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Pam Heck - Why Are You Participating in Rising Leaders?

Posted By Josh Hirsch, Wednesday, March 29, 2017
Updated: Thursday, December 29, 2016
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10 Reasons Why the 15% Charity Overhead Myth Prevents Social Change

Posted By Josh Hirsch, Friday, March 24, 2017
Updated: Saturday, March 18, 2017

This past year, Charity Intelligence (CI) defined the Top 10 Impact Charities of 2016. That three of the ten “impact charities” are food banks makes the whole notion of impact charity a national joke, albeit a very bleak one all the same. If there was ever a synonym for Band-Aid in the charitable world, a world constructed of mostly Band-Aids, the food bank would be that synonym. Why attempt meaningful social change when you can hand out dusty cans of pasta sauce for which some solid citizen paid retail price?

But perhaps it was their balance sheets that looked attractive to CI. After all, in 2016, that’s where charities essentially lived—on their balance sheets. Ask anyone on the street the one thing they know about what makes a deserving charity and they are likely to say it’s the one spending less on overhead. “Like, uh, 10 or 15 percent or something like that.”

Left unchallenged, the myth of the 15 percent means Canadian charities will lead the charge on absolutely nothing—not climate change, a cure for cancer or world hunger. And here are the ten reasons why:

  1. It makes board members stupid. The cost of overhead is often the only number many members of Boards of Directors care about when they look at financial reports, ignoring numbers that could give them a sense of how effective the charity is at fulfilling its mission.
  2. It makes charities stupid. Designing financial tools around measuring overhead and administration as priorities means you don’t get the reports you need to actually see how you’re doing in relation to your mission.
  3. It guarantees mismanagement among charities. A 15 percent cap on administration means essential resources for effective management—program evaluation, professional development and evaluation, strategic planning, long-term goal setting—go by the wayside as “administration.”
  4. It impedes progress on issues. When the criterion of a “good” charity is keeping a 15 percent limit on your administration, what happens to your success in making the world a better place?
  5. It keeps the people who work in the program area of the sector among the poorest paid people in the country. Fundraisers aside, the majority of people working in the nonprofit sector, like personal support workers, toil away at hourly rates of between $14 and $18. Not exactly McDonald’s wages, but having someone’s life in your hands is not exactly a Big Mac either.
  6. It makes charities liars. Charities and auditors everywhere bend over backwards to make sure their admin expenses don’t exceed the 15 percent, “hiding” perfectly justifiable expenses (in a sane world) in other line items so a charity doesn’t see what it’s actually spending money on.
  7. It institutionalizes inequity among organizations: $1 million is not always $1 million in the charitable sector. If 80 percent of your organization’s $1 million is from government and 10 percent comes from the United Way, the amount of money you have to raise is $100,000 and the resources you need to do that won’t break the bank. But if you get no government funding and are not a member of a United Way, your $1 million organization is dependent on a large number of small donations and the resources you need to generate that revenue are considerable, thus increasing “overhead.”
  8. It institutionalizes inequity. Period. When an organization has a smaller number of large donors as opposed to a large number of small donors, the process of administrating that organization takes substantially less resources. So if you are friends with big government, big institutions, and big money, your position of “good” charity is all but guaranteed. If not, then your designation as a “bad,” administratively heavy charity is also all but guaranteed.
  9. There is no threshold for risk. Risk-taking and experimentation with the world’s most intransigent problems should involve trying new things. Overhead caps prevent “wasting” money on things that may not work.
  10. It sets up the wrong criteria for project success. Evaluative measures on charity projects are often transactional as opposed to taking a mission-oriented view, i.e., $10,000 = # of workshops delivered, as opposed to $10,000 = movement toward ending hunger.
    What can be done?

    Stop talking about money all the time. You are on the earth to change the world. Talk about that.

    While you are at it, stop pandering to self-styled overseers like Charity Intelligence, who had their charitable status revoked in 2013 for failing to file proper CRA returns. The status later was reinstated when they made the same filings everyone else in the sector has to make.

    But if it were up to me, someone who has a job to do and who sees this asinine scenario play out every day? If it were up to me, you’d print out this column and distribute it at your next board meeting.

    Call it a report from the front line.

Original post can be found here.

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Nonprofits First partners with Varona Insights

Posted By Josh Hirsch, Thursday, March 23, 2017
Updated: Wednesday, March 22, 2017
Nonprofits First is proud to announce a partnership with Andre' Varona, IOM, CEO, Varona Insights, to enhance their membership program. Varona has extensive experience in Multi-Cultural Strategies and Community Relations for business and the non-profit sector.

Prior to building his own business marketing development firm, he served as CEO of The Hispanic Chamber of Commerce Palm Beach County and VP of Membership & Sponsorship Sales for The former Northern Palm Beach County Chamber of Commerce. He currently sits on the Discover The Palm Beaches
(DTPB) Board of Directors, is a 2008 graduate of The US Chamber of Commerce Institute of Organizational Management(IOM) Southeast Region and served on The Florida Association of Chamber Professionals (FACP) Board of Directors.

Varona has a history of service in the Non-Profit and business communities utilizing Leadership, Planning, Advocacy. "I believe passionately in engaging one's self in the community that you live through connecting, collaborating and mentoring to impact our quality of life and effect change."

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Nonprofit Leaders Respond to White House Spending Plan

Posted By Josh Hirsch, Wednesday, March 22, 2017

Nonprofit leaders nationwide are reacting to the outline of the administration’s proposed budget. The Boston Globe and The Wall Street Journal each published lists of programs that would lose all their funding.

Arts: The Chronicle of Higher Education reports that the proposal to eliminate funding for the National Endowment for the Arts and the National Endowment for the Humanities “may not translate into any policy change,” as many members of Congress are balking. In The New York Times and The Wall Street Journal, Patricia Harrison, president of the Corporation for Public Broadcasting, predicted “the collapse of the public media system itself” if her agency’s budget is zeroed out. NPR and Public Broadcasting System affiliates in small markets rely heavily on federal funding.

Education: Conservatives are hailing the proposed downsizing of the U.S. Department of Education and the shift of funds to charter schools, private-school vouchers, and other forms of school choice, according to The Washington Post. A big fight could loom over the proposal to eliminate $1.2 billion in grants to after-school and summer programs run by churches, nonprofits, and schools; the programs serve 1.6 million children, but the administration says there’s no evidence they are effective.

Environment and Energy: What critics are calling a “scorched-earth budget” for the Environmental Protection Agency takes aim at climate-change research, grants for energy technologies, and coastal- and marine-management programs, according to Bloomberg. Regional environmental advocates are worried about the proposed elimination of programs to clean up the Great Lakes (Detroit Free Press) and the Chesapeake Bay (The Washington Post). The Wall Street Journal reports that Republicans in Congress are opposed to the Great Lakes move.

Foreign Aid: Politico describes a “furious, diverse and largely united cast of critics” of the proposal to reduce State Department spending and American international assistance by 28 percent. Secretary of State Rex Tillerson said the previous spending levels are "simply not sustainable," according to the BBC.

Science and Medicine: Leaders in these fields are warning that proposed cuts could threaten the country’s pre-eminence in science and technology, according to The Washington Post. The Associated Press reports that the administration’s plan would roll funding at the National Institutes for Health back to 2003 levels; the only program targeted specifically so far focuses on global health.

Rural and Urban Poor: The Boston Globe analyzes how proposed cuts would affect rural areas, while The New York Times looks at what could happen in inner cities. A Washington Post analysis concludes that low-income Americans will lose help “on virtually all fronts, including affordable housing, banking, weatherizing homes, job training, paying home heating oil bills, and obtaining legal counsel in civil matters.”

Original post can be found here.

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Tyrina Pinkney - Why are you participating in Rising Leaders?

Posted By Josh Hirsch, Wednesday, March 22, 2017
Updated: Thursday, December 29, 2016
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