“Why are people going to come here and not the other place,” was the question that haunted Michael F. Curtin, Jr., Chief Executive Officer of DC Central Kitchen when he used to run a restaurant.The same question drives him today as he seeks to build support for DCCK.With backgrounds in the hospitality industry, Curtin and the Founder and President of DCCK – Robert Egger – learned the basic values that are key to attracting supporters for their important mission, even in these tough times.
DCCK – “Combating hunger.Creating opportunity.” – provides a food recovery program that prepares and distributes 5,200 meals daily (mostly dinners) to hungry individuals at 12 shelters and dozens of transitional housing centers and social services agencies.DCCK also addresses the root causes of hunger with its Culinary Job Training Program, preparing unemployed, underemployed, previously incarcerated persons, and homeless adults for careers in the food service industry.
Listening to Curtin, and thinking about the multitude of nonprofits I visit day in and day out, and the donors I meet, the keys to successful fundraising are glaringly apparent:
Donors give to success:People, companies, and foundations give where they see good solutions and effective implementation.
People are focusing their giving: The economy is providing people the opportunity and excuse to narrow down their giving to the causes they care about most and the organizations that are most effective.(DCCK saw a spike in giving in December.)
The organizations that succeed are the ones that produce high quality services and programs….mediocre will not make it in this economy (recall Curtin’s question, “Why are people going to come here and not the other place?”
Curtin and Egger have also been driven to build a more sustainable revenue model increasing the fees for services portion of their organizational income.DCCK generates fees from businesses through its Fresh Start Catering Program.I can attest to having toured the most immaculate industrial kitchen I have ever seen, and to seeing scrumptious food, most of which is locally grown (not only fresher, but also at 33% of the cost).
The energy and vitality of the Center is palpable. Volunteers work side-by-side with graduates and students from the Culinary Jobs Training Program.Curtin says that the graduates are “empowerment billboards” for the Training Program students who can see what is possible.And since the volunteers are working under the leadership of experienced managers who are graduates of the Program, the volunteers (often high school and college students and business volunteers) are learning about the power of the DCCK model and its network of organizational partners.
DCCK also has a national network of college campus programs called Campus Kitchens.
Turns out that chugging down vast volumes of beer is actually not the way to turn on potential mates. In fact, it’s acts of kindness and altruism that will do the trick.
In three studies of more than 1,000 people, Dr. Tim Phillips and his fellow researchers at the University of Nottingham found that men and women placed a high level of importance on altruistic behavior in choosing a partner.Women rated altruism even higher than men as a sexually desirable trait in mates.The study was published in the British Journal of Psychology.
The “mate preference towards altruistic traits” (MPAT) scale was based on a matrix of the following nine items:
Volunteered to help out in a local hospital
Volunteered to help without pay on a week’s holiday for disabled people
Regularly helps an elderly neighbor
Ran the London Marathon to raise money for a good cause
Once dived into a river to save someone from drowning
Donates blood regularly
Climbed a tree to rescue a neighbor’s cat
Once cared for a stray dog injured by a car
Helped clear people away from a suspect package found in an airport
How does your sex appeal rate according to the MPAT scale?
“Where should our company invest our philanthropic dollars?Should we give more, smaller grants, or fewer, larger grants?Should we do employee matching gifts? Or only fund nonprofits that fit a company theme – a cause that we choose related to our company product or service? Should our company sponsor employee volunteerism?Should we encourage executives to serve on nonprofit boards?Should this only be for C-suite executives at our company and C-suite boards? Should we have a company policy to support board service philanthropically?If we move below the C-suite, how deep should we go, and what kinds of boards?”
These are the questions I hear from companies.
Based on my experience in the field, the answer is:
Create your company’s CSR strategy according to the brand and identity your CEO and board seek to establish in the global marketplace, and deliver meaningful CSR results with integrity.
Then
Drive all your philanthropic and volunteer resources for the most powerful impact you can have
Coordinate marketing and human resources, together with corporate philanthropy and social responsibility, so that everyone is driving towards the same goal
Report on your results in an annual CSR report in order to build momentum internally and gain the public relations advantage
For example, do you want your company associated with creativity, innovation, invention, leadership, or problem-solving? Perhaps you want your brand identified in particular with technology, conservation, energy, human rights, healthcare, education, or people (perhaps specifically women...or children)?More locally focused in each community where you have a presence, or nationally, or globally?
Once you decide what you want to accomplish, you have a number of powerful tools to use to have an impact and make a statement.These include philanthropic funds, including matching dollars (giving where your employees give) which companies find meaningful to employees as well as nonprofits and the community.You can also use your contributions, as well as best practices, to encourage and support the following four forms of volunteer service:
nonprofit board participation, which fosters professional and personal development for your executives and professionals in addition to being high-impact in advancing nonprofits and the community
management assistance projects – also good for professional and personal development, and can be valuable to nonprofits
hands-on group volunteering – great for team-building and company spirits
one-on-one volunteering (like tutoring and mentoring)
CSR goes beyond philanthropy and service, also encompassing the company’s environmental practices, human rights protections, employment and safety, ethical business practices, and effective board governance.All of these aspects of the business must be aligned under the direction and oversight of the CEO and board.And all of these elements profoundly affect your company’s image which directly affect shareholder value.
By being strategic about CSR, companies can leverage their good will to benefit themselves, their employees, and most of all the communities where their employees and customers live and work.Your company’s philanthropy and volunteer services are valuable resources.Use them strategically and meaningfully.It’s for everyone’s benefit.
Out of the 1.2 million nonprofits nationally, how would you choose your Top Ten?Are you looking for the most high-impact, sustainable, or innovative?Which issues are most important to you – the environment, education, poverty, healthcare, social justice, or the arts? Would you choose the Top Ten from your community, the nation, or the world?
These are important questions for businesses and individuals who want to make financial contributions and for people who want to volunteer their time.And as my readers know, the volunteer time I encourage smart entrepreneurs to invest in is nonprofit board time – helping nonprofits to envision their greater potential and then helping to create and achieve robust organizational revenue models for success.
Choosing your Top Ten nonprofits is very personal. Consider these points as you decide:
What the organization does – the mission and work has to be personally meaningful to you
The programs – they need to demonstrate their effectiveness in solving the problem
Caliber of the CEO – the CEO must be an expert and a highly effective leader
Caliber of the board – and especially the board chair/president – for an organization to do its best, the board should be engaged and supportive – and the board should include people from diverse backgrounds and perspectives
Budget – most nonprofit revenues are stressed right now; the question is whether there is core funding from a solid base, and whether there is active CEO and board involvement in building viable, new revenue opportunities – through philanthropy, or fees for services, or government sources.Even if that’s not the case, perhaps you can help if you are passionate about the mission.Just be aware of how challenging the situation is.
When choosing your top nonprofits, it’s good to use your business sense, but be sure to follow your heart.There is important work to be done and your passion will drive you.
Partnerships among nonprofits, and between for-profits and nonprofits, will be among the best innovations that are driven by this tough economy.The benefits include cost efficiencies, revenue opportunities for nonprofits, more sustainable nonprofit organizations, and better services for communities in addressing vital issues in conservation, education, healthcare, the arts, and economic development.
Partnerships need not be full scale organizational mergers.There is a spectrum of possibilities.Business people on nonprofit boards, entrepreneurial nonprofit executives, and foundation funders should explore the following opportunities for nonprofits they care about:
Share back office operations, space, and equipment: Examples include Blue Ridge Foundation New York, an innovative incubator founded by hedge fund investor John Griffin; BRFNY provides back office space and operations to all its grantees.The Atlas Performing Arts Center in DC, another great example, is home to a group of 13 diverse performing arts groups.
Create partnerships between nonprofits and for-profits: In NY, for every customer who switches to electronic billing, Con Edison is donating $1 to Trees New York’s tree planting fund. So Con Ed is providing an incentive for customers to collaborate with the company to reduce paper waste and lower greenhouse gas emissions by planting trees through a nonprofit partner.Con Edison also partners regionally with Global Learning and Observations to Benefit the Environment (GLOBE), an organization whose international model is built on partnerships.
Collaborate for greater impact through hub and spoke models: Food Bank for New York City provides free tax assistance through 12 community agencies in the 5 boroughs of New York involving volunteers from corporations and law schools, the City of NY, the IRS, and unions.
Merge nonprofit organizations strategically: In many cases, larger organizations are absorbing smaller nonprofits in order to ensure that core programs are sustained; multi-year funding assurances from key donors are important to seal the deal. For example, Northern Virginia Family Service assumed responsibility for services previously provided by the Center for Multicultural Human Services. Each year, NVFS helps more than 22,000 people find affordable housing, counseling and child care; access low-cost medical and dental services; utilize foster and respite care; participate in job training; benefit from trauma recovery; and more.
Build program collaborations among a multitude of partners for the greatest reach into the community: Relight New York, a program of Children for Children, partners with schools, businesses, nonprofits, and Mayor Bloomberg’s office in a large volunteerism campaign to switch homes and offices over to CFL light bulbs to conserve massive amounts of energy.
Consolidate the regional chapters of national organizations: Many national organizations are investing in more business-like national infrastructures and fewer, but more vital regional chapters that are strategically located – a model that is designed for cost efficiencies, more rigorous measurement and quality oversight, and better outcomes.
Economic pressures are stressing the nonprofit sector in delivering much needed services, but the pressures will also drive savvy funders, nonprofit boards and executives to pursue innovations, partnerships, and efficiencies.
P.S. Here’s a holiday tip: you can give your Valentine eco-friendly flowers and benefit The Nature Conservancy!
Jane Lang had a vision to rehab a decrepit site in Washington, D.C. that is now home to a diverse group of 13 nonprofit performing arts organizations that share offices as well as practice, performance, production, and lobby spaces.“Not only are there great cost-savings for the organizations, and better equipment,” according to Lang, founder and chair of the board, Atlas Performing Arts Center, “but it surprises me how little one discipline knew about the other and how they now look to each other and integrate their work – dance, theatre, choral, and symphonic orchestras.They have created cross-over audiences and built higher levels of attendance.The performing arts organizations are expanding their artistic vision, and audiences are appreciating different art forms.”
“In 2001, when I was looking for space for one small theater company where I was involved, I was shown the old Atlas movie house. The building looked quite awful and way too big. And it was on H Street in Washington, D.C., an area that had become a haven for crime and drugs after the 1968 riots,” recalls Lang. She also remembers her change of heart the next morning.“I woke up with the image of what could be done and simply charged forward. Today, not only is the Atlas a dynamic performing arts center, but also the hub of a vibrant new community with a dozen upscale restaurants, delis and bars.”
Here are five lessons from the Atlas experience for funders and nonprofits:
Vision and leadership: Jane Lang embarked on the Atlas project with a vision of what could be, and then she inspired and gathered other leaders around her to form a board of directors.Together, they engaged hundreds of donors and local foundations to share the vision and generate the support to achieve success.
Revenue model: Jane and the board created a multi-year plan to shift the revenue model to become more reliant on earned fees through rental income; today only half the budget comes from philanthropy and that portion will shrink a bit further.
Shared back offices: There are multiple benefits for the nonprofits that live at the Atlas, including saving costs by sharing space and equipment (better equipment, like color copiers); creating more exciting work in a shared environment; and building larger cross-over audiences.
Community revitalization: Atlas became a catalyst for community revitalization, stimulating new life on H Street with restaurants, bars, and cafes; recently, even new public transportation was added to create access. One recent highlight is that the Capitol Hill Ball was held at the Atlas for inauguration.
Neighborhood participation: The Atlas has become integral to the neighborhood, and residents are engaging and benefiting.For example, a senior resident is the Atlas’s house manager and she brings fellow senior citizens to volunteer as ushers and to attend events.And a local charter school participates in the Atlas’s dance programs to fulfill their physical education requirements.
You don’t have to look far to see where Jane found her inspiration. An attorney with her own law firm, Jane is the daughter of Eugene Lang, founder of the I Have a Dream Foundation.Big ideas, philanthropy, and tenacity run in the family.The I Have a Dream Foundation has spawned many imitators; it’s time for the Atlas to be imitated now as well.
“Our partners are developing as leaders while helping nonprofits to achieve greater results,” said Craig Medwick, Regional Managing Partner for Clifford Chance in the Americas.“Our attorneys are making serious, thoughtful commitments to organizations they care about.And we are investing in organizations that are helping to build healthier, more educated, and more sustainable communities.”
Two years ago, when the general economy began to sour and many corporate philanthropies tightened their belts, one of the world’s largest law firms -- Clifford Chance -- launched a strategic plan to enhance its corporate social responsibility efforts.The objective was to focus its U.S. philanthropic investments and efforts more purposefully to help advance corporate responsibility and leadership development.
Medwick was one of the chief architects of the plan. Based on what the firm has achieved since the plan was initiated, there’s a great deal that other companies can learn about leveraging dollars for greater impact.
Nearly 40 partners from its offices in New York and Washington, D.C. have joined global, national, and regional boards, often after spending months exploring a variety of options to determine where they can add value.Many of them have also stepped up into board leadership roles.
William Foote, Founder and CEO, Root Capital, comments that "Juan Morillo of CC has brought new perspectives and vitality to the board. His personal experience and professional expertise, and his firm's commitment make him a major asset in helping us move Root Capital to the next level." Root Capital is a nonprofit social investment fund that is pioneering finance for rural grassroots businesses in developing countries.
Ana Langer, M.D., CEO of EngenderHealth, reports that CC’s Wendy Wysong brings “a wealth of nonprofit board experience along with her firm’s commitment.Wendy is a strong advocate and a natural leader.”
In this challenging economy, businesses that invest their limited philanthropy and volunteer capital wisely will achieve multiple benefits in developing leaders, boards, and nonprofits for stronger communities.
Design partners John Nottingham and John Spirk thought so.Saving a beautiful old church and rehabbing it as a den of creativity, Nottingham and Spirk catalyzed community revitalization in a moribund neighborhood of Cleveland, Ohio. As an antidote to tossing out buildings and neighborhoods, “our firm salvaged and reinvented an old building to create an inspirational space for our team to work and our clients to visit,” says John Nottingham.
In the center rotunda, they use Herman Miller furniture components to create an interactive organic space.The lower level of the building, the former Sunday School, is a two-story space surrounded by a balcony. On the ground floor, Nottingham-Spirk Design houses its prototype construction machinery and prototype technicians. The engineers are located on the balcony, where they can keep their eyes on the prototypes being made below.
The hand-carved mahogany pipe organ is computer controlled and used to commemorate special occasions. It should be noted that Thomas Edison installed a pipe organ in his Menlo Park invention facility to help inspire creativity.
"Working within our repurposed space inspires our product and package designs to combine old and new functions resulting in entirely unique innovations, with an eye toward long term sustainability," explained Nottingham.See my accompanying post: “Cool Juice Display” to see one of NS’s latest inventions.
What household name brands would we recognize NS for? NS designed Sherwin-Williams’ all-plastic, recyclable paint container which replaced the old metal can which is often sent to landfills by retailers because of denting and rusting. And NS’s branding and packaging for Purell helped it to become the leading hand sanitizer.
In the spirit of social responsibility, NS’s building rehab also ignited a new wave of development activity in the surrounding neighborhoods that hasn't been seen in decades. Entrepreneurial startups as well established companies have taken advantage of NS’s 535 patented products which in turn have generated new jobs and sales growth. Combined sales of NS products exceed 30 billion dollars.
After a client complained that sales of their regional juice products were lagging because of poor placement in the back coolers of retail stores, John Nottingham and his product design group at Nottingham-Spirk Design set about creating a new way to display refrigerated products.
What they ended up inventing was a solid-state display that needs no freon or other gases and uses less energy than conventional coolers. The juice products can now be displayed near the checkout counter and the display does not require installation but simply needs a nearby plug. There is also no barrier between the customer and the product which gives it great impulse appeal.
With this breakthrough, the designers at NS foresee new opportunities for grocery merchandising. Complementary products like cheese and crackers don't need to be separated but could be displayed side by side on a shelf with a cooled section and non-cooled section. These modular solid state cooler displays could lessen the need for larger refrigerated chests using large compressors and freon gas.
John Nottingham attributes his group’s creativity and commitment to sustainability to the unique environment that the firm created.See my related post: “If Sustainability is the New Religion, Maybe it Belongs in Church.”
In today’s economy, engagement is the name of the game for corporate philanthropy. When a plethora of good causes is pounding down the doors for dollars, how does a corporate foundation decide where to give for the greatest good? American Express is tackling this dilemma through a variety of means: technology, promoting service and collaboration, and developing emerging leaders. The result? The company is working hand-in-hand with communities to advance community revitalization, environmental preservation, and economic development, along with other key issues.
Through online voting, AMEX invited the people of San Francisco and Chicago to select the sites the company would restore, preserve, and revitalize to reflect each city’s rich cultural history, drive tourism, and stimulate economic development. Through Partners in Preservation, a partnership with the National Trust for Historic Preservation, the company did the same for New Orleans, working with a community advisory group, and will announce yet another city in just a few weeks. Ongoing volunteer service continues the company’s engagement with the community. The company is also collaborating with the World Monuments Fund to preserve global sites, such as Dehli Heritage City in India and Mexico City’s Historic Center.
Launching the Nonprofit Leadership Academy, AMEX convened emerging leaders from 24 nonprofits nation-wide with the company’s highest ranking executives in 2008. The company has already planned two more of these week-long intensive leadership academies in 2009, bringing together cadres of next generation leaders from organizations addressing conservation, economic development, health and human services, arts and culture, education, and public policy, among others.
It’s no wonder that Timothy J. McClimon, President of the American Express Foundation, sought to deepen the company’s relationships with diverse community citizens and nonprofit leaders. He understands the challenges facing social enterprises and appreciates their value from his own personal experience. Tim headed up Second Stage Theatre in NYC, and previously the Inter-Arts Program at the National Endowment of the Arts in DC. With graduate degrees in law and counseling psychology, Tim also serves as Vice President, Corporate Social Responsibility at American Express
Personally involved in the Academy is Kenneth I. Chenault, the Chairman and CEO of American Express, who explains that “It's not the strongest or the most intelligent who survive, but those most adaptive to change. Over the past 10 years, the need for, and focus on, adaptability has accelerated.”
Leaders in corporate philanthropy are becoming more inventive and purposeful not only in leveraging their dollars for greater impact, but also in building stronger ties to nonprofits and communities through technology and personal engagement at all levels in the company.
