Follow Social Velocity on Google Plus Follow Social Velocity on Facebook Follow Nell Edgington on Twitter Follow SocialVelocity on Linked In View the Social Velocity YouTube Channel Get the Social Velocity RSS Feed

Download a free Financing Not Fundraising e-book when you sign up for email updates from Social Velocity.

KaBoom!

10 Great Social Innovation Reads: October 2014

social innovationOctober was another interesting month in the world of social change. Continued efforts to make the nonprofit overhead myth history, a troubling report about the beloved American Red Cross, a dire prediction about Millennial philanthropy, some new models for scaling social change and connecting people to solutions in their community, and a call for funding for nonprofit performance management all combined to make a great month of reading.

Below are my 10 favorite reads in social innovation in October. But, please add what I missed to the comments. And if you want a longer list, follow me on Twitter, Facebook, Google+ or LinkedIn.

You can read past months’ 10 Great Social Innovation Reads lists here.

  1. The three writers of last year’s Letter to the Donors of America, GuideStar, BBB Wise Giving Alliance and Charity Navigator, have penned a new Letter to the Nonprofits of America in order to encourage nonprofit leaders to do their part to convince donors that financial overhead is a poor way to evaluate nonprofit performance.

  2. New York Times columnist David Brooks takes a really interesting position on the difference between networks and institutions. He equates the recent government failures to effectively fight ISIS and stop the spread of Ebola with the death of institutions and our overwhelming focus on innovation and disruption as opposed to systematization and execution. As he puts it, “We like start-ups, disrupters and rebels. Creativity is honored more than the administrative execution. Post-Internet, many people assume that big problems can be solved by swarms of small, loosely networked nonprofits and social entrepreneurs. Big hierarchical organizations are dinosaurs…[but] when the boring tasks of governance are not performed, infrastructures don’t get built. Then, when epidemics strike, people die.”

  3. The American Red Cross came under fire for the disaster response to hurricane Sandy in 2012. NPR and ProPublica created a two-part story (here and here) uncovering serious issues with how the response was handled. But the American Red Cross, typically a model of effective communications, went largely radio silent. Perhaps they will have a more effective response this month?

  4. Writing at The Daily Beast, Joel Kotkin gives a (perhaps too) chilling prediction for how Millennial philanthropists could impact our world. As he sees it, “Schooled in political correctness, and not needing to engage in the mundane work of business, this large cadre of heirs to great fortunes will almost surely seek to shape what we think, how we live, and how we vote. They may consider themselves progressives, but they may more likely help shape a future that looks ever less like the egalitarian American of our imaginings, and ever more like a less elegant version of Downton Abbey.”

  5. Sam McAfee takes philanthropy to task for not being truly innovative, and he looks to technology disruptors for a better model. As he puts it, “The vast majority of the social sector is still trying to tackle social problems with program and funding models that were pioneered early in the last century…The philanthropic community should be interested in the agile and lean methods produced by the technology sector, not the money produced by it, and start reorganizing project teams and resource allocation strategies and timelines in line with this proven innovation model.”

  6. Amy Celep and Sara Brenner describe the “Intentional Influence Strategy” that nonprofits, like playground creator KaBOOM!, use to create social change at scale. As they describe it, intentional influence is “moving likely and unlikely stakeholders within an ecosystem to take the actions required to solve a problem at the magnitude it exists.”

  7. Writing on the UnSectored blog, Patrick Davis from the Calvert Foundation describes their new initiative, “Ours to Own” which takes a “radical inclusion” approach to getting local community members to invest in solutions to the challenges their cities face.

  8. We cannot expect nonprofits to measure performance without providing the funding necessary to do so. Laura Quinn makes this quite clear, writing “If we demand more data without more funding, it logically follows that what we’ll get is simply data that’s more made up.”

  9. Mark Rosenman, writing on the PhilaTopic blog, describes the particular role nonprofits must play in a world suffering from the “failures of political leaders and the self-serving nature of the corporate world.”

  10. And finally, the Ford Foundation launched a new online forum kicked off by eight changemakers that asks the question “Where Markets Lead Will Justice Follow?” The articles will get you thinking.

Photo Credit: Joanna Penn

Tags: , , , , , , ,

Sparking Social Change Movements

Scott Goodson’s new book, Uprising: How to Build a Brand – And Change the World – by Sparking Cultural Movements, has an ambitious goal that eventually falls flat. Goodson provides an excellent analysis of the new movements sweeping the globe and how social change organizations can learn from them. However, when he tries to connect that reality to corporate brand building, the book becomes more about exploiting social movements for profit, rather than for social good.

The first half of Goodson’s book is eye-opening. He describes what he calls “our current movement mania.” The Egyptian uprising, Occupy Wall Street, Etsy, the Tea Party, the Pepsi Refresh Project are all examples of movements. He argues that we are seeing an explosion of movements because of a confluence of trends:

The Internet, and particular the rise of social media, has made it easy to find and connect with like-minded souls. And that same technology makes it possible for a group, once formed, to organize, plan and take action.

Goodson examines countless examples of movements sparked by individuals, nonprofits and companies.

The bulk of Goodson’s case studies are what I would call “social entrepreneurs.” Some of these are for-profit (like TOMS Shoes), many are nonprofit (like KaBoom!, FIRST, and DoSomething), and many are not really legal entities at all (like the Occupy movements).  All of these examples are fascinating when understood through Goodson’s “movement” lens. He helps us understand how these movements form, how they build momentum and find direction and how they’ve resulted in some serious change. In particular his discussion of “the swarm effect” is fascinating. He explains how these social movements behave like a swarm of insects:

A swarm moves in one direction as a group, and although it has no leader, it is capable of changing directions quickly to avoid a threat or pursue an opportunity…the group is able to share information instantly, based on tiny individual interactions…that allow members to guide each other as to what to do next…This combination of being adept at picking up on cues all around and being able to share that information quickly enables the swarm to be highly productive and move with great purpose and momentum.

But I wish the book could have ended there.

In the second half of the book, Goodson equates these social entrepreneurial movements to corporate re-branding efforts. The movements launched by companies which he profiles feel contrived. He points to Frito Lay, Pepsi and Jim Bean whiskey as great examples of companies that built their brand by sparking a movement.  Frito Lay launched the “True North” movement for their health-conscious snack food line targeting baby boomers. I don’t quite understand how this dressed up ad campaign is a social movement.

What if instead Frito Lay recognized the growing epidemic of obesity and revamped their business model to create and market ONLY healthy snacks? It would be far more interesting to encourage companies that are interested in tapping into social movement “mania” to start by authentically re-evaluating their business model and then working to bake social good into it. Instead Goodson seems to be suggesting that corporate brands try to hijack a growing interest in social good for their own profit. To connect exciting, game-changing social entrepreneurial movements to things like Microsoft dropping copies of Office Accounting software via parachute just doesn’t compute (interestingly Microsoft has since discontinued the Office Accounting product).

But what I take from this book is that we are living in a new reality. Social media, a growing restlessness with the world as we know it, a struggling economy, and a passion for social change that defines Generation Y, have combined to make movements a powerful new trend. It is no longer the purview of the nonprofit or government sectors to create social change. Anyone sitting in front of their computer can tap into a latent dissatisfaction, get people talking, and spark a game-changing movement. Nonprofits, government and business alike should take note.

Tags: , , , , , , , , , , , ,

Financing Nonprofit Growth: An Interview with Susan Comfort

In this month’s Social Velocity blog interview, we’re talking with Susan Comfort from KaBOOM!, a national non-profit dedicated to saving play and building community engagement. KaBOOM! helps communities across the country build playgrounds for their neighborhoods. As the VP for Philanthropy at KaBOOM!, Susan has a unique perspective on the next generation of sustainable philanthropic support for nonprofits. Before KaBOOM! Susan worked for environmental groups like EWG and 1% for the Planet. KaBOOM! is a darling of the social innovation world because they have figured out how to scale their idea (a playground within walking distance of every kid) in a financially sustainable way.

You can read past interviews in our Social Innovation Interview Series here.

Nell: How is it fundraising two years into a recession? Have you found that your approach has had to change because of the recession? If so, in what ways?

Susan: The recession brings good and bad news for fundraising. The good news is, if you are a nonprofit that delivers results, you will stand out to donors for getting great bang for their limited bucks.  KaBOOM! has made its reputation this way, not only delivering a tangible, needed asset to an underserved community, but doing it efficiently, in a way that brings people together in the short- and long-term.

The bad news is, as we work to diversify our revenues beyond corporate-funded-playgrounds, breaking into the foundation community during a recession is challenging. Foundations, coping with reduced payouts, can’t fund all their previous grantees, much less new ones. Plus, “play” is regrettably not yet understood by foundations as something that fits their guidelines, even though lack of play is harming kids intellectually, physically, socially and emotionally, and is linked to so many other pressing issues.

KaBOOM! launched its “Going to Scale” plan just before the bottom dropped out of the market, so our approach continues to be developing our organization and program offerings beyond building playgrounds. We aim to achieve our vision of a great place to play for every child in America, but we can’t build every play space ourselves!

Nell: KaBOOM! has grown tremendously since it was founded in 1995. What do you think enables some nonprofits to grow their solution significantly while others can’t? What are the characteristics, if there are any, of a growth-oriented nonprofit?

Susan: One characteristic is strategy. If you engage in direct service, you can always find more people to serve…then organizational growth is about funding and efficiency.  If you engage in lobbying Members of Congress, however, you will have a limited number of people to lobby, with a limited number of opportunities…so your organizational growth is about the message (did it resonate? And who was the messenger?), or effectiveness (did you win?) or scope (where does this get addressed next—in state houses or internationally?).

Another characteristic of growth is your Theory of Change. First you have to define the problem, so you can rally around a collective cause. The problem we aim to address is the declining health of both children AND communities. At KaBOOM! we structure programs that lead to Achievable Wins, which in turn lead to what we call “Cascading Steps of Leadership”. The KaBOOM! model of community-built playgrounds allows our project managers to match up funders and nonprofits, then facilitate a 10-week process starting with a kid-led Design Day and ending with Build Day. But it doesn’t end there…

Our project managers keep in touch after the big Build Day with 1-week, 1-month and 6-month follow-up calls, each designed to propel the planning committee to take on another defined problem in their community, and take steps to achieve more “wins” for themselves. In essence, this model allows us to work in any part of the country, so KaBOOM! can grow and serve any number of communities. If your Theory of Change is focused on one community, as a traditional community organizer’s would be, you might not grow beyond that community – nor should you – but your roots there will be much deeper than ours, by design, ever will be.

Nell: You have raised a good bit of growth capital to achieve this growth. Beyond the capital you’ve raised from venture philanthropy funds, that are all about growth capital, how have you convinced other funders, who were maybe not as versed in the ideas of growth capital, to fund growth as opposed to just direct programs?

Susan: The only venture philanthropy funding that KaBOOM! has received is from the Omidyar Network, and we are incredibly grateful for their $12 million investment over 7 years.  It gave us a long runway to get our engine revved up for take-off, in this case open-sourcing over a decade’s worth of playground-building expertise so that Do-It-Yourself activists could freely download what we’ve figured out and apply it to their own communities (per our Going To Scale plan).

At the same time, we started educating our closest friends in the corporate community about our other organizational needs, and some were willing (even in a recession!) to fund us beyond playground builds. So we started a “National Partner” program where we asked companies to build multiple playgrounds annually, plus contribute six figures in general support. Today, our national partners are Dr Pepper Snapple, Foresters, Kraft and MetLife.

And of course — near and dear to my heart — we also started a Philanthropy program (which I direct). Our goal is to engage foundations and individuals to invest in KaBOOM!, both its online programs and its organizational growth. With regional foundations, for example, we show what playgrounds we’ve built in their area thus far, and request support for our Playful City USA program. If play can be institutionalized in mayor’s offices and with local activists, so much more will be accomplished than we could have done on our own.

With individuals, it’s human nature to want to fund something very specific and/or tangible, so the growth fundraising is certainly a challenge. But it’s also human nature to extrapolate meaning from a single story, so when a donor sees how one child’s family benefits from a fantastic play space, they understand how millions of children and families would benefit just the same. We’ve had individuals support playground builds…we even have a wedding build lined up in Connecticut in June 2012…but we are also asking people to support the broader cause of play.

Nell: KaBOOM! recently took a fascinating spin on growing to scale by realizing the only way they were going to get to every area that needed a playground was to make playground plans downloadable on your website. That has the potential to undermine your financial model since you won’t receive any money for those playgrounds built. How do you balance the desire to reach everyone with the need to sustain a large organization?

Susan: Well, it’s a challenge, and honestly, we haven’t figured out the answer yet. But we have a few irons in the fire in addition to some of the foundation efforts I described.

We are hoping individuals will “Play it forward” to KaBOOM! after they’ve served as playground build volunteers, or Do-It-Yourselfers, or recess advocates. We are also figuring out the best way to help others raise money for their playground projects using a platform similar to Donors Choose or GlobalGiving, where donors give a small percentage “tip” to help with operating costs. Of course, we are also reaching out to high-net-worth individuals who have the potential to underwrite our mission.

In addition to our individual and foundation outreach, we are developing less-traditional revenue streams. Imagination Playground is a unique LLC, formed between KaBOOM! and the non-profit arm of David Rockwell’s architecture firm. Once that enterprise begins making money (we’re not there yet) KaBOOM! will get half of the proceeds. Another new revenue streams is KaBOOM! founder Darell Hammond, who is contributing all author proceeds from his new book, (an Amazon best-seller) How One Man Built a Movement to Save Play, to the organization. Back in the day, we also used to scoop ice cream down at the Ben & Jerry’s on Free Cone Day, which eventually got us a limited-run ice cream flavor featuring white-chocolate-coated pop rocks…called KaBerry KaBOOM! Too bad that’s in the Flavor Graveyard now.

Nell: What is your sense of how philanthropy is evolving in terms of the distinction between buying services and building organizations? Do you think more philanthropists are understanding this distinction and stepping up to fund building organizations? And what will encourage more to do so?

Susan: Some of the forward-thinking philanthropists are certainly making this distinction. Venture Philanthropy Partners. The Social Innovation Fund. Omidyar Network. Skoll Foundation. These tend to fund “social entrepreneurs” which are not just business-like non-profits. Jim Collins says “We must reject the idea.. well-intentioned, but dead wrong.. that the primary path to greatness in the social sectors is to become ‘more like a business.’ Most businesses…like most of anything else in life…fall somewhere between mediocre and good.”

Jim Collins has many fans at KaBOOM! – in fact, every staff member receives on their first day his Good to Great in the Social Sector so that we can embrace the universal principles of being GREAT.

But the reality is, the traditional KaBOOM! funding model sits squarely in the fee-for-service column, and corporate-funded playgrounds still dominate our budget. To fund everything else, we are making the transition away from venture philanthropy (Omidyar) toward a diversified organizational funding model (foundations + individuals).

Both entities are still tempted to fund a particular geographic area, or program area. And that’s okay—it’s good work.

But so many organizations are running around chasing 1-year grants for a program, for which quarterly reports are due, that you need a permanent development staff to keep track of all those proposals and reports and such. Which keeps people like me employed, but it’s not great for all of our social change movements who are spending time chasing money when they could be growing their organizations and serving the public more efficiently.

To download the 27-page Financing Not Fundraising e-book, click here.

Tags: , , , , , , , , , , , , , , , ,

Two Weeks to SoCap

Two weeks from today the 2nd annual Social Capital Markets Conference kicks off in San Francisco.  I’m pretty excited about it because I think one of the biggest things standing in the way of social innovation is a social capital market–the financial tools and vehicles necessary to adequately capitalize social innovation.  The speaker’s list for the conference reads like a Who’s Who of the social innovation world.  There are some incredible sessions, too many to choose from.  I wish the conference were longer than 3 days.  I’ll be tweeting (as much as my multi-tasking challenged brain can handle) and blogging from the conference.

Just a few of the topics to be discussed at this year’s conference include:

  • The Social Capital Movement Across the Globe
  • Social venture funds’ prominent role in the new economy
  • The sophistication of social investing pioneers
  • Raising money for impact investing in a downturn economy
  • The Obama Administration’s focus on social innovation
  • Creating effective collaboration between the private sector and development agencies
  • Moving beyond Microfinance
  • Market based solutions for the base of the pyramid
  • New corporate structures, including hybrid businesses and L3C organizations
  • Creating metrics and value around social change
  • Mobile technology platforms worthy of investment

Are you excited yet?

One of the things I’m particularly excited about at this year’s conference is a movement toward including nonprofits and philanthropy in more of the conference.  Last year’s conference tended to focus a bit more on blended value investing (investing in social impact organizations that provide a social AND a financial return). But we don’t want to neglect those social entrepreneurs that employ a nonprofit model to create their desired social impact.

To that end, SoCap this year has a host of sessions about nonprofit social entrepreneurs  and a social capital market for them.  I am moderating one of these sessions, Growth Capital for Nonprofit Social Entrepreneurs on Wednesday, September 2nd at 1:30pm.  Darell Hammond of KaBoom!, Greg Baldwin of VolunteerMatch and Kelly Ward from America Forward/New Profit will discuss the growth capital that was used to bring some impressive nonprofit organization’s to scale.

If you are going to attend only one conference in the social innovation space this year, I would highly recommend SoCap.  Hope to see you there!

Growth Capital for Nonprofit Social Entrepreneurs

Date: Wednesday, September 2nd
Time: 1:30pm

Moderator: Nell Edgington, Social Velocity
Greg Baldwin, VolunteerMatch
Darell Hammond, KaBOOM!
Kelly Ward, New Profit and America Forward

Nonprofit social entrepreneurs like Volunteer Match and KaBoom! have become, over the past decade, very successful, national, multi-million dollar nonprofit organizations working to solve critical social problems. They’ve achieved this impressive scale through growth capital from individuals, foundations and venture philanthropy funds. Greg Baldwin from Volunteer Match and Darell Hammond from Kaboom will be joined by Kelly Ward from America Forward and New Profit, a pioneer venture philanthropy fund in Boston, to discuss the various financial tools available and necessary to scale nonprofit social entrepreneurs.


Tags: , , , , , , , , , ,


Share




Popular Posts


Search the Social Velocity Blog