Susan G. Komen Foundation
Despite 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.
- 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.
- 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.
- 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!
- The Smithsonian’s National Museum of American History previewed an upcoming permanent exhibit on American philanthropic history. Fascinating.
- 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.
- 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.”
- Writing in Forbes, Mike Perlis, argued that The Pope is an illustrative example of how leadership should operate in the 21st century.
- 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.
- 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.
- 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
October brought some great discussions in the blogosphere, including a forum on whether regulations around donor advised funds should change, concerns that we are working too hard, the need to better retain donors, and a debate about whether social media is (or can be) an effective fundraising tool. Round that out with examples of successful crowdfunding and volunteer skill crowdsourcing, and it was a good month.
Below are my picks of the 10 best reads in the world of social change in October. But, as always, 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.
- Donor advised funds (DAFs) have come under fire in recent years. There was an interesting discussion in October at the Boston College Law School Forum on Philanthropy and the Public Good about whether regulations on donor advised funds should be changed. In advance of that forum, history professor Lila Corwin Berman provided an historic perspective (on the HistPhil blog) including the fact that “donor advised funds fundamentally changed the balance of public and private power in the United States starting in the 1970s.”
- John Hopkins University professor Lester M. Salamon released a new book in October, The Resilient Sector Revisited: The New Challenge to Nonprofit America in which he lays out a framework for understanding America’s nonprofit sector. An excerpt from the book in the Nonprofit Quarterly examines “The 4 Impulses of Nonprofits“, as he describes it: “The nonprofit sector has long been the hidden subcontinent on the social landscape of American life, regularly revered but rarely seriously scrutinized or understood.” His book is an attempt to do just that.
- The Association of Fundraising Professionals and the Urban Institute released their annual Fundraising Effectiveness Survey Report with some startling data, like: nonprofits retained only 43% of their donors in 2014, and for every $100 a nonprofit brought in they lost $95 to lapsed and reduced gifts. So the challenge for nonprofits, says AFP president Andrew Watt, is to get better at retaining donors: “Donors do not simply choose a few charities to support and stick with them every year. Donors are remarkably inconsistent in their giving, whether it’s because they lost interest in a cause, were giving because a friend or family member asked them, or did not like how the charity was treating them. The charitable sector’s challenge is to figure out how to better inspire and retain donors from year to year.”
- And speaking of fundraising, Nonprofit Tech for Good donated $800 to 32 nonprofit organizations via the nonprofit websites and shared some important lessons for other nonprofits trying to fundraising effectively online. But Derrick Feldmann cautions that social media fundraising is not the panacea many board members might think. The new “Social Good Team” at Facebook might disagree because they have big plans for social media and the nonprofit sector.
- Kickstarter, the crowdfunding website, re-incorporated as a public benefit corporation in order to put their social good mission above profit, and then partnered with the United Nations to raise money for Syrian refugees.
- While we’re on the power of the crowd, in his ongoing Fixes blog, David Bornstein profiles Movement.org, a crowdsourcing site that connects human right activists and skilled volunteers. As David Keyes, one of the leaders, describes the platform: “Amazon says that you don’t need to be a bookstore to sell a book and Uber says that you don’t need to be a taxi service to drive a taxi. I realized that you don’t need to be an N.G.O. to fight a dictator, or a political leader to help a human-rights activist. Millions of people around the globe have the skills to help, and they’re currently not being utilized. If we could build a bridge between these communities, more people could be helped than we ever thought possible.”
- And in more solutions news, South Los Angeles, once an urban food wasteland, is becoming a hub of food activism with a focus on startup, affordable eateries that are committed to building a strong, healthy community.
- Companies are already getting ready for the holiday season mix of commercialism and philanthropy and Amy Schiller worries that Bloomingdale’s “Icons w/ Impact” marketing campaign highlighting celebrities, fashion and philanthropy is a worrisome shift in philanthropy. But I’m hoping that the HistPhil blog will chime in with a reasoned, historical perspective.
- Poor strategy will get you in the end. The breast cancer nonprofit, the Susan G. Komen Foundation came under fire a few years ago for some poor strategic decisions (like aligning with Kentucky Fried Chicken and pulling funding from Planned Parenthood), and it looks like those decisions have dramatically affected their fundraising.
- Phil Buchanan from the Center for Effective Philanthropy has a problem with our workaholic culture. He and his organization have learned from the Millennial generation’s more balanced (than Gen X’s or the Boomer’s) approach to work and life, and he suggests we do the same: “The millennials don’t care that this is what we might have done at that stage of our careers. In fact, they look at us and are quite clear they don’t want to be us — they don’t want to make the same mistakes!” Amen!
Photo Credit: Museum of History and Industry, Seattle
February was the month to learn from other’s mistakes — from Komen to Hull House there was some great analysis about what went wrong and what can be learned. The other thing emerging in February was new social media darling, Pinterest, as an opportunity for nonprofits to tell their story visually.
Below are my ten picks of the best reads in social innovation in February, but as always, please add what I missed in the comments. And if you want to see other things that caught my eye, follow me on Twitter, Facebook, LinkedIn or Pinterest.
- The biggest news in February was Susan G. Komen Foundation’s repeated strategy and PR blunders when they pulled funding from Planned Parenthood, then reinstated the funding. Kivi Leroux Miller offered tips to recover from a PR scandal. Nancy Schwartz broke down Komen’s “busted nonprofit brand” and Beth Kanter described the 5 stages of a social media PR disaster. And when things finally settled down a bit, Komen stumbled again with their attempt to reassure donors.
- Always a great resource, the Nonprofit Tech 2.0 blog provides 50 Fun, Useful, and Totally Random Resources for Nonprofits
- “As modern businesses search for a soul, who better than Millenials to help find one?” This month there were two articles about how the Millennial generation approaches work and ultimately how it will change how we all work: 13 Ways The Recession Has Changed How Millennials View Work and The Crisis of Meaning in the Millennial Workforce.
- Tom Watson launched a new column in Forbes focused on social entrepreneurship, and his inaugural post took an interesting spin on the endless “what is social entrepreneurship” conversation by finding parallels between Steve Jobs and Occupy Wall Street.
- Sometimes Dan Pallotta gets it really right, and that is especially true with his post arguing that a huge missed opportunity for philanthropist is to invest in the fundraising capacity of nonprofits.
- In the Harvard Business Review blog Nilofer Merchant argued that technology is fundamentally changing how organizations operate. This applies to nonprofits as well, and we should all take note.
- If you, like most people, struggle with creating content for your blog, this infographic makes it so much easier.
- Writing in the Washington Post, Antony Bugg-Levine, head of the Nonprofit Finance Fund, argued that nonprofits must embrace breakthrough innovations like restructuring their approaches to social problems and using capital to build organizations, “The sooner we confront our new economic reality and support visionary thinking and organizations, the sooner we can begin to rebuild a sustainable safety net.”
- The collapse of one of America’s oldest and most successful nonprofit organizations late last year, Hull House, provides a cautionary tale to other nonprofits that may not be employing good financial management, argued Rick Moyers.
- An interesting debate loomed at the end of the month because of a study by the Center for Philanthropy at Indiana University that found nonprofit managers lack key financial knowledge. But Kate Barr and Ruth McCambridge took issue with the study’s methods arguing that the study missed the mark.
Photo Credit: aithom2
Last week’s stunning PR nightmare at the Susan G. Komen Foundation is a textbook example of how not to run a nonprofit. Komen decided early last week to pull all funding from Planned Parenthood and then went radio silent in response to an increasingly angered social media network. Finally they flipped their original decision while firing the anti-Planned Parenthood vice president for public policy, Karen Handel.
Komen’s PR response was woefully inadequate, their social media efforts were non-existent compared to Planned Parenthood’s, and their board decision-making process was flawed. And all of this follows their brand-busting decision last year to partner with KFC.
Obviously, the organization is not making good decisions.
But few people are placing the blame for these missteps where it should probably go, at the top. Karen Handel herself argued that she wasn’t the only decision maker, “I clearly acknowledge [my role] in the process, but to suggest I had sole authority is just absurd. The policy was vetted at all appropriate levels.”
I wonder if Komen isn’t suffering from classic founder’s syndrome. Founder’s syndrome is when the original founder of a nonprofit (or a leader who has been there for a very long time) creates a culture where:
- Power and influence all reside within the single founder
- The brand of the organization is inextricably linked to the personality of the founder
- Staff are powerless to speak up and be heard when they disagree with certain decisions
- The board of directors merely rubber stamps founder decisions and have no real authority over and provide no strategic direction to the organization
- Decisions are rarely tested or debated
Komen was founded by Nancy Brinker when her sister, Susan G. Komen, died of breast cancer in 1982. For such a massive organization (a 2010 budget of $400+ million), the Komen Foundation only has 9 board members, most of whom are friends or family of the founder . The organization’s structure and behavior have all the signs of classic founder’s syndrome.
In a healthy nonprofit environment, staff are allowed (even encouraged) to push back, ask hard questions, have their dissenting opinions heard. And the board of directors has the ultimate strategic and fiscal authority for the organization. As a group, they debate and grapple with big strategic decisions. And, as a group, board and staff together are charged with achieving the mission.
When founder’s syndrome is present it can spell trouble for a nonprofit. Far beyond the PR nightmare we have witnessed the past week with Komen, founder’s syndrome can fundamentally weaken an organization. It can make the organization’s funding and brand name overly reliant on one person. It can cause a lack of critical and innovative thinking. Ultimately, it can mean that the organization becomes less about social impact and more about the personality of the founder.
What has played out with the Komen Foundation over the past few months should be a cautionary tale for other nonprofits. To be strong, effective, innovative and sustainable, a nonprofit must encourage a culture of group ownership. It remains to be seen if Komen learns from their mistakes, but at the very least perhaps other nonprofits can.
If you want to learn more about overcoming founder’s syndrome and creating a succession plan for your nonprofit, check out the Moving Beyond a Nonprofit’s Founder webinar.
Photo Credit: Jeffrey