Category Archives: Philanthropy

Philanthropy Daily Digest

I Want YOU at the Forum

The first Tactical Philanthropy Forum is being held in San Francisco. While I’m honored by the huge interest in the event, this blog’s readership is not concentrated geographically and so the vast majority of readers don’t have the option of participating… But there is a way.

I will now begin accepting online videos with questions posed to Paul Brest and Bill Somerville. Just record a video clip no longer than 30 seconds, upload it to any of the video portals listed below and email me a link to the video. A collection of the videos will be played at the Forum for the guests to answer live. We’ll also be recording and posting video of the entire Forum event here at Tactical Philanthropy in the days after the event.

The Tactical Philanthropy Community usually comes up with better ideas that I do, so if you have your own thoughts about how to use the video content just let me know. If anyone watched the CNN/YouTube presidential debates, you know that some people got very creative.

Here’s the list of portals that you can post your video to for consideration in this project:

  • Youtube
  • Blip.tv
  • Break.com
  • Dailymotion
  • LiveVideo
  • MetaCafe
  • MyVideo.de
  • Veoh
  • Lulu.tv
  • Vids.myspace.com
  • Vimeo

Don’t forget that a wait list has been started for the Forum now that it has sold out. I’m still hoping to squeeze in some more seats so add yourself to the wait list for first shot at any new seats. I’ll also send you a pre-announcement to the next Forum event so you can be sure to register early if you don’t get into this one.

Transparency is Not Enough

I just got a call from someone who, while very supportive of FORGE, made the point that transparency is not enough. What is critical is a well run social enterprise. This is a point that I haven’t made clearly enough: I see transparency as a necessary prerequisite for the nonprofit field to develop in a way that allows anyone to know who is running their social enterprise well.

Transparency is NOT enough, but in a world with limited transparency, we need to celebrate transparency on its own. To me, celebrating and rewarding FORGE’s transparency is what this is all about. It may be that FORGE is not a well run organization and it does not deserve our support. If you’ve been reading for the last week I think it is clear that emotionally I would like very much to see FORGE succeed and thrive. But what really excites me is that FORGE’s decision to be transparent means that at the end of this process it is very likely that we can all have conviction around whether or not FORGE deserves our funding.

Transparency is only a tool to better understand which nonprofit are well run. But it is a necassary tool and not the current norm. So while it is not the endgame, it should be celebrate as a worthy goal unto itself until it becomes the norm.

World Economic Forum: Dubai

Tomorrow I’m flying to Dubai. As I wrote previously, the World Economic Forum (WEF) has asked me to join their Council on Philanthropy & Social Investing. The Council helps set the agenda for the Forum’s annual gathering in Davos, Switzerland.

The trip to Dubai should be rather amazing. There are over 80 other Councils on subjects ranging from Climate Change to Systematic Financial Risk to Marketing and Branding. The Philanthropy council includes such notable names as Paul Brest, the president of the Hewlett Foundation, Matthew Bishop, The Economic magazine bureau chief and coiner of the word Philanthrocapitalism, Jed Emerson and Jacqueline Novogratz, founder and CEO of Acumen Fund. Members of other councils include:

  • Tony Blair, ex-Prime Minister of the UK
  • Al Gore, ex-Vice President of the United States
  • Chris Anderson, editor in chief of Wired Magazine
  • Vinton G. Cerf, Internet Chief Evangelist, Google Inc.
  • Chris DeWolfe, Founder and CEO, MySpace.com
  • Chad Hurley Co-Founder and CEO YouTube Inc.
  • Betsy Morgan, CEO, The Huffington Post
  • Barham Salih, Deputy Prime Minister of Iraq
  • Tim Brown President, CEO, IDEO Inc
  • Joel M. Podolny, Dean, Yale School of Management
  • Maria Bartiromo, Anchor, CNBC

While I’m in Dubai I’ll be blogging as much as I can although the actual council sessions are off the record. The conference will be amazing enough, but for anyone out of the loop realize that Dubai is probably one of the most amazing places in the world at the current time. Try running a Google Image search on the word Dubai! 25% of the world’s construction cranes are currently stationed in this small state!

Maybe I can get into the habit of posting more photos on this blog. Dubai would be a good place to start.

Curtis Chang Blogging on Social Edge

Philanthropy isn’t know for moving fast, but things are a little different online. As I wrote yesterday, I first proposed the idea of the Tactical Philanthropy Community providing resources to FORGE last Wednesday. By Friday I had Rich Polt of Louder Than Words and Curtis Chang of Consulting Within Reach officially on board. Other groups are currently in discussions. On Monday Kjerstin had met with Curtis and spoken with Rich. By Monday night, Curtis was blogging on Social Edge about working with FORGE.

I’ve told all parties involved that my one expectation is that everyone will embrace Kjerstin’s lead and publicly release everything relevant to their work with FORGE. Here’s Curtis’s first blog post (and may I say that he’s a natural blogger!)

How I got hooked
By Curtis Chang

I am a sucker for good sea bass.

Last Wednesday, Sean Stannard-Stockton, the influential author of Tactical Philanthropy, invited me out to lunch at one of those nice Asian fusion restaurants in Burlingame.

He waited until my Chilean sea bass - steamed and wrapped in a delicate origami paper box - had arrived and its ginger and garlic aroma was wafting up to my nose.

“I have a proposal,” he said.

He proceeded to tell about Kjerstin’s move to share openly about her financial plight with the online community at the Social Edge. As Sean has written, he felt her act highlighted an important issue for the nonprofit community: namely the need for greater transparency among nonprofit leaders, especially with the donor community.

I immediately warmed to the story. Partly it was agreeing with Sean on the issue of transparency. But I think for me it was even more Kjerstin’s biographical story of dropping out of Stanford (at least for a few years) to start FORGE on a shoestring. Right along there with my love of excellent seafood is my fondness for – and shared embodiment of – a “educational riches to rags” story.

So when Sean asked if my firm could help out in any way, I was predisposed to agree.

I’ll explain more about my consulting firm, Consulting Within Reach (CWR), in some future entry. Suffice it to say it is a group of ten professionals – mostly from Silicon Valley corporate backgrounds – that I recruited to use their skills to serve compelling causes. We specialize in building organizational capacity in areas like marketing, web development, fundraising, strategic planning, and more.

From my experience leading CWR, I wasn’t daunted in theory by her need to raise over $100K by the end of February (really more, if she were to put the organization on firmer footing). For instance, earlier this year we helped one of our clients, a startup nonprofit, raise almost $300K in a four week campaign. So I knew it could be done.

But that kind of concentrated effort requires an “all hands on deck” commitment from my entire team to cover all the organizational areas involved (marketing strategy, production of collateral, and more). We just weren’t ready for that effort on such short notice.

So I proposed another strategy: CWR would compose FORGE’s “foxhole prayer.”

There’s an old saying that “ there are no atheists in foxholes.” And soldiers who have survived near death situations regularly talk about having made vows to God during the crisis that if they survive, they promise they will do X,Y, or Z.

Well, Kjerstin needs a “foxhole prayer.” Because any potential donor considering helping FORGE survive this crisis is going to be asking (silently if not aloud), “What are you going to do so you won’t be back next year asking for another rescue?”

In the next few weeks, Kjerstin needs to be ready with an answer.

That’s where we’ll come in. CWR’s main role will be to outline a long term plan that builds FORGE’s capacity to market, fundraise, and manage itself in a sustainable fashion. If FORGE makes it out of this current foxhole, they – and their donors – will know what they need to do.

And while I can’t promise to raise the money for her, I’ll help out with guidance and support where I can. I can’t jump into the foxhole with her, but I’ll visit regularly.

I agreed to all this on Thursday, the day after I had lunch with Sean. On Friday, when the folks at Social Edge heard about this arrangement, they thought it would be a further interesting experiment in transparency to share publicly about our process. They asked Kjerstin and me if we would jointly blog during the project.

We agreed but I stipulated that the normal client expectations of confidentiality would then not apply. For instance, if I discovered that FORGE really didn’t have a prayer, well, then I would blog about that. If you’re going to survive by the sword of transparency, you’ve got to be ready to die by it. Kjerstin agreed without hesitation.

So here we are, less than a week after that fateful lunch. I’m not sure how this will all work out and it could easily all blow up on us.

If it does, Sean, you owe me some more sea bass.

Election Day: Go Vote!

If you read this blog you care about philanthropy. If you care about philanthropy you care about your community. You take action on your belief that supporting other people is an important and worthwhile goal. In that context it seems inconsistent to not vote. So in the spirit of someone who encourages people to use effective tactics to further their social goals, I encourage you to take the time today to go out and vote.

Oh, in case you need some motivation, professors from the University of Houston, UC Berkeley and Columbia University recently estimated that a single vote is the philanthropic equivalent of a $40,000 donation! (hat tip: Lucy Bernholz)

Tactical Philanthropy Forum Waitlist

Given the quick sellout of the Tactical Philanthropy Forum, I’ve created a wait list. If you sign up for the wait list, you’ll get advance notice when tickets go on sale for the next Forum and if any spots open up for the current Forum you’ll be the first to know.

Sign up for the wait list here.

Tactical Philanthropy Community Helps FORGE

OK, enough talk. Let’s see if the Tactical Philanthropy community just likes to debate or whether we can accept a call to action.

A quick recap: FORGE is a small nonprofit that works with refugee communities in Africa to help them gain community rebuilding skills. The organization is on the ropes due to a mismatch between their fundraising strategy and their impact strategy. But changing to a model where refugees provided training instead of outside volunteers (a model most international development experts would applaud) they cut off a key source of funds (the volunteers generally raised significant funds from their networks back home in the United States or other developed counties). The executive director Kjerstin Erickson decided to use her blog on the Skoll Foundation’s Social Edge website to embrace “radical transparency” and lay bare her situation.

Here at Tactical Philanthropy I called her Forging Ahead blog “the most important nonprofit blog” due to her decision to go transparent. In a later post I wrote that I was not explicitly advocating for the refugee cause, for FORGE or for Kjerstin, but I very publicly wanted to support the cause of transparency and Kjerstin’s brave decision.

Then the Tactical Philanthropy community kicked into action:

  • I had lunch with nonprofit consultant Curtis Chang of Consulting Within Reach and told him I wanted to hire him to provide an executive summary type report to FORGE on what they should do next. The hook was that the report had to be published on my blog.
  • I then spoke with Victor d’Allant, who runs Social Edge and told him I wanted Social Edge to publish the report as well.
  • Victor upped the ante and suggested that Curtis take on a larger assignment with FORGE and blog about the experience along side Kjerstin on the Forging Ahead blog.
  • Curtis took on the challenge and decided to do the project on a pro bono basis and work with Kjerstin for an indeterminate period of time.
  • Rich Polt, founder of nonprofit PR consulting firm Louder Than Words left a comment on Tactical Philanthropy giving advice to Kjerstin on her PR strategy.
  • I called Rich and suggested that he offer pro bono consulting in a more formal arrangement with FORGE.
  • Rich suggested a larger contract than I expected and he agreed to provide a minimum of 20 hours of free work.
  • Rich than suggested that a large nonprofit that specializes in financial analysis might be willing to offer their assistance as well. He’s on the case.
  • Another Tactical Philanthropy reader has been busy pitching a foundation on why they should consider funding FORGE and sharing details of the pitch with me.

On Friday I met with Kjerstin (my first time meeting her) and told her what I had put together. I told her that if she wanted to accept all of this, the one requirement was that she waive confidentiality with each group so that I and they had the opportuntity to share their side of the story. Kjerstin didn’t even blink before telling me that they could write anything they wanted.

FORGE needs to raise close to $200,000 in order to close their budget and retrofit the organization so that they have the fundraising capacity to run sustainably next year. That’s a fair bit of money for such a small organization and I don’t know if it will happen. It may be that some large foundations who care about transparency will provide the capital to build fundraising capacity if FORGE can close this years budget gap through broad donor support. If some sort of plan like that can be worked out, than a donation to FORGE would be a high impact grant in support of transparency.

But no matter what happens with FORGE, it is all going to play out in public. Whether FORGE is saved or not, Kjerstin has displayed amazing bravery. Any smart foundation or nonprofit should be figuring out how to lure her to work for them should she become available.

So what about Curtis Chang, Rich Polt and anyone else who steps up to help? Sure they will receive some nice publicity, but they will also have to share their own work publicly. I can only imagine that the smart readers here at Tactical Philanthropy will disagree with some of their recommendations even if they approve of most. But here’s the thing, all of this is going to play out live. If you don’t like where things are headed, speak up and you might just change the outcome.

Over the last couple of years, I’ve heard numerous foundations tell me that they are not transparent about their grantee analysis because they do not want to risk hurting the nonprofit. But let’s look at FORGE as an example. Kjerstin knows that criticism can only make her stronger. She wants to learn and get better because she cares about her cause more than she cares about her organization. FORGE exists to help refugees rebuild their lives. Kjerstin is willing to do whatever it takes to help them. Even if that means publicly taking advice from people who might tell her she should do some things differently.

Kjerstin cares about the cause over the organization and so should all of us.

Philanthropy Daily Digest

Philanthropy Daily Digest

Tactical Philanthropy Forum Podcast

The good folks over at the Social Solutions sponsored ETOlutionist blog have recorded a podcast with me about the Tactical Philanthropy Forum.

Why Care about FORGE

My last post explained why I was working to support the transparency being practiced at FORGE. Tactical Philanthropy reader Leanne, who has been working behind the scenes to support FORGE, has posted her own reasons:

A real life drama is unfolding before our eyes. The choice is to watch in voyeristic delight or to back away in disbelief. There is a third option, of course, and one I see a few of us are taking; solidarity.

So, what was it that made me decide to get off the sidelines and get in the FORGE “game”?

I can tell you what it wasn’t.

It wasn’t the cursory google search I did and it wasn’t because my involvement (miniscule as it is) will benefit me in any way. It wasn’t even my passion for helping people achieve their vision (the one that helps them help others).

It was something much, much more and something I believe in with all my heart.

Transparency.

Real transparency isn’t just something you pull out as a marketing gimmick and it isn’t a version of “truth telling” that is geared to make a NFP more “human”.

Nope, real transparency is when one person stands naked before another without ego or fear because they are so confident in their calling that they have nothing to lose by telling the truth.

In my opinion, that’s what Kjerstin is doing and that’s what makes this situation so ENGAGING.

See, my friend, Kjerstin, whom I’ve never met, by the way, came to me (via the internet) and said, “Hey, I could use some help.” She then went on to lay herself BARE for the world to see because the help she needed had nothing to do with her but rather with the people she was desperate to continue helping.

Is this resonating with anyone? Do you guys see this the way I do? Isn’t it refreshing?!

So, as one who has been in a similar situation as Kjerstin is in and as one who recognizes that this is happening to NFP’s all over the world, I refuse to bury my head in the sand or to look out for my own interest.

The world is changing for us “world changers”. I say we embrace that change.

Philanthropy Daily Digest

Nonprofit Transparency

Let me make something clear. I am not advocating for the cause that FORGE is working on nor am I explicitly advocating for FORGE as an organization (or even Kjerstin as an individual). I am advocating for the cause of nonprofit transparency.

Why is transparency so important? Transparency builds trust and trust is the fundamental underpinning of markets and in fact most human endeavors. If I don’t trust you, interactions between us breaks down. Trust does not come from believing that someone is a great person, it comes from believing that what you observe is in fact a good description of reality. Transparency is a way to build trust. As a wealth advisor, I always make clear to my prospective clients how I am compensated and how various outcomes will benefit me (or not). This transparency allows prospective clients to trust my future statements because 1) they understand where I’m coming from and 2) I’ve just demonstrated that I will willingly point out ways in which I might be biased. Without trust, no client would ever hire me.

Public for-profit companies wrestle with this issue as well and sometimes make the right decisions and sometimes do not. When a for-profit investor is evaluating an investment idea, they diligently attempt to learn as much as possible about the company. However, at some point they must make a leap of faith and make the investment knowing that they do not have 100% of the facts (since, frankly, no one ever knows everything). This leap is made much more easily when the company in question goes to great length to transparently present their situation. When a company presents everything and does not appear to be “marketing” themselves, an investor can feel more confident that there is not knowable, relevant information of which they are unaware.

One of the functions of public stock exchanges is to create a standardized system of transparency. Not only can investor view the terms of historical transactions in the companies being traded, but the exchanges require a minimum level of transparency. Public companies must release quarterly and annual reports mandated by the SEC as well as release certain types of information within certain time frames.

I believe that if nonprofits can embrace transparency that they will build trust and more capital will flow to good. This is the promise of the social capital markets.

I’m off to meet with Kjerstin at FORGE. I think her experiment in radical transparency deserves all of our support.

Philanthropy Daily Digest