It's Better Over Where?

As I am reading the late great Tony Judt’s “Ill Fares the Land” (jumping up and shouting YES! every couple of pages…) , out comes another book comparing European social welfare states with the American model: Tom Geoghegan’s “Were you born on the wrong continent?”

Based on Geoghegan, I was born on the right continent, but must have temporarily lost my mind and moved to the wrong one. How could I leave a place providing guaranteed vacation time, free education, free child care, free nursing home care and generous unemployment payments?

I have lived in the United States for many years now and “the country” has been good to me. I have been able to pursue a diverse career of my choice, changing jobs and locations in a way that would have made me an outcast on the German labor market. I have been able to make a decent living (in large parts thanks to that free German education putting me ahead of Americans, financially and in terms of basic skills), raise a family and live in a beautiful place of my choice. Working in the nonprofit sector, my work has made real change in local communities, people and policies in a way that would not have been possible in the more static German welfare and political system.

The country has been good to me. So I will not join too loudly the choir of people on all the social media networks and the press who took the publishing of Geoghegan’s book as another opportunity to complain about how terrible this country is. I feel more at home in Tony Judt’s camp: Looking at the welfare systems through his vast historical perspective (a European who lived in the US by choice, like myself) many of the paradoxes on both sides of the ocean make more sense. For example, he reminds the reader that neoliberalism hasn’t always ruled American political thought and decision making: “ …, much that was best in American legislation and social policy over the course of the 20th century – and that we are now urged to dismantle in the name of efficiency and “less government” – corresponds in practice to what Europeans have called ‘social democracy’.” He explains why even in countries like Germany, middle-class support for the social democratic model is now waning. And he chastises our generation with having missed a great opportunity: After the fall of communism, “we sat back and congratulated ourselves upon having won the Cold War: a sure way to lose the peace. The years from 1989 to 2009 were consumed by locusts.” Thirty years of erosion of social policies in the US have made the country more unequal “ … - in incomes, wealth, health, education and life chances - than at any time since the 1920s.”

And here’s a big point (one of several) on which Judt and Geoghegan “agree”: Poverty (Geoghegan) and inequality (Judt) corrupt society, endanger democracy, and ultimately undermine the economy: “Inequality is corrosive. It rots societies from within.” Judt explains the emergence of the social democratic systems after two world wars in Europe partially as a way to avoid another catastrophe. Geoghegan shows that poverty carries a tremendous cost to US society and economy.

Here's a West-German Cold War quote a fellow German expatriate reminded me of “ Geh doch nach drüben!” which is what German conservatives used to say if someone in post-war West-Germany was too lefty, meaning, go to Communist East Germany. The reviewers that have praised Geoghegan’s little book are now getting the same comment: “go there, if you like it so much better than the home of the brave and the land of the free….”

Meanwhile, I am running out of the benefits my European free education provided me: A large portion of my salary goes towards the private education of my younger children, because where we live, school districts are too underfunded to provide a solid public education. Our teenagers go to the local college to make up for what high school does not offer. This means, I am putting away no money for my retirement, let alone a graduate education for our children. The secondary education they get here does not adequately prepare them for the (free) higher education programs in Europe. So, is it “Geh doch nach drüben” time? should we move our family back to Europe?

We have not made that decision. Maybe the question is not, where is it better, or, where would we be happier. One of the challenges for us 21st century homeless cosmopolitans might be to find a way to be at home in both worlds. Not only from an individual perspective, taking advantage of the best of both worlds and avoiding the worst. But also from the perspective of ambassador between the worlds, showing our fellow citizens on both sides of the Atlantic what is dear to us and worth transferring to the other side. The freedom of making creative choices in one’s life and one’s community from the US, and the solidarity of social democracy that affords everyone the chance to do so, from Europe. Judt the European and Geoghegan the American do a good job bridging the Atlantic for this discussion. Everyone should read their books.

Policy Peptalk

I am enjoying teaching nonprofit management as part of a political science degree program. And not just because it neatly integrates my education with my profession. But because it makes a lot of sense.

As Leslie Crutchfield and Heather McLeod Grant have aptly explained in Forces for Good, successful nonprofits operate in both spheres of nonprofit activity: advocacy and service. Operating in just one of those spheres seems to limit impact over the long term. I can confirm this from my private practice. In particular when it comes to trying new approaches, service models and practices, I have seen those nonprofits fail that did not align their new service approaches with policy and advocacy activities at the state and/or federal levels.

I think this might be especially true for nonprofits operating in states like New Mexico, where there is not much philanthropic involvement in social innovation. We have to rely on government for paving the road to innovation with funding.

In this week's session of POLS-380, Intro to Nonprofits, we talked about the regulatory and policy environment nonprofits operate in. We came up with a list of developments that are currently influencing the sector:

• Increased regulatory pressure around the public trust (as manifested in new Form 990)
• Trends towards taxing NPOs at state and local levels (property tax and municipal fees)
• Federal tax law related to charitable donations, deductibility, estate tax law, regulations for foundations
• Federal laws related to lobbying
• Federal policy developments and attached funding streams around Social Innovation, replication of successful practices and Capacity Building
• Changes in priorities and funding streams at both state and federal levels for specific fields (such as disabilities, health services, education)
• State fiscal crises
• Larger policy developments and how they affect the sector: Health Care Reform, Recovery Act, Jobs Bill
• Hybrid corporate forms: LC3s (low-profit, limited liability) and B (benefit) corporations
  

Unlike some fellow bloggers, who see these developments as threats and occasion to proclaim the impending demise of the 501(c)(3), I think most of these can be opportunities for the nonprofit sector:

• The new 990 puts more emphasis on the role of boards as keepers of the public trust. With 990s becoming more accessible though Guidestar and nonprofits’ own websites, this move towards transparency and accountability can only be welcomed.
• The much blogged about blurring of the lines between sectors (LC3s etc., which in fact only exist in a handful of states so far) should be seen as an opportunity for nonprofits to point out their special advantage: Rootedness in the community through community-based boards, combined with public accountability controls most for-profit corporations are not subjected to.
• State funding cuts are the one real and dangerous threat to nonprofits at the moment (an excellent analysis of how state fiscal woes affect nonprofits was recently published by the Nonprofit Quarterly). So are, I imagine, declines in philanthropy dollars as experienced by nonprofits in more philanthropy-heavy areas. Not much opportunity to be found in being the bearer of the bad news to vulnerable populations, having to cut them off from services due to state funding cuts. The only opportunity lies in learning to become better advocates for ourselves and the people we serve.
  

As we are teaching this nonprofit class, apart from knowledge, we try to instill sector consciousness and a sense of pride in our future nonprofit leaders. A consciousness based on the ethics of accountability to the community and the public trust that come with being a community-based 501 (c)(3). And we also try to get across that unless you are able to communicate the value and advantage of your nonprofit and/or charitable organization and its work in a variety of policy environments, you will probably not have much impact.

Ecosystem's not changing in rural nonprofit America

Here is my response to Lucy Bernholz's recent blog post: In a Changing Ecosystem, Whither Nonprofits?:

While I have enjoyed reading Lucy’s posts for a while, I always struggle to find them relevant or applicable beyond the bi- coastal philanthropic consultant blogger and professional conference attendee worlds.

In rural NM, where I work with social innovators, we too closely watch policy developments. Sector “agnostic” sounds buzzy, but the sector relationships we are concerned with now are strictly between government and nonprofits: state funding cuts affecting nonprofit service providers and cuts in state subsidies to low-income residents are the development that worry my clients in these weeks. All the blogtalk of social capital markets, social investors, tactical philanthropy, hybrid corporate forms… remains inconsequential blogtalk to us.

Foundations in New Mexico have been close to irrelevant regarding social innovation for many years now (with a few exceptions, such as the NM Collaboration to end Hunger), and this year in particular they have resorted to distributing minuscule grants to a very few nonprofits, with no social impact expected. Corporations in New Mexico so far have not stepped forward to provide leadership in any cross-sector innovative projects. I imagine this is true for many non-coastal and rural states.

So… our questions are different from the ones that Lucy is asking: How can social innovation happen through rural nonprofits that are 90% dependent on government contracts, and are mired in vendorism? How can we develop effective networks across sectors, while building the capacity of individual nonprofits? How can we participate in federal initiatives such as the Social Innovation Fund, that are already set up to work through large intermediaries, i.e. foundations, in the absence of a wealthy, progressive foundation community?

Not much bathwater left in our tub, Curtis!

Scott Brown lies

Upon being sworn in, at his first press conference as a US Senator, Scott Brown, R-Mass. yesterday said: " The stimulus bill has not created one job." What a stinking lie, Mr. Brown.

Just in our little corner of the world, the American Recovery and Reinvestment Act has had profound impact in many areas. At Z-A, we have submitted roughly 18 million dollars in grant proposals on behalf of local government and nonprofits in 2009. Some of them are still pending. Of the 10 million in Z-A originated grants awarded so far, the ARRA grants have created at least 7 positions in Southwest New Mexico.

This is only counting the job-creating ARRA funds that Z-A, one small rural grant writing outfit, was involved in. Not counting the many grants submitted with the help of our great Southwest Council of Governments, not counting the 750K received by our regional Community Health Center, not counting the funds received by the public school system, and not counting the secondary economic impacts of this influx of dollars.

According to the federal government, NM has been awarded 2.3 billion in ARRA funds as of Dec 31. 534 million have been received to date, creating 4582 jobs.

Mr. Brown was elected riding a wave of anger, selfishness and lies. Apparently he intends to continue on this successful path.

Syllabus for Introduction to Nonprofits

The Syllabus for Introduction to Nonprofits has not been officially approved yet, but I don't expect any major changes. I tried to accommodate most of the very helpful comments.

This will be a class offering a broad fairly comprehensive overview, with time unfortunately not permitting a lot of depth.

From the Syllabus:

Students will gain a general understanding of the roles and functions of nonprofit organizations in the US and in New Mexico. In the first half of the semester, the course will cover the legal, regulatory, policy and ethical aspects of the nonprofit sector, as well as the major nonprofit theories. The second half will cover issues of organizational development and management, including resource development, financial management, HR, strategic planning, collaborations, program development and volunteer management.

We will suggest additional resources and literature on each of the topics. And we will take a lot of notes that will inform the development of the future WNMU Nonprofit Management Certificate and degree programs.

Charlie Alfero and I will co-teach the class, with the help of some wonderful guest speakers.

No quizzes, no exams, but a bunch of empirical research and writing assignments are expected. As is attendance and participation in the class/group work: To cut down on sleep inducing lecture time, Charlie has thought up a group exercise that will be continued throughout the semester, at each session: we will create a mock nonprofit - based on a community priority setting exercise, go through the start-up stages, put together a board, a strategic plan, work on developing a program, an organizational budget, and discuss most of the class topics (see below) as they apply to our class-created nonprofit organization.

We are hoping for a diverse group of students that will allow for peer learning. Some new to the nonprofit world, some with practical experience in a few areas, and some bringing expertise from the business and government sectors.

The course will be beneficial to people already in the NPO workforce who feel they never got the big picture, and educational for Social and Political Science students trying to understand the role of nonprofits in our society, as well as informative for anyone aiming at a career in the sector.

Here's the schedule (starting January 12, each Tuesday 5:30-815 pm)

Session	Date	Theme
1	Jan 12	Introduction
2	Jan 19	Ethics
3	Jan 26	Governance
4	Feb 2	Nonprofit Theories
5	Feb9	Policy and Regulatory Issues
6	Feb16	Social Innovation and other functions
7	Feb 23	Strategic Planning
8	Mar 2	Organizational Stages
	Mar 9	Spring Recess
9	Mar 16	Management
10	Mar 23	Revenues and Resources I
11	Mar 30	Revenues and Resources II
12	Apr 06	Financial Management I
13	Apr 13	Financial Management II
14	Apr 27	Volunteerism and Volunteer Management
15	May 4	Program Development
16	May 11	Program Management
17	May 18	Collaboration

More input on our class "Introduction to Nonprofits"

Thanks to all of you who have left comments here. All this is very helpful, and we will try to cover all of your items. Stay tuned for the class outline, I will post it here shortly.

Following are some more ideas and suggestions I received via email, and i wanted to share them here:

DC:
Sounds fabulous and just what I am looking for. I would like to see covered in this class: successful grant language, non-profit sustainability, the nuts and bolts of a non-profit organization's infrastructure, successful staffing and daily function of the n-p, dos and dont's, and basic accounting issues -- i.e. what to watch out for. I will sign up!

FM:
I would suggest some focus on the following regarding nonprofit finances:

1) Planning to make a profit on events rather than planning to break even
(The event was fun and we made some money too!)
2) Planning out and creating a reserve fund for the organization
(The crisis is being handled through our reserve fund!)
3) Having a system in place for handling cash
(There is no money missing or unaccounted for!)
4) Having a checks and balances system for handling the nonprofit's funds
(The opportunity for embezzlement is not an option!)

NP:
Two areas I suggest some discussion around:
1) Ethics in nonprofit organizations
2) Nonprofit organizations modeling after successful for-profits in these areas: accounting, board development, marketing and human resources.
I also wonder if you will discuss the term “social profit” replacing the term “non-profit”.

EB:
I recently wrote a response to a sociological piece that highlighted the success of a collaborative effort between university, for-profit and non-profit sectors....essentially, my critique was this---non- profits must be in the business of putting themselves out of business. This would be what a piece of what I'd like to see in the course....not letting bureaucracy (and the money from those who have helped to created the problems non-profits are addressing) get the best of us.

AJ:
Having been through all the struggles of setting up a new non-profit, I do have a couple of ideas for you. First of all, walking people through the process of incorporation in NM and getting federal non-profit status would be helpful. I found it extremely daunting! Most of all, once that was done, I wish the state and the feds would send out a list of what is expected of non-profits once they’re created: reporting obligations, obtaining CRS numbers, and rules re: issuing non-taxable transaction certificates. I have had to stumble my way through all of these things and wish I had had access to a course such as the one you are planning! Good luck with it.

NC:
I have three major issues. I'm sure you know all of them! But I'll put them out there anyway...
1. Make sure the nonprofit organization is needed. Identify the constituency and determine what it's lacking. This is a chicken and egg question: which comes first? And there's no doubt that the need/target group may shift over the life of the organization. But I still think needs assessment is a vital first step.
2. Be realistic about funding. Develop a business plan and stick to it. Do not guess about revenues (amount and source).
3. Create the ideal Board of Directors. The mix of skills and temperaments both to recruit the Exec. Director, oversee the operation, solicit funds, and represent the mission.

EZ:
Given the usual requirements, i.e., knowledge of IRS requirements, audits, etc....I think I might recommend the "philosophical" piece. Maybe not so much a philosophical view, but, the visionary aspect and other reasons that someone would consider entering the nonprofit management sector.

Introduction to Nonprofits

This spring semester, Western New Mexico University will offer, for the first time, a class on the nonprofit sector. It will be provided at the Junior (300) level through the Sociology and Political Science Departments. It's open to anyone from the community who wants to attend and beef up their understanding of the sector.

The class is the first step in a process to develop a nonprofit management certificate program, and ultimately a master's level degree program.

It is also an example of a community education institution responding to a community need.... in this case, the difficulty nonprofit employers are experiencing in hiring competent staff, paired with the realization that the sector employs 10% or more of the local workforce, and there is no relevant training available locally. Look around and add to that the average age of nonprofit leadership in our area, and it will become obvious that we'll need to prepare the next generation for the sector.

Fortunately, there are hundreds of nonprofit management degree programs all over the country, and we don't have to reinvent the wheel. As I am putting together the curriculum, however, I would like to hear from NM nonprofit workers, employers, volunteers, and board members which specific skills and knowledge areas they'd like to see covered. Please submit comments to this post. I will post more details on the curriculum shortly.

PS: The class will meet on Tuesdays from 5:30-8:15 p.m. , Silver City campus, starting January 12th, 2010.