Outsider Efficacy Bias: What it is and how it affects our work

[Image description: Three light brown bunnies, standing on a windowsill, looking out. They’re very fluffy. Image by onkelramirez1 on Pixabay]

I always joke that when I start writing and producing Nonprofit The Musical, one of the characters would be a consulting robot. It’s a robot that is a consultant, and it repeats exactly what the staff says, but the board actually listens to it! If you’re a consultant, you might be offended by that joke. But let’s be honest, this is one of the reasons we hire consultants, and effective consultants recognize that this is a necessary role they play.

This is because we have a rampant belief in our sector that people from outside our organization/community/geographic area are somehow more knowledgeable and effective than the people in it. I am calling it the Outsider Efficacy Bias (OEB), unless there’s a better name for it. Here are some ways it manifests:

  • Board members insisting on hiring an external candidate to be the ED instead of promoting a qualified person within the organization
  • EDs/CEOs doing the same thing, hiring a staff from outside, often neglecting internal candidates
  • Foundations hiring people from academia or the corporate world, who have no experience in nonprofit, to be the CEO
  • Organizations hiring consultants from outside the geographic area instead of contracting with local consultants who live and work there
  • Organizations hiring local consultants instead of just listening to their staff
  • Conferences booking national and international speakers instead of working with local speakers
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charity:water and other mega-charities, we need to talk about your harmful, archaic views on overhead

[Image description: A greyish-brownish squirrel, standing on a stump, looking directly at the camera, their hands touching and resting on their chest. This squirrel is not happy about the messaging around overhead. Image by Yannick Menard on Unsplash]

Every year at about this time, as people become more inclined to donate to charity for the holidays, memes start floating around regarding nonprofit overhead rates. “Don’t give to these orgs! Only 4 cents of every dollar you donate go to helping people! The other 96 cents go to mansions and truffles for their well-paid executives!” Which is quite ridiculous; most nonprofit executives only have at most two mansions, and consume no more than 100 grams of Périgord black truffles each week. Sadly, the public is pretty clueless regarding our work and are quick to latch on to nonsense regarding overhead. I wrote about it here in How to deal with uninformed nonprofit-watchdogs around the holidays.

Unfortunately, one of the biggest drivers of the narrative around overhead being no-good-very-bad are nonprofits themselves. Specifically, large international organizations with significant brand recognition. They usually do vital, life-saving and life-changing work, so I am not here to question their programs and services. However, in their quest to raise funds, they continue to use archaic messaging around overhead that are toxic for the entire sector. Here are a few examples:

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Why raising funds should not be the primary goal of fundraising

[Image description: A brown-and-black-striped cat, lying on the floor, their yellow and black eyes enormous. They look surprised. Image by tevenet on Pixabay]

Hi everyone. Happy November. Quick reminder to vote in your local elections. And to get your flu shot if you can and haven’t. 

Last week, I talked with a fundraising colleague from a large, well-established organization that has grown significantly over the past several years. He had some questions and concerns about the Community-Centric Fundraising (CCF) movement. “I’m afraid that if we do CCF, we’ll have less revenues and people may lose their jobs.” As the movement grows, this is a dilemma that’s on a lot of people’s minds. And this is a constant argument against CCF, that it doesn’t “work” to bring in funding the way traditional fundraising practices have been proven to. Although I can point to evidence that CCF-aligned practices do bring in funding, I think it is crucial that all of us in this sector, but especially fundraisers, reexamine our fundamental belief that fundraising is primarily about raising money. 

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Scary Nonprofit Stories to Tell in the Dark, 2021

[Two jack-o-lantern carved from orange pumpkins, their goofy/scary expressions lit up in the darkness, reflected in the shiny floor. Image by David Menidrey on Unsplash]

Hi everyone. Halloween is coming up next week, which means it’s time for this year’s crop of spooky stories set in our sector. Beware, these stories are terrifying and may keep you up at night. Share your own stories in the comment. Also, check out #NonprofitHalloweenCostumes on Twitter for inspirations like this one: Wear all-yellow clothing. Put on a brown hat. Say things like “In two years, we’ll triple the number of people we serve.” You’re a…Strategic Flan! (Shut up! That pun is one of my life’s greatest achievements!)

Anyway, on with the stories.

Clear

The fortuneteller sat across from Roberto, her slender fingers waving over the crystal ball. “Yes,” she said, her face distorted in the glass so that her eyes appeared unusually large from his perspective, “I can see now. Clear as day. What would you like to know?”

As he was about to speak, she interrupted him. “Think carefully,” she said, narrowing her eyes, “for it is better some questions remain…unasked.”

Roberto pulled out his laptop and turned it on. “OK,” he said, “this online grant application won’t let me know the questions in advance. I have to answer each question and save it before I can see the next question. Can you tell me what all the questions are?”

At that moment, lightning flashed and a peal of thunder shattered the evening sky.

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Democracy is Dying. Philanthropy Needs to Stop Its Toxic Intellectualizing.

[Image description: A large colorful mural on a building, by artist Shepard Fairey, featuring a person looking into the distance, with the words “voting rights are human rights” painted in black on red background. Image taken by Tom Barrett on Unsplash]

Hi everyone, just a quick warning that this post will likely burn a few bridges. But as colleague Aubrey Alvarez quoted from a novelty flask, “May the bridges we burn light the way.”

Today I had breakfast with my friend Seth Ehrlich, an executive director who told me that for the third time during the pandemic a funder invited him to attend a forum where nonprofit leaders were asked to give feedback on how to improve that funder’s grant process. Foundations, please stop doing that. Here’s a checklist you can use for free. Stop wasting everyone’s time asking them how you can improve your process.

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