Walter Haas Jr. Foundation.

Over time, we hope that the ranks of capacity building funders will grow. We hope that BUILD will influence other donors by contributing to the evidence base that nonprofit capacity building works—that stronger, more durable, and more resilient organizations and networks are more effective at achieving their missions.

We also hope to contribute to the evidence base about what kinds of capacity building work best for organizations and networks of different types and sizes, working on different issues in diverse geographies. That’s a tall order, but one of the great things about being a global funder and being able to invest significant resources in BUILD is that we’re able to try this grantmaking approach with a broad range of institutions.

Nell: The Ford Foundation made a very public move two years ago to focus their efforts on fighting inequality. But that goal has arguably become harder given the political winds. How does a foundation like Ford navigate achievement of their desired impact in a potentially more difficult external environment?

Kathy: The Ford Foundation has worked in the U.S. and around the world for more than 70 years, and we’ve seen a lot of upheaval during that time. We’re acutely aware of the challenges facing our work, but we’re moving ahead with optimism and with what my boss Darren Walker calls “radical hope.”

BUILD is a big part of that hope. I believe strongly that in uncertain times, a BUILD approach to grantmaking is one of the smartest choices a foundation can make. By giving our grantees multi-year general operating support, we are giving them the resources and the flexibility to pivot their work quickly in the face of new realities. By also giving them thoughtful and flexible institutional strengthening support, we are enabling them to invest in their own leadership, strategy, management and operations at a time when they have to be at the top of their games.

Photo Credit: Ford Foundation

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10 Great Social Innovation Reads: Oct 2016

social change readingOctober was a bit of a whirlwind in the world of social change. Continued concerns that philanthropy is not positioned to truly impact wealth inequality, a confusing pivot by Charity Navigator in the Overhead Myth movement, some case studies of networked approaches to social change, and a great blog series on nonprofit financial health all made for some interesting reads.

Below is my pick of the top 10 social change reads in October. But, please add what I missed in the comments.

And if you want a longer list, follow me on Twitter @nedgington. You can also read past 10 Great Reads lists here.

  1. There seems to be a growing discussion around whether philanthropy, which results from wealth inequality, can actually be effective at remedying that inequality. Writing on the openDemocracy blog, Michael Edwards takes the Ford Foundation and other foundations working on wealth inequality to task for not seeking to reform the underlying systems that feed that inequality. As he puts it, “Imagine what would happen if we re-configured the supply of money for social change…It would mean the wholesale transformation of institutional philanthropy, since for Ford and others like it an assault on privilege is essentially an assault upon themselves.” And in an interesting and related development, this month head of the Ford Foundation Darren Walker joined the corporate board of Pepsico, which some argue contributes to the obesity epidemic and ultimately economic inequality. But David Callahan argues that Walker could serve as a positive force to push Pepsico to “do better.”

  2. For only the second time in its 26 years The Chronicle of Philanthropy‘s annual Philanthropy 400 list ranks a nonprofit other than the United Way Worldwide as the biggest fundraiser. This year Fidelity Charitable, which houses donor advised funds, took the #1 spot. And some think this is a bellwether for philanthropy. But Jim Schaffer has some issues with the list and how it ignores the deeper complexities of philanthropy.

  3. If you are looking for data about where the social sector is going, this month provided lots of it. From Fidelity Charitable’s report on the future of philanthropy, to a new study from the Alliance for Nonprofit Management on nonprofit board chairs, to new data from the Urban Institute on the nonprofit workforce.

  4. In a head-scratching move, Charity Navigator, one of the proponents of the campaign to overcome the Overhead Myth wrote a blog post arguing that nonprofits that keep their overhead percentage to 15% or less are “excellent.” Many, took them to task.

  5. On the eve of the presidential election, Kiersten Marek from Inside Philanthropy offers some predictions about how philanthropy focused on women’s and children’s issues might fare under a Clinton presidency.

  6. In what has become an incessant drumbeat, ProPublica again criticizes the American Red Cross, this time for a botched response to the Louisiana flooding this summer.

  7. As I mentioned earlier, I’m a huge fan of Twitter, but it’s struggling. NPR tech writer Laura Sydell wonders if becoming a nonprofit might be the answer for this social network that is playing a growing role in social change efforts.

  8. Using networks for social change is a hot topic lately. Talia Milgrom-Elcott provides a case study for a networked approach to growing STEM education, and R. Patrick Bixler, Clare Zutz, and Ashley Lovell provide a case study on using networks for regional conservation. But Jake Hayman, writing in Forbes argues that philanthropy actually dis-incentivizes nonprofits to pursue a networked approach.

  9. In a not-to-be-missed blog series, the Nonprofit Finance Fund provides a great tutorial on “Best Practices for Nonprofit Financial Health” (part one, part two, and part three).

  10. And if you wonder why you are here and what your role is, look no further than Steven Pressfield who writes: “I believe that life exists on at least two levels. The lower level is the material plane…The higher level is the home of…the Muse. The higher level is a lot smarter than the lower level. The higher level understands in a far, far deeper way. It understands who we are. It understands why we are here. It understands the past and the future and our roles within both. My job, as I understand it, is to make myself open to this higher level. My job is to keep myself alert and receptive. My job is to be ready, in the fullest professional sense, when the alarm bell goes off and I have to slide down the pole and jump into the fire engine.”

Photo Credit: Peter Griffin

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10 Great Social Innovation Reads: Jan 2016

Korean_War_Veterans_Memorial_as_seen_during_the_January_2016_BlizzardFrom an historic blizzard that blanketed the country, to tackling poverty, to the leadership of Black Lives Matter, to technology in the new year, to using social media to stop ISIS, to advice for Charity Navigator, January was an interesting month in the world of social change.

Here is my pick of the 10 best reads in January. If you want a longer list, follow me on Twitter @nedgington. And to see past month’s 10 Great Reads lists go here.

  1. Winter storm Jonas dumped several feet of snow across the country, but also offered a couple of interesting lessons in social change. First, the sheer amount of snow piled up on east coast urban streets provided a glimpse into better urban design. And after the blizzard hit Washington, DC it seems only female senators were brave enough to come to work. Among them, Senator Lisa Murkowski wondered: “Perhaps it speaks to the hardiness of women…that put on your boots and put your hat on and get out and slog through the mess that’s out there.”

  2. Writing in the Nonprofit Quarterly, Tom Klaus took issue with those who criticize the Ferguson and Black Lives Matters movements as being “leaderless.” Instead, he argued that they demonstrate a more effective “shared leadership” model: “Shared leadership…means that multiple members of a team or group step up to the responsibility and task of leadership, often as an adaptive response to changing circumstances. Multiple members may emerge to lead at the same time, or it may be serial as multiple leaders emerge over the life of a team or group.” And The Chronicle of Philanthropy profiled three of the leaders of the Black Lives Matter movement.

  3. One of my favorite bloggers, David Henderson, has made a new year’s resolution to write more often. Let’s hope he keeps it up because he offered us two great ones this month. First, he wrote a scathing critique of the nonprofit and philanthropy sectors for not standing up against presidential candidate Donald Trump’s hate-filled ideology. And then he took it further in a later post arguing that the philanthropic sector must get more political: “It seems a strange consensus that philanthropy and politics do not mix. Yet it is our politics, and more specifically our collective values, that creates the maladies we aim to address. Martin Luther King was a civil rights pioneer not for creating a nonprofit that provided social services to help African Americans live a little better, but by challenging the laws and social values that subjugated a significant portion of our community. Social interventions like homeless shelters, food pantries, and tutoring programs are fundamentally responses to injustice. While these programs are wrapped in apolitical blankets, they are plainly and intuitively critiques of the system we live in.”

  4. And speaking of critiques, columnist Tom Watson wrote a sharp commentary on American philanthropy arguing that it is going the way of American politics — moving from democracy towards plutocracy: “The disparity between democratic philanthropy and its plutocratic cousin is nowhere more apparent than in the importance placed on the Facebook co-founder’s commitment to giving away much of his vast personal fortune compared with the potential of the largest digital social network in the nation. Mr. Zuckerberg’s billions may create major causes and eventually steer public policy, but many nonprofits will struggle to find in their budgets the money required to purchase desperately needed social-media eyeballs from his advertising department. If there’s a better example of the power gulf in American philanthropy, I’m not sure what it is.”

  5. And other critiques of philanthropy in January went even further, with some arguing that modern American philanthropy attempting to address growing wealth inequality (illustrated by a new Oxfam infographic “An Economy for the 1%“) is a paradox because philanthropy itself emerged from the wealth excesses of capitalism.  A new book by Erica Kohl-Arenas argued that philanthropic interventions to solve poverty have been flawed because they don’t address the structural issues causing the poverty in the first place. And her argument was extended when she wrote about her view of a January 7th public event at the Ford Foundation where Darren Walker (who recently announced a new foundation focus on overcoming poverty) and Rob Reich discussed these issues.

  6. Caroline Fiennes argued that nonprofits should not try to “prove their impact,” since proof of impact is impossible, but rather use evaluation to gain knowledge that can help “maximize our chances of making a significant impact.” Patrick Lester, writing in the Stanford Social Innovation Review, offered a similar caution about outcomes, but this time to the Obama administration: “A dose of…realism, combined with a greater reliance on evidence and a willingness to learn from the past, could transform the administration’s focus on outcomes into an important step forward. By openly acknowledging the challenges and dangers, recognizing the difference between mere outcomes and true impact, and demonstrating how this time we will do better, the administration could show that what it’s really calling for is not just an outcomes mindset, but an Outcomes Mindset 2.0.”

  7. Speaking of proving results, Charity Navigator’s new leader, former Microsoft exec Michael Thatcher, and the board that hired him came under attack in January for not moving quickly enough away from rating nonprofits on financials and towards rating them based on results.   But Doug White, writing an opinion piece in The Chronicle of Philanthropy and who created the beginning data behind Charity Navigator many years ago, took it even further took it even further: “Charity Navigator is far worse than nothing. The best that could happen is for the group to sink into oblivion, with no charities, no news outlets, and no donors giving it any thought. Or the group could take serious steps to grow up, humbly taking the time and effort to truly try to understand the charitable world.”

  8. Wanting to get further into the social change game, Facebook COO Sheryl Sandberg announced a new effort to use Facebook “Likes” to stop ISIS recruitment efforts on social media. It will be interesting to see how effective this slacktivism effort becomes at creating real change.

  9. Kivi Leroux Miller released her annual Nonprofit Communication Trends Report, including lots of data about how and where nonprofits are marketing. And while she found that YouTube is currently the #3 social network for nonprofits, that may change since YouTube just announced new “donation cards” that allow donors to give while watching a video.

  10. And finally, in January we lost David Bowie. But Callie Oettinger urged us not to be sad, but rather, inspired: “I [am] comforted in thinking of Bowie…on Mars, mixing it up with other artists…a place where the greats go to keep an eye on the rest of us and send down jolts of inspiration from above.” Yes.

Photo Credit: Northside777

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10 Great Social Innovation Reads: November 2015

Reading on the StairsLet’s be honest. November was a really tough month. The terrorist attacks in Paris (and other attacks in Mali, Beirut and elsewhere) put the world on edge. And the anti-refugee rhetoric that followed was incredibly disheartening. Finally, the loss of tenacious nonprofit investigative journalist Rick Cohen made for a difficult November, a month that is typically focused on gratitude and giving back.

But there is always hope. Some foundations are taking an innovative approach to failing cities and to supporting networks, students are rising up for equality, and the Overhead Myth was dealt another blow.

Below are my selections of the top 10 reads in the world of social change in November, but please add to the list in the comments. And if you want a longer list of great reads, follow me on Twitter, Facebook, LinkedIn or Google+.

And you can see past months’ 10 Great Reads here.

  1. The horrific terrorist attacks in Paris created an ugly backlash in America against Syrian refugees. There were worries about the attacks causing a slowdown in fundraising for Syrian refugees and parallels drawn to the exclusion of Jewish refugees in World War II. But rising above all of this Rick Cohen urged nonprofits to take their rightful place as defenders of the downtrodden and speak up against anti-refugee policies. As he put it: “If the U.S. slams the door on desperate Syrian refugees, the nonprofit sector that claims to represent openness, inclusion, and democracy will find its credibility seriously damaged should it fail to do whatever it can to confront the politicians using fear and hatred as a tool for political advancement.” Amen!

  2. Adding insult to injury, that beautiful piece was Rick Cohen’s last published article because he died in November, creating an enormous loss for the sector. The Nonprofit Quarterly created a lovely tribute to their colleague by culling his best pieces, and they have big plans for carrying on Rick’s legacy.

  3. There is hope amid the fear and turmoil of our times. Susan Ragusa from Inside Philanthropy looks to the nonprofit sector to “lead with optimism and champion hope.” Yes.

  4. Perhaps heeding that call, some foundations have stepped up in innovative ways to help struggling American cities. Rockefeller Foundation President Judith Rodin described ways resilient cities can mitigate climate change.

  5. The whip smart David Henderson has created a new tool (currently in beta) for individual donors to track and analyze their favorite nonprofits.

  6. We are far from completely overcoming the Nonprofit Overhead Myth, but there was a big step forward in November when the Los Angeles County Board of Supervisors passed a motion to pay the full costs for nonprofit services. As Tim Delaney, president of the National Council of Nonprofits explained: “Los Angeles County has now raised the bar for collaboration between governments and nonprofits by stating its firm stance that its nonprofit partners must be paid the full cost to deliver services that the County contracts with them to provide. We urge states, counties, and localities across the country to follow its lead.” Amen!

  7. Student protests against racial inequality on college campuses across the country reached a fever pitch in November with some wins at the University of Missouri. It will be interesting to see how student demands and this movement evolve.

  8. Steve MacLaughlin from Blackbaud put together an interesting Slideshare on 50 Fascinating Nonprofit Stats that became so popular that Blackbaud created a whole website around it.

  9. Many nonprofits made preparations for today’s Giving Tuesday campaign (perhaps using the nifty interactive data dashboard that allows you to slice and dice online giving data, or some new Facebook giving tools). But some nonprofits, feeling that it’s just a gimmick, opted out of participating in Giving Tuesday at all.

  10. The Ford Foundation announced that a big part of their new direction will include further investing in networks and institutions. As Darren Walker described: “Networks are fulcrums for creativity and dissent, beacons of stability, scaffolding for aspiring change makers, and connectors for social innovators.” And to help create more effective social change networks, network entrepreneur theorists, David Ehrlichman, David Sawyer, and Jane Wei-Skillern  offered 5 Steps to Building an Effective Impact Network.

Photo Credit: Jens Schott Knudsen

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10 Great Social Innovation Reads: July & Aug 2015

social innovationSince I was out of the office for a good chunk of July and August, I’ve decided to combine both months into one 10 Great Reads list. But let me be clear, there was still lots going on, I just happened to be (somewhat blissfully) missing it.

From philanthropy’s role in inequality, to climate change preparation, to what the Greek financial crisis teaches us about networks, to civic engagement, to digital’s effect on fundraising, to social impact bond results and pizza on the family farm, they were a great couple of months.

In my (limited) view, below are my 10 favorite reads from the past two months. But because I know I missed things, please add to the list in the comments.

To see a longer list, follow me on Twitter, Facebook, Google+ or LinkedIn. And you can see past months’ 10 Great Reads lists here.

  1. President of the Ford Foundation Darren Walker made a lot of news this summer, from his announcement of Ford’s shift to focusing on inequality and unrestricted grants, to his July release of a thought-provoking essay in which he took foundations to task. He argued that foundations have been “cutting the pie into smaller slices,” and he instead encouraged funders to embrace “a new era of capacity building investment.” Because, as he put it, “What civil society needs most, and now more than ever, are resilient, durable, fortified institutions that can take on inequality, fight poverty, advance justice and promote dignity and democracy.” Amen! Ford’s move kicked off an excellent Inequality and Philanthropy forum on the HistPhil blog. And Inside Philanthropy‘s David Callahan argued that Walker’s message is about significant change, which may be tough for the sector to hear.

  2. In a fascinating (and rather depressing) article, Eric Holthaus from Slate talks to climate scientists about how they are personally responding to the climate crisis, particularly how they have “factored in humanity’s lack of progress on climate change in [their] families’ future plans.” Yikes.

  3. Reserve funds are an incredibly critical (but often misunderstood) aspect of nonprofit financial strategy. But as she always does, Kate Barr from the Nonprofits Assistance Fund provides a clear roadmap to understanding.

  4. Paul Vandeventer uses the summer’s Greek Euro crisis to illustrate when networks (of which the Eurozone is an excellent example) thrive and when they fail. As he puts it, “Ignoring or giving short shrift to…the fundamental principles by which networks operate wastes precious reserves of time, money, and goodwill, and imperils all the hopeful good that organizations, institutions, and countries set out to achieve when they start down the path of networked action.”

  5. Late July saw a fascinating gathering of social changemakers around civic engagement, the “Breaking Through” conference, hosted by the Knight Foundation. Keynoter Peter Levine argued “This is the year that we can take back American politics. It’s up to us.” It was a great lineup of speakers and sessions about getting people engaged again. You can see video from the conference here.

  6. Is digital becoming a gamechanger in fundraising? Some think so. And in August Facebook launched a new Donate button, but is it really all that helpful to nonprofits? Some argue that Facebook is critical. Others think the Donate button is a fail.

  7. August of 2014 saw the record-breaking ALS Ice Bucket fundraising challenge. Many (including me) were skeptical of the campaign, but it turns out that last summer’s financial windfall helped scientists make a breakthrough in research to fight the disease.

  8. This August was the 10 year anniversary of hurricane Katrina. There were many great articles about where New Orleans has been and is now. But my two favorite were Greater New Orleans Foundation President Albert Ruesga’s Ten-Year Perspective on the philanthropic response, and Andrea Gabor’s New York Times article, The Myth of the New Orleans School Makeover.

  9. The first results came in from the New York state social impact bond experiment, and they weren’t great. Goldman Sachs invested in a Rikers Island program that attempted to reduce recidivism among teenagers.The program failed to meet its goals and Goldman lost money. But New York is not giving up, as first Deputy Mayor Tony Shorris said, “This social impact bond allowed the city to test a notion that did not prove successful within the climate we inherited on Rikers.  We will continue to use innovative tools on Rikers and elsewhere.”

  10. I’m always a fan of examples of innovation. NPR provided a glimpse of how family farms are using pizza to reinvent their business model.

Photo Credit: Anne Adrian

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10 Great Social Innovation Reads: June 2015

social innovationJune was an amazing month in the world of social change.

Most notably, the long fight for marriage equality was won with the Supreme Court’s ruling in Obergefell v. Hodges. It is moments like these where the long, arduous road towards social change makes sense. But that wasn’t all that was going on in the busy month of June. From “new” tech philanthropy, to the orthodoxies of philanthropy, to the oversight of philanthropy, it was all up for debate. Add to that some fascinating new ideas for museums, new data on how Millennials get their news, and a fabulous new blog about the history of philanthropy. It was a whirlwind.

Below are my picks on the 10 best reads in the world of social change in June. But let me know what I missed. And if you want a longer list, follow me on Twitter, LinkedIn, Facebook or Google+.

And if you want to see past 10 Great Reads lists go here.

  1. The biggest news by far in June was the Supreme Court’s 5-4 ruling in Obergefell v. Hodges making gay marriage legal. In the ruling opinion Justice Kennedy writes: “As some of the petitioners in these cases demonstrate, marriage embodies a love that may endure even past death…Their hope is not to be condemned to live in loneliness, excluded from one of civilization’s oldest institutions. They ask for equal dignity in the eyes of the law. The Constitution grants them that right.” While this is a huge win for equality, I think the two really interesting parts of the story are 1) how relatively quickly gay marriage went from banned to law and 2) the various actors that made that social change happen. Some argue that Andrew Sullivan’s 1989 landmark essay in New Republic started the intellectual case for gay marriage. This New York Times interactive map shows how gay marriage went from banned to legalized state by state over time. And Evan Wolfson, founder of Freedom to Marry, describes the decades long struggle of nonprofit reformers and their donors, including the Haas Fund in San Francisco, to make marriage equality happen.
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  3. A new blog, the HistPhil blog, launched in June to much acclaim. There is an enormous need for a historical perspective as we work to make nonprofits and the philanthropy that funds them more effective. HistPhil has already begun to provide that in spades with excellent posts on the Supreme Court ruling, among many other topics you will see below.
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  5. Sean Parker, co-founder of Napster and founding president of Facebook, launched a new foundation and wrote a controversial piece in the Wall Street Journal about his “new” vision for philanthropy.  Some found his ideas full of hubris, while others found him to be “an articulate evangelist for tech philanthropy.
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  7. And if that wasn’t enough philanthropic controversy for you, there were two other debates waging in June. First was the response to David Callahan’s New York Times piece, “Who Will Watch the Charities?” where he argued that we need greater oversight on nonprofits and their funders. Phil Buchanan of the Center for Effective Philanthropy quickly shot back that while Callahan raised some important questions, he ignored the complexity of the sector and reform efforts already under way. And then the two got into an interesting back and forth. Finally, Callahan wrote a follow up piece for Inside Philanthropy. Good stuff!
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  9. Along the same lines, the other point of debate in June centered around a Stanford Social Innovation Review article where Gabriel Kasper & Jess Ausinheiler attempted to challenge the underlying assumptions in philanthropy.  But now that we have a new expert on the history of philanthropy on the block, Benjamin Soskis from the HistPhil blog gave us a more accurate historical perspective about just what is and isn’t philanthropic orthodoxy.
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  11. Michael O’Hare, professor of public policy at UC Berkeley, wrote a great long form piece in the Democracy Journal arguing that museums could become much more relevant and financially sustainable if, among other things, they began selling their stored artwork. Crazy controversial, but fascinating, ideas.
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  13. Writing in the Stanford Social Innovation Review, Matthew Scharpnick cofounder of Elefint Designs, argued that recent ProPublica investigations of the American Red Cross uncovered our double standard for nonprofits. As he writes: “We are asking organizations to meet competing demands—many of which are at odds with how they are funded. We want nonprofits and NGOs to solve problems as effectively as private-sector organizations, and we want them to do it without any of the advantages and with far more constraints.”
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  15. The Ford Foundation announced a sweeping overhaul in their grantmaking strategy. They will now focus solely on financial, gender, racial and other inequalities, and double their unrestricted giving. Larry Kramer, president of the Hewlett Foundation, described how he is closely watching this historic move. And Brad Smith, president of the Foundation Center, offered a view of how philanthropy has approached inequality.
     

  16. The Hewlett Foundation’s Kelly Born provided some interesting thoughts about what a new Pew Research Center report about how Millennials get their news means for civic engagement.
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  18. And finally, on an inspirational note, Steven Pressfield articulated how “artists,” or really anyone hoping to bring something new into the world (a painting, a novel, a solution to a social challenge), should think:  “As artists, [we believe]…that the universe has a gift that it is holding specifically for us (and specifically for us to pass on to others) and that, if we can learn to make ourselves available to it, it will deliver this gift into our hands.” Yes.

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Convergence Can’t Be Denied

There is a fascinating debate going on in the blogsphere touched off by Michael Edwards, author of  Small Change: Why Business Won’t Save the World and former director of the Ford Foundation’s Governance and Civil Society program.

In essence, the debate is about whether the convergence of the private (business) and the nonprofit sectors is a good or bad thing, whether market forces help or hurt social change efforts.  Michael kicked off the debate on Monday with the first in a week-long series of posts called “Should Civil Society Be Reduced to a Subset of the Market?” In subsequent posts he went on to attack the emerging social capital market among other things.  You can read the whole series here.

Sean Stannard-Stockton, of the Tactical Philanthropy blog, took up the charge and debated many of his points.  Then the two have gone back and forth over the issues. And the debate expanded on the New Philanthropy Capital blog where Tris Lumley wrote that Michael’s argument “boils down to social capital markets vs civil society – impact measurement vs social justice, data vs values, competition vs solidarity. And in this binary view of the world, he threatens to undermine the very real progress that’s being made towards a much more balanced and realistic perspective.”  Michael responds and so does Tris.

It seems to me that fundamental to Michael’s argument is his fear about the growing convergence between the nonprofit, private and government sectors.  That somehow the “market” will sully social change efforts.  Michael argues that civil society and the market are separate entities: “Civil society operates on solidarity and commitment—the willingness to hang in there for the long haul even if results don’t go your way. Markets work on the opposite principle, “exit”: consumers are free to move from one supplier to another whenever and wherever they like. Otherwise the efficiency of resource allocation would suffer.”

But the fact is that social change efforts and the nonprofits leading them have always existed within a market economy. Resource allocation to nonprofits is very much based on a market. If nonprofits can’t convince donors or governments that their work is important or has meaning, they won’t receive resources.  Nonprofit funders are consumers who are “free to move from one supplier to another whenever and wherever they like.”  It would be great if social change efforts could exist in some sort of vacuum where their good work automatically finds resources, but the world doesn’t work like that.  And as resources for social change efforts become increasingly competitive, nonprofits, and for profits working towards social change, have to become smarter about responding to the marketplace. And as the marketplace demands more social change efforts, which is increasingly the case, more resources will be brought to bear on those social change efforts, thus the creation of the social capital market.

The growing convergence among the public, private and nonprofit sectors is a reality we can’t avoid.  Nonprofits have to respond more effectively to market forces, governments have to be more efficient in their allocation and use of resources, and businesses, in order to survive in a marketplace that increasingly values social good, have to understand and respond to the effects their products and services and business model have on the broader society.

Binary systems and separated sectors just don’t exist anymore.  The lines are blurring.  The market is part of the reality of social change efforts.  To deny that is silly.


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