As I was saying, there are plenty of people who want to give your organization money. Seriously. Lots of it. There is, of course, a catch: you have to give it back.
Understandably, this stops most nonprofit executive directors in their tracks. It’s no mean feat to raise the prodigious amounts of grant funding needed to run one of these juggernauts as it is. It requires stamina, persistence, a LOT of friends, and just a touch of maniacal charm. Now, the frazzled ED asks, you want me to spend a huge amount of time raising money I have to pay back?
There’s just one problem: the sector needs deals. Badly. And they really want nonprofits to take the lead on proposing and structuring those deals. That’s right, you.
So, what if someone gave you $5 million, and then asked for it back? What would you use it for? How would you advance your organization’s mission? How would you insure repayment? Perhaps most importantly, how could you use this opportunity to grow?
You know, about a year ago I was having breakfast with a good friend over at Services for the Underserved – a well established nonprofit social services provider and affordable housing developer (Hi David!) – and we got to talking about corporate social responsibility. I mean, there are an awful lot of good intentions out there, and a lot of self-serving hoo ha to go right along with it. Where, we asked, could we have a substantive dialogue that advanced our little sector while addressing the needs of the most vulnerable?
We’ve been reaching out to lots of very smart folks to create content that’s meaningful, and we’ve heard a bunch of really great ideas. I wanted to share with you just a tiny bit of the thinking that’s gone into this conference.
Why is SUS hosting this conference? Innovation and change are all around us. SUS strives to play an active role in the trends that shape our collective efforts, and the emerging social impact investment sector holds both promise and challenge.
Nonprofits like SUS are becoming more complex. SUS manages both for-profit and nonprofit entities; makes regular use of structured finance in its work; draws upon management best practices from both the nonprofit and corporate sectors; has earned revenues as an important part of its plan for growth and stability; and can deploy larger capital allocations. These are all the hallmarks of an emerging class of complex nonprofits that blend a mission orientation with a sharp nose for business and the ability to operate at much greater scale.
For-profit social benefit corporations are both partners and competitors. There are a number of areas (affordable housing, education, healthcare, economic development) where for-profit corporations are taking on work previously provided by nonprofits. So you’ve got complex nonprofits intersecting more and more with social benefit corporations, or even traditional corporations seeking to meet needs closer to the bottom of the pyramid.
Convergence is good for social impact investment. Where complex nonprofits and social benefit corporations converge investors can frequently find revenue models capable of repaying principal, and even generating returns.
Social impact capital is no panacea. In spite of the opportunities of social impact investment, we must also carefully balance these against the need for grants, contracts, technical assistance and other resources.
Nonprofits need to drive more of the conversation. Nobody understands the needs and challenges of nonprofits better than the nonprofits themselves. By placing the voices of nonprofit leaders front and center on this issue, we’re advancing the entire sector.
We view this conference as a beginning. We hope to carry the ideas, alliances, and aspirations of this conference into an ongoing conversation with you and our collective stakeholders. We hope to see you there, and thereafter.
You see, Dear Reader, like many of my fellow funders and financiers I’ve often touted the benefits of moving toward greater scale: improved operational efficiencies, greater programmatic reach, increased access to resources, heavier political punch. But I’ve also struggled with the oft recognized but seldom addressed reality that scale is not an answer in and of itself, and that sometimes scaled solutions leave even larger problems in their wake. Thanks to Ian, I think I got the mental kick in the epiphany I needed.
Your Man About Town’s middle name is Moderation, Dear Reader; and although it is a somewhat awkward locution when making a full introduction, it nonetheless conveys the important fact that your Man About Town’s middle name is not Tom, Dick or Harry. I moderate. I facilitate. I have even been known, at times, to adjudicate.
Dear Reader, I’m writing to you from Man About Town’s Brooklyn redoubt – where we have been spared from the very worst of hurricane Sandy. We never flooded, and we never lost power. Like so many of you, Mrs. Man About Town and I have been glued to Twitter, NY1, WNYC, the NY Times, and a host of other news sources trying to grapple with the scale of the devastation caused by surging storm waters and wind. And, like many of you, we’ve wept over the terrible loss of life, and been inspired by the ingenuity and dedication of emergency personnel, public leaders, and generous neighbors.
It’s been a year since I hung out a shingle and joined the independent workforce, and a very interesting year indeed. Your Man About Town has been busy moving the needle on mission related investment, geeking out on data, pursuing my ongoing passion for the arts, and assembling public / private partnerships out of thin air.
Frequently my job as a consultant is simply to help my clients think things they haven’t thought, meet people they haven’t met, and do things they haven’t done. In this inaugural newsletter, I’m pleased to share a bit about what I’ve been up to.
Last fall, Neil Kleiman introduced Man About Town to Chicago’s Civic Consulting Alliance. Civic Consulting aggregates high-level pro bono corporate capacity and provides it to the public sector – a national model for innovation in public/private partnerships. I fell in love. Man About Town has been building Civic Consulting’s NYC affiliate, and on September 13th we hosted a launch event with the Ford Foundation, Living Cities and special guest Deputy Mayor Linda Gibbs for the local philanthropic and corporate community. It was a smashing good time, and you’ll be hearing a lot more about Civic Consulting NYC!
…thanks to all of you and your brilliant thinking, passionate commitment, and energetic leadership. I hope to see some of you at the Grantmakers in the Arts convening on November 15th at the Queens Museum, where Man About Town will moderate the morning’s panel discussion. And stay tuned for a major article in Shelterforce Magazine on the evolving role of community development intermediaries in today’s complex environment.
Dear Reader, below you will find testimony that I presented recently before a joint hearing of the New York City Council on the impact of the arts on small businesses and community economic vitality. You may very well be interested in two previous posts on this subject: The Art$ (wherein I discuss the economic realities of very small versus very large nonprofit culturals in NYC), and The Art$ – Part II (wherein I dig deeper into how very large nonprofit culturals make their money compared to how small nonprofit culturals do). Continue reading →
In my most recent post (The Art$), dear reader, we started a conversation about some of the differences between very large cultural organizations and, well, everybody else. I pointed out that members of the Cultural Institutions Group (CIG) tend to be concentrated in the upper bracket. I also said that, frankly, there should be further research conducted on how income streams and strategies vary based on whether or not an organization is a member of the CIG. (For a powerful statement on funding inequity in the arts, check out this really great report written by Holly Sidford for the National Committee for Responsive Philanthropy.)
But while being a member of the CIG may make you privileged, it doesn’t make you evil. I think that good policy comes out of an informed debate about our resources and our choices in using those resources. We’ve got all this lovely data, so let’s use it to analyze the assumptions underlying the present system. Assumptions we can analyze, assess and alter – or not – based on our current, best understanding.
So, let’s look at another juicy issue. In our last episode, our hero was pondering the following chart:Continue reading →
Dear reader, your Man About Town has been to the very precipice, where I stood and looked down. It was weird.
You see, it all started when some of the lovely folks over at the Municipal Art Society (Hi Mary! Hi Anne! Hello Vin!), invited me to come and do a research project for them called “Who Pays for the Arts.” The job was to tool through data provided by the Cultural Data Project (CDP) and better understand how arts organizations in NYC make their money. To whit: in order to apply for public funding in NYC, you have to submit, like, a gajillion data points to CDP.
Exciting! Data geek that I am my little heart just fluttered with glee. Numbers! Charts! Oh yeah! Uh huh! That’s right!
So I started digging through the data and the very first question I asked was, you know, what does the distribution curve look like? Given that I’m looking at total 2010 revenues for 723 organizations, and that the whole group all mushed together made $2.5 billion, how many groups are on the high end, how many in the middle, and how many on the low end?