Philanthropy

There is an electric feeling in the air and a sense of optimism that feels so fresh - as though we’ve finally sloughed off the woolly, fear-laden misery of the last eight years.  I would say it feels like spring, but there is snow on the ground. 

Last night’s victory by Barak Obama was historic - a clear example that America is empowered to choose its future direction with Americans setting the course.  While there is much to celebrate, there is much to do. 

In acceptance and conciliatory speeches alike, the candidates, each a role model in service to the country, emphasized that we must get on with our work – and there is much work to be done. Obama’s words put it clearly into perspective:

“So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, it’s that we cannot have a thriving Wall Street while Main Street suffers – in this country, we rise or fall as one nation; as one people.”

What can this new spirit of service look like? 

For starters, both Obama and McCain are co-sponsors of the Serve America Act sponsored by Edward Kennedy to usher in renewed commitment to strengthen community service and increase funding for innovative, non-profit programs.  Tripling participation in Ameri-Corps, incenting non-profit programs to reach scale, and helping to recruit more volunteers are just a few key initiatives of the Act.  

Newly introduced, it will be the will of both parties to protect this bill from bogging down in the too-much/not-enough-government-intervention debates surrounding philanthropy and the charitable sector.  Our politicians must remember, they are among the strongest role models for service that our country has to offer – and now, they must lead to make this vision a reality.

Beyond the government and its role in promoting service and responsibility, there is the opportunity for each American to find a place where they can serve.  On their neighbourhood block’s safety watch, with their religious organization’s food drive, fundraising for a NGO working in the developing world, as a young person starting their own social venture, mid-career service on the board of a local non-profit, as a retired person contributing their professional skills to the Peace Corps…and most importantly, as an ordinary citizen being aware of and curious at the world around them.  The options are limitless.

But hard work starts now.  Don’t wait.  Yes you can.

A couple of weeks ago, I thought I was writing on the worst the economy had to offer.  Fast forward to now - the world is involved and my local newspaper is reporting on the expected dip in non-profit donations.  The economy, coupled with the newly released Matthew Bishop/Michael Green book on Philanthrocapitalism, has me wondering - how do you cultivate new gifts and sustainable giving?

In an ideal world, every child would be using their “Spend, Save, Share” banks from an early age and “giving back” would be an engrained social norm.  The positive evidence that this may be the trend is coming from the Millennials values of social change, an increase in organizations addressing financial education for youth, and the increase of access to giving tools on social networking sites and through Web 2.0 technologies.

However, while these trends might indicate that the next generation will be more likely to give their time and money, how does a non-profit reach all demographics right now?  Is it more sustainable to look for 99% of donations in 1% of wealth or to attempt to change behavior for those who are not engaged in philanthropy?  Does the location matter and if so, how does a city become more philanthropic?  At a country level, how does government’s social funding (for health care, education, etc) affect the public’s opinion on supplementing this funding with their own money? 

A city’s typical givers might be in their 60’s, 70’s, and 80’s - yet, much wealth is accumulating among people in their 30’s, 40’s, and 50’s.  If these folks (and companies run by these folks) are not already pre-disposed to giving a portion of their wealth to charity, how do you reach them?  How do you reach cities with sprawl, where young professional families do not live in a central downtown core?  How do you reach inside the mighty corporations, with windfall profits, who do not subscribe to the belief of giving away 1% of their pre-tax profits?

These are not new questions, per se, but the time is right to be asking them again. In many places, creative solutions are being offered - professional organizations and networking encourage the discussion, giving circles are established among friends, and web-based applications making giving possible from your own home.  However, the audience to be reached is not those already informed, but those who need to be.  It’s a creative challenge - and one that will take “local variations on a theme” to be successful.

Residing in a oil-rich province, my morning reading consists of the daily banter between business tycoons and the environmental conservationists.  Last month, a group of Canadian Sierra Club members bicycled to the tar sands (approximately 1,000 km) to gather water from the oil sands to bring to oil executives in Calgary.  In July, Greenpeace recently staged a protest at the tailing ponds, where 500 ducks were killed in April, to stop the toxic waste from entering the pond.  Beyond these two incidences, oil companies continue to argue the economic benefits of these oil resources and promise that the land will be reclaimed.  As Shell Oil Company promotes its partnership with Earthwatch, Aboriginal tribes watch as their land is desecrated and hope (and push) for proper reclamation of the land.

But there is hope.  Move over reduce, reuse, recycle - renewable sources of energy are the darlings of the current climate change debate. 

We’ve read Jeffrey Sach’s arugument for the research and development of new energy technologies in Common Wealth - citing that we can reduce and stabilize greenhouse gas emissions while at the same time sustaining global economic development.   We’ve heard Sarah Palin’s nomination speech that a McCain-Palin administration will ”lay more pipelines and build more nuclear plants and create jobs with clean coal and move forward on solar, wind, geothermal and other alternative sources.” 

With the issue in the mainstream, the opportunities for debate are rife and the how, where, and when to start are less clear - that’s where philanthropy comes in.

The UNEP’s report Global Trend in Sustainable Energy Investment 2008 notes that in 2007 $148 billion was invested globally in sustainable energy, a 60% increase over 2006.  In philanthropy, the Clinton Foundation has partnered with the Solar Energy Foundation to provide solar panels to homes in East Africa.  Google.org’s initiatives around climate change continue to make headlines with their new investments in geothermal energy technology and cheaper coal.   And the Energy Foundation is rounding up major donors to assist with its pursuits of advancing energy efficiency and renewable energy.

Just as in global health and development, philanthropy will have a unique role to play in the debate around energy and climate change.  Whether it is in encouraging investment of new or underused opportunities, bridging partnerships between private companies and nonprofit organizations, or educating the public on new technologies - philanthropy will fill the gaps that government can not and will put dollars to the theories in which the experts believe.

And it’s not a moment too soon - oil is a finite resource and patience is growing thin.

(Disclaimer:  I’m not a climate expert, but Bill Hewitt is - and has more of the science behind renewable energy and climate change.)

Michelle Obama’s comments last night at the Democratic National Convention focused on “values” - the values with which she was raised and the values she hopes to pass to her daughters.  Amidst the comments on Hilary Clinton’s 18-million-cracks-in-the-glass-ceiling, mention of the historical significance of the convention’s timing (anniversaries of the 19th Amendment and MLK Jr’s “I have a dream” speech), and her own decision to leave the law office to work in public service - my mind started swirling around the ”next generation” in philanthropy. 

For the past few years, the sector has increasingly discussed the lack of leadership that the non-profit and philanthropic sectors will face when the baby boomers begin retiring.  Commentaries abound on the internet here, here, and from Canada’s sector here.  Websites aimed at young professionals in philanthropy including YNPN, FLiP, and EPIP are striving to provide resources to the prepare the next generations of non-profit, philanthropy, and grant making leaders.  Additionally, conferences such as Nonprofit 2020 are trying to give voice to those who are seeking to become the next leaders.

Earlier this year, the Meyer Foundation in partnership with CompassPoint Nonprofit Services, the Annie E. Casey Foundation and Idealist.org published a survey of emerging nonprofit leaders, the largest to date.  The result was Ready to Lead which asked nearly 6,000 next generation leaders how they foresee the upcoming leadership challenges and opportunities within the sector.  While the survey addressed potenial barriers, including work-life balance, compensation, and professional develop - it was illuminating that one in three respondents aspire to be an Executive Director (ED) someday and 40% of these respondents say they are ready now or within the next five years to take up this leadership role.

While many of the articles and blogs published on this topic give light to the problem the sector is facing - there are still few concrete examples being shared on how organizations are internalizing and strategically applying this information.  I’m on a hunt to find these examples. 

Still, Ready to Lead is clever in its format, giving current non-profit ED’s, the next generation, Funders, Board of Directors, and Leadership Capacity Builders some tangible steps to follow.  Coming from the next generation perspective, these recommendations empower us to take the next steps.  We become accountable for the success of the sector - we become leaders ensuring its future.  It’s much better than continuing the melancoly warnings of demise.

With all of that in mind, Hilary is on the stage tonight and this lesson is in her story as well.  We must make the space for new leaders to emerge.