Funder Relations – Nonprofit AF

Is it just as hard to give out money as it is to seek it?

Posted on May 7, 2024May 7, 2024 by Vu

[Image description: A squirrel with fluffy ears, peeking out from behind the trunk of an ivy-covered tree, looking inquisitive. Image by mariuszopole on Pixabay]

Hi everyone, if you’re interested in being involved with the Crappy Funding Practices movement, please join a special meeting we’re hosting on May 14^th at 10am Pacific Time, where we’ll update you on what’s been going on, and present the different options for you to plug into. Register here. See you then!

A few years ago, I was in Oxford, speaking on a panel at a conference with colleague Jessamyn Shams-Lau, who is the lead author of Unicorns Unite: How Nonprofits and Foundations Can Build Epic Partnerships; we were there to promote the book and discuss how nonprofit leaders and funders could work more effectively together. during the Q&A, a program officer pushed back, hinting that we panelists were unfairly critical of funders, and declaring that giving out funds is just as difficult seeking it. Several funders in room, and a few nonprofit leaders, nodded in agreement.

10 boring, predictable responses often made by enablers of crappy funding practices

Posted on January 30, 2024January 30, 2024 by Vu

[An adorable raccoon, their head resting on their paw, which is resting on a tree trunk. This raccoon has nothing to do with this blog post, but the inclusion of this picture makes people more likely to click on it. Image by Chalo Garcia on Unsplash]

Hi everyone. Before we start this week’s topic, check out Memphis Music Initiative’s latest hilarious and catchy music video, “I Hope Like Hell We Get This Grant.”

Crappy Funding Practices (CFP) has been building momentum. Join in the fun on LinkedIn! This is the movement where we call out foundations publicly and by name who engage in practices that waste nonprofits’ time and energy when there are so many societal issues to tackle. Making a grantee write a quarterly report for a $2500 grant? We’re calling you out. Telling grant applicants they can’t spend more than 10% on overhead? We’re calling you out. Making grant applicants use your budget format, which is in Word? We’re calling you out.

Declaring a grant application deadline but then saying you’re only going to review the first 100 submissions? We’re calling you out and likely also bestowing upon you a Ghost Orchid Award for Rare but Super Crappy Funding Practices, which will come with press releases and probably an award ceremony where your team will be invited to dress up in evening formal wear and explain how you came up with such a clueless and heinous decision.

Funders, do you have Main Character Syndrome and are engaging in crappy funding practices? We’re coming for you!

Posted on January 8, 2024January 9, 2024 by Vu

[Image description: A duck, photoshopped onto a background that looks like they’re stepping out from behind a sheet of wrinkled purple paper, kind of like how someone would step onto the stage from behind the curtains. Image by NoName_13 on Pixabay]

A few weeks ago, I wrote a post on how no funder deserves their own unique snowflake financial or outcomes report from grantees, and that they should just accept nonprofits’ annual report and comprehensive financial statements. A colleague pointed out that these burdensome and nonsensical requirements are a result of many funders having a “Main Character Syndrome” (MCS).

M CS, according to my quick consultation with fellow cool young people, is basically where someone thinks they are the main character in the universe, and that everyone else is just a support character in their fascinating and enthralling story. And they act like it. This phenomenon helps to explain many things that happen in our sector, such as the egotistical executive director who needs to take credit for everything. Or the board member/donor who demands to be treated like royalty and who gets offended at the slightest injury to their image or sensibilities.

Foundations: Stop taking a year off to do your strategic planning!

Posted on October 9, 2023October 12, 2023 by Vu

[Image description: A golden mask, the kind that might be used at a masquerade party. Image by Julio Rionaldo on Unsplash]

Hi everyone. It is October, which means my favorite holiday is coming up: Halloween, a time when children can dress up in costume and go door-to-door for free food, while adults dress up as sexy versions of healthcare workers and politicians.

And of course, it’s also a time to give ourselves a good scare. In our sector, there’s plenty of terrifying things: Restricted funding, 360 evaluations, lack of retirement savings, and creepy colleagues who tip-toe behind you in darkened hallways and whisper, “Would you consider joining the gala planning committee?” I’ll tell you a story about one of the scariest things that happen though. Make sure all the lights are on and you’re not by yourself:

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.