News for Social Entrepreneurs
Social Entrepreneur blog for the world changers
Sit Down Now and Write That Business Plan (Opinion)
Feb 1st
If you're serious about building a successful enterprise, you'll need a business plan. But don't let that stop you from starting.
Alabama Gives Day Expected To Generate Crucial Funding
Jan 31st
With many states across the country having success with the Gives Day movement, Alabama has decided to join the fun for the first time.
The Montgomery Advertiser reported Sunday that the first annual Alabama Gives Day will begin on Thursday, Feb. 2. Beginning at 12:01 a.m., Alabamians will be able to donate to charities via an online portal alabamagivesday.org. More than 800 nonprofits within 12 categories are registered to participate in the event. Among the participating nonprofits are the Hospice of Montgomery, the Mid-Alabama Coalition for the Homeless, and the Montgomery Area Food Bank.
The Gives Day movement has been very popular since its inception in Minnesota in 2009. Its purpose was to increase philanthropy and increase donor acquisition for nonprofits. The concept has had plenty of success stories, like Colorado Gives Day, which recently had 52,000 donations totaling $12 million. There is no monetary goal set for Alabama Gives Day; organizers simply want as many nonprofits as possible to participate.
If the Gives Days of the last few years are any indication, Alabama Gives Day should be a great source of funding for local nonprofits. Read more about the event in The Montgomery Advertiser.
The Montgomery Advertiser reported Sunday that the first annual Alabama Gives Day will begin on Thursday, Feb. 2. Beginning at 12:01 a.m., Alabamians will be able to donate to charities via an online portal alabamagivesday.org. More than 800 nonprofits within 12 categories are registered to participate in the event. Among the participating nonprofits are the Hospice of Montgomery, the Mid-Alabama Coalition for the Homeless, and the Montgomery Area Food Bank.
The Gives Day movement has been very popular since its inception in Minnesota in 2009. Its purpose was to increase philanthropy and increase donor acquisition for nonprofits. The concept has had plenty of success stories, like Colorado Gives Day, which recently had 52,000 donations totaling $12 million. There is no monetary goal set for Alabama Gives Day; organizers simply want as many nonprofits as possible to participate.
If the Gives Days of the last few years are any indication, Alabama Gives Day should be a great source of funding for local nonprofits. Read more about the event in The Montgomery Advertiser.
Another well-known nonprofit goes out of business
Jan 31st
I was sad to learn that Jane Adaams’ Hull House Association — one of the first settlement houses in the United States went out of business last week. I don’t know the details of their closure but was sad to learn there wasn’t a national fundraising appeal. It is sad that the Hull House serves over 60k Chicagoland residents each year and it could not survive the economic downturn. The Executives stated that they even saw an increased demand for services but could not meet those demands. The organization laid of 300 staff members.
In this weeks finance class my students will be analyzing the financial statements of the Hull House Association. I believe there were hard decisions the board of directors could have made to prevent this closure from happening. In their 2008 990 (the only 990 available) they had a net income of 1mil and negative unrestricted net assets of $4.5mil. I don’t even know how they got to be so in the red but clearly–they spent money that wasn’t available. I am looking forward to a lively discussion with my students!
Managing Nonprofit Diversity Conflict
Jan 31st
Diversity has become the goal at every level of American life. Efforts to promote it have been rightfully applauded. Here's the real question: Are organizations correctly handling these efforts?
One reason people flock toward nonprofit jobs is the diversity in culture and the working backgrounds they support. There is a bigger lesson organizations missed if they are only promoting diversity for diversity's sake. In his book "The End of Diversity as We Know It," Martin R. Davidson argues that a better aim is to embrace and build upon differences among employees.
Davidson, who was a chief development officer at the University of Virginia, also acknowledges that diversity initiatives can cause resistance and even conflict among employees. This can manifest itself in what Davidson calls "identity abrasions," feelings of resentment or defensiveness that come up when people are criticized for being insensitive or ignorant. He wrote that to make these teachable moments positive experiences for all parties involved, he recommends human resources officers implement five "principles of behavior." They are:
One reason people flock toward nonprofit jobs is the diversity in culture and the working backgrounds they support. There is a bigger lesson organizations missed if they are only promoting diversity for diversity's sake. In his book "The End of Diversity as We Know It," Martin R. Davidson argues that a better aim is to embrace and build upon differences among employees.
Davidson, who was a chief development officer at the University of Virginia, also acknowledges that diversity initiatives can cause resistance and even conflict among employees. This can manifest itself in what Davidson calls "identity abrasions," feelings of resentment or defensiveness that come up when people are criticized for being insensitive or ignorant. He wrote that to make these teachable moments positive experiences for all parties involved, he recommends human resources officers implement five "principles of behavior." They are:
- Pausing: There is a natural tendency to react, but taking time to identify feelings and consider options helps in responding effectively to criticism.
- Connecting to larger goals: Meaningful goals make it easier to remember why it is worth engaging with another.
- Questioning yourself: This will help you come to a realistic and accurate understanding of what is happening in the exchange.
- Seeking out balanced support: Rather than just complaining to your friends who will have your back, seek out the counsel of trusted colleagues.
- Shifting mindset towards opportunity: It takes persistent willingness to be introspective.
Is your CEO a figurehead?
Jan 30th
I recently noticed a trend in many nonprofit organizations. The Executive Director/CEO travels around the country and speaks at nonprofit conferences. This is good in theory because it promotes the organization but…what is going on back at the office while the CEO is away? There should be a COO (Chief Operating Officer) or Operations Director with full authority making the tough decisions back at the office. Unfortunately, this is not always the case and CEOs are expected to be the figurehead for the organization and make tough decisions back in the office. We need to recognize that nonprofit CEOs cannot do it all and we need competent Chief Operating Officers to have full authority to run the day-to-day operations of a nonprofit and interact with the board of directors while the CEO is traveling the country promoting the organization.
The Role Of Technology In Philanthropy
Jan 30th
The World Economic Forum, one of the largest gathering of business and political types, began last week in Davos, Switzerland. Where there is talk of money, philanthropy will naturally become a central topic.
The New York Times wrote a blog post last Friday about a panel discussion at the forum on the role technology plays in philanthropy. Hosted by the Victor Pinchuck Foundation, the program began with a discussion about "e-philanthropy," specifically mobile payments. This technology has allowed donors to give small amounts of money to causes. A good example of its importance was seen in the 2010 earthquake in Haiti.
Alec Ross, a senior advisor on innovation to Secretary of State Hillary Clinton, shared his experiences with mobile giving to the panel. He said that the government put together a mobile giving program in the aftermath of the earthquake. The program allowed donors to text the word "Haiti" to a specific number, which would send a $10 donation to relief efforts. The program ended up raising $35 million in two weeks, completely shattering their expectations.
Although this program was successful, all the panelists agreed that one of the main problems with philanthropy is transparency; people want to have a better idea of where their money is going. Sean Parker, founder of Napster and former president of Facebook, cited a nonprofit that he helped finance as an example of good transparency. Charity Water, a nonprofit organization that advocates for clean drinking water around the world, developed online tools for their website that show donors how their money is being used. Parker said that this kind of online fundraising should be adapted by all nonprofits to give donors a better sense of security.
Read more about this topic in The New York Times.
The New York Times wrote a blog post last Friday about a panel discussion at the forum on the role technology plays in philanthropy. Hosted by the Victor Pinchuck Foundation, the program began with a discussion about "e-philanthropy," specifically mobile payments. This technology has allowed donors to give small amounts of money to causes. A good example of its importance was seen in the 2010 earthquake in Haiti.
Alec Ross, a senior advisor on innovation to Secretary of State Hillary Clinton, shared his experiences with mobile giving to the panel. He said that the government put together a mobile giving program in the aftermath of the earthquake. The program allowed donors to text the word "Haiti" to a specific number, which would send a $10 donation to relief efforts. The program ended up raising $35 million in two weeks, completely shattering their expectations.
Although this program was successful, all the panelists agreed that one of the main problems with philanthropy is transparency; people want to have a better idea of where their money is going. Sean Parker, founder of Napster and former president of Facebook, cited a nonprofit that he helped finance as an example of good transparency. Charity Water, a nonprofit organization that advocates for clean drinking water around the world, developed online tools for their website that show donors how their money is being used. Parker said that this kind of online fundraising should be adapted by all nonprofits to give donors a better sense of security.
Read more about this topic in The New York Times.
Sept. 11 Memorial’s Executive Salaries Comes Under Fire
Jan 30th
The last thing anybody expected was controversy at the September 11 Memorial and Museum at the World Trade Center. But that's exactly what has happened after a former employee received a severance package.
The Wall Street Journal reported today that Joan Garner, former executive vice president of design and construction at the memorial, received $296,565 in compensation after leaving her position in May 2010. That brought her total salary for the year up to $439,463, making her the highest paid employee at the organization.
Tax records for the organization, which were first reported on by The Record of Bergen County, show that seven other executives received compensation that totaled more than $200,000. Four of those executives received more than $300,000, including the president, Joseph Daniels, who earned $378,288 in salary and benefits. All in all, the foundation spent $6.5 million on salaries and other benefits in 2010, a sharp increase from the $5.3 million in 2009.
The executive pay at the memorial has come under heavy fire from the families of 9/11 victims, who have called on Mayor Michael Bloomberg, the organization's chairman, to get the salaries under control. However, Bloomberg has long defended the compensation at the memorial and other nonprofits, and his spokesperson said they are in line with similar nonprofits.
Ken Berger, president and CEO of Charity Navigator, disagreed with the mayor. He told The Journal that the salaries in question are on the high end of the spectrum, and that an organization with such an important public mission shouldn't be spending money this way. His comments certainly fall in line with the outraged comments from families who lost loved ones during 9/11.
You can read more about this controversy in The Wall Street Journal. In addition, you can read all about the construction of the many September 11 memorials in The NonProfit Times.
The Wall Street Journal reported today that Joan Garner, former executive vice president of design and construction at the memorial, received $296,565 in compensation after leaving her position in May 2010. That brought her total salary for the year up to $439,463, making her the highest paid employee at the organization.
Tax records for the organization, which were first reported on by The Record of Bergen County, show that seven other executives received compensation that totaled more than $200,000. Four of those executives received more than $300,000, including the president, Joseph Daniels, who earned $378,288 in salary and benefits. All in all, the foundation spent $6.5 million on salaries and other benefits in 2010, a sharp increase from the $5.3 million in 2009.
The executive pay at the memorial has come under heavy fire from the families of 9/11 victims, who have called on Mayor Michael Bloomberg, the organization's chairman, to get the salaries under control. However, Bloomberg has long defended the compensation at the memorial and other nonprofits, and his spokesperson said they are in line with similar nonprofits.
Ken Berger, president and CEO of Charity Navigator, disagreed with the mayor. He told The Journal that the salaries in question are on the high end of the spectrum, and that an organization with such an important public mission shouldn't be spending money this way. His comments certainly fall in line with the outraged comments from families who lost loved ones during 9/11.
You can read more about this controversy in The Wall Street Journal. In addition, you can read all about the construction of the many September 11 memorials in The NonProfit Times.
10 Business Plan Words Every Manager Needs to Know By Heart
Jan 30th
If you're starting or running a business, you'll need to know this list of essential business planning words.
What to Do When You’ve Built It and No One Comes
Jan 30th
When you have something to sell, being stuck in one place isn't always a winning idea. Fortunately, there is an alternative.
What to Do When You’ve Built it and No One Comes
Jan 30th
When you have something to sell, being stuck in one place isn't always a winning idea. Fortunately, there is an alternative.
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