Local Nonprofit Allies Are Valuable Assets During Tough Economic Times

July 31, 2009

Our grantmaker members have been requesting the opportunity to learn more about resources available to local nonprofits looking to build capacity and support their infrastructure, especially in the current economic environment.

MCF hosted “Getting to Know Your Nonprofit Allies” on July 21 as part of its Economic Roundtable Series for MCF members. A few choice highlights from the event follow. MCF members can download a full report of the event, as well as pdf versions of the PowerPoint presentations given on our Economy and Philanthropy page.

Representatives from three locally based nonprofit assistance organizations discussed accountability, collaboration, mergers, technical assistance, financial expertise, organizational development and capacity building.

Charities Review Council (CRC) executive director Rich Cowles quoted former Star Tribune reporter Bob Franklin as saying that the CRC is morphing from a sector watchdog into a guide dog. CRC’s Accountability Wizard tool is one reason why.

Cowles explained that engaging in the process to complete the Accountability Wizard gives nonprofits the opportunity to strengthen their policies and procedures and make sure they are aligned with accepted and sound practices. It also lets prospective and current donors know that the organization is paying attention to accountability/transparency issues. A recent survey showed that donors who have higher trust in an organization tend to give more.

Organizations that meet all the accountability standards earn a fundraising “seal,” which can set them apart in the field, which is especially important in this economy.

Fieldstone Alliance works with nonprofits, philanthropic organizations and academia, looking at all the pieces that contribute to strengthening the nonprofit sector.  Carol Lukas, president, cited examples of Fieldstone’s work in research, publication of learning resources, capacity-building initiatives and partnerships, training and consulting.

In lean times, Lukas pointed out that many nonprofits tend to look only at expenses, but developing a strategy for revenues is also important.

The ”Free Resources” section of Fieldstone’s website provides the most recent economic resources, as well as practical, downloadable research reports, e-newsletters and tools. Several assessment products also are detailed on the website, including resources to help define and measure sustainability and answer the question, “How do you tell if an organization is sustainable?”

MAP for Nonprofits’ Project ReDesign’s director Renae Oswald-Anderson explained that mergers and other forms of realignment should not just be a response in difficult times, but part of an examination of how organizations can best serve and advance their missions. Contrary to for-profit mergers, mission advancement is the top priority in nonprofit mergers.

Merging is not the end of a mission, but the rebirth of a mission and requires full, intentional integration of board, programs, services and funders. The guts of the work focus on reaching common understandings on the “Big 3”: Organization name and mission (how do we preserve history, create change and move forward?); governing structure (what does this look like and how do we do this?); staffing and management (who will be the leaders?).

Program transfer, in which service sustainability is the key, is another form of realignment.

The presenters discussed grantmakers’ important role in making sure capacity-building progress is maintained by nonprofits:

  • Capacity building is not a one-time event, but a long-term investment.
  • Change is a two-to-three year process.
  • Leadership changes affect capacity building.
  • Keys are to follow-up, fund capacity building over time, and support leadership over time.
  • Nonprofit organizations can’t survive in the current model with decreased government and private funding, increased need, clients/users of services who cannot pay. We need to experiment with different funding models and discuss how grantmakers can best support grantees. Sustainability is an issue.  Where does an organization go to get money for operations? Boards and trustees may want to consider investing more in organizations than projects.

- Chris Murakami Noonan, MCF communications associate

Photo CC Lucas Towne Designs

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The Resilient Organizations Fund, Building Capacity in a Tough Economy

July 30, 2009

Many foundations are grappling with the question of how they can help their nonprofit grantees become more sustainable, innovative and better positioned to survive what may be an extended economic downturn.

Blue Cross and Blue Shield of Minnesota Foundation believe it has found the answer. The foundation has partnered with Fieldstone Alliance, Nonprofits Assistance Fund and MAP for Nonprofits to create a new Resilient Organizations Fund.

The Resilient Organizations Fund is designed to support organizational capacity-building activities for the foundation’s current grantee organizations and community partnerships. The partners will collaborate to design and deliver a customized capacity-building program, which includes trainings and webinars, an online resource catalog, organizational assessments, and other capacity-building activities.

Each element is designed to function both as a stand-alone
tool, as well as to fully integrate with the rest of the program. To increase statewide impact, the fund is working in partnership with the Minnesota Initiative Foundations for all activities in Greater Minnesota.

The program is designed to lay the foundation for and complement a supplemental funding opportunity. The foundation has made available $400,000 for capacity-building grants. Current grantees who participate in this program are eligible to apply for up to $20,000 in capacity-building funds.

“Through the Resilient Organizations Fund, we are providing resources that will strengthen the capacity of nonprofits to think and act differently to address these challenges, so they can emerge as stronger, more strategically aligned organizations,” reports Joan Cleary, vice president of the Blue Cross and Blue Shield of Minnesota Foundation. “Such organizations are best positioned for long-term sustainability, which will in turn create a healthier community for Minnesotans today and tomorrow.”

To learn more about the Fund, visit www.resilientnonprofits.org.

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Shakopee Tribal Giving Tops $40 Million

July 29, 2009

The Shakopee Mdewakanton Sioux Community (SMSC) has announced that annual charitable giving for 2008 exceeded $40 million, a significant increase from prior years.

MCF publishes an annual list of grantmaker rankings.  Last year SMSC ranked 12th on the list of the top 50 Minnesota grantmakers, with donations totaling $26 million.

This dramatic increase in 2008 giving could place SMSC among the top 10 most generous philanthropic organizations in the state, along with such corporate givers as Target, General Mills, Medtronic and Cargill.

According to the Strib yesterday, economic development of other Midwest tribes is a prime focus of SMSC.   According to details in the SMSC 2008 Donation Report (pdf), nearly $19 million of the $40 million total was given to other Native American tribes and organizations around the country.

Education, youth and health initiatives are also important to SMSC.   One very large gift of $12.5 million went to the University of Minnesota for scholarships and to build the Minnesota Tribal Nations Plaza at TCF Bank stadium.

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Insightful Ways Foundations Can Support Community Needs

July 28, 2009

Almost every foundation today is looking for the magic answer to how they can do more for their constituents in spite of their reduced assets. Well, there may be some solutions after all!

While we may not be able to call Wendy Horton and her team magicians at Community Foundation Insights, I can tell you that they have produced an excellent, easy-to-read report full of ideas on how foundations can cope with the economy and support their constituents.

The report is called “Taking Informed Action in Challenging Times” and was presented at a Council on Foundations meeting I attended in Chicago recently. Now if you don’t have a lot of time, you can just read the Executive Summary, or — if you’re a lists person like me — I highly recommend the list of ideas in section 5, “Serving Your Community.”

Although written for community foundations, most of the ideas can be applied to all types of foundations. Three key themes emerged from the research — Capacity Building, Convening, and Collaboration. Some of my favorite ideas pulled out of CFInsights’ “magic hat” include:

  • Create a “first responders” list of vital human service organizations serving the community.
  • Shorten decision cycles or create “fast track” grant categories.
  • Convene larger funders in the community to create a coordinated response.
  • Support mergers of small programs into larger, more sustainable organizations.
  • Provide educational seminars for nonprofits on topics such as proposal writing, donor development, board development, and strategic planning.

This report as well as a pre-recorded webinar about it are available to download for free at the Community Foundation Insights website.

Join the Conversation: What are some new and creative things your foundation is doing, or considering doing, to support its constituents? If you have any ideas or resources to share, please let us know. We will review them and consider posting appropriate links on our website so everyone can benefit.

- Lisa Johnson, MCF’s manager of professional development and e-learning

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Twin Cities Compass: Your One-stop Shop for Data on Community Needs

July 27, 2009
  • Do you know how many children under the age of 18 lack health insurance in the Twin Cities region?
  • How about which specific lakes in our area meet basic water quality standards?
  • What about violent crime? Has it increased or decreased in the Twin Cities in recent years?
Looking for guidance on grantmaking decisions? Twin Cities Compass has data that can help.

Looking for guidance on grantmaking decisions? Twin Cities Compass has community data that may help.

No, these aren’t just trivia questions. (You can find answers, below.) They’re some of the many data points you can find on Twin Cities Compass, a partnership between Wilder Research and over 400 community leaders, to develop a set of indicators measuring the quality of life in the Twin Cities region.

I recently attended a seminar at Wilder called Fact-Based Fundraising, for grant writers, marketing staff, and others searching for data on community needs. Carolyn Roby, Vice President, Wells Fargo’s Corporate Social Responsibility Group in Minnesota, and an MCF board member, spoke about the importance of the data available on the site. Grantmakers in the area, many of whom participated in the development of the Twin Cities Compass indicators, rely on the data as a guide for understanding and prioritizing community needs, she said.

The site offers a wealth of statistics organized by topic – 9 topics in total, ranging from civic engagement to the economy and workforce to transportation. “Key measures” (pdf) for each topic – selected by an advisory team of research experts from the academic, government, nonprofit, and business sectors - are designed to show where the community stands currently and what the important trends are in each topic area. Many of these can be examined by race, place, income, age,  and gender. ”More measures” provide additional data and research on the topics, and are meant to foster deeper understanding of the issue.

Other information available on the site? Each topic area has an “Ideas at Work” section, with information about current initiatives and research-based strategies for tackling the challenges facing our community. There is an online library for each section that is regularly updated with new, relevant research reports, and an RSS feed for each to keep you informed on the latest resources. A monthly “For Discussion” column highlights the thoughts of community leaders who create and rely on the research found on Twin Cities Compass to do their work.

Funders are more likely to give both their money and their time to a nonprofit if they trust that organization, according to Carolyn Roby. Demonstrating a community need or problem with relevant, timely data from trusted sources, she said, is one of the best ways to gain that trust.

Twin Cities Compass is a one-stop shop for much of that information.  And coming this fall? Minnesota Compass – a resource with indicators measuring the well-being of the state.

-Juliana Tillema, MCF research manager

  • 37,000 children in the Twin Cities region under age 18 lack health insurance.
  • 86% of lakes in our region do not meet basic water quality standards. A complete list, by lake, found here.
  • Violent crime increased in the Twin Cities in 2006 and 2007.
Photo CC Thom Watson

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“Human-Centered Design” in the Social Sector

July 24, 2009

The summer 2009 issue of the Stanford Social Innovation Review includes a fascinating interview with Judith Rodin, head of the Rockefeller Foundation.

In recent years the Rockefeller Foundation has started to fund “innovation.”  What does this mean?  In the case of the Rockefeller Foundation it means that they are funding efforts to bring innovation processes that have been created in the private sector to addressing challenges in the social sector.

One example is their work with IDEO, a preeminent design and innovation consultancy firm, that has developed the concept and practices of “human-centered design,” which is also known as “user-driven innovation.”

The basic concept of Human-Centered Design (HCD) is that consumers or end-users need to be involved in the design of any product or service.  The process of HCD involves three lenses:

  • Desirability – What do people desire?
  • Feasibility – What is technically and organizationally feasible?
  • Viability – What can be financially viable?

As I searched the internet for further information about IDEO’s work, I learned that IDEO has partnered with the Bill & Melinda Gates Foundation, International Development Enterprises (IDE), and the International Center for Research on Women (ICRW) to create a free toolkit that can be used by people around the world who are working on challenging social problems.

This toolkit has already been used in a variety of projects; and IDEO continues to develop and refine it.

From my own experience with IDEO 10+ years ago I know that IDEO began with a focus on product design and development.  In fact, their founder designed the first computer mouse many years ago.  I am inspired to see that they are now sharing their considerable expertise to help find new ways to address many social challenges around the world.

Join the Conversation: Are you using HCD in your work?  Or are you interested in learning more about it?

- Cindy Moeller, MCF director of professional development and member Services

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Despite what test scores show, we’re working hard.

July 23, 2009

“Your hard work will pay off in the long run.”

This is a cliché, but it’s worth repeating. I’ve murmured it many, many times – most recently in conversations with my children, their teachers and others who have committed themselves to improving educational opportunities in my community.

Now that we’re embedded in an era of high-stakes standardized testing, it’s clichés like this that have to be whispered over and over again, especially for those toiling away in classrooms, schools and districts whose test scores are not glowing.

I dread when Minnesota publishes the results from its standardized tests, because the results for my school and district never seem to reflect what I believe to be a monumental investment of effort, resources, heart and soul by all – children, teachers, parents, administrators, the community – to positively impact learning and, as a byproduct, our test scores.

This summer’s  release of scores was no different, except that I’m now working at MCF and have a heightened awareness of the investment that grantmakers also are making.

For our current issue of Giving Forum, I interviewed 25 people who work at grantmaking organizations, and every one of them talked about the critical need to impact the achievement, access and opportunity gaps in our schools.  They passionately described the variety of nonprofits and initiatives they support and how those endeavors are creating change – both immediate and long-term, both individually and system-wide and throughout the state. They acknowledged that, while the challenges are daunting, they are hopeful and confident that what can be done to support one student in realizing his or her educational goals can be done for all.

Earlier this week, Minnesota Comprehensive Assessments II science exam results were published.  While the Star Tribune’s headline proclaimed students’ “dramatic gains,” a paragraph toward the end of the article noted that every ethnic subgroup improved, but, “That said, as the scores rose, the white/black achievement gap also grew slightly, by about three to four percentage points in all three grades.” Nothing more was explained.

Contrary to the Star Tribune, the Pioneer Press’ headline said students “fall short in science.” In the midst of its article, the paper elaborated on the achievement gap evident in the test scores, saying “As for ethnic subgroups, all showed gains at all three grade levels [the test was given in grades three, five and in high school], though the familiar gap between the performance of whites and other students persists.

At each grade level, white students scored highest as a group and black students lowest. The biggest difference was in high school, where 56 percent of white students met or exceeded standards, compared with 17 percent of black students. Asian students, along with whites, posted the greatest improvements.”

I read this again and again. Fifty-six percent compared to 17 percent? Not mentioned in either of these articles is that Minnesota is home to one of the largest achievement gaps in the U.S., according to the “Education Watch State Report” published by Education Trust.

A comment posted on my blog of last week about education and philanthropy in Minnesota focused on the importance of funders knowing about programs that are making a positive impact in supporting African American students and efforts to improve their performance on standardized tests. In light of the newly released snapshot of test scores, which cannot possibly reflect all the work that is happening community-wide to tackle some almost-overwhelming challenges, it’s critical that promising initiatives be supported and sustained.

So, let me use this blog to acknowledge all the hard work being done by funders, educators, nonprofits, students, parents and community members. It will pay off in the long run.

- Chris Murakami Noonan, MCF communications associate

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In the Media

July 22, 2009
Photo by Dan..

Ridin' the range and ropin' the headlines so you don't have to.

Your biweekly roundup of media coverage on the world of nonprofit and philanthropy (yee-ha.)

Economy
The Unpaid Pay-off of a Between Jobs-Job
(The Washington Post) Writer Vickie Elmer shares how unemployed workers are honing their skills while “on the beach” by volunteering. Her advice for getting the most out of it—have a plan.

Local
Nonprofit Mergers: Putting the Best Foot Forward
(MinnPost) Scott Russell reports on COMPAS and Young Audiences of Minnesota’s merger, and discusses a couple of resources for nonprofits considering mergers.

Region’s ‘Fourth Estate’ Squeezed by Recession, Race to the Internet
(Business North) Community newspapers consider tactics for survival, including one gaining national traction–becoming a nonprofit.  Blandin Foundation warns that the shift to nonprofit is not a cure-all.

St. Paul Pilot Program Seeking More Women and Minority Firefighters
(MinnPost) An EMS Program supported by local foundations, including The Saint Paul Foundation and Otto Bremer Foundation, are searching for female and minority candidates for an EMS certification program.

Young Artists Paint Their Futures through Internships
(Pioneer Press) A five-week course helps Twin Cities teens learn the in-and-outs of being a professional artist. The program was made possible with support from The Minneapolis Foundation.

National
The Extraordinaries: Will Microvolunteering Work?
(NPR) Microvolunteering is doing good on the fly with your iphone, palm or other mobile device. Cool and innovative yes, but is it effective?

Bill Clinton: Rural Foundation Help ‘Inadequate’
(The Associated Press) Bill Clinton announced at the COF’s Rural Philanthropy Conference that support to rural America is “woefully inadequate.”

How Crazy Are Harry Potter Fans?
(Newsweek)  Remember how the kids at Hogwarts assembled Dumbledore’s Army to fight against the Dark Arts? Well, that’s kind of happening in real life, too. One registered nonprofit run by HP fans wants to eradicate poverty, illiteracy, and genocide.

How to Find the Great Nonprofits
(The Examiner) The GreatNonprofits website strives to be the Angie’s List of nonprofit organizations.

Knight of the Newsroom
(The Chronicle of Philanthropy) Lead by Alberto Ibargueen, the John S. and James L. Knight Foundation is taking a novel approach to saving the struggling news business.
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Photo CC Dan Nevill

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