Finance – Nonprofit AF

Foundations, please get over the urban myth of “tipping”

Posted on January 22, 2023January 22, 2023 by Vu

[Two donkeys, peeking their head over a fence. Image by mvdsande on pixabay.]

Hi everyone, before we get started, it’s been five years since Unicorns Unite: How Nonprofits and Foundations Can Build EPIC Partnerships, a book I wrote with co-authors Jessamyn Shams-Lau and Jane Leu, was released. Here’s a free webinar taking place on February 14^th at 10am PT to discuss what we’ve learned since then. Auto-captions will be enabled. Also, please use promo code UNI50 here to get 50% off your copy of the book.

Today, we talk about an issue that many of us probably had no idea existed, but one that is very annoying to those affected, and it perpetuates inequity. The concept of “tipping.” This is basically the idea that if a foundation gives a nonprofit “too much” funding, it would “tip” that nonprofit into becoming a foundation itself, which would then open a hole in the fabric of spacetime and an ancient evil would breach our dimension to rain chaos and destruction and there would be fire and brimstone and terrible wifi.

Inflation is killing nonprofits. Funders, you need to supplement your grants immediately.

Posted on April 24, 2022April 24, 2022 by Vu

[Image a green frog with an inflated vocal sac, standing on a leaf. Image by David Cole on Unsplash]

Hi everyone. We are rapidly approaching the summer, which means it’s time for the annual Party to Enhance Equity in Philanthropy (PEEP), a series of events across the sector where funders and nonprofit folks get together, virtually or in-person (ideally outdoors), to break down the weird power dynamics we have, and just learn to see one another as human beings. It should be fun and informal, and usually taking place on the week of Summer Solstice (June 21^st this year). If you are planning to host an event, please fill out this form by June 10^th so I can help spread the word.

While we are on the topic of the relationship between funders and nonprofit leaders, we need to talk about inflation, how it’s been affecting nonprofits, and what we need from funders. It’s really bad, the highest inflation rate in 40 years, and will likely stay bad or even get worse for a while. There are people more knowledgeable than I am who have written about this topic. This article (“Nonprofits and Foundations Need to Be Prepared for the Effects of Inflation on Services, Operations, and Endowments”), brings up several good points:

9 crappy paradoxes that shape nonprofit and philanthropy

Posted on August 2, 2020August 3, 2020 by Vu

[Image description: A golden retriever puppy, lying on the ground, their paws on the sides of their faces, looking sad and adorable. Image by birgl on pixabay.com]

Hi everyone, quick announcement: Please put August 10th at 12:00pm Pacific Time on your calendar for Community-Centric Fundraising’s first town hall meeting. Sign up here and we’ll send you the zoom link. Until then, the (CCF) Hub is designed to provide alternatives to our default white-centric fundraising narratives. It features about three new thought-provoking pieces of content each week, including “How prospect research can help nonprofits become less racist and more inclusive,” “What I Learned from Losing Two Jobs in the Fight for Racial Equity,” “‘You want a director of what now?!’ When orgs that are hiring are too lazy to know what they want,” and the first episode of the Ethical Rainmaker podcast, where CCF Co-Chair Michelle Muri and I talk about fundraising and equity. Check it out!

***

I’ve been spending a lot of time flossing while thinking of how to categorize the challenges in our sector (What, like your quarantine activities are so much more interesting). Many of the stuff we deal with falls under the category of “well-meaning people inadvertently making nonprofits’ jobs harder.” Here are a nine. I’m going to call them paradoxes, though some of these are not paradoxes exactly, but are more like dilemmas, conundrums, or shenanigans. I’ve written about a few of them, but they keep coming up and remain a problem, so it’s good for us to review and have common language to push back. If we want our sector to succeed, we need to be aware of these paradoxes and control for them.

The urgency of making big funding bets on organizations led by marginalized communities

Posted on March 11, 2019March 11, 2019 by Vu

[Image descriptions: Four stacks of coins of ascending height in a straight line from left to right, with a large filled with coins at the end of the line. Each stack of coins as well as the jar has a green plant with multiple leaves growing out of it, the size of the plants also increasing with the height of the stack of coins or jar. They appear to be outdoors, with an out-of-focus outdoorsy background. Image by Pixabay. Description, as always, by Vu].

Last week, SSIR published a case study I co-authored with David Bley of the Bill and Melinda Gates Foundation detailing Gates’s significant investment in my organization, Rainier Valley Corps (RVC). Our partnership started with 1.1 million over four years to launch RVC’s fellowship program to bring more leaders of color into the nonprofit sector. These brilliant leaders would run programs, fundraise, set up systems, mobilize community members, and do whatever else the organization needs to be effective. About half the fellows are hired full-time at their host organizations during or after their fellowship, a critical outcome when only 18% of nonprofit professionals are people of color.

After running our successful fellowship program for a year, RVC learned several significant lessons, including the fact that the philosophy that grounds organizational development does not work for organizations led by communities of color. This philosophy, as I’ve pointed out before, is basically to force all organizations to be generalists, so that even small grassroots organizations must scramble to do HR, finance, payroll, evaluation, communications, legal compliance, contract monitoring, etc. And the ones that cannot do all these highly complex tasks simultaneously and with a degree of quality are punished.

7 game-changing things nonprofits can learn from for-profits

Posted on October 15, 2018October 15, 2018 by Vu

[Image description: A grey koalas peeking out from behind a tree trunk, staring directly at the camera. This koalas has nothing to do with this post. Or does it. Guess you better read the rest of the post to find out. Image from Pixabay.com. By the way, koalas look cute and cuddly, but I hear they’re kind of vicious. They’d not unlike some board members, ha!]

A while ago, I read about Juicero, a wifi-connected juicing machine. It was originally $700, and you had to subscribe to these proprietary packets of cut-up fruit and veggies for $7 each. You put a packet into the machine and turn it on—with an app on your phone, I guess—and it squeezes out one glass of refreshing juice! It was, at the time, the apex of human achievement. Alas, this tale of innovation and disruption did not have a happy ending. Bloomberg did an investigation and found out that you can squeeze the packets by hand and get the same amount of juice. They wrote a story about it, and the price for the Juicero dropped to $400 before the company tanked completely, and now people have to squeeze juice using non-wi-fied juicers, like common peasants.

Why the heck am I telling you this? Simple: I keep encountering people who say that nonprofits should act more like for-profits. You probably do too. And of course, many of us bristle at the bizsplaining and the condescension. There are many blog posts out there, and many of them are incredibly insulting and make you want to roll your eyes: “Make sure you have what people in the business sector call a ‘bizz-nezz puh-lan.’ It lays out these things called ‘go-als.’ Businesses also do what is known as ‘ac-count-ing’ ” Continue reading “7 game-changing things nonprofits can learn from for-profits”