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Three Things Funders Should Ask Nonprofits

Social Velocity Nov 1, 2018
This article is deemed a must-read by one or more of our expert collaborators.
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Giving Compass’ Take:

• Nell Edgington at Social Velocity lists three questions that she would like to see funders ask their grantees to help align goals and improve communication.

• How can we foster more open and honest conversations about organizational sustainability in general? These questions are a start, but the discussion shouldn’t end there.

• Here’s an argument for letting nonprofits embrace failure on the path to innovation. 


I think we can all agree that most philanthropists truly want to be helpful to the nonprofit recipients of their dollars. However, because of the inherent power imbalance, it is often challenging, if not impossible, for a funder and a grantee to have a candid conversation about what it will really take to achieve the social change that they both seek.

So here are some questions that funders, who hope to help their most beloved grantees achieve their mission, can employ:

  1. What holds you back?  Instead of pressuring nonprofit leaders to grow, funders should ask about the capacity constraints that are holding those nonprofits back. And once a nonprofit leader reveals what those constraints are, funders and nonprofit leaders together should brainstorm how to overcome those hurdles, with capacity capital.
  2. What would it really cost to achieve your long-term goals? Funders should encourage the leaders of the nonprofits they fund to take the longview (perhaps starting with a Theory of Change), and to include ALL the costs (program, infrastructure, reserves, staffing and systems) necessary to get there.
  3. What other funders or influencers can we introduce you to? Instead of being overly protective of their desirable network, funders should actively make connections for those nonprofits that they want to succeed.

The only way we are going to move beyond the power dynamic and an under-resourced nonprofit sector is if funders and nonprofit leaders have more open and honest conversations about what it will really take to move social change forward. So get talking.

Read full article about what funders should ask nonprofits by Nell Edgington at Social Velocity.

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If you are looking for more articles and resources for Impact Philanthropy, take a look at these Giving Compass selections related to impact giving and Impact Philanthropy.

  • This article is deemed a must-read by one or more of our expert collaborators.
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    Why is Cultural Philanthropy Getting Less Equitable?

    Giving Compass' Take: • Helicon Collaborative examines why funders do not provide equitable funding for cultural philanthropy and instead reinforce existing hierarchies.  • What are some ways that donors can improve cultural philanthropy? What is your role in closing these gaps?  • Read more about how arts funding adapts to changing environments. Growing numbers of leaders in the cultural sector are seriously concerned about issues of equity, diversity and inclusion. In recent years, arts foundations, cultural institutions, arts service organizations and others have launched a wide variety of efforts to address these concerns. Yet the distribution of cultural funding is getting less equitable. Why is this, and what is the fix? To understand why the trend line is going in the wrong direction, we must first acknowledge that the causes of our current situation are deeply rooted in the origins and design of our nonprofit arts sector itself, which sprung from Western European cultural values and fine arts traditions, and was deliberately structured to preserve them. Larger social and economic systems, within which the nonprofit cultural system is embedded, are relevant here as well: structural racism, class and geographic bias, and the increasing concentration of wealth in the hands of a very few have made norms in the cultural sector particularly difficult to change. Achieving greater fairness will take greater understanding of the systemic nature of the problems as well as strategic, persistent effort to unseat these tenaciously rooted forces. The various foundation initiatives to address equity that we highlighted in the first post are important to both expand and accelerate. This includes foundations’ self-education and training on racism and bias; efforts to diversify foundation boards and staff; new funding for fellowships, presenting programs, exhibitions and other public programs that support a broader array of artists and cultural traditions; and commissioning research that illuminates inequities in the field and their consequences. Setting explicit goals for change. For arts foundations, and cultural organizations as well, change starts by articulating specific goals, and making explicit plans to reach them. Engaging wealthy donors to address equity with their funding. Many wealthy individuals may be inspired by the opportunity to exert leadership in addressing our widening social divides through demonstrating more inclusive cultural philanthropy themselves. Committing to collaborative action. Long-term change in the distribution of arts funding requires sustained effort at local levels. By looking at the structural nature of the issue, identifying shared goals for change and mobilizing the resources of multiple entities, including public and private funding sources, local coalitions can shift funding patterns in a systemic and long-term way. Money is important, but this isn’t just about money. The inequities reported here will continue to widen unless there is a meaningful adjustment in funders’ thinking about the role of art and culture in our communities, and a values shift that stops privileging the few at the expense of the many. Read the full article about cultural philanthropy from the Helicon Collaborative at Medium.


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