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Grantmakers for Effective Organizations

Is This 21st Century Philanthropy’s Defining Moment?

The Grantmakers for Effective Organizations’ (GEO) conference wrapped up last week leaving participants with much to ponder. (If you missed the three guest posts in the GEO conference blog series, you can still read Kathy Reich’s post, Sean Thomas-Breitfeld’s post, and Pia Infante’s post.)

Over the course of the three days of the conference, I often wondered whether this might be the moment at which our generation of philanthropy recognizes and begins to address the fact that it is born from — and thus must consciously address —  inequity. Philanthropy, by definition, is the result of wealth inequality: those who have achieved enormous wealth decide to give some of that wealth away. While wealth inequality is on the rise, so is racial inequality, according to an update to the landmark 1968 Kerner report, which was released this past February.

This situation is quite similar to that at the end of the 19th century. The Gilded Age brought enormous wealth to “robber barons” like Andrew Carnegie who then gave to philanthropic endeavors, like the Carnegie libraries that cropped up across the country and can still be seen in many cities today. But Carnegie’s philanthropy was sometimes seen as perpetuating a system of wealth inequality, as The Los Angeles Herald warned at the time: “[Andrew Carnegie and other philanthropists] have aimed to betray, and succeeded in betraying, the American laborer. It has been the old and only too true story of the rich becoming richer and the poor poorer, year by year.”

The parallels to today are fascinating. The technology boom brought untold wealth to some (like Bill Gates and Mark Zuckerberg) who have then made large philanthropic investments.  But several speakers at the GEO conference asked philanthropists to take a hard look at how much their philanthropy has truly sought to disrupt the system of inequality from which it was born. As Kathleen Enright, President of GEO, said in her opening keynote remarks: “If you aren’t recognizing the racial disparities in the solution you are attempting to solve, then you aren’t solving it.”

And many other speakers seemed to agree. Nikole Hannah-Jones argued that many philanthropy-backed education reforms of recent years (like charter schools) have focused on fixing surface problems instead of the root cause: “What would our public schools look like if we stopped spending money on trying to make separate equal, and instead integrated our schools?” And Brian Barnes of TandemEd similarly argued that “Philanthropy’s blindspot is that it will only push for change so far as change doesn’t challenge its own interests, positions and reputations.”

In fact many of the speakers and panelists at the GEO conference were asking philanthropists to take a hard look at whether their philanthropy was disrupting or perpetuating the system of inequality from which it was born. Which begs the question: could this be the moment in which philanthropy moves from a band-aid for society’s growing wealth inequality, to a beacon leading society toward a more equitable path?

Certainly GEO is not representative of philanthropy as a whole. By definition GEO members are philanthropists who are seeking to do more with their philanthropy — they are striving to become more “effective” philanthropists. But perhaps this group of philanthropic leaders can start to move philanthropy to become more — to truly remedy the disparities that caused its birth in the first place. That would be transformative.

Photo Credit: Puck magazine cartoon of Andrew Carnegie’s philanthropy by Louis Dalrymple, 1903

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GEO Guest Post: A Bold Vision for Philanthropy in 2038

Note: As I mentioned last week, I am at the Grantmakers for Effective Organization’s (GEO) conference this week curating a group of fantastic bloggers. First up is Kathy Reich. Kathy directs the BUILD initiative at the Ford Foundation and is vice-chair of the GEO board of directors. Below is her post. And you can follow the conference via Twitter #2018GEO.

GEO turns 20 this year, and it’s come a long way since 12 people decided they needed a space for grantmakers who geek out on the art and science of their trade.

Today more than 600 foundations belong to GEO, and 950 people have gathered this week in San Francisco for the group’s biannual conference. Thanks in part to GEO’s tireless efforts, practices that once were outside the mainstream of organized philanthropy — general operating support, evaluation for improvement, funder collaboration, use of grantee feedback, and investments in nonprofit capacity building — are now widely recognized as essential in our field.

And yet, the mood doesn’t exactly feel celebratory. GEO isn’t commemorating its birthday by kicking off its shoes and dancing on the tables. (Or at least, not yet—I’m writing this before the opening reception).

Instead, the organization and its members are having one of those reflective birthdays. You know, the kind where you assess whether you’re living up to your values and maximizing your potential. GEO started off the conference by challenging all of us to craft our own visions for the philanthropy field in 2038. (Of course, since we’re in 2018, we’re supposed to tweet them #GEOMagic.)

For GEO, that means adding a commitment to racial equity to their short list of practices that are essential to grantmaker effectiveness. In other words, GEO has come to believe that racial equity is not just something that is nice for foundations to embrace, but something that they must embrace to be truly effective in their work. GEO envisions a sector where foundations lead the way in fostering racial equity in their workplaces, as well as in their funding strategies.

That’s a big step for GEO, and it’s not without controversy. But as GEO’s longtime CEO Kathleen Enright explained in the opening plenary:

“Our sector is dedicated to work that improves lives and strengthens communities. We try to do this based on evidence, data, and facts. And on one point, the data is crystal clear: in just about any community in the United States, and across nearly every issue—from economic opportunity, to education, to health—the most durable predictor of outcomes is race. We cannot expect to see the results we want to see on social challenges without taking into account the profound and pervasive influence of racial inequality in our nation.”

Enright pointed out that nearly two thirds of GEO members already consider racial equity either essential or central to their missions. And she offered powerful examples of how foundations like the Missouri Health Foundation have committed to racial equity in their work.

A commitment to racial equity is now at the center of GEO’s 2038 vision. That vision includes other transformative practices as well. Pia Infante of the Whitman Institute, Brian Barnes of Tandem ED, and I fleshed out a vision for a philanthropic sector that has transformed its approach to social and environmental challenges. In our 2038 vision, philanthropy has embraced:

Courage, by supporting new, non-traditional, and bold leaders, organizations, networks and ideas.

Inclusion, by actively engaging people of color, low-income people, and others least heard in our society as we develop grantmaking strategies and make our funding decisions.

Complexity, by investing in multiple players for the long-term rather than focusing on short-term, linear outcomes.

Learning, by using data to assess progress, challenge our own assumptions, and improve our work as well as the work of our partners.

Collaboration, by working in partnership, and on an equal playing field, with other funders as well as with communities, rather than insisting that “if you’ve seen one foundation, you’ve seen one foundation.”

Flexibility, by making multi-year, general operating support and nonprofit capacity building the norm rather than the exception.

Ambition, by focusing on systems change at the community, regional, national or global level.

“Progress in the field begins with change inside foundations,” Enright said today. “And every single improvement starts with an act of individual courage and leadership.” Over the next three days, 950 people at the GEO conference will listen, learn, and hopefully commit to individual acts of courage that together will advance a bolder vision of philanthropy.

It’ll be hard work. But I anticipate a little celebration will creep in as well. And hopefully, a slice of birthday cake.

Photo Credit: Ford Foundation 

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Philanthropy in Troubled Times: Blogging the 2018 GEO Conference

Next week, as part of the 2018 Grantmakers for Effective Organizations (GEO) Conference, I’m excited to host some exceptional guest bloggers here on the blog. GEO’s biennial conference is where the most engaged philanthropists gather to talk about how they can more effectively support nonprofit leaders. GEO has asked me to host a blog series about the conference this year (as I did at the 2016 GEO Conference), and I was more than happy to oblige.

I’m particularly interested this year to see how the GEO Conference plays out amid these troubling times. Certainly the world is a very different place than it was at GEO’s last conference, and this gathering of the most engaged and thoughtful philanthropists could be, I hope, an opportunity for philanthropy to find a way to lead in a time that is arguably dismantling the progressive causes many of these philanthropists have been championing for decades. Indeed, leading philanthropic leaders like Grant Oliphant of the Heinz Endowments has argued that philanthropy “can’t win the battle of ideas by hiding,” and Darren Walker of the Ford Foundation has described his hope that philanthropy will “realize the urgency of now.”

The GEO Conference, held this year from Monday, April 30  to Wednesday, May 2 in San Francisco, is a first-in-class display of philanthropists thinking long and hard about their role in social change. Particularly now, when there is a real opportunity for philanthropy to stand up and have a stronger voice about where our country is headed, this conference provides a real opportunity. I’m looking forward to some open, honest and challenging conversations about how philanthropy can and should do more to lead in these challenging times.

I am particularly excited about several of the planned sessions, including “Supporting Advocacy during Turbulent Times,” “Strengthening Nonprofits as a Social Justice Strategy,” “Philanthropy’s Role in Closing the Nonprofit Racial Leadership Gap,” and “Power and the Future of Philanthropy.”

And starting next Tuesday, May 1st you’ll be hearing from this great group of guest bloggers:

Kathy Reich, Director of BUILD at the Ford Foundation  
Kathy guides Ford’’s efforts to implement sector-leading approaches to support the vitality and effectiveness of institutions and networks that serve as pillars of broader social movements. Before joining Ford, Kathy worked for 15 years at the David and Lucile Packard Foundation, most recently as organizational effectiveness and philanthropy director. Prior to that, she was policy director at the Social Policy Action Network, served as a legislative assistant on Capitol Hill, and worked for state and local elected officials in California. Kathy currently serves on the boards of Grantmakers for Effective Organizations and the Peninsula Jewish Community Center, and co-chairs the Fund for Shared Insight. She was named a Schusterman Fellow in 2016. She has also been featured on the Social Velocity blog several times in the past, as an interviewee twice (here and here) and a guest blogger.

 

Sean Thomas-Breitfeld, Co-Director of the Building Movement Project
Prior to joining BMP, Sean spent a decade working in various roles at the Center for Community Change, developing training programs for grassroots leaders, coordinating online and grassroots advocacy efforts, and lobbying on a range of issues, including immigration reform, transportation equity and anti-poverty programs. Before joining the Center, Sean worked as a Policy Analyst at UnidosUS (formerly the National Council of La Raza), where he focused on employment and income security issues. Sean received a Master’s Degree in Public Administration from NYU’s Wagner School, where he now serves as an Adjunct Assistant Professor of Public Service. You can read my past interview with Sean here.

 

Pia Infante, Trustee and Co-Executive Director of The Whitman Institute
Pia speaks and teaches on radically embodied leadership and trust based practice in many settings including Harvard Kennedy School: Center for Public Leadership, Ashoka Future Forum, Opportunity Collaboration, Net Impact, Council on Foundations, Grantmakers for Effective Organizations, International Human Rights Funders Group, and the Skoll World Forum. She also proudly serves as the Board Chair for the Center for Media Justice and is on faculty for the M.A. in Leadership Sustainability at the University of Vermont’s Rubenstein School of Environment and Natural Resources as well as Thousand Currents Academy. She is an I.C.F. certified executive leadership coach and holds an M.A. in Education from the New School for Social Research.

 

After the conference is over I’ll do a wrap-up post that will bring the blog series to a close.  If you plan to be at the GEO Conference, please let me know, I’d love to see you there!

Photo Credits: GEO, Ford Foundation, Building Movement Project, The Whitman Institute

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Investing in Stronger Nonprofits: An Interview with Linda Baker

linda-baker-524x643In this month’s Social Velocity interview, I’m talking with Linda Baker. Linda is the Director of Organizational Effectiveness at the David and Lucile Packard Foundation.

In this role, she leads the Organizational Effectiveness (OE) team as they invest in grantees to build their core strengths and maximize their impact. Through these investments, the OE team aims to build healthier, better connected organizations and networks ready to bring about greater change in the areas the foundation cares most about. The OE team works in collaboration with the four program grantmaking areas of the foundation, and also engages with the broader field on capacity building and good philanthropic practice.

Linda has also served the foundation as program officer in the Local Grantmaking and Children, Families and Communities programs, and as an analyst and associate editor in the Center for the Future of Children.

If you want to read interviews with other social changemakers in the Social Velocity interview series go here.

Nell: You recently took over leadership of the Packard Foundation’s Organizational Effectiveness program. What are your plans for the future of this program? Where do you see opportunities for change or growth in the work Packard does to build stronger nonprofits?

Linda: It is an incredible honor to lead the Organizational Effectiveness (OE) team. I’m proud to be a part of a foundation that actively embraces a commitment to effectiveness by helping our nonprofits partners strengthen their fundamentals so they can better achieve their missions.

The best capacity-building grantmaking happens in open and authentic conversation with nonprofits. At the Packard Foundation, this means that changes in OE funding are driven through continuous listening to our nonprofit colleagues about where they are strong and where they would like to grow – as leaders, organizations, and networks. While many of the funding requests remain similar to the past (like support for strategic planning and fund development planning), a few topics have recently become more prevalent. For example, as nonprofits and leaders focus on movement building and their ability to be flexible and strategic in an ever-changing environment, we are hearing more requests for funding on leadership development and diversity, equity and inclusion. We have also seen an increase in interest in projects that focus on nonprofits better understanding their financial situation and increasing their financial resilience.

I’m also excited about our participation in the Fund for Shared Insight, a funder collaborative that supports nonprofits in seeking systematic and benchmarkable feedback from the people they seek to help. This collaborative believes that foundations will be more effective and make an even bigger difference in the world if we are more open—if we share what we are learning and are open to what others want to share with us, including our nonprofit partners and the people we seek to help. It is early days, but the possibilities are promising.

Nell: The Packard Foundation is way ahead of the pack in terms of actively investing in stronger nonprofit organizations. What do you think holds other foundations back from providing capacity building support (like planning, leadership development, evaluation, etc.)? And what can be done to get more foundations funding in these areas?

Linda: This work is incredibly important. People are the engine of change, and they need appropriate training, tools and support to get their work done. The good news is that momentum seems to be building. Last year we talked with twenty foundations who reached out to us on this work—and we are always happy to provide insight to our peers in this way. I’m also encouraged by the standing-room-only crowds at Grantmakers for Effective Organizations (GEO) conferences, which often focus directly on the importance of capacity building.

An increasing number of our peers have embraced this approach to grantmaking. Both the Hewlett Foundation and the Meyer Foundation have OE programs similar to ours. The Ford Foundation’s BUILD program works to support institutional strengthening in a big way. Many others support the capacity of leaders – we particularly admire the work of the Haas Jr. Fund in this area.

JPMorgan Chase and the Aspen Institute recently issued a report discussing roles and opportunities for business in nonprofit capacity building. And the 2016 GEO publication on capacity building is full of examples of foundations providing capacity building support to nonprofit partners.

For any foundations on the fence, we will soon be releasing our 2016 Grantee Perception Report data that shows that our grantees who receive OE support rate the foundation as more responsive and a better partner. Data from our evaluation last year shows that one to two years after their OE support ended, nearly 80% of grantees reported significant increases in capacity and 90% reported continued investments in capacity building a year after grant completion. We are confident that these investments build lasting change.

Another bright spot is the feedback work of the Fund for Shared Insight that I mentioned earlier, which is investing in stronger nonprofit organizations through experimenting with investments in feedback loops. Shared Insight provides grants to nonprofit organizations to encourage and incorporate feedback from the people we seek to help; understand the connection between feedback and better results; foster more openness between and among foundations and grantees; and share what we learn.

Nell: You have been actively involved in the Real Costs effort to get funders and nonprofits to understand and articulate the full costs (program, operating, working capital, fixed assets, reserves, debt) of the work nonprofits do. How do you see that movement progressing? Are minds changing? Are we, or when will we, reach a critical mass of nonprofits and funders embracing full costs?

Linda: As you and your readers know, this question is fundamentally about the relationship between funders and nonprofits. Nonprofits that have trusting relationships with their funders and an understanding of what it takes to run their organization can talk with funders about what it truly costs to deliver outcomes over the long term. In response, funders with a nuanced understanding of a nonprofit’s financial requirements will be able to structure grants more effectively to achieve those outcomes.

The move for funders to understand the financial resources nonprofits require for impact is gaining steam. I’ve been encouraged by the level of interest and conversation in California alone, and I know conversations are happening nationally too. The Real Cost Project in California is gearing up for the next phase, and we are pleased to be supporting that work and to be thinking about these ideas at the Packard Foundation. I am hopeful that California funders will continue to embrace the conversation and consider how funders can strip away unnecessary processes and promote transparent dialogue about how to best support the work of nonprofits.

One part of the challenge is that we are going up against misguided notions that good nonprofits should not invest in their infrastructure or their people. These ideas are embedded in our culture, and it takes time to change perspectives. If we can get a critical mass of foundations to join the conversation and consider what they can do to improve, and ensure that nonprofits have the tools to understand the financial requirements needed to get to outcomes, that will be progress.

Nell: You and your team at Packard OE have created a great Organizational Effectiveness Knowledge Center website with a deep set of resources for building stronger nonprofit organizations. Foundations are sometimes hesitant to offer resources (beyond money) to nonprofits, but you have made a conscious choice to move in this direction. Why and what could other foundations learn from your experiences here?

Linda: Thank you! We created the Knowledge Center to share our perspective and resources about improving organizational and network effectiveness with the goal of helping nonprofits, our consulting partners, and other funders make their work even stronger. The Knowledge Center is a place for us to share our perspective on a number of topics from network development to leadership and coaching to evaluation, and discuss the latest in the field from conferences and publications.

In addition to providing grantmaking support, we believe that sharing this information will increase our impact on the nonprofit sector and advance the capacity building field. Change does not happen in silos, and we don’t want our nonprofit partners to spend time reinventing the wheel. So, we decided to create a space to exchange what we’re learning and the resources available to help support organizations in this work.

We hope that the Knowledge Center will be a place to exchange learning and reflections, and we encourage users to engage with us by commenting on your experience with these topics or submitting resources that you would like us to consider sharing. And, while you’re there, leave us a comment to let us know what you think of the Knowledge Center and how we can improve.

Photo Credit: David and Lucile Packard Foundation

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Improving Philanthropy: An Interview with Melinda Tuan

Melinda TuanIn today’s Social Velocity interview, I’m talking with Melinda Tuan, project manager for Fund for Shared Insight (Shared Insight), a collaborative effort among funders to make grants that improve philanthropy. In that capacity, Melinda plays a key role in guiding and facilitating Shared Insight’s activities including operations, communication, grantmaking, and evaluation.

Melinda is an independent consultant who works with the senior leadership of philanthropic organizations to develop strategies for effective philanthropy. Prior to starting her consulting practice in 2003, Melinda was managing director of REDF (formerly The Roberts Enterprise Development Fund) – a social venture capital fund she co-founded.

You can read interviews with other social change leaders here.

Nell: One of the reasons the Fund for Shared Insight was established was to encourage more foundation transparency. Recent research from the Center for Effective Philanthropy (CEP) demonstrated that there is still much work to do to make foundations more transparent, particularly about their strategies and impact. How do you think we get more foundations to be more open about these things?

Melinda: We would offer an amendment to the question, as we at the Fund for Shared Insight don’t use the word “transparency” in reference to our overall work. Rather, we prefer to talk about increasing foundation “openness.” Here’s why.

To us, transparency, while important, describes a one-way sharing out of information. As indicated in the CEP research, foundations need to be more open to sharing information – particularly about how they assess their own work, and what they’ve learned about what is and is not successful. However, in addition to sharing more information out, we believe foundations need to be more open to listening and taking in information from grantees and the people we all seek to help, and acting on what we learn to inform our own practices to be more effective.

This very question of how to encourage foundation openness and increase the two-way exchange of information is what we are trying to address throughout our work. The good news is, based on the CEP research which we had the privilege of funding in our first year, foundation CEOs believe being more transparent – sharing more information out – will help them be more effective. Additionally, both foundations and nonprofits agree on the definition of and importance of transparency. This is welcomed news because transparency is an important part of increasing openness.

Building on that, our next phase of work will focus on enabling and inspiring foundations to adopt a variety of approaches to be more open in service of effectiveness. We issued an open request for proposals in May for increasing foundation openness and are currently reviewing 31 proposals for various initiatives such as building networks, providing training, and creating technology platforms among others. We are excited to announce which projects we’ll be funding by the end of July.

Nell: One of the hurdles to more openness among both nonprofits and foundations is the power imbalance between nonprofits and their funders. How do you think we work to overcome that imbalance, or can we? And how do you deal with these power dynamics in the work of the Fund for Shared Insight?

Melinda: While there is no quick fix solution, we believe building trust between foundations and nonprofit partners is a key way to diffuse this power dynamic. There are so many ways we can build – and break – trust, and much of this comes down to how we relate to each other as people. We build trust when we follow-through with what we say we will do in a timely manner, offer support in times of challenge and crisis, listen before speaking, ask good questions, and are curious learners. We break trust when we do the opposite – when we don’t follow through on our commitments, dole out punishment when we hear bad news, talk first and too often, and don’t enter into this work with a spirit of inquiry and wanting to learn for improvement. If foundations are as open with nonprofits as they would like their grantees to be with them, we believe we can work together and make great progress towards building the trusting relationships that can lead to greater overall effectiveness.

At Shared Insight we try to be mindful of the power dynamics in our own interactions and communications with the nonprofits we fund in both formal and informal ways. On the formal side, we have commissioned the Grantee Perception Report (GPR) and are looking forward to sharing what we’ve learned from our nonprofit partners who provided feedback via the GPR in the fall of 2016. On the informal side, we find simply making time to check in with individuals at the beginning of every meeting or call helps to build our personal relationships and establish a baseline of genuine interest in each other’s lives in addition to the work we are doing together. We also try to uphold a high standard of responsiveness and clarity about how we make and communicate our funding decisions – we have to walk our own talk.

As a funder collaborative now 35 foundations strong, we are in the unique position of being both a grantor and a grantee. It’s been fascinating to on one hand have conversations with our nonprofit partners and try to minimize the power imbalance in our interactions, and on the other hand experience the supplicant perspective as we seek funds from our core funders, additional funders and Listen for Good co-funders. We think this dual role helps us be extra-aware of the power dynamic and informs our understanding of helpful practices as the giver and receiver of grant dollars. We’ve learned a lot of useful lessons about these dynamics and relationships since our launch. Chris Cardona from the Ford Foundation, one of our eight core funders, highlighted many of these important lessons in a blog post for Transparency Talk. We know that we’ll continue to learn and grow as we move forward and these relationships progress.

Nell: Your approach somewhat assumes a desire among philanthropists to move to a more evidence-based approach to giving. But some research, like the Money for Good reports, has found that donors as a whole are not that interested in results and impact. Do you believe that much of philanthropy can move toward an evidence-based approach? And if so, how do we get there?

Melinda: The Money for Good research you reference was focused on individual donor decision-making, and found that individual donors are less interested in results and impact. In contrast, our work at the Fund for Shared Insight focuses on staffed foundations in the U.S. Research, at least on the larger foundations, has shown that many foundations are interested in results and impact. For example, the number of foundations belonging to Grantmakers for Effective Organizations (GEO) reporting that they conducted evaluations of their work went from around 20% in 2008 to more than 70% in 2011, and has only continued to grow.

One of our primary research questions regarding feedback loops is whether perceptual feedback from program participants today can serve as leading indicators of future outcomes for those same participants. In education, for example, students who answer in the affirmative to the question “I feel there is a teacher at school who cares about me” have been shown to achieve more positive educational outcomes. We are hoping our grant to Innovations for Poverty Action will help us analyze the relationship, if any, between perceptual feedback and outcomes in randomized controlled trials of programs in developing countries, and we hope to fund a similar project here in the U.S. If we are able to find these linkages between perceptual feedback and ultimate outcomes, this information will go a long way toward helping nonprofits and foundations improve programs in real-time without having to wait 2-3 years for the evidence of outcomes to be demonstrated.

We at Shared Insight are committed to measuring the results of our own work and sharing what we learn, and have devoted an entire section of our website to sharing how we are evaluating our progress toward improving philanthropy. All of our work is focused on learning for improvement, whether through evidence-based approaches to giving, feedback loops, or other ways to understanding the effectiveness of philanthropic investments.

Nell: Recently 22 philanthropic infrastructure organizations (like Guidestar, Nonprofit Finance Fund, Grantmakers for Effective Organizations) signed a letter asking foundations to commit 1% of their grantmaking budgets to supporting the infrastructure of the nonprofit sector as a whole. The Fund for Shared Insight is arguably a piece of this infrastructure, so what do you make of their argument and can you see foundations agreeing to this goal?

Melinda: The Fund for Shared Insight emerged out of a desire among a number of funders to improve the philanthropic sector, especially by strengthening infrastructure and the process of collecting and sharing feedback.

One of the great things about the Fund for Shared Insight is that we are a collaborative. Each of the foundations involved with Shared Insight supports infrastructure in different ways. For instance, Fay Twersky and Lindsay Louie of the William and Flora Hewlett Foundation (a core funder) recently co-wrote an op-ed in the Stanford Social Innovation Review in support of this letter, noting:

“Funders who believe in learning to improve have some obligation to invest at least a small portion of their grantmaking to infrastructure support. Supporting infrastructure doesn’t take away from other giving; it amplifies it. It unites all of us as funders—whether you fund in your local community, focus on a particular issue or multiple issues, or take a policy or research approach. Givers of all stripes can use and benefit from the infrastructure that supports us all.”

Photo Credit: Fund for Shared Insight

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What Will Be Philanthropy’s Next Chapter?

antique-typewriter-keysI am often asked by nonprofit leaders, “Where are the funders who understand what nonprofits really need?” Well, they were at the Grantmakers for Effective Organizations conference (#2016GEO) last week in Minneapolis.

After attending the conference and curating a great group of bloggers who recapped each day (you can read Phil Buchanan’s Day 1 post here, Trista Harris’ Day 2 post here, and Mae Hong’s Day 3 post here), I have lots of my own thoughts percolating and wanted to share my takeaways from a great conference.

GEO is made up of 500+ member foundations that strive to be better philanthropists. They are a thoughtful bunch who seek to invest better in the nonprofits leading social change. As Linda Baker from the David and Lucile Packard Foundation said in her session on Real Costs for Real Outcomes, “We want to have authentic, trusting relationships with our grantees. We want them to have the impact they want to have in the world because that’s the only way we will have impact. It’s critical to our success.”

And that, in essence, is what GEO and its member foundations are all about. They view themselves and their money in service to those nonprofits creating social change. It is a different model than the traditional philanthropic model of nonprofits in supplication to those who hold the purse strings.

And because GEO is on the cutting edge of where philanthropy is and should be going, the conference this week encouraged philanthropists to push their work in some exciting new directions.

Here is what I saw emerging at the conference:

 

GEO panelPhilanthropy Must Embrace the National Call for Equity
From the #BlackLivesMatter movement, to student protests on college campuses, there is a growing demand across the country for equity — a level playing field — for all. And philanthropy has to get better at responding to this in the moment. As Alicia Garza founder of the #BlackLivesMatter movement said in her session, “Philanthropy is missing the opportunity to support the very change they are set up to resource.”

And the plenary panelists Peggy Flanagan, Michael McAfee, Doug Stamm and Starsky Wilson would perhaps agree and take it even further, encouraging philanthropist to re-examine the institutional racism inherent in the system. As Michael McAfee said, “I am deeply frustrated at our leadership. At the moment where consciousness about equity is elevated, we shift our priorities, our initiative, we do something to avoid the real work for this moment. We could do something if we could be more courageous.” In this moment where our country is grappling with issues of equity, philanthropy must step up and invest in the hard work of change.

 

grantmaking

Philanthropy Must Invest in Stronger Organizations

GEO members have always been on the forefront of understanding that it takes strong organizations to create real outcomes, but this conference took that to another level. From a session on unrestricted operating support, to one on supporting fundraising capacity, to one on funding nonprofits’ real costs, GEO was pushing its members, and philanthropy as a whole, to recognize that real change will only come when we support organizations, not just programs.

As one attendee put it, “The project funding paradigm ignores the health of the nonprofit organization in which the project lives.” Yes, absolutely. GEO members are recognizing–and perhaps leading the rest of philanthropy to begin recognizing–that you cannot have effective programs, strong outcomes, and ultimately social change without strong, effective organizations behind them.

And that means that philanthropy can and should lead the way in funding the full costs, including program AND operating costs, along with working capital, fixed assets, reserves, and debt. And at the same time, philanthropy must be a partner with nonprofits in figuring out how to overcome their capacity constraints, like lack of fundraising expertise, lack of management knowledge, and lack of adequate systems and infrastructure.

 

Vu Lee

Philanthropy Must Humble Itself 

There is no doubt that GEO members are a humble bunch; they view their role as supportive to the real work of social change, which is different than traditional philanthropy that viewed itself as all knowing. But, perhaps there is still work to be done.

Vu Lee, blogger from Nonprofit With Balls and Executive Director of Rainier Valley Corps, spoke eloquently of philanthropy’s “trickle down” approach to working with communities of color and encouraged philanthropists to take a better approach: “We have to start changing philanthropy’s perception of what communities of color are. Instead of infantalizing communities of color, recognize that communities have the solution, they are the solution, they are the light.”

And Deepak Bhargava from Center for Community Change spoke of the typical grantor/grantee relationship being similar to a feudal relationship, where the philanthropist is the Lord and the nonprofit is the serf. Instead, he encouraged the social sector to move to a place of “public friendship” between grantor/grantee where both sides are:

  • United by a vision of big change
  • Accountable to each other
  • Thinking of themselves as custodians of organizations leading to a better place
  • Engaging in creative, generative conflict

He spoke of this ideal as something that we must “persuade a new generation of philanthropists is possible.”

And perhaps this new philanthropy is possible. GEO certainly seems to think so. So let’s hope that this new vision for philanthropy is embraced by the growing GEO membership and that that membership in turn leads philanthropy as a whole to a more effective way of investing in social change.

As Alicia Garza put it, “Effective grantmaking is moving resources to change agents AS change is happening and getting out of the way.” Amen!

Photo Credits: publicdomainpictures.net, #2016GEO

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GEO Guest Post: What Philanthropy Wants To Be

mae hongNote: As I mentioned last week, I am at the Grantmakers for Effective Organizations conference this week curating a group of bloggers. The third blogger is Mae Hong, Vice President of Rockefeller Philanthropy Advisors. Her guest post is below. And for a full rundown on the conference check out #2016GEO.

I can’t get the Buffalo Springfield lyrics out of my head:

“There’s something happening here.
What it is ain’t exactly clear.
I think it’s time we stop, hey, what’s that sound
Everybody look what’s going down.”
“Hey, What’s that sound?”

These were the sounds coming out of GEO’s 2016 National Conference in Minneapolis this week:

Philanthropy Embracing a New Lexicon
Values. Trust. Transparency. Reflection. Love. These are the words that were heard over and over in the plenaries, breakout sessions and hallways. I can remember a time when these words were considered squishy for our field. I would have been embarrassed to go to a workshop on these topics. But if this year’s conference brochure were a word cloud, these would leap out in 200+ point font. Noticeably scarce (though not entirely absent) were words like Measurement. Tools. Strategy. Systems. Performance. Our willingness to incorporate the former words is an acknowledgement that the latter are meaningless without them. Closing plenary speaker Heidi Brooks summed it up this way: “What you love is a big clue to how you can be most effective.”

Courageous Nonprofit Leaders Telling Us What They Really Think of Funders
GEO holds the voices and experiences of nonprofit practitioners in the highest regard, and nearly every session strived to incorporate a nonprofit perspective. Most nonprofit leaders, when invited to address a gathering of hundreds of funders, are predictably and understandably meek. I suspect it is a physiologically-based survival instinct not to provoke anyone with the power to harm. But speakers like Vu Le, Alicia Garza, Deepak Bhargava and Michael McAfee spoke in no uncertain terms about what we as a sector need to do differently: “Stop using communities of color.” “Rewrite the social contract between funders and grantees.” “Grantmakers need to get out of the way.” “Philanthropy doesn’t have room for my energy.” Their words demonstrated a conviction that they have a bigger stake in their work than whether any potential funders will be offended. Good for them. I wish every nonprofit leader were so confident, and that we as funders would help build that confidence in them.

Funders Sighing a Collective, “Finally . . . We’re Talking About Equity.”
GEO’s work for the last three years would inevitably lead here. Research, publications and conferences around stakeholder engagement, movements, and networks all pointed to one indisputable truth: philanthropy cannot be effective unless it confronts equity. No single topic at the conference had as much air time and real estate as this. Funders who had the prescience years ago to see that this would be the looming issue for our sector expressed relief and appreciation to have the space to unpack and understand equity, no matter how messy, uncomfortable, and unpredictable these conversations would inevitably get. The morning before the conference began, GEO held a meeting to kick-off a newly formed Advisory Group to help it think through its role on this topic. Chaired by Rev. Starsky Wilson (GEO board member and the moderator for Tuesday’s stunning plenary on the topic), this group will guide GEO in how to best support the field to embrace equity as an essential precursor to effectiveness.

So do these sounds mean that “There’s something happening here?” Can we sustain our conference-induced resolve to translate these ideas into lasting behavior change as a field? Or will this become, as my fellow GEO board member Peter Long, President of the Blue Shield of California Foundation, likes to say, “philanthropy’s latest belly button?”

To keep my optimism high, I am reminded of a scene from the 1996 movie, Jerry Maguire. Renee Zellweger’s character, Dorothy Boyd, after a successful date with Jerry Maguire (played by Tom Cruise) is gushing to her sister the following morning: “I love him for the man he wants to be. I love him for the man he almost is.”

Well, Philanthropy – here’s to finding love in who we want to be . . . who we almost are.

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GEO Guest Post: Bringing Equity to the Forefront in Grantmaking

trista harrisNote: As I mentioned last week, I am at the Grantmakers for Effective Organizations conference this week curating a group of bloggers. Next up is Trista Harris, President of the Minnesota Council on Foundations. Her guest post is below. And don’t forget you can also follow the conference from afar on Twitter #2016GEO.

Day two of the 2016 GEO National Conference was all about bringing equity to the forefront in Grantmaking. Two of the morning short talks really stood out for me:

Here’s some of what they covered.

Isaiah Oliver told a heartbreaking story about how the Flint water crisis is impacting his family directly. He said “I trusted those that said the water in Flint was safe, so I gave it to my babies. My little girls should not have to analyze public water. What if this was your child?” The EPA has said that 15 parts per billion is a safe level of lead in the water; two weeks ago there were houses in Flint that had 11,040 parts per billion. Isaiah said that “if a house is on fire, you need to get the people out and then worry about blame later.” We have not yet gotten all of the people out of the fire.

Alicia Garza said “Hashtags don’t start or sustain movements, people do.” Philanthropy is not prepared to support fast moving movements. Our structures and processes have created a situation where celebrities have given more to #BlackLivesMatter than philanthropy has. She made two critical suggestions to address this issue:

  • Philanthropy should get money to change agents while change is happening. Fund movements to fail fast and learn quickly from those failures to innovate their strategies.
  • Structural racism exists in philanthropy, and grantmakers should develop strategies to get out of the way of social movements.

The lunch plenary started with the powerful video below from PolicyLink (you can also see the video here).

Then there was a panel on Equity as an Effectiveness Imperative.

Michael McAfee, of Promise Neighborhoods Institute at PolicyLink, when given the chance for closing remarks at the Equity as an Effective Imperative plenary luncheon, said “I love all of you.” That may strike those not in attendance at the 2016 GEO conference as an odd thing for a speaker to declare to a room of 900 funders, grantmakers and organizational leaders, but in context it perfectly summed up the message of the collective speakers. For equity to truly be a part of the work in philanthropy there must be equal parts discomfort and love throughout all conversations and collaborations.

In addition to McAfee, the panel included: Minnesota State House Representative Peggy Flanagan, CEO of Meyer Memorial Trust Doug Stamm, and moderator Reverend Starsky Wilson of the Deaconess Foundation. Each of the four speakers brought a vulnerability to how they shared their personal and professional experiences with racial inequities in the philanthropic sector. And this created an open and connected space in the ballroom.

Wilson made it clear from his opening remarks that the plenary would focus on racial inequities and the uncomfortable work grantmakers face if meaningful change is to be made. Flanagan talked about her work as Executive Director at the Children’s Defense Fund-Minnesota and the impact there in creating people of color-centered and American Indian-centered spaces to talk about early childhood education. Stamm talked frankly about the heavy burden carried by the people of color at Meyer Memorial Trust as they’ve worked to make racial inequalities more than just a side conversation in their work but actually take action to make internal and external changes. And McAfee shared how sometimes talk about “equity” can be a way to avoid dealing with subtle or institutional racism.

There were powerful questions from attendees about the importance of what language is used and how it is used and how to decide when to educate a colleague about race and when to delegate that education to books or professional development. McAfee, Flanagan and Wilson shared stories of often feeling subtly or overtly ignored, othered or discounted while Stamm admitted his slow learning curve as a white person who hasn’t been forced to be aware of institutional racism.

Numerous attendees expressed on social media that this conversation resonated in ways few other conference sessions ever have. You can see the emotional and engaged responses to a moving and important conversation at #2016GEO.

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