No, social enterprise and earned revenues will not solve nonprofits’ funding problems

[Image description: A fluffy reddish-brown squirrel, looking directly at the camera with a cute but quizzical expression, their front paws touching. Image by 995645 on Pixabay.]

Hi everyone, for those who missed the Unicorns Unite’s 5-year virtual reunion event on Valentine’s Day, the other co-authors and I are doing an encore for folks in other countries on April 18th to discuss what we’ve learned since we published the book five years ago. It’ll be midnight for me, but that’s also when I do my best work! Register here and see you then! (Folks in the US who don’t mind staying up at midnight or 3am, feel free to join too!)

A couple of weeks back, I met a great new colleague. I knew we would get along because we wore the same brand of outdoor gear, which I will not mention here until the multi-million-dollar sponsorship deal goes through. We were having a sparkling conversation when my new friend started an impassionate speech about how nonprofits should focus more on earned revenues. I watched in horror, mouth stuffed with a blue-raspberry-flavored Jolly Rancher, as my colleague, a funder, continued on about how earned income would allow orgs to have more control and not be as beholden to the whims of funders and donors.

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10 Signs You Might Have Fundraiser Stockholm Syndrome

[Image description: An adorable fluffy yellow duckling with dark eyes and an orange bill, staring at the camera, being held gently by two hands. Image by jjheinold on Pixabay]

Hi everyone, before we get started, here’s a conversation on Donor-Advised Funds (DAFs) taking place on April 21 at 10am PT. It’s free, and auto-captions will be enabled.

Some of you may remember #DAFHobbyGate, where many, many fundraising colleagues got very upset because on an earlier webinar I mentioned that “philanthropy has often become a hobby for the rich and it really shouldn’t be.” Dozens of indignant people told stories of the wonderful donors they encountered who would die before they thought of their charitable work as a hobby. Others called me pretentious, self-righteous, and ignorant. A few demanded I apologize for my thoughtless and insensitive words (which I did, very sincerely).

Here’s the thing, though: Not a single donor indicated they were offended. Or certainly no one expressed they got offended in their role as a donor, as I suspect all of us in the sector are also donors. The folks who were bothered expressed their rage as fundraisers, wealth advisors, and fundraising thought-leaders.

In an earlier post (“White development colleagues, we need to talk about fundraiser fragility”) I mentioned Fundraiser Stockholm Syndrome, this primal urge among fundraisers to protect donors from any and all criticisms and discomfort, as if donors were perfect beings immune to committing any wrongdoings, or fragile baby birds who cannot fend for themselves. It is preventing us from having deep, necessary conversations that would advance our field.

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

[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 14th 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.

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7 often-ignored MLK quotes to ground our work of fighting for equity and justice

Today is Martin Luther King Jr. Day. Those of us who are in nonprofit, philanthropy, and other fields focused on making the world better rely on his words as a beacon for our work. Which is why this week we will be inundated with MLK quotes.

Before we quote him, though, let’s do some serious reflections about Dr. King and what he said and what he stood for. Otherwise, we run the risk of choosing the least controversial quotes, the ones that don’t make us uncomfortable or force us to confront our privileges or change the way we do things. Then we feel good about ourselves and continue perpetuating the injustice he fought against.

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A Christmas Carol, Updated for Our Times

[Image description: An illustration of Scrooge, sitting in an armchair in his robes and floppy hat, being visited by the ghost of Jacob Marley, who appears to be shackled with chains and money boxes. Image by Prawny on Pixabay]

Hi everyone, this will be the last post of 2022. I will be back on January 3rd.

Charles Dickens’s novella a Christmas Carol is a timeless classic. It was first published in 1843 and has never gone out of print. But 1843 is nearly 180 years ago. It’s time for us to update the story to be more relevant to our times:

STAVE ONE:

The story opens at a large foundation’s headquarters on Christmas Eve. Ebenezer Scrooge is the president of the foundation’s board of trustees. He is a miser who hates spending money, Christmas, and people in general. Bob Cratchit, Scrooge’s executive assistant, is looking at some documents. “Mr. Scrooge,” he says, “it seems we haven’t met our legal minimum for how much money the foundation has to spend each year. What do you say we give some extra money to a few nonprofits in the area? Look at this one. Tiny Dem. It’s a small organization working to end voter suppression, gerrymandering, and corruption in politics. This is the fifth time they applied to us.”

“Tiny Dem? Bah humbug!” grumbles Scrooge, “that is the most ridiculous name for a nonprofit! And their mission doesn’t align with the foundation’s main priority, which is teaching financial literacy to toddlers. If children learn early, they won’t grow up to be impoverished hornswogglers suckling at the udders of society. No, just put enough money into a Donor-Advised Fund to meet the legal minimum.”

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