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10 Great Social Innovation Reads: Jan 2016

Korean_War_Veterans_Memorial_as_seen_during_the_January_2016_BlizzardFrom an historic blizzard that blanketed the country, to tackling poverty, to the leadership of Black Lives Matter, to technology in the new year, to using social media to stop ISIS, to advice for Charity Navigator, January was an interesting month in the world of social change.

Here is my pick of the 10 best reads in January. If you want a longer list, follow me on Twitter @nedgington. And to see past month’s 10 Great Reads lists go here.

  1. Winter storm Jonas dumped several feet of snow across the country, but also offered a couple of interesting lessons in social change. First, the sheer amount of snow piled up on east coast urban streets provided a glimpse into better urban design. And after the blizzard hit Washington, DC it seems only female senators were brave enough to come to work. Among them, Senator Lisa Murkowski wondered: “Perhaps it speaks to the hardiness of women…that put on your boots and put your hat on and get out and slog through the mess that’s out there.”

  2. Writing in the Nonprofit Quarterly, Tom Klaus took issue with those who criticize the Ferguson and Black Lives Matters movements as being “leaderless.” Instead, he argued that they demonstrate a more effective “shared leadership” model: “Shared leadership…means that multiple members of a team or group step up to the responsibility and task of leadership, often as an adaptive response to changing circumstances. Multiple members may emerge to lead at the same time, or it may be serial as multiple leaders emerge over the life of a team or group.” And The Chronicle of Philanthropy profiled three of the leaders of the Black Lives Matter movement.

  3. One of my favorite bloggers, David Henderson, has made a new year’s resolution to write more often. Let’s hope he keeps it up because he offered us two great ones this month. First, he wrote a scathing critique of the nonprofit and philanthropy sectors for not standing up against presidential candidate Donald Trump’s hate-filled ideology. And then he took it further in a later post arguing that the philanthropic sector must get more political: “It seems a strange consensus that philanthropy and politics do not mix. Yet it is our politics, and more specifically our collective values, that creates the maladies we aim to address. Martin Luther King was a civil rights pioneer not for creating a nonprofit that provided social services to help African Americans live a little better, but by challenging the laws and social values that subjugated a significant portion of our community. Social interventions like homeless shelters, food pantries, and tutoring programs are fundamentally responses to injustice. While these programs are wrapped in apolitical blankets, they are plainly and intuitively critiques of the system we live in.”

  4. And speaking of critiques, columnist Tom Watson wrote a sharp commentary on American philanthropy arguing that it is going the way of American politics — moving from democracy towards plutocracy: “The disparity between democratic philanthropy and its plutocratic cousin is nowhere more apparent than in the importance placed on the Facebook co-founder’s commitment to giving away much of his vast personal fortune compared with the potential of the largest digital social network in the nation. Mr. Zuckerberg’s billions may create major causes and eventually steer public policy, but many nonprofits will struggle to find in their budgets the money required to purchase desperately needed social-media eyeballs from his advertising department. If there’s a better example of the power gulf in American philanthropy, I’m not sure what it is.”

  5. And other critiques of philanthropy in January went even further, with some arguing that modern American philanthropy attempting to address growing wealth inequality (illustrated by a new Oxfam infographic “An Economy for the 1%“) is a paradox because philanthropy itself emerged from the wealth excesses of capitalism.  A new book by Erica Kohl-Arenas argued that philanthropic interventions to solve poverty have been flawed because they don’t address the structural issues causing the poverty in the first place. And her argument was extended when she wrote about her view of a January 7th public event at the Ford Foundation where Darren Walker (who recently announced a new foundation focus on overcoming poverty) and Rob Reich discussed these issues.

  6. Caroline Fiennes argued that nonprofits should not try to “prove their impact,” since proof of impact is impossible, but rather use evaluation to gain knowledge that can help “maximize our chances of making a significant impact.” Patrick Lester, writing in the Stanford Social Innovation Review, offered a similar caution about outcomes, but this time to the Obama administration: “A dose of…realism, combined with a greater reliance on evidence and a willingness to learn from the past, could transform the administration’s focus on outcomes into an important step forward. By openly acknowledging the challenges and dangers, recognizing the difference between mere outcomes and true impact, and demonstrating how this time we will do better, the administration could show that what it’s really calling for is not just an outcomes mindset, but an Outcomes Mindset 2.0.”

  7. Speaking of proving results, Charity Navigator’s new leader, former Microsoft exec Michael Thatcher, and the board that hired him came under attack in January for not moving quickly enough away from rating nonprofits on financials and towards rating them based on results.   But Doug White, writing an opinion piece in The Chronicle of Philanthropy and who created the beginning data behind Charity Navigator many years ago, took it even further took it even further: “Charity Navigator is far worse than nothing. The best that could happen is for the group to sink into oblivion, with no charities, no news outlets, and no donors giving it any thought. Or the group could take serious steps to grow up, humbly taking the time and effort to truly try to understand the charitable world.”

  8. Wanting to get further into the social change game, Facebook COO Sheryl Sandberg announced a new effort to use Facebook “Likes” to stop ISIS recruitment efforts on social media. It will be interesting to see how effective this slacktivism effort becomes at creating real change.

  9. Kivi Leroux Miller released her annual Nonprofit Communication Trends Report, including lots of data about how and where nonprofits are marketing. And while she found that YouTube is currently the #3 social network for nonprofits, that may change since YouTube just announced new “donation cards” that allow donors to give while watching a video.

  10. And finally, in January we lost David Bowie. But Callie Oettinger urged us not to be sad, but rather, inspired: “I [am] comforted in thinking of Bowie…on Mars, mixing it up with other artists…a place where the greats go to keep an eye on the rest of us and send down jolts of inspiration from above.” Yes.

Photo Credit: Northside777

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10 Great Social Innovation Reads: Dec 2015

social changeDespite being the run up to the holiday season, December was a busy month in the world of social change. From arguing about new philanthropy, to looking back at 2015, to exploring America’s history of philanthropy, to analyzing the leadership of the Pope and the Red Cross’ Gail McGovern, to inspiration in grim times, there was lots to read.

Below are my picks of the 10 best reads in the world of social change in December. But please add to the list in the comments. And if you want to see a longer list of what catches my eye, follow me on Twitter @nedgington.

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

  1. Arguably the biggest news in December was Mark Zuckerberg (founder of Facebook) and his wife Priscilla Chan creating a limited liability corporation (not a foundation or nonprofit) focused on social solutions. Many, many, many people had something to say about it. Some liked it, others despised it, others found serious implications for the future of philanthropy, others were terrified by it. Amid all the hubub, the Zuckerberg/Chan’s chief of staff further clarified their plans. Perhaps we should just wait a bit and see what the actual effect is.

  2. And beyond the Zuckerberg/Chan investment, there was debate about new forms of philanthropy in general. Michael Edwards thinks the idea of blending social and profit motives has jumped the shark. And Andrew Means of Data Analysts for Social Good thinks Effective Altruism, the idea that you can use data to determine where to most effectively invest in social change, is flawed because it doesn’t account for different philanthropists having different preferences.

  3. Since December is the last month of the year, there was the traditional glut of posts looking back at 2015. My favorite among them were: The National Council of Nonprofit’s “5 Firsts” for the Nonprofit Sector in 2015,” Inside Philanthropy’s “Hot Topics and Trends for Women and Philanthropy, 2015,” The Nonprofit Quarterly’s “9 Important Nonprofit Stories of 2015 (And What They Can Teach Us),”  Pew Research’s “15 Striking Findings From 2015,” Mashable’s “26 Incredible Innovations that Improved the World in 2015, and Lucy’ Bernholz’s “Philanthropy’s 2015 Buzzwords.” Whew!

  4. The Smithsonian’s National Museum of American History previewed an upcoming permanent exhibit on American philanthropic history. Fascinating.

  5. David Callahan provided some really interesting theories for why the percent of charitable giving in America has yet to climb beyond 2% of GDP. His proposed causes include: liberals, corporations, and even Ronald Reagan.

  6. Emmett Carson, head of the Silicon Valley Community Foundation, put forth an interesting idea for two of the most influential organizations advocating for the nonprofit sector: Independent Sector and The Council on Foundations. He thinks they should merge, as he explained: “The new entity could harness our entire sector to meet old and new social and economic challenges. Such a new organization could meet our sector’s higher collective purpose — to influence how this country meets its obligations to our most marginalized citizens, whether they are poor, sick, homeless, immigrants, disabled, or victims of systemic discrimination.”

  7. Writing in Forbes, Mike Perlis, argued that The Pope is an illustrative example of how leadership should operate in the 21st century.

  8. ProPublica’s ongoing series investigating the American Red Cross continued with an article about CEO Gail McGovern’s leadership and where she may have gone wrong. And Ruth McCambridge from The Nonprofit Quarterly found the problems at the Red Cross to be reminiscent of other nonprofits that have fallen victim to troubled leadership, like the founder’s syndrome that plagued the Susan G. Komen Foundation.

  9. Nonprofit blogger Vu Le argued that if we want nonprofits to act more like businesses, nonprofits should enjoy more of the benefits that businesses do: “Society needs to provide nonprofits with the same level of funding, speed of investment, flexibility, autonomy, and acceptance of risk and failure, or else stop trying to get us nonprofits to be more like for-profits. You can’t have your nonprofit cake and yet withhold your for-profit icing.” Amen to that.

  10. And finally, to restore your faith in humanity, new Canadian president Justin Trudeau created a tremendous welcome for incoming Syrian refugees. And Barbara Bush and Jessica Mack from Global Health Corps would probably consider Trudeau just the kind of leader we need right now, for as they wrote in the Stanford Social Innovation Review: “At times like these, when the news is an endless litany of upsetting events, it is far too easy to let rage slide into violence, or allow fear to shut us down to the humanity of others. We have examples of that all around us. But leadership doesn’t entail taking the easy option. Instead, the most courageous stand we can take is against fear itself, by resisting the instinct to close up and push others away…It is within each of our abilities to decide how to parlay these grave moments into opportunities for resilience, inspiration, and hope.” Yes!

Photo Credit: hobvias sudoneighm

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5 Nonprofits Trends to Watch in 2016

Poster_of_Alexander_Crystal_SeerThis is my favorite time of year. Despite the darkness of the last few months, December is often about reflecting on the year that is drawing to a close and hopes for the new one coming.

And as is my tradition on this blog, I like to look ahead at the trends that may affect the nonprofit sector in the coming year. I have never claimed to be a clairvoyant, but I am an admitted optimist, so my predictions are less about telling the future and more about wishful thinking. This year, more than ever, I want to see opportunity amid the uncertainty and the challenges we face.

So here are 5 things I’m really hopeful about for the nonprofit sector as we head into 2016.

You can also read past Nonprofit Trends to Watch lists for 2011, 2012, 2013, 2014 and 2015.

  1. New Opportunities for the Nonprofit Sector to Lead
    A growing recognition of the value of the nonprofit sector paired with a rising confidence among nonprofit leaders will create opportunities for nonprofits to step up and create opportunity out of the seemingly mounting pile of challenges (like terrorism, natural disasters, political gridlock). The nonprofit sector’s natural place — its core competency — is in righting imbalances and it often coalesces in times of trouble. We are already seeing really exciting collaborations and innovations aimed at increasing civic engagement and winning equal rights, to name a few. Call me an optimist, but I think the challenges we face are merely a precursor to the emergence of a stronger social sector ready to find new solutions.

  2. Increased Use of Protests 
    And as evidence of social movements emerging from challenges, we are seeing an uptick in social protests. This year we’ve seen some impressive organized demands for social change. From Black Lives Matter, to student protests on college campuses, to Chicago protests demanding the mayor’s resignation, people are rising up to demand change. While their methods somewhat mirror the protests of the 1960s and 1970s, their access to and use of technology is quite new. It will be interesting to see how these movements evolve and how much change they will be able to accomplish.

  3. Greater Emphasis on Networks 
    And these protests, like any social change effort, will be more successful if they embrace the use of networks. I think there will be a growing recognition that nonprofits must build networks in their social change efforts. They must understand the points of leverage for attacking a problem on a much larger scale than a single organization can and then figure out who the influencers are in their space and how to connect their work with those others. Because the network approach requires that nonprofit leaders move away from the resource-constrained, scarcity approach that keeps them from forging alliances with other entities that might be competing for the same limited pool of funding, I think (hope) we’ll see more nonprofit leaders move to an abundance mentality that leaves fears behind in favor of a bigger, bolder, more networked path.

  4. More State-by-State Strategies 
    The stunning victory this year legalizing same-sex marriage demonstrated the tremendous success that a state-by-state (as opposed to a national) approach to social and political change can have. Indeed, because of political gridlock at the federal level, other social change efforts (like Represent.us and the legalization of marijuana) have found success at the state level where changing minds and changing policy is sometimes easier and more efficient. But this isn’t a new idea. In fact according to research compiled by Bloomberg Business, social and political change in America follows a pattern: “A few pioneer states get out front before the others, and then a key event—often a court decision or a grassroots campaign reaching maturity—triggers a rush of state activity that ultimately leads to a change in federal law.” Though the idea isn’t a new one, I think it may gain traction as more social movements find a state-by-state approach increasingly attractive.

  5. Smarter Funding
    But to pursue more successful models, like the use of networks and state-by-state strategies, nonprofits must have the necessary funding runway to get there.  So I’m hopeful that funders will increasingly recognize that nonprofits need more flexible and effective funding (like unrestricted dollars and capacity capital). There are already encouraging signs. The Ford Foundation has moved to provide more unrestricted support (and encouraged other funders to build the capacity of nonprofits) and the federal government released new guidelines this year providing more indirect funding to nonprofits. So let’s hope we see more foundation, individual and government funders providing nonprofits more of the kind of money they really need to create solutions.

Photo Credit: Library of Congress

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10 Great Social Innovation Reads: November 2015

Reading on the StairsLet’s be honest. November was a really tough month. The terrorist attacks in Paris (and other attacks in Mali, Beirut and elsewhere) put the world on edge. And the anti-refugee rhetoric that followed was incredibly disheartening. Finally, the loss of tenacious nonprofit investigative journalist Rick Cohen made for a difficult November, a month that is typically focused on gratitude and giving back.

But there is always hope. Some foundations are taking an innovative approach to failing cities and to supporting networks, students are rising up for equality, and the Overhead Myth was dealt another blow.

Below are my selections of the top 10 reads in the world of social change in November, but please add to the list in the comments. And if you want a longer list of great reads, follow me on Twitter, Facebook, LinkedIn or Google+.

And you can see past months’ 10 Great Reads here.

  1. The horrific terrorist attacks in Paris created an ugly backlash in America against Syrian refugees. There were worries about the attacks causing a slowdown in fundraising for Syrian refugees and parallels drawn to the exclusion of Jewish refugees in World War II. But rising above all of this Rick Cohen urged nonprofits to take their rightful place as defenders of the downtrodden and speak up against anti-refugee policies. As he put it: “If the U.S. slams the door on desperate Syrian refugees, the nonprofit sector that claims to represent openness, inclusion, and democracy will find its credibility seriously damaged should it fail to do whatever it can to confront the politicians using fear and hatred as a tool for political advancement.” Amen!

  2. Adding insult to injury, that beautiful piece was Rick Cohen’s last published article because he died in November, creating an enormous loss for the sector. The Nonprofit Quarterly created a lovely tribute to their colleague by culling his best pieces, and they have big plans for carrying on Rick’s legacy.

  3. There is hope amid the fear and turmoil of our times. Susan Ragusa from Inside Philanthropy looks to the nonprofit sector to “lead with optimism and champion hope.” Yes.

  4. Perhaps heeding that call, some foundations have stepped up in innovative ways to help struggling American cities. Rockefeller Foundation President Judith Rodin described ways resilient cities can mitigate climate change.

  5. The whip smart David Henderson has created a new tool (currently in beta) for individual donors to track and analyze their favorite nonprofits.

  6. We are far from completely overcoming the Nonprofit Overhead Myth, but there was a big step forward in November when the Los Angeles County Board of Supervisors passed a motion to pay the full costs for nonprofit services. As Tim Delaney, president of the National Council of Nonprofits explained: “Los Angeles County has now raised the bar for collaboration between governments and nonprofits by stating its firm stance that its nonprofit partners must be paid the full cost to deliver services that the County contracts with them to provide. We urge states, counties, and localities across the country to follow its lead.” Amen!

  7. Student protests against racial inequality on college campuses across the country reached a fever pitch in November with some wins at the University of Missouri. It will be interesting to see how student demands and this movement evolve.

  8. Steve MacLaughlin from Blackbaud put together an interesting Slideshare on 50 Fascinating Nonprofit Stats that became so popular that Blackbaud created a whole website around it.

  9. Many nonprofits made preparations for today’s Giving Tuesday campaign (perhaps using the nifty interactive data dashboard that allows you to slice and dice online giving data, or some new Facebook giving tools). But some nonprofits, feeling that it’s just a gimmick, opted out of participating in Giving Tuesday at all.

  10. The Ford Foundation announced that a big part of their new direction will include further investing in networks and institutions. As Darren Walker described: “Networks are fulcrums for creativity and dissent, beacons of stability, scaffolding for aspiring change makers, and connectors for social innovators.” And to help create more effective social change networks, network entrepreneur theorists, David Ehrlichman, David Sawyer, and Jane Wei-Skillern  offered 5 Steps to Building an Effective Impact Network.

Photo Credit: Jens Schott Knudsen

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10 Great Social Innovation Reads: September 2015

social changeIn September there was some surprising good news about climate change. Yes, you read that right. We are perhaps, slowly, starting to address that problem (mind blowing, huh?). And in other news, there was a call for funders to help nonprofits become better fundraisers and some tools to help nonprofits use data in that pursuit.

Add to that concern about what digitial technology is doing to our humanness and critiques of Teach for America, proposed changes to philanthropy policy and an emerging “network” entrepreneur, and it was a very interesting month.

Below are my picks of the 10 best reads in the world of social change in September. But let me know what I missed. And if you want a longer list, follow me on Twitter, LinkedIn, Facebook or Google+.

And if you want to see past 10 Great Reads lists go here.

  1. If the world of social change is getting you down, if the challenges we face seem insurmountable, look no further than the New York Magazine where Jonathan Chait sees hope in the battle against climate change. As he puts it: “The willpower and innovation that have begun to work in tandem can continue to churn. Eventually the world will wean itself almost completely off carbon-based energy. There is, suddenly, hope.” Wow.

  2. Writing on the Blue Avocado blog, Aaron Dorfman from The National Committee for Responsive Philanthropy takes foundations to task for wanting their grantees to be financially sustainable, but not helping them build that capacity, “Why don’t more foundations invest in helping their organizing grantees develop independent funding streams? Here – as with many issues grantees face – even a little targeted capacity-building support would go a long way.” Yes, yes, a thousand times yes!

  3. One of the ways nonprofits can build fundraising capacity is by learning to use their data more effectively to raise money. To help in that effort, The Chronicle of Philanthropy put together a helpful toolkit of articles and case studies.

  4. And speaking of fundraising, the ALS Foundation continues to amaze me. In September, they released a nice infographic to the many donors of the 2014 Ice Bucket challenge reporting where their $115 million in donations went. Great donor stewardship and transparency!

  5. There seems to be a growing concern about what technology is doing to our humanness. Callie Oettinger writes “While social media has made sharing easier, allowing us to connect with the rest of the world, I often think about what would happen if people stopped trying to connect with the rest of the world and instead spent their time 1) creating value and 2) sharing value, rather than…creating crap and sharing crap.” And MIT professor Sherry Turkle released a new book, Reclaiming Conversation that argues we must “acknowledge the unintended consequences of the technologies to which we are vulnerable [and] make corrections and remember who we are — creatures of history, of deep psychology, of complex relationships, of conversations, artless, risky and face to face.”

  6. A new series launched at The Washington Post about the newest buzz phrase in the world of philanthropy, “effective altruism.” This is the idea that you should “optimize your donations to ensure that they are as “high-impact” as possible.” It is a fascinating and controversial idea.

  7. To counter the hype about “social entrepreneurs,” Jane Wei-Skillern (who wrote one of my favorite articles ever about networked nonprofits), David Ehrlichman, and David Sawyer introduced a new concept they call “network entrepreneurs.” As they put it, “Where social entrepreneurs often struggle to scale their own organizations despite heroic efforts, a network entrepreneur’s approach expands far beyond the boundaries of their own organization, supporting peers and partners across sectors to solve the problem. Not surprisingly, the potential for impact increases exponentially when leaders leverage resources of all types—leadership, money, talent—across organizations and sectors toward a common goal. And as a result of this work, we celebrate the change-generating network itself above any single person or institution.”

  8. I know I keep talking about how much I love the new History of Philanthropy blog, but this month was a perfect example of the tremendous value they bring the social change sector when Jeffrey Snyder explained how old and new philanthropy to support K-12 education differ. Fascinating. And it’s particularly interesting in light of Dale Russakoff’s new book that describes how Facebook founder Mark Zuckerberg’s $100 million donation to Newark public schools in 2010 hasn’t accomplished a whole lot.

  9. And that wasn’t the only educational reform effort that came under fire in September. Samantha Allen of the Daily Beast chronicled a growing chorus of critiques of Teach for America.

  10. Philanthropic visionary Lucy Bernholz released a list of proposed changes to philanthropy policy that will keep up with changing times. As she put it: “It’s time to recognize that the tax code is no longer the fundamental policy frame shaping philanthropy and nonprofits…it should be obvious that tax privilege is only one factor that Americans consider when thinking about using their private resources for public benefit…The tax code was the 20th century policy infrastructure for philanthropy. Digital regulations will provide the scaffolding and shape for 21st century associations and expression — aka, civil society.”

Photo Credit: Evan Bench

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10 Great Social Innovation Reads: June 2015

social innovationJune was an amazing month in the world of social change.

Most notably, the long fight for marriage equality was won with the Supreme Court’s ruling in Obergefell v. Hodges. It is moments like these where the long, arduous road towards social change makes sense. But that wasn’t all that was going on in the busy month of June. From “new” tech philanthropy, to the orthodoxies of philanthropy, to the oversight of philanthropy, it was all up for debate. Add to that some fascinating new ideas for museums, new data on how Millennials get their news, and a fabulous new blog about the history of philanthropy. It was a whirlwind.

Below are my picks on the 10 best reads in the world of social change in June. But let me know what I missed. And if you want a longer list, follow me on Twitter, LinkedIn, Facebook or Google+.

And if you want to see past 10 Great Reads lists go here.

  1. The biggest news by far in June was the Supreme Court’s 5-4 ruling in Obergefell v. Hodges making gay marriage legal. In the ruling opinion Justice Kennedy writes: “As some of the petitioners in these cases demonstrate, marriage embodies a love that may endure even past death…Their hope is not to be condemned to live in loneliness, excluded from one of civilization’s oldest institutions. They ask for equal dignity in the eyes of the law. The Constitution grants them that right.” While this is a huge win for equality, I think the two really interesting parts of the story are 1) how relatively quickly gay marriage went from banned to law and 2) the various actors that made that social change happen. Some argue that Andrew Sullivan’s 1989 landmark essay in New Republic started the intellectual case for gay marriage. This New York Times interactive map shows how gay marriage went from banned to legalized state by state over time. And Evan Wolfson, founder of Freedom to Marry, describes the decades long struggle of nonprofit reformers and their donors, including the Haas Fund in San Francisco, to make marriage equality happen.
  2.  

  3. A new blog, the HistPhil blog, launched in June to much acclaim. There is an enormous need for a historical perspective as we work to make nonprofits and the philanthropy that funds them more effective. HistPhil has already begun to provide that in spades with excellent posts on the Supreme Court ruling, among many other topics you will see below.
  4.  

  5. Sean Parker, co-founder of Napster and founding president of Facebook, launched a new foundation and wrote a controversial piece in the Wall Street Journal about his “new” vision for philanthropy.  Some found his ideas full of hubris, while others found him to be “an articulate evangelist for tech philanthropy.
  6.  

  7. And if that wasn’t enough philanthropic controversy for you, there were two other debates waging in June. First was the response to David Callahan’s New York Times piece, “Who Will Watch the Charities?” where he argued that we need greater oversight on nonprofits and their funders. Phil Buchanan of the Center for Effective Philanthropy quickly shot back that while Callahan raised some important questions, he ignored the complexity of the sector and reform efforts already under way. And then the two got into an interesting back and forth. Finally, Callahan wrote a follow up piece for Inside Philanthropy. Good stuff!
  8.  

  9. Along the same lines, the other point of debate in June centered around a Stanford Social Innovation Review article where Gabriel Kasper & Jess Ausinheiler attempted to challenge the underlying assumptions in philanthropy.  But now that we have a new expert on the history of philanthropy on the block, Benjamin Soskis from the HistPhil blog gave us a more accurate historical perspective about just what is and isn’t philanthropic orthodoxy.
  10.  

  11. Michael O’Hare, professor of public policy at UC Berkeley, wrote a great long form piece in the Democracy Journal arguing that museums could become much more relevant and financially sustainable if, among other things, they began selling their stored artwork. Crazy controversial, but fascinating, ideas.
  12.  

  13. Writing in the Stanford Social Innovation Review, Matthew Scharpnick cofounder of Elefint Designs, argued that recent ProPublica investigations of the American Red Cross uncovered our double standard for nonprofits. As he writes: “We are asking organizations to meet competing demands—many of which are at odds with how they are funded. We want nonprofits and NGOs to solve problems as effectively as private-sector organizations, and we want them to do it without any of the advantages and with far more constraints.”
  14.  

  15. The Ford Foundation announced a sweeping overhaul in their grantmaking strategy. They will now focus solely on financial, gender, racial and other inequalities, and double their unrestricted giving. Larry Kramer, president of the Hewlett Foundation, described how he is closely watching this historic move. And Brad Smith, president of the Foundation Center, offered a view of how philanthropy has approached inequality.
     

  16. The Hewlett Foundation’s Kelly Born provided some interesting thoughts about what a new Pew Research Center report about how Millennials get their news means for civic engagement.
  17.  

  18. And finally, on an inspirational note, Steven Pressfield articulated how “artists,” or really anyone hoping to bring something new into the world (a painting, a novel, a solution to a social challenge), should think:  “As artists, [we believe]…that the universe has a gift that it is holding specifically for us (and specifically for us to pass on to others) and that, if we can learn to make ourselves available to it, it will deliver this gift into our hands.” Yes.

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The Social Innovation Fund Six Years On

social innovation fundThere is an interesting report out today on the effectiveness of the Social Innovation Fund (SIF). Authored by the Social Innovation Research Center (SIRC), a nonpartisan nonprofit research organization, the new report details what has worked and what hasn’t in the six year history of the SIF.

Launched by the Obama administration in 2009, the SIF — a program within the Corporation for National and Community Service — provides significant funding to foundations that follow a venture philanthropy model by regranting that growth capital, along with technical assistance, to evidence-based nonprofits in “youth development, economic opportunity, and healthy futures” areas. In 2014, SIF expanded its efforts to include a portfolio of Pay for Success (social impact bond) grantees.

Now, 6 years on it is interesting to take a look back to understand what, if any, effect SIF has had on the nonprofit sector. The effect of the SIF is also critical given that, as of right now, the House and Senate have both defunded SIF in their respective funding bills.

To date, the SIF portfolio is made up of $241 million of federal investments and $516 million in private matching funds, which was invested in 35 intermediary grantees and 189 subgrantee nonprofits working in 37 states and D.C.

The SIRC report focuses on the current progress of SIF grants made during the first three years of the program (2010-2012). The report finds two clear positive results for the SIF so far. The SIF has:

  1. Added to the nonprofit sector’s evidence base about which programs work, and
  2. Built the capacity of nonprofit subgrantees, especially in the areas of “performance management systems, evaluations, financial management, regulatory compliance systems, and experience with replicating evidence-based models.”

On the negative side, however, the report finds that the SIF put real burdens on funders and nonprofits with its fundraising match requirements and the federal regulatory requirements. The report also finds that the SIF has had little effect on the sector as a whole because the SIF has not very broadly communicated their learnings so far.

To me, of course, most interesting are the report’s finding about capacity building at nonprofit subgrantees. There is such a need for nonprofit capacity building in the sector, and this was a clear goal of the SIF.

The SIF is one of few funders that do more than pay lip service to performance management by actually investing in building the capacity of nonprofits to do it. However, the SIF has been criticized for mostly selecting nonprofits that already had strong capacity. And indeed, the SIRC report finds that the SIF was most successful among those nonprofits that already had high capacity (in performance management, fundraising function, etc.) prior to SIF funding. Indeed, the report found that “poorly-resourced intermediaries working with less well-resourced community based organizations have been at a disadvantage.”

One SIF grantee in particular, The Foundation for a Healthy Kentucky, really struggled to build the capacity of their subgrantees whose starting capacity was so low. As they put it:

During the course of participation, it became clear that…[SIF] was really better suited for replicating existing programs or, at a minimum, investing in well-established programs that had some level of sophistication around organization systems and evaluation.

This mirrors earlier criticism of the SIF that it was set up to grow only those nonprofits that were already doing well, while those nonprofits that struggled with basic capacity issues were left out. The SIF has struggled to determine whether it is funding innovation (new solutions with limited capacity), or proven solutions (with a long track record and the corresponding capacity). It seems the two are mutually exclusive.

What the SIF is trying to do is such tricky business. To identify, fund and and scale solutions that work is really the holy grail in the social change sector. Certainly there are hurdles and missteps, but I think it’s exciting when government gets in the social change game in a big way. Six years is really too soon to tell. So I hope that this brief SIF experiment is allowed to continue, and we can see what a social change public/private partnership of this scale can really do.

To read the full SIRC report go here.

Photo Credit: Obama signs the Serve America Act in 2009, Corporation for National and Community Service

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10 Great Social Innovation Reads: May 2015

social change readingMay was another busy month in the world of social change. For a start there was: a behavioral economics approach to social change, continued focus on civic tech, a tool for calculating a nonprofit’s true costs, new definitions of membership in the digital age, the evolving public library, digital sabbaticals, and much more.

Below are my 10 favorite reads in the world of social change in May, but feel free to add to the list in the comments. And if you want a longer list, follow me on Twitter, LinkedIn, Google+, or Facebook.

You can also read 10 Great Reads lists from past months here.

  1. Perhaps some solutions to social problems lie in behavioral economics. Writing in The New York Times, economists Erez Yoeli and Syon Bhanot and psychologists Gordon Kraft-Todd and David Rand argue that the opinion of others, in this case regarding the preservation of natural resources, is a strong social change motivator.

  2. Civic tech, (the use of new technology to better engage citizens in democracy) has become quite the buzzword lately. But how do we know which civic tech solutions are actually creating change? Anne Whatley from Network Impact offers some tools for assessment in that arena.

  3. And another nonprofit tool comes from Kate Barr of the Nonprofits Assistance Fund. She provides a great tool to help nonprofits calculate and then articulate to funders the full costs of their work.

  4. Daniel Stid from the Hewlett Foundation writes a thoughtful piece on what separates good strategic planning from bad, because as he puts it “The real benefit of planning is not the final document but rather the discipline the process imposes, the new information it generates, the working relationships it fosters, and the conversations, insights, and commitments it sparks.” Amen to that!

  5. In this age of social media and technological connectedness, how do we create more formal structures for belonging to institutions? Melody Kramer, formerly of National Public Radio, is a Knight Visiting Nieman Fellow working on that very question, and she offers some beginning thoughts on the project, including, “Imagine if public radio stations functioned as Main Streets…or in the same way that local public libraries do? It would transform the way people could interact — and participate — in the local news process, and would enhance the stories stations put out on air.” Fascinating.

  6. Speaking of libraries, NPR writer Linton Weeks provides a history of the public library and how it continues to (and must) evolve in the digital age.

  7. Great philanthropic futurist Lucy Bernholz has been offline for a bit, and it turns out she took a digital sabbatical. She reports that “without the addictive stimulation and distractions of digital life it feels like my brain grew three sizes.” What a great (and necessary) idea!

  8. Writing on the UnSectored blog, Marie Mainil describes the importance of building and supporting social movements to create global social change. As she puts it “Collecting data on the dynamics of local, regional, national, and international social change campaigns is the next frontier of organizing for social change. With a visual multi-level collection of ladders of engagement from across the world, social change actors would be able to better plan and coordinate tactics and actions at scale, thereby increasing their chances of success.”

  9. In May the Center for Effective Philanthropy held their biennial conference. Ethan McCoy provides great roundups of day one and day two. I almost feel like I was there!

  10. Never one to put things lightly, William Schambra cautions against what he sees as the hubris of tech philanthropists and his fear that they desire to “fundamentally…reshape the social sector in their own image, based on their supreme faith in advanced technology.”

Photo Credit: Erin Kelly

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