FYI: VPPNews: December Issue
| "When you do the common things in life in an uncommon way, you will command the attention of the world." George Washington CarverWhat is Social Entrepreneurship?Statement of Faith You can find other "Market with Meaning" but you definitely want to see "Profit with Purpose". I personally "Believe in Kingdom Transformation" because I know there is only ONE "Life for Significant". --- 2009年12月12日 星期六，Venture Philanthropy Partners <vvrana@vppartners.org> 寫道﹕
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Growing What Works, Part II
Earlier this year, I shared some of the high level lessons VPP has learned helping nonprofit organizations strengthen their infrastructure and grow to serve more children and youth in the National Capital Region. We have also captured and presented some of the lessons our investment partners learned as they expanded out of the neighborhoods and communities where they got their starts in our latest publication, Greater Than the Sum of Its Parts, Part 2: Lessons on Regional Scale.
In my column this month, I would like to elaborate further on one of VPP’s biggest lessons: Regional Scale is Complex, but Critical for Social Change. When we first began our work in 2000, we were very focused on the mechanics of helping an organization grow, and creating a new model of philanthropic investing. We spent considerable time developing our selection and assessment processes, refining our approach to providing strategic assistance, and figuring out what capacity we needed in order to do this work well. But frankly, it was not until we were a year or two into real-time investments that we began to realize some of the challenges our investment partners faced beyond the limitations of their own capacity. We began to see that one of our biggest assets might very well be our ability to help leaders and organizations navigate the formal and informal channels that either allow growth to happen successfully and sustainably, or prevent new organizations and services from ever taking root in new areas of our region.
As we look harder at the needs of organizations as they scale regionally, beyond capacity and growth capital, we have identified a number of lessons that may be of interest to other place-based funders with a focus on scale, particularly those just starting out.
- Planning, Research, and Data are Key
Just like our nonprofit investment partners, VPP must have access to comprehensive information about the demographics and needs of children and youth in the region, current and potential policy and regulatory developments, and more. Through our partnership with the Brookings Institution, we have recently updated our research on the changing demographics of the National Capital Region. We have also had in-depth presentations from and conversations with government officials and human services providers in DC, Fairfax, and other surrounding counties to benefit from their research, data collection, and frontline perspectives. As we support the nonprofits in our portfolio, we also need to have a hyper-focus from day one on their business models for growth and have enough information ourselves on the private and public funding environments, to know the short-, mid- and long-term viability of those models. Business planning lays out the costs of growth, but it does not define the long-term financing strategy. We must have the rigor and discipline to ask the hard questions about models and feasibility long before we exit an investment.
- Growth Does Not Happen in a Vacuum—It Takes an Ecosystem
Another huge lesson we have learned—and we are still exploring the implications—is the need to consider and effect “micro-policy.” In order for our investment partners to scale and grow, it is often necessary to address deep, underlying system impediments. Regulations, the way capital flows, and local, state, and federal policies all may create impassible barriers to sustainable scale and to social change. As a growth funder, we need a full understanding of the environment in which our partners are trying to expand. We need to look for opportunities to leverage our network to its fullest extent and consider supporting our investment partners and/or the larger community to come together and take action. While we do not now fund direct advocacy organizations, we are increasingly aware of the need for nonprofits to take on advocacy as some aspect of their work.
- Communities are Complex and Nuanced
We started our work knowing that increasing services to children and youth was nothing like opening franchises to sell hamburgers, but, at the same time, we did not fully realize the extent to which each community and neighborhood was incredibly unique, with its own assets, needs, dynamics, and issues. While a deep understanding of the communities in which they work is a strength of our investment partners, we have found that it is important for us to continually emphasize cultural competency as they expand to serve new communities and jurisdictions. We also need to help our investors and others understand the importance of this kind of understanding and sensitivity for ourselves and our partners. As we select new investments, we know that leaders and organizations can not “parachute in" to a community. Whether it is a local nonprofit wanting to reach a new neighborhood or a national organization completely new to our area, they must have the willingness to engage deeply with the community and the potential to earn that community’s trust and respect. We look for these same qualities in our own team. When we are helping our partners expand, it is important that we operate from a non-deficit model and accept the community’s position, beginning there rather than projecting our own plans and “solutions.” It is also crucial that we and our investment partners continually seek feedback from those we are serving. Our most recent effort to this end was summarized in the report Perceptions Matter, where we share findings from more than 80 interviews of our investment partners and respected thought leaders, conducted by an outside evaluator. The most important piece of soliciting feedback, though, is acting on it. And this is something that, again, we go to great lengths to do and strongly encourage our investment partners to do as well.
- You Can’t Go it Alone
All funders benefit from collaboration and coordination, but for growth capital providers, it is critical. If you provide the funds to help an organization triple in size, others will need to step up with increased funding for programs. Pro bono service providers, the corporate community, and public funding partnerships are all necessary to sustain growth. When we first began our work, many feared our funding would drive others away. We, and our investment partners, were gratified to learn that, to the contrary, we were able to leverage our funds over $1 for $1. That leveraging was largely serendipitous and developed organically with our portfolio. In our second portfolio, we will be much more deliberate in creating “syndicated” business plans and helping investment partners raise the funds they need to fully implement plans and sustain growth.
- Balance Between Drive to Rapid Scale and Reality
We learned early on that, again, unlike fast food franchises or twitter users, “scale” in the human service world was not as exponential or as rapid as we or our investors would have liked. At the same time, we believe in growth and must balance the need to encourage and push our investment partners to have bold ambitions with the realities of what is possible in the markets they are trying to reach. To that end, we have modified our definition of scale to include increases in outcomes and indirect scale caused by disrupting a system or creating models and catalysts for adaptation by others. We have also realized that the type of product or service being scaled has an impact on the pace and potential for growth. For example, an organization with a well-defined product-type offering can scale much more quickly than a complex, multi-service organization that has been community-driven in its evolution.
- Relationships, Relationships, Relationships
Just like our investment partners, VPP has needed to make sure it was known, respected, and understood by key players in new geographic areas. Our team must have relationships and networks that span the region, and we must look for people who can be ambassadors and validators for us as we help organizations expand to new communities.
- Don’t be Afraid of Failure
Finally—and this lesson is instantly understood by our friends and investors from the venture capital world—you have to expect some bumps in the road. We are investors for the long haul, and that means that situations and environments will inevitably change. This work is messy and hard and takes a significant amount of time. It is o.k. to be out of your comfort zone, and, in fact, it is often necessary for real transformation.
The deep demographic shifts in our region were brought home to me in a very tangible way when our team was recently meeting with local government officials, school and nonprofit leaders, and community representatives in Langley Park, MD, an underserved, suburban, multi-ethnic and immigrant community north of the District. It was a rare opportunity to hear firsthand the struggles, challenges, assets, and pride these residents have in their community. Even more notable, this bilingual dialogue was enabled by simultaneous translation and skillful facilitation. We learned how many of these residents were benefiting from the expansion of our IPs into their community to have basic needs met. We also realized how much more must be done.
The National Capital Region is incredibly and increasingly diverse and complex, like many major metropolitan areas across the nation. And the movement of people across jurisdictional lines to receive critical social and human services puts tremendous pressure on the entire region, which means more pressure on the nonprofits addressing these needs.
A major lesson from our work is the need for a healthy ecosystem to nurture and sustain the kind of growth required to meet these demands. While we must continue to work with strong leaders in high-performing organizations. We must also bring our collective resources to build the needed ecosystem to sustain the growth and positive outcomes we have achieved.
Changing times…tough economic times require bold leadership and action. All leaders—business, government, nonprofit, civic and philanthropic—must be willing to step outside of their comfort zones to resolve the complex issues in our communities. All of us must expand our thinking, become culturally competent, truly work collaboratively, and hold ourselves accountable for making this a community that provides a good quality of life for all residents. Growth capital, strong pipelines for talent, strategic assistance, data and research, and a favorable regulatory and policy environment are essential if leaders and service providers are to boost opportunities for the most vulnerable in our region, low income children, youth, and families.
Case Foundation Co-Sponsors Giving Challenge, Raises Over $2 Million
The second annual America’s Giving Challenge closed on November 6, with a grand total of $2,101,914 raised. America’s Giving Challenge is a 30-day national competition that encourages people to leverage their personal networks and online social media to help their favorite nonprofits win daily cash awards that will total $245,500. The daily cash prizes are awarded based on the number of donations an organization receives, rather than dollars raised. Nonprofits can therefore benefit twice: Once from the donations they receive online, and again from the daily cash awards. Over the 30-day time period, 105,000 individual donations were made to over 7,800 organizations—a major increase over last year’s participation, despite the challenging economy.
While America’s Giving Challenge aims to help fund nonprofits and attract supporters, the Challenge is also designed to encourage groups to experiment with social media tools and discover new ways of connecting with their supporters and the public. The Challenge is hosted on Causes’ Facebook application, giving nonprofits access to various online methods for organizing grassroots support.
"America’s Giving Challenge proved that thousands of individuals and nonprofits were up to the task of utilizing both online and offline personal networks to encourage people to give to the causes they care about," said Case Foundation CEO Jean Case. "The incredible number of donations and dollars raised demonstrates the potential for individual giving to have a significant impact, no matter how big or small the donation.” They certainly were up to the task: This year’s Giving Challenge raised more money in fewer days than the previous year’s, which netted $1.7 million in 50 days. What is equally remarkable is that the Challenge was dominated by small, local nonprofits, proving that social media can be a powerful tool for organizations with low operating budgets to leverage their supporters.
Among the overall winners for the most donations in 30 days were: Overseas China Education Foundation; Ride 2 Recovery; Darius Goes West; Homeward Trails Animal Rescue; and Association for India’s Development. For a full list of America’s Giving Challenge winners and the official press release, click here.
Acumen Solutions Race for a Cause™ Provides Innovative Fundraising Model
David Joubran’s enthusiasm for athletics is so infectious that in the early days of his company, Acumen Solutions, he recruited more than 40 people from the company to participate in the Make-A-Wish Foundation of the MidAtlantic Triathlon. So it’s no surprise that when he wanted to take Acumen Solutions giving to a new level, a race emerged as the perfect solution. Joubran and Margie Johnson, Director of Acumen Solutions Corporate Care Department, came up with the Race for a Cause, an 8K through Arlington that allowed participants to choose which out of 13 local charities would benefit from their participation. Despite some very wet weather, more than 900 people registered to race for their causes and raised $35,000.
Race for a Cause participants, including David Joubran, Co-founder, President & CEO of Acumen Solutions and VPP Donor, run an 8k course through Arlington streets.
This was not the first race that Acumen Solutions put together to benefit the local community. For three years, the company sponsored the Jingle All the Way 10K, which benefited the SEED Foundation of DC. “This year, our focus has been on impact, and David and I talked a lot about how to do something new after our 10K to really step up that impact,” said Johnson. The Race for a Cause was a great option because it was a winning situation for all involved. Acumen Solutions was able to engage its nonprofit partners through building a race website that featured videos of the nonprofit beneficiaries and working with the nonprofits to attract runners and raise money. The nonprofits even put together their own teams for the Race for a Cause. Participating organizations also had an opportunity to garner wider support by tapping into the Acumen Solutions network of employees and supporters. Race participants were able to choose which organization received their contribution, allowing them to help out a cause that truly mattered to them.
Service and giving back to the community has been a core value of Acumen Solutions since its inception 11 years ago. As the company has matured, however, so has its giving. In the beginning, Acumen Solutions engaged primarily in grassroots efforts. Now, 11 years later, they combine and coordinate a number of different efforts: pro bono business services; a nonprofit board leadership program for corporate executives; financial sponsorships for various causes that their employees support; and employee service days. Joubran remarked, “We founded the company with a belief that giving back was our obligation. As our consulting business has grown, it has been vitally important to our success to maintain focus. We have applied that same focus to our social responsibility efforts. By weaving together our service days, our pro bono efforts, our Board Leadership program and now this race, we can make a real difference in both the lives of our employees and our communities in which we work and live.”
The company recently made it even easier for those they work with to get involved in service. Through a partnership with ServiceCorps, Acumen Solutions consultants can now access an online database of pro bono projects to work on in between their own assignments.
Acumen Solutions strives to integrate all these ways of giving for its nonprofit partners in order to maximize the company’s impact. Currently, they have 20 executives serving on 21 nonprofit boards, 18 of which are local to DC; the other three are in New York and San Francisco, where the company also has offices. The Race for a Cause is the latest step in that effort to engage more fully with the organizations that Acumen Solutions benefits.
VPP Releases Part II of Report on Demographics and Regional Scale
As part of a series on changing demographics in the National Capital Region, VPP recently released “Greater Than the Sum of Its Parts, Part II: Lessons on Regional Scale.” The report tells the journeys of four of VPP's investment partners, AALEAD, CentroNía, the LAYC, and Mary's Center, as they expanded to new neighborhoods and jurisdictions to serve unmet needs of children and youth. The nonprofit leaders share their experiences and lessons learned while growing to ultimately provide critical programming to more than 3,400 young people in Maryland (as of June 2008).
Members of VPP Community Recognized for Outstanding Service
Friends and team members of VPP were honored this past month with several awards.
Earl Stafford, a VPP friend and investor, was awarded the Outstanding Philanthropist Award by the Washington DC Chapter of the Association of Fundraising Professionals (AFP/DC) for his extensive philanthropic work, including his People’s Inaugural Project in January 2009 and the work that he carries out through The Stafford Foundation to help the disadvantaged and underserved throughout the DC metropolitan area. Upon receiving the award, Stafford said, “Each of us has an obligation to help provide for the less fortunate and underserved in society. Even during these difficult economic times, I encourage all to actively seek ways to help those who are hurting. Whether it is with a dollar or an hour of time, let's do a little good.”
Mario Morino, VPP Co-Founder, Investor, and Chairman of the Board, was named a member of the Class of Change 2009 by Greater DC Cares. Mario gave the keynote speech for the group of “lifelong leaders in philanthropy” and was in excellent company; also included in the Class of Change this year were VPP Board member Terri Freeman, honorary VPP Board member Julie Rogers, and VPP friends and associates Lyles Carr and Tien Wong.
Mario was also honored with a Women, Power and Peace Award, given by investor Patricia Smith Melton’s organization Peace x Peace. The awards recognize peacemakers and were also given to two Afghan women, Suraya Pakzad and Fatima Gailani, for their work promoting education and humanitarian efforts in Afghanistan; and Abigail Disney, for her work on a documentary detailing the peace efforts of Liberian women. To learn more, read the Washington Post article on the event.
Last but certainly not least, VPP’s own CFO, Eleanor Rutland, was honored as a finalist for the Washington Business Journal CFO of the Year Award in the Nonprofit category. Eleanor was nominated for her precision and expertise in all financial aspects of VPP, as well as her outstanding leadership both within and outside her duties as CFO/COO.
Partnerships & Alliances
College Summit-NCR Hosts Peer Leader Conferences with Help of Community Partners
Thanks to Vinette Brown, Director of Development, for this update.
“Leave your mark by encouraging other students to prepare for college.” These were the words of Dr. William Hite, Superintendent of Prince George’s County Public Schools, as he addressed a group of nearly 200 Peer Leaders at a College Summit-National Capital Region Peer Leader Conference at Trinity University on October 28. The conference was the second of two held that week by College Summit-NCR for its 400 Peer Leaders from 26 schools in DC, Prince George’s County, Baltimore, Alexandria, and Arlington. The first conference was held on October 26 at Morgan State University in Baltimore.
Dr. William Hite speaks with College Summit peer leaders. The goal of the conferences is to jumpstart college-going culture at each school by training Peer Leaders on leadership, fundraising, networking, community mobilization, media, and marketing. Peer Leaders attended small group sessions facilitated by College Summit staff, Peer Leaders from Largo High School and College Summit-NCR community partners, including: Deloitte’s Black Employee Network, Target, Howard University School of Business, Wide Angle Youth Media, Next Generation Foundation, and Mrs. Maryland International 2009.
Describing the Deloitte session on leadership styles, Timothy Spicer, an impressive Peer Leader from Wakefield High School in Arlington, who recently introduced President Obama during his historic education speech, said, “[The session] bettered my awareness of networking and preparing myself for college.”
Dr. Hite ended his speech with these encouraging words, “When s
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