In 2011 when I first read Dan Pallotta's book, Uncharitable, I created a concept map to outline the chapters. After his TED talk in spring 2013 I updated it with links to places on the Internet where this is being discussed. After attending a Chicago Philanthropy Club meeting today where this was discussed, and after participating in a Philanthropy MOOC where this is being discussed, I updated it again.
This time I added a recommendation that this discussion be broken into sub-sections, based on the topics Pallotta listed in his TED talk. These are shown in the graphics below and in the concept map. When lots of people are talking about these issues we have too many different conversations going at once. By breaking this down into sub topics, perhaps we can gain some greater understanding of the problem and potentially move toward some solutions.
However, I want to go a step further. I think that when discussing overhead and the issues Pallotta is talking about we should break into sub groups so we are framing the discussion around specific types and sizes of non profit and social benefit organizations. Within each of the pie chart categories we should talk about organizations with budgets under $500,000, budgets under $1 million, budgets under $5 million, and organizations larger than $5 million. Others might suggest different budget sized, but the point is, small organizations don't pay salaries of $100,000 or larger or have departments doing fund raising, marketing, human resources, etc. In many cases one or two people do all of these jobs.
In addition, I think it's important to talk about where the charity is located. It costs more to operate in a big city than it does to operate in a smaller community or rural area. Different types of social services have different organizational strategies for achieving their mission. Some need to rent or own space. Others can get donated space. All of these factors make the topic of compensation, talent, advertising and marketing, etc. have different meaning when applied to different types of organizations and locations.
Finally, when there are 30 or more people in a room it's almost impossible to give everyone a chance to talk, or to express complex ideas that outline a person's understanding of this problem, or their ideas for a solution. I've been writing about MOOCs where 500 to 1500 people are given the opportunity to express their ideas in organized discussions that take place on the Internet and stretch over a period of weeks. One taking place right now is hosted by the Learning By Giving Foundation, headed by members of Warren Buffett's family. I think that these types of on-line communities can draw together a much larger group of people than we can get together in any conference, and can give everyone a chance to talk. I think they can build in facilitation, network analysis, participation mapping, and do much more to help people who share a passion for the same cause to connect and innovate ways to solve the challenges Dan Pallotta raises. Maybe the solutions won't be what Dan is proposing. Maybe they will be ideas we never would have heard about if we did not make it possible for people who have no public status, not wealth or celebrity power, no elected position, etc. to express ideas that they have researched or developed through their own experiences.
If you're already hosting this type of discussion please post a link in the comments section so I can join you and the others who read this blog can also join you.
Wednesday, August 07, 2013
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Here's a follow up article to the TED talk, from the Huffington Post. http://www.huffingtonpost.com/dan-pallotta/charity-fundraising-ted-talk_b_3957550.html
Here's a SSIR article that is relevant to this conversation. http://www.ssireview.org/blog/entry/transforming_our_anti_social_sector?goback=.gde_2730249_member_5838752899563270145
Here's another SSIR article, showing how one non profit launched an IPO to raise capital. This is an idea that may provide a path to follow. http://www.ssireview.org/blog/entry/the_new_nonprofit_ipo
Here is another article, written by Linda Spencer, calling for new thinking about how social purpose organizations are supported. http://lnspencer.wordpress.com/2014/04/03/yes-end-non-profits-and-support-social-purpose-organizations/
Here's a list of additional recommended reading. http://ideas.ted.com/2014/07/07/rethink-the-way-we-run-charities-a-useful-reading-list/
Here's a 2014 article following Pallotta talk in North Carolina. http://www.newsobserver.com/2014/09/27/4180678/doing-better-nc-nonprofit-sector.html
Here's a 2015 blog article that focuses on the costs of not paying decent wages to people in non profit organizations. http://wildwomanfundraising.com/what-happens-when-you-dont-pay-a-living-wage/?hvid=4KESoF
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