Social Velocity » Social Entrepreneurship

Listening to Nonprofit Beneficiaries: An Interview with Perla Ni

Nell Edgington — Thu, 13 Jun 2013 13:05:11 +0000

In this month’s Social Velocity blog interview, I’m talking with Perla Ni, CEO of GreatNonprofits. Perla was the founder and former publisher of the Stanford Social Innovation Review, the leading journal on nonprofit management and philanthropy. Prior to her work at SSIR, Ni co-founded Grassroots Enterprise, later acquired by global public relations firm, Edelman. A frequent speaker on nonprofits and philanthropy, she has been named a “Top Game Changer” by the Huffington Post.

You can read past interviews in the Social Innovation Interview Series here.

Nell: GreatNonprofits is an interesting spin on the growing nonprofit ratings market in that you gather consumer reviews of nonprofits. Why do you think what donors, volunteers, and clients have to say about a nonprofit is important to potential donors?

Perla: We think people with direct experience with a nonprofit, especially the nonprofit’s beneficiaries, are in the best position to tell us about the difference that that nonprofit has made in their life or their community.

In the seven years that we’ve been doing this, we have learned a couple of things about collecting beneficiary feedback. It’s not only the right thing to do – to empower the voice of beneficiaries so that they are treated with dignity – it is also the smart thing to do. It’s the smart thing to do because it is highly correlated with actual program outcome. We’ve seen the linkage between effective outcomes and organizations that collect and listen to their beneficiaries.

Although there are ongoing conversations about the best metrics for judging quality, there is agreement that, for almost every sector, consumer satisfaction and feedback drive quality through transparency and competition.

A trend toward human-centered design, where products are designed and rapidly iterated upon with feedback generated from users, is another example of how client responsiveness leads to improved outcomes.

GreatNonprofits has been collecting feedback about a wide variety of health, human service, arts and education organizations.

Nicole Molinaro, former executive director of Communities in Schools of Pittsburgh-Allegheny County, a Pennsylvania-based dropout prevention program serving at-risk youth, found great value in constituent feedback, “What interested us in being open to reviews from our constituents is really the desire to improve our services. Without hearing feedback about what we’re doing well and what we can do better, we really can’t make improvements in how we serve our kids.”

Due in part to feedback submitted by students, the organization added a student lounge as a safe, accessible place for the students to spend time in before and after programs.

In a recent GreatNonprofits survey of nonprofits, we found that a large number of nonprofits are listening to beneficiary feedback and some are taking action.

78% share reviews with board members
72% share reviews with staff
54% share reviews with volunteers
49% share reviews with donors
23% share reviews with clients
26% say reviews have impacted their operations

In fact, in Learning for Social Impact, a report for donors and foundations by McKinsey & Company, the number one recommendation given to funders is for them to “hear the constituent’s voice.”

These rich, detailed and concrete experiences from people who have actually experienced the work of the nonprofit—been fed by the food bank, helped by the after-school program—are a better way to discover the most effective charities than through tax forms. According to our survey of our users:

90% of donors say that reading reviews of clients help them understand the work of the nonprofit
80% of donors say that it influences their decision to give

Nell: How does a great customer experience (a review from a volunteer that had a great experience with a nonprofit) translate into a nonprofit’s ability to create social change? Or should or does a donor care about that?

Perla: In the excellent article “Listening to Those Who Matter Most, The Beneficiaries” in the Stanford Social Innovation Review, the authors show that, in the studies about school performance and patient outcomes, there is a high degree of correlation between listening to the student/patient and success.

Donors care about real world outcomes–how is my money helping?

Nell: What do you make of the growing debate about what information donors want and actually use in making their funding decisions? Do you think how donors make their giving decisions and what information they use to make those decisions has or is changing?

Perla: It starts with the donor. Donors want to improve the world, to make a difference. And the donors typically want to spend their time and money effectively. How do you find a nonprofit that is aligned with your passion and making a real difference on the ground?

Well, it requires listening to the voices of people on the ground – the ex-felon in a job training program, the student receiving mentorship, the volunteer who organized the environmental conference, the donor who visited the school in Cambodia – who have seen the first-hand impact of nonprofits.

These are not the usual people that donors listen to – they may be different from us in so many ways – income, class, geography, or race.

And if the donor wants to empower real, tangible changes in the lives of people and communities they want to improve, he/she needs to have the discipline to do that. It’s part of the first rule of philanthropy “don’t do something about me, without me.”

It’s a radical discipline, transparency and accountability that we must hold each of ourselves to, including the donor.

We don’t see this discipline as just funding decision-making. We see this as community engagement. The donor and the beneficiaries needs to be part of this philanthropic marketplace together to share insights on what works, what doesn’t yet and what could help to make a greater difference.

Nell: You were also the founder of the Stanford Social Innovation Review which is currently celebrating its 10th year. 10 years in to this world of social innovation what do you think we have to show for it? Have we gotten better at solving social problems?

Perla: If you Google “social innovation,” you get 648 million search results. This wasn’t at all the case 10 years ago! We pretty much invented that term.

One of the accomplishments, I think, is that social issues are no longer ghettoized as nonprofit issues. It’s not just a nonprofit problem or a business problem or a technology problem. Social innovation, which was always focused on finding new ways to solve problems, agnostic of the approach of the sector, is broadening our framework and ways that we network to achieve our goals. Now published by the incredibly prolific Stanford Center on Philanthropy and Civil Society, SSIR reaches business people, foundations, technology leaders, and nonprofits. Social innovation is about bringing an open, entrepreneurial outlook to enterprises – start-up and mature organizations alike. We’d also like to think that it helped popularize other concepts such as social entrepreneurship, which has blossomed into an area of study in school, as well as create a new kind of career identity. At the core is a belief in not being complacent, not doing the same old same old, or talking to the same people. It’s really about creating a broad mindset for ideas and different people.

Nell: Much speculation has occurred about what effect millennial donors will have on philanthropy, because of the huge wealth transfer they will enjoy, their large numbers and the new ways they are sharing information about their giving. What are your thoughts on how or if Millennial donors will change philanthropy?

Perla: Millenials are more civic-minded, more public about their giving and more likely to be bifurcated in their giving – give locally and internationally.

They may find the idea of donating to their parents’ alma mater or their parents’ charity as rather stuffy. They are a more connected, shop local, eat local, biking/walk generation – and so they are more drawn to the idea of helping their local community. They are also well-traveled and more connected internationally, so they have a high interest in giving internationally as well.

About the Author: Nell Edgington is President of Social Velocity (www.socialvelocity.net), a management consulting firm leading nonprofits to greater social impact and financial sustainability. Social Velocity helps nonprofits grow their programs, bring more money in the door, and use resources more effectively. For more information, check out Social Velocity consulting services and clients.

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10 Great Social Innovation Reads: March 2013

Nell Edgington — Fri, 05 Apr 2013 12:45:41 +0000

Perhaps it had something to do with the SXSW Interactive conference last month, but March was all about using technology in interesting ways to further social change. From crowdfunding, to a new giving graph, to credit card donations to the homeless, to engaging people in the arts and beyond, people are experimenting with technology for social change in really exciting ways.

Below are my 10 favorite social innovation reads in March. But let me know in the comments what I missed. And if you want to see my expanded list, follow me on Twitter, Facebook, LinkedIn, Pinterest or ScoopIt.

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

Crowdfunding is quickly becoming the hot new thing in the social change world. It remains to be seen if it is a game changer, but in the meantime take a look at some examples of how its being used here, here, and here. And while we’re talking about innovative use of technology to fundraise, Lucy Bernholz dissects some new efforts to donate to the homeless via a credit card.

Writing on the ArtsFwd blog, Anna Prushinskaya describes how some innovative arts organizations have used social media to effectively engage audiences in new ways.

I’m really excited about a new technology the Case Foundation is developing that will map your online search preferences to giving suggestions just like Google, Facebook and others currently use your search preferences to suggest products and services. (I’ll be interviewing the mastermind behind this, Will Grana, on the blog this summer).

I love to see nonprofits using new media (like video and infographics) to tell their story. Beth Kanter offers some easy tips for creating infographics. And speaking of cool infographics, check out this one on why slacktivists are more active than you think.

It seems “scale,” the social innovation buzzword of a few years back, is being redefined. Kathleen Enright, CEO of Grantmakers for Effective Organizations, describes a new report that expands the idea of scale and offers ways grantmakers can support it. And Ben Mangan, CEO of nonprofit EARN, spurs nonprofits and funders to move past “stifling incrementalism” and start working towards real scale.

Dan Pallotta ruffled some feathers, as is his way, with his TED Talk this month The Way We Think About Charity is Dead Wrong, and there were several responses. But I thought the most thought-provoking was from a group of professors from Boston who suggest that Pallotta’s argument that nonprofit salaries are too low only reinforces the wealth inequality of the American economy.

And on a related note, Dione Alexander, writing on the Mission and Money blog, explains increasing wealth inequality as a kind of bullying, noting “The social contract through which we assume shared responsibility for the community is broken.”

And since we are on the topic, this video about wealth inequality in America blew my mind. If you want a quick and dirty view of where America’s money goes, take a look.

As part of the ten year anniversary of the Stanford Social Innovation Review, Matthew Forti looks back at the past ten years of measuring nonprofit outcomes, the good, bad and the ugly.

Writing in the Duke Chronicle, Trinity senior Elena Botella argues that deciding when a public service should be privatized should be based on evidence, as she says “Humans respond to a profit motive, but we also respond to altruism, community values, prestige and pride in our work.”

Photo Credit: mendhak

10 Great Social Innovation Reads: February 2013

Nell Edgington — Mon, 04 Mar 2013 14:03:21 +0000

The gloves came off in February. There was enough criticism to go around from foundation decision making and use of evaluations, to Millennial social entrepreneurs, to American charity, to nonprofit versus for-profit, to the overwhelming politeness of the nonprofit sector, it seems everything was up for debate. But that’s okay with me — I think controversy can be an incredible aid for pushing thinking forward.

Below are my top 10 picks for what was worth reading in February in social innovation. But, as always, let me know in the comments what caught your eye over the past month. And if you want to see my expanded list, follow me on Twitter, Facebook, LinkedIn, Pinterest or ScoopIt.

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

The Center for Effective Philanthropy released a report on nonprofit performance assessment that criticized funders for 1) not being willing to pay for evaluations and 2) being more interested in data that is helpful to the foundation, not the nonprofit. Beth Kanter chimes in with some tools for becoming a “data informed” nonprofit.

While we’re on the topic of foundations, “transparency” is becoming a real buzzword for them lately, and Lucy Bernholz digs deeper into recent examples, while James Irvine Foundation president Jim Canales (who will be the subject of this blog’s March interview) practices some real transparency by reacting to recent controversy about the foundation’s new arts strategy.

And what about the flood of Millennials wanting to be the next great social entrepreneur? Writing on the Harvard Business Review blog, Mike McGlade provides a cautionary (and potentially controversial) tale to Millennials seeking to become a social entrepreneur. As he says “Before you don the social entrepreneur title and dive into building your enterprise consider if you need more experience to realize your idea. If you do, set down your entrepreneur ego and find a job. You need to get smart to make a difference.”

Does America, one of the most charitable countries, have a hard time accepting charity itself? The controversy surrounding a United Arab Emirates gift to Joplin, MO after it was devastated by a May 2011 tornado makes Jacqueline Pfeffer Merrill wonder if America is no longer the self-sufficient, munificent benefactor it once was.

In the Chronicle of Philanthropy, Caroline Preston describes how politeness is holding the nonprofit sector back. (It reminds me of this blog post a couple of years back).

The Dowser blog interviews Munro Richardson c0-founder of startup MyEDMatch, an innovative website that matches teachers with opportunities across the country, to address the problem of teacher turnover.

In keeping with the growing drumbeat to connect the disparate nonprofit sector, Beth Simone Novack calls for digitizing nonprofit 990 data in order to “help the neediest among us access better services, nonprofit providers to become more effective and efficient, and everyone to understand the role of the nonprofit sector in our economy better.”

The Nonprofit Finance Fund created a great graphic that demonstrates the core issues facing small nonprofits and what they and funders can do about them.

Writing on the Idealistics blog, David Henderson suggests a process, based on how businesses maximize profits, for how nonprofits can use data to maximize outcomes.

If you really want to change the world is it better to work in the nonprofit sector, or make money in the for-profit sector and give it away? William MacAskill and Brooke Allen provide a thought-provoking (and sometimes maddening) debate on the issue. MacAskill says don’t get a job at a nonprofit, and Brooke Allen argues Wall Street is not the answer.

Photo Credit: Tim Pierce

On MLK Day, The Perseverance of the Social Entrepreneur

Nell Edgington — Mon, 21 Jan 2013 14:23:06 +0000

Today we celebrate the life of Martin Luther King, Jr., a man who arguably could be called one of the first social entrepreneurs. The thing about social change is that it can be incredibly difficult, heart-breaking and time-consuming. It takes a tremendous tenacity to persevere until change comes.

One of my favorite quotes from Dr. King, which I think of often, counsels us to be patient and believe in change. Speaking on the steps of the Alabama State Capitol in March of 1965, King said:

I know you are asking today, “How long will it take?”….

I come to say to you this afternoon, however difficult the moment, however frustrating the hour, it will not be long, because truth crushed to earth will rise again.

How long? Not long, because no lie can live forever.

How long? Not long, because you shall reap what you sow….

How long? Not long, because the arc of the moral universe is long, but it bends toward justice.”

You can watch a clip of that speech above, or click here to watch it if you are reading this in an email.

And I’m also reminded of this beautiful blog post that Kjerstin Erickson, a social entrepreneur working with African refugees, wrote three years ago. As does any social entrepreneur, she had grown tired of the slow pace of change. But with King’s words she found solace and the will to move forward:

And yet, we’ve all found ourselves in moments like these. It’s part of the process of reconciling the world we want with the world we live in. To make it through such times, we often have no option but to turn to the words of those wiser than we. On this national holiday, it’s a fitting tribute to Martin Luther King’s legacy that to recognize the role that his words continue to play in the internal struggles of so many of us seekers. For me personally, King’s words on the human struggle for a loving world are the first I turn to when in need of clarity or solace. To me his brilliance lies in the way that he never told anyone anything new, but rather elucidated the truths they always already knew. If you find yourself struggling with any of the questions I asked above, perhaps you will, like me, find your answer within yourself through the words of these timeless passages.

All of us working toward social change must remember these words. There are times when the end goal seems so far away, when the hurdles appear completely insurmountable. It is at those very times that you must pick yourself up, take a deep breath, and move another step forward.

Who Should I Interview Next?

Nell Edgington — Fri, 18 Jan 2013 14:05:58 +0000

I’ve been doing the monthly Social Velocity Blog Interview for 2 1/2 years now and have talked with more than thirty inspiring leaders in the world of social innovation. But now I need your help.

Over the last few years, I’ve interviewed

Social investment gurus like Kevin Jones, Antony Bugg-Levine and George Overholser
Philanthropic thought leaders like Phil Buchanan, Lucy Bernholz, Clara Miller and Sean Stannard-Stockton
Nonprofit leaders pushing innovation forward like Dennis Morrow, Susan Comfort and Karina Mangu-Ward
Social entrepreneur startups like Erine Gray and Ted Howard
Sector activists like Robert Egger and Jeff Raderstrong

And many, many more.

It’s been amazing to hear from these leaders about where we’re going in the world of social change and where they hope to take us. You can see all of the past interviews here.

But now I’d like your ideas for who I should interview next. What all of these interviewees have in common is that they are people who are pushing boundaries, asking hard questions, creating new realities, making real social change. Who’s next?

So help me add to the list. If you have a suggestion for who I should interview next, leave a comment below or email me at info@socialvelocity.net. Thanks for your help!

Losing the Nonprofit Charity Mindset

Nell Edgington — Thu, 03 Jan 2013 14:38:07 +0000

Note: While I’m off during the holidays I wanted to provide some archive blog posts that you might enjoy. A version of this post originally appeared on the Social Velocity blog in November 2010.

Along with the burgeoning social entrepreneurship movement comes a bit of hubris that social entrepreneurs know better how to create social change than do the nonprofits that have been working on it for decades. We can’t dismiss an entire sector that has been working on social problems for years. However, I do think that there are some things that nonprofits can learn from social entrepreneurs. The most important is how to lose the Charity Mindset.

Nonprofits are sometimes referred to as “charities,” and it is a real misnomer and does a real disservice to nonprofits. A charity mindset is when a nonprofit, its board, funders or others promoting its work have a narrow view that the organization is benevolent, but not critical, to the world at large. The charity mindset assumes that a nonprofit starts from the position of need, inadequacy, and burden, rather than a position of opportunity, strength, and effectiveness. The charity mindset differs from a social entrepreneur mindset in a number of ways:

Symptoms vs. Solutions: A charity, by its very definition, exists to provide aid to the needy, not to solve the underlying cause of the need. This is not to say that every nonprofit can work toward solving an underlying problem; there will always be organizations that exist simply to provide basic needs (food, shelter, safety, etc.). But I wonder if too many nonprofit organizations view their work as residing in the “charity” camp, instead of working, as social entrepreneurs do, to understand the cause of the need and how how they may be able to attack and solve it.

Fundraising: A fundraiser in the charity mindset apologizes for the burden of asking someone for money, but a social entrepreneur offers investment opportunities to prospects. Wendy Kopp from Teach for America went around evangelizing the Teach for America story and sought investors who wanted to get in on the ground level of an incredible opportunity to change the American public education system.

Investment in Infrastructure: Charities spend every last penny on the program and leave little money for building the organization. Social entrepreneurs understand that it takes organizations, infrastructure, systems, and talent to effectively execute on a solution to a social problem.

Respect: Charities may be beloved by their supporters, but they may not garner a lot of respect from them. Social entrepreneurs behave as equal partners with funders in creating solutions, and, as such, they command and receive real respect from investors, volunteers, partners and others.

True Costs: Charities like to claim that as much money as possible goes to direct services, but social entrepreneurs recognize the true costs of their endeavors and are open and honest with funders about those costs. In fact they demand that funders understand and support those true costs.

I think the old adage is true, people will treat you the way you ask to be treated. If a nonprofit acts like a charity, people will treat it like one. Nonprofits need to stand up and demand to be treated as critical, equal partners in creating solutions.

Photo Credit: wolfgangfoto

Echoing Green Fellowship Application Goes Live Soon

Nell Edgington — Mon, 12 Nov 2012 14:35:33 +0000

It’s that time of year again. The Echoing Green application is about to go live. In their annual competition, Echoing Green looks for promising entrepreneurs starting up new organizations aiming to create large-scale social impact. The Echoing Green Fellowship awards up to $90,000 of start-up capital and two years of technical assistance to help get your organization off the ground. They fund nonprofit and for-profit startups.

The application will be open online from December 4th to January 7th, but you can get a head start by:

Reviewing the application questions
Reading the guide about how to answer the questions
Watching a few short videos on the application process
Signing up for informational webinars targeting underrepresented applicants (including African Americans, US Latinos, and women)

And while you are waiting for the application to go live you can also read my past interview with Lara Galinsky, senior vice president of Echoing Green and my review of her book, Work on Purpose.

To learn more about the Echoing Green fellowship or to access the application when it goes live, go here.

Good luck!

10 Great Social Innovation Reads: October 2012

Nell Edgington — Fri, 02 Nov 2012 12:48:04 +0000

It seems that October had two primary themes: moving nonprofits to measure outcomes and the evolution of philanthropy. The drum beat that nonprofits must find a way to measure what change they are creating has been growing louder, and every nonprofit leader would be wise to listen and understand this new trend. But in order to get to a place where most or all nonprofits are measuring outcomes, philanthropists must start paying for measurement. It is interesting to watch this all evolve.

Below are my top 10 picks for what was worth reading in October in the world of social innovation. And as always, please add what I missed to the comments. And if you want to see an expanded list, follow me on Twitter, Facebook, LinkedIn, Pinterest or my newest social media network, ScoopIt.

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

There were several great articles about the need for nonprofits to prove the change they are creating. Steve Boland at Nonprofits Assistance Fund kicked if off by encouraging nonprofits to compare their resources to the outcomes they achieve. The New Philanthropy Capital blog encouraged nonprofits to approach measurement with theory, courage and creativity. And on the Center for Effective Philanthropy’s blog, Lauren Gilbert provided a case study of BELL and how they measured outcomes.

And then to the ultimate question, “Will funders pay for measurement?”. Beth Kanter asks the question What is the Funder’s Role in Supporting Good Measurement? and Mario Morino (author of Leap of Reason) weighs in. And Phil Buchanan, CEO of the Center for Effective Philanthropy, argues “Foundations must step up and support robust nonprofit performance management systems.” Oh yes, please.

Writing in the New York Times Paul Sullivan explores how the advent of impact investing is pushing philanthropists to measure the impact of their dollars.

Even though the premier social entrepreneurship conference, Social Capital Markets, was in September, there were two great round-up blog posts about how SoCap moved the conversation about investing in social entrepreneurship forward. First was Jeff Raderstrong’s argument that we need to beware of the hype around impact investing and focus on solutions to social problems. And Christine Egger wrote a fabulous post on the Idealist blog about new ways to think about, fund & inform social change.

There were a couple of great posts about (the really sexy topic of) nonprofit budgeting. It may sound dry, but a nonprofit’s budget is an incredibly powerful tool for creating social change, so the more organizations that can harness that tool, the better. On the Nonprofit Finance Fund blog, Peter Kramer demonstrates how to connect your budget to your overall organization strategy. And Kate Barr argues that breakeven budgeting is the “biggest barrier to nonprofit financial health.” Amen to that!

Two great pieces this month from Lucy Bernholz who always makes us think, especially about the future. First is her piece on libraries and the future and then her laundry list of things we can no longer assume about the world around us.

I always love a well done infographic and PhilanTopic offers one with their Nonprofits’ Impact on the Economy.

Writing on the Social Earth blog Ashok Kamal reminds us that the work of social change is an exhausting roller coaster and we all need some “inspiration capital” to keep us going.

Nancy Lublin, CEO of DoSomething.org, describes that for the millennial generation, innovation is the status quo and they are “poised to bring the social and business worlds closer together – tying profit to social change, and strong local communities to a new global society.” Let’s hope!

It looks like the old is becoming new again as cities revive the idea of public, inner city markets.

Photo Credit: x1klima

A Monster List of Resources For Nonprofit Innovation

Nell Edgington — Wed, 31 Oct 2012 14:31:15 +0000

Since today is Halloween I wanted to continue a tradition I started last Halloween of providing a list of resources about nonprofit innovation. I’ve created the list below by culling from our constantly evolving and much larger list of resources on the Social Velocity website. Below I’ve handpicked the tools I think are most useful for wielding the money sword, connecting to the larger social innovation movement, and finding inspiration. Please add to the list in the comments of this post.

Happy Halloween!

Wielding the Money Sword

Connecting to the Social Innovation Movement

Finding Inspiration

What have I missed? What books, conferences, articles, tools do you find inspiring and insightful? Add to the list in the comments.

Photo Credit: dimland

Speaking About a Theory of Change

Nell Edgington — Fri, 26 Oct 2012 13:49:17 +0000

As I mentioned in an earlier post this week, I spoke at the Women’s Collective Giving Network’s national conference last week about the Power of a Theory of Change. I have been doing a lot of speaking to nonprofit conferences, boards, donors and other groups around the country this year, and I love it. I get really excited about helping people see things in new ways.

If you’d like to see a clip from my Power of a Theory of Change speech, you can view it below, or by clicking here to watch if you are reading this in an email.

Some of the other topics I speak about to nonprofit boards, staffs, donors, conferences include:

Financing not Fundraising
Where Nonprofits Fit in the Social Entrepreneurship Movement
The Future of the Nonprofit Sector
Jump Starting Your Board
Creating a Financing Plan
Messaging Impact
Creating a Succession Plan
Leading Honest Conversations Between Funders and Nonprofits
The Critical Connection Between Mission and Money

If you are interested in learning more, go to the speaking page of my website, or click here to download a one sheet to get more information.

If you’d like to learn more about my fees and availability for speaking to your group, email info@socialvelocity.net.