Frayed Fabric, Rain and Umbrellas
A Letter to the Philanthropic Community
Regarding a Response to COVID 19
Shelter for the homeless, advocacy for the incarcerated, a youth choral group, community economic development efforts for small businesses, meals to seniors — just to name a few as the list is endless — are strands of the nonprofit sector fiber. And this beautiful, powerful network in the US then weaves together the fabrics of our society through cultural events, social safety nets and as an umbrella for a panoply of community and global initiatives. The sector is estimated as 10% of our GDP and 10% of the labor force. Given its history of successes in our society, its committed volunteers and employees, its intangible aspiration for a better world — it is 100% a part of so many positive connections and community efforts that are too diverse and numerous to quantify.
Who We Are and our Perspective
As signatories to this letter to the philanthropic community and other major donors, we are a collection of transition consultants and interim leaders for an array of organizations as noted in our signature below, which lists some of our past client mission areas. We are experienced executive directors, consultants, board members and have served a breadth of organizations in a way in which we intimately know the challenges of most nonprofit organizations, who are in turn, deeply embedded in communities.
What We See
COVID 19 is here and now, evolving and hard to assess. But right now, what is obviously not hard to imagine are the potential health risks to vulnerable populations. For example, seniors, the unhoused, the incarcerated — how do we best serve our community members? We are in the midst of addressing this, and health professionals/other experts should and will hopefully lead the way. And as science prevails, they will ultimately help us heal, recover. But beyond health impacts, what is also troubling is that going forward, the economic risk for small businesses, local governments, regions and public funding is becoming ever more evident. So ultimately, as has happened in the past during other national emergencies — the nonprofit community will do what it does best — step up and serve — without question.
And then as invariably happens as we long time leaders in the sector know, the lagged ripple effect will have significant economic impact for nonprofit organizations. We are an already ragged quilt of services stretched to tearing — given years of public disinvestment with a blind eye and wishful thinking that the social nets, community fabric building work would just magically hold together. Even the philanthropic community will move on, wanting to innovate, be a leading edge investor in “disruption”, piloting “progress”, riding the wave of a yet a new catchphrase.
Certainly as a region, a nation — we are facing a health challenge and only wrapping our hearts and mind around the potential ripple effects beyond the impact on vulnerable individuals. The foundation world, which some have referenced as “the philanthropic industrial complex” given its vast capital, needs to seize the moment, be ahead of the curve and understand the financial and then subsequent emotional, human resource toll this will take on the existing infrastructure of the sector. Beyond continuing to fray at the edges, nets will break like never before. So as this event unfolds, we ask all those with large funding umbrellas to pull them out and shield others, perhaps even at the risk of impacting their own institutional financial health goals. Unfortunately, community based nonprofits have done, do this, will do it — all the time. Join us.
Potential Solutions Going Forward?
Adamantly, we are asking all foundations to invest in the infrastructure of the sector — here and now — knowing full well that the cancelling of fundraising events, damaged local economies and shrinking public revenue tax flows are the just edges of the economic potholes. Certainly, let the public sector do what it should and can only do, as first responders and for the broader economy. But given the large corpus of foundation resources, private and corporate — and the reality that the grant distribution expectation is only a minimum, that your charitable purpose is bigger than your staff size, and even your viability as a foundation long term — step up like never before. Perhaps, in an exploitation, iteration of the title Edgar Villanueva offered in his recent trenchant book, “decolonize your wealth”. The rainy day, it is here, so please do widely share cover, as you have some pretty large umbrellas.
So here is a list of possible options to support the sector, offered by us as past executive directors, current interim leaders, transition and management consultants:
People Solutions
● Fund sick leave as General Operating support for all of your current grant recipients. Trust your organizations. Most of their employees are only a paycheck away from being a social services client.
● Support leaders with as needed interim support and project based support. Most management teams are strapped as it is. Enlist, fund and support groups and individuals that can provide as needed leadership resources.
Policy Solutions
● Support and advocate efforts that any public contracts with nonprofits include wages comparable to public sector peers. The public sector will fund efforts, asking nonprofits to respond to RFPs. Over the years, we all have seen and know the pernicious strategy of privatizing public obligations (health, education, youth and senior services), lowering labor costs, and expecting nonprofit employees to pay their bills with their altruism. It is unacceptable, unfair, and the philanthropic community should look itself in the mirror as it looks at its own 990 tax forms, and those of most nonprofits — comparing compensation levels and speak up, supplement public contracts that unfairly undercompensate the organizations and the individuals actually doing the work.
Funding Solutions
● Step up now, and step up big. In short, follow Villanueva’s advice on pages 151–181 of his book regarding new models for collectively and quickly distributing funds. Here is a place to “innovate” — reduce the friction for distribution of grant funds, focus on general operating, and all funders should commit to standardized reporting formats to reduce the grinding insanity of some grant reporting, including public contracts. Dip into your corpus and give more than 5%.
Next Steps
Finally, if foundations, major donors, the philanthropic community are hopefully discussing these issues, ensure that you are connecting with those doing the work in communities. Many of us have invariably seen top down solutions or quick check ins with highly visible efforts that do not fully reflect the community. Many of us serve small to medium sized organizations whose greatest strength is being close to the community, with the consequent weakness being that they do not have time to self-promote, build brand, be the shiniest new social innovator on the block, that so often is the most alleged attractive, but in reality ersatz option. In short, be humble, courageous, committed for the long term and communicate with the community. Many of us are standing in the rain — holding onto tattered shreds.
Interim Executive Directors/Consultants Signed On:
Philip Arca, past clients have focused on homelessness, foster youth, advocacy for the incarcerated, employment law, arts and science center, LGBTQ+ issues.
Lina Sheth, past client areas include homelessness, health for the underserved, worker rights, mental health for the underserved, LGBTQ rights, HIV/AIDS, girl’s rights, and housing for the underserved.
Marcia Hodges, past clients include youth, development disabilities, environment, health & wellness, housing, social justice education.
Karen Deshayes, past clients include consulting to education, social and legal services, animal protection, welfare and services, supportive housing.
John E McCue, past clients include services to folks with disabilities, stable and affordable housing, girls’ education, community centers, and art organizations.
Darci Smith, past clients include youth development and early childhood education; professional associations; faith-based communities.
Carrie Blanding, past client areas include environmental policy/climate change, performing arts, senior services, homelessness.
