08
2016
Let’s Prove Howard Buffet Wrong!
Here’s what Buffet believes: “Charity doesn’t solve a long-term problem. It addresses an immediate situation, but it won’t solve anything.” He still gives money philanthropically, but prefers to be part of the movement to achieve impact through entrepreneurial solutions. Yet, we in the nonprofit world, certainly up to our eyeballs in immediate situations, also know a considerable amount about longer-term solutions. Take homelessness. Much of the resources that are available are spent in the day-to-day task of sheltering and feeding those experiencing homelessness. Yes, true, although we do know that first obtaining secure, long-term, safe housing in an environment where…
30
2016
Is Impact Investing Working?
A Post from Jim Toscano An early indicator in preliminary findings in an ongoing study from the Wharton School is demonstrating that impact investing in companies doing desirable social or environmental work does not necessarily have to compromise financial return. The dual bottom-line goals of financial return and long-term impact seem possible. “Great Expectations: Mission Preservation and Financial Performance in Impact Investing” analyzed the performance of over 50 private equity funds focusing on impact investing. Examining more than 500 specific investments, the study found these investments had similar results as such indices as the Russell 2000. The private equity funds chosen…
15
2015
Guest Post – A Nickel Sent Was A Nickel Wasted (Almost)
By Jim Thalhuber I received a solicitation in the mail today from a well-known national nonprofit organization and there it was, peeping through the small, round window on the front of the envelope — a shiny, brand new 2015 “Return to Monticello” nickel, minted in Denver, bearing an image of President Thomas Jefferson (based on the Rembrandt Peal painting of 1800) on the obverse and the 1938 restored design of Jefferson’s Virginia home of Monticello on the reverse. I trust/hope that the soliciting nonprofit organization has done its homework and can prove that the nickel gambit is effective in securing new…
23
2015
Organizing for Success
As consultants, we are engaged for many reasons: an organization has a great mission, but needs help to operationalize its program; or an organization has a need for funding, but doesn’t have a plan; or the Executive Director micromanages and needs help in sorting out what she/he should actually be doing. One thing every organization needs is time. Time to plan. Time to think about the how’s, who’s and when’s. Planning is key to operational success. Yet, we hear clients tell us they feel reactive or they are constantly trying to get ahead of the work, ahead of funding deadlines, ahead…
02
2015
A New, Old Fear
Since the great recession of 2007-2010, gifts to charities have changed in subtle ways. Not only was there a temporary reduction in overall totals, but the mix has also changed. The interior and shape of the gift pyramid have changed. Donor behavior has changed. There are many bright spots as we emerge from the crisis. We hear many accounts of increases in digital giving, often in small amounts, although in larger numbers. Certain “days” resound with increasing totals, such as the Give to the Max and Giving Tuesday. Crowd-funding may be a new avenue, or a temporary fad. We also…
06
2014
What Next?
Will all nonprofits-agencies, foundations, associations, support groups, etc.- have to register with the feds as commodity-pool operators if they have endowments or other invested assets? In his Wall Street Journal column, Jason Zweig reports that the Dodd-Frank Act requires Commodities Future Trading Commission registration if an organization that oversees money “for more than one entity-other nonprofits, certain affiliates, or individuals- and invests, even indirectly, in certain financial contracts.” Nonprofits, per se, are not exempted from the provisions of the Act, which is aimed at the causes of a number of financial collapses due to investments in high risk deals including…
28
2014
Is this a Good Idea?
Do we need yet another group organized to promote nonprofit organizations and defend their good name? Do we need a march to support “the cause of causes?” Dan Pallotta, the controversial special events organizer and TED talk champion of nonprofit organizations’ need for such things as sufficient overhead and competent administration, has just formed the Charity Defense Council. Do we need Defense, or do we really need Offense? The Council purpose is to create better, widespread public understanding of nonprofits’ need for appropriate overhead, for market compensation of workers and for greater public support for increased giving. The CDC’s agenda…
14
2014
Creating a Culture of Philanthropy
Everyone these days appears to be using the concept of a “Culture of Philanthropy” to get the point across that nonprofit organizations rely on resources and relationships for their sustenance, if not their existence. When googled, the concept receives 461,000 entries, seemingly mostly from consulting firms seeking business. The phrase is a great summary of what nonprofits are all about, especially in a procedural way. Substantively, we research, we teach, we feed, we exhibit, we heal, we preach, we tinker—we do many things benefitting civil society. Procedurally, we’re being told that our culture—our beliefs, opinions, values, orientations, relationships, and interactions—needs…
19
2014
What Does the Village Need?
Often, in many contexts, we hear the saying about, “It takes a Village to…” But what does the Village itself need these days to be able to do what it is supposed to do? Ultimately, if the Village is that important, we’d better make investments, positive investments, in any way we can. Conventionally, we look to three sources for this investment in the Village, here and abroad: government, private enterprise and philanthropy. Not one can do the job. It seems that two of the three are becoming quite limited in ability to invest. Government investment in infrastructure is at a…
03
2014
Are There Too Many Nonprofits, or Too Few?
We read and hear volumes about the growing number of nonprofit organizations, now approaching one million nationally, with consequent warnings of imminent disaster for many. The causes of the disaster vary, according to source of commentary. Competition for resources is big: there just isn’t enough charitable money to pay for it all. Too many groups asking foundations, corporations and individuals for much more than is available makes difficult choices. Then there is the claim of overlapping service or uncoordinated outreach, followed by lack of efficiency, thus reduced effectiveness. Underpaid staff almost exploited by mission and rapid turnover of personnel complete this analysis….