Transparency Talk

Category: "Partners" (19 posts)

No Moat Philanthropy Part 5: The Downsides & Why It’s Worth It
October 6, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we have devoted this blog space all week to the series. This is the final post in the five-part series.

Reedyjenniferford-croppedEverything we do is a trade-off. Spending time and money on the activities described in this No Moat Philanthropy series means time and money not invested in something else. Here are some of the downsides of the trade-offs we have made:

It takes some operating expense.  It requires real staff time for us to do office hours in western North Dakota and to reformat grant reports to be shared online and to do every other activity described in these posts. We believe there is lots of opportunity to advance our mission in the “how” of grantmaking and weigh that as an investment alongside others. In our case, we did not have an increase in staff costs or operating expenses as we made this shift. We just reprioritized.

It can be bureaucratic.  Having open programs and having community members involved in processes requires some structure and rules and standardization in a way that can feel stifling. Philanthropy feels more artful and inspired when you can be creative and move quickly. To be equitably accessible and to improve the chance we are funding the best idea, we are committed to making this trade-off. (While, of course, being as artful and creative as possible within the structures we set!)

“We believe our effectiveness is fundamentally tied to our ability to influence and be influenced by others.”

Lots of applications means lots of turndowns.  Conventional wisdom in philanthropy is to try to limit unsuccessful applications – reducing the amount of effort nonprofits invest with no return. This is an important consideration and it is why many foundations have very narrow guidelines and/or don’t accept unsolicited proposals. The flip side, however, is that the more we all narrow our funding apertures, the harder it is for organizations to get great ideas funded. We’ve decided to run counter to conventional wisdom and give lots of organizations a shot at funding. Of course, we don’t want to waste their time. We have three strategies to try to mitigate this waste: (1) through our hotlines we try to coach unlikely grantees out of the process. (In our experience, nonprofits will often apply anyway – which suggests to us that they value having a shot – even if the odds are long.); (2) we try to make the process worth it. Our surveys suggest that applicants who do the programs with the biggest pools get something out of the process – (and we learn from the applicants even if they are not funded.); and (3) we try to make the first stage of our processes as simple as possible so folks are not wasting too much effort.

Relationships are hard!  Thinking of ourselves as being in relationship with people in the region is not simple. There are lots of them! And it can be super frustrating if a Bush staff member gives advice on a hotline that seems to be contradicted by the feedback when an application is declined. We’ve had to invest money and time in developing our CRM capacity and habits. We have a lot more work to do on this front. We will never not have a lot more work to do on our intercultural competence and our efforts to practice inclusion. Truly including people with different perspectives can make decisions harder as it makes decisions better.  The early returns on our efforts have been encouraging and we are committed to continuing the work to be more fully in relationship with more people in the communities we serve.

Conclusion

Overall, we believe a No Moat Philanthropy approach has made us more effective. When we are intentional about having impact through how we do our work — building relationships, inspiring action, spreading optimism — then we increase the positive impact we have in the region.

We believe our effectiveness is fundamentally tied to our ability to influence and be influenced by others, which demands trust, reciprocity and a genuine openness to the ideas of others. It requires understanding perspectives other than our own. It requires permeability.

While we arrived at this approach largely because of our place-based sensibility and strategic orientation toward people (see learning paper: “The Bush Approach”), the same principles can apply to a national or international foundation focused on particular issues. The definition of community is different, but the potential value of permeability within that community is the same.

--Jen Ford Reedy

No Moat Philanthropy Part 3: Building Your Network
October 4, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we are devoting our blog space all week to the series. This is the third post in the five-part series.

Reedyjenniferford-croppedIn yesterday’s post I shared how we have tried to bring different perspectives into the Foundation.  Today’s post is mostly about getting out of the Foundation, to meet new people.  This is the third principle of No Moat Philanthropy.

Principle #3: Continuously and intentionally connect with new people

Five years ago we had close working relationships with people in each of our initiative areas. While we valued those relationships, we kept a pretty tight circle. We knew people wanted money from us, and we also knew their chances of receiving it were slim. This can be awkward and who wants that? While avoiding awkwardness can make life more pleasant, we now believe embracing that awkwardness actually makes us smarter. While we can only fund a limited number of people and organizations, interacting with lots and lots of people and organizations helps us better understand our region and make better, more informed strategic choices and funding decisions.

We believe in the power of networks. We believe that a community’s strength and diversity of connections help define its capacity for resilience and innovation. We work to ensure we are continuously connecting with new and different people. Each year, we set outreach priorities for geographic areas, cultural communities and/or sectors based on our analysis of where our network is weakest. Then we strive to make new connections in a way that creates connections between others, too. Specifically we:

“We believe that a community’s strength and diversity of connections help define its capacity for resilience and innovation.”

Hold office hours to meet with people all around the region. We hold “office hours” in communities around the region for anyone interested in with our Foundation staff. These are sometimes coupled with a listening session, co-hosted with a local partner, that allow us to understand what issues are most important to the community.

Sponsor and attend other people’s events. We introduced an open process to request Bush Foundation sponsorship of events. We had been sponsoring some events, but we never considered it a program strategy. One of the primary criteria for event sponsorship is whether it will help us connect with people who might benefit from learning about our work. This might include having a Bush Foundation booth manned by staff members who are there to meet and field questions from attendees.

Host events designed for connection. We were already hosting a number of events to build relationships with and among our Fellows and grantees. In the past five years, however, we have taken our events strategy to a higher level by focusing on connecting people across our programs with people beyond our existing grantee and Fellowship networks. The best example of this is bushCONNECT, our flagship event which brings together 1,100 leaders from the region. To ensure we are attracting individuals beyond our community network, we engage “recruitment partners” from around the region who receive grant support to recruit a cohort from within their network to bring to the event, thereby ensuring bushCONNECT attendees more fully represent the geography — and diversity — of our region.

Take cohorts of people to national events. We also offer scholarships for cohorts of people from our region to attend national conferences together. During the event, we create opportunities to build connections with and among the attendees from the region. This allows us to meet and support more people in the region, build attendees’ individual networks, and ensure leaders in our region are both contributing to and benefitting from national conversations.

We are not throwing parties for fun.  We see relationship building as core to our strategy.  We see every interaction as an opportunity to influence and be influenced.  More on that tomorrow.

--Jen Ford Reedy

No Moat Philanthropy Part 2: Bringing the Outside In  
October 3, 2017

Jen Ford Reedy is President of the Bush Foundation. On the occasion of her fifth anniversary leading the foundation, she reflects on efforts undertaken to make the Bush Foundation more permeable. Because the strategies and tactics she shares can be inspiring and helpful for any grantmaker exploring ways to open up their grantmaking, we are devoting our blog space all week to the series. This is the second post in the five-part series.

Reedyjenniferford-croppedIn the past five years, we have been working hard at the Bush Foundation to go beyond transparency to permeability.  In yesterday’s post, I described our work to ensure we are sourcing and supporting the best ideas from the communities we serve.  Today I’ll share Principle #2 of No Moat Philanthropy and the ways we are working to ensure our work is informed by and improved by many different perspectives.

Principle #2: Bring lots of perspectives into your strategy design and decision-making

Five years ago, it said on our website to let us know if you had a good idea that aligned with our strategy, but there was no clear way for people to do so. We had formal advisors on our initiatives and advisors on the ground in North Dakota and South Dakota, whom we kept secret. While we talked a lot about co-creation, in practice it was hard to develop and nurture true partnerships with organizations given our very specific agenda and the power dynamics in our funding relationships.

Now, to ensure we are being shaped by more people and more perspectives, we:

Create learning cohorts to shape our strategies. In the early stages of learning about a new area, we invite others to learn with us and shape our thinking. For example, to inform how we should best integrate the arts into our work, we created the Community Creativity Cohort, providing organizations a $100,000 operating grant and asking them to attend a few workshops and provide counsel (see learning paper “Lessons from the Community Creativity Cohort”). As we develop our strategy to support individualizing education, we have an advisory group of regional experts in Native education to help us understand how our strategy can be most relevant in Native communities.

Bush-altlogo-colorUse external selectors. Historically, we have engaged community leaders to select Bush Fellows, and we have expanded that practice to other programs, including the use of state-level advisory committees to select Bush Prize winners and working through state-level intermediaries to promote and award our smaller-scale Community Innovation grants.

Hire staff and recruit board members differently. We have made numerous changes to our staff hiring and board recruitment practices to attract people from a variety of backgrounds with different perspectives. For staffing, we have always hired from a variety of professional backgrounds, and while we continue to do so, we are also now focusing on diversity in race and cultural background. In three years, we increased the percentage of Bush staff who identify as people of color from a 14 percent to 50 percent. From a Board perspective, we set (and met) specific five-year targets for Board composition, focusing primarily on geographic and racial diversity.

Host internal Fellows. In addition to staff diversification, we created an internal Fellows program designed to routinely bring new and different perspectives into our work. The Ron McKinley Philanthropy Fellows program, now operated by the Minnesota Council on Foundations, hires professionals from communities underrepresented in foundation leadership to work at foundations for three years. We have hosted 11 Fellows and hired four of them into permanent positions.

Build staff and board intercultural competence. If we really want to understand perspectives other than our own, we need the skills to do so. We invest heavily in staff development and board learning and have placed particular emphasis on intercultural competence. We hope that training, combined with out-of-the-office interactions and learning experiences, make us more aware of our biases, better able to truly understand the lived experiences of others, more effective in truly engaging and working with people across the region, and better able to make smart decisions and design strategies that actually work.

In combination, these tactics have given us more opportunity to hear different perspectives in our work and better skills to truly understand different perspectives in our work. Tomorrow I will share Principle #3, how to continuously and intentionally connect with new people.

--Jen Ford Reedy

How Engaging Conversations Build Better Strategic Plans
April 11, 2017

(Michelle Hunter is Director of Strategy and Alignment for The Chicago Community Trust. A version of this blog first appeared in The Chicago Community Trust’s blog.)

MichelleMartinHunterBW-150x150“How did The Chicago Community Trust create its strategic plan?”

This is a question we hear frequently from our colleagues in the nonprofit and philanthropic sectors who are working on their own strategic plans, and it’s easy to see why.

Strategic planning can be a complex business: cumbersome, messy and time-consuming. In fact, the very words “strategic planning” are often enough to draw sighs of despair from the most dedicated staff and board members.

Despite the challenges, though, it is critical for organizations to have clarity of vision for what they want to accomplish and how they’ll know if they’ve succeeded. And when creating a strategic plan, process is almost always as important as the final product.

For the Trust, our highest priority as we developed our new plan was to ensure that we were listening to the voices of our diverse body of stakeholders as much as possible.  We viewed opening up the Trust’s work as an opportunity to cultivate transparency, participation, learning and dialogue. 

“Opening up our work has helped build trust and collaboration with our stakeholders, and served to improve our processes.”

As a community foundation, the Trust exists to improve the quality of life for all who call the Chicago region home. If we were to create a plan that had a strong chance of succeeding, we needed to find a way for our process to include the input of many, not just a few.

Fortunately, we didn’t have to wait long for an opportunity to present itself: the year that we launched our strategic planning process was also the year of the first On the Table. 

On the Table is an annual Trust initiative. On one day a year, we invite residents of our region to come together with friends, colleagues and acquaintances to share a meal and to talk about what matters most to them and their communities.

How it works is simple: individuals and organizations sign up to host conversations on any topic of their choosing. The Trust provides a host toolkit  and a follow-up survey to learn what participants discussed.

The inaugural On the Table on May 12, 2014 drew about 11,500 participants from throughout metropolitan Chicago. We knew that the conversations would have a significant impact, not only on our region and the people who participated, but also on the direction of the Trust’s strategic plan. We eagerly awaited the results of the survey to learn what community members saw as the most pressing issues facing Chicago.

When the survey responses had been fully compiled and analyzed by the University of Illinois at Chicago’s Institute for Policy and Civic Engagement,  we saw that the most frequently discussed topics at that year’s On the Table were:

  1. Education & youth development
  2. Community engagement
  3. Equity and social inclusion

It was uplifting to see that these and other topics that had been top of mind for us up to that point in our strategic planning process were also high priorities for community members.

Trust_logo_horizontal_CMYKIn addition, On the Table gave us the essential feedback from nonprofits we serve that the Trust’s grant application process was overly complicated, burdensome and derailing nonprofits from their missions. This input directly contributed to the launch of the Trust’s general operating grants program also known as GO Grants. The GO Grants program features a streamlined application process so that nonprofits can spend less time on the administrative work of seeking grants and more time on the vital services they provide to our region.

The experience of On the Table gave us the assurance that we needed to continue on our path of creating a strategic agenda for the Trust through 2020. And as many On the Table participants told us, the initiative provided a critical opportunity to tell their community foundation what was important to them. Opening up our work has helped build trust and collaboration with our stakeholders, and served to improve our processes.

No matter how you choose to engage your stakeholders in strategic planning, the important thing is that you engage them. It’s much easier to build full understanding and buy-in for a strategic plan among stakeholders by including them in the process as early as possible. And the plan itself will be much richer and stronger because of their contributions.

On May 16, the Trust will host its fourth On the Table and once again invite thousands of Chicagoans to engage with one another around mealtime conversations.

On the Table is a terrific opportunity to build deeper connections with your supporters and clients and to make progress together on shared priorities. If your organization is going through any kind of strategy development, you might consider using On the Table as a tool for connecting with your stakeholders. Visit www.onthetable.com to learn how.

--Michelle Hunter

Open Yourself Up to New Solutions
April 5, 2017

SAVE THE DATE: April 13, 1:30-3:00 p.m. EST.  Like this blog series?  Attend our Inside Innovation Funding event in person in San Francisco, or virtually via livestream in San Francisco.

(Christie George is the director of New Media Ventures, a mission-driven venture firm and donor collaborative supporting progressive startups.  New Media Ventures supports companies and organizations that – through the use of new media and technology – build advocacy movements, tell new stories and drive civic engagement.)

This post is part of the Funding Innovation series, produced by Foundation Center's Glasspockets and GrantCraft, and underwritten by the Vodafone Foundation.  The series explores funding practices and trends at the intersection of problem-solving, technology, and design. Please contribute your comments on each post and share the series using #fundinginnovation. View more posts in the series.

Christie-George1-163x164

If you’ve been following the headlines since the 2016 election, you’ve probably thought about the growing polarization in our country. You may share my worry about filter bubbles and political echo chambers, or you might have recommitted to sparking conversations with friends across the aisle. At New Media Ventures (NMV), we see the same need in the funding world. From our perspective, most people fund people and organizations they already know, moving money through referrals and established networks. But if we’re going to solve the big problems facing our world, we need to move beyond our personal echo chambers.

As a mission-driven venture fund that invests in both for-profit and nonprofit startups, NMV stands with one foot in the venture capital world and one foot in philanthropy – driving change at the intersection of technology, media, and civic engagement. When we first got started, we found ourselves sourcing opportunities in all the traditional ways – using our personal networks and attending conferences – but we quickly realized that we needed to try something different to ensure that we were actually identifying new approaches to the problems we wanted to solve. In 2014, we launched the NMV Innovation Fund with two main goals: 1) increase the number of investable projects crossing our desks (our deal flow); and 2) break through the bias for “the usual suspects” to fund more diverse entrepreneurs.

In the simplest terms, the Innovation Fund is an open call for world-changing innovations. Twice a year, we ask our network, and our network’s network, and their networks (you get the idea: we cast a wide net) to send us the best opportunities they’ve seen for how technology can catalyze progressive change. This year, in response to our “Resist and Rebuild” Open Call, we received nearly 500 applications – a new record – and we are blown away by the creativity of the applicants.

“...If you haven’t tried an open call, you might be missing out on amazing solutions beyond the usual suspects.”

While it may sound overwhelming to sort through hundreds of applications, we have developed a methodology for doing this work efficiently.  This process includes recruiting a volunteer screening committee of funding peers, simplifying our application as much as possible, asking more detailed questions only to the applicants who rise to the top, and using a technology platform to easily manage all of the applications in one batch. Ultimately, New Media Ventures makes the final funding decision, but the screening committee is one of the most powerful aspects of the process – many heads are better than one – and working collaboratively with other funders allows us to leverage different domain expertise in evaluating opportunities. 

Here are two takeaways from our experience opening ourselves up to open calls, and the reasons why we hope other funders will consider similar approaches:

1) Big problems require new solutions (and diversity is not a “nice to have”). Funding exclusively through referrals can limit what funders see and increase the risk of confirmation bias – one of the reasons white men are so much more likely to get venture capital funding in Silicon Valley. By having an open and transparent application process, heavily marketed to ensure we’re getting outside our own bubbles, we’ve made a tremendous
impact on the diversity of our portfolio. Our website, blog, social media platforms, and partners broadcast details about the open call, allowing us to
reach new audiences who may be deterred by less transparent philanthropic opportunities. We’re proud that 65% of Innovation Fund applicants have New Media Ventures logoat least one female and/or trans founder, and 30% have at least one person of color on the founding team. We still have a long way to go, but by comparison 8% of venture capital goes to women founders and 13% to founders of color.

However, focusing on diversity is not a “nice to have” and it’s not just about the numbers – it’s a core part of our strategy. Our societies and systems are facing entrenched problems, and solving them will require new and bold solutions. We need all hands on deck. Women, trans people, and leaders of color have much-needed perspectives and expertise, but often lack access to capital, networks, and traditional philanthropy. For example, news platform Blavity, founded by a young black woman, has grown to reach 7 million readers by creatively combining pop culture content with thoughtful coverage of race and gender issues. We might never have identified this opportunity were it not for our open call.

2) Less control over outcomes leads to more welcome surprises. When funders issue a request for proposals (RFP), we essentially define the terms of the discussion: we’ve often developed a strategy, and we’re looking for organizations to execute that strategy. Unlike a traditional RFP, the Innovation Fund Open Call process has very broad parameters by design. We’ve found this requires us to be comfortable with uncertainty and develop the humility to stay in a learning mindset. The approach isn’t without risks. What if you open the gates for a broad range of applicants, and don’t find anything you want to fund? What if you keep your parameters flexible and only get applications that aren’t in your wheelhouse? But with careful planning and a good process, we have developed strategies to mitigate the risks, and find we gain real value from being able to scan the field and identify gaps as well as opportunities. It has paid off in delightful and unexpected ways.

For many of our portfolio organizations, NMV is their first institutional funder, and our early investment gives our grantees the validation and runway they need to go on to great things: CoWorker.org hosted the Summit on Worker Voice with President Obama; Blavity went on to participate in 500 Startups; Vote.org got into Y Combinator and scaled up quickly to send SMS voting reminder messages to more than 1 million people in swing states leading up to the election. And that’s just a few examples.

To sum it up, if you haven’t tried an open call, you might be missing out on amazing solutions beyond the usual suspects. If boosting innovation is one of your goals, we recommend starting small and collaborating with others to share the work. Consider carving out a portion of your grantmaking budget to fund projects selected through an open process, and remember that you don’t have to reinvent the wheel. NMV and other similar groups have developed deep expertise around open calls and we’re excited to partner with other funders. In fact, we did just that when we worked with the Pluribus Project on a democracy-focused open call last year.

So go ahead, open up and let yourself be surprised. It worked for us.

--Christie George

 

Soulful Innovation: Increasing Diverse Tech Entrepreneurship
February 22, 2017

SAVE THE DATE: April 13, 1:30-3:00 p.m. EST.  Like this blog series?  Attend our Look Inside Innovation Funding event in person or via livestream in San Francisco.  More details and registration info coming in March.

C-Brown-Photo(Cedric Brown has been a leader in philanthropy and the civil society sector for nearly two decades. He is currently the Chief of Community Engagement at the Kapor Center for Social Impact, in Oakland, California. The Kapor Center won the 2017 Crunchies Social Impact Award.)

This post is part of the Funding Innovation series, produced by Foundation Center's Glasspockets and GrantCraft, and underwritten by the Vodafone Americas Foundation. The series explores funding practices and trends at the intersection of problem-solving, technology, and design. Please contribute your comments on each post and share the series using #fundinginnovation. View more posts in the series

Frankly, I get tired of talking about innovation. Sometimes discussions about innovation come across as Sisyphean pursuits, where style is greater than substance, and preening is greater than practice. I’m looking for conversations about innovation with soul. With gravitas. With a conscience. Ones that advance uplifting solutions that make this Earth more habitable or help more people meet their hierarchy of needs (or as of late, that strengthen the fast-unraveling social contract necessary for humankind to co-exist).

Three years ago at the behest of our benefactors, the then-Kapor Foundation began to explore how to move away from our traditional responsive grantmaking. The benefactors had begun to invest in seed-staged tech startups that aim to address and mitigate equality gaps. They witnessed the power of designing solutions for markets - "communities" - that operate at scale. They saw how different and disruptive ways of approaching problem solving can create a culture shift. They came to us, the foundation staff, and requested that we start thinking about this intersection of tech-for-good and our grantmaking work.

“Are we overlooking the resourcefulness that resides in the 'hood, favela, sticks, and bush?”

In the ensuing years, we experimented with different approaches, borrowing from our new knowledge of Lean Startup principles. Through a clunky, iterative learning process - which in hindsight I would like to label as our R&D - we decided to lead the way by doing our part to expand access to the tech sector and innovation economy.

Van Jones has shared that his dear friend Prince said we need to create a "Black Zuckerberg." While I take issue with that particular mold (pattern recognition and Ivy league degree-as-entry-barrier are part of tech's diversity problem), I get The Purple One's point, echoed by Mitch Kapor: "Genius is evenly distributed across zip codes, but opportunity is not." Working with a variety of partners in this ecosystem, we seek to plug leaks in the tech talent pipeline while sharpening the skills and talents that reside in all of our diverse communities.

To this point, I’ve judged a number of youth hackathons and design sessions, mostly attended by low-income, “low opportunity,” or similarly-labeled young people. These youth are participating in these activities as an initial exposure to tech skill-building and careers, and I am consistently impressed by how these young teams create apps that address information and resource gaps: student loan payment platforms; mentoring matching; anonymous bully identification; and safe passage routing among them.  

Our premise is that as the high-tech industry becomes more inclusive, companies and teams will become better at problem solving, will create better products and solutions that serve a wider market, and will utilize tech-driven platforms to solve pressing problems that are informed by their lived experiences. Our backup? Heavy hitters like  McKinsey, Catalyst, Kellogg and Stanford have found this to be true.

How are we benefiting from the terrific brainpower, scrappiness, and necessity - as the mother of invention - that resides in nonprofit leaders, in low-income communities, with people who are "making a way out of no way" as my church folks used to say?  Are we overlooking the resourcefulness that resides in the 'hood, favela, sticks, bush?

Kapor_logo_dark_rgb

You've heard these questions before, I'm sure. So what are we doing about it?

We're catalyzing and strengthening tech innovation, in line with the theme of this blog, by introducing and preparing more people to lead its creation. Tech shouldn't be an insular economy; now more than ever, we need thinkers, tinkerers, designers, and dreamers who are motivated by the pursuit of a significantly positive impact rather than a sinfully profitable buyout.

In 2017, the Kapor Center - including our sibling organizations, Kapor Capital and Level Playing Field Institute - are committed to increasing diverse tech entrepreneurship, access to capital, access to tech and STEM education, and building strong community institutions to promote a more diverse tech ecosystem in the Bay Area, with a special focus on Oakland, our home.

We’re employing a range of old tools for new outcomes - convening key partners to coordinate around systems-level goals (kind of collective impact-ish), providing financial support to select roundtables to support this coordination work, and utilizing the visibility of our benefactors and brand to raise awareness about the issues at hand and to channel resources to efforts aligned with our work, helping to create a larger, stronger network of collaborators. And we’re using our brand-spankin’ new building on Oakland’s Broadway corridor to host events that welcome, validate, leverage, and enrich diverse talent - namely people of color and women - as they pursue their entrepreneurship, technical, and impact goals. We see this work as a powerful overlay between the ubiquity of tech, the possibility of entrepreneurship, the integrity of fairness, and the necessity of economic mobility and empowerment for a just society.

But back to the issue at hand - innovation. I think that soulful, meaningful, conscientious innovation is rooted in a nagging question: “What can we do to be more effective?” It’s organic; a quest to find the bull’s eye of effectiveness en route to real impact. It requires experimentation, evolution, and even a bit of envy - as a competitive motivator to be top of class, of course. And while so many of these variables are present in innovation economy practitioners, I’d like to see them more firmly rooted in addressing real world issues informed by and for real people.

--Cedric Brown

From Good Idea to Problem Solved: Funding the Innovation Means Funding the Process
February 8, 2017

(Mandy Ellerton and Molly Matheson Gruen joined the [Archibald] Bush Foundation in 2011, where they created and now direct the Foundation's Community Innovation programs. The programs allow communities to develop and test new solutions to community challenges, using approaches that are collaborative and inclusive of people who are most directly affected by the problem.)

This post is part of the Funding Innovation series, produced by Foundation Center's Glasspockets and GrantCraft, and underwritten by the Vodafone Americas Foundation. The series explores funding practices and trends at the intersection of problem-solving, technology, and design. Please contribute your comments on each post and share the series using #fundinginnovation. View more posts in the series.

Mandy Ellerton

Molly Matheson Gruen

Good ideas for solving our toughest social problems come from a variety of places. But, we need more than just good ideas – we need transparent and thoughtful ways to get community buy-in and a wide variety of perspectives to make those ideas a reality.

For a cautionary case in point, take the origin story (later chronicled in the book The Prize) of the ill-fated attempt to transform the failing Newark public schools. A prominent governor, mayor and, later, an ultra-wealthy tech mogul, hatched the idea to radically transform the schools in the back of a chauffeured S.U.V. Commentary suggests that these leaders did not consult community stakeholders about the plan, only half-heartedly seeking community input much later in the process. As one community member put it to these leaders, "You have forced your plans on the Newark community, without the

measure of stakeholder input that anyone, lay or professional, would consider adequate or respectful." To some observers, it's no surprise that without initial community buy-in, nor a transparent process and over $100 million later, the plan ultimately crashed and burned.

But, let's not throw stones at glass houses. The Newark example is indicative of a larger pattern especially familiar to those of us in the field of philanthropy. We've learned that lesson the hard way, too. Many of us have been involved in (well-intentioned) backroom and ivory tower deals with prominent community leaders to magically fix community problems with some "good ideas." Sometimes, those ideas work. But a lot of times, they don't. And unfortunately, we often chalk these failures up to innovation simply being a risky endeavor, comparing our social innovation failure rates to the oft-discussed (maybe even enshrined?) business or entrepreneurship failure rates. What's more, we almost never actively, sincerely discuss and learn from these failed endeavors.

But social innovation failure often comes at a cost, leaving behind disillusioned community members, bad outcomes for some of our most vulnerable, and lots and lots of wasted dollars that could have gone to something better. Take the Newark example: the failed attempt to transform the schools created massive civic disruption, re-awakened historic hurts and injustice and will likely leave community members even more skeptical of any future efforts to improve the schools.

Through our work at the Bush Foundation, we've learned that truly good ideas–those that will really have a sustainable impact–are often created in deep partnership and trust between organizations, leaders, and–most critically–the people most affected by a problem.

But, that kind of deep community partnership and transparency takes a lot of work, time, and attention. And, most everything that takes a lot of work takes some funding.

Community-innovation

That's why we created our Community Innovation programs at the Bush Foundation in 2013: to fund and reward the process of innovation–the process of solving problems. While the emphasis in innovation funding is often on "early stage" organizations or projects, we joke that we are a "pre-early" funder or that we fund "civic R & D." We provide funding for organizations to figure out what problem to address in the first place, to get a better understanding of the problem, to generate ideas to solve the problem, and then, after all that work (and maybe having to revisit some of the earlier stages along the way), the organization might be ready to test or implement a good idea. See how we depict that "pre-early" problem solving process here.

Most importantly, throughout the innovation or problem-solving process, we also look for particular values to drive the organization's approach: Is the organization genuinely and deeply engaging the people most affected by the problem? Is the organization working in deep partnership with other organizations and leaders? Is the organization making the most of existing resources?

Let's bring it to life. Here are three examples of the 150+ organizations we've funded to engage in a process to solve problems in their communities:

  • World Wildlife Fund's Northern Great Plains initiative is bringing ranchers, conservationists, oil business developers, and government officials together to create a vision for the future of North Dakota's badlands and a shared energy development plan that protects this important landscape.
  • PACT for Families Collaborative engaged truant youth, their parents, education staff, and service providers to understand barriers to school attendance and redesign services and test strategies for positive, sustainable solutions to truancy in western Minnesota.
  • Pillsbury United Communities is using human-centered design processes to engage North Minneapolis residents to address their neighborhood's food desert and create North Market: a new grocery store managed in partnership with a local health clinic that will also be a clinic, pharmacy, and wellness education center.

"We've learned that truly good ideas–those that will really have a sustainable impact–are often created in deep partnership and trust between organizations, leaders, and...the people most affected by a problem."

Our grantees and partners are teaching us a lot about what it takes for communities to solve problems. One of the biggest things we've learned is that collaborative projects often take far more time than anyone initially expects, for a variety of reasons. Over the past few years nearly a third of our grantees have requested more time to complete their grants, which we have readily agreed to.

For example, the Northfield Promise Initiative is a highly-collaborative, cross-sector, community-wide effort to address education disparities in Northfield, Minnesota. The initiative utilizes action teams composed of diverse stakeholders to drive its work. Early on in the project they decided to stagger the rollout of the teams rather than launch them all at once. That allowed them to take more care in composing and launching each team and allowed interested stakeholders to engage in multiple teams. In addition, later teams could learn from the successes and challenges of the earlier ones. As the grantee put it, "Partners felt strongly that it is important to give the process this extra time to ensure that all the different community voices and insights have been included (thereby maintaining this as a community-owned initiative)." We gladly extended their grant term from two years to four years so that they could spend the time they believed necessary to lead the problem-solving effort thoughtfully and inclusively.

Bush-altlogo-colorFor more helpful examples, here are a couple of resources to explore:

  • One of our innovation programs is an award for organizations that have a track record of solving problems with their communities, called the Bush Prize for Community Innovation. Together with our evaluation partner Wilder Research, we created a report about some of our Bush Prize winners that digs into specific conditions, methods and techniques that appear to help organizations innovate.
  • We believe storytelling and transparency inspire innovation. Our grantees openly share what they're learning as they pursue solutions to community problems in grantee learning logs. The learning logs also include references to specific techniques and methods the organizations use to pursue innovation.

As funders, we also have a role in the innovation process that goes beyond writing the check. By virtue of our relationships and portfolios, we have a bird's eye view of the field. By opening up what we are learning, we hope to build trust with our stakeholders and help others build on our work, hopefully leading to more and better future innovations.

-- Mandy Ellerton and Molly Matheson Gruen

From Early Stage Funding to Lasting Impact: The Venture Philanthropy Approach to Funding Innovation
February 1, 2017

(Christy Chin, Managing Partner at Draper Richards Kaplan Foundation [DRK], is instrumental in finding, funding and supporting DRK entrepreneurs, as well as cultivating and engaging DRK’s network of donor partners. As a venture philanthropy firm, DRK provides critical early stage capital to social enterprises tackling some of society's most challenging issues.)

This post is part of the Funding Innovation series, produced by Foundation Center's Glasspockets and GrantCraft, and underwritten by the Vodafone Foundation. The series explores funding practices and trends at the intersection of problem-solving, technology, and design. Please contribute your comments on each post and share the series using #fundinginnovation. View more posts in the series.

Christy Chin Photo - DRKWow! How time flies by when a partnership works so well.  As I prepared for my final Watsi board meeting, I reflected on how much Chase and his team had accomplished and what a joy it is to be part of their quest to make healthcare accessible to all. 

In July 2013, we first met Chase Adam.  It was only a few days after he had pitched Watsi, the first nonprofit to be accepted into Y-Combinator.  In no time, Ron Conway, Tim and Billy Draper were urging DRK to take a look at Watsi.  Chase was ready to make the case for Watsi to be in the DRK portfolio, and he had a few questions of his own.  From the first meeting, there was a constructive and respectful exchange because we were aligned on the end goal – healthcare for all.  As a venture philanthropy firm, DRK conducts rigorous due diligence, not unlike the way in which a venture capital firm evaluates a for-profit investment.  These are our key questions:

Is it addressing an important social issue?

Definitely. A large percentage of our work at DRK is focused on global health, so we know that access to medical care, especially surgical treatments, is a critical problem.

Watsi, the first global crowdfunding platform for medical treatments, leverages scalable technology to solve a substantial need for patients abroad.

Chase’s commitment to radical transparency was distinctive. From the very beginning, Watsi allowed anyone and everyone to see how the money was moving and how the patients’ treatment, with their consent, was progressing.  Transparency of funding increased accountability from the moment a patient’s profile was shared to the delivery of the medical procedure. There was an elegance to Watsi that was extremely appealing.  

“ We firmly believe that multi-year, unrestricted funding is precious capital that nonprofits need to build organizational capacity.”

Is the solution being proposed likely to create meaningful change?

Yes, early results were promising.  In the first seven months after launch, Watsi processed more than 3,700 donations and funded medical treatments for more than 250 patients abroad. DRK has seen many success stories of how technology can enable rapid transformation of an ecosystem, and we truly believe in the power of technical innovation to make an impact on vulnerable populations.

Does the leadership team have potential?

Even though Watsi was still in its early stages, I was confident that Chase had what it takes to be a successful entrepreneur. His passion for the mission was contagious, and he was clearly a resource magnet. Chase was able to attract both financial and human capital to support his vision.  

Is the solution scalable?

At the time, Watsi was already operating across 13 countries and working diligently to identify new partners to scale this model. Today, Watsi operates in 24 countries globally.

DRK bet on Chase in 2013 because we saw the potential for this model to dramatically shift the way governments and institutions fund healthcare treatments abroad, with real-time data collection and complete transparency. I had the privilege of joining Watsi’s board for those three years; DRK requires a DRK representative serve on all grantee boards. As part of DRK’s portfolio support and board service, we openly share our networks to help connect our entrepreneurs with people we believe can catalyze their efforts. In return, we ask for a three-year projection of the organization’s metrics and milestones that demonstrate the impact the entrepreneur hopes to achieve while s/he is an active member of the DRK portfolio. We also expect that the entrepreneur will regularly engage with DRK through written progress updates and in-person check-ins, as well as ongoing conversations with the board representative and, as needed, other key members of our finance, operations, and development team.  

I was fortunate to be joined on the Watsi board by Premal Shah, President of Kiva (an early DRK grantee), and experienced firsthand the power of the DRK network coming full circle.  In December, as my final board meeting with Watsi approached, I reflected on what made Watsi a great example of why we at DRK are so passionate about our work and strongly believe in this investment approach.  

DRK stacked logoDRK was founded in 2002 by Bill Draper and Robin Richards, two highly successful venture capitalists who chose to leverage their success in the venture capital world, applying their skills, expertise, and resources to solve complex social issues. DRK’s venture philanthropy model has been shaped by Bill and Robin’s legacy – we find, fund, and support early stage social entrepreneurs whose ideas have the potential to drive systems-level change.

Since our founding, we’ve raised $110 million in private capital and funded over 100 social enterprises – and we’re aiming to double that number over the next five years. We seek out entrepreneurs with qualities that we know are critically important – vision, energy, determination, courage, passion, and empathy. Our entrepreneurs are tackling important challenges across the globe, including healthcare, education, social justice, poverty alleviation, and the environment.

In the 15 years that DRK has been involved in this work, we’ve learned some powerful lessons that we hope to share with the funding community.  We firmly believe that multi-year, unrestricted funding is precious capital that nonprofits need to build organizational capacity.

We’ve also learned that handing over grant dollars alone isn’t enough. At DRK, the biggest difference we can make for our grantees is providing them with unrelenting support and serving as an advocate on behalf of their organizations.  We’re one of the first institutions to believe in their vision, and we never stop asking the tough questions. As a team, we’ve developed pattern recognition from sitting on many diverse boards and have gained a deep understanding of the challenges our entrepreneurs are likely to face. However, there is always a level of risk we have to account for, and not every DRK portfolio organization becomes a successful endeavor. We are incredibly fortunate to have a supportive board and a community of donor partners that not only accept, but encourage our team to take those risks and explore new possibilities with the potential for great impact.

I can’t emphasize enough the importance of our entrepreneurs’ efforts across the globe, and I encourage you to take a moment to visit DRK’s website (www.drkfoundation.org) to learn more. For any institutions interested in exploring the venture philanthropy model, please contact us and we would be more than happy to share our learnings. We have seen the difference that early-stage funding can make for social entrepreneurs. I hope the next time your organization comes across an entrepreneur like Chase, an extraordinary leader with a big idea, you too will make that bet.

--Christy Chin

 

Glasspockets Find – Can the Silicon Valley Giving Code Be Cracked?
December 21, 2016

The fast and furious pace of Silicon Valley’s tech innovation culture has also given rise to burgeoning new wealth, and yes, new philanthropy.  From 2008 to 2013, total Silicon Valley-based individual giving increased 150%, from $1.9 billion to $4.8 billion, according to a new report. But how do established nonprofit groups make contact with the new philanthropic powerhouses in the neighborhood?

“Just blocks away from the region’s booming tech companies but (local nonprofits) aren’t sure how to attract Silicon Valley’s philanthropy to their causes.”

This question is at the heart of the new report, “The Giving Code: Silicon Valley Nonprofits and Philanthropy,” documenting the rising challenge local Silicon Valley nonprofits face in attracting funding from some of the world’s most generous funders – right in their own backyard.  Despite this wealth of local resources, about 30% of the community-based organizations focused on providing local safety net support – such as homelessness, poverty, troubled public schools – reported higher deficits than the national average.

The authors noted the region is developing an “emerging giving code – an implicit set of strategies and approaches shared by Silicon Valley’s individual, corporate, and institutional philanthropists alike.”  This approach to giving is “widely shared among the region’s new philanthropists” and heavily influenced by technology and business. 

Giving Code Report CoverWith support from The David and Lucile Packard Foundation, Open Impact gathered data from more than 300 Silicon Valley stakeholders, such as wealthy residents and their advisors, nonprofit executives, corporate and private foundation giving officers, and thought partners across all sectors. 

A key issue raised in the report: Although Silicon Valley philanthropists give funds to local issues and causes, most but most are earmarked for private schools, universities and hospitals rather than for community-based organizations. 

The report stated, “These nonprofits are struggling to keep pace with exponential increases in demand for their services, lack the capacity and the funding to gain real traction, or are themselves in financial distress.  Some have offices just blocks away from the region’s booming tech companies—but they aren’t sure how to attract Silicon Valley’s philanthropy to their causes.  The support they need to have more systemic impact is often right next door, but it is not a door they know how to open.”

Silicon Valley Demographics

Although the Silicon Valley boasts a growing number of millionaires and billionaires, many of its 2.6 million residents are facing financial distress due to the high cost of living. About 29.5% or 800,000 people rely on public or private assistance.  The median sale price of a home in 2015 was $830,361, and in some neighborhoods, homes are two or three times that price.  Since 2011, rents have increased 27%, which is 227% higher than the national average.

Many of Silicon Valley’s community-based organizations operate on a small scale and are doing their best to meet the needs of a growing displaced and vulnerable population.  These organizations have little time, capacity or resources to advocate for systemic change – which appeals to many philanthropists seeking strategic impact.

Barriers to Local Giving

The report identified barriers to local giving:

  • The small size of community-based nonprofits, which have minimal capacity to partner with foundations, corporations and individual donors in the ways philanthropists expect or meet requirements that come with large grants.
  • The cultural divide between the new Silicon Valley donor and traditional nonprofits. Many Silicon Valley donors have business backgrounds and prefer a “return on investment”; they believe they will have more impact in a developing country, where costs and barriers are often low.
  • Knowledge and information gaps – local nonprofits do not know how to make contact with the new donors on the philanthropic scene; and new philanthropists lack awareness of local nonprofits and local needs.
  • Social network and experience gap – community-based nonprofit leaders and new philanthropists “don’t move in the same social circles.”
  • Mindsets and language gap – nonprofit leaders speak a kind of “moral language that emphasizes social responsibility, social justice, equity and the common good” and they use jargon like “empower,” “transformation,” and “theory of change.” Meanwhile, new philanthropists and donors speak in the language of “business, efficiency, and bottom-line profits… they talk about the ‘biggest bang for the buck’ not just in business but in their philanthropy.”

The authors noted that the combination of these gaps – knowledge and information gap, social network and experience – contribute to and reinforce an empathy gap that is felt by both sides.  Therefore, wealthy tech entrepreneurs don’t understand nonprofit leaders, and vice versa, which may lead to judgment and ultimately make it more difficult to “recognize how their work, their passions, their skills, and insights might align for the betterment of their shared local community.”

This report also captures hope amidst struggle.  This hope may be best manifested by the funder of the report, the David and Lucile Packard Foundation, which was one of the very first Silicon Valley philanthropies to emerge in the region.  The foundation was established in 1964 following the birth of the Hewlett-Packard Company, which was ahead of the curve, i.e. the now familiar trajectory of moving from garage shop tinkering to tech powerhouse. Today, despite being a large, global foundation, the Packard Foundation maintains an active grantmaking program that supports local communities.

The report concluded that potential opportunities to develop a more effective and collaborative Giving Code will “spark the creation of an even more powerful Silicon Valley giving code: one that works on behalf of all the region’s residents.”

--Melissa Moy

Building Communities of Practice in Crop Research
November 22, 2016

(Jane Maland Cady is International Program Director at The McKnight Foundation. This post first ran on The McKnight Foundation's blog.)

JCady_originalTo spur change at the systems level, it is critical to involve many individuals and institutions that work within that system, facilitating the sharing of information and knowledge. This has been a core belief of McKnight’s Collaborative Crop Research Program (CCRP) for many years. Our assessment, however, is that cross-sector collaboration, learning, and networking have historically been sorely lacking in agriculture research and development systems across the world.

Testing a New Model

Twelve years ago, CCRP sought to change this by testing out a community of practice (CoP) model in the Andes region of South America. Community of practice, a term that has come into fashion over the last few years, refers to a group of people with a common concern or passion who interact regularly to improve their work. In the case of CCRP, the cohort of Andes grantees was united by geographic region and common interest and experience in addressing the stark hunger and poverty issues in their communities. As the model began to prove effective in strengthening capacity at regional, institutional, project, and individual levels, CCRP expanded the model to our other regions.

Today, all four CCRP regions exchange ideas within their communities of practice and with each other, working to spark new thinking and innovation in agriculture research and development. Over time, the communities have grown their skills and approaches, particularly around farmer-centered research and agroecological intensification (AEI) — or, finding food solutions that balance the needs of the earth and its people.

CCRP-Blog-Image-2-cropped-resized
Kandela, the president of a women’s group belonging to the farmer federation FUMA Gaskiya (Niger) is marking her preferred pearl millet panicles during participatory pearl millet selection. (Photo credit: Bettina Haussmann).

 

10YrsCCRPMalawi-1Ways to Improve Networking, Learning, and Collaboration

With the success of The McKnight Foundation's four implemented communities of practices, the foundation has identified several methods that help to achieve success in networking, learning, and collective action. First, each community of practice is supported by a regional team that supports CCRP’s grantmaking processes; the team also facilitates ongoing support and feedback loops. These include reviewing concept notes and proposals, planning inception meetings, cross-project meetings and exchanges, initiating mid-year reviews, and providing feedback on annual reports and project progress. It is a resource-intensive model, to be sure. But the foundation hears consistently from grantees that this structure of regular interactions builds skills and relationships with project teams and other partners, serving to strengthen the capacity of the larger CoP.

Another important way that CCRP builds an effective community of practice is by tailoring its priorities and activities based on each region’s context. A combination of efforts help promote a CoP’s vibrancy within the crop program, including:

  • grantmaking portfolio driven by regional needs and opportunities
  • In-person and virtual trainings and workshops to explore particular thematic areas, strengthen research methods, and build particular sets of skills
  • Annual facilitated CoP convenings that typically involve scientific presentations, interactive or modeling exercises, peer exchange and critical feedback, collective reflection / idea generation, and immersive field visits
  • Targeted technical assistance based on emergent needs, both grantee-led and initiated by the regional team, as well as linking with program-wide technical expertise and support
  • Cultivating an evaluative culture that supports 1) integrated monitoring, evaluation, and planning; 2) learning regarding developmental-evaluation and adaptive action approaches; 3) using and incorporating foundational principles that guide the work and program as a whole; and 4) building participatory evaluation skills
  • Other resources and tools such as handbooks, guides, videos, checklists and templates, sensors, database access, and GIS technology provision
  • Ongoing formal and informal peer learning
  • Support and collaboration in the CoP for leadership development, mentorships, conference planning, peer review for publications, and other kinds of professional and academic development


10YrsCCRPWestAfricaThe foundation's crop research program first implemented the community of practice model in the Andes 12 years ago and in Africa 10 years ago. Today, these seasoned CoPs continue to lead to new innovations and inspiration. The foundation is excited and proud to celebrate the 10th anniversaries of both the Southern Africa and West Africa communities of practices this year. On the occasion of these anniversaries, each CoP recently produced collections of research and insights gathered from their respective areas of work. We invite you to review them and learn more.

--Jane Maland Cady

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  • Transparency Talk, the Glasspockets blog, is a platform for candid and constructive conversation about foundation transparency and accountability. In this space, Foundation Center highlights strategies, findings, and best practices on the web and in foundations–illuminating the importance of having "glass pockets."

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