Wednesday, June 30, 2010

Nonprofits & Legislators

This is not how it is supposed to work, but as this story from USA Today reports, it does all too often.

An excerpt.

“WASHINGTON — At first glance, Congressmen Hal Rogers and Chaka Fattah don't have much in common. Rogers, a Republican, represents a rural district in Kentucky. Fattah, a Democrat, hails from an urban district in Philadelphia.

“Thanks to Rogers, this year's federal spending will include $18.9 million funneled to a half-dozen non-profit groups he founded that do everything from research homeland security technologies to clean litter along his district's highways. One sponsors summer camps for students called "Rogers Scholars" and "Rogers Explorers."

“Fattah directed $3.5 million this year to three non-profit groups he founded that provide scholarships and educational programs. One organizes the annual "Fattah Conference on Higher Education."

“Fattah and Rogers are among eight lawmakers who have used special legislative provisions called "earmarks" to fund charities with close personal connections. A USA TODAY review of federal spending legislation and non-profit records identified $30.6 million this year — and more than $89 million over the past three years — directed to groups closely tied to the lawmakers. That included $38.1 million over three years to groups founded by the lawmaker sponsoring the earmark and $2 million since 2008 to groups where earmark sponsors' spouses have been unpaid directors.

“In March, House Democrats banned earmarks that go to for-profit companies, while most House Republicans, including Rogers, have chosen not to request any earmarks for the next budget cycle. Neither moratorium was adopted by the Senate.”

Tuesday, June 29, 2010

Nonprofits & Government

The major challenge facing a nonprofit organization taking over a government enterprise—unless the nonprofit has already demonstrated a capacity to raise the amount of funding needed—is transitioning to the type of organizational culture in which substantial fundraising from philanthropic sources is second-nature rather than an alien creature.

The situation with the Effie Yeaw Nature Center, as reported by the Sacramento Bee, while a good County strategy, brings with it several issues, the cultural issue just mentioned, and those outlined in the Bee article.

An excerpt.

“If you take your kids to the Effie Yeaw Nature Center on July 4, you might not notice the difference. The trails will still wind to the river. Wild flowers and grasses will still grow. The deer and turkeys will still confer near the path's edge.

“Invisible, however, will be the shift in control of the center and the 77-acre nature preserve from Sacramento County to the American River Natural History Association.

“County officials have billed the move as a success story – a last-minute stay of execution for the nature center from the budget ax, thanks to the creativity of county officials and the dedication of local volunteers. It's part of a broader strategy to shift programs and services from local government to nonprofits.

“This spring, Volunteers of America took over the Mather Community Campus, which houses programs for the homeless, while the county handed off its Meals on Wheels program to the Asian Community Center.

“The approach appears to be unique to Sacramento County, a spokeswoman for the California State Association of Counties said, adding that she is unaware of any other counties making similar moves.

“The Effie Yeaw shift, however, is causing concern among some advocates who fear that the transfer is happening too quickly and that funding woes could be just as pronounced under a nonprofit as they have been under the county.

"There are people on our board who are saying, 'What are we – suckers?' " said Greg Voelm, an American River Natural History Association member who is helping to finalize the deal with the county.

“The biggest concern for Voelm and others is the clean break the county is making from the center.

“Several local attractions have shifted from government control to nonprofits in recent years. The Sacramento Zoo and Fairytale Town are two notable examples.

“But in those cases, the city of Sacramento provided ongoing funding to help the nonprofits get up and running. Sacramento County won't be giving anything to the association.

"At this point the only offer is, 'Suck it up. We're broke,' " Voelm said.

“This means the association – which has typically given $40,000 to $60,000 a year in donations to the county for Effie Yeaw – will suddenly need to find enough money to run the center, which the county has operated with a budget topping $600,000 a year.

"It puts a lot of weight on a little organization like ARNHA," Voelm said. "It may be a bad tax year for the county, but we have no ability to collect anything. We have to rely on the kindness of others."

“The association, along with other parks advocacy groups, has raised about $300,000 so far, Voelm added.”

Monday, June 28, 2010

Solitude & Contemplation

They are absolutely necessary practices to become a good leader in the hurly-burly world of managing a nonprofit organization, and this article from the American Scholar explains.

An excerpt.

“My title must seem like a contradiction. What can solitude have to do with leadership? Solitude means being alone, and leadership necessitates the presence of others—the people you’re leading. When we think about leadership in American history we are likely to think of Washington, at the head of an army, or Lincoln, at the head of a nation, or King, at the head of a movement—people with multitudes behind them, looking to them for direction. And when we think of solitude, we are apt to think of Thoreau, a man alone in the woods, keeping a journal and communing with nature in silence.

“Leadership is what you are here to learn—the qualities of character and mind that will make you fit to command a platoon, and beyond that, perhaps, a company, a battalion, or, if you leave the military, a corporation, a foundation, a department of government. Solitude is what you have the least of here, especially as plebes. You don’t even have privacy, the opportunity simply to be physically alone, never mind solitude, the ability to be alone with your thoughts. And yet I submit to you that solitude is one of the most important necessities of true leadership. This lecture will be an attempt to explain why.

“We need to begin by talking about what leadership really means. I just spent 10 years teaching at another institution that, like West Point, liked to talk a lot about leadership, Yale University. A school that some of you might have gone to had you not come here, that some of your friends might be going to. And if not Yale, then Harvard, Stanford, MIT, and so forth. These institutions, like West Point, also see their role as the training of leaders, constantly encourage their students, like West Point, to regard themselves as leaders among their peers and future leaders of society. Indeed, when we look around at the American elite, the people in charge of government, business, academia, and all our other major institutions—senators, judges, CEOs, college presidents, and so forth—we find that they come overwhelmingly either from the Ivy League and its peer institutions or from the service academies, especially West Point.

“So I began to wonder, as I taught at Yale, what leadership really consists of. My students, like you, were energetic, accomplished, smart, and often ferociously ambitious, but was that enough to make them leaders? Most of them, as much as I liked and even admired them, certainly didn’t seem to me like leaders. Does being a leader, I wondered, just mean being accomplished, being successful? Does getting straight As make you a leader? I didn’t think so. Great heart surgeons or great novelists or great shortstops may be terrific at what they do, but that doesn’t mean they’re leaders. Leadership and aptitude, leadership and achievement, leadership and even ex¬cellence have to be different things, otherwise the concept of leadership has no meaning. And it seemed to me that that had to be especially true of the kind of excellence I saw in the students around me.

“See, things have changed since I went to college in the ’80s. Everything has gotten much more intense. You have to do much more now to get into a top school like Yale or West Point, and you have to start a lot earlier. We didn’t begin thinking about college until we were juniors, and maybe we each did a couple of extracurriculars. But I know what it’s like for you guys now. It’s an endless series of hoops that you have to jump through, starting from way back, maybe as early as junior high school. Classes, standardized tests, extracurriculars in school, extracurriculars outside of school. Test prep courses, admissions coaches, private tutors. I sat on the Yale College admissions committee a couple of years ago. The first thing the admissions officer would do when presenting a case to the rest of the committee was read what they call the “brag” in admissions lingo, the list of the student’s extracurriculars. Well, it turned out that a student who had six or seven extracurriculars was already in trouble. Because the students who got in—in addition to perfect grades and top scores—usually had 10 or 12.”

Sunday, June 27, 2010

Faithful Philanthropist

A wonderful interview with a wonderful philanthropist, from Philanthropy Magazine.

An excerpt.

John V. Saeman is a devout Roman Catholic, whose loyalty to the Catholic Church has been expressed through generous contributions of time, treasure, and talent. Indeed, fidelity seems to be the hallmark of his philanthropy, characterizing his life, his friendships, and his charitable giving.

In every sense,” says Archbishop Charles Chaput of Denver, “the Saemans are a heroic example of public service, fidelity to the Church, and love for her good works.” Mr. Saeman is the founding chairman of the Catholic Foundation for the Archdiocese of Denver and a former board member of two Catholic colleges, Loras College and Regis University. Carol, his wife of 46 years, has chaired the development committee of St. John Vianney Theological Seminary. Together, they are founding trustees of the Seeds of Hope Charitable Trust, which provides scholarships to low-income students in the greater Denver area to attend Catholic schools.Both Saemans have served on the board of the Papal Foundation.

Mr. Saeman is likewise faithful to his friends, past and present. Through his service on the board of the $1 billion Daniels Fund, he worked to ensure loyalty to the philanthropic vision of his late friend, business partner, and mentor, Bill Daniels. As chairman of the board, Mr. Saeman led a systematic effort to recover, refine, and realize Daniels’ charitable intent. His efforts serve as a model of the proper stewardship of philanthropic assets.

He is equally committed to the charities he supports, whether in Denver or the developing world. Mr. Saeman has given of himself to the Catholic Radio Network and the National Jewish Hospital, to the Boy Scouts and the Young Presidents Organization, to Catholic Charities and the Colorado Alliance for Reform in Education. But he also expects from these charities a measure of fidelity in return—and structures his giving accordingly.

“Philanthropy spoke with Mr. Saeman about his work in service to the Catholic Church and his efforts to honor the intent of his friend Bill Daniels—and to ensure his own philanthropic legacy.

“PHILANTHROPY: You were born and raised in a small town in Wisconsin. How does that experience inform your giving today?

“MR. SAEMAN: I grew up in a Midwestern farming community with a population of about 350 people. Generosity was a way of life. We didn’t have homeless people walking the streets. If people came to our town, they had a place to stay. If they were looking for a job, there was always work. People ate regular meals. Some were more fortunate than others, but there was a spirit—not published, not public, not profiled in any way—that people took care of people. If somebody had a need, somehow people were always there to take care of it. If somebody’s barn burned down, there was a barn-raising group that would get together and volunteer to help the farmer put his barn back up.

“My parents were of modest means, but they were very generous. When I was a kid, my dad made $350 per month. I specifically remember one time that they budgeted $1,000 for a local church campaign. I thought, “Wow, how do you do that?” I was just a boy, so it didn’t quite register, but I knew that my parents were committed to the things in life that mattered to them—and that they were willing to make the sacrifices necessary to see them succeed. A person doesn’t forget those things later in life.

“PHILANTHROPY: For 34 years, you worked alongside telecom pioneer Bill Daniels. Would you mind saying a few words about your business partnership?

“MR. SAEMAN: I graduated from Loras College in Dubuque, Iowa, in 1958. Like most people coming out of college back then, I went straight into military service. I joined the Marine Corps. After that, I didn’t know what I was going to do. I didn’t know what my real ambitions were, what my calling in life might be. I would say I went through my first two jobs without any direction.

“Then I met Bill Daniels. He was already a major figure in the cable television industry. He took a liking to me, and I to him, and the rest is history. Bill brought out the best in me, without really trying, just by being who he was and acting how he acted. I watched him closely. I listened to him, I was motivated by him—and I wanted to be a success like him. I wanted to do all the things he did so well: making money, putting people together, being an entrepreneur. He wasn’t a hands-on mentor; he was very much a global guy. He saw everything from 30,000 feet.”

Friday, June 25, 2010

Developing Leaders

It is true that in many ways, leaders are born rather than made, but natural-born leadership can be dramatically refined with education and training and this nonprofit organization, Bizdom, is proving that with its work to help revitalize Detroit.

An excerpt from the New York Times article.

“James Smith Moore, the son of a single mother on Detroit’s east side, knows how to hustle.

“He started a lizard-breeding business at age 15 and sold more than 500 hatchlings online for $15 to $80 apiece.

“At 16, after local stores ran out of a certain popular Nike sneaker, he hired a manufacturer in China to supply him with knock-offs, which he sold for $80 to $200 a pair on his own Web site as well as eBay and other auction sites. Four months later, he received a cease-and-desist letter, but he had made a $14,000 profit, enough to buy his first car.

“This bootstrapping spirit got Mr. Moore, now 21, accepted into Bizdom U, an intense boot camp for aspiring entrepreneurs who aim to start high-growth businesses in Detroit. Bizdom U is the brainchild of Dan Gilbert, a Motor City native who is founder and chairman of the online mortgage lender Quicken Loans. He also hopes to help revitalize his hometown.

“Mr. Gilbert, who owns the Cleveland Cavaliers basketball team, is hardly the first wealthy businessman to promote entrepreneurship. Among others, he joins self-made businessmen like Clayton Mathile, the former owner of Iams who also founded Aileron, an academy in Dayton, Ohio, that helps small-business owners with strategic planning; Adeo Ressi, who after a series of lucrative start-ups began the Founder Institute to mentor promising entrepreneurs; and Jeff Sandefer, the energy mogul behind the Acton School of Business in Austin, Tex.

“Bizdom U, however, is unique in its focus on a single city. “Detroit is completely missing an entrepreneurial ecosystem,” said Bo Fishback, who is vice president for entrepreneurship at the Ewing Marion Kauffman Foundation, which gave Bizdom U a $500,000 grant in 2008.

“Bizdom isn’t catalyzing an existing system; it’s trying to create something almost from scratch,” he said. “It’s an experiment, and we probably won’t know the result for another five years, but if they can build three scalable companies, it could change the landscape of an entire city.”

“Founded in 2006, Bizdom U operates on the principle that entrepreneurs are born, not made. Its program leaders do not necessarily believe entrepreneurship can be taught. “Instead, an essential part of Bizdom U’s job is to unearth candidates with a distinct combination of vision, ambition, drive and risk tolerance, and then mold them into business owners.”

Thursday, June 24, 2010

Appeal Letter Tip?

Writing at a 6th grade level, argues this post from Future Fundraising Now, results in more donations.

Personally, I believe you should write letters in the normal way you write, be yourself, and share your passion about your work in the way that is most comfortable and congruent with who you are as the leader of an organization.

An excerpt from the post.

“1) Somebody has no doubt told you this: The best fundraising copy is not higher than the 6th grade reading ease level.

“2) Someone else has told you Our donors are highly educated, it would be a big mistake to talk down to them by writing at a low grade level.

“Statement #1 is correct. Statement #2 is wrong.

“The standard way reading ease is measured is the Flesch–Kincaid Grade Level, which applies a calculation to sentence length and number of three-syllable words to come up with a "grade level."

“Here's the important thing about reading grade levels: It's not about education. It's about ease of comprehension. Low grade level copy is not "talking down" to educated readers or treating them like children. Think of it instead as a form of courtesy, like enunciating clearly when you talk. The most super-educated PhD. will appreciate and respond to copy that's easy to read.”

Wednesday, June 23, 2010

County Moves Program to Nonprofit

In what is becoming a timely strategy—see previous post—Sacramento County moves another of its programs to a nonprofit, as reported by the Sacramento Bee.

An excerpt.

“A longtime provider of a range of programs for Sacramento's elderly population, the nonprofit Asian Community Center takes over sponsorship and operation of Sacramento County's 35-year-old senior nutrition program on July 1.

“Meals on Wheels provides lunches for 1,400 older adults.

"Our big hope is that in August, most of our consumers will say, 'What change?' " said Donna Yee, ACC's chief operating officer. "Our intent is to serve all the seniors being served now and to do some outreach.

"There's more capacity in the program to serve more seniors in congregant sites as well as at home."

“Under its new stewardship, a separate nonprofit called Meals on Wheels by ACC, the nutrition program will continue delivering boxes of frozen meals each week to most of its participants, said Yee.

“The county switched to weekly frozen five-packs from daily hot lunches late last year in an effort to trim costs and save the program, which faced elimination because of massive budget cuts.

“About 150 frail seniors will continue receiving hot meals daily, Yee said, and will thus receive daily monitoring by program volunteers and staff.”