The Road to a Better World is Jammed with Red Bikes

Note: This post originally appeared on the Change.org Social Entrepreneurship blog last year.

There is something pretty amazing going on in Denver, and it might just change the world. B-cycle, a nonprofit that provides rental bikes around the city, has found a cheap, fun way to make Denver a cleaner city and its inhabitants and visitors healthier.  I spent last weekend playing tourist in Denver and the experience was made so much better, and cleaner, because of the rows of red B-cycle rental bikes around the city. Denver is demonstrating that change really is possible, especially when it’s easy and fun.

Denver is the first U.S. city to do what European, Canadian, Chinese and Mexican cities have already done–share bikes. Here’s how it works. You buy a short or long-term “membership” via credit card online starting at $5. Then grab one of the 500 bikes waiting for you at the 50 kiosks around the city (found through a pretty cool iPhone app) and ride. When you’re done, return it to any of the kiosks, and your card will be charged for the amount of time you rode. The first 30 minutes are free, and it goes up in increments of around $1-2 for each 30 minutes after that.

As tourists, my husband and I found enormous value in B-cycle. Because of the availability of the shared bikes, we decided not to rent a car. By the end of 3 days we had (according to the computers embedded in our bikes) ridden 49 miles, burned 1,944 calories, created a carbon offset of 46 pounds and saved $25.76 in gas money. In addition, we saved about $150 in rental car costs and parking.   Our total bike rental fees was only $26. So we saved about $150 in costs, got some fabulous exercise, did not pollute the city, and actually got a much more intimate view of the city than we would ever have by car. Not bad for a holiday weekend.

But it’s not just for tourists, by far. The idea is that Denver residents can climb on a bike “for trips that are too far to walk but too short to drive.” With a shared bike you can run an errand, get out for a bit at lunch, travel from the bus stop to your office, and much more.

Denver’s B-cycle program is actually part of a national B-cycle organization, which is a partnership between Humana, Trek Bicycle and Crispin Porter + Bogusky. Denver is B-cycle’s first installation, but according to their online vote of which cities B-cycle should expand to next, they have big plans for growth. And in fact, Boston and Minneapolis are already slated to install bike sharing programs later this year.

Denver’s B-cycle is funded through an impressively diverse mix of corporate sponsorships (like lead sponsor Kaiser Permanente), federal energy block grants (no city funding), foundation grants and earned income (through memberships and usage fees). I haven’t seen their financials, but I’d guess that in a few years when user volume is high enough they could probably become self-sustaining, the holy grail for nonprofit organizations.

What makes me most excited about B-cycle is that it is solving several problems simultaneously, yet it is incredibly simple and fun, making it much more likely that people will adopt the solution. B-cycle truly proves the Fun Theory, that change is possible when it’s fun to change.

Photo Credit: Denver B-Cycle

Tags: B-cycle, bicycle sharing, corporate sponsorships, Fun Theory, public transportation, social change, Social Entrepreneurship, transportation issues

The Balance of Heart and Head

In the work of social change there is a constant and necessary tension between heart–the human emotions of love, empathy, anger that force us to work for social change, and head–the strategy, systems, and measurement that demonstrate whether that change is happening. Two recent books provide a nice demonstration of this ongoing balancing act between head and heart. Work on Purpose by Lara Galinsky from Echoing Green describes how the early experiences of five social entrepreneurs shaped the social change careers they eventually were drawn to. And Robert Penna’s The Nonprofit Outcomes Toolbox, provides a great step-by-step guide for a nonprofit wanting to explore the increasingly necessary world of outcomes measurement. The two books taken together, although very different in tone, content and presentation, actually provide a nice reminder of the importance of balancing heart and head in social change efforts.

Work on Purpose chronicles five Echoing Green Fellows and the paths their lives took to eventually become social entrepreneurs. The stories are fascinating, inspiring and eye-opening. Any social entrepreneur will recognize their own journey here, from some pivotal moment in childhood when they felt empathy that drove them toward social change, to the frustrating pressure to stay with a more traditional career path, to eventually breaking free and melding their passion and talents to work for social change.

In writing this book, Lara hopes to encourage others who are just starting out, and perhaps those who have not yet found their right career, to reflect on their larger contribution and the role they want to play: “What social footprint do you want to make? What is your problem to own? What gifts do you have to offer to the world? What path do you want to take?” Indeed, there is increasing interest and energy among the millennial generation to create a career around solving social problems. This book encourages that trend and helps people make it a reality, as Lance Armstrong and Doug Ulman write in the introduction to the book: “We all have an obligation to bring positive change to our communities and our world. Fulfilling that obligation requires the boldness not only to envision a better world, but also to recognize your ability to to make that world a reality.”

But social change is not all about passion and the individual social entrepreneurs who bring their vision to reality. It also must be about measuring outcomes in order to determine if all of that effort is really resulting in anything. And to help bring clarity to the often misunderstood and muddy world of outcomes measurement, Robert Penna has written a new book. The Nonprofit Outcomes Toolbox, guides nonprofit leaders (but really, any social entrepreneur) through the process of understanding what outcomes are, how to create the right ones, and then how to measure them.

His book is a much-needed tool for social change efforts because although there is increasing interest in demonstrating outcomes, outcome measurement can be so difficult and costly to pursue. Many organizations have simply abandoned the effort because they can’t wrap their heads around it, let alone afford it. But Robert provides a step-by-step, practical, common-sense approach that allows organizations to understand the power of outcomes and create the right ones for them. Finally there is a tool that makes outcome measurement a potential reality for all social change organizations.

In any effort to create significant, sustainable social change you must balance an empathetic vision with a systematic, measurable way to execute on that vision. These two new books provide the social entrepreneur the tools to do both.

Tags: balance of heart and head, Doug Ulman, Echoing Green, Lance Armstrong, Lara Galinsky, outcomes measurement, Robert Penna, social change, social change careers, social entrepreneur careers, social entrepreneurs, The Nonprofit Outcomes Toolbox, theory of change, Work on Purpose

Connecting Government & Philanthropy: An Interview with Rene Cabral-Daniels

In this month’s Social Velocity interview we are talking with Rene Cabral-Daniels, head of the Council on Foundations’ Public-Philanthropic Partnership Initiative that works to connect government and philanthropic resources in order to create bigger, better solutions to social problems. Rene has been a leader in both government and philanthropy, including roles as director of the Office of Health Policy and Planning for the Virginia Department of Health, and as vice president for grant programs at the Williamsburg Community Health Foundation.

You can read all of the interviews in our Social Velocity interview series here.

Nell: What are the goals of the Public-Philanthropic Partnership Initiative, what impact do you hope to have on social change efforts in this country?

Rene: The goals of the Public-Philanthropic Partnership Initiative (PPPI) are exciting ones as they reflect a growing desire by a number of entities within philanthropy to better collaborate their similar investments in social change with government to achieve enhanced impact and effectiveness. Philanthropy can, and should, be a key player alongside the public and private sectors to help the nation accelerate the pace of its response to emerging challenges. For philanthropies seeking information, context and guidance on partnering with government to advance the common good, the PPPI will facilitate the flow of information, ideas and opportunities between philanthropy and government and elevate promising practices and models so that partnership achievements transcend administrations. Essentially, the PPPI serves as a conduit between foundations and the federal government to substantially increase the quality and quantity of government-philanthropic collaborations. The PPPI has three major goals:

1. Catalog current opportunities and develop tools and resources to enable foundations, large and small, to successfully partner with government;
2. Generate timely analysis and commentary to increase awareness and understanding among the foundation community and government about all aspects of public-philanthropic partnerships and PPPI; and
3. Position the Council as an intermediary for public-philanthropic partnerships.

The PPPI’s potential for impact on social change efforts in this country is like no other. When one considers the overall goal of philanthropy to promote its investments and partnerships to enhance real change – new solutions to old, enduring problems then the PPPI’s emphasis on partnerships assures a longstanding, meaningful impact that coalesces the sector’s greatest resource- its intellectual capital. While the financial capital of some funders may be greater than others, every funder has significant intellectual capital in what works as well as what does not work in addressing a particular challenge. Thus, every funder has the capacity to effectuate meaningful change in the areas that they fund. The Council assures that the Public Philanthropic Partnerships are not and cannot be simply the domain of a few large foundations that partnered with one administration at one point in time. Thus, the PPP supports the desire of many foundations (of all sizes and missions) which choose to collaborate with public sector agencies in ways that enhance the delivery of common program missions.

Nell: Connecting foundations and government is a pretty new idea, why has the Council created this initiative and what is it about this particular time that seems right for something like this?

Rene: When I first came to the Council, I thought the PPPI was a new idea. However, after researching the history of philanthropy, it became clear to me that public-philanthropic partnerships have not only been around for a very long time but that there have been a number of successes that continue today such as the existence of public libraries, elimination of diseases such as yellow fever and the creation of the Head Start program. Another fascinating fact I learned while researching the history of philanthropy is that the foundation for public philanthropic relationships within the federal government was set under the Reagan administration. Reagan’s early activities as President was to urge the country to, “get the private sector in the driver’s seat so we can start using market incentives and philanthropy to find lasting solutions to community problems.” He highlighted the role of philanthropy by, among other actions, declaring the first National Philanthropy Day in 1986. Clearly, President Reagan recognized the leadership role of the philanthropic community within the private sector. He created the base for successful public-philanthropic partnerships that continue to this day. Recognition of philanthropy’s role did not end with his administration. Successive administrations have likewise partnered with philanthropy to solve intractable social problems. One great example is President Bush’s President’s Emergency Plan for AIDS Relief, also known as PEPFAR, which serves to help save the lives of those suffering from HIV/AIDS around the world. The current administration’s creation of the Office of Social Innovation and Civil Participation merely elevates the important role of philanthropy recognized by earlier administrations, by dedicating an office that exists to leverage as well as scale up public-philanthropic partnerships. Like the government, the Council’s history with public-philanthropic partnerships is about as old as the Council itself. Its recent creation of the PPPI capitalizes on government’s elevated interest in these partnerships, which is sure to transcend administrations.

While both the federal government and the Council have had a long history with public philanthropic partnerships, there is another important reason why the Council has created this initiative at this time. The PPPI furthers the Council’s goal to promote philanthropy in an important way. The PPPI leverages the Council’s promotion in a range of activities that fall into its four priority categories – connecting, convening, communicating, and building capacity. The Council’s strengths in these four areas are simply unparalleled within the philanthropic sector. As a connector, the Council brings together foundations and government agencies seeking partnerships that can enhance their common goals. The Council’s convening abilities allow it to bring different audiences together to learn from one another about topics essential to ensure strong and productive partnerships. As a communicator, the Council provides timely information to members, government agencies, and colleague organizations on existing or future partnerships, effective practices, emerging opportunities and available PPP resources. Finally, the Council enhances the capacity of philanthropy to participate in public-philanthropic partnerships both by utilizing the Council’s expertise and by aggregating the expertise of its members and colleague organizations. Thus, the PPPI provides a wonderful platform for the Council accomplish its overall goal to promote philanthropy.

Nell: How do you define successful public/philanthropic partnerships? What does that look like?

Rene: My answer may sound circular but I think a successful public/philanthropic partnership is one whereby a shared vision of success that was clearly considered, articulated and memorialized by both the government and philanthropic partners becomes a reality. In essence, both parties have to define success for themselves at the onset of the partnership. There simply is no magic formula for successful public/philanthropic partnerships as the definition of success is as variable as the number and types of partnership possibilities. To respond further to your question, I would like to highlight an excellent document from Grantcraft which funders might want to consider when contemplating potential public/philanthropic partnership engagement. It is called Working with Government and offers a host of important considerations funders should address when contemplating partnerships with government. Funders that decide to engage in public-philanthropic partnerships should then consider the Council on Foundations’ Public-Philanthropic Partnership Initiative website. This website offers a wealth of information about public philanthropic partnerships and highlights the Council’s engagement in a range of activities that fall into its four priority categories – connecting, convening, communicating, and building capacity.

Nell: Do you see philanthropists increasingly wanting to collaborate among themselves and with other funders, both government and private sector funders? If so, why?

Rene: While I have no quantitative data that can demonstrate a trend or an acceleration of interest in partnerships, it is clear from a number of sources such as conference session suggestions, affinity group and member inquiries as well as webinar participation that the desire to collaborate is very strong within the philanthropic sector. I suspect one very important reason is that the downturn in the economy has encouraged funders to reconsider the many benefits of collaboration in their efforts to scale up projects while possessing fewer resources. Funders are likely realizing that their collaborative efforts are not only enhancing their economic resources, but their human and intellectual resources as well. The questions the Council receives from its members regarding collaboration make it clear that they have realized that just as there are different types of partnerships, there are many types of collaborations and that certain types of funders are better than others when considering specific types of collaboration. For example, a collaborative effort that requires the entities to act quickly to solve a challenge where time is of the essence may not be the best fit for government. However, the government might be an ideal entity with which to collaborate if the activity involves addressing a long-term community health problem, such as child obesity.

Nell: Government has a tendency to get dismissed in social change efforts, particularly in recent years with the social innovation movement because government can be viewed as bureaucratic and slow to change.  Do you think government can be more nimble and adaptive to this new energy around social change efforts?

Rene: This question is best answered by providing some legal history. When President Roosevelt expanded the number of federal agencies in the early 1930s Congress became concerned that an important political doctrine of the Constitution requiring separation of powers between the three branches of government was becoming obfuscated. Our system of government has a system of checks and balances to assure one branch of government does not have too much power. One important concern with the federal agencies is that they had legislative, judicial and executive responsibilities without public input. Because of this concern, Congress passed the Administrative Procedure Act in 1946. It has been called “a bill of rights for the hundreds of thousands of Americans whose affairs are controlled or regulated” by federal government agencies. The APA requires agencies to keep the public currently informed of their structure, procedures and rules and provides for public participation in the rule making process. More recent examples of other laws that assure public participation in government decisions include the Federal Advisory Committee Act, which makes public all administrative procedures and hearings and the Government in the Sunshine Act, which makes agency meetings public.

While the need to assure the citizenry has adequate input into agency decisions is an important tenet of the American government, it also challenges the ability of government to act quickly. The private sector is not saddled with this important, yet burdensome responsibility. While the government may never be as nimble as the private sector in executing social change activities, its many resources can still be adaptive to new social change efforts. I think the more strategic funders will harness as well as leverage those resources in addressing social change challenges. Examples of some of these resources are as follows:

1. The government has a tremendous amount of relevant, longitudinal socio-economic data that are often underutilized because government lacks the ability to make these data user-friendly. Collaborative efforts between government and others to improve the utility of this rich resource can inform social change movement efforts going forward.
2. Another important resource that government possesses is the breadth of its workforce. Excluding postal workers, the federal government will employ 2.11 million people in 2011. To build on Justice Holmes’ analogy of a “marketplace of ideas”, the federal workforce offers a “supermarket” of ideas. This expansive knowledge base translates into a plethora of professional expertise that can be tapped to address the complexity of social challenges. The ability to harness the interest and energy of large numbers of people toward a particular goal is another related benefit.
3. Finally, the government’s history in addressing or attempting to address social change challenges might help to identify the circumstances under which some social change efforts have been successful, as well as the conditions which have frustrated past efforts.

So, I guess in a nutshell I would suggest those engaged in social change efforts acknowledge that while government strives to act quickly, it does not have the luxury of forsaking timely public notice and participation of its efforts. Also, because many social challenges are protracted, their resolution may require significant time. In social change efforts, government should not be relegated to a role whereby it is expected to act quickly but rather one whereby its many resources are appropriately tailored to inform the quick action of its partners.

Nell: Where do you think collaboration between government and philanthropy will be 10 years from now? What do you hope the future looks like?

Rene: In my opinion, the collaboration between government and philanthropy will be much more intricate than what we are seeing today and therefore the resultant successes that emanate from that collaboration will be more sophisticated. I think that the lines that separate the two will become a bit blurred as they build upon the successes of current public-philanthropic partnerships and learn to have realistic expectations of one another. In particular, I anticipate seeing a greater number of matching grants and cooperative agreements, sponsorships and co-sponsorships and the staff sharing.

Tags: Council on Foundations, Foundations, government philanthropic collaboration, Philanthropy, Public-Philanthropic Partnership Initiative, Rene Cabral-Daniels, social change, social innovation

Financing not Fundraising

Note: This post is the first in our ongoing blog series, Financing Not Fundraising.

As we approach the end of a pretty difficult year for nonprofit fundraisers, and look towards the start of what could be an equally difficult one, I’d like to outline a new vision for how the nonprofit sector gets funded.  Fundraising in its current form just doesn’t work anymore.  Indeed, traditional fundraising is holding the sector back by keeping nonprofits in the starvation cycle of trying to do more and more with less and less.

Really, what the sector needs is a financing strategy, not a fundraising strategy.  By that I mean that nonprofits have to break out of the narrow view that traditional FUNDRAISING (individual donor appeals, events, foundation grants) will completely fund all of their activities.  Instead, nonprofits must work to create a broader approach to securing the overall FINANCING necessary to create social change.

What does this new approach to financing the nonprofit sector look like?  It looks like this:

1. Nonprofits understand that funding programs and general operating expenses is not enough to survive and thrive.  All activities that bring money in the door (individual donors, foundation grants, earned income, government contracts, loans etc) are integrated and part of a larger financing strategy that supports the short AND long term goals, as well as the programs AND infrastructure of the organization.




2. Nonprofits no longer segregate fundraising from their other activities (programming, administration).  All elements of a nonprofit’s operations, including the money-making ones, are fully integrated and moving forward together.




3. Individuals, who make up 80%+ of the private money entering the sector, become a greater focus of fundraising efforts, rather than corporate or foundation philanthropy (which make up 5% and 12%, respectively, of the private money entering the sector).




4. Fundraising messaging moves from an emphasis on the tin-cup mentality and donor benefit, to an emphasis on the social impact a  nonprofit is creating.




5. Money is raised to support not only the direct services that a nonprofit provides, but also the infrastructure (staff, technology, systems, evaluation, training) of the organization.  Nonprofits understand that they will only get better at delivering impact if they have an effective organization behind their work.




6. Other types of capital vehicles (like loans, equity) are added into a nonprofit’s financing mix.




7. Earned-income opportunities are evaluated and, if appropriate, launched.  Earned income is not right for every nonprofit, but it is worth exploring and analyzing opportunities as they come and understanding and being open to the revenue-generation possibilities.




8. The net revenue of every money-making activity a nonprofit engages in (events, individual fundraising appeals, corporate sponsorships, earned income, etc.) is calculated and evaluated.  Low net revenue activities are replaced with higher net endeavors.




9. Nonprofits move away from “push” fundraising and marketing efforts that force their message on innocent bystanders (like direct mail appeals) and towards “pull” fundraising and marketing efforts that bring interested donors/prospects to the organization (like blogs, Twitter, Facebook, friend-raising events, etc.)

There really is a better way.  Nonprofits don’t have to wear out their fundraisers, their donors, their staff and their message.  By working towards financing their efforts as opposed to fundraising for them, they can get a lot closer to social impact.

If you want to learn more about how to apply the concepts of Financing Not Fundraising to your nonprofit, check out our Financing Not Fundraising Webinar Series.

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

Tags: direct mail, Financing, Fundraising, nonprofit, Philanthropy, social change