Funder Relations – Nonprofit AF

Beyond the snowflake report: A case against financial and outcomes accounting tailored to individual donors and funders

Posted on September 19, 2023September 19, 2023 by Vu

[Image description: A closeup of a beautiful and intricate snowflake, clear in color, perching on some ice crystals. Image by Aaron Burden on Unsplash]

For decades, our sector has had this refrain: “Donors and funders deserve transparency. They have a right to know how nonprofits spend their donations and the outcomes they achieved.” Many of us agree with this, including me. Yes, nonprofits should be transparent. They need to report their revenues, expenses, program activities, and the results of their work. And most nonprofits do, as required by law. In the US nonprofits are legally required to file 990 tax forms each year. Most orgs release annual reports. Throughout the year they also let people know what they’ve been up to, using newsletters and other forms of communication.

The challenge is that for some reason the above level of transparency is not enough, and we’ve all convinced ourselves that not only do donors and funders deserve to know specifically how the dollars they contributed were spent and what outcomes could be personally attributed to them, but also that this somehow makes sense.

Why funders need to rethink the concept of nonprofit resilience

Posted on August 21, 2023September 1, 2023 by Vu

[Image description: a small green/yellow/grey lizard with a long tail, sunning on what looks like a piece of wood. Background is obscured but could be a desert. Image by Azoreskid14 on Pixabay]

Hi everyone. Quick reminder: On August 30^th at 11am Pacific Time, there is a FREE webinar on legislative reforms on Donor-Advised Funds. Get more details and register here. There will be live captioning.

Also, this week I’ll be speaking virtually at the Nonprofit Marketing Summit, which is free for everyone. My lecture, called “Burn It All Down: Achieving Radical Impact in Nonprofit and Philanthropy” will be on Thursday August 24 at 11am Pacific Time. Get details and register here. There will be auto-captions. And I might have a sexy, smokey voice from weeks of chronic coughing.

After doing this work a while, I realize there are a few words and phrases in our sector that absolute raise my hackles and cause me to go immediately into fight or fight mode (yes, I said “fight” twice). These words and phrases include “overhead,” “logic model,” “sustainability,” “donor love,” “strategic philanthropy,” “nonprofits should act more like for-profits,” and “can I give you some friendly feedback about your personal appearance on that virtual keynote?”

You’re not lazy. Here’s what lazy looks like in our sector.

Posted on June 27, 2023July 31, 2023 by Vu

[Image description: A panda, resting their head on some tree branches. Image by shangshaistonemen on Pixabay]

Hi everyone, this will be the last blog post until August 8^th, as I’ll be on my annual summer break. By the time you’re reading this, I am on my way to Vietnam to see the relatives. It will be three weeks of getting criticized for my career choice, divorced single status, and disheveled general appearance. It’s OK; relentless criticism is one of the love languages in Vietnamese culture.

I hope that you’re also taking time for yourself. Our sector sucks at this. Even during a pandemic, I see so many colleagues lamenting/bragging about how little vacation they’ve been taking, how they haven’t taken a break in literally years. Cut it out. There is no honor in burnout. You deserve to rest and to recharge and watch all 10 episodes of The Bear season 2 in one sitting, or whatever brings you joy.

However, it’s easy to say that. We’ve internalized some philosophies and messages that make rest feel shameful. One of these is the concept of “laziness.” Our self-worth and even identity are tied to doing stuff constantly, and when we think we’re not, we feel awful and useless. It’s a risotto of capitalism that we’re expected to stir perpetually while adding more and more heated broth of productivity.

Funding and the flawed notion of nonprofit “readiness”

Posted on May 29, 2023May 29, 2023 by Vu

[Image description: A little baby deer (a fawn), their head bent down, nibbling on a leaf they found on the grass. Image by NickyPe on Pixabay]

Hi everyone, you may have heard about MacKenzie Scott’s new funding initiative, Yield Giving, which will be giving out 250 million in $1M grants. The catch is that organizations are only eligible if they are between $1M to 5M in budget size for two or more of the past five years.

Scott has done some cool stuff, cutting through the BS and giving away billions of dollars with few hoops to many great orgs. So this eligibility criterion in her new grant is disappointing. As many colleagues have pointed out, the vast majority of nonprofits are less than a million in budget size, and organizations led by and serving marginalized communities are more likely to fall within this category. Having this budget threshold as an eligibility requirement ensures many vital organizations led by and serving people of color, rural communities, disabled people, etc., will be left out of accessing this fund.

Join the movement to end Crappy Funding Practices!

Posted on May 15, 2023May 15, 2023 by Vu

[Image description: Three adorable piglets sleeping, snuggled up in a row. Two are orange with dark patches, and one is gray with dark patches. Image by ChiemSeherin on Pixabay]

Hi everyone, before we get started, next week, May 23^rd, at 10:30am Pacific Time, Edgar Villanueva (my brother from another mother and also another father) and I will once again be having a session of “Decolonizing AF.” It’s an informal Instagram Live conversation where we talk about nonprofit, philanthropy, and whatever else is on our minds, with much cussing. Captions auto-generated by Instagram. See you there.

Since the start of the pandemic, I’ve been using the hashtag #CrappyFundingPractices to publicly call out funders who were doing ridiculous and/or harmful things. Well, several years have passed, and it seems some funders are still doing crappy things. In fact, there are several innovative new shenanigans! Thank you to all the funders who are awesome. However, we still have many funders whose unreasonable and clueless requirements are jeopardizing nonprofits’ work and thus harming people.

Here is a list of #CrappyFundingPractices that have been called out under the hashtag. If you are at a foundation, please check that you’re not doing these things below, because your foundation may be called out by name: