Share Our Strength
Bradach asked leaders and thinkers in the scale movement – like Risa Lavizzo-Mourey from the Robert Wood Johnson Foundation, Billy Shore from Share Our Strength, Wendy Kopp from Teach for All, and Nancy Lublin from Do Something – to contribute their insights to the series. Bradach is doing this because he believes we have not yet figured out how to grow solutions to a point at which they are actually solving problems. As he wrote in his kick-off post to the series:
Over the past couple of decades, leaders have developed a growing catalog of programs and practices that have real evidence of effectiveness. And they’ve demonstrated the ability to successfully replicate these to multiple cities, states, even nations in some cases, reaching thousands or even millions of those in need. Despite all this progress, today even the most impressive programs and field-based practices rarely reach more than a tiny fraction of the population in need. So we find ourselves at a crossroads. We have seen a burst of program innovation over the past two decades; we now need an equivalent burst of innovation in strategies for scaling.
One of the places where scale has been an on-going topic of conversation is the annual Social Impact Exchange’s Conference on Scaling Impact. Now in its fifth year, this conference next month in New York City brings together “funders, advisors and leaders to share knowledge, learn about co-funding opportunities and develop a community to help scale top initiatives and build the field.” The conference is organized, in part, by the Growth Philanthropy Network, which “is creating a philanthropic capital marketplace that provides funding and management assistance to help exceptional nonprofits scale-up regionally and nationally.”
I’m excited to be attending this year’s conference and participating in a panel called “Business Models for Sustainability at Scale.” From my perspective, one of the biggest hurdles to scale is a financial one. Very few nonprofits have yet figured out how to create a sustainable financial model, let alone how to create one at scale. And this hurdle exists for many reasons, including: lack of sufficient capital in the sector, lack of sufficient management and financial acumen among nonprofit leaders, an unwillingness among funders to recognize the full costs of operation. So I’m excited to be part of this important conversation about how we can actually create financially sustainable scale.
It will be interesting to see how the conversations at the Scaling Impact conference – led by rockstars in the field like Antony Bugg-Levine from the Nonprofit Finance Fund; Tonya Allen from the Skillman Foundation; Heather McLeod Grant, author of Forces for Good; Paul Carttar from The Bridgespan Group; and Amy Celep from Community Wealth Partners – will relate to the perspectives of those writing in the “Transformative Scale” blog series. I wonder where there will be overlap and where there will be disagreement or even controversy. Scale is an incredibly difficult nut to crack. And as Bradach rightly states, no one has figured it out yet.
I will be posting to the blog during the conference about what I’m hearing and where there are common threads or separate camps.
I hope to see you there!
Image Credit: Social Impact Exchange
In today’s Social Velocity interview, I’m talking with Bill Shore. Bill is the founder and chief executive officer of Share Our Strength, a national nonprofit working to end childhood hunger in America. He has served on the senatorial and presidential campaign staffs of former U.S. Senator Gary Hart and as chief of staff for former U.S. Senator Robert Kerrey. He is also the author of four books focused on social change, including, The Cathedral Within.
You can read past interviews in the Social Innovation Interview Series here.
Nell: You’ve been on a (writing) kick lately encouraging nonprofits to make bigger, bolder goals. Which do you think comes first: bold goals or a sustainable financial model? And how are the two related?
Bill: Just as every journey aims toward a destination, every social change effort should start with a goal, bold or otherwise. A sustainable financial model, while critical, is a means to an end, not an end in and of itself. We began Share Our Strength with a financial model based more on cause-related marketing and corporate partnerships than on traditional fundraising. By leveraging the assets we’d created and delivering measurable value back to our partners, we generated significant revenues in ways that felt more sustainable. We were a grant maker to other organizations, and proud of the good work they did, but ultimately it was unsatisfying not connected to a bold goal.
Nell: The stated bold goal of Share Our Strength is to eradicate childhood hunger in America by 2015. That’s 2 years away. Will you get there? And how has your experience working toward that bold goal affected your thinking about how realistic bold goals are?
Bill: It’s a great question because a bold goal is a double edged sword. If you achieve it the market will reward you. And if you don’t it may penalize you. That’s all as it should be. But the real reason to do it is not the market or fundraising or the media, but for oneself. When you devote a lot of your life tackling tough social problems, you deserve to know whether you are moving the needle. We’ve seen the market reward Share Our Strength for simply setting the goal of ending childhood hunger by 2015. Our revenues have more than doubled, and that has fueled increased impact. We will not get all of the way to our goal by 2015. We will need more time. But we believe we will have earned it. In the states and regions where we have concentrated our resources we will have proven that childhood hunger can be eradicated. We believe that such compelling proof of concept will give us the support necessary to scale the strategy everywhere.
Nell: You have argued that nonprofits are not resource-constrained, rather that they “suffer a crisis of confidence” in investing in their own capacity. Some might argue that that’s easy for the head of a $40+ million nonprofit to say. How do you think the average nonprofit can move beyond the starvation cycle of never having enough resources?
Bill: It’s not that nonprofits are not resource constrained, it’s because almost all of them are that it is even more important to invest in their own capacity, to take a long view and be willing to trade off impact in the short-term if that impact can be multiplied dramatically in the long term. Imagine a maternal and child health clinic that serves 50 women a day and makes the decision to serve only 25 a day for 6 months so that it can invest in capacity that will enable it to serve 500 a day when the six months are up. The compelling nature of urgent human need makes that a tough decision to make, but it’s the right one if you have the confidence that more capacity will equal more impact.
Nell: Moving to bold goals necessitates a way to measure whether those goals have been achieved. Yet outcomes measurement is a very nascent practice in the nonprofit sector. How do we (or can we) get to a place where we are effectively measuring the results of both individual nonprofits and larger solutions? And who will pay for that work?
Bill: As your question suggests, measuring outcomes, and communicating what you’ve measured, comes at a price. Indeed it can be expensive, and that might mean less money devoted to program in the short-term. With few exceptions there won’t be third parties lined up to pay for it. Organizations will have to decide whether it adds to their long-term competitive strengths to invest in measuring outcomes and if it does, they should be willing to make that investment. A key task of organizational leadership is to marshal the will for these investments that don’t pay off until the long-term. The challenge is exacerbated by the fact that measurement is a still nascent practice, there won’t be common measure that can be adopted in a one-size-fits-all manner, and so each organization must wrestle to the ground the metrics that are right for their work.
Nell: What about bold philanthropy and bold government? Is it possible for those two sectors to be more bold? What would that look like and how optimistic are you that those kinds of changes are possible?
Bill: I’m confident that bolder philanthropy can lead to bolder government. Our politics currently is so polarized and paralyzed that people need to see examples of programs that work. Philanthropy can do things that government can’t do: take risks, innovate, and be closer to the people we serve. And when that all adds up to a program or service that works, it creates an even greater moral obligation on the part of the public sector, i.e. government to take what works and help scale it. Resource constraints and failures of imagination have conditioned us to pursue incremental change. But big and complex problems demand transformational change to address those problems on the scale that they exist.
Photo Credit: Share Our Strength
Since I was out of the office for part of July and checked out of social media (which I highly recommend!), the below list is in no way comprehensive. But it is what caught my eye in the world of social innovation in July (when I was paying attention). More than ever, please add what I missed in the comments below.
You can see the 10 Great Reads lists from past months here.
- In a highly provocative op-ed, Peter Buffett, son of Warren Buffett, wrote a pretty scathing rant against today’s philanthropy, calling it “conscience laundering — feeling better about accumulating more than any one person could possibly need to live on by sprinkling a little around as an act of charity.” Needless to say, much argument followed, including Howard Husock’s post arguing that Buffett is “far too pessimistic about what philanthropy, well-conceived, can accomplish.”
- Dan Cardinali, CEO of Communities in Schools and an emerging voice on the importance of measuring nonprofit outcomes, wrote a third piece in his series on redefining the nonprofit sector. This one explores the need for nonprofits to “hold ourselves accountable to objective measures and quantifiable outcomes.”
- And another nonprofit leader trying to shake things up, Bill Shore of Share Our Strength, offers the provocative “We Just Don’t Have the Money, and Other Fibs We Tell Ourselves“.
- Antony Bugg-Levine from the Nonprofit Finance Fund provides additional fodder to the conversation with his post “Navigating Tough Trade-offs in the Era of Scarcity.”
- Lucy Bernholz, philanthropy truth teller and future seer, offers three ways we can reinvent philanthropy in this great, short video brain dump.
- Kathleen Enright, CEO of Grantmakers for Effective Organizations, talks with Paul Carttar, former Director of the Social Innovation Fund, about what he learned there. It remains to be seen what impact the Social Innovation Fund will have, but as Paul says, government can and must play a role in social innovation, “The challenge for everybody — for government and for philanthropy — is to understand what each has to offer.”
- The New York Times uses Think Impact (which encourages entrepreneurship in third world communities) to provide an interesting case study of the dilemma of deciding whether to be a for-profit or nonprofit social change organization.
- Ever provocative, Phil Buchanan from the Center for Effective Philanthropy argues that the approach MBA programs take in teaching philanthropy “denies the reality that nonprofits and philanthropy work to address the problems that have defied markets…and, in many cases, are a result of market failure.”
- Writing on the Pioneers Post blog, Jeremy Nicholls takes issue with the word “impact” and encourages us to think about “value” instead.
- The National Committee on Responsive Philanthropy found that in 2011 American foundations increased unrestricted giving by 50% (from 16% of all grant dollars going to support general operating in 2010 to 24% in 2011). Now that’s an exciting trend!
Photo Credit: josue64
Bill Shore, founder of Share Our Strength, a nonprofit aimed at ending childhood hunger in America, wrote a really interesting post recently. He argues that nonprofits must be more bold, that the risk aversion that defines the sector is itself holding nonprofits back from creating change.
Shore encourages nonprofit leaders to figure out exactly what they are trying to accomplish:
Nonprofit organizations would be well served to step back from the day-to-day operations and ask themselves what success means, how will they know when they have accomplished their mission, and how will they measure it along the way. It sounds like common sense, but almost no one does it, in part because it’s so hard to do. But if you answer those questions with precision and clarity, and articulate the goal you hope to achieve, everything else falls into place.
And Bill is not alone in making this charge to the nonprofit sector. The Case Foundation, founded by Steve and Jean Case who made millions from AOL, has made its focus getting nonprofits to be more bold, to Be Fearless.
But if we are going to ask nonprofits to think bigger we have to address the elephant in the room: money. Nonprofit leaders often put themselves in a vicious cycle of thinking they don’t have enough money to be risky, so they don’t create ambitious goals, and then their lack of ambition impedes greater outside investment.
It is in fact the very act of being bold that inspires action and investment, that marshals resources to do the impossible. The most obvious example is John F. Kennedy’s 1962 charge to “to go to the moon in this decade.” At the time, the goal he set was crazy. NASA had no idea how they were going to make that happen, and they were already behind the Russian space program. But the very fact that the goal was set, and set so publicly, was inspiring. That simple act of inspiration moved people, money, resources. And Kennedy’s goal came to fruition in July of 1969. The impossible became possible simply because he set a goal.
Often nonprofit leaders are hesitant to set a bold goal because they know they currently don’t have the money, staff, relationships to make it happen. They don’t want to set a goal whose execution is not readily evident. So often nonprofit leaders start from a point of scarcity. They ask the question:
“How much can we accomplish with what we can raise?”
Instead, nonprofit leaders need to start asking the question:
“How much should we raise to accomplish our goals?”
It may seem like semantics, but I believe the distinction is profound. Instead of money holding you back, money becomes a tool to employ in accomplishing something much bigger. If you start by setting bold goals about what change you want to create, that very act, the act of putting a stake in the sand, can inspire. And that inspiration can attract the things you need to make your goal a reality.
In order to set bold goals, nonprofit leaders need to remember why they started their organization in the first place and why they continue to come to work each day. What is that passionate resolve that keeps you going every day? Why are you pouring your heart and soul into the work? What ultimately are you trying to change about the world we live in?
Start there. Create your bold goal from that place. Remove the obstacle of not having enough and watch how you suddenly have more than you could have ever imagined. That’s where real change begins.
Photo Credit: Mission Controls celebrates the moon landing, NASA.
I was out of town for the first half of July (and mostly away from social media), so I’m probably not qualified to give a 10 best list for the month, but I’m still going to try (ha!). As always, please add what I missed (particularly this month) to the comments.
To me, July was about outcomes and measurement. As I mentioned in an earlier post, there is a growing drumbeat for social change organizations to measure what (if anything) they are changing. Some readers commenting on that post argued that measurement is not a new thing for the nonprofit sector. True, it’s not new, but its importance (to funders, ratings agencies, government agencies, etc.) is increasing dramatically. So those in the social change world must heed the call and understand the new reality.
As always, you can see the 10 Great Reads lists from past months here.
Here’s July’s 10 Great Reads in Social Innovation:
- In two back-to-back posts on the Full Contact Philanthropy blog, David Henderson explains how nonprofits have to get “smarter about how we allocate our scarce resources.” First by getting strategic about who they serve and then by focusing on outcomes.
- Bill Shore of Share Our Strength adds to the drumbeat by arguing “nonprofit organizations are failing to grapple with the threshold questions on which all else depends: what specific objective are they trying to achieve and how will they measure whether they have or have not done so. “
- In the Los Angeles Times, Jared Billings takes social innovation darling, Teach for America, to task by asking whether TFA can actually change student achievement if the majority of their teachers leave the profession after only two years.
- On the Mission:Innovation blog Nicole Wallace reviews Andrew Zolli’s new book Resilience and his argument that nonprofits must embrace a “new mind-set, one that emphasizes improvisation, ad hoc networks, and adaptation.”
- On the Forbes blog, Victor Hwang recapped this month’s Global Innovation Summit and the 10 Lessons on Growing Innovation that emerged from it.
- Maybe not everyone should be a social entrepreneur says Lara Galinsky, who (shockingly) works for Echoing Green, one of the biggest supporters of social entrepreneurs.
- And maybe not every nonprofit should scale, says John Brothers in a great two-part series on the Stanford Social Innovation Review blog.
- On what is quickly becoming one of my favorite blogs (Unsectored), Mark Hecker recounts the story of true collaboration between public, private and nonprofit sectors when a drug raid was turned into small business development and job creation.
- It looks like women may be changing the face of philanthropy in exciting ways. “Women are exerting a greater influence on how philanthropy is done as they accumulate wealth and use their clout to change the way funds are raised and distributed.” Cool!
- Echoing the comments of Vikki Spruill from the Council on Foundations, Rick Cohen argues that foundations need to be more transparent in their work.
Photo Credit: briarpress.org
- Download a free Financing
Not Fundraising e-book
when you sign up for email
updates from Social Velocity.
Sign Up Here
- Tired of begging your
board to raise money?
Learn how to
Build a Fundraising Board
in this month's
Social Velocity webinar.