Big-Bang Changemaking: Is There a "Post-Fundraising" World Out There?
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Transcript of Big-Bang Changemaking: Is There a "Post-Fundraising" World Out There?
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BIG-BANG CHANGEMAKING
IS THERE A “POST-FUNDRAISING” WORLD OUT THERE?
BIG-BANG CHANGEMAKING
IS THERE A “POST-FUNDRAISING” WORLD OUT THERE?
Steve Goldberg
Author, Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress
Steve Goldberg
Author, Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress
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The Best & Worst of Nonprofit Times
$308 billion donated in 2008
Incredible social innovation
The Obama Administration understands social entrepreneurship & national service
The bad economy is killing nonprofits!
The very best social enterprises aren’t moving the needle of social change
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Moving the Needle?FOCUSFOCUS SERVED SERVED
PER YEARPER YEAR
TOTAL TOTAL NEED NEED
(MILLIONS)(MILLIONS)
% OF NEED % OF NEED SERVEDSERVED
BELLBELLOut-of-School
Time 8,000 10,800,000 0.07%
COLLEGE COLLEGE SUMMITSUMMIT
College Access 1,300 200,000 0.65%
JUMPSTARTJUMPSTARTSchool
Readiness 13,000 3,300,000 0.39%
RAISING A RAISING A READERREADER
Infants to 5-year olds 200,000 10,100,000 1.98%
TEACH FOR TEACH FOR AMERICAAMERICA
“Educational Inequity” 425,000 13,000,000 3.30%
YEAR UPYEAR UP“Disconnected
Youth” 350 3,800,000 0.09%
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Fundraising Recipe1. Build great relationships with lots
& lots of civic-minded people and/or a few really rich civic-minded people
2. Tell them really compelling stories about what you’re trying to do
3. Repeat over and over and over again forever ...
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Limits of FundraisingIncredibly time-consuming (which often leads to burnout)
Often doesn’t raise enough money
Can be short-term with lots of strings attached
Great for funding innovative start-ups; not so great for advancing social progress
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“American Dream Scorecard”
BETTERBETTER SAME OR SAME OR MIXEDMIXED WORSEWORSE
ECONOMIC ECONOMIC OPPORTUNITY OPPORTUNITY & SECURITY& SECURITY
1. FAMILY INCOME2. HOME
OWNERSHIP3. INCOME GAP BY
RACE
1. OVERALL POVERTY RATE2. CHILD POVERTY RATE3. DISTRIBUTION OF WEALTH4. AVE. OF NET ASSETS5. READINESS FOR RETIREMENT6. HOME OWNERSHIP7. ECONOMIC MOBILITY
EDUCATIONAL EDUCATIONAL OPPORTUNITY OPPORTUNITY
& & ACHIEVEMENTACHIEVEMENT
ACCESS TO COLLEGE
ACADEMIC SKILLS
1. GRADUATION RATES FROM PUBLIC SCHOOLS2. STANDARDIZED ACHIEVEMENT TEST SCORES3. MATH & SCIENCE SKILLS (COMPARED TO OTHER COUNTRIES)4. COLLEGE COMPLETION (BY INCOME LEVEL)5. COLLEGE MATRICULATION (COMPARED TO OTHER COUNTRIES)
PUBLIC PUBLIC HEALTH & HEALTH &
SAFETYSAFETY
1. INFANT MORTALITY
2. LIFE EXPECTANCY
3. SMOKING RATE
1. TEEN PARENTING RATES
2. ILLICIT DRUG USE
1. HEALTH INSURANCE2. CHILDREN LIVING WITH TWO PARENTS3. ASTHMA RATES4. OBESITY RATES5. POPULATION IN PRISON6. VIOLENT CRIME
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Fragmentation HappensBusiness financing is performance-based, so strong companies raise more money than weak companies
Nonprofit fundraising isn’t; donors don’t know who can make best use of funding
So philanthropists reduce the risk of donating to weak nonprofits by giving small donations to more organizations
Result: money is spread too thin; relentless fundraising; reduced social impact
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The Long Tail
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Venture Funding
BUSINESSBUSINESS NONPROFITNONPROFIT
START-UPSTART-UP FRIENDS & FAMILIES; SEED
FRIENDS & FAMILIES; SEED
MID-LIFEMID-LIFE VENTURE CAPITAL
VENTURE PHILANTHROPY
LATE-STAGELATE-STAGE GROWTH CAPITAL
???
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“Impact Index” (“IMPEX”)
VIRTUAL NONPROFIT STOCK MARKET
WHICH NONPROFITS ARE LIKELY TO HAVE THE MOST IMPACT?
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Questions?
Thanks!