We’ve got more to offer than 3%

If we ever needed proof that raising capital is one of the biggest, most important challenges facing promising young innovators in the social sector, here it is: Kjerstin Erickson, Jon Gosier, and Saul Garlick, all promising 20-something leaders of new social ventures, are each offering up 3% of their lifetime income in exchange for a $300,000 investment in them and the nonprofits they’re building.   They’ve created the ThrustFund to raise a total of $1.2M in unrestricted philanthropic capital ($600k, $300k and $300k respectively) in $3,000 increments, and have created a contract to manage the payout of their future lifetime income to their “investors.”

This is definitely smart marketing: it’s innovative, it’s headline-grabbing, and I bet it will get them the visibility they’re looking for.  And without a doubt they’re all courageous and they’re putting themselves out there.

But it doesn’t sit right with me.  I’m worried that this plays into and amplifies the exact power imbalance that we need to re-imagine – the story of the successful, wealthy, powerful philanthropist and the struggling nonprofit CEO, hat in hand, who literally is offering up a part of himself and his earning potential in exchange for an investment in his dream.

And this is a very small view of the value that nonprofits offer (and I’m not talking here about social versus economic value).

Thoughtful philanthropists are looking to make real, important, lasting change in the world, and through their philanthropy have the potential to realize personal growth, development, connection and legacy.  Yet unless the philanthropist is going to become a front-lines operator of a nonprofit/social venture, she has no choice but to realize these aspirations through her philanthropic investments.   Put another way, great nonprofits are uniquely positioned to enable the philanthropists to realize their own dreams and aspirations.  As much as nonprofits need great philanthropic investors, philanthropic investors need great nonprofits.  And this is a good thing for everyone.

Which is why, no matter what the contract says about a termination clause and the exact terms of the payout, the story of selling 3% of your lifetime income to a philanthropic investor seems to reinforce all the old ideas.

It says, to me, that the value that promising leaders like Kjerstin, Jon and Saul bring to the world is easily bought in a simple transaction.  It says that the answer to finding partners to back your dream can best be realized by tapping into a little bit more greed (“maybe I’ll get my $3,000 back…or even make a profit!”).  It says that someone who has $3,000 to give isn’t already getting enough in return – for themselves and for the world – when they back someone willing to work 20-hour days, 7 days a week, in pursuit of a dream whose main payback is improving the lives of others.

I wish Kjerstin, Jon and Saul great success.  And I know that we can and we must do better than this.

The 17 second story

Twice in the last two weeks I’ve had 30 minute calls with people who are exploring interesting new vehicles for raising capital in the nonprofit sector.  Yet in both cases, it took 17 minutes (I counted) to get to the core of what the opportunity was.  We lost more than half the time in the lead-up, and this with the people whose job it is to sell the story.  (And whether you’re a CEO or a job-seeker, it is your job to sell the story).

This is an easy trap to fall in to, because you want to dig in to the nuts and bolts so much.  But when you lose the headline, you lose the inspiring vision, you lose the thing that’s going to give this thing legs.  You don’t have 17 minutes, you have 17 seconds.

This isn’t a post about nailing the 17-second elevator pitch for your organization – who you are, what you do, why it matters – although everyone from your Board to your CEO to each employee must be able to articulate this effectively.  In a world where you’re constantly leading and innovating, where you’re tearing through projects because you’re getting so much done, you have to keep on developing and refining and changing your 17-second story.  Nailing this consistently is one of the arts of leadership.

It’s about having, at your fingertips, the answer to the same question in many guises: “What is the most pressing question you’re facing right now?” or “what’s your greatest need?” or “what keeps you up at night?” or “what’s new”?

Any of these in 17 seconds.

So, what’s new?

The poverty box

Today I registered for a conference and had to check a box about my “area of interest,” so I check off “International Development / poverty.”

And then I realized why only 23% of U.S. philanthropy goes to international causes.1 We’re stuck in this box.   The one that has you pick from:  Human rights /  Conflict resolution / Women’s issues / Education /  Healthcare / Infrastructure / Policy reform / Judicial reform / Poverty alleviation (CHECK) / Etc….

The “how” is so much less important than the “why” in making people understand how urgent this is.

The box I want to check says: “I’m in the business of creating a different world, one in which the 7 out of 10 people globally who are struggling for survival can instead become artists and engineers and teachers and entrepreneurs and CEOs and judges and architects and software programmers and Presidents and mothers who don’t worry if their children will survive to age 5.  I’m in the business of realizing the potential of all of the 6.7 billion people on this earth, and not just the 2 billion who were born in the right place at the right time.”

Yeah, that’s the box I want to check.

NOTE 1: the 23% number comes from Jane Wales, and if anyone knows this statistic it’s her.  I honestly thought the number was much lower.  Does anyone have a source for this number?

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Generosity experiment revisited

A few weeks ago I started a generosity experiment.  The idea, sparked by a homeless man to whom I did not give, was to spend a period of time saying ‘yes’ to all requests to give – whether a person on the street, a donation request from a nonprofit, whatever.

Some people, like Jeff, really hated the idea at first (“AHH! NOO! STOP!” was his initial reaction); others shared my sense that the practice of being generous itself was inherently valuable.

A month later, I’m glad for the experiment.  I gave more than I normally do and I gave more often.  And it felt good and right, especially during the holidays, a time when presents of all sorts were flying in all directions.

And while I won’t continue giving to virtually everyone who asks, I will give more and more often.  The practice of being generous instead of critical (discerning?) is, I have found, important for at least two reasons:  first, we are how we act, so if I can habitually act more generous, I will be and become a more generous person.  Second, the experiment served as a deeper exploration of how much giving is an act of self-expression, rather than (or in addition to) a “purchase” of a social outcome.

The people who didn’t like my experiment all said something like, “If I pass a person on the street asking for money, I don’t give because I know it makes more sense to give to a homeless shelter.”  Put another way, one could better purchase social change for a homeless person by giving to a shelter or a food bank.   Objectively, that’s probably true (though one doesn’t know for sure).  However, it also misses something: first, because whether or not you give a dollar or two to a person on the street really doesn’t affect the larger donation you’ll hopefully make to the homeless shelter or the food bank; second, because the act of saying ‘no’ over and over again is reinforcing something in you and in me.

I’m not saying give every time, I’m asking us to be honest about why we do and don’t give, and to recognize the effect it has on us.

Let’s take an extreme example: suppose that over the course of the year I’m asked to give 200 times – maybe 100 times directly and 100 times by various nonprofits in various ways.  And let’s say I have a limited amount of money to give, which I do.  Isn’t the practice of saying ‘no’ 195 times and ‘yes’ 5 times reinforcing a mindset and habit that I’m the kind of person who says no when people ask for help?  And couldn’t there be a way to say “yes” 15 or 50 or 100 times that would reinforce something else entirely?

I don’t want to take this too far – to the conclusion that all philanthropists should spread their funding widely so that they can practice saying ‘yes.’  That’s not right either.

But I do want to push myself and others to ask whether it is healthy to think of every giving decision from the head rather than from the heart.  Can’t the argument that “this isn’t the best use of my money” be paralyzing or, worse, an excuse never to part with any money, because nothing is ever good enough?

Maybe a request for a gift isn’t always chance to analyze what is or isn’t the “best” use of my money.  Instead, maybe a request for a gift is an opportunity to practice being the person that I want to be – someone whose first response is to be open and generous.

And maybe, with practice, I will be transformed in a way that is powerful for me and for the world.


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2010 resolutions, in two takes

TAKE ONE

This year I resolve to…

Wake up earlier and go to bed earlier.

To get more sleep and always eat a proper breakfast and bring my lunch to work daily and rush less on my way to work and on my way home and everywhere in between.

To exercise more, practice yoga more and to meditate daily and to eat more fiber and green leafy vegetables.

To spend more time with family and friends, and also to build stronger relationships at work and for work.

To be on time for every meeting and also be open to spontaneous, creative, and urgent conversations.

To be slow to judgment, to anger and to frustration, and quick with a smile and a kind word.

To read all the interesting articles and videos and blog posts people send my way, and also the The Economist from cover to cover, and never to fall behind on email but not to be ruled by my Inbox or distracted by my iPhone.

To hit every deadline, strike everything off my to do list, to plan in advance and create clarity and inspiration and connection for those around me.

And to create a 30 hour day…

(Hmmm.)

TAKE TWO

This year I resolve to be more accepting of myself and of others, to be more present, more calm, more generous, more open, and more at ease.

*                      *                      *                      *                      *                      *

My thanks to all of you for reading in 2009, and wishing you a year in which you continue to evolve into the person you were meant to be.

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The indifferents

There’s a group of people out there who love you.  Your passionate fans who talk about you to anyone who will ask, who spread the word and your message and carry your brand with you.  Cherish and nurture them.

There are others who have actively decided that you’re not for them.

And then there are the indifferents. The ones who have known about you for a while, who have heard your story for months or even years, who you’ve cultivated tirelessly.  And they’re still not acting, not buying, not convinced.

What do you do about them?

Here’s a hint: which is more likely, that the person who has heard your message 15 or even 50 times will suddenly be convinced if you have just one more go at it? Or that you’ll find someone brand new and get them excited?  That’s right, go for the new guy.

By the way, there’s a difference between indifferent and unconvinced, but it’s going to take a whole lot of work for you to figure out who’s who, work that may never pay off.

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Perseverance

You don’t need it when people are cheering you on, when sales are piling up, when the press is pounding down your door, when you’re getting praise and are in the limelight.

You do if you ever want to get there.

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Optically delighted

Former Acumen Fund Fellow Karthik Janakiraman shared these thoughts with me, and he was gracious enough to allow me to post his note in its entirety.  It’s a perfect follow-on to my Magic post about Zappos.

I read your blog and often have noticed that you talk about being “delighted”. I had an experience from a relatively obscure company and wanted to share it with you.

I had to purchase a few optical filters from a company called thorlabs.com and I decided to go with them because they were the cheapest.

I was on the website at 4.35ET and was desperate for these filters.  I had to get the order in by 5pm in order to make the overnight shipment cutoff. I did get the order in but was skeptical about having the filters ship out because I had a vision of some guy sitting in a warehouse, thinking about bailing for the day, who may or may not hustle to get my order in.

To my delight, at 5.01pm , I get an email with a FedEx tracking number on it.

The next day, I open up the box to see the filters and a bunch of snacks (trail mix, cereal bars and cookies) encased in a box called “Lab Food”.  I was absolutely delighted!

The net cost of the goodies was probably 4 or 5 bucks when the snacks are bought in bulk. I spent roughly 600 bucks, so for about 1% of sales this company has converted me into an evangelist and definitely a repeat customer. Great execution as well and I did not even have a human interaction.

Karthik’s story takes the idea in the Zappos post – that you can create magic anywhere – a step further.  To delight, you must surprise, which means you must surpass expectations.  You can do this in any customer interaction – it doesn’t matter if you’re selling shoes or optical filters or an idea.

Ideally, your create delight in a completely customized way.  But this isn’t always possible.  In which case you can, like Zappos (and, according to Karthik, like Thorlabs) build processes that are so above the bar that you can consistently delight nearly everyone.

Put another way, being exceptional and being systematic are in no way mutually exclusive.

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Glitch

Of the time I spend blogging, 99% is spent on writing, and 1% (if that) on the site itself and its functionality.

However I discovered a small glitch which I’ll correct going forward: those little icons on the bottom of every post often have broken links, something I just discovered this morning.  It’s a WordPress glitch I just discovered.

It’s fixed on this post and will be going forward.  So now you can click away when you read posts that you like and want to share.  So please click away.

(And if anyone out there has been dying to improve the look of this blog, its functionality, or anything else about it, please email me.  Offers of help are always welcome.  For example a good non-manual “Tweet this” for each post…?   Feedback of all sorts is always welcome).

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What Matters Now

What if you could peek into the brains of 70 of the smartest, most accomplished, groundbreaking authors and bloggers and thinkers around?

And what if you could ask them, “What word matters most to you of all?  Can you explain what and why?”  People like Arianna Huffington and Elizabeth Gilbert and Chris Anderson and Karen Armstrong and Tom Peters.

That would be worth your time, wouldn’t it?  …if you could only get to all of those people.

Voilà, enter Seth Godin and his new free PDF,  What Matters Now.  It just came out today, and you can download it here, for free, or here on Scribd.  Because Seth knows more than anyone that what matters most is spreading powerful ideas.

So go ahead, download it, read it, share it.

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