Nonprofit AF

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.

MLK, nonprofit and philanthropy, and new ways white moderation shows up

Posted on January 15, 2024January 15, 2024 by Stacy Nguyen

[Image description: An adult and a child in front of an MLK quote that’s etched into a wall. The quote reads “If we are to have peace on earth, our loyalties must become ecumenical rather than sectional, our loyalties must transcend our race, our tribe, our class, and our nation; and this means we must develop a world perspective.” Image by Suzy Brooks on Unsplash]

Today is Martin Luther King Jr. Day, and this year it will probably be even more surreal than usual. Normally, we see the plethora of politicians and people who would have opposed everything MLK stood for, now quoting and praising him. This year, be on the lookout for MLK quotes from people and organizations who have remained silent on Israel’s genocide of Palestinians, including the massacre of over 10,000 Palestinian children. If this is you, lean on MLK’s courage and use this day to break your silence.

The rest of us, however, are also not off the hook. I see the same quotes being used, the ones that are positive and hopeful, that won’t cause any offense. Those words are important, but don’t forget all the other things Dr. King said that we often conveniently ignore, including “The evils of capitalism are as real as the evils of militarism and the evils of racism”

And “Why is equality so assiduously avoided? Why does white America delude itself, and how does it rationalize the evil it retains?”

The quote I often think about is the one on white moderation. He warned that the biggest threats to justice are not the overt racists who wear hood and burn crosses, but the “white moderate,” the seemingly nice people who profess to have the same goals, but who always prioritize civility, respectability, and a type of “peace” that doesn’t call for justice.

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.