Does it seem like there is more open debate lately in the social sector? Or maybe I’m just attracted to discussions where the gloves come off and (let’s hope) transformative conversation happens. That was the case in May where philanthropic transparency, nonprofit leadership, and donor acceptance policies were all up for debate.
Add to that some really interesting developments in the new “sharing economy”, net neutrality, and use of big data, and it was another great month in the world of social innovation.
Below are my 10 favorite reads from the last month, but please add what I missed to the comments. And if you want to see a longer list of great reads, follow me on Twitter, Facebook, LinkedIn or Google+.
And you can see past months’ 10 Great Reads lists here.
- Writing in the New York Times, Frank Bruni criticizes some nonprofits for accepting donations from donors who actually undermine the cause. These nonprofits, in effect, end up whitewashing the philanthropists, “Some [philanthropy] is prophylactic or penitential: The polluter supports environmentalists, while the peddler of sugary soft drinks contributes to campaigns against obesity.”
- And philanthropists themselves were far from criticism this month. Writing in The Atlantic, Benjamin Soskis believes it is critical for a healthy democracy that philanthropists go under the microscope, in fact: “Given the power that private philanthropy can wield over public policy, a spirited, fully-informed public debate over the scope, scale, and nature of that influence is a democratic necessity.” Phil Buchanan from the Center for Effective Philanthropy agrees. And to that end, May saw the launch of Philamplify, the National Committee for Responsive Philanthropy’s attempt at a Yelp-like review site of foundations.
- In a long (but well worth the time) piece, Albert Ruesga from the Greater New Orleans Foundation lays bare his antipathy toward his fellow philanthropists: “We grantmakers, myself included, act as arrogant elites, drawing arrows and triangles on the whiteboards of our well-appointed conference rooms with no one around to challenge our flawed thinking. We strut about like giant roosters puffing out our breast feathers and clucking incoherently about ‘disruption’ and ‘theories of change.’ We look foolish to everyone except ourselves and those even more foolish than we are.”
- But there are bright spots. Daniel Stid from the Hewlett Foundation takes to the Hewlett blog to refreshingly demonstrate funder transparency and explain “What Went Wrong in Our Democracy Grantmaking.” And Peter Buffett, son of Warren Buffett and author of a scathing critique of philanthropy last year, has a fascinating debate/very civilized exchange with ethicist William MacAskill about how effective (or harmful) philanthropy can be.
- We are living in the era of big data, and this month there were some really interesting examples of how data can be used to make things better. First, UPS uses data to improve driver performance and profitability. The University of Texas at Austin is doing some fascinating things with data to help at-risk students graduate. And some nonprofits are using data to improve fundraising effectiveness.
- Last month saw the first-ever sharing economy conference. This new idea – that our economy is evolving to a point at which goods, services, ideas are all shared – has serious implications for the social sector. Lucy Bernholz and Beth Kanter break it down for us.
- And a key part of that sharing economy is an open Internet. But the FCC is considering changes to rules that would allow a “two-tiered” Internet where those with means can pay more for faster service. The Benton Foundation did a nice summary of developments around net neutrality. And the Electronic Frontier Foundation organized to let voices be heard by the FCC.
- Innovation is hard work. So when the work of creating social change drags you down, you only need look as far as Steven Pressfield for inspiration, “When we’re stuck, when we’re freaking out, when it all seems too much too soon too crazy, remember: that’s only how it seems to us, confined within our limited point of view. From the universe’s perspective, all is as it should be. Sooner or later, you and I will stop fighting and let the symphony/supernova/baby be born.”
- Using data from the Nonprofit Finance Fund’s most recent State of the Sector survey, work by state associations of nonprofits, and new Uniform Guidance for federal grants from the federal Office of Management and Budget, Beth Bowsky from the National Council of Nonprofits charts some positive developments in government funding the true costs of nonprofits’ work.
- Never one to sugar coat it, in an interview on the Idealist blog, Robert Egger describes his vision for the next generation of nonprofit leaders: “Our society needs an elevated nonprofit sector, but to get there, we need people who are prepared to challenge antiquated ideas about the role we play in the economic and political process.”
Photo Credit: Mo Riza
In addition to the Social Impact Exchange conference I mentioned earlier, I will be traveling a lot this summer connecting with nonprofit and philanthropic leaders. I’ll be blogging about what I learn in my travels and conversations. And, I’m really excited to announce, that I have an amazing group of guest bloggers who will be posting throughout the summer as well.
These guest bloggers are people who really make me think and will offer some really interesting perspectives. I’ve invited them each to take over one Social Velocity blog post sometime during the summer.
Below is the guest blogger lineup with some background on each of them. Their posts will begin in late June. And I will continue to post throughout the summer as well.
Social Velocity Summer Guest Bloggers
Robert is the founder of DC Central Kitchen and LA Kitchen, as well as the nonprofit sector advocacy group, CForward. Robert was included in the Non Profit Times list of the “50 Most Powerful and Influential” nonprofit leaders from 2006-2009, and speaks throughout the country and internationally on the subjects of hunger, sustainability, nonprofit political engagement and social enterprise. He is a tireless advocate for the nonprofit sector, encouraging nonprofits to take their rightful seat at the table. He is always pushing us to think bigger and smarter about social change. You can read my past interview with him here and my post about CForward here.
David is the founder of Idealistics, a former social sector consulting firm that helped organizations increase outcomes, demonstrate results, and organize information. He has worked in the social sector for the last decade providing direct services to low-income and unhoused adults and families, operating a non-profit organization, and consulting with various social sector organizations and foundations. David’s professional focus is on improving the way social sector organizations use information to address poverty. He writes his own blog, Full Contact Philanthropy, which I highly recommend. He will make your head hurt, but in a really good way. You can read my interview with him here and watch the Google Hangout he and I did about Using Real Performance Data to Raise Money.
Jessamyn is Executive Director of the Peery Foundation, a family foundation based in Palo Alto, California. The Peery Foundation invests in and serves social entrepreneurs and leading organizations in the San Francisco Bay Area and around the world. Jessamyn helps shape the foundation’s strategy, develops programs, strengthens the foundation’s portfolio, and supports existing grantees. Her experience as part of the founding Ashoka U team has given her the perspective and skill-set to help the foundation develop new methods to support and build the field of social entrepreneurship. You can read my interview with her here.
Adin is Senior Director of Community Impact and Innovations at the Jewish Community Federation and Endowment Fund. In this role, he develops new strategies and programs to bring about change and impact within JCF’s mission. Adin focuses on defining metrics to document impact, maximizing measurable impact and increasing the visibility of the organization. Prior to JCF, Adin was a nonprofit consultant and had his own blog, Working in White Space, which was phenomenal. You can read my past interview with him here.
Laura is a network developer at the Council on Foundations, where she tracks philanthropic trends and builds relationships with leaders advancing the common good across sectors. She also leads an impact investing initiative and regularly interacts with those interested in the changing landscape of social good. Previously as manager of public-philanthropic partnerships, she built the capacities of federal agencies interested in partnering with foundations. Before joining the Council, she worked at Grantmakers for Effective Organizations and at the Central New York Community Foundation. Laura has been named a Global Shaper by the World Economic Forum. She is also a StartingBloc Fellow and writes for UnSectored, serving on advisory boards for both organizations. You can read my interview with her here.
So there you have it. A summer guest blogging lineup that I am thrilled about. I can’t wait to read what they all have to say. Stay tuned!
Photo Credit: Holger.Ellgaard
There is something really interesting going on in the world of nonprofit advocacy. And I don’t mean advocacy for a specific cause. Rather, I’m talking about advocating for the nonprofit sector as a whole. Three new efforts underway in recent months are vying to be the voice of the nonprofit sector. And the firestorm brewing is interesting to watch.
Robert Egger kicked it off a year ago when he formed CForward an advocacy organization that champions the economic role of the nonprofit sector and supports political candidates who include the nonprofit sector in their plans to rebuild the economy. You can read my interview with Robert about why he launched CForward here. Robert’s video about the need to advocate for the nonprofit sector is below (or here if you are reading this in an email):
And then in the last couple of months there have been two similar movements to better advocate for the nonprofit sector. Dan Pallotta released a new book last month called Charity Case: How the Nonprofit Community Can Stand Up for Itself and Change the World where he announces the creation of his new entity, the Charity Defense Council, which is also aimed at advocating for the nonprofit sector, via five efforts:
- An “anti-defamation league” to respond to and rectify inaccurate reports about the sector in the media
- Big public advertising campaigns for the sector
- A “legal defense fund” to challenge unproductive laws against the sector
- Work to create a “National Civil Rights Act for Charity and Social Enterprise” to support the sector
- Grassroots organizing of the sector as a whole, including a national database of every nonprofit in the country
And then the third grand effort to advocate for the nonprofit sector comes from Independent Sector, the organization formed in 1980 to “advance the common good by leading, strengthening, and mobilizing the nonprofit and philanthropic community.” Their new report “Beyond the Cause,” which interviewed 100 nonprofit organizations, recommends the creation of a national organization (probably run by Independent Sector) to push a nonprofit agenda, costing $20 million over 4 years. For Independent Sector the key issues that such an entity would address are:
- Changes that could limit the organizations eligible for charity status
- Threats to charitable tax deductions for donors
- A need to clarify advocacy and lobbying rules for charities and private foundations
- Changes to Internal Revenue Service disclosure forms that could hamper nonprofit operations
- Burdensome paperwork and red tape involving government contracts with nonprofits
- Lack of government-financed research on the nonprofit world
While CForward seems to be largely supported in their work, both Pallotta’s and Independent Sector’s efforts are drawing fire. Phil Buchanan, president of the Center for Effective Philanthropy, writes a scathing review of Pallotta’s new book and advocacy effort and concludes that “Mr. Pallotta is selling is himself—as both the nonprofit world’s messiah and its advertising agency,” and suggests that people support CForward and Independent Sector instead of Pallotta’s Charity Defense Council.
Similarly, Pablo Eisenberg, senior fellow at the Georgetown Public Policy Institute, dislikes Independent Sector’s effort to coalesce the nonprofit sector arguing that “nonprofits will never share a broad consensus about which issues are most important. The best that nonprofits can accomplish is to strengthen their individual advocacy and lobbying activities and join with other organizations in coalitions that fight for specific policy changes.”
It is really a fascinating and multi-layered debate. I strongly agree that the nonprofit sector is often dismissed in the policies of the day. But if organizations like Independent Sector have been working to create a common voice for the sector for more than 30 years with little improvement, I’m not sure what will change. Especially if 3 separate entities are all singing different verses of the same tune. They will be competing for dollars, mind-share, and the ears of policy makers. But I am a huge advocate for fixing a broken sector, so let’s see how this all plays out.
What do you think? How do we get policy makers to recognize the importance and value of the nonprofit sector?
In this month’s Social Velocity blog interview, we’re talking with Robert Egger. Robert is the Founder and President of the DC Central Kitchen, the country’s first “community kitchen”, where food donated by hospitality businesses and farms is used to fuel a nationally recognized culinary arts job training program. In addition, Robert is the Founder and President of the just launched CForward, an advocacy organization that rallies employees of nonprofits to educate candidates about the economic role that nonprofits play in every community, and to support candidates who have detailed plans to strengthen the economy that includes nonprofits. Robert was included in the Non Profit Times list of the “50 Most Powerful and Influential” nonprofit leaders from 2006-2009, and speaks throughout the country and internationally on the subjects of hunger, sustainability, nonprofit political engagement and social enterprise.
You can read past interviews in our Social Innovation Interview Series here.
Nell: You have argued that nonprofits need to more assertively demonstrate how they are changing things (jobs created, dollars saved by society, etc), but this necessitates an understanding of and ability to articulate and track performance. Do you think the nonprofit sector as a whole is ready for that?
Robert: I don’t think we have a choice. There are external forces that will not allow organizations to go-it-alone, or do what they’ve always done, indefinitely, any longer. The “era of extra” in America, when our manufacturing economy produced enough extra money to sustain (however anemically) the hundreds of thousands of nonprofits, has passed. Plus, donors are more and more demanding of groups now. They want results.
And while many groups may struggle to move beyond antidotes to better articulate their already amazing economic results, there are assets available in every community that can help speed up the transition.
EVERY university and college is brimming with a generation raised doing service, and they would readily embrace the opportunity to help groups measure, and then use new media outlets to market themselves, with gusto.
There are also well-skilled Baby Boomers surging into the sector, equally anxious to be part of rocking their community. The only thing we have to fear is the fear of opening up to change and embracing new ideas. That will be particularly hard for older leaders, or founders who have so much invested in their vision or systems. I understand that trepidation… up to a point.
To be honest, human service nonprofits ask for that kind of courage everyday from the people we serve. Since 1989, we at the DC Central Kitchen have asked that of the recovering addicts and ex-cons who come looking for a second or third chance at change. Shouldn’t we in the sector be equally willing to let go of old habits and be open to new ways of making money? I think so.
Nell: You have worked in social services, feeding and finding jobs for the homeless. Are social problems like hunger, homelessness, poverty ever solvable without fixing the underlying infrastructure inequalities that caused them in the first place? How can and should a nonprofit work to solve something that has a much larger underlying cause?
Robert: I divide my time 49/51.
49% is spent helping colleagues at The Kitchen, or any nonprofit, work stronger, better, faster. But that’s all I’ll give to traditional charity, no matter how bold the effort.
Why? Because grant-funded charity cannot solve the problem. It’s beyond the ability of nonprofits—socially, politically and economically.
That’s why I devote 51% of my energy to forwarding tactics and strategies that help us as a sector (and we as a country) develop the civic courage, economic open-mindedness and political will required to finally root out, root causes.
That was why I Co-Convened the first Nonprofit Congress in 2006. I wanted to challenge the canard that the sector is too diverse to find common ground. I wanted to help inspire groups to climb out of their individual silos and embrace our shared opportunity to change the rules of the game, versus continuing to play by outdated (and economically flawed) dictates.
Most of all, I wanted us to be directly involved in the wide-open Presidential race of 2007 and the dozens of Governor’s races of 2010. I wanted to challenge candidates to vie for our votes, not take them for granted. I still believe that this is the strategy we need to take.
That is why, on Nov 4th, I launched CForward, a PAC (political action committee) for nonprofits. Our goal—to openly support and help elect a new generation of legislators who show up on day one, fully invested in partnering with nonprofits to strengthen the economy.
Admittedly, CForward is a long term strategy for change, but I advance immediate, on-the-ground tactics with equal audacity.
One of many ideas I think could move the dime involves mergers. Not in the two-become-one model, although that’s essential in the current economic climate. No, I’m talking about merging things that matter. If, for example, the top 25 nonprofits in any town merged their banking business and shopped their combined cash-flow, they could leverage their assets and advocate for seats on the board of the bank and work for access to capital (rather than remain encumbered by the grant system).
Another version–what if we developed a “nonprofit seal of approval” for businesses? We could suggest that if citizens wanted to decrease the need for charity, or lower taxes—they could support businesses that we identified as providing good wages, healthcare or other benefits that would decrease demand for services and increase independence. Imagine if we directed our 90 million volunteers to see daily commerce as philanthropy!!
That’s what interests me. What resources do we have and how we can use them differently?
Nell: You are sometimes viewed as a renegade in the nonprofit sector, in that you are not happy with the status quo and you challenge nonprofits to do more and better. Since the nonprofit sector is such a consensus-driven, collaboration-oriented one, have your opinions served you and your work well or ill?
Robert: The better question is; “Has consensus served the sector well?” I genuflect to the power of being open and inclusive, but I think consensus has been used as an excuse for inactivity. Fraternity has been used as a shield to stifle critical review of groups or ideas whose time has passed. The perceived lack of unifying forces has left us fighting each other for scraps. And our silo mentality has left us politically weak at the very moment we should be advocating for a more pronounced role in strengthening the economy. We are 10% of America’s economy. There are 100 million people who work at, or volunteer with, a nonprofit. Of greater potential is the 90 million strong Millennial generation that has been raised doing service and who are now beginning to flood out of schools. They are out of work. They are poor, pissed-off and plugged in. And they are our natural allies in pursuing new policies.
In short—why should we occupy the streets when we can take over the town.
If the organizations that purport to lead the sector can’t bridge the barriers that divide us and help us find common ground to build upon, then I say it’s time for new leadership.
Nell: You have strong opinions about what nonprofits should do differently, but what about philanthropists and government? Where do they fit into what needs to change in the social sector?
Robert: We are ALL trapped by charity.
It is rooted in all faith traditions and deeply ingrained in the American experience. Yet, it is driven by the “redemption of the giver, versus the liberation of the receiver” power dynamic. That flawed flow cascades down from government and foundations to nonprofits, and from nonprofits down to those we “serve”. None are truly liberated, and each resents the other. What’s important to recognize is that it’s not the players who are flawed, it’s the game itself.
I work for the day when nonprofits are viewed, rightly, as equal partners in the American economy. For those who would scoff at that idea, I suggest they ask any Chamber of Commerce what makes a town or state attractive to business. You know what they will include on ANY list? Quality healthcare. Vibrant arts & culture. Access to higher education. Strong communities of faith. A clean environment and recreational space for families.
Our work enables businesses to make profit, yet, we settle with token grants. We are told that we cannot be openly political when businesses can post placards in their windows for candidates who they feel represent their interests. I say it’s time to re-negotiate.
I believe our country’s economic future rests on re-aligning the sectors, and being bold enough to see opportunity beyond current constraints or lines of demarcation that divide our resources when we should be aligning our assets.
Nell: What do you think about the recent growth of double-bottomline investing and for-profit social enterprises? Do you view for-profit social entrepreneurs, and those who invest in them, as competitive or additive to the nonprofit sector?
Robert: I believe the only sustainable future for philanthropy is for cause and commerce to be interwoven.
We still cling to two ideas about money—Friedman’s notion that business exists to make money for investors, and Carnegie’s idea (still foolishly forwarded by Gates and Buffet) that you should give money back at the end of your life, often attempting to offset the damage made by the very pursuit of profit.
Both are boring, outdated, and flawed ideas…and each rests on the participation of a benign consumer, blinded by the role their purchases make in maintaining the status quo of the day.
For me, social enterprise isn’t about nonprofits making money; it’s about consumers awakening to the power of pennies. It’s Capitalism 2.0.
Gandhi used the boycott of table salt to get the British crown to the negotiating table. Dr King used the boycott of the dimes it took to ride the busses of Montgomery to crack racism in America. Chavez used the boycott of table grapes to finally get land owners to give migrant workers basic sanitation and access to education for their children.
Social enterprise builds on that proven power but flips the energy to a “buy-cott” , where we reward and incentivize corporate behavior we know will begin to offset the need for charity. It uses market forces to compel other businesses, however reluctant, to follow suit or fail based on how they make their money everyday.
Social enterprise opens that door.
But I’m also very deeply invested in new ideas about how we incentivize investment and performance in nonprofits.
For example, If you invested $1,000 in Microsoft in 1986, you now have over $500K in the bank. Yet, if you invested that same sum in the Grameen Bank, which has elevated millions of people out of poverty with micro-loans, all you were eligible for was a one-time tax deduction, because it’s a charity. Why not a new tax system where you could earn an increasing tax deduction based on the same return-on-investment formula as a dividend check if an organization can show verifiable economic return? Imagine regular people being able to attain wealth by investing in groups that make the community economically stronger or more civically secure? I do…and that’s why I think social enterprise is so exciting. It says you can develop a strong society and a vibrant, open economy at the same time.
But to move beyond social enterprise or micro-credit or empowerment driven nonprofits being a novelty, we need to elect people who understand that power, and turn to the nonprofit sector and offer opportunities and partnerships to see it grow.
That’s why I launched CForward…to work with other citizens who work at nonprofits to elect people who have that kind of foresight and courage. It’s not as hard as you might imagine, and it is so much closer than you think.
In our ongoing blog series, 10 Great Social Innovation Reads, below are my top 10 picks for the best reads in the world of social innovation in May.
But I’m sure I missed some great stuff, so please add your favorites from the past month in the comments.
- Three new books released recently argue in various ways that philanthropists need to get better at giving money away. The Economist gives us the skinny: Giving for Results.
- News organizations are having to reinvent their funding models, some of their innovative ideas for bringing money in the door could spark some thinking in the nonprofit world: Going beyond grants: Eight new ways news nonprofits are raising revenue.
- The Dowser blog argues that recent efforts to re-imagine the great American city aren’t bold enough: Creating the Sustainable City: Are Imagination and Leadership Enough
- Newsweek investigates the philanthropic investments billionaires have made in American public schools and claims that the results of those investments have come up quite short: Back to School for the Billionaires
- New Google research on people’s use of smartphones holds some interesting lessons for nonprofits.
- Any entrepreneur, social or not, has to fight moments of depression on the road to social change, the A Smart Bear blog tells us how to Fight Mini-Burn Out.
- From Amy Sample Ward, nonprofit social media maven, comes a great post about crowdsourcing versus community-sourcing and how and when nonprofits should take advantage of each.
- In a recent interview, Robert Egger, founder of DC Central Kitchen, argues that nonprofits need to rethink how they position themselves in order to really “move the needle”
- Nonprofit Tech 2.0 gives us Six Online Fundraising Tools You May Never Have Heard Of
- The Nonprofit Finance Fund is doing something pretty exciting with capital. They are directing $10 million in “change capital” to 10 performing arts organizations to help them “prepare for future growth and make changes to the way they operate.” NFF has a special page with resources and case studies about what they are doing: The Case for Change Capital in the Arts.
Photo Credit: Robby van Moor
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