Monday, October 17, 2011

Creative Disruption

A good story on the difficulties and opportunities facing the nonprofit human service sector from the Chronicle of Philanthropy.

An excerpt, with links at the jump.

“With a bigger share of America’s population reaching old age and growing more diverse, social-service organizations are in for some big changes in the not-too-distant future. Adding to the challenge: the turbulence in government and private financing.

“For the past six months, the Alliance for Children and Families—a membership group for human-service charities—has interviewed nonprofit leaders, gathered focus groups, and conducted surveys to identify the emerging trends organizations must embrace to succeed.

“Today the alliance has published its findings in a new report, “Disruptive Forces: Driving a Human Services Revolution.”

“Sparking Conversation

“Some of the six trends detailed in the report will sound familiar, such as the need for nonprofits to demonstrate to potential donors the results of their programs as well as the emergence of new types of financing that combine social and financial returns.

“But the report also includes some provocative observations that are likely to spur debate. For example, when discussing “information liberation,” which refers to the fact that a new generation of consumers is more likely to share information about themselves, it’s clear that the report’s authors disapprove of social-service groups’ approach to handling client information.

“The human-services sector has used ‘privacy’ and ‘confidentiality’ as an excuse to avoid developments that promote information sharing,” they write. “Information sharing can improve service-delivery models such that they ultimately give consumers more control over how their information is shared and allow other agencies in the same continuum to provide better care.”

“The report calls on organizations to integrate advances in science and technology into their work and suggests that brain scanning might be one way for charities to demonstrate the effectiveness of their programs.

“Boards will find themselves challenged by the ethical tension between high-tech and high-touch approaches,” the authors write.

“Other forces cited in the report that require nonprofits to act: growing competition that requires a willingness to take risks on innovative projects, plus a focus on “branding causes, not charities,” to persuade donors to focus on the issue, not on a particular group.”