Bullies Within Charities?

The tragedy of Rehtaeh Parsons has me thinking about bullying. The sad fact is that bullying is not just done by kids, nor only on-line or at school. It is also done by adults at the workplace. What’s particularly interesting to me is that bullying happens even in workplaces where you might not expect it – for example within charitable and philanthropic organizations.

An interesting article in the latest issue of Advancing Philanthropy makes some interesting points on this theme of workplace bullying, and how it differs from the private sector to the charitable world.

1. Bullying not only happens in the philanthropic world, but the impact can actually be more intense: bullying runs counter to the expectation / assumption that people in the sector want to “help others” so when it happens it magnifies the negative / unexpected impact.
2. Since staff at the charity are there to help others and make a difference in the world, they may be more willing to endure or forgive the bullying, rationalizing that it is an expression of the passion the bully has for the cause and a desire to drive it to success at any cost.
3. Many charities are small, tight-knit organizations driven by Mission and collaboration, so standing up to a bully may be seen as risking the cohesion of the team and hurting the effectiveness of the team. Charity staff in particular don’t want to hurt impact.

Finally, since bullies are most often higher up on the organization than the victim, there may be relationships with Board members or donors at stake if it’s a senior staff member who is the bully and they get “called out”. This will make charity organization staff all the less likely to complain or raise the issue.

So not only is the charitable world just as much at risk of bullies, but the impact may even be worse than in the for-profit sector. My commitment, as a Board member and as someone who supports the charitable world, is to be more attentive to this risk and make sure that staff and volunteers I work with know where I stand on the issue – and that I’ll stand with them against any bullying.

Top 3 Charity Trends in 2013

Here are the top three trends to watch for in the charitable world in 2013.

1. Fundraising will see a renewed focus on major gifts and individual donations in 2013.

The last few years have seen (and even demanded that) organizations seek new and innovative funding models.  The phrase "revenue diversification" has become overused as charities have sought more corporate funding, initiated social enterprise and enhanced their on-line campaigns, sometimes all at the same time. But the fact remains that the majority of charities still raise the majority of their funds through individual gifts, including major gifts.  2013 started off with a great example: the biggest-ever private gift for cancer research in Canadian history. My prediction is that we'll see a "return to basics" as charities prune back some the less successful initiatives of the last few years.

2. Fundraising will see significant innovation in terms of leveraging technology and on-line giving in 2013.

I remember the first time I received an e-mail from a friend that had a link to an individualized site where I could donate to support them in climbing the CN Tower. At the time it seems quite remarkable... But that was many years ago. My own Movember campaign raised a bit less this year than last, and others I know had the same experience. Yet the web and on-line giving is nothing if not flexible and innovative. My first prediction notwithstanding, I believe that we'll see memorable and innovative new ways to leverage technology in support of philanthropic efforts in 2013.

3. There will be even more new faces leading charities in 2013.

Partly due to demographics, partly due to the ever-increasing challenges facing charities, and partly due to new and more complex expectations of leaders of charities (ONCA, CNCA, AODA, etc.), I have the sense that new leadership will be a theme this year. This isn't a new trend, just one that I believe will accelerate, and a quick review of the Charity Village and LinkedIn job postings would seem to support this belief. My prediction is that we'll see even more postings and a number of long-standing roles change in 2013.

I’ll keep you updated on examples and stories behind these trends all year, and check back in 12 months to let you know how accurate I was.

Top 3 Charity Trends in 2012 Reviewed

This time last year I predicted the Top 3 Charity Trends in 2012, and it's time to see how I fared.

1. My first prediction was that many small and medium sized charities would disappear in 2012.

Well, sadly I was was right, but I also predicted that others would use this "crunch" to innovate and reinvent themselves, and it turns out that was true too. For example, Touchstone Youth Centre closed its doors in November due to financial challenges. After over 20 years and providing outreach and shelter for thousands of young people, they were gone.  However, the Learning Disabilities Association of Canada (LDAC) took a different tack, and became a national association and plans to fulfill its mandate via a web-based presence. A final example is that of the Ontario Mental Health Foundation. They're still around, but due to a decrease in provincial funding and their own reduced return on investments, they have temporarily suspended a number of research fellowships. Net result? Fewer charities, reduced impact, but less spending. Without any way of assessing impact and value and which charity closes and which survives beforehand, there's no way of knowing whether the "right" charities closed or not. Or whether the right programs / initiatives died on the vine or not either.

2. My second prediction was that big charities would get bigger in 2012.

Many larger organizations celebrated their best year ever in 2012 in terms of revenue. However, in this new Darwinian world of charitable survival it's NOT really about who is most fit (e.g. who has the most impact and who is best equipped to deliver on their Mission) but rather who has the deepest pockets, the best fundraising campaigns, and the best top-of-mind awareness. So in the case of big charities the obverse from the small charities that closed is true: of those that grew, who really had the best impact and delivered the best value per donated dollar?

3. My final prediction for 2012 was that charities would increasingly think and in some ways act more like for-profit businesses.

This is a tougher result to review. Certainly I heard a lot at AFP Congress and other events about Social Entrepreneurs and Social Enterprises, but maybe I missed the breakthroughs we all keep expecting.  MaRS and others talked about Social Impact Bonds, but again even with Governments starting to get involved my sense is only modest change has occurred.  I can vouch for charities becoming far more savvy about their back-of-house operations, looking to squeeze already lean budgets to find a few more dollars. For example, the number of calls I get about how charities can partner to save money on rent (hubs, co-locations, etc.) has gone up dramatically. And the number of organizations that are looking to buy their own office and program spaces and grown as well.

Stay tuned for the 2013 predictions shortly!

3 Key Considerations for Last Minute Donors

A last-minute post for last-minute donors.  Whether you're seeking the tax break and the receipt for the year that is ending, or just trying to finish 2012 on a positive note, it's not too late to give. It's also not too late to give wisely.  Here are three key considerations before you make your year end gift.

1. PASSION
   Is this a cause you care passionately about? Has this organization touched your life or helped others you love? Is this a cause you truly believe needs your help?  Sometimes we're swayed by a powerful image, or a great charity marketing campaign, but that impulsive decision may not be the one that will bring you the most happiness. So while making a gift is better than none at all, consider if there isn't a better "fit" for your generousity.
2. RESEARCH
   What other organizations focus on the area(s) you're most passionate about? Is there a better fit, or more direct way, for your gift to work? Websites like Charity Navigator (focused on the USA) or Charity Intelligence (Canadian but with a much smaller database) can be a big help on this front. Even a quick review of these sites may provide you with new insights about how best to direct your charity giving.
3. IMPACT
   Most charities are very efficient with your donated money, but does your intended target really need your gift? How many years of operating funds does the organization have in reserve? More than just cost per dollar raised (e.g. cost of fundraising), it's important to know if you're getting real impact for every dollar donated. For example, if your charity helps students, has their cost per student been going up or going down over the last few years? And if the answer is up, have they been offering new and enhanced programs... Or are their costs going up at a rate faster than inflation? 

My point is that, as I've said before, giving from your heart and from your head is important. Even if you're making a last minute donation, there is still time to do it right! 

5 Reasons Why Charity Mergers Work

Based on the for-profit track record, charities should stay away from mergers. Given that many academic studies find that a large proportion of for-profit mergers actually decrease profits and efficiency why would charitable organizations risk this path?

As discussed previously merging charities has risks, but I'm increasingly of the opinion that the benefits outweigh the challenges. Here are 5 key reasons why merging can and does make sense.

1. Like-minded organizations that come together to focus on a single issue or cause can accomplish far more than each working alone. What's been called "collective impact" is all the buzz right now in the charitable world simply because it works: just ask Advancing Philanthropy!
2. My contention is that there are simply too many charities - think about the number of different organizations that have overlapping Missions or seek to duplicate the work already being done by another group.  With 161,000 charities and non-profits in Canada alone surely there's room for fewer to do better work with reduced confusion and re-work.
3. In the spirit of reduced confusion, clearly mergers would allow precious donor dollars to be more accurately and effectively applied.  And the obverse is that fewer charities would also allow donor dollars to support more impact and less overhead: two charities that merge into one only need one photocopier, one reception area, and one kitchen microwave, not two of each.  Also, with fewer competing messages for donations it would be easier (and more cost effective) for vital charitable messages to break through and be heard.
4. The charitable world is all about passion, but like money there are only so many volunteers and so many donated hours to go around.  A merged organization would (ideally) draw on the strengths that existed in the originals, ensuring that 1+1=3.
5. The best reason to pursue mergers, collaboration and collective impact in the charitable world is that it's very hard to do.  Albeit a simplification, in the for profit world the firm with enough money can buy out the one that's smaller.  In the charitable world that doesn't work (donor backlash, government regulations, volunteer boards, etc.), and organizations that seek to "merge" need to find common ground and shared passion.  The same volunteers and varied stakeholders that can make decision-making within charities so challenging present natural barriers to ill-considered collaborations.  So the fact that it takes so much work and trust to merge mean that it is likely the outcomes will be better in the long run.  Remember, money can't buy you love...

I'm personally aware of several great examples where charity mergers, collaboration and collective impact are already working well, and expect we'll see more examples in this tough economy. It appears that 1+1 does indeed equal 3.

3 Ways Little Cuts Hurt Charities Most

My last post talked about charities closing their doors not due to a lack of need for their services or offering poor services, but simply due to a lack of funds.  It's also true that seemingly small changes, minor increases in costs, can have a disproportionate impact on charities.  Here are three key ways that "little cuts" can be painful in ways that are different from for profit organizations.

1. Increases in costs, say for example a new fee for garbage pick up, are hard for both charities and for- profit firms to absorb. However, while firms can "pass on" these increased costs to clients, charities have no such option. So for example when the City of Toronto imposes a new garbage collection fee on over 1,000 charities, there's no customer to pay more to offset this cost increase, just a decrease in services to those who can least afford it.
2. Charities have proportionately smaller voice for their size than their for-profit peers (#9 on my Top 10 list of differences). From Boards of Trade to business leaders that have worked within government (and vice-versa), businesses are simply better connected to government. Also, businesses are seen as providing jobs / tax revenue to all levels of government as opposed to perceived as begging from / costing money from all levels of government.  Not the case you say?  Well, in the example of the garbage fee the charities were denied the ability to protest: my bet is that business leaders wouldn't have been treated this way.
3. Another way cuts and increased costs hurt charities most is more philosophical in nature.  By definition charities help those most in need.  So when their revenue is reduced those who suffer from the reduction in services are those who are most at risk. And where charities are providing preventative and proactive supports, keeping people from "costing the system" even more down the road, these extra costs (touted at cost savings) can actually cost the rest of us a lot more in the future.

No doubt that new costs to any organization can be difficult to manage, but the charity and non-profit world is often hurt the most when this happens.

When Charities Fail

Over the last many months I've watched and listened with dismay as many charities have struggled in this economic and political climate.  This isn't a big surprise and clearly many people (including me) forecasted a tough year in 2012. However, like a death in the family, even when you know it's coming it's not easy.

Such is the case with Touchstone Youth Centre here in Toronto. This organization wasn't on my radar as a charity in trouble, but late last month this is what was shared with key partners and stakeholders:

Dear Sir or Madam,

It is with great regret we must inform you that Touchstone Youth Centre will be ending its service as of November 30th, 2012. We are closing due to ongoing financial challenges.

Touchstone Youth Centre has been providing services to youth between the ages of 16 and 24 years old since 1991. We have managed to provide emergency shelter services to over 400 youth each year while providing outreach services to more than 80 youth each month. Unfortunately, as a result of our current financial state, the Board of Directors made the difficult decision of discontinuing service.

The City is seeking a replacement operator for the facility to be in place as soon as possible. It is not possible to have one in place by November 30th. The City and Touchstone Youth Centre will work co-operatively to find safe places for existing clients. Admissions to the shelter will be suspended November 1st to facilitate this process. As soon as the City can choose an appropriate operator, a re-opening date will be announced. This is expected to be late January.

We thank you for your hard work, dedication and commitment to Touchstone Youth Centre. Our partnership with you made us able to make a difference in the lives of homeless youth.

The next few weeks will be extremely difficult for all stakeholders including staff and clients. However, Touchstone Youth Centre will provide quality service up to the last day of service. Any support you can provide us to accomplish this goal would be greatly appreciated. Thank you for all your work and the support you provided us over the past 21 years!

Sincerely,
Susette Clunis
Executive Director


In brief, a vital organization helping homeless youth is effectively going out of business.  I don't know the details or causes behind their "current financial state", but my main concern relates to the similarities and the differences between charities and for-profit organizations.  When a for-profit organization fails and closes its doors, the employees suffer, and in general terms their customers / clients are inconvenienced.  Sort of like the old riddle with a pig and a chicken discussing a bacon and egg breakfast, with a for-profit model the clients are involved but the employees are committed.

Sadly, in the case of charities that fail - for whatever reason - the impact is greater and broader. The employees suffer, but their customers / clients suffer even moreso.  And in most cases these clients are the ones who can least afford the loss.  I appreciate this is an simplification (and for example ignores suppliers to for-profits who suffer as well), but the simple fact is this: a safe and supportive space for homeless youth is discontinuing its services.  By any measure that's not good news.

And it begs the question about how to respond.  My response is to ensure that my donations go where they're needed most, that I vote for officials who will seek and support innovative, effective and efficient ways to deliver services to those who need it most, and that I speak out so that others know what's happening in a vital sector that touches us all.