10 Most Popular Posts of 2011

As 2011 comes to a close, I wanted to provide a list of the ten most popular Social Velocity blog posts this year. Then I’m taking a break from the blog until January.

I hope you all find time over the holidays to relax, unwind and spend time with friends and family. Thank you all for reading and contributing to the Social Velocity blog this year. I really appreciate all of my readers and look forward to talking with you in the new year. Happy Holidays!

The 10 most popular Social Velocity blog posts of 2011 were:

1. 5 Lies to Stop Telling Donors
2. The Financing Not Fundraising Blog Series
3. 10 Great Social Innovation Reads: November
4. The Problem with Strategic Planning
5. 5 Nonprofit Trends to Watch in 2011
6. 4 Things Every Nonprofit Needs
7. What is Social Innovation?
8. A Step-by-Step Guide to Creating a Nonprofit Revenue Plan
9. 7 Things Board Members Can Do to Raise More Money
10. Why Nonprofit Overhead is Destructive

Photo Credit: Charline Tetiyevsky

Tags: financing not fundraising, nonprofit board fundraising, nonprofit donors, nonprofit overhead, nonprofit revenue, nonprofit strategic planning, social innovation

10 Great Social Innovation Reads: November

November was another great month in the world of social innovation. Here is my pick of the top 10 posts, articles, graphics, and discussions. As always, please add your favorites from the month to the comments. And if you want to see a longer list of what catches my eye, follow me on Twitter @nedgington. You can also read past months’ 10 Great Reads lists here.

1. Some very interesting reports and predictions on how nonprofits and philanthropy are changing. First, the Philanthropic Ventures Foundation predicts a pretty exciting future for philanthropy. And Blackbaud released a report on what 35 experts think it will take to grow philanthropic giving in the US. And finally the 2011 Nonprofit Almanac is out. The annual report shows the nonprofit sector growing and that giving is back to 2000 levels




2. DC Central Kitchen founder and nonprofit sector advocate Robert Egger launched a new group called CForward to help nonprofits fight for their rightful place at the political table.




3. The Washington Post gets into the social innovation business by launching a new “On Giving” section to discuss philanthropy, social entrepreneurship, socially responsible business and much more.




4. The Nonprofit Finance Fund offers a great worksheet to assess a nonprofit’s strengths and weaknesses in order to link their financial health to their impact. Love it!




5. HubSpot offers a great infographic on pull vs. push marketing, but I’d argue it applies to fundraising as well.




6. The Alliance for Global Good is launching a $10 million fund to promote innovation in philanthropy. The new fund will “draw attention to charities that have found new approaches to tough problems and provide money to help them expand their work.”




7. On the Unsectored blog Jeff Raderstrong encourages us to start asking the right questions about the charitable deduction currently the focus of so much debate.




8. Always one to tell it like it is, Mario Morino from Venture Philanthropy Partners offers 6 Wrenching Questions Every Board Member Must Answer.




9. Jim Kucher argues on his blog that there is a bipolar disorder in social entrepreneurship, between the competing, and sometimes conflicting, social and business perspectives.




10. Tom Tierney, chairman of Bridgespan Group, a nonprofit consultancy, has written a paper, “The Donor-Grantee Trap, about the dangers of the nonprofit starvation cycle. In a recent interview about it, he argues “Nonprofits should be clear about their definition of success, articulate their strategy for achieving success and be up front about what that costs. That includes understanding the organization’s true overhead costs and making a case for funding good overhead.” Amen to that!

Photo Credit: Sim Van Gyseghem

Tags: charitable deduction, Nonprofit Almanac, nonprofit board members, nonprofit trends, Philanthropy, Social Enterprise, Social Entrepreneurship, social innovation

A Monster List of Social Innovation Books, Blogs, Conferences, Funders

Since today is Halloween, I thought I’d offer a monster list of resources for nonprofit leaders, social entrepreneurs, philanthropists, board members and others involved in creating social change.

The following list comes from the Resources page of the Social Velocity web site. The page includes social innovation conferences, organizations, funders, blogs, books and other things that anyone involved in the social change space should be aware of. It could be a starting point or an ongoing exploration of what’s going on in the space.

We are constantly adding to the Resources page, so if we are missing something, let us know in the comments.

Organizations Moving Social Innovation Forward

Funders

• 130 Ways to Fund Your Social Venture
• Center for Effective Philanthropy
• Dell Social Innovation Competition
• Echoing Green
• New Profit
• Nonprofit Finance Fund
• Public-Philanthropic Partnerships at the Council on Foundations
• Robert Wood Johnson’s Pioneer Portfolio
• Sea Change Capital
• Unreasonable Institute
• Venture Philanthropy Partners

Conferences

• Accelerating Social Entrepreneurship in the Age of Austerity
• Bottom Billions Bottom Line
• Clinton Global Initiative Annual Meeting
• Conference on Scaling Impact (by Social Impact Exchange)
• FSG and SSIR Collective Impact Conference
• Grantmakers for Effective Organizations Conference
• Harvard Social Enterprise Conference
• Net Change Week
• Net Impact 2011 Conference
• NextGen: Charity
• The Nonprofit Management Institute (by Stanford Social Innovation Review)
• Opportunity Collaboration
• ReVisioning Value
• Skoll World Forum on Social Entrepreneurship
• Social Capital Markets Conference
• Social Enterprise Summit
• Social Enterprise World Forum
• Social Good Summit
• Social Venture Capital / Social Enterprise (Miami)
• Social Venture Network Conference
• Social Venture Partners International Annual Conference
• Sustainatopia
• The Feast
• UST Symposium on Social Entrepreneurship

Philanthropic Thought Leaders

• Blue Print Research and Design
• The J.W. McConnell Family Foundation
• Tactical Philanthropy Advisors

Things to Read

Blogs

• A Smart Bear: Startups & Marketing for Geeks
• About.com Nonprofit Charitable Orgs
• Against the Grain
• Beth's Blog: How Nonprofits are Using Social Media to Power Change
• Dan Pallotta: Harvard Business Review
• Deep Social Impact
• Dowser
• Full Contact Philanthropy
• GuideStar: Bob Ottenhoff Blog
• Money and Mission
• New Philanthropy Capital's Blog
• NFF's Social Currency Blog
• Philanthropy 2173
• PhilanTopic
• SocialEarth
• SSIR Opinion Blog: Nonprofit Management
• SSIR Opinion Blog: Social Entrepreneurship
• Tactical Philanthropy
• UnSectored

Financing Impact

• Beyond Fundraising
• Nonprofit Growth Capital, Building is not Buying
• The Nonprofit Starvation Cycle
• Social Finance
• Social Impact Bonds
• The Task Force on Social Finance
• Understanding Nonprofit Financial Statements

Using Social Media

• The Dragonfly Effect
• The Networked Nonprofit

Being Strategic

• Built to Last: Successful Habits of Visionary Companies
• Creating Public Value
• Forces for Good: The Six Practices of High-Impact Nonprofits
• Good to Great
• Good to Great and the Social Sector
• Leap of Reason: Managing to Outcomes in an Era of Scarcity
• Strategic Management of Charter Schools

Finding Inspiration

• Getting to Maybe: How the World is Changed
• How to Change the World
• One Day, All Children…: The Unlikely Triumph Of Teach For America And What I Learned Along The Way
• Social Innovation Generation
• The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World
• The Social Innovation Dynamic
• Work on Purpose

Growing Solutions

• Franchise Organizations
• Scaling Social Impact: Strategies for Spreading Social Innovations. Stanford Social Innovation Review
• The Five Meanings of Scale
• The Nonprofit Outcomes Toolbox

Leading Well

• Leadership Without Easy Answers
• Real Change Leaders

Photo Credit: annabellaphoto

Tags: funding for social entrepreneurship, nonprofit, nonprofit financing, nonprofit funders, nonprofit leadership, nonprofit strategy, Philanthropy, social change funders, Social Entrepreneurship, social entrepreneurship conferences, social innovation, social innovation blogs

10 Great Social Innovation Reads: July

I’ve been out exploring the Western states of the country (which I HIGHLY recommend) for the last few weeks, so my blog posts have been sparse, and my 10 Great Reads for July a bit delinquent, so please forgive me.

Below are the 10 things that got me thinking last month. You can also read past months’ 10 Great Reads here. As always, please let me know what I’ve missed in the comments below.

1. In the Stanford Social Innovation Review, Paul Connolly argues that foundation support of fundraising capacity has limited returns. Although I completely agree that you cannot build fundraising capacity without building the capacity of other aspects of the organization, I think he takes this a bit too far. It is critical that more donors, not less, support the organizational capacity, as opposed to just the programs, of nonprofits.




2. Talk about innovative, arts groups try the airline company pricing approach to ticket sales.




3. From the Harvard Business Review blog comes a great idea: A Gap Year for Grown-ups. Far beyond the author’s argument about the benefits to the individual, something like this could dramatically increase the ranks of national service programs.




4. An MBA myself, I love the fact that more MBA students are turning to social enterprise.




5. The Nonprofit Tech 2.0 blog gives us 11 examples of innovative nonprofit websites that are designed for the social web.




6. Khan Academy, an education website, is being used to teach kids in new, interesting, and controversial ways.




7. From one of my favorite blogs, Full Contact Philanthropy, comes an argument about how even simple evaluation can help create more effective programs.




8. Extending Mario Marino’s argument in Leap of Reason, Phil Buchanan from the Center for Effective Philanthropy argues that foundations need to provide support to nonprofits working on performance measurement.




9. And echoing Leap of Reason’s core argument, Paul Light argues in a Washington Post OpEd that “nonprofit leaders have to get better at measuring the value they produce.”




10. Guest blogging on the Tactical Philanthropy blog, Tony Wang argues that philanthropy needs to be more critical of itself.

Photo Credit: Infrogmation

Tags: 10 Great Reads, Center for Effective Philanthropy, Fundraising, Leap of Reason, national service, nonprofit capacity, program evaluation, Social Enterprise, Social Entrepreneurship, social innovation, Stanford Social Innovation Review

What Social Entrepreneurs Can Teach The Nonprofit Sector

I’ve written before that with the excitement around the social entrepreneurship movement there is a danger that we are abandoning the nonprofit sector. Indeed, there is sometimes a tendency to dismiss the sector that was working on social change long before it was “cool”. Often the older nonprofit sector is left behind, partly because the sector tends to be risk- and change-averse. Again and again, I’ve heard that innovation will never become part of the nonprofit system — that nonprofits are too set in their ways. Or that the sector is too broken to emerge anew.

That attitude, though, is unacceptable. The nonprofit sector is an enormous part of our economy and has a long history of working towards social change. If we were to cast it aside completely, we’d lose the tremendous resources (money, people, mind-share) that are being invested in that sector every day. The nonprofit sector has tremendous potential for innovation. Indeed, without innovation in the nonprofit sector, the broader movement to solve social problems is doomed.

So instead of tossing it aside, let’s remake it, re-envision, restructure and reinvent it.

To that end, Social Velocity is hosting a webinar on July 12th, titled “What Nonprofits Can Learn From Social Entrepreneurs,” which will help nonprofit leaders understand the new models, funding approaches, messaging, systems that social entrepreneurs are employing to create social change. If nonprofit leaders can understand this new movement and integrate some of the ideas into their work, they can achieve more social change.

This webinar will help nonprofit leaders understand the social entrepreneurship movement and the innovative people, organizations and funding vehicles that are solving social problems in new, exciting ways. It will help nonprofit leaders understand what they can do to keep up, and how to make their own organizations more innovative, attract new kinds of funding, and achieve their social change goals more effectively.

The webinar will include:

• Case studies of nonprofit and for-profit social entrepreneurs
• Examples of philanthropists and social investors who are funding social change in new ways
• How social entrepreneurs are becoming more effective at making a case for support
• What the social capital market is and how it’s evolving
• What new foundation funding vehicles like “mission-related” and “program-related” invesments are
• What “venture philanthropy,” “philanthropic equity,” and “growth capital” are and how to organizations are using them to grow their organizations
• New models nonprofit growth
• New legal structures for social change organizations
• Inspiration for taking your organization to the next level

What Nonprofits Can Learn From Social Entrepreneurs
A Social Velocity Webinar
Tuesday, July 12, 2011
12 noon – 1:00 pm (EST)
Registration Fee: $40

Register Now

I hope to see you there!

Photo Credit: katrinalopez

Tags: abandoning the nonprofit sector, innovation in nonprofit sector, nonprofit growth capital, nonprofit learning from social entrepreneurs, philanthropic equity, social capital market, Social Entrepreneurship, social innovation, Social Investing, Social Velocity webinar, Venture Philanthropy

10 Great Social Innovation Reads: March

In our ongoing blog series, 10 Great Social Innovation Reads, below are my picks for what really stood out in the world of social innovation in March. These are the discussions, posts, articles, etc. that I think added real value to the emerging world of social innovation over the past month. You can read January’s and February’s picks as well.

As always, please add your picks to the list in the comments.

1. 2011 State of the Nonprofit Sector Surey Results: The Nonprofit Finance Fund’s third annual State of the Nonprofit Sector survey results are out. It’s very interesting to see how the sector is faring 2+ years into the recession.

 

2. How Non-Profits Are Utilizing Facebook: From the Social Earth blog comes a great infographic that demonstrates how nonprofits are using Facebook.

 

3. An In-depth Interview with Sally Osberg, President and CEO of the Skoll Foundation: Sally takes a look back at the last 10 years of social entrepreneurship in this fascinating interview.

 

4. 4 Core Approaches to Philanthropy: Sean Stannard-Stockton from the Tactical Philanthropy blog wrote a pivotal blog series in March on 4 core approaches to philanthropy.

 

5. When you want to quit because it’s just not worth it: True social innovation requires an undying determination to keep going, keep building, keep creating in the face of seemingly insurmountable hurdles, so from the A Smart Bear blog comes a reminder to never give up.

 

6. Google Launches ‘Google for Non-Profits’: Google launches Google for Nonprofits this month. Is this a revolution or an innovation? I’m not so sure. Maybe it’s the start of bigger plans down the road.

 

7. Social Impact Bonds Will Fail Without Solving the Evaluation Problem First: From Full Contact Philanthropy comes a caution about getting too excited about the next shiny thing in social impact finance, the social impact bond, which allows people to invest in nonprofits and receive a financial return if outcomes are met.

 

8. 2011 Bright Ideas: The Harvard Kennedy School Ash Center announced its annual list of the 36 brightest ideas and programs in government. If you think government can’t be innovative or create real change, take a look.

 

9. How Many Points Does it Take?: From the Nonprofit Finance Fund blog comes Craig Reigel’s argument that “nonprofits need a whole range of capital solutions.” I completely agree!

 

10. 22 Nonprofit Mobile Websites: Are nonprofit orgs jumping into the world of mobile to build support? Slowly but surely. Here’s a list of the best nonprofit mobile sites from Nonprofit Tech 2.0.

Photo Credit: aithom2

Tags: Google for Nonprofits, government innovation, nonprofit capital, Nonprofit Finance Fund, nonprofit mobile, Nonprofit Sector Survey, nonprofits on Facebook, Philanthropy, Skoll Foundation, Social Entrepreneurship, social impact bonds, social innovation

Can Reactive Clark Kent Become Strategic Superman?

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

For the nonprofit sector to truly climb aboard the social innovation train, as opposed to being abandoned by it, nonprofit leaders need to move past the reactive toward the strategic.

But is that possible? Have nonprofits been stuck in a resource-constrained, charity mindset for too long to be made strategic, bold, big thinkers? It’s been a vicious cycle. Nonprofits lack adequate resources so they become very protective of what they have and wary of any actions which might threaten those resources. Therefore they become exceedingly risk averse and fearful of innovation. They focus more often than not on keeping the doors open as opposed to investing time, energy and resources in long-term strategy.

But that’ s just not going to cut it anymore. These times demand a radically different mindset and approach. The nonprofit sector must move from the reactive to the strategic. So how does a reactive approach differ from a strategic one? It looks like this:

When a financial crisis hits the organization, the reactive approach is to focus on keeping the doors open and staying afloat. But a strategic approach focuses on what caused the crisis and how to fix the underlying problem, model or system so that they never return there again.

When a funder wants to award a significant sum to an organization for new programs that detract from, rather than bolster, the organization’s theory of change, a reactive approach focuses on the increase in revenue, but a strategic approach recognizes the misalignment and turns the money down.

A reactive approach allows program staff to continue with a status quo method of program delivery, but a strategic approach constantly asks hard questions, tracks results, pushes outcomes, restructures inefficient processes, gets underneath the surface to make programs better, stronger, more impactful, more sustainable.

A reactive leader arrives at board meetings with reports, charts and status updates, gets a rubber stamp on day-to-day activities and breathes a sigh of relief that the board didn’t ask too many questions. But a strategic leader analyzes the unique contributions each individual board member and the board as a whole can make and leverages those contributions effectively, engages the board in meaningful discussions and actions around where the organization is going and trends in the external marketplace, and focuses board work on big picture issues and opportunities, creating key external networks, and building a strong financial future.

A reactive approach helps the board recruit new members that fit narrow definitions of experience, gender, ethnicity, and size of pocketbook. A strategic approach compares the long-term goals of the organization to the competencies, networks, experience and resources required and creates an intentional board recruitment strategy to get there.

A reactive leader crosses things of their daily to do list and feels satisfied because the trains ran on time, crises were avoided, and everyone got a paycheck. A strategic leader is rarely satisfied and constantly works to build key alliances with external partners, learns new skills, pushes their staff harder, evaluates their work, continually refines their model and responds effectively to a constantly changing environment all in the name of greater impact.

A reactive leader allows the natural uncertainty of running a nonprofit to cause fear and inaction. A strategic leader, like a true entrepreneur, recognizes the opportunity for innovation that uncertainty offers and embraces and uses that opportunity to continually mold the organization’s solution to the external market of need and funding.

It remains to be seen whether a reactive leader can transform into a strategic one. I would bet that the success of the social innovation movement as a whole rides on it.

Photo Credit: Loren Javier

Tags: charity mindset, nonprofit innovation, nonprofit leadership, nonprofit strategy, reactive nonprofits, reinventing nonprofit sector, social innovation

Unlocking New Philanthropic Capital: An Interview with Dennis Cavner

In this month’s Social Velocity interview we are talking with Dennis Cavner. Dennis is an investment advisor and philanthropist who, along with a few other philanthropists in Austin, has launched a new philanthropic investment vehicle called Innovation+. Through an extensive due diligence process over the last 6 months, Innovation + has identified and vetted a large group of nonprofits ready for significant growth and selected two which they will introduce to prospective growth investors. Their model  is a compelling variant on venture philanthropy that seeks to unlock untapped philanthropic capital. It will be interesting to watch.

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

Nell: Explain Innovation + to me. What is it, and how does it work?

Dennis: Innovation + is a new community effort designed to enable transformational social impact. Our goal is to match proven social innovation with human and financial capital to change the world. We seek to identify a small number of nonprofit organizations that are uniquely poised for significant growth, thoroughly vet those organizations and their growth plans, and then select the most promising candidates for investment. We will make a multi-year commitment to each organization we select, assist in the refinement of their plans, help secure funding and additional human resources, and monitor the organization during an execution phase of 3-5 years. Our selection process is not a contest, rather it is a very thorough process of evaluation that results in a partnership between Innovation + and the community organization.

Nell: Why did you, Bill Forsberg and Suzi Sosa, decide to launch Innovation +? What did you think was lacking in the Austin philanthropic market and what are you hoping it will do for the nonprofit and philanthropic sectors?

Dennis: Austin has substantial untapped potential in its non-profit market. There are outstanding organizations, already achieving meaningful impact, that are poised for a strategic investment that can bring about a transformational leap in results and scale. We believe there are substantial pools of social capital that remain uncommitted due to a lack of coordinated effort to identify and vet the most promising opportunities. Our intention is to prove this hypothesis and catalyze a community of venture philanthropists who see this potential for radical positive change for our community and our world. Bill, Suzi and I have all had experience with high growth organizations and came together in this effort over the past year. Over the past twelve years I’ve had the great fortune of involvement with the Livestrong organization (the Lance Armstrong Foundation) as a board member, Chairman, and one of the architects of the Founders Circle that provided the early growth capital for that organization. I’ve seen Livestrong grow from two staff members and an annual budget of $250,000 to generate almost $400 million for the cancer cause and have a profound effect on millions of cancer survivors around the world. If you can make the right investment of time and money at the right time, it is amazing how you can impact people’s lives.

Nell: How are the traditional philanthropists you are talking to viewing this new form of philanthropy? Are they receptive or skeptical or both? What will it take to get them on board?

Dennis: Our target market is “nontraditional” philanthropists: successful entrepreneurs who have done well and want to give back, but who lack the time or other resources necessary to identify and vet the best high growth potential organizations. Not surprisingly, they love the Innovation + approach: find really smart people who are doing proven innovative work, then supply the resources necessary to replicate or scale that model for greater impact. Traditional philanthropists are also very receptive, as they appreciate the extensive due diligence and growth plan evaluation that we are bringing to the process. Our team of community activists bring to the table a broad array of skills and experience from both the for-profit and nonprofit sectors.

Nell: What are you looking for in the nonprofits you select? What is the magic combination of characteristics?

Dennis: We are focused on identifying organizations that have high growth potential. To achieve that growth we believe that they must be doing innovative work in their fields, that their models are capable of expansion or replication, and that their leadership is both capable and driven to succeed. We are not interested in startups, so we seek a group that can demonstrate that their innovative work is effective. A sustainable funding model is essential, and we favor organizations that have components of earned revenue in their mix. Strong community partnerships and a clear picture of the partnerships necessary to achieve growth are very important. There is a consensus among our group that leadership is THE key component for a successful growth partner.

Nell: How do you think your model fits into other innovative models of philanthropy around the country?

Dennis: There are some really great things going on around the country, and I am encouraged by all of the creative new efforts. Some will be very successful, others not so much. Experimentation is necessary to find new solutions in a changing world. The Innovation + model is somewhat akin to an investment banking model. We identify a high growth potential organization, vet them very carefully, help them subscribe the financial and human capital needed to execute their plan, then monitor and report. We are not a fund, where investors commit their capital and then we decide where it is invested. Rather, we present an opportunity to a funder and they can either invest or pass, depending upon their interest and appetite. We may partner with nonprofits that are serving the needs of the community in the areas of health care, education, animal welfare, the environment, or other sectors. We are not limited by geographic scope, per se, and favor growth opportunities that have the potential for national expansion. These are audacious goals, but we believe in the power of community to achieve amazing things.

Nell: What do you think is holding philanthropy back from becoming more innovative?

Dennis: I actually believe that we are in the midst of great innovation in philanthropy. It is occurring in pockets, and Austin is one of the key development labs that will lead the way. In addition to the Livestrong example, I can cite the RGK Center for Philanthropy and Community Service at the University of Texas and their Dell Social Innovation Competition, the RISE conference for entrepreneurs and social innovators, and a vibrant and creative business community that will respond positively to innovation. As we have discovered with Innovation +, Austin has a growing number of amazing nonprofits that are inventing new and effective ways of meeting the needs of the community. We are in an era of declining government ability to provide essential support to our citizens, yet the needs continue to grow. Nonprofits and businesses must do a better job of filling the gap of these unmet needs. The formation and deployment of capital in new and more effective ways is critical to achieving that goal, and I believe that Innovation + can help lead the way.

Tags: Austin philanthropy, Bill Forsberg, Dell Social Innovation Competition, Dennis Cavner, innovation, innovative philanthropy, Livestrong, nonprofit growth capital, RGK Center, RISE, scale, Social Entrepreneurship, social innovation, social investment, Suzi Sosa, Venture Philanthropy