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Social Entrepreneurship

Is The Nonprofit Sector Really Broken?

There was a bit of a dust up in the (social change) Twitterverse yesterday. Ryan Seashore from CodeNow wrote a post on TechCrunch arguing that the majority of nonprofits are “broken,” and should act more like for-profit startups in order to create impact. The post follows a similar line of other arguments over the years (most recently Carrie Rich’s argument that nonprofits should all become social enterprises) that the nonprofit form is so dysfunctional that it should be tossed out. But there is a real danger to this idea of abandoning the nonprofit sector.

As he often does so well, Phil Buchanan, from the Center for Effective Philanthropy, shot back against Ryan’s post, Tweeting (among other things):

Twitter

Debates like these are crucial not because of the entertainment value (although I do love good drama), but because they force us to uncover and analyze our underlying assumptions. Yesterday’s debate, and others like it, which take the nonprofit sector to task for being inefficient, broken, unbusinesslike, lay bare some false and destructive assumptions about nonprofits and about social change in general.

Ryan sees nonprofits as aging dinosaurs with “too much overhead, too much bureaucracy, and a lack of focus on impact. Everything feels slow.” But for real change to happen you have to integrate the institutions that already exist with the networks, or “startups,” that want change, as I discussed in an earlier post. The two (institutions and networks) must work together. Ryan’s argument that nonprofits need to be more like startups is fundamentally flawed because if everything were a startup, change wouldn’t happen.

To quote David Brooks from a recent The New York Times piece, “Post-Internet, many people assume that big problems can be solved by swarms of small, loosely networked…social entrepreneurs. Big hierarchical organizations are dinosaurs…[but] this is misguided…Public and nonprofit management, the stuff that gets derided as ‘overhead,’ really matters. It’s as important to attract talent to health ministries as it is to spend money on specific medicines.”

To be sure, in his blog post Ryan outlines some areas where many nonprofits could improve (becoming more focused, continually innovating, diversifying revenue sources, thinking big), but these are best practices that any organization (startup or established institution, for-profit or nonprofit) should embrace. It is simplistic and misguided to think, as Ryan writes, that “the nonprofit world must embrace the nimble ways of successful startups to become more effective, and do better.” I know its not sexy, but real social change is much more complex than startup versus institution.

So let’s move on from this either/or mentality. Effective social change requires institutions AND networks, it requires Millennials AND Boomers, it requires startups AND established organizations, it requires public AND private money (and lots of it), and it requires for-profit and nonprofit solutions. We are wasting our time (and our keystrokes) by creating false dichotomies. Let’s work together toward strategic, sustainable social change.

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A Monster List of Social Change Books

Monster ListIt’s Halloween again and that means it’s time for my annual Monster List of Resources (you can see past lists here, here, and here).

Today I’m focusing on social change books. I know, books are so over. We have become a society that is about fewer and fewer words, or really, fewer and fewer characters. But there is something to be said for spending 200+ pages really diving into a topic, exploring it and letting it change your point of view. Below are my favorite books in the social change realm.

I have reviewed some of these books on the blog, some I have not. Some are really old, others are brand new. And some are not about social change at all, yet I included them because I think they hold value for social changemakers.

Each of these books has helped me see my work and the work of social change in new ways, even if that was far from what the author intended. Perhaps you will think so too.

Here are my favorite social change books:

What are your favorite social change books? Please add to the list in the comments below.

Photo Credit: CBS Television

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A Summer of Nonprofit and Philanthropic Thought Leaders

Nonprofit leadersNow that Memorial Day has come and gone, and summer is (almost) upon us, I’m excited to announce that I’m doing something a little different on the blog this summer.

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 EggerRobert Egger
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 HendersonDavid Henderson
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.

 

jessamynJessamyn Lau
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.

AdinMillerAdin Miller
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 TomaskoLaura Tomasko
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

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The Tricky Work of Scaling Nonprofits

Social Impact ExchangeThe idea of “scale,” or growing to a point at which you are solving the underlying social problem, is a tricky one in the nonprofit sector and something that is a growing topic of conversation.

Jeff Bradach from The Bridgespan Group launched a new 8-week blog series on the Stanford Social Innovation Review blog last month about what he calls “Transformative Scale.”

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

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10 Great Social Innovation Reads: April 2014

social innovationControversy about whether Millennials will spend money differently than their parents to create change, arguments for greater philanthropic risk, examples of innovation in the arts, use of “Moneyball” in conservation and policymaking efforts, and the lure of online media to create social change. What more could you want from a month of social innovation reading?

Below are my 10 favorite reads from April. Please add to the list in the comments. If you want to see a bigger list, follow me on TwitterFacebookLinkedIn, or Google+.

You can also see all of the 10 Great Reads lists from past months here.

  1. Man, I love a good controversy. In April the Obama administration invited Millennial philanthropists to the White House to discuss next generation philanthropy. And The New York Times sent Millennial reporter (and heir to the Johnson & Johnson fortune) to cover it. Well, Jim Newell from The Baffler doesn’t buy the argument that Millennials are going to use money differently than their predecessors. But Jed Emerson and Lindsay Norcott think Millennials will actually take impact investing mainstream.

  2. And staying on the controversy train just a bit longer, William Easterly takes issue with celebrity famine relief efforts that ignore (and potentially make worse) the lack of democracy causing famine in the first place.

  3. Because achieving scale is incredibly difficult work, Jeff Bradach from The Bridgespan Group launched an 8-week series on the Stanford Social Innovation Review blog exploring how we achieve it. 16 thought leaders will “weigh in with their insights, struggles, and questions regarding the challenge of achieving impact at a scale that actually solves problems.”

  4. It seems that the arts, perhaps more than other issue areas, are on the front lines of innovation in order to stay relevant. And this month really brought those struggles home. First, the Houston Grand Opera has seen dramatic growth in audiences, bucking a declining trend elsewhere, by appealing to broader audiences. Perhaps the San Diego Opera could have learned something from Houston since their declining audiences (and poor governance decisions) have put them in danger of closing their doors. And ever at the ready with examples of how arts organizations are innovating and adapting, ArtsFwd released two case studies on how the Woolly Mammoth and Denver Center Theater Companies have embraced adaptive change.

  5. What’s with Moneyball (the movie and book about using data to drive major league baseball strategy) everywhere lately? Using data and smart strategy the Nature Conservancy is getting more effective at conserving bird habitats.  And David Bornstein thinks the federal government is getting into the game as well with an increase in data-driven policy making.

  6. The Pew Research Center just released a book, and corresponding interactive site, about the changing demographic face of America and how it could affect everything, “Our population is becoming majority non-white at the same time a record share is going gray. Each of these shifts would by itself be the defining demographic story of its era. The fact that both are unfolding simultaneously has generated big generation gaps that will put stress on our politics, families, pocketbooks, entitlement programs and social cohesion.”

  7. Should philanthropy embrace more risk? Philanthropist Laurie Michaels founder of Open Road Alliance, which provides funding to help nonprofits overcome unforeseen roadblocks or leverage unanticipated opportunities, thinks so. Michael Zakaras interviews her in Forbes. As she puts it, “Very few people in the finance industry predicted the economic collapse in 2008, and yet we ask NGOs to submit a plan that will be stable for several years, which is an impossibility in the best of circumstance.” Amen!

  8. On the NPEngage blog, Raheel Gauba answers the fascinating question: “If Google were a nonprofit, what would its website look like?”

  9. And speaking of nonprofits online, the PhilanTopic blog released an infographic summarizing the 2014 M+R Benchmarks Study about nonprofit online activity.

  10. Moving on to other forms of media, I love what’s happening with video games and the innovators who are adapting them to help solve social problems. Who knew that playing Minecraft could actually change the world?

Photo Credit: Mikel Agirregabiria

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Is There a Millennial Opportunity for Nonprofits?

MillennialThere’s an interesting trend emerging in the future workforce, and I think it presents a real opportunity for the nonprofit sector.

Americans are increasingly fascinated with the Millennial generation (those born between 1981 and 2000), largely because they are the biggest population cohort the U.S. has ever seen. Whatever they do is sure to have a big impact. I’ve been particularly interested in how they might affect how money flows to social change.

But now I wonder how they might impact the social change workforce.

There was a really interesting article recently about how Millennials are ditching traditional careers in favor of more creative, meaningful work:

A growing number of Americans are abandoning traditional jobs for work that is more hands-on and that they deem more meaningful. For some, it is out of necessity…many people, faced with diminishing corporate opportunities, have been forced into thinking like entrepreneurs. For many, it is a choice. Old-school artisanship—like craft brewing and shoemaking and the millinery arts—is on the rise. A nation of hobbyists and fine artists have brought energy and invention to (and made more than a few bucks on) websites like Etsy and Big Cartel. There’s a sprouting up of first-generation farmers. These days, it would not be odd to see a hedge-fund manager throw it all away to become a mushroom grower. Or a Google gearhead to take up textiles. Call it the New American Dream, where uncertainty is being spun into infinite possibilities, and a pathway to unexpected freedom and deep satisfaction feels like our birthright.

Their staggering unemployment, deepening distrust of corporate America, and civic-minded perspective (the most since the Greatest generation), have all combined to make the Millennial generation crave a creative, flexible and meaningful work life.

And that could be a boon to the nonprofit sector.

I wonder if over the next couple of decades, as Millennials take center stage in the workforce, we will witness people increasingly chucking the corporate ladder for something more meaningful and flexible.

Certainly many Millennials have already, and will continue to, flock to the emerging world of social entrepreneurship, which neatly combines their love of the entrepreneurial with their drive for social change, but not all Millennials can or will want to start their own thing. For the rest of them, I wonder if nonprofit organizations might attract their interest.

For so long nonprofits have struggled to attract and retain talent because of less competitive salaries and packages than their corporate counterparts. But perhaps those benefits are increasingly less appealing to the future workforce.

Now, what nonprofits have in spades – entrepreneurial approach, flexibility, social change – could actually become a competitive advantage. What if the nonprofits of the future become the sought after refuge of creative Millennials ready to make social change, not necessarily on their own, but as part of something bigger?

Definitely an interesting trend to watch.

Image Credit: onlinempadegrees.com

 

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A Monster List of Social Innovation Conferences

A Monster List of Nonprofit ResourcesToday is Halloween, which, in my world, means that beyond candy, and trick or treating, and pumpkins it’s time for my annual “Monster List of Resources.” A few years ago I started the tradition of offering a list of resources for nonprofit leaders on Halloween (you can see past lists here and here). Each list is culled from the much larger, constantly evolving list of conferences, organizations, articles, books, blogs, and reports on the Social Velocity Resources Page.

This year I want to focus on the ever-growing number of conferences in the social innovation space. I’m really excited by how many really interesting gatherings are occurring.

But what did I miss? Please add to the list in the comments below. And don’t forget to check out (and add to) the much larger list of resources here.

Happy Halloween!

Social Innovation Conferences

Photo Credit: Wikipedia

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4 Books That Made Me Think

I love to read, and when I’m not reading about nonprofits, philanthropy, and social innovation, I like to read pretty far outside that world to get a new perspective. In the last few months, four books in particular altered my worldview in pretty fundamental ways. And although these four books don’t discuss the social change sector, I share them with you because I think they hold real insight for social change leaders.

 

war of artThe War of Art

Steven Pressfield wrote this groundbreaking book in 2003 as way to help artists move beyond their blocks and create the art they were put on earth to make. But really this book is about much more. It is for anyone who struggles to find your true calling. For those of us working on social change, it’s a hard, hard, hard battle every single day. This book helps you determine exactly what your contribution is supposed to be and how to move beyond the barriers keeping you from making it happen. “Our job in this life is not to shape ourselves into some ideal we imagine we ought to be, but to find out who we already are and become it.” This book will help you get there.

 

lean inLean In
I know, there’s been much controversy about Sheryl Sandberg’s feminist manifesto about how women need to take charge of their careers. Honestly, I don’t really get the controversy because I think confidence (essentially what she is talking about) is a prerequisite to accomplishing anything in life. If you are only partially sure that you are where you need to be, and if you are only weakly asking for the change you seek, and if you are only mildly suggesting that people to join you, it won’t happen. This book could almost be about the nonprofit sector standing up and demanding to take their rightful seat at the table of economic growth, social change, public policy. “We hold ourselves back in ways both big and small, by lacking self-confidence, by not raising our hands, and by pulling back when we should be leaning in.” Come on social change leaders, Lean In!

 

quietQuiet: The Power of Introverts in a World That Can’t Stop Talking
A book about introverts may seem out of place in this list, but I found it tremendously insightful. I fluctuate between being an introvert and an extrovert, and I’m not a huge fan of labels, but Susan Cain helps you understand that your qualities are a tool to use in your work. As a social change leader, you must understand and tap into your unique skills and abilities (whatever they may be) in order to make real change happen. “We know from myths and fairy tales that there are many different kinds of powers in this world. One child is given a light saber, another a wizard’s education. The trick is not to amass all the different kinds of power, but to use well the kind you’ve been granted.” I loved the quiet wisdom of this book – it really makes you think, which introverts often encourage us to do.

 

The Big Enough CompanyThe Big Enough Company
This book is targeted to women entrepreneurs, which is why it originally appealed to me. But really, it redefines entrepreneurship. Adelaide Lancaster and Amy Abrams argue that the right business model is the one that fits your goals and passions. You should never make strategic decisions based on what people think you “should” be doing. And I would extend that to social change efforts as well, which are often led by a single individual who recognizes a problem and is passionate about a solution. Along the way they are told how “impossible” their solution is. But it’s critical to hold fast to your passion and build momentum around it. “It’s easy to let popular advice cloud your vision and confuse your goals, losing sight of what you sought to achieve in the first place…Deep down, we know better. We know that the real goal isn’t size (necessarily); it’s success. ”

 

These four books did what I think good writing should do, they made me really think (long after the last page) about my assumptions, my behavior, and the barriers standing in my way. They encouraged me to recalibrate and emerge stronger and (I hope!) more savvy.

What books have you read lately that made you think about your work differently? Please add to the list in the comments.

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