Nonprofits and the Economy of Free

My RSS feeds of late have been delivering to me many interesting posts by Chris Anderson as he explores the different kinds of free. I’ve been specifically interested in his visualizations of the Advertising Model of Free: advertisers pay for advertising, which subsidizes programming, which is then given away for free, with the goal being that consumers will purchaser those original advertiser’s products. There is a great explanation of how broadcast advertising works in the Denver Open Media’s Opening Access video (at about the 1 minute, 30 second mark).

Chris Anderson’s graphic of the same thing is below (C is Consumer, P is Producer, A is Advertiser):

Advertising Model

This model of Free is very similar to the standard nonprofit model of giving: Foundations/Donors (D) provide support to Nonprofit Organizations (NP) which then provide free services to Clients/Constituents (C):

Nonprofit Donor Model

That all being said, the nonprofit model doesn’t quite have the same symmetry. In fact, it’s missing a piece that, at least in my experience, very rarely is talked about: what is the relationship of Foundations/Donors to the Clients/Constituents?

I’ve previously explored some of the reasons why nonprofits have arisen in the way they have, including middle-class guilt about the disparities between the affluent and the poor; wealth-transfer mechanisms for the rich; dissatisfaction with the profit motive as an incentive to extract work and induce consumption; greater abundance in society general; and the inability for government agencies to provide services to meet growing needs as a result of the widening gap between rich and poor.

Putting those in context of clients/constituents, the actual people being served, there isn’t that much of a relationship: as a person receiving assistance, one would not care much weather it was coming from the Ford Foundation or the Carnegie Foundation—it is the quality and efficacy of the services that matter, and those are being delivered via the nonprofit.

One way to look at this (and there are many), is to think of the Clients/Constituents as just one part of the larger Society (S):

Nonprofit Donor Model with Society

Emma download

In this case, what is being transferred between Foundations/Donors and Society in general: reputation, legitimacy, restitution, validation….? That’s an interesting question.


Alternatives to a Nonprofit Job

I was really happy with the feedback I received from my last article”Should I get a nonprofit job?” The responses I got, some of which you can read in the comments, helped me focus the message I was trying to convey:

A nonprofit job is not the only way to make a living and make a difference in the world.

In the comments, I think I hit upon the real issue, which is the lack of Civic Literacy I see among people in my age/social group. I don’t mean “young people are lazy/apathetic/ungrateful/whatever”, but that we don’t know how to effectively participate and initiate change in our communities and society—for no lack of interest. We’re having to make things up as we go along, which as I think my parent’s generation would agree, didn’t work out quite the way they thought it would.

So below are three suggestions I have for the intelligent, well-educated (or seeking to be), self-motivated and upwardly mobile individual who can be an ally of the nonprofit sector, but not necessarily employed by it.

  1. Serve on the Board

    Executive Boards are the driving force behind nonprofit organizations. Boards set broad goals and provide important oversight for the functioning of the organization. Many boards have term-limits for serving, which means they need a constant influx of knowledgeable and engaged individuals. Boards often run by the Three-G’s—Give, Get or Get out—but an active board will provide great opportunities for involvement beyond fundraising.

  2. Start a Family Foundation

    You can turn the typical fundraising experience on it’s head by offering a Request for Proposals, and get a tax write-off as well. Starting a Foundation allows you control social priorities by controlling the purse-strings. Because you’re offering a grant and not an individual gift, you have a better opportunity to target specific programs or objectives with increased accountability and oversight. Did someone say “site visit”?

  3. Write your Public Representative

    There was once a time in America when people believed it was the federal government’s responsibility to offer many of the services that the nonprofit sector now provides. Regardless of your political-philosophical position, the government still provides massive amounts of funding to social causes. Contact your local, state or national representative and request support for your particular cause. You might not be able to target a particular organization for earmarks, but a rising tide raises all the boats.


"Should I get a nonprofit job?"

I have a lot of friends and acquaintances considering a job in the nonprofit sector. I’ve been employed within small (under $2 million budgets), community nonprofit organizations for three years now, beginning straight out of college, but have also talked to many people with many different experiences and histories in the sector and outside of it about their experiences. The following is my boilerplate advice to people that asks me about working, or finding work, within nonprofits.

Assuming that you are an intelligent, well-educated (or seeking to be), self-motivated and upwardly mobile individual, your interest probably spans a combination of two distinct (or should be in your mind) issues:

  • You want a job, with a modicum of stability, freedom, and disposable income.
  • You want to change the world, or a least do it less harm than otherwise.

My advice for you:

Find a corporate job that you like, or don’t feel too guilty about, and that provides you with plenty of disposable income and time. Find a small, local nonprofit (or church, or social group) that meets your standards for doing good, and invest your disposable income and time with them. Join their governing board, connect them with your professional and personal networks and help them grow in a direction you believe in. You will enact more change from a higher level than you could, in most situations, by being a direct employee of that organization.

Non-categorical rationale:

Nonprofits have jobs, but they don’t have a lot of them and it’s hard to break into one that distinguishes you from your peers: you can find a job answering phones, but it’s difficult to get one with responsibility and authority. Nonprofits are bad (or relatively worse than their commercial peers) at: recognizing ability, enabling it, and rewarding it.

Nonprofits are insulating. Because you are constantly understaffed, under-budgeted and under-resourced (time, training, equipment) it is difficult to find the time to truly reflect. It is difficult to critically look at what you are doing and what you have done; to connect with other practitioners and look at what you are doing as a group; to reach outside the sector to learn from others and see how you fit into that broadest context.

A job is a job, wherever you’re working. This may sound selfish (and it probably is) but you should be concerned that, whatever your job is, you:

  1. are challenged
  2. are encouraged to try and learn new things
  3. are acknowledged (even celebrated on occassion)
  4. can advance to greater responsibility and authority
  5. are provided a separate personal life
  6. are afforded physical and mental health (no 80 hour weeks or screaming matches)
  7. have fun or enjoy your work a majority of the time (no puritan work ethic for me)

By looking after yourself on an individual level, you will ultimately be in a better position to have compassion for those around you and be better positioned to act upon that compassion.


Nonprofit Communications 2.0

Last week I attended NTEN’s 2007 Nonprofit Technology Conference and sat in on a wonderful session entitled Nonprofit Communications 2.0: Seven Steps to Transform Your Organization. Led by Lauren-Glenn Davitian of the CCTV Center for Media and Democracy, the session provided a strong framework for nonprofits to better communicate in an increasingly networked society.

I am also very lucky to serve with Lauren-Glenn on the editorial board of the Community Media Review.

The video itself is approximately 1 hour, 24 minutes long and worth every second, but I included my notes from the session below.

Community building talent is the single most important resource in the modern world.

Peter Drucker

How to engage and mobilize members

A Communications framework for thinking about how organizational objectives are met through interaction. The correlating Development framework is in parenthesis.

  1. Welcome (Prospect)
  2. Educate (Cultivation)
  3. Ask (Involvement)
  4. Thank (Stewardship)

The Seven Steps

  1. Assessment: Defining your goal (What behavior are you trying to change in undertaking a communications strategy?), audience (an explicit, targeted “who” and their values), evaluating your infrastructure (orthodoxies, structure, time, leadership)
  2. Awareness: Start by searching NTEN, TechSoup, Idealware, etc. (Link Research)
  3. Training: A discipline of doing things. How are stories told, infrastructure built and actions communicated to regular people?
  4. Content Production: “The currency of the new world”
  5. Technical Support: An example: how to know when to build and when to buy
  6. Partnerships: Who is going to stand up for you?
  7. Planning: What are the components that revolve around your goal?

Other Links

I shot this video with a Casio EX-S600, which shoots full-frame (640 x 480) MPEG-4 video. With a two gigabyte SD Card it can shoot approximately an hour and a half of video at medium quality before its battery dies. The Casio’s AVI wrapper is incompatible with iMovie (or any Quicktime decoder), so I first used VisualHub to repackage the video as an MP4 before importing into iMovie to add titles. I exported from iMovie as DV and then converted that with VisualHub into MPEG-4. Compressed and at quarter-frame (320 x 240) the entire video was 105 MB. This time I uploaded to Google Video since Blip.tv stalled out.


Nonprofit Competition & Concept Map

At this summer’s CTCnet Conference the thing I most took away–or rather, repeated to the most number of people–was something said by the keynote speaker, Ami Dar, the creator of Idealist.org.

He was asked by someone in the crowd something along the lines of “In what areas do you want to see nonprofits develop into the future?”

Ami Dar responded that an area that he saw as important was acknowledgement of nonprofit competition. His brilliant reasoning was this:

In for-profit companies, everyone accepts that competition takes place; it’s a given. Businesses identify the areas in which they compete, and from this, also gain an understanding of the areas in which they don’t compete. In the areas in which they don’t compete, businesses can cooperate. Nonprofits, in general, are not aware of, or acknowledge that they compete (and they do), and because of this, they cannot collabrate as efficiently or as effectively as possible.

My own example of this is the Detroit automakers. Ford and GM are incredibly competitive in car production, features, pricing, dealerships, etc. But at the same time, they have an incredibly strong combined lobby for setting safety and emission standards, things that affect the entire industry. They know where they compete and therefore know where they can work together.

So this has been rattling around in my head until I read two things:

This first was “Learning How to Learn” by Joseph D. Novak, D. Bob Gowin, and Jane Butler Kahle, which lays out some very interesting models and heuristics for visualizing information.

The second was A Typology of Nonprofit Competition: Insights for Social Marketers by Robin J. Ritchie and Charles B. Weinberg.

Putting them together, I made this using OmniGraffle:

Download the PDF

Concept Map: Typology of Nonprofit Competition