A Visual Guide to Giving

It's that time of year again - at least it's the time when nonprofits make one more appeal before the year ends - and before they start appealing again in the new year. Nothing like a deadline - real or self imposed - to make something happen.

Earlier this month, a terrific infographic on giving, Charity: Who Cares?, was released by mint.com and WallStats.com. As a visual kind of guy who thinks in terms of who gives what and why, I love this kind of information.

It puts into perspective the $300B given to charities and the $404B given to WalMart every year. According to mint.com, the charities collect less than a third of what they need to keep the lights on. Nothing like a little context to get your brain spinning about reality.

The data for the infographic comes from three sources:

1. Charity Navigator, one of the most significant, independent, national charity evaluators (Guidestar is another)
2. The National Center for Charitable Statistics, established in 1982, it's the national clearinghouse for nonprofit data
3. The Center for Philanthropy, the nationally renowned center of nonprofit studies at Indiana University

These sources are about as neutral and accurate as can be. However, there is always someone who wants to disagree. Based on the comments at the bottom of the chart, the report does step on a few toes.

Decide who and what you want to believe. While you're thinking about it, I hope you're doing all you can to nurture your individual donors. If you haven't noticed, they're kind of important.

One last note: to keep your brain spinning, take a minute - literally - to check out theYouTube explanation of just how much is a trillion. Some say trillion is the new billion. Think big.

Hope to Fill Your Glass

On Christmas night just a few weeks ago, Ray Suarez asked: "When will the muscles in the back of your neck relax?"

During the 25 December edition of The Newshour on PBS, Suarez was talking to three exceptional leaders in the nonprofit world. The panel was composed of the development manager of the Salvation Army, the editor of the Chronicle of Philanthropy, and the president of the Better Business Bureau's Wise Giving Alliance. It could not have been a better summary of the challenges facing nonprofits during the current economic crisis.

You're best served by reading the transcript of this excellent interview. What follows is my summary and a few comments.

The glass is half full: it's a bad time for all charities, but social services giving for people in need has increased a little - just not enough to meet the growing demands.

The glass is half empty: If you're not involved with social services, hang on. The arts, the environment, and other parts of the public sector are incredibly important, but they will be in line behind the basic needs of people.

Charities lag the economy. The economy lags the market. The market has yet to turn around although there are small hints of new life. This means there's a "long row to hoe" during this new economy.

That row may last longer than many charities can stand. There are only so many ways to become more efficient and creative. Assuming the only people left on your bus are the right people, it is going to be a short bus ride if you cannot afford gas and tires.

People and foundations are prioritizing their giving. Corporations are barely thinking of giving. Nonprofits must prioritize their spending. Tension is increasing between donors and service providers.

It's tough to ignore the passion of the servant's heart, but the reality is either:
a) don't cut back on services and close the doors this summer or
b) scale back and try to make it to the end of the year. Depending upon how long the row is, you may well get to do it all over again next year.

Faith is an important element here. Yes, God will provide and can stop a locomotive. But He gave you the brains to get off the tracks before the train comes. Now is a time, not just for prayer, but for some thought leadership.

Forward thinking nonprofits will be looking for more partners, collaborators, volunteers, and even mergers. Is it all about you and your nonprofit - or is it really about who or what you serve? As with every crisis, there are opportunities.

Can some administrative services be combined with other nonprofits in your sector or geography? Is there someone willing to create an administrative outsourcing business for nonprofits? At what cost? Who can help peer organizations get past egos and come together to serve the common good?

The response to Suarez's question was that it's time to shift nonprofit thinking to the "new normal" (my words). There is an immediate need for survival. You must manage through this week and this month.

But the row may take many months to hoe. What are your plans for the new economy that does emerge next year - or the year after next? Are you ready to consolidate? to share resources? to share responsibilities?

The new economy is the new normal. There is help for the asking. Is it time to add some partners to your paceline?

There are answers to all these questions. There is hope - it is not a new concept.

Diversity is Dead!

Long live diversity!
Who ya gonna believe? Google "diversity" and you'll get 93.1M hits. It's an idea, a system, an industry, a hope, an argument in waiting.

Lately, it's getting even more interesting. Is it alive or is it dead? This all started recently at The Saguaro Seminar. In a nutshell, according to renowned Harvard social scientist Robert Putnam, diversity doesn't really build better communities. His studies show that the more ethnically and religiously diverse a community is, fewer people vote; less volunteer; fewer give to charity; and less work on projects for the good of the community.

But wait, there's more. Along with a decline in civic engagement, you get an increase in economic and creative innovation. This is actually kind of funny watching the conservatives and liberals switch sides of the diversity table.

For a really good summary of this new look at diversity, immigration, and social capital see Michael Jonas's story in The Boston Globe , "The Downside of Diversity" on August 5, 2007. Is this a new incovenient truth?

This Putnam guy is one of our nation's best when it comes to studying and understanding people. He's met with both Presidents Clinton and Bush. Putnam virtually coined the concept of "social capital" aka "social networks." His contention that when social networks of friends and associates are in good shape whether in church, around your home, at work, wherever - then you will have a greater number of voting citizens living in safer, healthier communities.

Hmmm....there's a key. Social networking. Wonder if that concept will ever take off in the 21st century?? In Dallas, The Williams Institute has some very interesting research on social capital and what makes a city healthy and whole.

Maybe the best (and shortest) read on Putnam's findings is by Daniel Henninger. See "The Death of Diversity" and make up your own mind.

So what's to be learned with all this new information? Things aren't always as they seem.

You Want Fries With That Mission?

Monday's Wall Street Journal had an interesting article about charities getting into the franchise business to raise some extra money. Profits on the Side told of some pretty amazing gains and some pretty big losses.

"Social franchising" is what they call it at Harvard Business School. Interesting is what I call it.

Good nonprofits need to be run like a good business. Different rules. Different motives. But you still owe it to everyone involved to run it efficiently and effectively.

To be competitive, you often need to think out of the box. Before you do that, remember to tend to the basics. That starts with your board.

If you're serious about opening a franchise for your nonprofit, do you have someone on your board who already has franchise experience? More than just the smell of French fries on their clothes?