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wealth inequality

Why Philanthropy Must Speak Out: An Interview with Grant Oliphant

In today’s Social Velocity blog interview, I’m talking with Grant Oliphant, president of The Heinz Endowments (and frequent contributor to their excellent blog).

Prior to running The Heinz Endowments, Grant was president and chief executive officer of The Pittsburgh Foundation for six years. Before that, he served as press secretary to the late U.S. Sen. John Heinz from 1988 until the senator’s death in 1991.

Grant frequently leads community conversations around critical issues such as public school reform, civic design, the ongoing sustainability of anchor institutions, domestic violence, riverfront development and various socio-economic concerns. He also serves extensively on the boards of local nonprofit and national sector organizations, including the Center for Effective Philanthropy, which he chairs. He has also served on the boards of Grantmakers Evaluation Network, Pennsylvania Partnership for Children, and the National Children’s Book and Literacy Alliance.

You can read other conversations with social changemakers in the Social Velocity interview series here.

Nell: You have written on the Heinz blog and elsewhere about the importance of philanthropists speaking out against government policies or decisions that are at odds with their work. However, philanthropy is often hesitant, because of both real and perceived limitations, to become too political. What do you think philanthropists, and the nonprofits they fund, can and should do to speak out against political decisions that are at odds with their missions?

Grant: This question makes my brain hurt. I mean, seriously, we live in a time when everything is labeled as political—affirming the science of climate change, standing up for equity, denouncing racism, defending basic math, you name it. A cultural institution we support recently faced criticism from its own docents for posting an inclusion policy they condemned as “political” because it welcomed all visitors, including immigrants. When your core values are suddenly defined as political, what are you going to do—run from your ideals and hope they somehow survive in the shadows? Or are you going to step into the light and advocate for what you say you believe in?

We have to remember this is about policy and the marketplace of ideas and values, not politics. Philanthropy shouldn’t be about trying to influence who wins an election, and private philanthropy can’t lobby on specific legislation. But foundations of all ideological bents have long understood that on some issues, the only way to bring about meaningful change is to persuade the broader culture that it matters and then translate that into supportive policy. In telling the story of its own impact, philanthropy loves to point at successes like universal vaccinations. But now even vaccines are under attack, along with the science informing them. So what should philanthropy do—stand mutely by and pretend it doesn’t have a point of view on saving lives and preventing suffering, or for that matter on the importance of science as a basic decision-making tool for public policy? You can’t win the battle of ideas by hiding.

We have to speak honestly about the perils of policy rooted in magical thinking and so-called alternative facts. That sort of candor is described as courageous in the foundation world, but really what’s brave about speaking the truth when everything you believe in and work for is under attack? We are witnessing a jaw-dropping assault on fundamental institutions of democracy—the press, the judiciary, free speech, basic notions of civility, even the right of the people to assemble. The American system of philanthropy, which hinges on an engaged civic sector, simply cannot work in the context of dysfunctional or broken democracy. Speaking out against these attacks is basic self-defense for the sector but it’s so much more than that. It’s really a defense of the democratic freedoms and governance that make philanthropy matter in the first place. And if we’re not willing to fight for that, then what in the world do we stand for?

Nell: Some argue that philanthropy is at least partly to blame for the divides currently impacting our country because philanthropy is a result of wealth inequality and sometimes perpetuates inequity. What are your thoughts on that?

Grant: Martin Luther King commented on this far more eloquently than I ever can, and recently Darren Walker at The Ford Foundation has done some excellent writing on it. There’s not much more I can add. No question, the ideal goal for philanthropy should be to help create a society where it is no longer necessary. And it’s fair to ask whether a by-product of massive wealth disparity can really address the social inequity that in some ways helps drive it.

At the same time, to dismiss philanthropy as merely a symptom of inequality is to understate both the enormous value of enterprise creation and the positive social impulse that drives philanthropy at its best. Foundations and other forms of philanthropy may be imperfect expressions of an imperfect system but they also can do tremendous good, especially at a time when government is paralyzed and the private sector has become so removed from social and community concerns.
So much of the social good that philanthropy has helped support—from sensible thinking on climate change to marriage equality—is being unraveled right now, and that’s terrifying. But if nothing else maybe it’s giving those of us who are privileged to work in this field a renewed appreciation for the value philanthropy really can contribute and a heightened sense of responsibility and urgency to actually deliver it.

Nell: What role do facts play? We are arguably living in a “post-truth” world where opposing sides can no longer agree on a common set of facts. How can the social change sector hope to create change when there is no longer agreement about what the current reality is? What do we do about that?

Grant: I’d joke that the Bowling Green massacre changed my thinking on this, but I worry folks might miss the sarcasm. This is a scary time. We have leaders just making stuff up and hiding behind disinformation machines posing as media. It’s bizarre but that’s the landscape now, and I hope the social sector wakes up to it in two critical ways.

First, we need to stop confusing facts with persuasion. Our sector loves to throw data at people and preach from what we assume is our scientific and moral high ground. But neuroscience has taught us that people rely more on their emotions and “gut feelings” to make important decisions than they do on reason. It turns out we are more likely to be persuaded by a good story than by a good fact. I’ve long thought our sector could do better at simply bearing witness, at telling stories that help people see themselves in the lives and suffering of others. That’s the most basic work of philanthropy, this process of sowing compassion. In a time of unprecedented division when humanity’s notions of who we mean by “us” are being challenged as never before, philanthropy needs to get back to that.

But, second, at the same time we need to fight like hell against the normalization of “alternative facts.” Data may be a weak tool to shift closely held beliefs but over time it can move civilizations. Think about how dismissive the medical establishment was initially of the idea that germs cause disease and how conscious our society is today of antibacterial everything. Truth wins in the end, but we need to remember the end can take a long, long time to arrive. Give up on science and suddenly you end up in the Dark Ages for a millennium. For philanthropy that means continuing to invest in science and research, but it also means investing in the institutions and processes that help facts become more broadly known, including journalism. And it means not backing off when propagandists try to peddle their lies as just an alternate reality. We need to have the courage to call that nonsense out.

Nell: For many in the social change sector these are dark days. What gives you hope?

Grant: Oh wow, I could so easily sink sanctimonious piety here, which is not what any of us needs right now. The truth is, there are plenty of days I despair over what’s happening, and it’s important to acknowledge that. If you work in the social sector and these aren’t dark days for you, then you seriously aren’t paying attention.

For me, though, hope is connected with purpose. If we only feel hope when it seems like we’re making progress or winning, then that’s not really hope, is it? It’s expectation. And there is absolutely nothing about the goals we are fighting for that can be taken for granted. Every single step of humanity’s journey toward justice and sustainable community has been marked by hardship and reversals, and often outright losses, so who are we in this era to only feel hope if the circumstances are right?

If it were up to me, Rebecca Solnit’s “Hope in the Dark” would be required reading for us all right now, because the only way any of this gets better is if people of good intent keep pushing, even when we don’t know what the outcome will be, even when it feels like we’ve lost on something irredeemable, like the climate. We have to be humble enough to own that none of us ever really “controls” anything, but over time somehow progress still happens as long as we keep at it.

The other day the President tried to drag my hometown of Pittsburgh into his myopic decision on the Paris climate accords. I loved how local leaders here and all over the country responded with a collective roar of “no way,” which was not just about saying “that isn’t us” but went beyond that to “we’ll do it ourselves.” That’s what gives me hope—all the people I get to work with every day who greet the darkness by bringing the light of their own creativity and unrelenting determination.

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Can Philanthropy Lead In These Challenging Times?

Last week I was in Boston for the Center for Effective Philanthropy conference. It was an amazing gathering of leaders talking about how philanthropy should respond in these difficult times. If you couldn’t make the conference and want a run down of the three days, CEP’s Ethan McCoy recapped Day 1, Day 2 and Day 3 on the CEP blog. And you can also see the #CEP2017 Twitter feed.

The conference gave me a lot to think about, so I wanted to share a few of my takeaways.

The conference was bookended by two incredible speakers. I was blown away by the first night’s keynote address by Bryan Stevenson. Bryan is the founder and executive director of the Equal Justice Initiative in Alabama, which works to end mass incarceration and challenge racial and economic injustice.

He gave a completely mesmerizing speech about the historic roots of racial inequity and injustice and how we can move forward from America’s past and present toward a more just and equitable society. He argued that there are four things we must do:

  1. “Get proximate” to communities we want to help
  2. Work to understand and change the long-standing American narrative of racial difference
  3. Stay hopeful, and
  4. Accept that the work will be uncomfortable

It is impossible to do justice to his amazing speech, so I offer his Ted Talk from 2012 to show you what a thought-provoking speaker he is. I also plan to read his best-selling book, Just Mercy: A Story of Justice and Redemption, about how to fix our broken criminal justice system.

The final keynote speaker of the conference, Harvard historian Nancy Koehn, gave a riveting talk about looking at historic leaders, like Ernest Shackleton — an explorer who led expeditions to the Antarctic — to draw lessons about leadership in our current times.

She argued that “leaders are not born, they are made.” Every single one of us could step up and become a leader. And what defines a real leader is that “effective leaders help us overcome the limitation of our own selfishness, weakness, laziness, fears and get us to do harder, better, more important things than we can get ourselves to do on our own.”

In between those two amazing speakers were breakouts and plenaries that encouraged philanthropy to step up to the plate. There were urgings for foundation leaders to embrace advocacy, support nonprofit sustainability, explore state-by-state (instead of national) strategies for social change, listen to beneficiaries, understand their own networks, and fund evaluation, among other things. There certainly was an underlying theme that philanthropists should do more and be more in this new political era.

And these are incredibly challenging times, to be sure. Professor of Economics at Stanford, Raj Chetty, painted a very dire picture of income inequality in the U.S. Things have only gotten worse in the past several decades. In fact, as the slide below demonstrates, “the American Dream” is actually now more attainable in the U.K., Denmark and Canada than it is in the United States.

The final plenary session of the conference really pushed philanthropists to think hard about whether they are helping or hurting the causes they support. Jim Canales, President of the Barr Foundation, led a conversation among Sacha Pfeiffer (reporter from the Boston Globe), Vu Le (author of the Nonprofits With Balls blog), Grant Oliphant (president of the Heinz Endowments), and Linsey McGoey (senior lecturer at the University of Essex) critiquing philanthropy’s influence.

In particular, I really appreciated Linsey McGoey’s determination to push philanthropy farther, arguing that philanthropists working on issues of inequity need to address the much larger systems at work: “If foundations care about inequality, they should focus on the tax code and reduced government spending that worsens inequality.”

The CEP conference was an opportunity for philanthropy to take a hard look at itself and, I hope, find the determination to step up as the leaders we so desperately need now.

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Stand Up Social Change Leaders

moonshadow

These are difficult days. This past week I have felt incredibly lost. I have been thinking a lot, trying to understand what is happening in our country, in our communities, to and with our people. And I have been grappling, as I know you all have been, with how we move forward from here.

I have struggled with how to write the blog, doubting whether I can shed any light on something that none of us really understands. But then a colleague said to me, “It’s even more important now that you write. You have followers, and thus you have a responsibility to lead them toward hope.” That is a heavy lift, and I doubt that I can really hope to fulfill it, but I will reluctantly stand up and play my role as a leader.

But I ask the same of each of you.

Because the only way forward for our country is if each one of you, as our country’s social change leaders, stands up as true leaders in your work, your communities, our country.

And in my mind here’s how we start to make that happen.

Build community inside and out.
This week I attended a conference of social sector leaders and one of the speakers described how a sense of community is the backbone of resilience. If we are going to get through this, we cannot isolate ourselves. We must find and forge community. And we must go beyond our own comfortable spheres. Our country is really struggling right now. We must find ways, big and small, to connect communities, tap into new ones, and stretch our networks. We cannot let the red/blue, rural/urban, middle/working class divides that this election highlighted define us as a country. We are better than that. So wherever you are, break down those walls and connect — really connect — with people inside and outside of your circles.

Discover empathy.
And in order to do that, you must embrace empathy. Another colleague said to me this week, “Do you know how we can move forward from this? Empathy.” And that is absolutely right. Start here. Yes this election brought out the worst in us, but perhaps it did so because of some pretty stark failings of our economic and political systems. So let’s stop blaming and instead work to understand the realities that people are living and figure out solutions.

Be a real leader.
Which brings me back to where I started. We are suffering a crisis of leadership in our country. I truly believe that the majority of people who voted for Trump were not casting a vote for hatred, bigotry, and xenophobia, but were instead casting a vote against a deeply flawed economic and political system. We need real leaders — big and small, and in every corner of this country — to stand up, speak up, and do the hard, right thing. We have to stop waiting for someone else to come forward. We are each responsible for whatever corner of influence we hold, and we must use that influence for good. So dig deep and figure out how you can help, not hurt, your communities and your country. Step away from the despair and the fear and instead move whomever you can, however you can, toward the light.

I am choosing to find the opportunity in this darkness. And yes, that is a choice I have made today, and a choice I will have to continue to make every single day after.

And the opportunity I see is that these times can force each one of us to take a hard look at ourselves and emerge as empathetic leaders willing to bridge divides, build communities and help our country, our democracy, ALL of our people, find a way forward together.

If you have felt (and continue to feel) like giving up — as I have many times over the past week — please hear me when I say that you simply cannot. Now more than ever our country needs you social change leaders to point the way toward the future. We must resist — at all costs — the urge to stick our heads in the sand, curse those who didn’t vote the way we wanted, or slink away in fear of the future.

Now more than ever we must all, every single one of us, step up as leaders for these new challenges we face. Whether that’s inspiring your staff, or marshaling your colleagues, or getting outside your own walls to find common ground. We all have at least one way in which we can be a true leader.

So find it, embrace it, and get to work.

Photo Credit:Wilson Lam

 

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10 Great Social Innovation Reads: Sept 2016

social changeA lot of the conversation in September centered around inequality, philanthropy and data. When do data and philanthropy address inequality and when do they actually reinforce it? And if you add to that discussion about whether donors really care about impact; concern about the distracting, addicting influence of social media; and a call for philanthropists to be more supportive of nonprofit organizations, September was a very interesting month in the world of social change.

Below are my picks of the 10 best reads in September. For a longer list, follow me on Twitter @nedgington. And for previous months’ 10 Great Reads lists go here.

  1. Equity has certainly become the new buzzword in philanthropy. But some are skeptical that philanthropy, as it currently operates, can actually impact it. Writing in The Guardian, Courtney Martin argues that in order to truly achieve equity, philanthropy must fundamentally change: “If we really want to reinvent philanthropy then we are going to have to look at the underlying historic and structural causes of poverty and work to dismantle them and put new systems in their place. It’s also about culture – intentionally creating boundary-bashing friendships, learning to ask better, more generous questions, taking up less space. It’s about what we are willing to acknowledge about the origins of our own wealth and privilege. It’s about reclaiming values that privilege often robs us of: first and foremost, humility. But also trust in the ingenuity and goodness of other people, particularly those without financial wealth.”

  2. Marjorie Kelly argues that the key to addressing wealth inequality is to return to the old model of worker ownership.

  3. And speaking of wealth inequality, The New York Times slices and dices U.S. income data over the last couple of decades to understand how inequality varies by state over time.

  4. According to Cathy O’Neil’s new book, Weapons of Math Destruction, the increased availability of data may actually be worsening wealth inequality.  Journalist Aimee Rawlins reviews O’Neil’s book, which paints a very unsettling picture of how data is being used to lengthen prison sentences for people with a family history of crime, raise interest rates on a loan because of the borrower’s zip code, and otherwise reinforce our broken system. But perhaps data can also help address wealth inequality. The Salvation Army and Indiana University’s Lilly Family School of Philanthropy have released a new tool for mapping poverty in the U.S. The Human Needs Index (HNI) uses Salvation Army service data from communities across the country to track human need across seven areas. The idea is that with an improved ability to map need, philanthropy can more effectively address that need.

  5. One of the biggest uses of data in philanthropy is to prove the impact an intervention has, but Matthew Gerken argues that donors aren’t actually interested in impact. New research from Penelope Burk’s Cygnus Applied Research might disagree.

  6. Andrew Sullivan, the formerly prolific blogger, has had an epiphany about our addiction to social media and writes an amazing long-form piece about our “distraction sickness.” If you worry that our always on culture is leaving something to be desired, read this.

  7. Last month many were bemoaning philanthropy’s slow and weak response to the devastating summer flooding in Lousiana. Well, it looks like crowdfunding has come to the rescue.

  8. Long-time funder Elspeth Revere, retired from the MacArthur Foundation, writes a scathing critique of philanthropy’s unwillingness to fund nonprofits effectively and sustainably. As she puts it, “The challenges facing America and, indeed, the world require philanthropy to be as effective as possible. Nonprofit organizations are philanthropy’s partners in addressing these challenges. They have unusual flexibility to take risks and pursue solutions to our most pressing problems. As grant makers, we need to focus our attention and philanthropic resources on building strong leadership and solid, sustainable, and diverse institutions that address the problems and opportunities we care most about.” Amen!

  9. Jyoti Sharma, president of the Indian water and sanitation nonprofit FORCE, worries that a current focus on social entrepreneurship as the solution to world ills leaves much behind. As she argues, “Do we need to see social entrepreneurship as a “non”-nonprofit? Should we instead promote hybrid models that plan the social change effort with both charity and revenue streams? Should we encourage community entrepreneur networks where charity funds are used to support entrepreneurial efforts from within a beneficiary community that help solve their social problem? Should we advocate for governments and corporates to join hands with nonprofits in planning, delivering, and monitoring welfare services? Equally, should we set ethical and social responsibility standards for entrepreneurships and applaud them for their contribution to society?”

  10. And finally, the Nonprofit Tech for Good blog pulls back the curtain on social media with their “12 Not-So-Great Realities About Nonprofits and Social Media.”

Photo Credit: Ixtlilto

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10 Great Social Innovation Reads: July & Aug 2016

social changeSince I was on vacation in late July and early August, I’m combining the last two months of great reads into one. The summer of 2016 certainly was a dark one. From continuing police violence against black men, to the shootings of police officers in Dallas and Baton Rouge, it seemed we were becoming a nation truly divided. And tremendous flooding and devastation in Louisiana that was largely ignored by the media was heartbreaking to watch.

But, there were also moments of hope. From new research showing that donors are increasingly interested in investing in what works; to philanthropic leaders calling for better partnerships among the public, private and nonprofit sectors; to a way to move the conversation away from “overhead,” the summer months made for some very interesting reads.

Below are my picks of the 10 best reads in the world of social change in July and August. But let me know in the comments what else I missed while I was out.

If you want a longer list of reads, follow me on Twitter @nedgington. And you can read previous months’ 10 Great Reads lists here.

  1. More police violence against black men and the shootings of police officers in Dallas and Baton Rouge arguably broke the country’s heart in July. Ira David Socol traced Americans’ growing fear of “the other” over the past few decades and how it has contributed to where we are today. And Pew Research offered some data about how Americans see the Black Lives Matter movement. While Heinz Endowment President Grant Oliphant called for an end to the violence, in an incredibly moving series of blog posts where he wrote:  “We are called — by everything our diverse faiths teach us, by everything we believe about ourselves and our country — to come together as one people, whether we bravely wear the blue or have come to fear those who do. We are called by all that is good in our hearts to see ourselves in all the fallen, all the lives lost, all the families grieving, all the communities struggling to make sense of their brokenness. We are better than this violence. Deep down in our souls we know this. We are so, so much better than this.” And President Obama gave an incredibly moving speech at the funerals for the Dallas police officers, where he encouraged us all to, “With an open heart…worry less about which side has been wronged, and worry more about joining sides to do right.”

  2. But the Black Lives Matter Movement is not just aimed at addressing police violence, the Movement recently released a K-12 education platform designed to fix “a U.S. public-school system…so broken that college is never an option for many young people of color.”

  3. Amid these deepening divides and a growing wealth inequality, Andy Carroll from Exponent Philanthropy argues that philanthropy can no longer be expected to solve everything. Rather, we need partnerships among the public, business and nonprofit sectors to address our growing challenges.

  4. And then there was the tremendous flooding and devastation in Louisiana. Despite the fact that it was the largest natural disaster since Hurricane Sandy in 2012, the media and philanthropy largely ignored the disaster.

  5. Curtis Klotz from the Nonprofits Assistance Fund offers a phenomenal graphic to use in changing the conversation from “nonprofit overhead” to “core mission support” at your nonprofit.

  6. And speaking of how nonprofits use money, FASB (the Financial Accounting Standards Board) just released some significant updates to their standards for nonprofit accounting. The changes impact net asset classes, investment returns, expenses, liquidity and availability of resources, and presentation of operating cash flows. Every nonprofit leader should understand these important changes.

  7. Founder of Family Independence Initiative, Mauricio Lim Miller argues that just as businesses constantly use technology to understand consumer behavior, nonprofits should tap into technology to “let the people they serve dictate what works best.” And Melissa Chadburn might agree with Mauricio’s premise that fighting poverty requires a better understanding of the causes of that poverty given her scathing piece, “How Well-Meaning Nonprofits Perpetuate Poverty.”

  8. Penelope Burk’s annual fundraising study revealed that more donors are interested in results than ever before. Five years ago, only 16% of donors surveyed gave based on a nonprofit’s results vs. a whopping 41% this year.  And research from MobileCause shows that Millennials and GenXers are now the vast majority of the U.S. workforce so if you want to reach them as donors you better be online and mobile.

  9. Ever the trailblazers in foundations interested in building nonprofit capacity, the David and Lucile Packard Foundation unveiled a fabulous new online Knowledge Center with tons of resources for improving nonprofit organizational effectiveness.

  10. Jim Schaffer questions how “philanthropic” the digital giants Amazon, Facebook and Google actually are. And Lucy Bernholz warns nonprofits of the dangers of trusting Facebook’s new fundraising offerings.

Photo Credit: radness.com.au

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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: January 2014

school roomJanuary was all about wealth inequality, all the time. The 50th anniversary of President Johnson’s War on Poverty was an appropriate backdrop to growing unease about the fact that the rich are getting exceedingly richer.

But there is much debate about what the solution is and even how to frame the problem. And where do nonprofits fit in, and what does it all mean for the future? It is an enormous, far-reaching and complex problem.

Below are my picks of the 10 best reads in the world of social innovation in January. But please add to the list in the comments. And if you want more, follow me on Twitter, Facebook, LinkedIn, or Google+.

You can also find the list of past months’ 10 Great Reads here.

  1. This year marks the 50th anniversary of the launch of President Johnson’s War on Poverty. Despite the long attack, wealth inequality is getting worse, not better, and is becoming a very hot topic. But Mark Schmitt, writing in New Republic, takes issue with how the inequality conversation is being framed. He argues that “we need a way to talk and think about inequality that presents it as a system, and then finds the points of intervention that might actually change the system.”

  2. Thomas Piketty’s new book, Capital in the Twenty-First Century, due out in March and reviewed this month by Thomas Edsall in the New York Times, takes reframing the inequality conversation even further. Piketty makes a rather depressing argument that when viewed over history wealth inequality is the rule rather than an anomaly and without huge systemic change (like a global wealth tax) will only get worse.

  3. And where does the nonprofit sector fit in? Mark Rosenman argues that nonprofits should play a pivotal role in advocating for change: “If the United States is again to be a nation where upward mobility applies to more than those already near the top, nonprofits must exercise their moral authority and advocate for economic policies that give a hand up to the poor and advance a vision of the common good that includes all Americans.”

  4. The often employed method to combat poverty – education – may not be the answer anymore. Clay Shirky takes higher education to task for “preserving an arrangement that works well for elites—tenured professors, rich students, endowed institutions—but increasingly badly for everyone else.”

  5. But for David Bornstein, appropriately from the world of solutions journalism, there are still some bright spots to point to in the War on Poverty.

  6. Maybe part of the solution lies in changing our measures of success. This video suggests we move from Gross Domestic Product to a Social Progress Index to measure a country’s success.

  7. They say long-form journalism is coming back and let’s hope so if Drew Philp’s piece “Why I Bought A House In Detroit For $500” is an example of the trend. He beautifully describes the process of investing his heart and soul in a house and neighborhood in crumbling Detroit.

  8. And, on a related note, it turns out that “gentrification” may not be a dirty word anymore, according to NPR.

  9. In other news, writing in the Nonprofit Quarterly Eileen Cunniffe provides some interesting examples of how arts nonprofits are reinventing themselves and their relationship to money.

  10. Finally, the Nonprofit Tech For Good blog rounds up 19 really interesting social media and fundraising infographics for nonprofits.

Photo Credit: University of Iowa Libraries, 1960

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10 Great Social Innovation Reads: December 2013

Town2In my eyes, December was about three main things: the After the Leap conference about moving nonprofits to manage to outcomes, predictions about how the social sector will evolve in 2014, and the impact of the second annual Giving Tuesday. Added to the mix were some demonstrations of the growing wealth inequality (a prediction for 2014 from many) and a dash of controversy about the beloved TED Talks. It all made for a very interesting month.

Below are my picks of the 10 best reads in the world of social innovation in December. But please add to the list in the comments.And if you want to see more of what catches my eye, follow me on Twitter, Facebook, LinkedIn, or Google+.

You can also find the list of past months’ 10 Great Reads here.

  1. I already linked to several people’s great 2014 prediction pieces in my 5 Nonprofit Trends to Watch in 2014 post, but Tom Watson’s Trends and Collisions That Will Challenge the Social Sector in 2014 in Forbes is particularly thought-provoking. He takes what he calls a “meta approach” by analyzing themes from big social sector thinkers and “adding a few morsels to the stew.”

  2. One of the predictions on both my and Tom’s list was that the growing wealth inequality will become increasingly obvious. Robert Reich helps this trend by providing a scathing critique of modern philanthropy, arguing that it is becoming less about solving wealth inequality and more about reinforcing it: “Fancy museums and elite schools…aren’t really charities…They’re often investments in the life-styles the wealthy already enjoy and want their children to have as well.” And Peter Capelli, writing on the Harvard Business Review blog, seems to agree, but on the corporate side. He takes issue with “companies that pay poverty-level wages or thereabouts to their employees [while] spend[ing] a good deal of effort to be good corporate citizens in other areas.”

  3. Some people claim the second annual Giving Tuesday was a great success with a 90% increase in day-of online donations over last year, but others, like Michael Rosen, argue that Giving Tuesday is not actually channeling new money to the sector.

  4. The first-ever After the Leap conference in December promoted nonprofit performance management. Perhaps the high point of the conference was Nancy Roob’s (head of the Edna McConnell Clark Foundation) stirring keynote pushing both foundations to fund outcomes management and nonprofits to demand it. The Stanford Social Innovation Review did a great interview with her where she makes many of the same points, and an interview with Mario Morino, the main organizer of the conference.

  5. Writing in The Guardian, Paula Goldman from Omidyar Network discusses how, with impact investing, the blending of social and profit motives is really starting to take hold: “Fifteen years from now…We’ll look back on a host of innovations benefitting millions of disadvantaged people – in education, in healthcare,…in solar lighting—and will have a hard time remembering the day when people viewed charity and business as working towards opposite goals.”

  6. Leon Neyfakh writes a fascinating expose in the Boston Globe about donor advised funds, which he claims is “where charity goes to wait.” $45 billion—more than the endowment of the Bill and Melinda Gates Foundation – currently sits idle in donor advised funds and that amount is growing fast. A huge financial opportunity for the sector.

  7. The Center for Effective Philanthropy released a new study about how much impact foundation CEOs think their philanthropy has had. Philanthropy heavyweights Paul Brest and Lucy Bernholz each give their take on the study’s findings.

  8. I have loved writer Steven Pressfield since I read his fabulous The War of Art last summer. His blog about the creative process is a fount of knowledge and inspiration. His post in December about envisioning and embracing the future in your industry applies to nonprofits too.

  9. The idea of networked approaches to social change has been around for several years and is gaining momentum. Writing in the Nonprofit Quarterly, Mark Leach and Laurie Mazur describe “the power and promise of networked approaches to social change…creat[ing] a force larger than the sum of their parts.” Definitely a trend to watch.

  10. And finally, I love it when someone steps back and asks some hard questions about something that everyone else assumes is amazing. Benjamin Bratton does just that about the beloved TED Talks, which he claims “dumb-down the future.”

Photo Credit: Imperial War Museums

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