The Best Kind of Help

In comparison to foundations, venture philanthropists offer applied guidance to those nonprofits or causes they are supporting.  Venture philanthropy seems to take a more hands on approach to the act of donation.   Venture philanthropists not only state their expectations for what nonprofits are to accomplish with their funds but also state their intentions for their involvement in the nonprofit organizations and actively follow through.  The good venture capitalists seek innovative nonprofits and determine the best ways to support their sustainability.  Foundations typically donate their funds and state their expectations for organizational accomplishment by the end of their granting period but do not enter into the organization offering their own expertise.  One might liken this comparison to the teacher who offers you, their venture, detailed feedback on an assignment to the teacher who merely gives you the grade without further explanation.

I find this relation quite timely in my reflection on my last four years spent at this university.  As I am getting ready to graduate in less than two weeks, I find myself not only checking off the days on my calendar but also thinking about all the advisors who got me to this juncture.  In looking back, those professors and other guiding forces who helped me the most were those who got directly involved in my academic endeavors.   These mentors pushed me in directions I could not have identified for myself.  They had vision for me where I had blinders.  They were willing to take a risk with me and offer me their resources even though that meant more work on their part.  They were concerned about my longevity and were willing to expend their energy to keep me afloat.  They truly offered me their expertise and not just a GPA booster.

I see this as how venture philanthropists work.  They get involved and offer the organization a perspective that they may not be able to see through their own lens.  This approach taps the often-unattainable resources attributed to donors and links them to the needs of the nonprofit organization.

Much appreciation to all those who invested in me!

Nonprofit Networking

As foundation wealth and grant making are highly concentrated, what are the implications for the wealthy elite for disseminating funds to nonprofits?  I would assume that the money given may end up concentrated in the nonprofits closely aligned with foundations’ values and belief systems.  Which emphasizes how crucial nonprofit networking is.  If a nonprofit is relatively unknown the nonprofit will face many challenges.  Once one high profile donor recognizes the importance of a nonprofit it is likely that the nonprofit will emerge on the donor network.   This implies that nonprofits receiving foundation and grant making funds are highly concentrated as well.  Competition is fierce in the nonprofit realm so how do we ensure that funding is distributed equitably?

One way may be through organizations (nonprofit and otherwise) that offer consultation to potential donors.  On Wednesday Matt Geschke mentioned working with an organization that helps celebrities find nonprofits that are worthy of their funds.  From my understanding an organization like this is designed to help celebrities and other high profile people negotiate the hoards of nonprofits in existence today.  It is designed to help wealthy individuals find nonprofits that embody their interests and are revered.  This consultation practice seemingly prevents donors from blowing large sums of money on nonprofits that are not equipped to handle such an influx of funds for whatever reason.  I really like this idea.  I feel that a lot of people who have the money to make large donations often do not do so because they are fearful of donating to an organization that will not manage their funds well.  Additionally, this type of nonprofit/celebrity pairing business is a way for people to get involved and help potential donors select agencies to receive their funds.  In essence, it affords the common woman an opportunity to vicariously participate in philanthropic giving.

Another way for smaller nonprofits to gain access to large foundation wealth and grant making sources may be through leveraging.  Foundations today want to donate to organizations that are able to maximize their return on investment. Essentially this means they are looking for the biggest bang for their buck.  I would guess that nonprofits might be able to gain access to these large fortunes through the process of leveraging.  This might mean running a fundraising campaign that aims to amass funds from several different sources, one being a large foundation.  If the campaign is managed successfully and the funds generated are used efficiently and effectively and those gains are measured through evaluation, it is likely that those donors will donate again.  This may further pique the interest of the foundation as they have witnessed what great impact the nonprofit can have with their funds.  Perhaps then, the nonprofit will be able to seek the foundations support as the sole funder of another venture.

Scattered Thoughts on International Nonprofits

I can’t help but think that much of international nonprofit work is based on the assumption that the rest of the world needs our assistance.  As the world’s “superpower” the United States and its people are always swooping in on valiant aircrafts to save the day.  We seem to have this historic mentality that we know what’s up and what’s best.  But as a lot of other nation’s issues are becoming our issues maybe this is not as ego-driven of an act as I originally thought.  A recent change in international nonprofit focus is now resulting in the emphasis on transnational problems (178).  One might speculate that we as a world are realizing that these issues (HIV, global warming, etc) are not exclusive to one nation and the developed world cannot remain immune.   These international nonprofits and governments are now recognizing that we are not only just citizens of our local community but also world citizens.  This makes everyone our neighbor.

But now I ask, “What about cultural competency?”  Are these international organizations offering services that will be sustainable once the scaffolding of the nonprofit has been removed? What happens when that valiant aircraft evacuates? O’Neill notes that there has been a change in focus from “‘implementing’ to ‘enabling’, from direct assistance to capacity building for indigenous nongovernmental organizations” (177).  This is important because if a program is implemented in a way that encourages dependence essentially a new need is created.  The goal of international nonprofits must be to promote self-sufficiency.

Interestingly, a lot of the practices that we are helping start up abroad have not served the American public well.  Something that comes to mind is the big business agricultural practice in the United States.  These practices are not sustainable in the United States so why would they be abroad?  It is crucial for nonprofits to adapt their practices to the social, political and cultural climate of their constituents.   And apparently nonprofits overseas are beginning to do so more and more.  O’Neill emphasizes that international organizations are becoming focused on incorporating “bottom up” and indigenous practices into their services and are less determined by their funders.

This brings me to the effect religious organizations have on the international nonprofit scene.  Many relief agencies are inspired to help by religiously based mandates (173).  Is this to say that they are offering their services internationally to basically gain salvation points? Are their practices more determined by their doctrine of religious beliefs than the needs of those they are aiming to serve? Although that M.O. may not be written into the organization’s articles of incorporation I am sure that it appears on the agenda of their weekly staff meeting.  Is this missionary mentality effective?

And this concludes my scattered thoughts on and ineffectual analysis of international nonprofits.