power Steering: All About Crossroads '09
August 2009
- Glimpses of the Silver Lining
- What "Strength in Numbers" Means to Me
- 4 Sayings in Search of a Conference
- And Now for Something Different About Nonprofits and the Economy
- Nonprofit of the Month: PeopleFund
Glimpses of the Silver Lining
By Matt Kouri, Greenlights
So, as we all prepare for the biggest nonprofit gathering in Central Texas this year, I have some good news and some bad news to share. Let’s get the bad news out of the way first (sort of like choking down your peas so you can enjoy your mac and cheese uninterrupted and unfettered).
Nonprofits like yours in this community are facing a number of strategic disadvantages, especially during this recession. Two recent Greenlights studies show that we do in fact have more than our fair share of nonprofits competing for less than our fair share of donor dollars (learn more by attending the Do We Have Too Many Nonprofits? Crossroads session). The studies also show that our nonprofits have insufficient cash reserves and have experienced significant drops in giving over the last 12 months, all while the demand and need for our services has shot up. And maybe the most troubling statistic of all is that, ever the optimists, most of us think the next 12 months will bring the same or increased levels of funding from government and foundation sources. That hope, we believe, is not likely to become reality.
So where is the good news, you might ask? There’s plenty, if you are ready to be challenged and to think a little differently. More than ever, the opportunities for innovation and creative models for service delivery are ripe for the picking. We are seeing new ideas flourish, boards becoming more engaged than ever, and donors giving in new and exciting ways. In addition, the recent Greenlights study shows that many of you are looking to partnering, sharing services, or even merging with peer nonprofits as a means to stretch your resources and increase your impact. More than ever, nonprofits are becoming open to shedding self-interest, control, pride, and less-than-effective delivery models in favor of collaborating with other nonprofits to do what is best for our constituents. That is truly exciting.
This year’s Crossroads Conference is all about Strength in Numbers, which means, in part, embracing collaboration as more than just a warm and fuzzy nonprofit ideal. At Greenlights, we believe Strategic Collaboration is a critical business success factor, especially in times like these . So what is Strategic Collaboration exactly? We believe it occurs when…
Two or more organizations…
work together in a meaningful, well-defined, and deliberate manner…
by investing time, energy, and resources…
to accomplish a set of shared objectives…
that are mutually beneficial to advancing the missions of the organizations involved, and…
that are more likely to be achieved together than alone.
Most nonprofits, by the nature of our business, will continually struggle with insufficient resources to meet the need for our services. Strategic Collaboration can be a way to supplement your lack of resources with those of a strategic partner, by which we interweave ourselves to strengthen the safety net in our community and fortify the very fabric of our culture.
By attending this year’s conference, you’ll have many opportunities to further explore these concepts (by attending the 1+1=3 Crossroads session) and even to find and launch new collaborations during the conference (see the Crossroads Resource Swap). Now is not the time to let a set of overwhelming and disheartening statistics keep us down. Now is the time for courage and creativity in the face of challenges. Will you join us at this year’s conference and add your Strength to our Numbers?
What “Strength in Numbers” Means to Me
By Alexis Terry, BoardSource
Nametag?
Check.
Program?
Check.
Paper and pen?
Check and check.
Diversity?
Diversity?!
I confess: When I walk into conference workshops or take my seat in nonprofit boardrooms, I survey the landscape to see if there are other “people like me.” I cannot tell you how many times I am the only person of color or the only “next generation” nonprofit professional at the board table or conference roundtable where people turn to me to answer the “technology” question or to “represent” a community and speak on behalf of my race or generation. I wonder if that would still happen if I pulled out my Samsung cell phone circa 2001 (yes, seriously) amidst a sea of iPhones and noted that I barely know how to send text messages, let alone use Twitter, to connect to my network. I mean, my “homies.” Regardless, my seesawing emotions when I walk into these situations help me to better connect one-on-one with others and to not take for granted solidarity and strength in numbers. Theirs. Mine. Yours.
For me, “Strength in Numbers” is a rallying cry for discussing, and getting the sector one step closer to solving, the diversity dilemma: Why is it that nonprofits that want to embrace diversity often find it so far out of reach? What holds us back from achieving the level of diversity we desire? Is there a formula for success when it comes to diversity and inclusion?
At this conference, many of us will discover those small changes that can make a big difference. Perhaps instead of implementing diversity on the fly, we will learn how to define what it is, what it isn’t, and why it matters to our organizations. For many organizations, diversity is a numbers game that means adding volunteers who look different and who bring different skill sets and perspectives to the table. For current leaders, this may mean subtracting myths of superiority or assumptions and stereotypes about new constituency groups. For potential volunteer candidates who are emerging leaders in their fields, but are not well-known in local nonprofit circles and are unsure of how to get on their radar screens, this conference is an opportunity to multiply your network.
While acknowledging that just about every leadership decision we make has pluses and minuses (or pros and cons), let us take advantage of “Strength in Numbers” to rework decision-making equations and recharge our imaginations for the better. Let’s divide into small groups to discuss new recruitment methods and resources so that both current and emerging leaders can no longer say “I don’t know where to find them.”
Just think: Someday our individual and collective efforts will equalize. One day, no one will be able to count the number of times when they are the “only” in rooms where there are topics of great importance in nonprofit leadership and governance being discussed. Until then, I will spend my nonprofit career and my-so-called-board-life striving for strength in numbers.
4 Sayings in Search of a Conference
By Tara Kirkland, Greenlights
I’m a big fan of aphorisms, “words to live by,” and just plain colorful sayings. Just ask my godson Manoa, who finally pointed out, after hearing “off like a herd of turtles” one too many times, that I sure like to repeat things.
I’m also a big fan of the Crossroads Conference. Since this year’s theme is Strength in Numbers, I’ve decided I can employ numerous sayings to illustrate the value of this particular Greenlights gathering.
Ah, Crossroads. I love the energy that comes with putting hundreds of dedicated nonprofiteers in one place at one time, the enthusiasm of the participants and presenters, and most of all the stories of serendipitous connections that nonprofits often make at Crossroads. Which brings me (as many things do) to Woody Allen.
Aphorism # 1: Eighty percent of success is showing up (Woody Allen). Over the past four years, many folks have shared the meaningful professional connection they made, individually or on behalf of their nonprofit organization, by simply networking and chatting at Crossroads. New partnerships have been forged, deals have been struck, and terrific jobs, contracts or volunteer opportunities have been landed at Crossroads past. It pays to take a break from the daily grind and just show up!
Speaking of the daily grind, I’ve observed that another key benefit of Crossroads is simply the excuse it provides to get out of the office and take a break from toiling over the same set of tasks and challenges that must be faced day in and day out. Ergo, aphorism #2.
Aphorism # 2: Insanity is doing the same thing over and over and expecting to get different results (Albert Einstein, or anonymous). Struggling to figure out a tough issue on your board, within your work team, coordinating volunteers, or managing staff? Sometimes what you’re facing calls for a fresh perspective, a change of scenery and a chance to reflect on the problem in a different way. Check out the variety of sessions on offer at Crossroads, and learn new approaches to that seemingly intractable problem.
Speaking of new approaches, I’m really excited about our new Crossroads Resource Swap. We get so many calls and emails from both sides of this nonprofit equation – those looking to make a donation of equipment, share space, or volunteer expertise, and those in need of such resources. Enter the Resource Swap, and aphorism #3!
Aphorism #3: Luck is what happens when preparation meets opportunity (attributed to both Seneca and Tony Robbins, bizarrely). It could be that those who benefit most from Crossroads are those who know what they need and are thus well-prepared to capitalize on the opportunities that almost inevitably arise.
If you’re a nonprofit, come to Crossroads ready to post your resource needs, as well as what you’ve got to share, at the Resource Swap. No need is too small, or off the wall! If you’re someone looking to volunteer, donate something tangible from your business, say, or get more involved in the sector, come prepared to say what resource you’d like to offer up. We’ll put the two together and watch the magic.
Three down, one to go. I could do worse than Benjamin Franklin as my closer.
Aphorism #4: We must all hang together or assuredly we shall all hang separately (Benjamin Franklin). So said Mr. Franklin at the signing of the Declaration of Independence. Perhaps more now than in recent years, Crossroads ‘09 represents a significant opportunity to connect with one another and to share innovative and strategic concepts and practices that are working, right here and right now, in our field. I know of so many talented colleagues in the for-profit and nonprofit sectors who have been laid off over the past year, and nonprofits struggling to stay mission-focused with less capacity as a result of this economic downturn. There are also nonprofits and individuals who have seized this opportunity to creatively move in new directions.
There really is strength in numbers. Come. Connect. Conspire together at Crossroads!
And Now for Something Different About Nonprofits and the Economy
By Jan Masaoka, Blue Avocado
Reprinted from Blue Avocado, January 15, 2009 issue
Unhappy New Year! . . . as the nonprofit chorus seems to be singing. As if we don't need more troubles on top of the ultra-negative projections about the economy, the advice about what nonprofits should do is depressingly empty. Whenever we see something like "Fundraising in Challenging Times," we feel compelled to read it: What if the magic answer's here?! But after reading these articles and hearing these speeches, we feel, well, unsatisfied.
Scanning dozens of "what to do" lists recently, their lack of nutrition seems to fall into three groups. A lot of the advice is too abstract and even pious: "Focus on the mission" or "Be strategic." I'm reminded of a nonprofit exec from the for-profit sector who reflected that she had given out such advice as a board member and then, when receiving it as an executive director, couldn't believe how obnoxious it was. Other suggestions such as, "Monitor expenses closely," and "Delay the start of capital projects" are good advice but kind of "duh." And then there's the good advice (like "Diversify your revenue streams") that's good advice the same way "lose weight" and "achieve inner peace" are good advice: the reason we aren't doing it isn't because it hadn't occurred to us.
As is too often the case, the advice from the philanthropic-consultant industrial complex is enough to make a person depressed or even angry. I heard a well-known nonprofit guru tell an audience, "And when we were really stuck about what to do, I picked up the phone and called my friend Al Gore." I felt like throwing a shoe at him! How is this a replicable, usable strategy?
Here are four ideas that may or may not be better than the others, but at least you may not have heard them before:
1. Declare an emergency. When people have permission to think and act out of the normal grooves, they can be bolder, more creative, energized, or at least more ready to accept changes. So say it out loud: "We are in an emergency period (or we are going into an emergency period). Our funding looks okay through the next four months, but there's a good shot we'll get some bad news starting then. We need to start making changes and coming up with some contingency plans that go beyond what we've done before." An emergency doesn't mean people should panic . . . an emergency means considering the bold and wacky ideas that are either brand new or used to be off the table.
2. Schedule worrying for later. Your nonprofit may be on a growth curve, and/or you have looked at your revenue projections and things are okay. Don't feel guilty if you aren't worrying just because everyone else is. And for many people, it's smarter not to make decisions until, for instance, you hear from the county agency that funds you or you see what the February dinner brings in. Instead of worrying, try a few scenario exercises: "Let's imagine that by next quarter we've heard that our biggest grant won't be renewed. What will we wish we had done three months before?"
3. Do less with less. Of course there is more need, more demand, and we probably have less money. And we love the gritty heartfelt nature of the cry, "We need to do more with less!" Pause. But it's not only unsustainable, it probably means you will be able to do even less in the future. If a program's funding has been cut by 30%, you may need to do 30% less. The best decision may be to be open fewer days a week, hold fewer performances, or stop taking children over 5. On the other hand, working harder might be necessary, at least for awhile, but only if it's to get to a different business model.
4. Ask for help, even if you don't know what would help. Yes, I'm talking about you executive directors. Especially you. As an ED watching the gruesome implosion of a nearby nonprofit, I once said to a fellow ED, "There but for the grace of God go we." She disagreed: "That wouldn't happen to us. We would ask for help." I realized that as executives we only like to tell the board about a problem if we already have a solution in mind. It's much harder to go and say, "Help. I don't know what to do."
5. Call a community summit on your behalf, and see if they can support you. In the end, we can only do what our constituents will support us to do. A near-broke community center we know called together their funders, friends, and community leaders and laid out their situation. In effect they said, "We know we've made mistakes and that we're still flawed. If you all think we're worth saving, we need you to save us now. If you - our constituencies - can't or won't step in, we can't do it on our own. And now we're going to leave the room so you can discuss what you can do or can't do to help us."
A colleague once told me his "Four Commandments":
a) Show up.
b) Pay attention.
c) Do your best.
d) Let go.
What more can any of us do, really? And it will be enough, and we will prevail.
Nonprofit of the Month: PeopleFund
PeopleFund is a nonprofit organization that creates economic opportunity for individuals, businesses, and families throughout Central Texas. Greenlights is lucky to have them as one of our presenters at the 8th Annual Crossroads Conference, and is pleased to highlight them in this issue of Power Steering as the Nonprofit of the Month.
PeopleFund started in 1994 as a community loan program for small businesses, but has since grown and branched out into other services. Today, the nonprofit consists of three primary programs: its core loan program, advocacy work, and an affordable housing program called PeopleTrust. The loan program focuses on small businesses and nonprofit organizations that may not be served by mainstream financial institutions for a variety of reasons. PeopleFund acts as their “training wheels,” providing them with both the capital and the training to help them flourish.
PeopleFund takes pride in its diversified portfolio which includes 20% nonprofit borrowers and 67% ethnic minority borrowers. Their lending success is a direct result of a hands-on approach and dedication to one-on-one client interaction. The loan closing is just the beginning of the services offered to clients. In addition to capital and training, PeopleFund offers a host of free services, such as free or reduced-price legal, marketing, and accounting services.
Several years ago, PeopleFund noticed a growing need for small businesses (and others in the community) to have access to information about the economic issues that affected them, and so they became advocates for a range of issues affecting economic opportunity in the Greater Austin region. By creating events such as the Conference on Economic Opportunity (formerly the East Austin Economic Summit), which is expanding its focus this year to include all of Central Texas, and the PeopleTalk Speaker Series, where nationally-renowned speakers are brought in to address topics of economic interest and promote ideas that are being used in other parts of the country, PeopleFund continues to engage community leaders, business owners, elected officials, and visionary thinkers in a dynamic dialogue about economic opportunities in the region.
In 2007, PeopleFund added PeopleTrust – affordable housing through community land trusts. They contracted with Catellus and the Mueller Foundation to manage the affordable housing program at the Mueller Airport redevelopment; so far, they have closed on over 125 affordable homes as part of that project.
At this year’s Crossroads Conference, Brad White and Jaime Noyola from PeopleFund will be presenting the session Mission-Critical Finances: Real Life Strategies for Budgeting and Financial Management in Uncertain Times. In this session, they will explain the reasons nonprofits should and, more importantly, should not take on debt all while improving the nonprofit’s financial structure. They will focus on the importance of running a nonprofit as a business by striving to continually build up net assets, discuss the advantages of earned income versus traditional contributed income business models, and provide attendees with tools to create their own predictive grant pipeline. To learn about all this and more, attend Mission-Critical Finances at the Crossroads Conference on September 24th.
Despite the current negative economic climate, PeopleFund is stepping up to plate. Banks and other businesses have stopped or greatly scaled back on giving loans, but PeopleFund is still here to help nonprofits and other small businesses become strong and succeed.