I’m a little late on my 10 great reads list this month because the GEO conference kept me busy, but there was lots going on in April. From the most pressing issues facing foundation leaders, to what history can tell us about new philanthropy and combatting xenophobia, to how nonprofits create economic value, to Millennials and social change, to state lawmakers attacking nonprofits, it was not a slow month.
Below are my 10 favorite reads from the month of April.
- If you read only one thing on this list, let it be Ruth McCambridge’s fascinating interview with media theorist Douglas Rushkoff. He argues that a nonprofit (or benefit corporation) business model is far better at creating value than a corporate model that operates under a “scorched earth policy.” He argues that corporations transfer value only to their shareholders, instead of the economy as a whole. As he puts it:
“Unlike the for-profit sector, the nonprofit company can’t sell itself, and it doesn’t have shares that go up in value…the way you make money is not by making your share price more valuable and then selling those to other people…the investment that you put in the company stays in the company. You can’t extract that when you leave. So, it’s much more like a family business, and if you look at the data, family businesses do better than shareholder-owned businesses in pretty much every single metric, and they last a whole lot longer. You’re building a company not because you want to take value out of it and then use that money to bequeath an inheritance to your grandchildren, but rather you’re building a company that you hope will still be around when your grandchildren need a job, to circulate wealth when you die. That’s why I’m trying to convince Internet startups to be benefit corporations, multipurpose corporations, or best of all, nonprofits.”
- And if you only have time to read two things on this list, let the second thing be Phil Buchanan’s essay on the five most pressing issues facing foundation leaders, “Big Issues, Many Questions.” A thought-provoking read.
- Pew Research provides a cool interactive graphic of the ebbs and flows of political polarization over the last 20+ years.
- While we are talking about change over time, I have always thought there are great parallels to be drawn between the philanthropists born of today’s digital age and the Gilded Age philanthropists. Nellie Bowles writing in The Guardian seems to agree in her piece about the “Digital Gilded Age.”
- And speaking of the history of philanthropy, Alfred Perkins, writing on the HistPhil blog, sees parallels between our current xenophobic political environment and the anti-Japanese sentiment in World War Two. But back then Rockefeller Foundation philanthropist Edwin Embree fought it. And perhaps there is a lesson there for philanthropy today: “By moving boldly beyond the customary boundaries of organized philanthropy, Embree was able to challenge deeply-held prejudices, demand justice for a vulnerable minority, and extend the impact of the monies he disbursed. This pioneer of his profession would not have voiced the idea, but implicit in his words and actions is the notion that foundation executives might on occasion serve as the nation’s conscience. In these less stringent times, his example might provide useful lessons for his contemporary successors—to the benefit of the philanthropic enterprise, and the nation as a whole.”
- So what will the future of social change be? All eyes are on Millennials, from how they turn out to vote, to how they donate, to what they think of capitalism, to how they find housing.
- A recent conference focusing on “maintainers” rather than the overly popular “innovators” aimed to uncover how critical the role of those maintaining the world in which we live are. As one of the conference organizers, Lee Vinsel (assistant professor of science and technology at the Stevens Institute of Technology) put it, “The vast majority of technologies that surround us and underpin our lives are not innovations. And the vast majority of labor in our culture is not focused on introducing or adopting new things, but on keeping things going.”
- Nonprofits have been under fire lately by state lawmakers who are trying to make it even harder for nonprofits to do their work. Tim Delaney from the National Council of Nonprofits provides an overview on what’s happening and what we can do about it. And Erin Bradrick delves into a proposed California bill that didn’t make it out of committee but sets a dangerous precedent on legislating nonprofit overhead rate disclosure in fundraising.
- Particularly during an election cycle, the struggle of the modern news media becomes more evident. The Knight Foundation released a troubling report that the news media has grown less able to defend their First Amendment rights in court. And French economist Julia Cage argues in her new book that the news media should embrace a nonprofit business model in order to reflect better its social role of bolstering our democracy.
- Hanh Le from Exponent Philanthropy and Rusty Stahl from Talent Philanthropy make a very convincing case about why funders should invest in nonprofit talent. Let’s hope this helps turn the tide.
Photo Credit: Stepan Lianozyan via Wikimedia Commons
The new millennium has been a difficult one. A struggling global economy, threatening climate change, crumbling education and healthcare systems, and a widening income gap are just a few of the social problems we face. And as our social challenges mount, and the government increasingly offloads services, the burden shifts to the nonprofit sector.
Now more than ever nonprofit leaders must step up to the plate. In fact, it is time for a new kind of nonprofit leader, one who has the confidence, ability, foresight, energy, and strength of will to find and deliver on solutions. It is time we move from a nonprofit leader who is worn out, worn down, out of money and faced with insurmountable odds, to a reinvented nonprofit leader who confidently gathers and leads the army of people and resources necessary to create real, lasting social change.
In my mind, here is what the new nonprofit leader should look like:
Unlocks the Charity Shackles
“Charity” is more than a word, it’s a destructive mindset that keeps the work of social change sidelined and impoverished. “Charity” harkens back to the beginnings of philanthropy, which was largely the purview of women and viewed as tangential to and less valuable than the more important “business” of the male-dominated world. While charity was an afterthought, social change is rapidly becoming an integral part of the economy. As social problems mount, we must shift from the “charity” of our predecessors to an understanding of social change as part of everything we do. And nonprofit leaders must confidently and assertively articulate the critical importance of their work and why it requires real investment, because social change is about changing larger systems. So it takes real, significant investment of resources, not the pennies that charity requires.
Moves From Misplaced Gratitude to Impregnable Confidence
In the nonprofit sector there is such a pervasive power imbalance that misplaced gratitude, or gratitude for acts that are actually NOT helpful, often gets in the way of real work. If a nonprofit leader acts grateful when she should actually voice frustration or disappointment (with a delinquent board member or a meddlesome funder), she is cutting off authentic conversations that could result in more effective partnerships. Nonprofit leaders must rise from bended knee with confidence in themselves, their staff, and their social change work to articulate what they really need. To be truly successful, a nonprofit leader needs a board that will move mountains, donors who fully fund and believe in the organization, and a staff that can knock it out of the park. And they get there by being honest about, not grateful for, the roadblocks in the way.
Lives, Breathes and Leads Strategy
Real social change is only a pipe dream if it is not connected to smart strategy. To get there a nonprofit leader must ask board and staff to answer some key strategic questions like:
- What change do we want to create?
- Where do we fit in the external environment?
- How do we measure if that change is happening?
- What are the right activities to get to there?
- What is the most sustainable financial model to get there?
- What people and networks do we need with us?
These are not easy questions, and finding the right answers is even harder. But that is true leadership.
And part of that strategy may involve a (formerly feared) move into advocacy. 501(c) 3 organizations have long been told to stay out of politics. The myth is that charity is too noble to be mired in the mess of pushing for political change. But the fact is that simply providing services is no longer enough to solve the underlying problems. Nonprofits are increasingly recognizing that they can no longer sit by and watch their client load increase while disequilibrium grows. Nonprofits must (and many already are) advocate for changes to the ineffective systems that produce the need for their existence.
Uses Money as a Tool
Without money, a compelling, inspiring, world-changing vision for social change is only a sentence on paper. As much as we might like to deny it, nonprofits exist in a market economy, and without a smart plan for how a nonprofit will secure and use money there is no mission. So instead of dreaming up magic bullet fundraising schemes, a nonprofit leader must develop an overall financial model for her work that fully integrates with the organization’s mission and core competencies. And because money is so central to mission, you cannot make decisions about the organization, about programs, about staffing, really about anything without understanding the financial implications of those decisions.
Embraces the Network
If instead of building an institution, a nonprofit leader built networks, she could be much more effective at creating long-term social change. A true leader leaves her ego, and the ego of her organization aside in order to assemble all necessary resources (individuals, institutions, funding) to chart a path towards larger social change. Instead of thinking just about her organization, her staff, her mission, her board, her donors, the nonprofit leader must analyze and connect with the larger marketplace outside her walls, the points of leverage for attacking the problem on a much larger scale than a single organization can. A nonprofit leader understands that the network approach — particularly for nonprofits that are so resource-constrained — can create a much larger effect than a single entity can.
I believe that what separates great leaders from mediocre leaders is an ability to inspire others to greatness beyond what they thought possible. A true leader asks us to rise above our current circumstances – and in the nonprofit sector where more and more is being asked of organizations with less and less, those circumstances are often dire — to do more and be more than we ever thought possible. It is with that kind of real leadership that lasting social change can happen.
Photo Credit: Chuck Abbe
I have been down lately. As I mentioned earlier this week, November was really rough. The recent (and increasingly frequent) terrorist attacks coupled with a shocking American response to the Syrian refugee crisis has made it feel as though the world is a very dark place.
But we must fight that darkness. And the nonprofit sector must lead us there.
Life is a constant interplay between dark and light. As actor Patton Oswalt wrote after the Boston Marathon bombing in 2013:
“You watch the videos of the carnage and there are people running TOWARDS the destruction to help out…Every once in awhile, the wiring of a tiny sliver of the species gets snarled and they’re pointed towards darkness. But the vast majority stands against that darkness and, like white blood cells attacking a virus, they dilute and weaken and eventually wash away the evil doers and, more importantly, the damage they wreak…So when you spot violence, or bigotry, or intolerance or fear or just garden-variety misogyny, hatred or ignorance, just look it in the eye and think, ‘The good outnumber you, and we always will.'”
Or as Mr. Rogers said, when there are horrific acts, don’t focus on the fear and the violence, but instead “look for the helpers.” Focus on those who are working to make the world a better place.
And those working to make the world a better place are the nonprofits. Indeed, one way the good outnumbers the evil is through the leadership of the nonprofit sector — the social movements that champion right over wrong.
And they must. As Rick Cohen so eloquently wrote in his last piece, it is up to the nonprofit sector to rise up in the face of fear and injustice. Indeed, this is playing out right now in my state of Texas where the head of the Texas Health and Human Services Commission is threatening to sue the nonprofit International Rescue Committee headquartered in Dallas because they continue to work with Syrian refugees despite the state’s refusal to take Syrian refugees in the wake of the Paris attacks. This nonprofit is fighting the fear and ignorance.
And isn’t that — at its essence — the critical role of the nonprofit sector, to, as Susan Ragusa put it, bring light to the darkness: “Every nonprofit, large and small, [has] a strategic role in bringing greater balance to a world that feels upended by horrific acts and the continued threat of more.”
One nonprofit, the Muslim Public Affairs Council (a client of mine) is doing exactly this. They work to improve public understanding and policies affecting American Muslims. They have been incredibly busy lately trying to convince Americans that ISIS does not represent Muslims. MPAC’s critical role is to be the voice of reason and understanding amid the terror and the backlash rhetoric. They are working tirelessly to show American policymakers how to turn away from the dark and embrace our better nature. As MPAC staff wrote recently:
“It is easy for us to pay lip service to America as the beacon of freedom. To be such an example to the rest of the world, yet not allow the world’s tired and poor to reach that freedom, makes our values mere slogans as opposed to truth. The home of the brave must not be scared to hold on to its principles, most especially during the times it is easiest to let them go.”
And that is the antidote — isn’t it — to the fear, the hopelessness, and the violence? We must pick ourselves up, gather our courage, and seek the light. We must strive, always strive, to find and embrace the better angels of our nature.
And nonprofits must lead us there.
Photo Credit: “S S Hope” by Herman Hiller, Library of Congress
The year is winding down, and I will be taking some time off to enjoy friends and family (as I hope you are too). But before I go, I want to leave you with a list of the 10 most popular posts on the blog this year, in case you missed any of them.
I feel incredibly lucky to be able to work with you amazing social change leaders. I am grateful for the amazing work you are doing to create a better world. And I appreciate you being part of the Social Velocity community.
I wish you all a happy, relaxing holiday season, and a wonderful new year. I’ll see you in 2015!
- Can We Move Beyond the Nonprofit Overhead Myth?
- 7 Rules For Brilliant Nonprofit Leaders
- How to Move Your Nonprofit Board From Fundraising to Financing
- Why Nonprofits Must Stop Being So Grateful
- 5 Questions Every Nonprofit Leader Should Ask
- Why Do Nonprofit Leaders Get In Their Own Way?
- 3 Questions to Get Your Nonprofit Board Engaged
- 5 Ways Great Strategy Can Transform a Nonprofit
- Does Your Nonprofit Know How To Attract Big Donors?
- It’s Time to Reinvent the Nonprofit Leader
Photo Credit: Steven Depolo
As the year draws to a close, and you (I hope) make time to relax, reconnect with friends and family, and reacquaint yourselves with some much-needed quiet, you may also want to reflect on your role as a social change leader. Effective leadership is really, really hard work, but it is also incredibly necessary and needed.
So if you find time over the next few weeks to take a look at your role as social change leader and you want some help along the way, download the Reinventing the Nonprofit Leader book.
Here is an excerpt:
Chapter 3: Refuse to Play Nice
As a by-product of the charity mindset, nonprofit leaders often suffer from being too nice. The thing I love most about nonprofit leaders is that, for the most part, they are truly good, decent people. They are trying to make the world a better place, so by definition they are considerate of others. But sometimes you can take being nice too far. Being nice to the donor who leads your nonprofit the wrong way, or the staff member who is not performing may work for the individual relationship, but is detrimental to the larger organization and ultimately your mission.
Indeed, according to a 2010 study by researchers at Stanford University, nonprofits are perceived as “warm, generous and caring organizations, but lacking the competence to produce high-quality goods or services and run financially sound businesses.” In other words, we think nonprofit leaders are nice — but not competent.
But this reality is often imposed on nonprofit leaders. Nonprofit leaders are encouraged to collaborate instead of compete, hold onto under-performing staff, accept martyr-like salaries, smile and nod when funders push them in tangential directions, and keep quiet when government programs require the same services at a lower price.
This demand that the nonprofit sector play “nice” is the result of (at least) three aspects to the sector:
- A Focus on the Social. The sector exists to address and (hopefully) solve social problems. Thus, by definition, it is socially oriented and has an inclusive, consensus-based approach to doing business.
- More Customers. Nonprofits have two customer groups, as opposed to the single customer for-profits have: 1) those who benefit from the services a nonprofit provides (clients) and 2) those who pay for those services (funders).
- Multiple Players. In addition to their customer groups, nonprofit leaders must corral their board of directors, which often includes individuals with competing interests, and external decision-makers (policy makers, advocates, leaders of collaborating organizations) who have an impact on the change the nonprofit seeks. The end result is that multiple players must somehow be brought together and led in a common direction.
But in order to work toward real solutions and get out from under consensus-based mediocrity, you need to break free from the niceness trap. Rest assured, I am not asking you to get mean and ugly. But there is a way to politely, but assertively, make sure you get what you need to succeed.
In other words, the reinvented nonprofit leader needs to:
- Say “No” to funders who demand new programs or changes to programs that detract from your nonprofit’s theory of change and your core competencies.
- Diversify revenue streams so that you are not beholden to any one funder or funding stream.
- Demand that board members invest significant time and money in your nonprofit, or get out.
- Fire under-performing staff. This is such a taboo in the sector, but with limited resources and mounting social problems to be addressed, we do not have time to invest in people who cannot deliver.
- Be brutally honest with funders and board members about the true costs of running operations effectively and stop apologizing for, or hiding, administrative expenses.
- Create a bold strategic plan that will drive your nonprofit toward social impact and sustainability, not mediocrity.
- Make an honest assessment of your nonprofit’s core competencies, competitors and consumers so that you understand and can articulate where you fit in the marketplace — and act accordingly.
- Stop waiting for your board chair, or a big donor, or a government official to allow you to do something that you know is the right way forward.
- Refusing to play nice is not easy. And it often culminates in a difficult conversation, perhaps with an underperforming staff member, an ineffective board member, or a time-consuming funder.
In order to manage these difficult conversations for success, you need to approach them in a thoughtful and strategic way. Here are the steps…
Photo Credit: Satish Krishnamurthy
My focus this month at Social Velocity is nonprofit leadership. As I mentioned earlier, May’s webinar is Reinventing the Nonprofit Leader. And I’m delighted to release today, as promised, the companion book, Reinventing the Nonprofit Leader.
Here is an excerpt from the new book:
The new millennium has been a difficult one. A crippled global economy, threatening climate change, crumbling education and healthcare systems, and a widening income gap comprise a few of the social problems we face.
And as our social challenges mount, the burden increasingly falls to the nonprofit sector to deal with the fall out.
So it is time for a new kind of nonprofit leader, one who has the confidence, ability, foresight, energy, and strength of will to lead the nonprofit sector, and our communities, forward. Indeed it is up to the leaders of our great nonprofit sector, to face, rather than shrink from, these many challenges.
It is time we move from a nonprofit leader who is worn out, worn down, out of money and faced with insurmountable odds, to a reinvented nonprofit leader who confidently gathers and leads the army of people and resources necessary to create real social change.
So in the hopes of inspiring nonprofit leaders to claim their rightful place as true heralds of social change, I have written this book. It is based on my many years of coaching nonprofit leaders to success. This book lays out the elements that those nonprofit leaders have learned in order to embrace their role as reinvented nonprofit leaders.
The reinvented nonprofit leader:
- Unlocks the Charity Shackles and demands to be treated as an equal and critical part of the economy, the community, the solution.
- Refuses to Play Nice and gets real with funders, board members, partners, and staff who are standing in the way of progress.
- Embraces Strategy that moves beyond just “doing good work” and gets real results.
- Uses Money as a Tool because big plans will not come to fruition without a sustainable financial engine behind them.
- Demands Real Help and the tools necessary to achieve the mission because the best leaders recognize weakness and solicit help to address it.
- Breaks Down the Walls of the organization and lets the world in as fully engaged partners, advocates, and supporters.
- Remembers the Dream that got them here in the first place because often it is the big idea that propels great leaders forward.
It is a tall order, but true leadership is.
We no longer have the luxury of mediocre leaders. These times demand confident, capable, engaging leaders who are a beacon to a society whose mounting problems are overwhelming at best.
While it may seem like an impossible transition to become a new kind of nonprofit leader – one who is more entrepreneurial, innovative, confident and strategic – let us remember that nonprofit leaders have always been entrepreneurs. They have recognized some sort of disequilibrium in our society and have created, out of nothing, an organization, a solution and an assembly of staff and volunteers to fix it. In essence, I am simply encouraging you, the nonprofit leader, to claim your rightful place.
The reinvented nonprofit leader is confident, engaged, and savvy. She will, I have no doubt, lead this great nonprofit sector, and all of us who benefit from it, to new heights.
So how do you become a reinvented nonprofit leader? Let’s take these one by one…
If you want to read more, download the Reinventing the Nonprofit Leader book now.
And if you register for the webinar before May 21st the companion book is free. You can register for the Reinventing the Nonprofit Leader webinar here.
Nonprofit leaders have been given a seemingly endless list of tasks: develop and execute effective programs, manage a diverse and underpaid staff, chart a bold strategic direction, create a sustainable financial model, wrangle a group of board members with often competing interests, and recruit and appease a disparate funder base.
All with little support along the way.
I think its time for us to reinvent the nonprofit leader. In order to better lead her staff, board, and donors to greater social change, the reinvented nonprofit leader must:
- Unlock the charity shackles that keep nonprofits beholden to dysfunctional expectations
- Refuse to play nice with staff members, board members, or funders who stand in the way of the mission
- Embrace strategy that gets results
- Wield the money sword
- Break down the walls of her nonprofit to let in more supporters, advocates, and partners
- Demand real help and the tools necessary to do the work well
- Remember the dream for change that inspires the work
So in the hope of inspiring nonprofit leaders to claim their rightful place as true heralds of social change, I am offering a new Social Velocity webinar, Reinventing The Nonprofit Leader.
Informed by years of experience coaching nonprofit leaders, the Reinventing The Nonprofit Leader webinar will help nonprofit leaders like you to:
- Adapt to a rapidly changing world
- Find the confidence, energy and will to lead more effectively
- Better engage your staff, board, and donors in the work
- Stop apologizing for what you really need
- Use money as a tool
- Embrace new technologies and approaches to build momentum
- Become inspired for the work ahead
Reinventing Nonprofit Leader
A Social Velocity Webinar
Wednesday, May 21, 2014 at 1:00pm Eastern (or On Demand)
Don’t worry if you can’t make the time of the live webinar. All of our webinars are recorded and available On Demand, so simply sign up now, and you’ll be sent a link to watch the recording of the webinar after it airs. You can see the entire Social Velocity On Demand Webinar Library here.
I hope to see you there!
Photo Credit: Library of Congress
It’s that time of year again – the Nonprofit Finance Fund’s annual State of the Sector Survey of nonprofit leaders.
If you are a nonprofit leader struggling with increasing demand for services amid diminishing funding, if you are frustrated with funders’ lack of understanding of the challenges you face, if you want the sector to recognize the hurdles and get better at addressing them, you need to voice your perspective by taking the survey.
The Nonprofit Finance Fund is one of the country’s leading community development financial institutions (CDFI) making millions of dollars in loans to nonprofits and pushing for fundamental improvement in how money is given and used in the sector.
They started the annual State of the Sector survey when the recession hit in 2008. Collective efforts to understand the extent of the challenges the economic restructuring was having on the nonprofit sector were decentralized and largely anecdotal. NFF’s survey is an effort to bring information about the nonprofit community together so that it can be used to address these challenges. You can view the results from past surveys here.
The anonymous survey takes 10-15 minutes to complete and asks about your organization’s recent financial and management challenges. The knowledge gathered through the annual survey is shared with funders, government officials, nonprofits, media, lending institutions, and many others through conferences, policy recommendations, and other efforts. And now with more than 5 years of Sector Survey data, we can analyze and understand trends and begin to make a larger argument about what nonprofits need and what funders and policymakers must do differently to support their work.
The survey really is the only effort of its kind to take the pulse of the sector. And I am excited to see how the results are increasingly used to advocate for some significant improvements to the state of the sector.
This year’s Sector Survey will be open to responses until February 17th, so if you are a nonprofit leader, click here to take the survey and let your voice be heard. The results of this year’s survey will be available in early April.
Photo Credit: Nonprofit Finance Fund