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Crowdfunding for Social Good
Devin D. Thorpe
Devin Thorpe

Nonprofit

This category includes articles about nonprofit organizations and NGOs that are actively working to accomplish a social mission. The work of foundations that primarily work as grantors to other nonprofits is covered in Philanthropy.

You Only Need To Collaborate If You Want To Have Impact

More and more, not only in social entrepreneurship circles, but more often there, we hear talk of collaboration. I’ve always had a sense that this is true as a matter of principle, but being here in Mexico working as a volunteer with Rotary this week, I’ve gained a much deeper appreciation for the value of genuine collaboration.

Rotary District 5420, which includes all of the clubs in Utah, has descended upon the small town of Puerto Peñasco, Mexico to complete about 50 discrete service projects. One of the biggest projects, or sets of projects, was the construction of homes that will be provided to needy families here.

Interactors work to build a home in Puerto Peñasco

Interactors work to build a home in Puerto Peñasco

Rotary didn’t just decide on a whim to pop down to Mexico and build some homes. Rather, a relationship has been in the works between Utah Rotary and a nonprofit based in Utah called Families Helping Families, which began building homes here nearly a decade ago.

The collaboration began when high-school-age young people who are members of Interact, a Rotary-sponsored service organization for youth, began providing funding and manual labor for the construction of homes. As that relationship solidified, it became the primary source of volunteer labor for Families Helping Families.

When Utah Rotary began thinking about bringing its membership down to Puerto Peñasco, the leadership quickly realized that they needed partners on the ground in Mexico. There was no active Rotary Club in Puerto Peñasco, so Utah Rotarians came down several times to recruit members here to form a new club and to provide the needed support for the projects.

Today, we saw the impact of the collaborations. While the Families Helping Families homes that were built this week, won’t be finished for months, other teams worked on homes that were started months ago to get them ready to present to their new residents. We toured the cute little homes today as the families were invited in for the first time. The Rotarians had decorated and furnished the homes and even put in some landscaping.

Elsewhere, we saw that the local Rotary Club, which discovered a previously unknown Rotary Elementary School in need of some Rotary love, got all that it needed, including 65 Apple iMac computers, fresh paint, dozens of broken window panes replaced and new air conditioners in each classroom.

Utah Rotary could not have pulled off these projects without the help of the local Rotary Club, an axiom so plainly true that Utah Rotary was effectively forced to create the local club in order to complete its mission. It also relied upon the expertise and experience of Families Helping Families.

Collaboration isn’t just a buzzword or a good management principle. It is the key to successful impact.

Anyone Can Volunteer; Everyone Makes A Difference

Today, as I was working alongside my Rotary friends volunteering here in Puerto Peñasco, Mexico, I realized that volunteers come in all shapes and sizes.

Rotary volunteers come in all shapes and sizes.

Rotary volunteers come in all shapes and sizes.

On the one hand, I was not surprised that the woman with the Harley Davidson t-shirt knew her way around power tools. She puts in a full eight hour volunteer shift every day and never slacks off.

Volunteer who engages day after day with skill and energy

Volunteer who engages day after day with skill and energy

On the other hand, I was was somewhat more surprised that the lawyer in the group, Russ Ferricks, was equally comfortable with tools and works just as hard. Today, he took charge of roofing the small piñata factory where our Rotary Club has been leading the project. Despite thinking that I knew his character and desire to serve, I was surprised at the energy and determination he showed for the technical and physically challenging aspects of the work.

Russ Ferricks, attorney who led roofing effort

Russ Ferricks, attorney who led roofing effort

As I migrated from project to project, functioning typically as a unskilled labor, I had the opportunity to spend several hours working side-by-side with one of the wealthier members of our club, Floyd Hatch. His $16.8 million ranch is currently up for sale–I suspect he’s looking to upgrade. Now in his sixties, he, too, gets down and dirty in the work. As the President Elect for the Club and the formal head of the project, he hasn’t organized himself as the leader, instead he delegated that responsibility to an experienced contractor and jumps in to help wherever needed.

Luke Hatch, one of the youngest volunteers

Luke Hatch, one of the youngest volunteers

The volunteer pool today ranged in age from about 5 to about 65. In fairness, our youngest volunteers were easily distracted and weren’t always on task, but they were fun to have around. The volunteers from the local community, participated as equals. I loved watching two volunteers on the roof carrying on a complete conversation, one speaking English exclusively and the other speaking Spanish exclusively, with some gesticulation thrown in for added clarity.

Today’s lesson: anyone can volunteer and everyone makes a difference!

When These 700 People Roll Into Town, You’ll Love What They Do

This week, Gail and I are in Puerto Peñasco, Mexico with Rotarians from around Utah doing service. There are several projects underway, including the construction of three homes, in partnership with a small nonprofit called Families Helping Families. Others are working on improvements to a school that is supported by Rotary. A group, led by my club, is working on the expansion of a small piñata factory that only employees special needs people.

A home rises out of the sand in Mexico, as if by magic, at the hands of dozens of Rotarians and their young counterparts, Rotoractors.

A home rises out of the sand in Mexico, as if by magic, at the hands of dozens of Rotarians and their young counterparts, Rotoractors.

It is exciting for me to see the tremendous impact that 700 people can have in just a few days. Homes are rising out of the sand almost by magic. Working on the construction of the piñata factory today, we laughed as the painting crew began painting the exterior within seconds of us putting up the exterior walls to be painted–no exaggeration.

Rotary Club 24 leads effort to expand piñata factor for special needs employees.

Rotary Club 24 leads effort to expand piñata factor for special needs employees.

It was also great to learn a bit about the little social enterprise that makes the piñatas and employs the developmentally challenged and otherwise disabled people. By giving their employees an opportunity to be productive and constructive adults they are redefining the lives they might have. By creating a social venture that is funded largely by the sale of their piñatas, they have created a financially sustainable organization that not only serve their employees indefinitely into the future, the organization can continue to grow.

Volunteers pose with one of the teachers from the piñata factory after a day of hard work.

Volunteers pose with one of the teachers from the piñata factory after a day of hard work.

Gail was among the volunteers who worked with the expert piñata crafters to create piles of piñatas that can be sold to the Rotarians–including the ones who made them–as souvenirs as they head back to Utah. The profit from the sales of piñatas this week could fund the organization for two years!

The first big take away from this week, for me, is the recognition that it takes serious organization to pull off something this big. Not just any organization can pull together 700 people to travel 1,000 miles at their own expense to volunteer to help people they’ve never met, may never meet and will likely never see again. Think about the value of belonging to such an organization. Think about the value of the opportunity to lead a club or a district full of clubs like that. You don’t have to start from scratch when the world is already rife with service organizations and faith-based organizations that you can leverage to accomplish your good goals!

Some Stocks Go Down, Some Fruit Goes Bad, Some Charities Are Better Than Others

This week’s announcement from the FTC that it, along with
all 50 states and the District of Columbia, was filing a complaint against four
nonprofits that had reportedly used virtually none of the $187 million raised
for charitable purposes, has sent shudders through the nonprofit community.
Organizations are afraid what this news will do to fundraising.

Here’s why you should continue to give to charity enthusiastically.

When you buy fruit at the grocery store, you know there is a
chance, in fact a near certainty, that some of the fruit you buy will get
thrown out. Some will be bad when you get it home, either because it was
already overripe or under ripe when it left the store or because it was damaged
in transit. Most fruit is sold by the pound, but there is hardly a fruit on the
market that you can eat entirely. Have you ever eaten a banana peel or an apple
core? Then there is the risk that the fruit is prepared for someone who doesn’t
eat it and finally the risk that no one happens to eat it before it goes bad.
How much of the fruit you buy actually ends up in someone’s tummy? You still
buy fruit because it is healthy and delicious.

When smart investors buy stocks, they buy lots of them. Most
mutual funds have many dozens of different stock positions in their portfolios
because they understand that some will go up and others will go down. Some may
even go to zero. In the middle some will be parked money, after decades still
worth only what was paid for them. Some stocks, however, will grow dramatically
and may after just a few years be worth 10 times or more than what was paid for
them. Smart investors buy stocks even though they know with certainty that some
of the money invested in stocks will be lost.

Venture capitalists and angel investors who invest in
startup companies know that it is so hard to predict which companies will
thrive and which will tank that they make sure to diversify their portfolios,
too. They know that when investing in early stage companies, easily a third of
the companies will flame out completely, a few will struggle on endlessly and
only a few will thrive, providing all of the return in their portfolios. Think
about that; early-stage investors give entrepreneurs knowing that there is a
very good chance they will never see a dime in return.

So, here’s the question for you? Is it reasonable for you to
expect that every dollar you give to charity will go directly to a noble
purpose and that none will ever be wasted? The frank answer is simple.
Absolutely not. Some nonprofits will use your money to create fantastic social
impacts. Some will not. How many millions of dollars for cancer research have
yielded only another compound that doesn’t work? Does that mean we shouldn’t
fund cancer research? Of course not! A cure will only come from more funding.

Sometimes I hear people say, “I will only give to this one
nonprofit because…” I have news for you. There isn’t a perfect nonprofit out
there. While some may use volunteers to allow 100% of donations to go directly
to programs, those organizations may not have the same impact as other
organizations using professional staff to do more with the same donation, even
after paying the staff.

Does this mean that you should give
indiscriminately? No, of course not. See my tips for smart giving here. But it
does mean that you should keep giving!

Charity Fraud Take Away #1: Don’t Stop Giving! Plus 3 Tips For Smart Giving

Today, the Federal Trade Commission announced a joint complaint with all 50 states and the District of Columbia against four nonprofits that were reportedly operating as anything but legitimate charities.

The four organizations named in the federal court complaint are Cancer Fund of America, Inc. (CFA), Cancer Support Services Inc. (CSS), their president, James Reynolds, Sr., and their chief financial officer and CSS’s former president, Kyle Effler; Children’s Cancer Fund of America Inc. (CCFOA) and its president and executive director, Rose Perkins; and The Breast Cancer Society Inc. (BCS) and its executive director and former president, James Reynolds II.

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It is tempting today interpret this news as suggesting that
you shouldn’t give to nonprofits because there is no way to tell the good ones
from the bad. That is simply false! Not only can you tell, it isn’t that hard
to tell.

Here are a few quick tips:

1)     
Give to organizations you know.
There are
countless well known charitable organizations that have been vetted every which
way to Sunday, that have great reputations, including Doctors Without Borders,
American Red Cross, The Nature Conservancy and many others. Giving to
organizations you recognize and can trust is a safe way to continue giving.

2)     
Go to work.
Most organizations that are
legitimate need volunteers; be one. When you give your time to an organization
you get to know more about them than you could ever learn online. If you don’t
want to volunteer for an organization, you probably shouldn’t be giving them
your money anyway. If you think you’re ready to give, you should be willing to
donate a few hours first. This is a great way to not only do your due diligence,
but also to double the impact of your money.

3)     
Check Charity Navigator.
There are a number of
online resources for vetting nonprofits. None of them is perfect, but if you
are asked to give to an organization that you haven’t heard of before, visit
charitynavigator.org and search for their name. For many organizations, you can
quickly see the Charity Navigator star rating (on a scale up to five) and key
metrics like the percent of funding spent on programs versus administration and
fundraising.

Whatever you do, don’t stop giving. Resolve to give more and
give smarter instead.

Nonprofit Entrepreneur Recognized For Impact On Poverty

At its recent fall conference, the Social Venture Network recognized four entrepreneurs with its Innovation Awards. Among the winners was Alfa Demmellash, CEO of Rising Tide Capital.

Alfa shared some of her thinking with us.

Explaining what it means to be a social entrepreneur, she said, “Being a social entrepreneur means leveraging business principles and sensibilities to create solutions that combat social issues.”

“I am passionate about the possibilities that occur when individuals see the world around them differently, and believe they can actually make a difference,” she added.

“A lot of people have great vision and ideas but are held back by fear of failure and other people’s opinions. You have to inoculate yourself against those internal and external voices. You have to arrive at a place where you think you have a limited time to make your mark on this planet,” she continued.

Hinting at her nonprofit’s unlikely focus on entrepreneurship, she concluded, “Business is at the heart of what can positively impact other prevalent crises that we are trying to address. Surprisingly very minimal effort and investment go into the creation of localized businesses within communities that have been traditionally marginalized. It is clear that this is one of the only ways to address the underlying issue of economic poverty.”

On Thursday, October 30, 2014 at 6:00 Eastern, Alfa will join us here for a live discussion about her work and her recent recognition. Tune in here then to watch the interview live.

You can download an audio podcast here or subscribe via iTunes.

More about Rising Tide Capital:

Headquartered in Jersey City, Rising Tide Capital, Inc. is a 501©(3) non-profit organization founded with the mission to empower entrepreneurs to create and grow small businesses which transform lives and communities. The organization’s vision is to build a replicable model for high-quality entrepreneurial development services that can be adopted locally in other low-income communities. Learn more at www.RisingTideCapital.org

 

Alfa’s bio:

Alfa Demmellash co-founded Rising Tide Capital in May 2004. As Chief Executive Officer, she oversees strategic growth, programmatic innovation and stakeholder engagement at Rising Tide Capital. She graduated cum laude from Harvard University with a degree in Government. Alfa is the recipient of Honorary Doctorates from St. Peter’s University and New Jersey City University and has won numerous awards for her work as a leading social entrepreneur.

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Smile Train Marks 1 Millionth Smile Repair

This post was originally produced for Forbes.

Smile Train recently celebrated its 1 millionth cleft palate surgery. The remarkable milestone was reached after the organization created a global organization by teaching local doctors to perform the surgery.

Unrepaired cleft palates are not just a cosmetic problem, but often leave children with difficulty eating, breathing and speaking. In the developing world, failure to have the birth defect corrected can have life altering consequences.

On Thursday, May 29, 2014 at 12:00 Eastern, Satish Kalra, Smile Train’s Chief Programs Officer, will join me for a live discussion about the organizations remarkable work. Tune in then to watch live.

More about Smile Train:

Smile Train is an international children’s charity with a sustainable approach to a single, solvable problem: cleft lip and palate. Millions of children in developing countries with unrepaired clefts live in shame, but more importantly, have difficulty eating, breathing and speaking. Cleft repair surgery is simple, and the transformation is immediate. Smile Train’s sustainable model provides training and funding to empower local doctors in 85+ developing countries to provide 100%-free cleft repair surgery in their communities to 340 patients each day and 127,000 each year.

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Satish Kalra with patient

Kalra’s bio:

Satish Kalra joined Smile Train in 2000 and is currently the Chief Programs Officer, overseeing all aspects of program development and implementation. Prior to taking on this position in 2011, Satish spent 11 years as Smile Train’s Regional Director for South Asia. Under his leadership, Smile Train’s programs grew to more than 160 partner hospitals in India, Bangladesh, Nepal and Sri Lanka, performing over 300,000 free cleft reconstructive surgeries on children in South Asia who would otherwise never have been able to afford them. Satish was educated as an engineer, completing undergraduate and postgraduate studies in India.

 

Hispanics In Philanthropy Launches Crowdfunding Site

The organization Hispanics in Philanthropy, known as HIP, has launched a crowdfunding site to empower everyone to be a philanthropist.

On Thursday, May 22, 2014 at 4:00 Eastern, Diana Campoamor will join me for a live interview about the launch and the other good work that HIP is doing. Tune in here then to watch the interview live.

You can download an audio podcast here or subscribe via iTunes.

More about Hispanics in Philanthropy:

HIP invests in Latino leaders and communities to build a more prosperous and vibrant America and Latin America. We have a 30-year track record of supporting social entrepreneurs – leaders who find solutions, build communities, and who are the future. By partnering with foundations, corporations, and individuals, HIP addresses the most pressing issues facing Latinos. HIP’s mission is to strengthen Latino communities by increasing resources for the Latino and Latin American civil sector; increasing Latino participation and leadership throughout the field of philanthropy; and fostering policy change to enhance equity and inclusiveness.

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Diana’s bio:

For more than 20 years, Diana Campoamor has grown a small network of funders, Hispanics in Philanthropy (HIP), from a volunteer group of advocates into a transnational philanthropic network. HIP, which now numbers more than 600 funders and 5 regional offices, has awarded over $40 million to build the capacity of Latino-led, Latino-serving nonprofits in 19 sites across the U.S. and Latin America.
During Ms. Campoamor’s tenure, HIP was recognized with the Kellogg Foundation’s National Leadership in Action Award in 2007 and received the prestigious Scrivner Award for Creative Grantmaking in 2008 for its groundbreaking Funders’ Collaborative for Strong Latino Communities. Ms. Campoamor has also been a leader in building bridges between the Latino and the African-American communities.

Ms. Campoamor has served on a number of boards, including the Council on Foundations and Independent Sector. She currently serves on the board of Futuro Media and the International Planned Parenthood Federation for the Western Hemisphere.

Trained as a journalist, Ms. Campoamor holds a B.A. from the University of Florida and a Master’s degree from the University of Miami. A native of Cuba, Ms. Campoamor now lives in the San Francisco Bay Area with her young daughter, born in China. She is happy to be surrounded by her close family: her adult son, a talented artist and musician, lives nearby with his wife, a public health expert, and their two beautiful daughters. Ms. Campoamor’s brother and sister-in-law live just next door. When not busy with philanthropy, Ms. Campoamor enjoys painting, foreign films, bicycling and meditation.

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