Friday, September 18, 2009

Catalytic Philanthropy

A mentor sent me an interesting article this week published in the Stanford Social Innovation Review. It was titled Catalytic Philanthropy and its author, Mark Kramer, argued that a new approach was needed to solve some of America’s most pressing social problems.

“For most donors,” says Kramer, “philanthropy is about deciding which nonprofits to support and how much money to give them. These donors effectively delegate to nonprofits all responsibility for devising and implementing solutions to social problems. Despite the sincere dedication and best efforts of those who work in the non profit sector, there is little reason to assume that they have the ability to solve society’s large-scale problems.”

Kramer goes on to say that there are significant limitations to the traditional approach and even venture philanthropy approach that makes individual non profits responsible for success. Too often, he argues, underfunded non profits lack the ability to learn from best practices, the clout to influence government, or the scale to achieve national impact.

Kramer advocates a new approach called Catalytic Philanthropy—a donor driven approach that uses multi-sector campaigns and collaboration to create measurable impact and motivate change. He introduces four distinct practices of Catalytic Philanthropy.

1)It requires a Philanthropist to be educated and actively engaged in the issue they are supporting in order to leverage their influence and achieve results.
2)It stimulates cross-sector collaboration and mobilizes stakeholders to build alliances and create shared solutions.
3)It uses a wide variety of available tools beyond traditional fundraising approaches.
4)It creates actionable knowledge that can motivate the actions of others.

What I like about this article is its appeal to well healed philanthropists to get out from behind the big oak desk (thanks to Chris Wignall from Catalyst Foundation for this analogy) and work with non profits in crafting approaches that not only solve immediate needs but address root causes. Of course, there is always the danger with greater donor engagement that the donor and their money take over and impose solutions, and money starved non profits must be careful about how they engage offers of financial support.

My own personal experience has shown me that embracing donors who want to be actively engaged, are passionate, and have potential to help shape a more effective approach, is not only worthwhile, but absolutely essential.

What do you think? Check out the article and share your own thoughts…
http://www.fsg-impact.org/ideas/item/catalytic_philanthropy.html

Wednesday, September 16, 2009

Small is Beautiful

One of the most thought provoking books published on economics and development is the counter cultural Small is Beautiful by EF Schumacher. In many ways Schumacher’s thoughts are as applicable today as they were when he wrote in the 1960s.

In particular, I have been impacted by his view that the primary causes of economic poverty are not material but metaphysical and that education is our greatest resource. Here are some quotes worth considering from Small is Beautiful.

•"At present, there can be little doubt that the whole of mankind is in mortal danger, not because we are short of scientific and technological know-how, but because we tend to use it destructively, without wisdom. More education can help us only if it produces more wisdom."

•"Education which fails to clarify our central convictions is mere training or indulgence. For it is our central convictions that are in disorder, and, as long as the present anti-metaphysical temper persists, the disorder will grow worse. Education, far from ranking as man’s greatest resource, will than be an agent of destruction, in the accordance with the principle of corruption optimi pessima".

•"Development does not start with goods; it starts with people and their education, organisation, and discipline. Without these three, all resources remain latent, untapped, potential".

•"The best aid to give is intellectual aid, a gift of useful knowledge. A gift of knowledge is infinitely preferable to a gift of material things. Nothing becomes “one’s own” except on the basis of some genuine effort or sacrifice. A gift of material goods can be appropriated by the recipient without effort or sacrifice; it therefore rarely becomes “his own”…This, then, should become the ever increasing preoccupation of aid programmes—to make men self reliant and independent by the generous supply of appropriate intellectual gifts".

Schumacher wrote Small is Beautiful at the dawn of African independence, when fledgling governments and their leaders looked boldly and optimistically towards a bright new future, free from the shackles of colonialism. Even then he saw the folly of imposing the solutions of the rich upon the poor and could have predicted the colossal failure of structural adjustment programs and large scale infrastructure projects, at the expense of the suitable empowerment of a largely uneducated population. The application of an approach equivalent to an African Marshall Plan and the moral bankruptcy of Africa’s elite kleptocracy have made Africa the only continent in an arguably worse position today than it was thirty years ago, despite trillions of dollars of investment.

In many ways, Schumacher’s ideas have even more relevance today, than during the time they were written. He is well worth a read.

Learning About the Past Provides Inspiration For the Future

In a country where the average life expectancy is just 50 years old and at least 40% of the population are under age 15, it is a rare occurrence to sit down for lunch with an Octogenarian. So I thoroughly enjoyed the visit we had last week with a Rwandan couple in their eighties who have lived their whole lives walking up and down Rwanda’s abundant hillsides.

Baba Nicholas climbing a hill

At 88 and 82, Baba and Mama Nicholas (It is simpler to call them by the name of their son since Kinyarwanda names are hard to pronounce) are still full of life, physically active, and mentally sharp. During a heavy lunch of cassava, matoke, beans, and chick peas they recounted stories from the days when missionaries first came to their area and the locals were astounded when they toppled cows without even touching them (they had used guns to shoot them). I cannot believe how much they have seen in their lifetime.